Avista Announces Settlement in Oregon Natural Gas Rate Request

Avista AVA and all other parties involved in the company's natural gas general rate case filing have reached a settlement agreement that, if approved by the Public Utility Commission of Oregon, would result in an overall increase in billed rates of 3.1 percent. If the settlement agreement is approved, a residential customer using an average of 46 therms per month could expect to see an increase of about $1.31 per month, or 2.3 percent, for a revised monthly bill of approximately $59.45, effective March 15. Included in the rate change is an increase in the monthly basic charge from $6.50 to $7.00. On June 1, an increase of about $0.63 per month, or 1.1 percent, would become effective for a revised monthly bill of about $60.08. Overall rate increases for commercial and industrial customers vary between 0.6 percent and 3.3 percent, depending on the rate schedule. The settlement agreement sets Avista's rate of return on rate base at 8.0 percent, with a common equity ratio of 50 percent and a 10.10 percent return on equity. Revenues are expected to increase by approximately $2.0 million effective March 15 and by approximately $1.0 million effective June 1 for an overall $2.975 million to recover expenses and capital investments made by Avista to its distribution system to ensure the safe, reliable delivery of natural gas to over 95,000 Oregon customers.