Avista Rates - FY27.docx

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# Avista Rates - FY27.docx
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August 29, 2025

FAQs: Avista receives approval of all-party, all issues settlement in Idaho general rate case

Overview of the filing: 
Avista 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%. 

In June 2025, Avista, the Staff of the Idaho Public Utilities Commission, Clearwater Paper Corporation, Idaho Forest Group, LLC and Walmart Inc., parties to the Company’s electric and natural gas general rate cases, reached a settlement agreement that was submitted to the Idaho Public Utilities Commission for its consideration to resolve all issues in the proceeding.  


Where: All natural gas and electric customers in ID.

When will customer bills see the change: September 1, 2025 and September 1, 2026.

Background for this filing: 
Avista’s original request was designed to increase annual base revenues by $43.0 million (or 14.4% on a billed basis) effective on Sept. 1, 2025, and $17.7 million (or 5.2% on a billed basis) effective on Sept. 1, 2026. For natural gas, the rate request was designed to increase annual revenues by $8.8 million (or 10.3% on a billed basis) effective on Sept. 1, 2025, and $1.0 million (or 1.0% on a billed basis) effective on Sept. 1, 2026. 

The electric and natural gas requests were based on a proposed rate of return (ROR) on rate base of 7.68% with a common equity ratio of 50% and a 10.4% return on equity (ROE). 

Residential customer bills: A residential electric customer using an average of 939 kilowatt hours per month will see a 6.7% billed increase of $6.95 per month for a revised monthly bill of $111.25 effective Sept. 1, 2025, and a 4.7% billed increase of $5.22 per month for a revised monthly bill of $116.47 effective Sept. 1, 2026. 
A residential natural gas customer using an average of 66 therms per month will see a billed 6.8% increase of $4.11 per month for a revised monthly bill of $64.74 effective Sept. 1, 2025, and no rate change effective Sept. 1, 2026.

The actual percentage rate change will vary by customer rate schedule and will depend on how much energy a customer uses.
Avista serves more than 145,000 electric and 93,000 natural gas customers in Idaho. 

[Table 1]
2025 & 2026 Electric Revenue Impact by Rate Schedule | 2025 & 2026 Electric Revenue Impact by Rate Schedule | 2025 & 2026 Electric Revenue Impact by Rate Schedule | 
Rate Schedule | Description | 2025 Billing Change | 2026 Billing Change
Residential Service | Schedule 1 | 6.7% | 4.7%
General Service | Schedules 11 & 12 | 6.7% | 4.8%
Large General Service | Schedules 21 & 22 | 8.0% | 5.6%
Extra Large General Service | Schedule 25 | 6.5% | 4.6%
Extra Large General Service 25P | Schedule 25P | 1.6% | 1.2%
Pumping Service | Schedules 31 & 32 | 8.0% | 5.6%
Street & Area Lights | Schedules 41 - 49 | 4.6% | 3.3%
Total |  | 6.6% | 4.6%

[Table 2]
2025 & 2026 Natural Gas Revenue Impact by Rate Schedule | 2025 & 2026 Natural Gas Revenue Impact by Rate Schedule | 2025 & 2026 Natural Gas Revenue Impact by Rate Schedule | 
Rate Schedule | Description | 2025 Billing Change | 2026 Billing Change
General Service | Schedule 101 | 6.7% | 0.0%
Large General Service | Schedules 111 & 112 | 0.0% | - 1.1%
Interruptible Service | Schedules 131 & 132 | 0.0% | 0.0%
Transportation Service | Schedule 146 | 0.0% | - 2.6%
Total |  | 5.4% | - 0.2%