Avista Utilities increased rates for its gas and electricity customers in Idaho Wednesday, reflecting earlier decisions by the Idaho Public Utilities Commission (PUC). Retail gas utility rates increased by $3.9 million, and electric retail services were boosted $23.2 million. The PUC approved a settlement among the utility, PUC staff and others that increases electric and gas rates an average of 11.98% and 4.7%, respectively. This compares to Avista’s original filing seeking increases of 16.7% and 5.8% for electric and gas retail customers, respectively. Avista serves 72,000 gas and 120,000 electric customers in northern Idaho. “This is the first Avista general rate case since 2004; however, it comes on top of [the utility’s] annual power cost adjustment (PCA) and purchased gas cost adjustment (PGA) rate changes, both of which are adjusted annually Oct. 1,” said the PUC, which noted the PCA and PGA hikes amount to increases of $3.43 and $2.96/month, respectively. “When Avista originally filed its gas cost surcharge last Aug. 18 it requested a 14.2% increase, but declining wholesale gas prices since then and the company’s ability to purchase additional gas for the coming year resulted in the company adjusting its filing on Sept. 15 down to 4%.” The PUC approved new authorized profit levels for the utility — an 8.45% rate of return and a 10.2% return on equity.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.