Avista Corp. is looking to raise electrical and natural gas rates over the next two years, filing a request with the Washington Utilities and Transportation Commission.
If approved, the two-year rate plan would take effect in April of 2020 and 2021. According to Avista, the request was made in an effort to recover costs related to investments in infrastructure, system maintenance and technology.
A typical household would see its electric bill increase by 9.8 %, adding nearly $8 per monthly bill from $81.21 to $89.14. The rates would climb another 3.9 % in 2021, adding an average of $3.46 to each bill.
For natural gas, a typical household would see a similar percentage jump in monthly bills around 9.9%, adding $4.60 a month to increase it from $46.40 to $51. A $2.55 increase, or 5%, would be tacked on in 2021.
“We’re making significant investments in our infrastructure and systems every year to maintain, upgrade and ensure the safety, reliability and resiliency of the equipment and facilities that serve our customers every day,” Avista President Dennis Vermillion said. “This includes efforts like inspecting and replacing thousands of power poles each year, replacement of natural gas pipe, upgrading transmission lines, enhancing cybersecurity and upgrading hydroelectric turbines and generators in our century-old Little Falls dam. We’re also investing in digital tools and technology options that make it easier for our customers to interact and do business with us. All of these investments allow us to meet our customers’ energy needs, maintain the reliable and efficient service they expect and keep the electric and natural gas systems safe.”
The plan would create a stay-out period where Avista wouldn’t file a new general rate case for new rates to be effective prior to April of 2022, providing customers with some predictability in expected energy prices. Avista says that would continue to change the cycle of base rate adjustments from winter to spring at the end of winter heating season, helping customers not experience a base rate increase in the middle of winter as they might have in the past.
“While we make these investments for the benefit of our customers, we recognize that rate increases can be a hardship. As we make decisions about how and where to invest across the company, our customers are our primary focus. We take our responsibility to provide safe, reliable energy at an affordable price very seriously, and we work hard to manage our costs and identify ways to best serve our customers that contribute to keeping energy prices low,” Vermillion said.
