Avista rate increases approved by regulators

Avista Utilities customers can expect higher bills for electricity and natural gas starting on Wednesday, but those increases won’t be as high as the company had requested.

Earlier this month, the Washington Utilities and Transportation Commission approved rate increases for Avista, which supplies electricity to more than 250,000 Washington customers and natural gas to more than 170,000.

The commission approved a 2% increase for electricity which is expected to raise $11.9 million more for the company in 2025, and a 7.5% increase in 2026 to raise an extra $44.4 million.

Avista had hoped to increase electricity revenue in 2025 by $77.1 million, or 13%, and an additional $53.7 million, or 11.7% increase, in 2026.

Customer changes

Starting on Wednesday, the new increase will add about $2 to the average residential electricity bill. An increase of about 1.7% per month in 2025 will boost the typical monthly bill to about $116.39, according to the UTC.

That increase will get steeper in 2026, adding about $5.07 per month, or an average of 4.4%, to raise the average monthly electricity bill to about $121.46.

For comparison, the average monthly electricity bill for a residential Avista customer was $85.52 a month in December 2022.

For gas customers, the news was a bit more expensive.

As of Wednesday, the monthly bill of the average residential natural gas customer will increase by $4.87, or about 5% more, to boost the typical monthly bill to about $101.19.

Then in 2026, the average monthly gas bill will go up about $1.02, or 1.3% more to an average bill of $102.21 a month.

For comparison, before rate increases kicked in for December 2022, the average monthly residential natural gas bill was about $64.86.

According to its news release, the commission declined to approve certain costs Avista had included for the Colstrip generating plant in Montana, as well as a “forecast error adjustment” that would allow the company to recover costs not accurately forecasted by the company. That adjustment would have raised rates in the first year by $19.1 million.

Avista noted the difficulties of higher prices for customers in a statement.

“We recognize that some customers are struggling right now, so we have ways to assist,” the statement read. It listed some options for customers who need to manage there energy costs, including programs offering grants and other financial help.

Outgoing Avista Corp. CEO Dennis Vermillion had good things to say about the rate adjustment.

In a news release, about the UTC decision, Vermillion is quoted as saying: “We are pleased with the commission’s constructive decision, which provides a positive outcome for both our customers and our shareholders.”

He wrote that Washington electric customers will receive the benefit of Avista’s reduced power supply cost in 2025.

“The decision reflects the Commission’s recognition of Avista’s investment in utility infrastructure to benefit our customers, and that our operating expenses are increasing at a faster pace than revenues,” he wrote. “The outcome provides for necessary recovery of the costs to serve our customers and continued investment in our systems.”