20210902News Release.pdf

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Case No. AVU-G-21-04
OrderNo.35116
Case No. AVU-G-21-03
Order No. 35150
Contact: Adam Rush
Office: [phone]
E-mail : adam.rush@nuc. idaho. eov
NEWS RELEASE: Commission approves applications from Avista Utilities that will change
rates for natural gas customers
BOISE (Sept. 2,2021) - The Idaho Public Utilities Commission has approved two applications
from Avista Utilities that will result in a rate change to customers.
In July, Avista filed its annual purchased gas cost adjustment application. The purchased gas
adjustment is a mechanism approved by the commission that adjusts rates up or down to reflect
changes in Avista's costs to buy natural gas from suppliers, including changes in transportation,
storage, and other related costs. The company defers the costs into its purchased gas adjustment
account, then passes them on to customers through an increase or decrease in rates.
The company has natural gas customers in northern Idaho, and transports the nafural gas it buys
to the customers through pipelines. In its purchased gas adjustment application, it proposed to
pass-through changes in the estimated cost of natural gas for September 2021 through October
2022 to customers. It also proposed to revise the amortization rates to collect the balance of
deferred natural gas costs. Avista said it filed the purchased gas adjustment application earlier
than the typical August-September timeframe to limit the bill impact to customers from the
accumulated deferral and amortization surcharge balances that have increased due to rising
natural gas costs in recent months.
Avista has received approval from the commission to increase rates for an average residential or
small commercial customerby $6.00 permonth, or 12.1percent, beginning Sept. l, 2021.
Residential or small commercial customers using an average of 63 therms per month will see
their monthly bills increase from $49.49 to $55.49. The change in rates will result in an annual
revenue increase of $9.0 million for Avista, or about 13.5 percent.
The company also received approval from the commission to refund deferred credit balances
associated with depreciation expense, Allowance for Funds Used During Construction, and the
Coronavirus Aid, Relief, and Economic Security Act benefits that would decrease natural gas
revenues by approximately $ I .9 million, or 2.9 percent beginning Sept. I , 2021 . The approval
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deqreases rates for an average resid€ntial or mall comnercial customer using an average of 63
therrrs per month by $ 1.a4 each month.
For additional informatiotr otr Avista's applications and the commiss,ion's decisions regarding
the,rn, please visit puc.idaho.gov/case/Detailsl6722 and puc.idaho.gov/case,lDetailsl6T2l.