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Commission Trims Request to Raise Natural Gas Rates for Avista Utilities

 

 

January 21, 2014 (2014-03) (UG 246)
 
Contacts: Susan Ackerman, Chair, 503 378-6611, Stephen Bloom, Commissioner, 503 378-6611, John Savage, Commissioner, 503 378-6611, Bob Valdez, Public Affairs Specialist, 503 378-8962
 
Salem, OR. The Oregon Public Utility Commission issued its decision today to adjust rates paid by customers of Avista Utilities in southern Oregon.
 
Following a nearly six month review, the Commission approved a settlement agreed to between customer groups, PUC staff, and the utility to raise rates by $5.2 million a year, or 5.94 percent overall.  That is $4.2 million, or 3.9 percent, less than Avista Utilities initially asked the Commission to increase rates. 
 
Customers will see the new customer rates phased in over two stages beginning in February 2014.
 
Effective Feb. 1, 2014, Avista will receive an increase in rates of 4.39 percent, or $3.83 million, overall. A typical residential customer using an average of 48 therms per month will see a $2.65 per month increase, or 4.9 percent, for a revised monthly bill of $57.00.
 
The second phase, effective Nov. 1, 2014, provides for an increase of 1.55 percent, or $1.35 million, overall. For a residential customer using an average of 48 therms per month there will be an increase of $0.92 per month, or 1.6 percent, for a revised monthly bill of $57.92.   
 
Reasons rates are going up include additional capital costs such as replacing the utility’s Customer Information System and ongoing expenses for the Aldyl Pipe Replacement Program, in which Avista Utilities is systematically replacing portions of the pipeline.
 
Avista serves approximately 95,940 customers in Roseburg, Grants Pass, Medford, Klamath Falls, and LaGrande Oregon.
 
·          New Return on Capital of 7.47 percent
·          New Return on Equity of 9.65 percent
 
 
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