Avista Enters Into Settlement In Oregon Natural Gas Rate Request - Quick Facts

(RTTNews) - Avista corp. (AVA) announced that the company and all other parties involved in the company's natural gas general rate filing have reached a settlement agreement that, if approved by the Public Utility Commission of Oregon or PUC, would conclude the proceedings for the general rate request filed on August 15, 2013. If the settlement agreement is approved, new rates would be effective in two phases: February 1, 2014 and November 1, 2014.

The settlement proposes that, effective February 1, 2014, Avista would receive an increase in rates designed to increase its annual billed revenues by 4.4 percent or $3.8 million.

The second phase would become effective November 1, 2014, and is estimated to provide for an increase of 1.6 percent or $1.35 million. The proposed settlement agreement reflects a 48 percent equity layer and a 9.65 percent return on equity or ROE.

According to the company, If the general rate request is approved by the PUC, a residential customer using an average of 48 therms per month would see a $2.65 per month increase, or 4.9 percent, for a revised monthly bill of $57.00, effective February 1, 2014. The second bill change effective November 1, 2014, for a residential customer using an average of 48 therms per month would be an increase of $0.92 per month, or 1.6 percent, for a revised monthly bill of $57.92. Avista serves about 96,700 customers in Oregon.