|
On September 18, 2007 Avista proposed cutting natural gas bills for customers in Washington and Idaho at the rate of 6 percent and 4.6 percent, respectively. That would mean a Washington customer's bill would drop by an average of $5.32 per month, while an Idaho customer's bill would result in an average monthly savings of $3.65.
Acorrding to an article published in The Spokesman-Review on September 18, the "slight drop in price is due partly to Avista increasing its storage capacity and adhering to a disciplined gas purchasing plan." If approved by the Washington Utilities and Transportation Commission and by the Idaho Public Utilities Commission, the changes would take effect November 1 of this year.
But then, just two weeks later, a public hearing was held in Spokane to allow for comments on proposed rate increases by Avista -- a 15.85 percent rate increase in electricity and a 2.27 percent increase in natural gas for Washington customers. If approved, the average monthly residential bill would go up another $12 per month: about $10 for electricity and $2 for natural gas. It would also mean that Washington customers' cut in natural gas bills would be very short-lived.
According to The Spokesman-Review article published October 3, 2007, "Avista says it needs the money to pay for equipment upgrades at its dams built more than 50 years ago." The question that begs asking here is: Don't you have a reserve account for that? Every homeowner and businessman knows that equipment breaks down and wears out -- and that you must plan NOW if you want to be able to make replacements later. The business folks at Avista know that, too.
The same October 3, 2007 newspaper article states that the other reason Avista wants the rate increase is because it "wants to boost its profit margin, asking the commission for the right to earn an 11.4 percent rate of return." All those who gave testimony at the hearing opposed Avista's request for an increase. Some even encouraged Avista to do what other local companies on a tight budget must do: freeze employee pay and slash executive compensation. Not unreasonable advice, considering Avista's CEO earned $2.57 million in salary, bonuses and stock grants in 2005 -- and that was two years ago!
The Washington Utilities and Transportation Commission will be accepting public comments on Avista's proposed rate increase for Washington customers until December 7, 2007. In case you'd like to voice your own opinion, here's their contact information:
Washington Utilities and Transportation Commission
P.O. Box 47250
Olympia, WA 98504-7250
Phone: 360.664.1160
Fax: 360.586.1150
TTY: 1.800.416.5289
Email: mdeyoung@wutc.wa.gov
Website: www.wutc.wa.gov/contacts
We'd like to know your thoughts and comments on this topic, too, so email us and we'll post them on Spokane.net. If you don't have time to write, then feel free to vote in our PulsePoll.
|
Poll Results ...
Question:
"Do you think Avista's recent request to increase electric and natural gas rates in the state of Washington should be approved?"
Results:
Yes -- 12.5%
No -- 75.0%
Undecided -- 12.5%
Send us your comments ...
We’d like to know what you have to say about this week’s Hot Topic. Send your comments to Editor@Spokane.net, and we will post them . Be sure to include this week's Hot Topic title in the reference line of your email.
If you have suggestions for topics you would like to see discussed in Hot Topics, email us.
|