Avista files a multi-year rate plan with IPUC, proposing revenue increases for electric and natural gas services starting September 2025.
Quiver AI Summary
Avista has submitted a multi-year rate plan to the Idaho Public Utilities Commission, seeking approval for new rates effective in September 2025 and September 2026. The plan aims to address the company's fixed costs and ongoing investments in infrastructure and technology essential for providing reliable energy. If approved, the annual base revenue for electric service would increase by $43 million (14.4%) in 2025 and $17.7 million (5.2%) in 2026, while natural gas revenues would rise by $8.8 million (10.3%) in 2025 and $1 million (1%) in 2026. The proposal includes infrastructure improvements, a stay-out period for new general rate cases until 2027, and efforts to keep costs affordable for customers. Residential electric bills are expected to rise by approximately 14.7% in 2025 and 5.3% in 2026, while natural gas bills would see a 10.4% increase in 2025 and a modest 1.3% increase in 2026.
Potential Positives
- Avista has filed a multi-year rate plan aimed at recovering costs for infrastructure and technology investments, demonstrating a commitment to maintaining and improving energy service reliability.
- The proposed plan includes a stay-out period where no new general rate case will be filed before September 2027, providing customers with predictability in energy pricing.
- The rate increase, if approved, is designed to generate additional revenues that can support essential infrastructure and technology upgrades necessary for continued reliable service.
- Avista is implementing various customer support programs, including energy efficiency initiatives and assistance for special-needs customers, which reflects the company’s focus on customer welfare and cost management strategies.
Potential Negatives
- The proposed rate increases for electric and natural gas customers total significant annual revenue increases, which may lead to customer dissatisfaction and backlash against the company for higher utility bills.
- The planned increase will create a basic charge for residential customers that could increase from $20.00 to $30.00 per month, potentially aggravating lower-income customers who are already struggling with high energy costs.
- The need to request substantial rate increases may indicate underlying financial challenges or unsustainable cost management practices within the company, which could raise concerns among investors and stakeholders about its long-term financial health.
FAQ
What is Avista's multi-year rate plan about?
Avista's multi-year rate plan aims to recover costs for infrastructure, technology, and fixed expenses while ensuring safe and reliable energy delivery.
When would the new rates take effect?
If approved, the new rates would take effect in September 2025 and September 2026.
How much will residential customer bills increase?
Residential electric bills may increase by 14.7% in 2025 and 5.3% in 2026, while natural gas bills could rise by 10.4% and 1.3% respectively.
What is the purpose of the proposed rate plan?
The purpose is to create a stay-out period for new rates, providing customers with predictability in their energy bills until September 2027.
How can customers express their opinions on the rate filing?
Customers can file written comments with the Idaho Public Utilities Commission or visit the commission's website for more information.
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. 31, 2025 (GLOBE NEWSWIRE) -- Today, Avista (NYSE: AVA) has filed a multi-year rate plan with the Idaho Public Utilities Commission (IPUC or Commission) that would allow the Company to recover costs for fixed expenses and ongoing investments to infrastructure, technology and more. If approved, new rates would be effective in Sept. 2025 and Sept. 2026.
“The cost of delivering safe and reliable energy includes maintaining and improving a massive infrastructure made up of pipes, poles, dams, and substations as well as technology upgrades. These expenses are necessary to ensure that we can continue to provide our customers with safe, efficient, and reliable power. We're managing these expenses on behalf of our customers because we understand the need to minimize the cost impact that our customers experience,” said Avista President and CEO Heather Rosentrater.
“Keeping costs affordable for customers is at the forefront of our decisions. We aim to save our customers money in a variety of ways, including implementing intentional purchase plans, offering natural gas for the same price we pay, and continuing to be thoughtful in how we prepare our generation mix. Even with these efforts in place, the costs to purchase power can and do fluctuate, and we need to continue to invest hundreds of millions of dollars in our system every year to continue providing safe, reliable service for our customers now and into the future,” Rosentrater said.
Avista’s Requests
The proposal is a two-year rate plan, with new rates taking effect in Sept. 2025 and Sept. 2026. This plan would create a stay-out period where Avista would not file a new general rate case for new rates to be effective before Sept. 2027. This would provide customers with some predictability in their expected future energy prices.
If approved, the electric general rate request is designed to increase annual base revenues by $43.0 million (or 14.4% on a billed basis) effective on Sept. 1, 2025, and $17.7 million (or 5.2% on a billed basis) effective on Sept. 1, 2026.
If approved, the natural gas general rate request is designed to increase annual revenues by $8.8 million (or 10.3% on a billed basis) effective on Sept. 1, 2025, and $1.0 million (or 1.0% on a billed basis) effective on Sept. 1, 2026.
The electric and natural gas requests are based on a proposed rate of return (ROR) of 7.68%, with a common equity ratio (CER) of 50%, and a 10.4% return on equity (ROE).
