Avista files multi-year electric and natural gas rate plan in Idaho

Company’s filing seeks to recover infrastructure investments and expenses necessary to serve customers January 31, 2025 16:05 ET | Source: Avista Corporation SPOKANE, Wash., Jan. 31, 2025 (GLOBE NEWSWIRE) -- Today, Avista (NYSE: AVA) has filed a multi-year rate plan with the Idaho Public Utilities Commission (IPUC or Commission) that would allow the Company to recover costs for fixed expenses and ongoing investments to infrastructure, technology and more. If approved, new rates would be effective in Sept. 2025 and Sept. 2026. “The cost of delivering safe and reliable energy includes maintaining and improving a massive infrastructure made up of pipes, poles, dams, and substations as well as technology upgrades. These expenses are necessary to ensure that we can continue to provide our customers with safe, efficient, and reliable power. We're managing these expenses on behalf of our customers because we understand the need to minimize the cost impact that our customers experience,” said Avista President and CEO Heather Rosentrater. “Keeping costs affordable for customers is at the forefront of our decisions. We aim to save our customers money in a variety of ways, including implementing intentional purchase plans, offering natural gas for the same price we pay, and continuing to be thoughtful in how we prepare our generation mix. Even with these efforts in place, the costs to purchase power can and do fluctuate, and we need to continue to invest hundreds of millions of dollars in our system every year to continue providing safe, reliable service for our customers now and into the future,” Rosentrater said. Avista’s RequestsThe proposal is a two-year rate plan, with new rates taking effect in Sept. 2025 and Sept. 2026. This plan would create a stay-out period where Avista would not file a new general rate case for new rates to be effective before Sept. 2027. This would provide customers with some predictability in their expected future energy prices. If approved, the electric general rate request is 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. If approved, the natural gas general rate request is 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 are based on a proposed rate of return (ROR) of 7.68%, with a common equity ratio (CER) of 50%, and a 10.4% return on equity (ROE). Infrastructure Investments Avista needs to continue to replace infrastructure that has reached the end of its useful life, as well as respond to the need for reliability and technology investments required to build the integrated energy services grid that will take us into the future. Among the projects included in today’s filing are: Ongoing management, inspection, and replacement of 240,000 electric distribution wood poles through Avista’s wood pole management program to ensure poles and the equipment on them support the company’s ability to provide customers with safe and reliable power.Continued investment in Avista’s Wildfire Resiliency Plan, which outlines substantial steps that Avista has taken to guard against the growing threat of wildfires including grid hardening, enhanced vegetation management, and other industry-leading best practice measures.The ongoing project to systematically replace portions of natural gas distribution pipe in Avista’s service area that were installed before 1987, as well as replacement of other natural gas service equipment to strengthen the integrity, safety, and reliability of the system.Technology upgrades that support necessary business processes and operational efficiencies that allow Avista to effectively manage the utility and serve customers. Idaho Residential Customer Bills Electric Effective Sept. 2025: Residential electric customers in Idaho using an average of 939 kilowatt hours per month could expect to see a total billed increase of 14.7% or $15.36 for a revised monthly bill of $119.66 from $104.30. The proposed monthly increase includes a $5 per month proposed increase in the basic charge to a level of $25.00 per month. Effective Sept. 2026: Residential electric customers in Idaho using an average of 939 kilowatt hours per month could expect to see a total billed increase of 5.3% or $6.36 for a revised monthly bill of $126.02 from $119.66. The proposed monthly increase includes a $5 per month proposed increase in the basic charge to a level of $30.00 per month. Natural gas Effective Sept. 2025: Residential natural gas customers in Idaho using an average of 66 therms per month could expect to see a total billed increase of 10.4% or $6.29 for a revised monthly bill of $66.92 from $60.63. Effective Sept. 2026: Residential natural gas customers in Idaho using an average of 66 therms per month could expect to see a total billed increase of 1.3% or $0.88 for a revised monthly bill of $67.80 from $66.92. Proposed Changes by Service ScheduleThe requested electric increase by service schedule is as follows: Rate ScheduleSept. 2025 Billing IncreaseSept. 2026Billing IncreaseResidential Service – Schedule 114.7%5.3%General Service - Schedules 11/1214.2%5.1%Large General Service - Schedules 21/2214.1%5.1%Extra Large General Service - Schedule 2514.3%5.2%Extra Large General Service - Schedule 25P14.4%5.2%Pumping Service - Schedules 31/3214.1%5.1%Street & Area Lights - Schedules 41 – 4913.4%4.9%Total14.4%5.2% The requested natural gas increase by service schedule is as follows: Rate ScheduleSept. 2025 Billing IncreaseSept. 2026 Billing IncreaseGeneral Service Schedule 10110.3%1.3%Large General Service Schedules 111/11210.3%0.0%Interrupt. Sales Service Schedules 131/1320.0%0.0%Transportation Service Schedule 14610.3%0.0%Total 10.3%1.0% The actual percentage increase for electric and natural gas customers will vary by customer rate group and depend on how much energy a customer uses. Customer ResourcesTo assist customers in managing their energy bills, Avista offers services for customers such as comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation Services (CARES), which provide assistance to special-needs customers through referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista provides energy efficiency and outreach programs that include rebates and incentives as well as tips and resources to help customers manage their energy use and energy bills. Customers can learn more at www.myavista.com. Rate Application Procedure and Additional Information Avista’s application is a proposal, subject to public review and a Commission decision. Copies of the applications are available for public review at the offices of both the Commission and Avista and on the Commission’s website (www.puc.idaho.gov). Customers may file with the Commission written comments related to the Company’s filing. Customers may also subscribe to the Commission’s RSS feed (https://puc.idaho.gov/RssPage) to receive periodic updates via e-mail about the case. Copies of the rate filing is also available on our website, www.myavista.com/rates. The Commission will begin a comprehensive review of Avista’s application and will seek public input. If you would like to submit comments on the proposed increase (Case No. AVU-E-25-01 and AVU-G--01), you can do so by going to the Commission website or mailing comments to: Idaho Public Utilities Commission P. O. Box 83720 Boise, ID 83720-0074 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 our operating division that provides electric service to 420,000 customers and natural gas to 381,000 customers. Our 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. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our 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 September 30, 2024. SOURCE: Avista Corporation To unsubscribe from Avista’s news release distribution, send a reply message to dalila.sheehan@avistacorp.com Contact: Media: Lena Funston (509) 495-8090 lena.funston@avistacorp.comInvestors: Stacey Wenz (509) 495-2046 stacey.wenz@avistacorp.com Avista 24/7 Media Access (509) 495-4174

Avista files multi-year electric and natural gas rate plan in Idaho

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