Avista just filed tariff changes that will raise the threshold for mandatory primary service from 1,000kW to 1,500kW starting January 2024. They're also eliminating the primary voltage discount for customers between 750kW and 1,000kW. Anyone have insights into why utilities are moving away from encouraging primary service? This seems to be a trend across the Northwest.
Avista primary voltage thresholds changing in 2024
Willa, I think it's partly about grid modernization costs. NorthWestern Energy mentioned in their last rate case that managing primary service customers requires more sophisticated protection and monitoring equipment. Maybe utilities are realizing the discounts don't cover the true cost of serving these customers. How much are they reducing the discount?
The discount is going from 8% to 3% for the 750-1000kW tier, and they're eliminating it entirely for smaller customers. Theresa, you're probably right about the grid modernization angle. Avista is investing heavily in smart grid technology and they need revenue to support that infrastructure. Still feels like they're penalizing efficiency though.