Avista requests lower natural gas prices

Avista requests lower natural gas prices

By BRIAN WALKER

Hagadone News Network

KOOTENAI COUNTY - Natural gas relief appears to be on the way for Avista customers.

Avista has filed a request with the Idaho Public Utility Commission to reduce natural gas prices 4.7 percent effective Jan. 6.

If approved, a residential natural gas customer using the average 65 therms per month would see a decrease of $3.89 for a revised monthly bill of $78.23.

"Wholesale natural gas prices have declined since Avista filed its annual Purchase Gas Cost Adjustments in September," said Kelly Norwood, Avista vice president for state and federal regulation. "We believe it is important during these challenging economic times that our customers receive the benefit from these lower natural gas prices now rather than waiting until annual PGAs are filed again next fall."

Annual PGA filings are typically each year in the fall to pass through changes in the cost of natural gas Avista acquires to serve customers. PGA filings do not impact company earnings.

"This year there was not only a significant dropoff of natural gas prices from summer to fall, but also a dropoff in prices just this fall," said Avista spokeswoman Jessie Wuerst. "We really didn't want to wait for the annual cost adjustment because we wanted to extend the benefit to our customers during winter with the economic challenges facing all of us.

"This has been an extraordinary year."

Wuerst said Avista is optimistic that the IPUC will act on the request quickly.

Avista serves about 72,000 natural gas customers in North Idaho. Avista is also seeking a 3 percent decrease on the Washington side that is proposed to be effective Jan. 16.

About 75 percent of an average residential customer's monthly natural gas bill is the cost of the natural gas and pipeline transportation. The remaining 25 percent is Avista's fixed costs to provide natural gas service through its distribution system.