The Idaho Public Utilities Commission (PUC) recently approved both fixed cost adjustment and power cost adjustment applications for Avista Utilities, which will result in decreased rates for the electric company’s customers.
Avista Utilities filed a power cost adjustment (PCA) and a fixed cost adjustment (FCA) with the Idaho PUC in late July. The PCA is an annual rate adjustment that is made to reflect the difference between the actual cost of generating and buying electric power to serve customers and the cost currently included in customer rates, the commission said in an Oct. 7 statement.
Avista Utilities said that over the last year, power supply costs were lower than those included in retail rates due to higher wholesale electric gas prices. The PCA was adjusted after being reviewed by commission staff.
The FCA is a mechanism designed to break the link between a utility’s revenues and customers’ energy usage. According to Avista Utilities, the proposed FCA rate adjustments were primarily driven by variations in 2023 customer usage related to weather and savings from participating in energy programs.