Avista receives approval of all-party, all issues settlement in Idaho general rate cases

Rhea-AI Summary

Avista (NYSE:AVA) has received approval from the Idaho Public Utilities Commission for its all-party settlement agreement regarding electric and natural gas rate cases. The approved rates will increase annual base electric revenues by $19.5 million (6.3%) from Sept. 1, 2025, and by $14.7 million (4.5%) from Sept. 1, 2026.

For natural gas, revenues will increase by $4.6 million (9.2%) from Sept. 1, 2025, followed by a slight reduction of $0.2 million (0.4%) from Sept. 1, 2026. The settlement includes a 9.6% return on equity with a 50% common equity ratio and a 7.28% rate of return on rate base. Avista serves over 145,000 electric and 93,000 natural gas customers in Idaho.

Positive

• Approval secured for rate increases in both electric and natural gas segments
• Significant revenue increase of $19.5M (6.3%) for electric and $4.6M (9.2%) for natural gas in 2025
• Favorable 9.6% return on equity with 50% common equity ratio
• All-party settlement agreement indicates broad stakeholder support

Negative

• Rate increases may impact customer affordability
• Natural gas segment faces revenue reduction of 0.4% in 2026

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:                                                                        
Media: Lena Funston (509) 495-8090 lena.funston@avistacorp.com
Investors: Stacey Walters (509) 495-2046, stacey.walters@avistacorp.com
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FAQ

What rate increases did Avista (AVA) receive approval for in Idaho?

Avista received approval for electric rate increases of 6.3% ($19.5M) effective Sept. 1, 2025, and 4.5% ($14.7M) effective Sept. 1, 2026. For natural gas, a 9.2% ($4.6M) increase in 2025 and a 0.4% ($0.2M) decrease in 2026.

What is Avista's approved return on equity (ROE) in the Idaho rate case?

The settlement approved a 9.6% return on equity with a common equity ratio of 50% and a rate of return on rate base of 7.28%.

How many customers does Avista serve in Idaho?

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

When will Avista's new utility rates take effect in Idaho?

The new rates will take effect in two phases: the first on September 1, 2025, and the second on September 1, 2026.

What is the total revenue increase Avista will receive from the Idaho rate case?

In total, Avista will receive a $19.5M increase in electric revenue and $4.6M increase in natural gas revenue in 2025, followed by a $14.7M increase in electric and $0.2M decrease in gas revenue in 2026.