Idaho customers get 29 percent gas hike from Avista

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Idaho customers get 29 percent gas hike from Avista

Friday, February 09, 2001

The Associated Press

BOISE -- Idaho regulators Thursday allowed Avista Corp. to hike its natural gas rates by about 29 percent for Panhandle residential customers, noting the company is going through "extraordinary times in the energy industries."

The Idaho Public Utilities Commission approved the increase, effective Feb. 15, concluding it recovers costs over which Avista has little or no control. The total net revenue to the company is more than $14 million.

"Clearly, the region is in the midst of an energy crisis," the panel wrote. "As before, we, as a commission, find that we have little choice when faced with demonstrated cost increases but to approve the application."

The commission noted Avista's market price for gas doubled since it was granted its last increase of $9.9 million in Sept. 1.

Avista has about 59,000 gas customers in northern Idaho, besides about 126,000 in eastern Washington.

In mid-January, the Washington Utilities and Transportation Commission granted natural gas rate hikes to Avista and other utilities.

Residential Idaho customers will pay about 29 percent more. Large commercial customers will see increases between 32.1 percent and 35.9 percent.

The Idaho regulators said one of the major factors causing the inflation is the increased demand for gas to generate electricity through turbines. There also is more call for gas due to cold weather through the country, and the purchase of western Canadian gas by customers in the American Midwest.

Limited drilling and exploration for new gas supplies have not kept up with demand.

"Not only is gas expensive, but also the market continues to be extremely volatile," the commission wrote.

http://www1.standard.net/stories/local/02-2001/FTP0197@local@90avista@Ogden.asp

-- Martin Thompson (mthom1927@aol.com), February 09, 2001


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