Avista reaches all-party, all issues settlement in Oregon general rate case
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.
Avista (NYSE: AVA) ha raggiunto un accordo di transazione completo nel suo caso generale sulle tariffe del gas naturale in Oregon con più parti, inclusi il personale della Commissione Pubblica dei Servizi dell'Oregon e il Consiglio dei Cittadini Utilizzatori dell'Oregon. L'accordo, in attesa di approvazione da parte della commissione, comporterebbe un aumento delle entrate di base di $4,2 milioni, ridotto rispetto alla richiesta originale di $7,8 milioni.
L'accordo prevede un tasso di rendimento del 7,219% con un rapporto di capitale comune del 50% e un ritorno sul capitale del 9,5%. Attraverso crediti fiscali accelerati per i clienti per tre anni, l'impatto complessivo sui clienti sarebbe del 2,0%. Per i clienti residenziali che utilizzano una media di 48 therms al mese, ciò si traduce in un aumento mensile di $1,36, portando le bollette da $69,55 a $70,91 a partire dal 1° settembre 2025.
L'accordo riguarda circa 107.000 clienti di Avista in Oregon e include disposizioni per assistenza ai clienti tramite programmi di sconto sulle bollette e iniziative di efficienza energetica.
Avista (NYSE: AVA) ha alcanzado un acuerdo de conciliación integral en su caso general de tarifas de gas natural en Oregón con múltiples partes, incluyendo al personal de la Comisión de Servicios Públicos de Oregón y la Junta de Utilidades de Ciudadanos de Oregón. El acuerdo, pendiente de aprobación de la comisión, resultaría en un aumento de ingresos base de $4.2 millones, reducido de la solicitud original de $7.8 millones.
El acuerdo presenta un tasa de retorno del 7.219% con un ratio de capital común del 50% y un retorno sobre el capital del 9.5%. A través de créditos fiscales acelerados para los clientes durante tres años, el impacto general para los clientes sería del 2.0%. Para los clientes residenciales que utilizan un promedio de 48 therms mensuales, esto se traduce en un aumento mensual de $1.36, elevando las facturas de $69.55 a $70.91 a partir del 1 de septiembre de 2025.
El acuerdo afecta a aproximadamente 107,000 clientes de Avista en Oregón e incluye disposiciones para asistencia a los clientes a través de programas de descuento en facturas e iniciativas de eficiencia energética.
Avista (NYSE: AVA)는 오리건의 천연가스 일반 요금 사건에서 오리건 공공 유틸리티 위원회 직원 및 오리건 시민 유틸리티 위원회를 포함한 여러 당사자와 포괄적인 합의에 도달했습니다. 이 합의는 위원회의 승인을 기다리고 있으며 420만 달러의 기본 수익 증가를 초래하게 되며, 이는 원래 요청한 780만 달러에서 줄어든 것입니다.
합의는 50%의 일반 자본 비율과 9.5%의 자기자본 수익률을 가진 7.219%의 수익률을 특징으로 합니다. 고객에 대한 세금 크레딧을 3년 동안 가속화함으로써, 전체 고객에 대한 영향은 2.0%가 될 것입니다. 월 평균 48 therms를 사용하는 주거 고객의 경우, 이는 월 $1.36의 증가로 이어지며, 2025년 9월 1일부터 요금이 $69.55에서 $70.91로 인상됩니다.
이 합의는 Avista의 약 107,000명의 오리건 고객에게 영향을 미치며, 청구서 할인 프로그램과 에너지 효율 이니셔티브를 통한 고객 지원 조항이 포함되어 있습니다.
Avista (NYSE: AVA) a conclu un accord de règlement complet dans son affaire de tarif général de gaz naturel en Oregon avec plusieurs parties, y compris le personnel de la Commission des services publics de l'Oregon et le Conseil des citoyens utilisateurs de l'Oregon. L'accord, en attente d'approbation par la commission, entraînerait une augmentation des revenus de base de 4,2 millions de dollars, réduite par rapport à la demande initiale de 7,8 millions de dollars.
L'accord prévoit un taux de rendement de 7,219% avec un ratio de fonds propres commun de 50% et un rendement des capitaux propres de 9,5%. Grâce à des crédits d'impôt pour les clients sur trois ans, l'impact global pour les clients serait de 2,0%. Pour les clients résidentiels utilisant en moyenne 48 therms par mois, cela se traduit par une augmentation mensuelle de 1,36 $, faisant passer les factures de 69,55 $ à 70,91 $ à compter du 1er septembre 2025.
