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Many factors included in company's rates

| April 15, 2009 9:00 PM

On April 2, you printed a letter from Craig Royer which said Avista’s rates increased by 21.3 percent in November, 26.4 percent in December, 26.9 percent in January and 26.7 percent in February. These are all incorrect.

On Oct. 1, Avista electric customers received an 11.98-percent increase and gas customers a 4.7 percent increase.

On Nov. 1, Avista customers (along with other utility customers throughout the Northwest) lost a credit they had been receiving from the Bonneville Power Administration. This was the result of a court action, not any action by Avista or Idaho Public Utilities Commission. That loss of that credit caused a 6.1-percent rate increase.

On Jan. 6, Avista gas customers received a 4.7-percent decrease to the purchased gas cost adjustment due to declining wholesale prices for natural gas.

Avista currently has an application before the commission for a 12.8-percent increase in base electric rates, with a 5-percent decrease in the power cost adjustment, for a net increase of 7.8 percent if approved in its entirely. The company is also seeking a gas rate increase of 3 percent.

The commission will be conducting public hearings in June and a decision is expected in July.

Contrary to the letter writer’s assertion, there were no changes to the rate in December, January or February. The real increases are bad enough. There’s no need to exaggerate them.

GENE FADNESS

Public information officer

Idaho Public

Utilities Commission

Boise