Avista files rate proposals in Washington that would not impact customer bills - Seite 2
As we make decisions about how and where to invest across the company, our customers are our primary focus. We take our responsibility to provide safe, reliable energy at an affordable price very seriously, and we work hard to manage our costs and identify ways to best serve our customers that contribute to keeping energy prices low,” Vermillion said.
Residential Customer Bills
Overall, changes in electricity prices have been approximately 1% higher per year and natural gas prices 2% lower, on average, since January 2016. This is lower than the rate of inflation during this time period, when compared to the Consumer Price Index. On average, the total monthly cost of Avista’s residential electric service is 33% lower than the national average, for investor-owned utilities.
If approved, the electric general rate request is designed to increase annual billed revenues by $44.2 million or 8.3%, but at that same time be fully offset with a Tax Customer Credit of the same amount. The net result would be no change in billed revenues effective October 1, 2021.
Residential electric customers in Washington using an average of 914 kilowatt hours per month could expect to see no monthly bill change from $82.33.
If approved, the natural gas general rate request is designed to increase annual billed revenues by $12.8 million or 7.9%, but at that same time be fully offset with a Tax Customer Credit of the same amount. The net result would be no change in billed revenues effective October 1, 2021.
Residential natural gas customers in Washington using an average of 67 therms per month could expect to see no monthly bill change from $56.53.
Tax Customer Credit
To mitigate the proposed base rate increase on customers, Avista is proposing a Tax Customer Credit. During 2020, Avista identified that there was opportunity to change the current methodology related to the treatment of certain tax items, whereby certain tax benefits could be passed along to customers over a shorter timeframe than over the life of those very long-lived assets, as is the current practice. For Washington, the total is $58.1 million (electric) and $28.2 million (natural gas), and we are proposing to amortize those consistent with approved balances up to two years only. As part of the Company’s proposal, any remaining balance, plus the on-going annual deferred balances, would be included in future rate proceedings and amortized over a 10-year period going forward.