Avista settles on rate hike

Avista Corp., of Spokane, would be able to raise electric and natural gas rates in Washington on Jan. 1, but not as much as it originally had proposed, if a settlement agreement is approved by the Washington Utilities and Transportation Commission.

The settlement would authorize Avista to increase its annual electric base revenues by 1.4 percent, or $7 million, and annual natural gas base revenues by 5.6 percent, or $8.5 million, according to new releases that it and UTC staff members issued today.

Avista earlier had asked the state to approve increases of 3.8 percent, or $18.2 million, in annual electric revenues, and 7.8 percent, or $12.1 million, in natural gas revenues.

Under the agreement, a residential electric customer’s bill would increase about 2.5 percent. An average residential customer using 965 kilowatt-hours could see an increase of $2.10, for a monthly bill of $82.19. The revised monthly bill includes a proposed increase in the basic monthly charge from $8 to $8.50.

Meanwhile, an average natural gas customer using 65 therms a month would see an increase of $3.62 a month, or 5.9 percent, for a revised monthly bill of $64.81. That includes a proposed increase in the monthly basic charge from $8 to $9.

The three-member commission, which isn’t bound by the settlement agreement, will make a final decision on the utility’s rate hike request this fall.