Infrastructure Investments
Avista needs to continue to replace infrastructure that has reached the end of its useful life, as well as respond to the need for reliability and technology investments required to build the integrated energy services grid that will take us into the future. Among the projects included in today’s filing are:
- Ongoing management, inspection, and replacement of 240,000 electric distribution wood poles through Avista’s wood pole management program to ensure poles and the equipment on them support the company’s ability to provide customers with safe and reliable power.
-
Continued investment in Avista’s Wildfire Resiliency Plan, which outlines substantial steps that Avista has taken to guard against the growing threat of wildfires including grid hardening, enhanced vegetation management, and other industry-leading best practice measures.
- The ongoing project to systematically replace portions of natural gas distribution pipe in Avista’s service area that were installed before 1987, as well as replacement of other natural gas service equipment to strengthen the integrity, safety, and reliability of the system.
- Technology upgrades that support necessary business processes and operational efficiencies that allow Avista to effectively manage the utility and serve customers.
Idaho Residential Customer Bills
Electric
Effective Sept. 2025:
Residential electric customers in Idaho using an average of 939 kilowatt hours per month could expect to see a total billed increase of 14.7% or $15.36 for a revised monthly bill of $119.66 from $104.30. The proposed monthly increase includes a $5 per month proposed increase in the basic charge to a level of $25.00 per month.
Effective Sept. 2026: Residential electric customers in Idaho using an average of 939 kilowatt hours per month could expect to see a total billed increase of 5.3% or $6.36 for a revised monthly bill of $126.02 from $119.66. The proposed monthly increase includes a $5 per month proposed increase in the basic charge to a level of $30.00 per month.
Natural gas
Effective Sept. 2025: Residential natural gas customers in Idaho using an average of 66 therms per month could expect to see a total billed increase of 10.4% or $6.29 for a revised monthly bill of $66.92 from $60.63.
Effective Sept. 2026: Residential natural gas customers in Idaho using an average of 66 therms per month could expect to see a total billed increase of 1.3% or $0.88 for a revised monthly bill of $67.80 from $66.92.
Proposed Changes by Service Schedule
The requested electric increase by service schedule is as follows:
Rate Schedule |
Sept. 2025
Billing Increase |
Sept. 2026
Billing Increase |
Residential Service – Schedule 1 | 14.7% | 5.3% |
General Service - Schedules 11/12 | 14.2% | 5.1% |
Large General Service - Schedules 21/22 | 14.1% | 5.1% |
Extra Large General Service - Schedule 25 | 14.3% | 5.2% |
Extra Large General Service - Schedule 25P | 14.4% | 5.2% |
Pumping Service - Schedules 31/32 | 14.1% | 5.1% |
Street & Area Lights - Schedules 41 – 49 | 13.4% | 4.9% |
Total | 14.4 % | 5.2 % |
The requested natural gas increase by service schedule is as follows:
Rate Schedule |
Sept. 2025
Billing Increase |
Sept. 2026
Billing Increase |
General Service Schedule 101 | 10.3% | 1.3% |
Large General Service Schedules 111/112 | 10.3% | 0.0% |
Interrupt. Sales Service Schedules 131/132 | 0.0% | 0.0% |
Transportation Service Schedule 146 | 10.3% | 0.0% |
Total | 10.3 % | 1.0 % |
The actual percentage increase for electric and natural gas customers will vary by customer rate group and depend on how much energy a customer uses.
Customer Resources
To assist customers in managing their energy bills, Avista offers services for customers such as comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation Services (CARES), which provide assistance to special-needs customers through referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista provides energy efficiency and outreach programs that include rebates and incentives as well as tips and resources to help customers manage their energy use and energy bills. Customers can learn more at
www.myavista.com
.
Rate Application Procedure and Additional Information
Avista’s application is a proposal, subject to public review and a Commission decision. Copies of the applications are available for public review at the offices of both the Commission and Avista and on the Commission’s website (
www.puc.idaho.gov
). Customers may file with the Commission written comments related to the Company’s filing. Customers may also subscribe to the Commission’s RSS feed (
https://puc.idaho.gov/RssPage
) to receive periodic updates via e-mail about the case. Copies of the rate filing is also available on our website,
www.myavista.com/rates
.
The Commission will begin a comprehensive review of Avista’s application and will seek public input. If you would like to submit comments on the proposed increase (Case No. AVU-E-25-01 and AVU-G--01), you can do so by going to the Commission website or mailing comments to:
Idaho Public Utilities Commission
P. O. Box 83720
Boise, ID 83720-0074
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 420,000 customers and natural gas to 381,000 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 18,000 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 Annual Report on Form 10-K for the year ended Dec. 31, 2023 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
SOURCE: Avista Corporation
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