181102 Avista PGA order.pdf

Case No. AVU-G-18-04
Final Order: 34187
Contact: Matt Evans
Office: [phone]
Cell: [phone]
[e-mail]
Commission approves surcharge changes,
lowering Avista natural gas rates
BOISE (Nov. 2, 2018) – Avista’s rates for natural gas service dropped Nov. 1 after state
regulators approved a change to the Purchased Gas Cost Adjustment (PGA).
The decision by the Idaho Public Utilities Commission lowers the PGA by 0.8 percent for
General Service customers, effective Nov. 1.
That equates to a monthly savings of about 34 cents for the average residential customer
using 63 therms per month, lowering that customer’s monthly bill from $48.31 to $47.97.
Combined with a recent Commission order that lowered the Fixed Cost Adjustment, also
effective Nov. 1, residential customers using an average of 63 therms per month will see
their monthly bills fall by approximately 4.9 percent.
That equates to a monthly savings of $2.38, lowering the monthly bill from $48.31 to
$45.93.
The PGA can be adjusted with Commission approval in order to account for changes in
costs Avista incurred over the previous year purchasing, storing and transporting the
natural gas required to serve approximately 83,000 customers in northern Idaho.
If the costs do not match the amount that customers paid into the PGA account, the PGA
allows Avista to balance the two. It is reflected as a credit when natural gas prices are lower
than the amount included in rates, or as a surcharge when market prices exceed
projections.
The PGA is typically adjusted annually, with the new rate taking effect each Nov. 1.
However, the Commission approved a 6.4-percent decrease for residential customers in
January 2018, three months after a 2.4-percent decrease took effect.
The primary drivers behind the PGA change that took effect Nov. 1 were continued low
natural gas commodity costs and lower costs for transporting natural gas on interstate
pipelines to Avista’s distribution system.
All documents related to this case, including the Commission order and Avista’s
application, are available here. Or go to the Commission’s web site, www.puc.idaho.gov,
click on “Open Cases” under the “Natural Gas” heading and scroll down to case number
AVU-G-18-04.