The soaring prices at the gas pumps are an unwelcome reminder of what happens when demand outpaces supply. The pandemic, natural disasters, and national and global conflicts have thrown us some unfortunate curveballs over the past few years. And this has forced the prices of many commodities up.
Natural gas is one of those commodities, and its price is mostly affected by supply and demand. But it would be hard to budget for your home or business energy needs if your natural gas rates changed daily like gasoline does, right?
So how does Avista secure a reliable supply of natural gas at an affordable and stable cost?
Natural Gas Rate Adjustments
Avista procures natural gas in a variety of ways to pass wholesale and transport savings on to you.
Since natural gas prices change, Avista adjusts rates each year to reflect the ever-changing market conditions. This approach offers a reliable supply of natural gas at the lowest possible and predictable price.
Adjustment filings can be an increase or decrease in natural gas rates and revenues depending on what the market did over the past year and what customers paid. The adjustment is the difference and has no impact on Avista’s earnings. Avista makes no profit here.
If Avista files for this adjustment more than once a year, it’s because market conditions are changing rapidly and aren’t expected to return quickly. An adjustment is made to keep your rates more in line with actual market conditions so there isn’t one large surprise at the end of the year.