ICL Agrees to Scaled Back Avista Rate Increase

ICL is working to keep electric rates low while increasing investments in energy efficiency. Here's a primer on a recent settlement of Avista's request to increase rates.

Avista will only get a portion of its requested increase. In March, Avista requested a 14%, or $32.1 million, increase in electric rates. ICL intervened and participated in settlement negotiations between the Public Utilities Commission, Avista and other customer groups. The resulting settlement limits the increase to 9.25%, or $21.25 million. 

Moreover, this increase will be offset by $17 million of tax money the company overcollected, which will return to ratepayers over the next three years. So electric rates for Avista customers will increase only 3.59% in 2010. The average residential customer consuming 1,000 kilowatt-hours per month will see an increase of about $3.50.

Avista will also provide $740,000 per year for low-income weatherization programs run by the Community Action Partnership of Idaho. The company will continue to invest in other energy-efficiency programs for all customers.

This settlement is a good deal for Avista customers. ICL recognizes that any increase in monthly bills is difficult during these tough economic times. The increase in this case stems from the need to update aging infrastructure and meet increasing demand for electricity. To combat rising energy prices, we are working hard every day to find better ways for everyone to use energy more efficiently.