Media contact: 360-664-1116 or media@utc.wa.gov
Docket numbers: UG-240006 and UG-240007 (Consolidated)
Customer rates to increase incrementally over next two years
LACEY, Wash. - On Friday, Dec. 20, state regulators approved gradual rate increases for customers of Avista Utilities over the next two years.
This marks the second time in three years that the Utilities and Transportation Commission has approved a rate increase under a law passed in 2021. This law requires utilities to submit plans for multi-year rate increases.
Avista's electric revenue will increase by $11.9 million or 2.01% by the end of the year and then by $44.4 million or 7.51% on Dec. 21, 2025. For natural gas, Avista will see an increase of $14.2 million or 11.15% by the end of the year and an additional $4 million or 2.81% this year, on Dec. 21, 2025. Residential customers will also see a $1 increase in their basic monthly charge.
The amount is significantly less than what the company originally requested. Initially, Avista proposed higher increases of $77.1 million or 13.0% for electric revenue in the first year and $53.7 million or 11.7% in the second year. For natural gas, the company requested $17.3 million or 13.6% in the first year and $4.6 million or 3.2% in the second year.
The typical residential electric customer using 945 kWh of energy per month can expect an increase of $2 or 1.7% per month in 2025 for an average monthly bill of $116.39 and an additional $5.07 or 4.4% increase per month in 2026 for an average monthly bill of $121.46.
The typical natural gas residential customer using 66 therms per month can expect an increase of $4.85 or 5% per month in 2025 for an average monthly bill of $101.19, and an additional $1.32 or 1.3% per month in 2026 for an average monthly bill of $102.21.
The commission declined to approve certain costs 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.
The commission’s decision supports the Clean Energy Transformation Act and the Climate Commitment Act goals, ensuring fairness for customers and encouraging utilities to consider how their actions affect highly impacted customers. This approach aims to promote the use of renewable energy and reduce emissions.
Spokane-based Avista provides electricity and natural gas to customers across 30,000 square miles in eastern Washington, northern Idaho, and parts of southern and eastern Oregon.
The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide equitable, safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit
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Editor’s note: You can find the final order and all other documents related to this case on our website.