On December 12, 2022, the Washington Utilities and Transportation Commission (the WUTC) approved a multiparty settlement stipulation (Settlement) subject to conditions for Avista Corporation’s (Avista) multi-year rate plan for electric and gas service in Docket Nos. UE-220053 and UG-220054. This was the first approved rate increase since the Washington Legislature passed legislation in 2021 requiring utilities to file multi-year rate plans.
Several parties joined the Settlement including Avista, the Alliance of Western Energy Consumers, the NW Energy Coalition (NWEC), The Energy Project, Sierra Club, Walmart, and Small Business Utility Advocates (collectively the Settling Parties). The Public Counsel Unit of the Washington Attorney General’s Office (Public Counsel) was the only party that did not join the Settlement.
The approved Settlement authorizes an electric revenue requirement increase of $38 million in rate year one, electric revenue requirement increase of $12.5 million in rate year two, gas revenue requirement increase of $7.5 million in rate year one, and gas revenue requirement increase of $1.5 million in rate year two. However, this is before the increases are offset by the Residual Tax Customer Credit of $27.6 million for electric customers and $12.5 million for gas customers over the two-year period. For rate year one, the average electric customer using 932 kWh a month can expect a $4.47 increase per month and the average natural gas customer using 67 therms can expect a $0.20 increase per month. For rate year two, the average electric customer using 932 kWh a month can expect a $2.24 increase per month and the average natural gas customer using 67 therms can expect a $0.52 increase per month.
The approved Settlement also addressed many other issues. The approved Settlement removed certain costs associated with the Colstrip generation plant and established a new Tariff Schedule 99 Colstrip Tracker for an annual true-up to separately track and potentially recover other Colstrip costs. The prudency of those certain costs will be determined later. A set of performance metrics were established to track and report data related to affordability, equitable service, energy burden, reliability, wildfires, customer experience, emissions reductions, electric grid benefits, natural gas system benefits, and transportation electrification. Regarding natural gas transition, the approved Settlement included terms on line extension allowances to phase out the allowances by January 1, 2025, non-pipe alternatives, customer reporting requirements, and the development of a natural gas decarbonization plan. The approved Settlement also included several terms on low-income issues such as a new renewable energy project or projects for low-income customers and low-income conservation and weatherization programs and funding.
Sanger Law, PC represented NWEC regarding the Avista General Rate Case.
NWEC is an alliance of over 100 environmental, civic, and human service organizations, utilities, and clean energy businesses in Oregon, Washington, Idaho, Montana, and British Columbia. NWEC is committed to designing, promoting, and implementing clean, affordable, and equitable energy policy grounded in analytical expertise.
Disclaimer
These materials are intended to as informational and are not to be considered legal advice or legal opinion, nor do they create a lawyer-client relationship. Information included about previous case results does not assure a similar future result.
