Avista: approved rates to boost annual base electric revenue by 6.3%

Avista: approved rates to boost annual base electric revenue by 6.3%

Title: Avista Secures Approval for New Electric Rates, Boosting Annual Base Revenue by 6.3%

Avista Corporation (NYSE:AVA) has received approval from the Idaho Public Utilities Commission (IPUC) for its all-party settlement agreement regarding electric and natural gas rate cases. The approved rates will significantly increase annual base electric revenues, with the new rates set to take effect on September 1, 2025, and September 1, 2026 [1].

The new electric rates are designed to increase annual base electric revenues by $19.5 million, representing a 6.3% increase, effective September 1, 2025. This increase will be followed by a further increase of $14.7 million, equating to a 4.5% increase, effective September 1, 2026 [1]. For natural gas, the approved rates will increase annual base revenues by $4.6 million, a 9.2% increase, effective September 1, 2025, with a slight reduction of $0.2 million, or a 0.4% decrease, effective September 1, 2026 [1].

The settlement agreement includes a capital structure with a 9.6% return on equity (ROE), a 50% common equity ratio, and a 7.28% rate of return on rate base [1]. Avista serves over 145,000 electric and 93,000 natural gas customers in Idaho [1].

Avista President and CEO, Heather Rosentrater, stated that the Commission’s decision ensures that new rates are fair and reasonable for both customers and shareholders. She noted that this approval supports Avista's efforts to make key capital investments, enabling the company to earn a fair return and maintain its infrastructure for reliable energy services [1].

This approval is a significant step for Avista, as it aligns with the company’s strategic objectives to invest in its infrastructure and ensure the reliability of its energy services. The new rates will provide the necessary revenue to support these investments and maintain a stable financial position.

References:
[1] https://www.globenewswire.com/news-release/2025/08/29/3141775/0/en/Avista-receives-approval-of-all-party-all-issues-settlement-in-Idaho-general-rate-cases.html