M
manny15
Guest
Retraded or what!
Dear Avista Customer,
You may have heard that Avista has requested an increase in natural gas rates to recover the costs of recent upgrades to our distribution system. What you may not have heard is that we also expect to ask for a rate reduction in late August, because of the decreasing cost of natural gas. The net result should be to lower the overall rate that you pay for natural gas.
Many of our customers, and perhaps you are among them, have asked for more information about the cost of energy, and emails like this are one way we are responding to encourage a new conversation with our customers.
Natural gas rates cover two kinds of costs. First is the cost of delivering natural gas ? the equipment and people needed to provide safe and reliable delivery of service. We work hard to keep these costs as low as possible and now need to recover the costs for upgrades we've made to our natural gas system in Oregon. As a result, we filed a request on June 25 with the state regulatory commission to increase natural gas rates. If approved, rates would be effective in the first half of 2010. This would be only the third such increase since Avista began serving natural gas service in Oregon in 1991.
Rates also cover the wholesale cost of natural gas. We have purchasing plans and decades of experience that help to keep these costs as low as possible. However, ultimately the cost is set by the market, which is why natural gas prices fluctuate up and down. This cost is passed directly to our customers. The wholesale cost has continued to decline since our last rate decrease of 4.1 percent on November 1, 2008. If prices continue at current levels, we plan to request a significant rate reduction in late August. If approved, lower gas rates will be effective November 1, 2009, in time for the winter months.
We expect that the net result of these two requests will be a decrease in overall rates.
We'll continue to keep you informed about these and other relevant issues. Please share your comments, concerns and questions with us: visit www.avistautilities.com/conversation, or email us at [email protected].
Kelly Norwood
Vice President for State and Federal Regulation
Avista Corporation
Dear Avista Customer,
You may have heard that Avista has requested an increase in natural gas rates to recover the costs of recent upgrades to our distribution system. What you may not have heard is that we also expect to ask for a rate reduction in late August, because of the decreasing cost of natural gas. The net result should be to lower the overall rate that you pay for natural gas.
Many of our customers, and perhaps you are among them, have asked for more information about the cost of energy, and emails like this are one way we are responding to encourage a new conversation with our customers.
Natural gas rates cover two kinds of costs. First is the cost of delivering natural gas ? the equipment and people needed to provide safe and reliable delivery of service. We work hard to keep these costs as low as possible and now need to recover the costs for upgrades we've made to our natural gas system in Oregon. As a result, we filed a request on June 25 with the state regulatory commission to increase natural gas rates. If approved, rates would be effective in the first half of 2010. This would be only the third such increase since Avista began serving natural gas service in Oregon in 1991.
Rates also cover the wholesale cost of natural gas. We have purchasing plans and decades of experience that help to keep these costs as low as possible. However, ultimately the cost is set by the market, which is why natural gas prices fluctuate up and down. This cost is passed directly to our customers. The wholesale cost has continued to decline since our last rate decrease of 4.1 percent on November 1, 2008. If prices continue at current levels, we plan to request a significant rate reduction in late August. If approved, lower gas rates will be effective November 1, 2009, in time for the winter months.
We expect that the net result of these two requests will be a decrease in overall rates.
We'll continue to keep you informed about these and other relevant issues. Please share your comments, concerns and questions with us: visit www.avistautilities.com/conversation, or email us at [email protected].
Kelly Norwood
Vice President for State and Federal Regulation
Avista Corporation
