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Avista Makes Annual Price Adjustment Filings in Idaho

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Avista (NYSE: AVA) has filed annual rate adjustment requests with the Idaho Public Utilities Commission that would affect customer prices starting late 2025. The proposals include a 2.0% increase ($6.3 million) in electric revenues effective October 1, 2025, and a 10.6% decrease ($9.5 million) in natural gas revenues effective November 1, 2025.

For residential customers, these changes would result in an average monthly electric bill increase of $3.43 (3.3%) for those using 939 kilowatt hours, while natural gas customers using 66 therms would see a decrease of $6.18 (9.5%). The adjustments include changes to Power Cost Adjustment (PCA), Fixed Cost Adjustment (FCA), Energy Efficiency programs, and the Bonneville Power Administration Residential Exchange Program.

Avista (NYSE: AVA) ha presentato richieste di adeguamento tariffario annuale alla Commissione per le Utilities Pubbliche dell'Idaho, che influenzeranno i prezzi per i clienti a partire dalla fine del 2025. Le proposte prevedono un aumento del 2,0% ($6,3 milioni) nelle entrate elettriche a partire dal 1° ottobre 2025 e una riduzione del 10,6% ($9,5 milioni) nelle entrate da gas naturale a partire dal 1° novembre 2025.

Per i clienti residenziali, questi cambiamenti comporterebbero un aumento medio della bolletta elettrica mensile di $3,43 (3,3%) per chi consuma 939 kilowattora, mentre i clienti del gas naturale che utilizzano 66 therm vedrebbero una diminuzione di $6,18 (9,5%). Gli aggiustamenti includono modifiche al Power Cost Adjustment (PCA), al Fixed Cost Adjustment (FCA), ai programmi di Efficienza Energetica e al Programma di Scambio Residenziale della Bonneville Power Administration.

Avista (NYSE: AVA) ha presentado solicitudes de ajuste anual de tarifas ante la Comisión de Servicios Públicos de Idaho, que afectarían los precios para los clientes a partir de finales de 2025. Las propuestas incluyen un aumento del 2,0% ($6,3 millones) en ingresos eléctricos con vigencia desde el 1 de octubre de 2025, y una reducción del 10,6% ($9,5 millones) en ingresos por gas natural a partir del 1 de noviembre de 2025.

Para los clientes residenciales, estos cambios resultarían en un aumento promedio mensual de la factura eléctrica de $3,43 (3,3%) para quienes consumen 939 kilovatios-hora, mientras que los clientes de gas natural que usan 66 therms verían una disminución de $6,18 (9,5%). Los ajustes incluyen cambios en el Power Cost Adjustment (PCA), Fixed Cost Adjustment (FCA), programas de Eficiencia Energética y el Programa de Intercambio Residencial de la Bonneville Power Administration.

Avista (NYSE: AVA)는 2025년 말부터 고객 요금에 영향을 미칠 연간 요금 조정 요청서를 아이다호 공공유틸리티 위원회에 제출했습니다. 제안 내용에는 2025년 10월 1일부터 적용되는 전기 수익 2.0% 증가($630만)와 2025년 11월 1일부터 적용되는 천연가스 수익 10.6% 감소($950만)가 포함되어 있습니다.

주거용 고객의 경우, 939킬로와트시를 사용하는 전기 고객은 월평균 전기요금이 $3.43 (3.3%) 증가하며, 66 therm를 사용하는 천연가스 고객은 $6.18 (9.5%) 감소하게 됩니다. 조정 내용에는 전력비 조정(Power Cost Adjustment, PCA), 고정비 조정(Fixed Cost Adjustment, FCA), 에너지 효율 프로그램 및 보네빌 전력관리청 주거 교환 프로그램 변경사항이 포함되어 있습니다.

Avista (NYSE : AVA) a déposé des demandes d'ajustement annuel des tarifs auprès de la Commission des services publics de l'Idaho, qui affecteraient les prix pour les clients à partir de la fin 2025. Les propositions incluent une augmentation de 2,0 % ($6,3 millions) des revenus électriques à compter du 1er octobre 2025, et une baisse de 10,6 % ($9,5 millions) des revenus du gaz naturel à compter du 1er novembre 2025.

Pour les clients résidentiels, ces changements entraîneraient une augmentation moyenne de la facture électrique mensuelle de 3,43 $ (3,3 %) pour ceux consommant 939 kilowattheures, tandis que les clients du gaz naturel utilisant 66 therms bénéficieraient d'une diminution de 6,18 $ (9,5 %). Les ajustements comprennent des modifications du Power Cost Adjustment (PCA), du Fixed Cost Adjustment (FCA), des programmes d'efficacité énergétique et du Residential Exchange Program de la Bonneville Power Administration.

