Avista Receives Approval for New Electric and Natural Gas Rates Effective September 2025 and 2026

Avista's new electric and natural gas rates, effective Sept. 1, 2025, and 2026, aim to adjust revenues accordingly.

Quiver AI Summary

Avista Corporation announced that the Idaho Public Utilities Commission has approved a settlement agreement for the company's electric and natural gas rate cases, with new electric rates set to take effect on September 1, 2025, and September 1, 2026. The approved electric rate changes will increase annual base electric revenues by $19.5 million (6.3%) in 2025, and by $14.7 million (4.5%) in 2026. For natural gas, rates will increase by $4.6 million (9.2%) in 2025, but will see a slight decrease of $0.2 million (0.4%) in 2026. The settlement also outlines a return on equity of 9.6% and a rate of return on rate base of 7.28%. Avista’s President and CEO, Heather Rosentrater, stated that the decision ensures the rates remain fair for customers and supports the company’s infrastructure investments. Avista serves over 145,000 electric and 93,000 natural gas customers in Idaho.

Potential Positives

Approval of new rate structure supports Avista's financial stability and is projected to increase annual base electric revenues significantly, enhancing profitability.
The settlement includes a 9.6% return on equity, which is beneficial for attracting investment and supporting long-term capital projects.
The company reinforces its commitment to maintaining infrastructure reliability with these rate adjustments, which can improve customer satisfaction and loyalty.
Positive outcome reflects effective collaboration and agreement among multiple stakeholders, showcasing Avista’s ability to navigate regulatory processes successfully.

Potential Negatives

Approval of rate increases may lead to customer dissatisfaction, as electric rates will rise by 6.3% and natural gas rates by 9.2% in the coming years.
Future revenue changes include a slight reduction in natural gas base revenues by 0.4% effective Sept. 1, 2026, which could indicate potential instability in the natural gas market.
The reliance on a 9.6% return on equity may raise concerns among investors about the company's long-term profitability and financial health in a competitive energy market.

FAQ

What are the new electric rates approved for Avista?

The new electric rates approved for Avista will increase annual base electric revenues by $19.5 million (6.3%) on Sept. 1, 2025, and by $14.7 million (4.5%) on Sept. 1, 2026.

When do the new natural gas rates take effect?

The new natural gas rates for Avista take effect on Sept. 1, 2025, with an increase of $4.6 million (9.2%), and a reduction of $0.2 million (0.4%) on Sept. 1, 2026.

How many customers does Avista serve in Idaho?

Avista serves more than 145,000 electric customers and 93,000 natural gas customers in Idaho.

What is Avista's approach to ensuring fair rates?

Avista aims to keep new rates fair and reasonable for customers, the company, and shareholders, supporting capital investments in infrastructure.

Where can I find more information about Avista Corporation?

For more information about Avista Corporation, visit their website at www.avistacorp.com.

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

New rates take effect on Sept. 1, 2025 and Sept. 1, 2026.

SPOKANE, Wash., Aug. 29, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE:AVA) received approval from the Idaho Public Utilities Commission (IPUC or Commission) of the all-party, all issues settlement agreement that was filed on June 9, 2025, concluding the Company’s electric and natural gas general rate cases. New electric rates take effect Sept. 1, 2025 and Sept 1, 2026.

The approved rates are designed to increase annual base electric revenues by $19.5 million or 6.3%, effective Sept. 1, 2025, and by $14.7 million or 4.5%, effective Sept. 1, 2026. For natural gas, the settlement agreement is designed to increase annual base natural gas revenues by $4.6 million or 9.2%, effective Sept. 1, 2025, and reduce base revenues by $0.2 million or 0.4%, effective Sept. 1, 2026.

The settlement capital structure includes a 9.6% return on equity (ROE) with a common equity ratio of 50% and a rate of return (ROR) on rate base of 7.28%.

“The Commission’s decision keeps new rates fair and reasonable for our Idaho customers, the Company, and our shareholders,” said Heather Rosentrater, Avista President and CEO. “This constructive outcome supports Avista's efforts to make key capital investments that allow us to earn a fair return in Idaho as we invest in and maintain our infrastructure to continue providing the reliable energy our customers expect,” Rosentrater added.

Avista serves more than 145,000 electric and 93,000 natural gas customers in Idaho.

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 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, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

SOURCE: Avista Corporation

Contact:
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