Avista filed a four-year rate increase proposal to maintain safe energy service and address rising operational costs.
Quiver AI Summary
Avista has submitted a four-year general rate case to the Washington Utilities and Transportation Commission, which will review the proposal and issue a decision by late 2026. The rate increase aims to enhance the safety and reliability of energy services in the region, addressing rising costs related to grid modernization, compliance with clean energy laws, and investments in hydropower infrastructure. The proposed electric and natural gas rate increases will take effect from January 2027 through 2030, with residential electric bills projected to rise from $124.23 today to $157.94 by 2030. Avista CEO Heather Rosentrater acknowledged the challenge of rising energy costs for customers and emphasized the company's commitment to providing support through various assistance programs. The rate adjustments reflect necessary investments to maintain reliable energy service amid increasing operational costs and regulatory requirements.
Potential Positives
- Avista's filing for a four-year general rate case demonstrates proactive management and planning for the long-term reliability and safety of energy services in the region.
- The proposed rate increase is positioned as necessary for significant infrastructure upgrades, including modernization of the grid and compliance with clean energy laws, showcasing the company's commitment to sustainability.
- Avista is offering various customer assistance programs to help manage the financial impact of the rate increase, which highlights the company's focus on customer support and community engagement.
- The planned investments are aimed at enhancing wildfire safety and grid resiliency, addressing emerging risks that directly impact the community's well-being.
Potential Negatives
- The proposed rate increases, particularly a 13.9% jump for electric customers in the first year, could lead to significant customer dissatisfaction and potential backlash due to increased cost of living for consumers.
- Rising energy costs may create a negative perception of the company, as it highlights challenges in managing operational and infrastructure expenses effectively.
- The need for a rate case and subsequent increases may indicate underlying financial pressures or inefficiencies within the company's operations or planning processes.
FAQ
What is the purpose of the new rate case filed by Avista?
The rate case aims to ensure safe and reliable energy service while addressing rising costs and necessary infrastructure investments.
When will customers see the proposed rate increases?
The proposed rate increases are set to start January 1 of 2027, with subsequent adjustments for the following three years.
How will the proposed rate increase impact monthly bills?
An average residential electric customer could see their bill increase from $124.23 today to $157.94 by 2030.
What support options are available for customers struggling with bills?
Avista offers bill discounts, flexible billing options, energy-saving tools, community support, and assistance through their CARES team.
How does Avista plan to improve energy reliability and efficiency?
The company is focusing on infrastructure upgrades, technology improvements, and wildfire safety measures to enhance energy reliability and efficiency.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
SPOKANE, Wash., Jan. 16, 2026 (GLOBE NEWSWIRE) -- Today Avista (NYSE: AVA) filed a four-year general rate case with the Washington Utilities and Transportation Commission (WUTC or Commission). The Commission has up to eleven months to review the general rate case filings and issue a decision in late 2026.
Why is a rate increase needed?
This proposal is designed to keep energy service in our region safe and reliable now and into the future, reflecting our commitment to thoughtful, long-term planning for the communities we serve. It addresses rising costs associated with maintaining and modernizing the grid, complying with clean energy laws, covering the increased cost of purchased power, investing in hydropower infrastructure improvements, and protecting our communities from emerging risks like wildfires and catastrophic weather events.
"As a lifelong member of this community, I recognize that rising energy costs are difficult for our customers," said Heather Rosentrater, Avista President and CEO. “While this rate request reflects what’s needed to maintain safe, reliable service, we’re committed to helping customers manage their bills through payment assistance programs and energy-saving tools, while continuing to control costs and investing in technology to improve efficiencies.”
“This proposal helps us make the investments needed for reliability and critical infrastructure, while giving our customers more predictability over the next four years,” continued Rosentrater.
What is driving increased energy costs?
Our request is driven by the need to recover increased operating and maintenance costs and to fund critical investments that impact energy costs, including:
- Power generation and supply – Rising costs to produce and purchase electricity that meets regional clean energy requirements
- Infrastructure upgrades – Modernizing and securing the electric grid, expanding substation capacity, updating century-old hydroelectric facilities, and replacing aging natural gas pipe to continue to serve safe and reliable energy across our region
- Wildfire safety and prevention – Vegetation management, grid hardening, and advanced wildfire risk monitoring to improve resiliency throughout our service territory
- Technology improvements – Improving the reliability and efficiency of systems that serve our customers
- Regional growth and reliability – Planning ahead to meet the changing energy needs of our growing region
- Clean energy compliance – Meeting state and regional energy requirements, such as the Climate Commitment Act (CCA) and the Clean Energy Transformation Act (CETA)
How much would customer bills be affected?
New electric and natural gas rates are proposed to start January 1 of 2027, 2028, 2029, and 2030. The proposed first year increase is larger because it includes costs from past investments and updated power supply costs that are not in current rates. It’s important for customers to know the exact impact of any increase depends on their rate schedule and how much energy they use.
The proposed increase by service schedule is as follows:
| Proposed Annual Percentage Increases by Service Type | |||||||||
| Service Type | 2027 | 2028 | 2029 | 2030 | |||||
| Electric-Most Schedules (Residential, General Service, Large General Service, Pumping Service, Street/Area Lights) | 13.9% | 4.7% | 3.5% | 2.8% | |||||
| Electric-Large General Service (Special Contract) | 13.6% | 4.6% | 3.4% | 2.8% | |||||
| Natural Gas-General Service (101) | 5.0% | 2.5% | 2.2% | 1.1% | |||||
| Natural Gas-Large General (111,112,116) | 4.0% | 2.0% | 1.8% | 0.9% | |||||
| Natural Gas-Interruptible (131, 132) | 3.3% | 1.7% | 1.5% | 0.8% | |||||
| Natural Gas-Transportation (146) | 5.5% | 2.7% | 2.4% | 1.2% | |||||
If approved, the average Washington residential electric customer using 925 kWh per month would see an increase from $124.23 today to $157.94 in 2030, with an initial $17.21 increase in 2027 and smaller amounts each year after.
The average Washington residential natural gas customer using 61 therms per month would see an increase from $91.06 today to $100.46 in 2030, with an initial $4.14 increase in 2027 and smaller amounts each year after.
What options do customers who need help with their bills have?
We understand household costs are increasing, and energy is one part of that. We offer tools and programs to help customers manage their energy costs and stay on track, including:
- Bill Discounts: My Energy Discount offers customers who qualify a personalized monthly bill discount. It’s easy to enroll, has flexible requirements, and lasts for two years. Nearly one in three Washington customers are eligible.
- Flexible Billing: Options like Comfort Level Billing, preferred due date, and payment arrangements help spread billed costs out to give customers more control.
- Energy-Saving Tools: Online energy insight tools allow customers to track their energy use and make adjustments to reduce. Do-it-yourself tips and videos, money-saving rebates, and a free home energy audit help lower energy use and costs.
- Community Support: Partnerships with local agencies provide emergency grants, home weatherization upgrades, and heating system improvements for those who qualify.
-
Extra Help:
Our CARES team connects customers with resources for housing, medical assistance, and other needs during tough times.
Customers can learn more about their options at myavista.com/assistance or by calling 1-800-227-9187.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses.
Avista Utilities
is our operating division that provides electric service to 422,000 customers and natural gas to 383,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol “AVA”. For more information about Avista, please visit
www.avistacorp.com
.
This news release contains forward-looking statements regarding the company’s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company’s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company’s and the Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2025, and its Annual Report on Form 10-K for the year ended Dec. 31, 2025.
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
SOURCE: Avista Corporation
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