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Avista wants 35% increase Typical residential customer would pay about $16 more a month By Shari Downhill Avista Utilities� 79,000 natural gas customers may see their bills increase by a third next month. Avista Utilities asked the Oregon Public Utilities Commission Wednesday to approve a 35 percent rate increase effective Jan. 19, pointing to escalating natural gas prices as the reason. Known as a Purchase Gas Cost Adjustment, or PGA, Avista�s filing primarily reflects recent price increases from Canadian and Rocky Mountain natural gas suppliers, said Chuck Gates, Avista�s marketing development manager. The PGA filing in Oregon follows similar requests by Avista to raise rates in Idaho and Washington earlier this month. The Oregon filing asks for an overall increase of 35 percent, or $22.4 million in revenues. If approved by Oregon regulators, a residential customer using a typical 60 therms of natural gas per month will see an increase of $15.90, or 35 percent. The total bill for 60 therms per month, including the increase, would be about $61.30.Utilities measure gas use in cubic feet. One therm is 100 cubic feet. Larger-use commercial and industrial customers will see a higher percentage increase because of lower base rates. Avista managers said wholesale-price increases are being passed through to customers and do not reflect a profit-related markup. "The Canadian suppliers are the ones lining their pockets with gold right now," Gates said. "They�re getting incredible prices (for natural gas)." Rocky Mountain supplier prices are lower, but still high compared to wholesale market prices of a year ago, he said. Prices from Canadian suppliers reached as high as $4.23 a therm about Dec. 11. By Dec. 18, the price had dropped to $1.04 a therm. Still, current prices are well above the 20 to 30 cents a therm of a year ago. "We�re just slightly optimistic that we�ll see prices continue to fall," Gates said. If they do, Gates said, Avista will file a request for rate decreases with the PUC. Avista Utilities has decreased natural gas prices six times during the 1990s. While the current PGA filing correlates with the purchase price of natural gas, Avista has not filed for a rate increase to cover operating costs since 1983, Gates said. "I think it�s fair to say we wished we could have waited until after the first of the year to do this," Gates said. "But we couldn�t." Profits realized by natural gas suppliers have prompted renewed drilling investment and efforts, which will result in increased supplies hitting the market within the next year. "It�s causing more drilling to take place and when those supplies hit the market, we�ll see prices leveling off," Gates said. "We�re cautiously optimistic." Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.