Avista reaches all-party, all issues settlement in Oregon general rate case

Rhea-AI Summary

Avista (NYSE: AVA) has reached a comprehensive settlement agreement in its Oregon natural gas general rate case with multiple parties including the Public Utility Commission of Oregon Staff and Oregon Citizens' Utility Board. The settlement, pending commission approval, would result in a $4.2 million base revenue increase, reduced from the original $7.8 million request.

The agreement features a 7.219% rate of return with a 50% common equity ratio and 9.5% return on equity. Through accelerated customer tax credits over three years, the overall customer impact would be to 2.0%. For residential customers using an average of 48 therms monthly, this translates to a $1.36 monthly increase, raising bills from $69.55 to $70.91 effective September 1, 2025.

The settlement affects Avista's approximately 107,000 Oregon customers and includes provisions for customer assistance through bill discount programs and energy efficiency initiatives.

Positive

• Settlement agreement reached with all parties, reducing regulatory uncertainty
• Secured $4.2 million base revenue increase
• Established favorable 9.5% return on equity
• Customer impact minimized to 2.0% through tax credit acceleration

Negative

• Revenue increase approved ($4.2M) is 46% lower than originally requested ($7.8M)
• Rate increase may impact customer affordability in challenging economic times

If approved, new rates would take effect beginning September 1, 2025

SPOKANE, Wash., March 28, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA), the Staff of the Public Utility Commission of Oregon (Commission), the Oregon Citizens’ Utility Board (“CUB”), Alliance of Western Energy Consumers (“AWEC”), and the joint intervenor Climate Solutions/Green Energy Institute at Lewis & Clark Law School, parties to the Company’s natural gas general rate case, have reached a settlement agreement that has been submitted to the Commission for its consideration, and which would resolve all issues in the proceeding.

If approved, this settlement would result in a base revenue increase of $4.2 million, as compared to Avista’s original request of $7.8 million. The agreed-upon revenue requirement is predicated on a proposed rate of return of 7.219% with a common equity ratio of 50% and a 9.5% return on equity. As a part of the settlement, the parties agreed to accelerate the use of certain customer tax credits to partially mitigate the billed impact to customers, over a three-year period. As a result, the overall increase customers would experience is 2.0%.

"Our goal is to provide safe, reliable energy for our customers, and timely recovery of our costs allows us to maintain the infrastructure crucial to delivering on this goal. We are pleased with this settlement agreement and believe that it provides a fair outcome for our customers and shareholders alike," said Heather Rosentrater, Avista President and CEO.

Residential Customer Bills
If the settlement is approved, a residential natural gas customer using an average of 48 therms per month, would see a $1.36 per month increase, or 2.0 percent, from a $69.55 bill for a revised monthly bill of $70.91 effective Sept. 1, 2025.

2025 Natural Gas Revenue Impact by Rate Schedule
Rate Schedule	Description	2025 Billing Change
Single-Family Residential	Schedule 410	2.0%
Multi-Family Residential	Schedule 411	-0.7%
General Service	Schedule 420	2.5%
Large General Service	Schedules 424 & 425	1.2%
Interruptible Service	Schedule 439 & 440	0.7%
Seasonal Service	Schedule 444	0.8%
Transportation Service	Schedule 456	1.6%
Total		2.0%

The actual percentage rate change will vary by customer rate schedule and will depend on how much energy a customer uses.

Avista serves approximately 107,000 customers in Oregon.

Customer Resources
More Oregon customers than ever before now qualify for our monthly bill discount program. Discounts are based on household size and annual income and last for two years. With higher income limits than other programs, more people are eligible. Plus, participants can still receive other energy assistance and services from local community action agencies. Applying is quick and easy with no paperwork required. Visit www.myavista.com/myenergydiscountOR to learn more. Avista also provides support to customer assistance funds such as Project Share. And since 2017, we have partnered with the Energy Trust of Oregon to provide energy efficiency programs, including rebates and incentives, which help customers manage their energy use. To learn more, visit www.myavista.com/assistance.

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 the operating division that provides electric service to 422,000 customers and natural gas to 383,000 customers. Its 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. Alaska Energy and Resources Company is an Avista subsidiary that provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska, through its subsidiary Alaska Electric Light and Power Company. Avista 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.

Contact:
Media: Lena Funston (509) 495-8090, lena.funston@avistacorp.com
Investors: Stacey Wenz (509) 495-2046, stacy.wenz@avistacorp.com
Avista 24/7 Media Access (509) 495-4174

FAQ

What is the expected rate increase for Avista (AVA) customers in Oregon from September 2025?

Avista customers will see a 2.0% rate increase, with residential customers using 48 therms monthly experiencing a $1.36 increase from $69.55 to $70.91.

How much did Avista (AVA) reduce its original rate increase request in the Oregon settlement?

Avista reduced its original rate increase request from $7.8 million to $4.2 million in the settlement agreement.

What is the agreed-upon rate of return for Avista (AVA) in the Oregon settlement?

The settlement establishes a 7.219% rate of return with a 50% common equity ratio and 9.5% return on equity.

How many customers will be affected by Avista's (AVA) Oregon rate increase in 2025?

The rate increase will affect approximately 107,000 Avista customers in Oregon.

When will Avista's (AVA) new Oregon rates take effect if approved?

The new rates would take effect beginning September 1, 2025, if approved by the Commission.