20121105Comments.pdf

Idaho Public Utilities Commission November 1, 2012
P.O. Box 83720 AVt. - I;'- -o7
Boise, ID 83720-0074
Subject: Avista proposed 7.8% rate increase for natural gas
These comments are for the Idaho Public Utilities Commissioners to consider prior to ruling on the Avista
proposed 7.8% rate increase for residential customers. Avista claims that the cost of energy (gas) is 2/3 of the
total cost passed on to customers (reference attached Compensation page from the Avista website). The cost
of natural gas has dropped significantly over the past 6 years, and is currently at a 1985-2000 level. Rates
charged by Avista have not decreased proportionally with the cost of natural gas over this 6 year period.
Infrastructure and compensation cost increases should be more than offset by the low price of energy.
What is Avista doing to control their delivery costs? The price trend and forecast of low natural gas prices
should be driving significant rate decreases, not increases.
Respectfully,
Ken Kees
Dawn Kees
2604 Meadowlark Dr C'.
Lewiston, ID 83501
U.S. Natural Gas Wellhead Price
DoUrs pw Thound Cubic Ft
10.0
7.s
2.5
0.0 240 20â5 2â10
-US, Naltsm Gas WeoadPnoo
It seems there's more concern everywhere about executive compensation.
All publicly traded companies disclose executive salaries and it often makes
media headlines.
It's certainly true that top executives can earn a lot of money. Different people
might think that's fair or unfair. But here are some facts:
Each year, the Board of Directors reviews independently gathered salary
information about comparable executive positions at similar utilities.
Avista salaries are targeted to be competitive within th
• The state utility commissions also review executive
salaries and incentives to determine what is reasonable
to include in rates.
Not all executive compensation is included in rates. For
83% of the top 5 officers' compensation is included in rates Currently no
incentive compensation is included in rates.
It's certainly understandable that customers care about the salaries
A vista pays its employees.
Rates have gone up and times are tough for some customers, so it's natural to
hear some questions about what Avista employees are paid.
Avista employee salaries are targeted to be competitive within the market.
These salaries and incentives are reviewed by the 60 utility commissions when rates are set. Pøwer Sup$y
The salaries and incentives of
all officers combined make up
less than 34 a penny of every dollar
customers pay in rates.
I
How are rates and compensation related?
• The salaries of all Avista officers combined make
up less than a penny of every dollar customers
pay in rates.
• What's really driving rates is the direct cost
of energy, which is volatile, and is at least
60 cents of every dollar.
• Avista invests about $250 million dollars every year to maintain and
upgrade a complex system of pipes, poles, wires, dams and substations to
provide safe, reliable service.
• Avista strives to manage costs to keep rates as reasonable as possible.
The cost of energy is a much bigger
part of rates - 60 cents of every dollar
for electricity and 65 cents
for natural gas.
The remaining cost covers the
equipment and people needed
to deliver safe, reliable service.
Quick Facts
• One-half of a penny of every dollar that
customers pay in rates goes toward all
executive salaries
• Not all executive compensation is
included in rates, and no incentive
compensation is included in rates.
• Avista employs more than 1,500 people
who live, work and play in the
communities where they serve.
• Over the next five years, Avista expects to
invest about $1.2 billion dollars to
maintain a system that delivers safe,
reliable service to more than one million
people in three states.
Jean Jewell
From: [e-mail]
Sent: Friday, November 02, 2012 8:55 PM
To: Jean Jewell; Beverly Barker; Gene Fadness
Subject: PUC Comment Form
A Comment from Paul Kenary follows:
Case Number:
Name: Paul Kenary
Address:
City: Post Falls
State: Idaho
Zip:
Daytime Telephone:
Contact E-Mail: ip220eø(vahoo.com
Name of Utility Company: Avista
Acknowledge: acknowledge
Please describe your comment briefly:
On 10-11-12 Avista filed to increase Idaho natural gas rates by 7.3% Of course, the answer
to them should be NO.
Thank you.
The form submitted on http://www.puc.idaho.gov/forms/€€`€ipucl/ipuc.html
IP address is 50.37.163.26
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