L'accord concerne environ 107 000 clients d'Avista en Oregon et comprend des dispositions d'assistance aux clients par le biais de programmes de réduction des factures et d'initiatives d'efficacité énergétique.
Avista (NYSE: AVA) hat eine umfassende Vergleichsvereinbarung in seinem allgemeinen Tarifsach für Erdgas in Oregon mit mehreren Parteien, einschließlich des Personals der Public Utility Commission of Oregon und des Oregon Citizens' Utility Board, erreicht. Der Vergleich, der noch der Genehmigung der Kommission bedarf, würde zu einer Erhöhung der Basisumsätze um 4,2 Millionen Dollar führen, die von der ursprünglichen Anfrage von 7,8 Millionen Dollar reduziert wurde.
Die Vereinbarung sieht eine Rendite von 7,219% vor, mit einem Verhältnis von 50% eigenkapital und einer Eigenkapitalrendite von 9,5%. Durch beschleunigte Steuervergünstigungen für Kunden über drei Jahre würde die gesamte Kundenbelastung 2,0% betragen. Für Haushaltskunden, die im Durchschnitt 48 therms pro Monat verbrauchen, bedeutet dies eine monatliche Erhöhung um 1,36 Dollar, was die Rechnungen von 69,55 Dollar auf 70,91 Dollar ab dem 1. September 2025 anhebt.
Der Vergleich betrifft etwa 107.000 Kunden von Avista in Oregon und enthält Bestimmungen zur Kundenhilfe durch Rabattprogramme und Maßnahmen zur Energieeffizienz.
- 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
- Revenue increase approved ($4.2M) is 46% lower than originally requested ($7.8M)
- Rate increase may impact customer affordability in challenging economic times
Insights
This unanimous settlement agreement represents a significant regulatory win for Avista in Oregon. The company secured a $4.2 million revenue increase despite initially requesting $7.8 million - achieving 54% of their ask while gaining crucial support from all stakeholders including consumer advocates and environmental groups.
The approved 9.5% return on equity with a 50% equity ratio falls within reasonable parameters for natural gas utilities in today's regulatory environment. What's particularly strategic is Avista's negotiation to accelerate customer tax credits over three years, effectively softening the customer bill impact to just 2.0%. This approach demonstrates sophisticated regulatory management that balances shareholder returns with ratepayer protection.
The settlement's unanimous nature is especially valuable. By securing agreement from the Commission Staff, Oregon Citizens' Utility Board, Alliance of Western Energy Consumers, and environmental intervenors, Avista eliminates litigation risk and administrative costs while building regulatory goodwill. For a natural gas utility facing increasing environmental scrutiny, this collaborative approach with climate-focused organizations signals effective stakeholder management.
While the revenue increase appears modest relative to Avista's size, the regulatory certainty and established precedent for future rate cases deliver significant long-term value. The September 2025 implementation provides adequate lead time for operational planning while securing timely cost recovery for infrastructure investments.
This rate case settlement provides Avista with an additional $4.2 million in annual recurring revenue from its Oregon operations - representing modest but stable growth. While lower than the original $7.8 million request, the approved amount combines with the favorable 9.5% ROE to deliver reliable shareholder returns in a challenging utility environment.
The settlement's financial structure merits attention: the 7.219% overall rate of return with 50% common equity ratio creates a balanced capital framework that should adequately support Avista's infrastructure investments while maintaining financial stability. The accelerated deployment of customer tax credits demonstrates management's financial acumen by trading short-term utility tax assets for immediate revenue recognition.
For context, while Oregon represents just a portion of Avista's customer base (107,000 customers), this settlement establishes constructive regulatory parameters that could influence upcoming rate cases in other jurisdictions. The 2.0% customer impact strikes an appropriate balance - sufficient to improve cash flow without triggering significant affordability concerns or regulatory pushback.
Investors should appreciate the elimination of regulatory uncertainty and the ability to implement new rates by September 1, 2025. For utilities, regulatory predictability often carries greater value than maximizing short-term rate increases. This settlement demonstrates management's effectiveness in navigating the fundamental utility compact: securing fair compensation for infrastructure investments while maintaining reasonable customer rates and stakeholder relationships.
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
"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
| 2025 Natural Gas Revenue Impact by Rate Schedule | ||
| Rate Schedule | Description | 2025 Billing Change |
| Single-Family Residential | Schedule 410 | |
| Multi-Family Residential | Schedule 411 | - |
| General Service | Schedule 420 | |
| Large General Service | Schedules 424 & 425 | |
| Interruptible Service | Schedule 439 & 440 | |
| Seasonal Service | Schedule 444 | |
| Transportation Service | Schedule 456 | |
| 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
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