Avista reaches deal over rate increase

Avista reaches settlement over natural gas rate increase in Oregon

• On 4:05 pm EDT, Wednesday September 30, 2009

SPOKANE, Wash. (AP) -- Power company Avista said Wednesday that it has reached an agreement for an overall general rate increase of 7.1. percent for natural gas customers in Oregon.

The higher rates, if approved by Oregon regulators, would be more than offset by cheaper prices for natural gas.

Avista said the new rate would take effect Nov. 1 for its 94,000 Oregon customers and increase its revenue by $8.75 million.

As part of the settlement, customers would see a refund of $2.4 million on their November and December bills that would largely offset the general rate increase. At the same time, customers will see a rate decrease of about 20 percent because of lower gas prices.

Overall, a typical residential customer should see a monthly bill of $67 beginning Nov. 1, a decrease of about $10 and the lowest price since 2004. Commercial and industrial customers will see declines of 15 percent or more.

About 75 percent of the typical bill is for the actual cost of gas. The rest covers delivery expenses.

Avista provides electric services to 353,000 homes and businesses and natural gas to 313,000 homes and businesses in three Western states.

Avista shares fell 36 cents to $20.22 in late afternoon trading Wednesday.