Spokane, WA-based Avista Utilities faces changes for two rate credits in its purchased gas and power mechanisms that could result in slight increases for fuel purchasing costs, effective Nov. 1. A purchased gas cost adjustment and a power credit with Bonneville Power Administration (BPA) emerged following rate hikes approved by the Idaho Public Utilities Commission, which allows retail power charges to increase by 9.25% over three years and natural gas retail charges to rise 2.6% over two years. An initial power rate increase of 3.59% and a natural gas hike of 1.9% went into effect Oct. 1. Avista is proposing an average 4.3% increase for its Idaho gas customers, an average of about $2.75/month for a typical residential customer. The electric adjustment is due to BPA reducing the size of the federal power credit.
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CenterPoint Seeks $50M for Fixed Costs in AR
Faced with rising distribution costs and declining throughput on its gas distribution system in Arkansas, CenterPoint Energy Inc. has proposed two alternative mechanisms to state regulators that would allow it to recover more of its fixed costs through fixed charges to customers, partially decoupling revenue from volumetric charges.
Redesigned Gas Rate Plans Suggested to Align Stakeholder Interests
Maintaining the status quo in natural gas utility rate design may be costly to consumers, utilities and society, but innovative rate designs and true-up mechanisms could align the interests of all stakeholders, according to a white paper by the American Gas Foundation (AGF).
NGI The Weekly Gas Market Report
Hedging: Basis Troubles Producers; Regulators Constrain LDCs, Says Marketing Exec.
While price volatility challenges everyone in the gas industry, unpredictable basis differentials and a dearth of basis hedging mechanisms have become a thorn in the side of producers especially.