1. Avista approved new electric rates, increasing revenue up to $19.5 million. 2. Natural gas rates will increase by $4.6 million in 2025, decrease by $0.2M in 2026. 3. Settlement aims to ensure fair rates for customers and shareholders. 4. Rate adjustments facilitate infrastructure investments for reliable energy supply. 5. Avista serves over 145,000 electric and 93,000 natural gas customers in Idaho.
The approved rate increases enhance revenue stability and company growth prospects, similar to previous effective rate adjustments positively impacting utility stocks.
The rate increases are significant for future revenue enhancement, influencing investor sentiment and market performance.
Rates will start affecting earnings from 2025, positively shaping the long-term financial outlook for AVA.
New rates take effect on Sept. 1, 2025 and Sept. 1, 2026.
SPOKANE, Wash., Aug. 29, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE:AVA) received approval from the Idaho Public Utilities Commission (IPUC or Commission) of the all-party, all issues settlement agreement that was filed on June 9, 2025, concluding the Company's electric and natural gas general rate cases. New electric rates take effect Sept. 1, 2025 and Sept 1, 2026.
The approved rates are 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%.
"The Commission's decision keeps new rates fair and reasonable for our Idaho customers, the Company, and our shareholders," said Heather Rosentrater, Avista President and CEO. "This constructive outcome supports Avista's efforts to make key capital investments that allow us to earn a fair return in Idaho as we invest in and maintain our infrastructure to continue providing the reliable energy our customers expect," Rosentrater added.
Avista serves more than 145,000 electric and 93,000 natural gas customers in Idaho.
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 June 30, 2025.
SOURCE: Avista Corporation
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