Avista requests recovery of costs for providing service in Oregon
Avista (NYSE: AVA) has filed a request with Oregon's Public Utility Commission to increase natural gas base rates by 6.6% ($7.8 million) effective September 1, 2025. The proposal includes a 7.67% rate of return with a 50% common equity ratio and 10.4% return on equity. For residential customers using 47 therms monthly, this means a $4.37 increase to $68.67. The rate increase aims to recover costs from infrastructure investments, including replacement of pre-1987 gas pipelines and technology upgrades. This follows a recent 11.5% ($15.1 million) rate decrease from purchased gas cost adjustments implemented in November.
Avista (NYSE: AVA) ha presentato una richiesta alla Commissione per i Servizi Pubblici dell'Oregon per aumentare le tariffe di base del gas naturale del 6,6% (7,8 milioni di dollari) a partire dal 1° settembre 2025. La proposta include un tasso di ritorno del 7,67% con un rapporto di capitale proprio del 50% e un ritorno sul capitale del 10,4%. Per i clienti residenziali che utilizzano 47 therm mensili, ciò comporta un aumento di 4,37 dollari fino a 68,67 dollari. L'aumento delle tariffe mira a recuperare i costi degli investimenti infrastrutturali, inclusa la sostituzione delle tubazioni del gas precedenti al 1987 e gli aggiornamenti tecnologici. Questo segue una recente diminuzione delle tariffe dell'11,5% (15,1 milioni di dollari) dovuta agli aggiustamenti dei costi del gas acquistato implementati a novembre.
Avista (NYSE: AVA) ha presentado una solicitud a la Comisión de Servicios Públicos de Oregón para aumentar las tarifas base de gas natural en un 6,6% (7,8 millones de dólares) a partir del 1 de septiembre de 2025. La propuesta incluye una tasa de retorno del 7,67% con una relación de capital común del 50% y un retorno sobre el capital del 10,4%. Para los clientes residenciales que utilizan 47 therms mensuales, esto significa un aumento de 4,37 dólares hasta 68,67 dólares. El aumento de tarifario tiene como objetivo recuperar costos de inversiones en infraestructura, incluida la sustitución de tuberías de gas anteriores a 1987 y mejoras tecnológicas. Esto sigue a una reciente disminución del 11,5% (15,1 millones de dólares) en los costos del gas comprado implementada en noviembre.
Avista (NYSE: AVA)는 오리건주 공공 유틸리티 위원회에 2025년 9월 1일부터 6.6%(780만 달러) 자연가스 기본요금을 인상해 달라는 요청을 제출했습니다. 이 제안에는 7.67%의 수익률, 50%의 자본 비율 및 10.4%의 자기자본 수익률이 포함되어 있습니다. 매월 47 therms를 사용하는 주거 고객의 경우, 이는 4.37달러 인상이 되어 68.67달러가 됩니다. 이번 요금 인상은 1987년 이전의 가스 파이프라인 교체 및 기술 업그레이드를 포함한 인프라 투자 비용을 회수하기 위한 것입니다. 이는 11.5%(1510만 달러) 감소된 구매 가스 비용 조정이 11월에 시행된 후의 일입니다.
Avista (NYSE: AVA) a déposé une demande auprès de la Commission des services publics de l'Oregon pour augmenter les tarifs de base du gaz naturel de 6,6 % (7,8 millions de dollars) à compter du 1er septembre 2025. La proposition inclut un taux de rendement de 7,67 % avec un ratio de capitaux propres de 50 % et un retour sur capitaux propres de 10,4 %. Pour les clients résidentiels utilisant 47 therms par mois, cela signifie une augmentation de 4,37 dollars, portant le total à 68,67 dollars. L'augmentation des tarifs vise à récupérer les coûts des investissements dans les infrastructures, y compris le remplacement des pipelines de gaz antérieurs à 1987 et les mises à niveau technologiques. Cela fait suite à une récente baisse des tarifs de 11,5 % (15,1 millions de dollars) due aux ajustements des coûts du gaz acheté mis en œuvre en novembre.
