Gas rates to decline 14.5 percent
Coeur d'Alene Press | UPDATED 9 years, 2 months AGO
Rates for Avista Utilities’ natural gas customers in North Idaho will decrease by 14.5 percent starting on Nov. 1.
With the reduction, an average Avista residential customer using 61 therms per month will see a reduction of $7.94 per month.
Avista has a yearly mechanism called the Purchased Gas Cost Adjustment (PGA) that tracks the portion of gas expense that fluctuates every year depending on weather, wholesale market prices, transportation costs and other factors.
A reduction in wholesale market prices for natural gas due to a warmer-than-normal winter, an abundance of natural gas held in storage and continued high production levels of natural gas all contributed to a large reduction in this year’s PGA. The total amount refunded to customers is $2.3 million.
Idaho Public Utilities Commission staff examined Avista’s gas purchases for the year as well as its fixed-price hedges, pipeline transportation and storage costs and its estimates of future wholesale market prices.