{"id":727849,"date":"2023-02-01T16:25:14","date_gmt":"2023-02-01T21:25:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/avista-files-multiyear-electric-and-natural-gas-rate-plan-in-idaho\/"},"modified":"2023-02-01T16:25:14","modified_gmt":"2023-02-01T21:25:14","slug":"avista-files-multiyear-electric-and-natural-gas-rate-plan-in-idaho","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/avista-files-multiyear-electric-and-natural-gas-rate-plan-in-idaho\/","title":{"rendered":"Avista files multiyear electric and natural gas rate plan in Idaho"},"content":{"rendered":"

\nCompany seeks to recover costs for ongoing infrastructure investments and increased operating costs
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SPOKANE, Wash., Feb. 01, 2023 (GLOBE NEWSWIRE) — Today, Avista (NYSE: AVA)<\/strong> has filed a multiyear rate plan with the Idaho Public Utilities Commission that would allow the Company to recover costs for fixed expenses and ongoing investments to infrastructure, technology and more. If approved, new rates would be effective in Sept. 2023 and Sept. 2024.<\/p>\n

\u201cAs an energy provider, we understand we play a vital role in the daily lives of those we serve, and we take this responsibility seriously,\u201d said Avista president and CEO Dennis Vermillion. \u201cAs costs for goods and services have gone up across the board, we recognize how challenging increases in energy prices can be for our customers. We work hard to make decisions that will help keep these costs affordable, because we know this matters to all of our customers.\u201d<\/p>\n

\u201cPart of the responsibility of providing an essential service is to make sure customers have energy when they need it. This means that we must continue to make important and necessary investments to the infrastructure that serves our customers such as replacing wood distribution poles and aging natural gas pipelines, making our system more resilient to the threat of wildfires and storms, upgrading customer-facing technology and substations, and much more. We\u2019ve made these investments on behalf of our customers because it\u2019s the right thing to do.<\/p>\n

\u201cThere are also new pressures causing costs to go up for all companies and industries. Supply chain constraints, inflation and increasing interest rates are contributing to a challenging operating environment, making it more difficult to control costs. In just the last year, we\u2019ve seen the costs of basic utility equipment such as transformers and electric poles increase in the range of 15-54%. Avista is not unique in this regard.<\/p>\n

\u201cWe continue to aggressively manage costs to achieve the appropriate balance of providing safe and reliable service at cost-effective rates, along with a high level of customer satisfaction, while preserving the financial health of the utility. We are focused on long-term sustainable savings to continuously improve our service to customers and manage costs into the future.<\/p>\n

\u201cThe ongoing effort to align the rates customers pay with Avista\u2019s costs to serve is one of the main reasons we file general rate requests. It\u2019s important for the health of the company and an essential part of providing safe and reliable energy.\u201d Vermillion said.<\/p>\n

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\n Avista\u2019s Requests<\/u>
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The proposal is a two-year rate plan, with new rates taking effect in Sept. 2023 and Sept. 2024. This plan would create a stay out period where Avista would not file a new general rate case for new rates to be effective prior to Sept. 2024. This would provide customers with some predictability in their expected future energy prices.<\/p>\n

If approved, the electric general rate request is designed to increase annual base revenues by $37.5 million (or 14.7% on a billed basis) effective in Sept. 1, 2023, and $13.2 million (or 4.5% on a billed basis) effective in Sept. 1, 2024.<\/p>\n

If approved, the natural gas general rate request is designed to increase annual revenues by $2.8 million (or 2.7% on a billed basis) effective in Sept. 1, 2023, and $0.1 million (or 0.1% on a billed basis) effective in Sept. 1, 2024.<\/p>\n

The electric and natural gas requests are based on a proposed rate of return of 7.59%, with a common equity ratio of 50%, and a 10.25% return on equity.<\/p>\n

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\n Infrastructure Investments
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\n <\/strong>Avista needs to continue to replace infrastructure that has reached the end of its useful life, as well as respond to the need for reliability and technology investments required to build the integrated energy services grid that will take us into the future. Among the projects included in today\u2019s filing are:<\/p>\n