IPUC starts investigation of Avista's electric, gas requests

The Idaho Public Utilities Commission has suspended the effective date for a proposed rate increase for up to six months from Avista's requested effective date of May 5.

Avista is seeking an average 15.8 percent electric rate increase and a 5.8 percent natural gas increase.

Idaho Public Utilities Commission spokesman Gene Fadness said such major rate hike requests routinely require an investigation by the commission.

“The investigations we undertake are very thorough,” Fadness said, adding that there is a review of financial records, an engineering study of the infrastructure investments and upgrades and an attorney examines legal issues associated with items such as the hydroelectric dam relicensing process.

“Whenever we have a major rate case, it can last six to seven months. People can have a very legitimate concern that we'll decide this in the next few weeks, but that's not the case.”

Fadness said such investigations do not imply that a utility is gouging its customers.

Fadness said there will be public hearings and public comment periods on the requests at times to be determined.

The IPUC has also set a May 9 deadline for those wanting to file as “intervenors” in the Avista Utilities electric and gas rate increase case.

Those who petition the commission to intervene become parties to the case for the purpose of presenting evidence, cross-examining witnesses and participating in settlement or negotiation conferences.

Intervenors typically represent organizations acting on behalf of customers. In the last Avista rate case in 2004, intervenors included Potlatch, the Community Action Partnership of Idaho and Coeur Silver Valley. 

There will also be opportunities for individual ratepayers to submit written comments and participate in workshops and public hearings, which have yet to be scheduled.

Avista serves about 120,000 electric customers and 71,700 natural gas customers from Grangeville north to Sandpoint.

A prehearing conference to establish how the case will progress has been set for Wednesday, May 14, in the commission hearing room at 472 W. Washington St. in Boise.

The purpose of the conference is to identify intervening parties, identify issues not readily apparent in the company's application and to establish future dates for hearings and deadlines for filing testimony.

The company claims the increase is needed to pay for increasing power supply costs, capital investment in upgrading aging infrastructure, costs incurred in the relicensing process for the Spokane River Hydropower Project and the company's investment in advanced meter reading.

Part of the commission's job will be to determine if the added investment and infrastructure upgrade was needed and if the company was prudent in its financial decision-making.

Avista customers can read all the documents filed in the Avista case thus far, including testimony from Avista executives, by going to www.puc.idaho.gov. Click on the electric icon, then on “Open Electric Cases,” and scroll down to Case No. AVU-E-08-01.