Avista Price Adjustment Requests
by Delaney Carr
On September 2, 2022, Avista announced its price adjustment requests to the Washington Utilities and Transportation Commission (WUTC) for energy rates in Washington State and Idaho. If approved, Avista customers would see an increase in their energy bill on November 1, 2022.
However, your bill could vary depending on your energy source and usage. For electricity users, the cost increases are modest at 0.9%. This generated revenue would go towards Washington’s Wildfire Expense Balancing and Residential Exchange Program, which supports tracking the expenses of the risks and effects of wildfires in Avista’s service territories and equalizing customers’ lower rebate balance from the previous year.
For natural gas, price hikes will be more considerable at an increase of 12.1%-14.4% for Washington customers and an average of 15%-18.3% for Idaho customers. These price adjustments are an annual Purchased Gas Cost Adjustment (PGA) to reflect the current higher price of wholesale natural gas. For Idaho residents, an additional portion of the generated revenue will fund Avista’s natural gas energy efficiency programs that create customer rebates and incentives.
If natural gas prices continue to rise faster than electricity prices, coupled with the efficiency gains of heat pump technology, heating a building with electricity versus natural gas may become less expensive in the not-so-distant future. It’s important to remember that these price changes are not yet guaranteed and are still subject to a decision by the WUTC. In preparation for the fiscal year of 2023 and those who may be undergoing budget periods, this potential change in energy prices is important to consider when creating next year’s budget for your buildings.
To find more information, Avista has released a formal press release statement.