Avista reaches settlement in Idaho general rate requests

Avista and other parties involved in the company's electric and natural gas general rate filings have reached a settlement agreement that, if approved by the Idaho Public Utilities Commission, would conclude the proceedings related to the general rate requests filed on Oct. 11, 2012. New rates would be implemented in two phases: April 1 and Oct. 1. The settlement proposes that, effective April 1, Avista would increase base rates designed to increase its annual revenues from Idaho natural gas customers by 4.9% or $3.1M. The settlement also proposes that, effective October 1, Avista would receive an additional increase in base rates designed to increase its annual revenues from Idaho natural gas customers by an overall 2.0% or $1.3M. A credit resulting from deferred natural gas costs of $1.6M would be returned to natural gas customers from Oct. 1, 2013 through Dec. 31, 2014, so the net annual average natural gas rate increase to customers effective Oct. 1, 2013 would be 0.3%. The $1.6M credit to natural gas customers resulting from deferred natural gas costs and the $3.9M credit to electric customers from Bonneville Power Administration relating to the prior use of Avista's transmission system will not impact company earnings.