Avista Requests 10.7% Price Decrease in Oregon
Avista's (NYSE: AVA) 96,000 customers in Oregon could see an overall decrease of 10.7 percent in their natural gas rates by Jan. 1, 2013, if the Public Utility Commission of Oregon (PUC or Commission) approves the company's annual Purchased Gas Cost Adjustment (PGA) and related filings made today.
PGAs are filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount included in rates. Abundant supplies of natural gas and continued soft demand for the commodity have continued to keep wholesale natural gas prices at lower levels over the past year. The company does not mark up the cost of natural gas purchased to meet customer needs, so there is no impact on company earnings.
"Each year, we propose to adjust the rates our customers pay so that customers' bills better reflect our actual costs of purchasing natural gas," said Dennis Vermillion, president of Avista Utilities. "Today's requested rate reductions are largely due to lower natural gas prices, which is good news for our customers."
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