SPOKANE, Wash. — Avista’s 2016 electricity and natural gas rates may need to be recalculated, according to a court decision from earlier this month.
The Washington State Court of Appeals ruled in favor of the state Attorney General’s office, which disputed methodology used to determine rate increases. The Washington Utilities and Transportation Commission (WUTC) approves Avista’s rates.
The court decision said projection of a future rate base were not “used and useful” for service in Washington and Avista may not base its rate upon them.
According to court documents, Avista filed a request with WUTC to increase its rates for electric service by $33.2 million – an increase of 6.7 percent. The company also request a 6.9 percent rate increase for natural gas service.
The WUTC set rates lower than Avista’s initial request. It concluded that the company’s electric services revenue requirement needed to be reduced by approximately $8.1 million, according to court documents.
According to court documents, the WUTC granted an adjustment of nearly $6.8 million for Avista’s natural gas operations. The company collected an additional $10.8 million in revenue.
The new rates began January 2016.
Kate Griffith with WUTC said the commission is reviewing the appellate court’s decision and has until September 6 to file a petition for review by the state supreme court.
Avista officials said in a statement that the company has reviewed the opinion and will participate in any future process the Commission recommends related to this case.
