Avista seeks surcharge on Idaho customers’ bills to address mild 2016 winter

electric-power-avista

Avista Utilities wants to add a $4 monthly surcharge to its Idaho customers’ bills, saying the mild winter of 2016 hurt the company’s power sales and revenues.

In its filing with the Idaho Public Utilities Commission, Avista says electric and natural gas sales dropped during the “abnormally warm” winter, and as a result, the Spokane-based utility didn’t collect enough revenue to cover the fixed costs of providing power to its Idaho customers.  The shortfall was $9.6 million.

A three-year pilot program adopted by the IPUC last year allows Avista to request a surcharge when shortfalls occur, but it also requires the utility to give customer rebates for years when power sales exceed projections.

Avista is asking for the electric surcharge to take effect Oct. 1 and the natural gas surcharge to take effect a month later.

The request will be reviewed by the IPUC, and the public can weigh in through Aug. 31.

Avista asked for a similar surcharge in Washington last year, and both states cap the surcharge at 3 percent annually.  (Spokesman-Review)

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