Idaho regulators announced Friday they were suspending a requested effective date for Spokane, WA-based Avista Utilities’ proposed natural gas and electricity rate increases for its Idaho customers. The Idaho Public Utilities Commission (PUC) set May 9 as the deadline for intervenors filing in the case in which Avista is seeking overall increases of 15.4-16.5% for electricity and no more than 3.3% for gas.

The PUC, which calculates the request at 15.8% (electric) and 5.8% (gas), has scheduled a prehearing conference on the case for May 14 to outline who the intervening parties are, the issues to be covered and the schedule for filing testimony and hearings. Avista serves 120,000 electric customers and 71,700 natural gas customers in northern Idaho.

In seeking the increases, Avista has pointed to its higher costs for (a) power supply, (b) capital investment in upgrading aging infrastructure, (c) hydroelectric relicensing and (d) installation of advanced metering systems.

In its April 4 announcement of the Idaho filing, Avista said its request would increase residential bills 15.9% (electric) and 6.5% (gas), resulting in average monthly increases of more than $10 (electric) and nearly $5 (gas).

What Avista called “significant increases in fuel and purchased power” are the primary drivers for the higher electric rates, the utility said. Since the fall of 2004 power system expenses in Idaho are up $94.3 million, Avista said. A primary driver for the higher gas costs is the utility’s share of the ongoing upgrading of Jackson Prairie storage field in southwest Washington state.

“Part of the Idaho PUC’s job will be to determine if the added investment and infrastructure upgrade was needed and if the company was prudent in its financial decision-making,” a PUC spokesperson said. PUC staff, including auditors, engineers and attorneys, have begun their review and investigation, which the regulatory commission estimates will take at least six months, including public workshops and hearings.

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