Avista (NYSE: AVA) hat bei der Idaho Public Utilities Commission Anträge auf jährliche Tarifänderungen eingereicht, die die Kundenpreise ab Ende 2025 beeinflussen würden. Die Vorschläge beinhalten eine 2,0%ige Erhöhung der Stromerlöse ($6,3 Millionen) ab dem 1. Oktober 2025 sowie eine 10,6%ige Senkung der Erdgaserlöse ($9,5 Millionen) ab dem 1. November 2025.

Für Privatkunden würden diese Änderungen eine durchschnittliche monatliche Stromrechnungserhöhung von $3,43 (3,3%) bei einem Verbrauch von 939 Kilowattstunden bedeuten, während Erdgasverbraucher mit 66 Therms eine Senkung von $6,18 (9,5%) sehen würden. Die Anpassungen umfassen Änderungen beim Power Cost Adjustment (PCA), Fixed Cost Adjustment (FCA), Energieeffizienzprogrammen und dem Residential Exchange Program der Bonneville Power Administration.

Positive
  • Natural gas customers will see a significant 10.6% decrease in rates
  • Power supply costs were lower than retail rates due to reduced wholesale prices
  • Energy efficiency programs continue to provide financial incentives for cost-effective measures
Negative
  • Electric customers face a 2.0% rate increase
  • Residential electric customers will see a 3.3% increase in monthly bills
  • Lower benefits from BPA's Residential Exchange Program for qualifying customers

Insights

Avista's Idaho rate adjustments balance revenue impacts across divisions, maintaining earnings neutrality despite customer bill changes.

Avista's latest regulatory filings with the Idaho Public Utilities Commission represent a common annual adjustment process that will not affect the company's earnings despite changing customer rates. The electric side shows a $6.3 million (2.0%) revenue increase effective October 2025, while natural gas revenues will decrease by $9.5 million (10.6%) starting November 2025.

These adjustments are primarily driven by several key mechanisms:

  • The Power Cost Adjustment reflects lower power supply costs than currently built into rates, resulting in a 0.6% revenue decrease
  • The Fixed Cost Adjustment mechanisms for both electric and gas divisions help decouple revenues from consumption, addressing revenue shortfalls from conservation and weather variations
  • The decrease in natural gas rates is significantly influenced by the Purchased Gas Cost Adjustment, reflecting lower wholesale natural gas prices during the past winter

From a regulatory perspective, these are routine filings that demonstrate Avista's effective use of established rate adjustment mechanisms. The residential customer impact is mixed – electric bills will increase by $3.43 monthly (3.3%) while natural gas bills will decrease by $6.18 monthly (9.5%). Important to note is that these changes represent pass-through costs or regulatory adjustments rather than changes to Avista's underlying profitability.

While rate adjustments can sometimes create customer satisfaction challenges, the overall impact appears balanced, with the substantial natural gas decrease potentially offsetting concerns about the electric increase. These routine regulatory filings indicate normal business operations rather than any fundamental change to Avista's financial outlook or strategy.

Requests would result in higher electric prices effective Oct. 1, 2025 and lower natural gas prices effective Nov. 1, 2025.

SPOKANE, Wash., July 31, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA) has made annual rate adjustment filings with the Idaho Public Utilities Commission (IPUC or Commission) that, if approved, are designed to increase overall electric revenues by approximately $6.3 million or 2.0% effective Oct. 1, 2025 and decrease overall natural gas revenue by approximately $9.5 million or 10.6% effective Nov. 1, 2025. These annual filings have no impact on Avista’s earnings.

Electric Adjustment Filings
Four annual electric adjustments were filed, that if approved, are designed to change overall electric revenues effective Oct. 1, 2025 as follows:

  1. Power Cost Adjustment (PCA): a decrease of approximately $1.8 million or 0.6%
  2. Fixed Cost Adjustment (FCA): an increase of approximately $2.6 million or 0.8%
  3. Electric Energy Efficiency: an increase of approximately $3.6 million or 1.2%
  4. Bonneville Power Administration Residential Exchange (ResEx) Program: an increase of approximately $1.9 million or 0.6%

Natural Gas Adjustment Filings
Three annual natural gas adjustments were filed, that if approved, are designed to change overall natural gas revenues effective Nov. 1, 2025 as follows:

  1. Purchased Gas Cost Adjustment (PGA): a decrease of approximately $6.5 million or 7.2%
  2. Fixed Cost Adjustment (FCA): an increase of approximately $80 thousand or 0.1%
  3. Electric Energy Efficiency: a decrease of approximately $3.1 million or 3.5%

Customer Bills Resulting from these Filings
If the electric PCA and FCA filings are approved, residential electric customers in Idaho using an average of 939 kilowatt hours per month would see their monthly bills increase from $104.30 to $107.73, an increase of $3.43 per month, or approximately 3.3%. The proposed electric rate change would be effective Oct. 1, 2025.

