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

1. Avista's settlement would increase electric revenues by $19.5 million in 2025. 2. Natural gas revenues may rise by $4.6 million in 2025, per settlement plan. 3. Customer bills for electricity will see increments of 6.7% starting in September 2025. 4. Avista aims to provide fair rates while ensuring infrastructure investment. 5. Settlement proposal awaits approval by the Idaho Public Utilities Commission.

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Why Bullish?

The revenue increases from the settlement are likely to boost investor confidence. Historical precedents show that approved rate settlements can lead to stock price appreciation.

How important is it?

The article details significant revenue changes that connect directly to AVA's financial performance. This connection indicates a high probability of affecting market perception and stock price.

Why Long Term?

The settlement effects are planned for 2025 and 2026, influencing future earnings positively. Long-term investment in infrastructure may yield sustainable growth.

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If approved, new rates would take effect beginning Sept. 2025 and Sept. 2026 June 09, 2025 19:21 ET  | Source: Avista Corporation SPOKANE, Wash., June 09, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA), the Staff of the Idaho Public Utilities Commission, Clearwater Paper Corporation, Idaho Forest Group, LLC and Walmart Inc., parties to the Company’s electric and natural gas general rate cases, have reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission for its consideration, and which would resolve all issues in the proceeding. If approved, the settlement agreement is designed to increase annual base electric revenues by $19.5 million or 6.3%, effective Sept. 1, 2025, and by $14.7 million or 4.5%, effective Sept. 1, 2026. For natural gas, the settlement agreement is designed to increase annual base natural gas revenues by $4.6 million or 9.2%, effective Sept. 1, 2025, and reduce base revenues by $0.2 million or 0.4%, effective Sept. 1, 2026. The settlement capital structure 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%. “This settlement agreement will provide new rates in Idaho that are fair and reasonable for our customers, the Company, and our shareholders,” said Heather Rosentrater, Avista President and CEO. “This is a constructive outcome. Our customers will benefit from longer recovery periods for certain deferred costs, which mitigates the bill impact of improved recovery of our costs to serve our customers. This agreement provides us with the opportunity to earn a fair return in Idaho while we invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect.” Residential Customer BillsIf the settlement is approved, a residential electric customer using an average of 939 kilowatt hours per month would see a 6.7% billed increase of $6.95 per month for a revised monthly bill of $111.25 effective Sept. 1, 2025, and a 4.7% billed increase of $5.22 per month for a revised monthly bill of $116.47 effective Sept. 1, 2026. A residential natural gas customer using an average of 66 therms per month would see a billed 6.8% increase of $4.11 per month for a revised monthly bill of $64.74 effective Sept. 1, 2025, and no rate change effective Sept. 1, 2026. 2025 & 2026 Electric Revenue Impact by Rate Schedule Rate Schedule Description2025 Billing Change2026 Billing ChangeResidential ServiceSchedule 16.7% 4.7% General ServiceSchedules 11 & 126.7% 4.8% Large General ServiceSchedules 21 & 228.0% 5.6% Extra Large General ServiceSchedule 256.5% 4.6% Extra Large General Service 25PSchedule 25P1.6% 1.2% Pumping ServiceSchedules 31 & 328.0% 5.6% Street & Area LightsSchedules 41 - 494.6% 3.3% Total 6.6% 4.6%  2025 & 2026 Natural Gas Revenue Impact by Rate Schedule Rate Schedule Description2025 Billing Change2026 Billing ChangeGeneral ServiceSchedule 1016.7% 0.0% Large General ServiceSchedules 111 & 1120.0% - 1.1% Interruptible ServiceSchedules 131 & 1320.0% 0.0% Transportation ServiceSchedule 1460.0% - 2.6% Total 5.4% - 0.2%  The actual percentage rate change will vary by customer rate schedule and will depend on how much energy a customer uses. Avista serves more than 145,000 electric and 93,000 natural gas customers in Idaho. Avista’s Original RequestAvista’s original request was 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. For natural gas, the rate request was 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 were based on a proposed rate of return (ROR) on rate base of 7.68% with a common equity ratio of 50% and a 10.4% return on equity (ROE). 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 medically vulnerable 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. 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 422,000 customers and natural gas to 383,000 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, 2024 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. SOURCE: Avista Corporation -2516- Contact:Media: Lena Funston (509) 495-8090, lena.funston@avistacorp.comInvestors: Stacey Walters (509) 495-2046, stacey.walters@avistacorp.com Avista 24/7 Media Access (509) 495-4174

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