Avista reaches all-party, all issues settlement in Idaho general rate cases

Core Viewpoint - Avista and other parties have reached a settlement agreement regarding electric and natural gas rate cases, which is pending approval from the Idaho Public Utilities Commission [1][2][4]. Electric Revenue Summary - The settlement agreement proposes an increase in annual base electric revenues by $19.5 million (6.3%) effective September 1, 2025, and by $14.7 million (4.5%) effective September 1, 2026 [2][10]. - A residential electric customer using an average of 939 kilowatt hours per month would see a 6.7% increase of $6.95 per month for a revised bill of $111.25 effective September 1, 2025, and a 4.7% increase of $5.22 per month for a revised bill of $116.47 effective September 1, 2026 [5]. - The overall electric revenue impact varies by rate schedule, with the total billing change for 2025 being 6.6% and for 2026 being 4.6% [7]. Natural Gas Revenue Summary - The settlement agreement proposes an increase in annual base natural gas revenues by $4.6 million (9.2%) effective September 1, 2025, and a decrease of $0.2 million (0.4%) effective September 1, 2026 [2]. - A residential natural gas customer using an average of 66 therms per month would see a 6.8% increase of $4.11 per month for a revised bill of $64.74 effective September 1, 2025, with no rate change effective September 1, 2026 [6]. - The total natural gas revenue impact for 2025 is 5.4%, with a slight decrease of 0.2% in 2026 [8]. Financial Structure - The settlement 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% [3][11]. - The original request from Avista aimed for a higher increase in annual base revenues, with $43.0 million (14.4%) for electric and $8.8 million (10.3%) for natural gas [10]. Customer Impact and Services - The settlement is designed to provide fair and reasonable rates for customers, allowing for longer recovery periods for certain deferred costs, which helps mitigate bill impacts [4]. - Avista serves over 145,000 electric and 93,000 natural gas customers in Idaho, indicating a significant customer base affected by these changes [9].