May 28, 2009
Docket Number: UG-090767

OLYMPIA, Wash. – For the second time this year, state regulators have approved a decrease in natural gas rates for Avista customers.

The Washington Utilities and Transportation Commission (UTC) approved the utility’s request to reduce natural gas rates by 8.1 percent starting June 1 in response to excess supply caused by a weak economy resulting in a sharp decline in wholesale natural gas prices.

The average bill for a typical residential customer, based on about 70 therms a month, will drop by $7.02, or 8.1 percent, to $79.43. In January, the commission approved a 3 percent decrease for Avista customers.

Natural gas companies are required to adjust rates periodically to reflect the changes in wholesale prices. Avista indicated that, if wholesale natural gas costs continue to drop, it could seek an additional rate reduction in November.

Spokane-based Avista serves nearly 146,000 natural gas customers in 10 counties, primarily in Eastern Washington.

The three-member state commission regulates the private, investor-owned natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.