The net effect, on an annual revenue basis, for the requested electric rate changes by rate schedule are as follows:

Residential Service - Schedule 13.1% 
General Service - Schedules 11 & 120.5% 
Large General Service - Schedules 21 & 222.1% 
Extra Large General Service - Schedule 250.2% 
Extra Large General Service - Schedule 25P0.0% 
Pumping Service - Schedules 31 & 321.3% 
Street & Area Lights - Schedules 41-491.0% 
Overall2.0% 
   

If the natural gas PGA, Energy Efficiency and FCA filings are approved, residential natural gas customers in Idaho using an average of 66 therms per month would see their monthly bills decrease from $64.74 to $58.56, a decrease of $6.18 per month, or approximately 9.5%. The proposed natural gas rate change would be effective Nov. 1, 2025.

The net effect, on a revenue basis, for the requested natural gas rate change by rate schedule are as follows:        

General Service - Schedule 101-9.9% 
Large General Service - Schedules 111 & 112-14.1% 
Interruptible Service - Schedules 131 & 1320.0% 
Transportation Service - Schedule 1460.0% 
Overall-10.6% 
   

Power Cost Adjustment (PCA)
The PCA is an annual rate adjustment made to reflect the difference between the actual cost of generating and purchasing electric power to serve customers and the cost currently included in customer rates. Over the last year, power supply costs were lower than those included in retail rates primarily due to lower wholesale electric and natural gas prices.

Fixed Cost Adjustment (FCA)
The electric and natural gas FCA is a mechanism designed to break the link between a utility’s revenues and customers’ energy usage. Avista’s actual revenue, based on kilowatt hour or therm sales, will vary, up or down, from the level included in a general rate case and approved by the Commission. This could be caused by changes in weather, energy conservation or other factors. Under the FCA, Avista’s revenues are adjusted each month based on the number of customers. The annual difference between revenues based on sales and the number of customers is surcharged or rebated to customers beginning in the following year. The proposed FCA rate adjustments are primarily driven by variations in customer usage related to weather and savings from participating in efficiency programs. The FCA mechanisms do not apply to Avista’s Electric Extra Large General and Street Lighting Service Schedules, nor to its Natural Gas Interruptible and Transportation Service Schedules.

Energy Efficiency Adjustment
The Energy Efficiency Adjustment is related to the funding of Avista’s electric energy efficiency programs. This adjustment aligns the amount that is collected in customer rates with the actual costs to operate the programs. Avista’s energy efficiency programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency measures. The rate changes proposed reflect the required level of funding needed to operate the programs in the coming year.

Residential Exchange Adjustment
The Residential Exchange Program provides a share of the benefits of the federal Columbia River power system to the residential and small farm customers of the investor-owned utilities in the Pacific Northwest, including Avista. Avista applies the benefits it receives, which typically fluctuate from year to year, to customers as a credit in their monthly electric rates. The benefit Avista will receive from BPA starting in October 2025 will result in a lower level of benefits than is currently being passed through to qualifying customers.

Purchased Gas Cost Adjustment (PGA)

PGA requests are typically filed annually to balance the actual cost of wholesale natural gas purchased by Avista to serve customers with the amount presently included in customer’s rates. Avista does not make a profit on, or markup, the wholesale cost of natural gas. PGAs ensure customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate throughout the year. These rate adjustments are driven primarily by a reduction in the current surcharge amortization rate and lower wholesale natural gas prices observed during this past winter, which were below the amounts included in rates.

Rate Application Procedure

Avista’s applications are proposals, 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 Avista’s filings. Customers may also subscribe to the Commission’s RSS feed (http://www.puc.idaho.gov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies of rate filings are also available on Avista’s website at www.myavista.com/rates.

If you would like to submit comments on the proposed rate change, 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 423,000 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 and the Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2025, and its Annual Report on Form 10-K for the year ended Dec. 31, 2024.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE: Avista Corporation

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Contact:                                                        

Media: Lena Funston (509) 495-8090 lena.funston@avistacorp.com
Investors: Stacey Walters (509) 495-2046 stacey.walters@avistacorp.com
Avista 24/7 Media Access (509) 495-4174  


FAQ

How much will Avista's electric rates increase in Idaho from October 2025?

Avista's electric revenues will increase by 2.0% ($6.3 million), with residential customers seeing an average monthly bill increase of $3.43 (3.3%) for those using 939 kilowatt hours.

How much will Avista's natural gas rates decrease in Idaho from November 2025?

Avista's natural gas revenues will decrease by 10.6% ($9.5 million), with residential customers seeing an average monthly bill reduction of $6.18 (9.5%) for those using 66 therms.

What are the main components of Avista's (AVA) 2025 rate adjustment in Idaho?

The adjustment includes changes to the Power Cost Adjustment (PCA), Fixed Cost Adjustment (FCA), Energy Efficiency programs, and Bonneville Power Administration Residential Exchange Program.

How do these rate changes affect Avista's (AVA) earnings?

These annual rate adjustment filings have no impact on Avista's earnings.

How can Idaho customers submit comments on Avista's proposed rate changes?

Customers can submit comments through the Idaho Public Utilities Commission website or mail them to the Commission at P.O. Box 83720, Boise, ID 83720-0074.
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