The Oregon Public Utilities Commission (PUC) Monday approved a small general rate increase for Spokane, WA-based Avista Utilities’ natural gas operations, but substantial decreases in wholesale gas costs will mean the net effect for residential customers is an average decrease in monthly bills of 13%, or about $10. All the rate changes resulting in the net decrease were effective last Sunday.

Last July Avista filed its request with the PUC, seeking to raise its rates by 11.6% to pay for major capital projects including pipeline reinforcement projects throughout Oregon. The three-member commission, after examining the request, reduced it to a 7.1% increase, according to a PUC spokesperson.

“While this decision for the general rate case will increase rates, customers will still see their bills go down because it will be offset by a 20% rate decrease that accounts for recent drops in prices for natural gas, that also took effect Nov. 1 [Sunday],” said Commission Chairman Lee Beyer.

The average residential customer using 52 therms will see its bill drop by $10 or 13%, said the spokesperson, adding that the latest PUC action also looked at Avista’s rate coverage for taxes covered under a new Oregon law.

“The decision also settles a true-up for utility taxes,” the spokesperson said. Avista customers will get a $2.4 million refund on their November and December bills. Senate Bill 408 is designed to ensure that the amount collected for taxes in customer utility rates matches the amount paid by utilities to taxing authorities. This is the third time since 1991 that Avista has asked the regulatory commission to adjust rates for a general rate request.

Avista Utilities serves approximately 95,000 customers in LaGrande, Roseburg, Medford and Klamath Falls, OR.

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