Avista: UTC Approves Settlement Raising Washington Electric, Natural Gas Rates

(RTTNews) - Electric utility Avista Corp. (AVA) late Tuesday announced that it has received approval, with minor changes, from the Washington Utilities and Transportation Commission or UTC on the all-party settlement agreement that was filed on August 18. The approval concludes the company's electric and natural gas rate requests filed on February 4, 2014. New rates will take effect on January 1, 2015.

The company noted that the approved rates are designed to increase annual electric base revenues by 2.5 percent or $12.3 million, inclusive of a $5.3 million November 2014 power supply update as required in the settlement agreement.

Approved natural gas rates are designed to increase annual base revenues by 5.6 percent or $8.5 million.

Dennis Vermillion, Avista Corp. senior vice president and president of Avista Utilities, said, "The Commission's decision represents positive outcomes for our customers, the company and our shareholders. It supports Avista's efforts to continue to make key capital investments in our utility infrastructure as well as recover the operating costs of serving our customers."

The company pointed out that the Commission recognized the impact of rising prices on customers, especially limited income and senior customers. The Commission conditioned its approval of the settlement on doubling the proposed increase in funding available for Avista's Low Income Rate Assistance Program or LIRAP to $400,000 for electric LIRAP funding and $428,000 for natural gas LIRAP funding.

In total, annual funding available for LIRAP will be approximately $4.4 million for electric customers and approximately $2.3 million for natural gas customers.

The parties to the settlement were also directed to discuss modifications and additions to LIRAP and submit proposals to the Commission by June 2015.