Idaho Public Utilities Commission

Case No. AVU-G-09-05, Order No. 30912

September 29, 2009

Contact: Gene Fadness (208) 334-0339, 890-2712

Avista requests third gas rate decline this year

Continued declines in the prices of wholesale natural gas have led to the third request by Avista Utilities this year to decrease rates. The Idaho Public Utilities Commission will take comment through Oct. 16 on Avista’s application to reduce residential rates by about 17.8 percent.

The filing is part of Avista’s Purchase Gas Cost Adjustment (PGA) that is made at least once yearly. The PGA results in either a surcharge or a credit depending on the always fluctuating prices of wholesale gas and related transportation costs. While the decrease, if approved, would reduce the company’s annual revenue by $14.7 million, the PGA portion of rates does not impact company earnings regardless of whether the PGA is a surcharge (increase) or a credit (decrease).

If the commission approves Avista’s request, Idaho customers who use the system average of about 66 therms per month can expect their bill to decrease by $12.74 for a revised monthly bill of $62.21. Large commercial and industrial customers would get about a 20 percent decrease.

If this decrease is approved, Avista gas rates will have decreased by about 25 percent during 2009.

The commission plans to handle this request in a modified procedure that uses written comments rather than conducting a hearing, unless customer comments can demonstrate a need for a public hearing. Comments are accepted via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case number (AVU-G-09-05) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.

A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site at www.puc.idaho.gov. Click on “File Room” and then on “Gas Cases” and scroll down to the above case number.