Avista’s electric rates too high, AG says

Avista Utilities’ electric rates are being challenged by the Washington Attorney General’s Office, which says customers are paying too much while utility’s shareholders stand to reap “a windfall.”

If not corrected, a calculation error made by state regulators during the utility’s last rate case would cost Avista’s electric customers about $12 million, while unfairly enriching the company’s shareholders, the AG’s Office of Public Counsel said in court documents filed Friday in Thurston County Superior Court.

Avista’s new rates took effect in early January. Base rates for residential electric customers dropped by about 1.92 percent, or about $1.57 on a typical monthly bill.

However, the AG’s office said customers are entitled to an even larger rate decrease, based on lower wholesale power costs. In court documents, the AG’s office said the electric rates failed the state’s test for being “fair, just and reasonable.”

The AG advocates on behalf of residential and small business customers in utility rate cases.

Avista’s rates are set by the Washington Utilities and Transportation Commission, which denied an earlier administrative appeal filed by the AG’s office.

Casey Fielder, an Avista spokeswoman, said the utility will participate in the appeal process through the courts.

“We believe the rates set by the commission are fair and reasonable for customers and for Avista,” she said.