Avista electric and natural gas rates to increase

SPOKANE — Avista Corporation has announced changes to electric and natural gas rates following the conclusion of its general rate cases filed in January 2024.

The Washington Utilities and Transportation Commission (WUTC) approved a two-year rate plan set to take effect on Jan. 1, 2025, and Jan. 1, 2026.

For electric operations, the approved rates include a 0.1 percent, or $0.8 million, increase in base revenue for the first year and an 11.6 percent, or $68.9 million, increase in the second year. For natural gas operations, rates will rise by 11.2 percent, or $14.2 million, in the first year and 2.8 percent, or $4.0 million, in the second year.

However, Avista has raised concerns about a potential calculation error affecting power supply expenses for electric Rate Year 1.

If corrected, the revenue increase for Rate Year 1 would be adjusted to approximately $12 million, resulting in a base percentage increase of 2.0 percent.

Avista has brought this matter to the Commission’s attention for resolution.

The approved rate plan includes a rate of return (ROR) of 7.32 percent, a common equity ratio of 48.5 percent, and a 9.8 percent return on equity (ROE).

The Commission recognized the company’s operational challenges and investment needs but did not support changes to the Energy Recovery Mechanism (ERM) mechanics. However, it supported mechanisms like the Wildfire and Insurance balancing accounts and decoupling.

Avista plans to release its 2025 earnings guidance during its fourth-quarter 2024 earnings call in February 2025.