Avista (NYSE: AVA) hat einen Antrag bei der öffentlichen Versorgungsbehörde von Oregon gestellt, um die Grundpreise für Erdgas um 6,6 % (7,8 Millionen Dollar) ab dem 1. September 2025 zu erhöhen. Der Vorschlag umfasst eine Rendite von 7,67 % mit einem Verhältnis von 50 % Eigenkapital und einerEigenkapitalrendite von 10,4 %. Für Haushaltskunden, die monatlich 47 Therm verwenden, bedeutet dies eine Erhöhung um 4,37 Dollar auf 68,67 Dollar. Die Tariferhöhung zielt darauf ab, Kosten aus Infrastrukturinvestitionen, einschließlich des Austauschs von Erdgasleitungen vor 1987 und technologischen Modernisierungen, zu decken. Dies folgt auf eine kürzliche Preissenkung um 11,5 % (15,1 Millionen Dollar) aufgrund von Anpassungen der gekauften Gaskosten, die im November umgesetzt wurden.
- Recent rate decrease of 11.5% ($15.1 million) implemented in November
- Ongoing infrastructure modernization through replacement of aging gas pipelines
- Technology system upgrades to improve customer service efficiency
- Proposed 6.6% ($7.8 million) rate increase for customers
- Operating costs continuing to outpace revenue
- Residential customers face 6.8% monthly bill increase ($4.37 for average usage)
Insights
This rate case filing represents a significant development for Avista's financial outlook. The requested
The timing of implementation (September 2025) and the 10-month review period provide a reasonable runway for regulatory assessment. The recent
The capital investment program outlined focuses on critical infrastructure modernization, particularly the pre-1987 pipeline replacement initiative. This proactive infrastructure renewal strategy addresses aging assets while potentially reducing future maintenance costs and improving system reliability. The technology systems upgrades should enhance operational efficiency and customer service capabilities.
These investments, while necessary for long-term sustainability, create near-term pressure on capital expenditure and rate base growth. The regulatory recovery mechanism through rate cases is important for maintaining investment grade credit metrics and supporting ongoing capital programs. The focus on mandatory compliance and safety upgrades suggests these investments are likely to receive favorable regulatory treatment.
Investments in infrastructure and increases in cost-of-service drive rate request
SPOKANE, Wash., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Today, Avista (NYSE: AVA) filed a request with the Public Utility Commission of Oregon (PUC) to increase natural gas base rates effective September 1, 2025.
The proposal is designed to increase overall natural gas base revenue by approximately
“Our customers remain our primary focus as we make decisions about how and where to invest across the company,” Avista CEO Dennis Vermillion said. “We strive to keep energy affordable while making important and necessary investments in our infrastructure. We’ve made these investments on behalf of our customers because it’s the right thing to do. We want our customers to have energy available when they need it.”
“Our costs to deliver energy continue to outpace our revenue. Avista is not unique in this regard; utilities across the nation work to replace infrastructure and meet increasing compliance obligations while the fixed costs of operating and maintaining systems are increasing.”
“Once we make investments in our system, we must recover the costs. It’s important for the health of the company and an essential part of providing safe and reliable energy to better align the rates customers pay with Avista’s costs to serve through these general rate requests. We understand that it’s challenging and often frustrating when we file rate cases and that many people are struggling.”
“We are pleased that the Commission recently approved requests by the Company that reduce customer rates beginning in November, resulting from our annual purchased gas cost adjustments. That decrease was approximately
Infrastructure Investments
The capital investments driving our need for rate relief include upgrades and maintenance of natural gas pipe and distribution equipment as well as other information technology improvements. Major capital investments included in today's filing are:
- The continuation of a major project to replace portions of natural gas distribution pipe. The project is replacing hundreds of miles of natural gas pipeline that was installed prior to 1987.
- Replacement of natural gas infrastructure that has reached the end of its useful life or needs to be replaced due to other regional infrastructure or compliance requirements.
- Implementation and upgrades of technology systems that make it easier for customers to do business with Avista and that enable employees to perform their jobs and serve customers in a safe, reliable and efficient manner.
Customer Bills
If approved by the PUC, a residential customer using an average of 47 therms per month would see a
The actual percentage and dollar increase will vary by customer class and will depend on how much energy a customer uses. The requested natural gas rate billing changes by rate schedule are as follows:
| Residential Schedule 410/411 | ||
| General Service Schedule 420 | ||
| Large General Service Schedule 424 | ||
| Interruptible Service Schedule 440 | ||
| Seasonal Service Schedule 444 | ||
| Transportation Service Schedule 456 | ||
| Overall |
More About Rates
On average, about
Avista serves approximately 106,000 customers in Oregon. The PUC has up to 10 months to review Avista's request.
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 418,000 customers and natural gas to 382,000 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, 2023 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
SOURCE: Avista Corporation
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Contact:
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FAQ
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