Idaho approves Avista electricity rate hike

Idaho customers of Avista Utilities will pay more for electricity in 2017.

The Public Utilities Commission approved a rate increase for the Spokane-based utility, effective Sunday.

For residential customers, electric rates will go up by 3.1 percent. A typical household using 918 kilowatt hours of electricity will pay an extra $2.64 on their monthly bill, for a total of $87.15. The new rate includes an increase in the basic charge, from $5.25 per month to $5.75 per month.

The new rates will increase Avista’s annual electric revenue by $6.3 million annually, which allows for a 9.5 percent return on the company’s common stock.

Avista had originally asked for a $15.4 million increase in electric revenues, but agreed to the lower amount through a settlement with other parties in the rate case. Some costs associated with the Palouse Wind farm that were initially included in the utility’s base rates will be recovered through annual rate adjustments each fall that account for fluctuations in wholesale energy prices.

In Washington, Avista’s request for higher electric rates in 2017 was turned down by state regulators, who said the utility hadn’t made a strong enough case for the increase. The utility is contesting that decision and has asked for another hearing, with a decision from the Washington Utilities Commission expected by March 16.

Avista has more than 128,000 electric customers in Idaho.