Spokane

Idaho regulators accepted a long-range natural gas supply plan for Spokane, WA-based Avista Utilities, but asked the company to report back on how the state of Washington’s rejection of a gas purchase mechanism could impact the utility’s 60,000 gas customers in northern Idaho. At issue is a “benchmark mechanism” established by Avista for gas purchases for its service to three states — Oregon, Washington and Idaho.

Idaho regulators Monday accepted a long-range natural gas supply plan for Spokane, WA-based Avista Utilities, but asked the company to report back on how the state of Washington’s rejection of a gas purchase mechanism could impact the utility’s 60,000 gas customers in northern Idaho. At issue is a “benchmark mechanism” established by Avista for gas purchases for its service to three states — Oregon, Washington and Idaho.

Spokane-based Avista Corp. said Wednesday it sold its small South Lake Tahoe natural gas distribution business to Las Vegas-based Southwest Gas Corp. for $15 million. The sale price is subject to “closing adjustments,” and the closing depends on regulatory approvals, including the California Public Utilities Commission.

The Idaho Public Utilities Commission (PUC) will accept comments through June 25 on Spokane, WA-based Avista Utilities’ long-range plan for meeting the needs of its 60,000 gas customers in northern Idaho through a portfolio of short- and long-term contracts, with firm and interruptible transportation for the supplies.

Following up on its long-standing protest of a FERC trial unit’s settlement with Spokane, WA-based Avista Corp. over alleged trading violations, the California Attorney General’s Office came out swinging late Wednesday in response to the federal regulators ratifying the deal and concluding that the holding company’s utility and trading units had not manipulated wholesale energy markets during the western crisis of 2000-2001.

Major rate requests from Spokane, WA-based Avista Corp.’s natural gas/electric utility operations in the state and Idaho Power Co. are scheduled to kick off this month for the Idaho Public Utilities Commission in the mid part of the month. In the meantime, the state regulators last Thursday denied Avista’s request for a March 10 effective date for its proposed hikes of 24.1% for power and 9.2% for natural gas.

With more than $200 million in added utility infrastructure investment in the state, Spokane, WA-based Avista Corp. filed with Idaho regulators Friday for a combined $23.7 million in rate increases to cover its electricity and natural gas utility operations serving 109,000 and 62,000 power and gas customers respectively.

Spokane, WA-based Avista Corp. Wednesday reported fourth quarter earnings of $15.1 million, or 31 cents/share, compared with $10.9 million, or 23 cents/share, for the same period in 2002, noting the 39% increase in net income came in a year in which hydro-electric supplies were only 85% of normal and wholesale natural gas prices continued to be volatile.

With a sobering re-emphasis of its basic energy and energy-related businesses, Spokane, WA-based Avista Corp. announced last week that two of its longtime executives were retiring, and rather than filling the positions the company will collapse their duties into expanded roles for two existing executives at the company. It is part of a “realignment” of its overall management structure that stresses “back-to-basics,” a company spokesperson said.