Avista seeking rate increases for Idaho customers

Avista Utilities announced this week that it has reached a settlement agreement that would raise rates for Idaho customers by about 12% for electricity users and 1.6% for natural gas ratepayers effective on Sept. 1.

Natural gas prices have risen six times for Avista’s Idaho customers since September 2021 through a series of rate adjustments that account for higher prices the company has to pay to secure the fuel primarily used for heating homes and businesses, along with its general rate bumps to cover equipment and delivery costs.

The monthly bill for the average natural gas customer is about 55% higher than this time in 2021.

Avista’s latest rate proposals come following discussions with its largest customers that include Clearwater Paper Corp., Idaho Forest Group and Walmart Inc., according to a news release.

The settlement, if approved, would increase Avista’s revenue from its gas customers by $1.3 million beginning in September.

Natural gas customers using an average or 64 therms per month would see a 1.6% increase, making their monthly bill $74.62 beginning Sept. 1.

Two years ago, Avista predicted its gas customers would pay monthly bills of about $47.95 by September 2022.

The company started a series of six rate increases in 2021 which instead raised gas rates 55% since that time.

Avista spokeswoman Lena Funston explained the utility faced much higher gas prices in 2021 and obtained approval for several rate increases for natural gas.

“During 2022, we sought to reflect in rates a cost of gas more similar to what we were paying in the wholesale market,” Funston wrote.

Funston said the prices for natural gas have since moderated.

For the company’s electricity customers, Avista will collect $22.1 million more beginning in September and then another $4.3 million in September 2024.

Avista’s average residential customer in Idaho can expect electricity bills to climb $10.15 per month to about $95.55 per month. That’s an 11.9% increase.

The next year the rates will increase again, pushing the bill to about $97.61 in September 2024.

“This settlement agreement will provide new rates in Idaho that are fair and reasonable for our customers, the company, and our shareholders,” Dennis Vermillion, Avista president and CEO, said in a news release.

The Idaho Public Utilities Commission is expected to hold a hearing in August at which it will consider the rate increases.

According to Avista, residential electricity users would face higher percentage increases than those charged to businesses.

Residential users will see an 11.9% increase starting Sept. 1.

General service customers will see a 3% electrical bill increase; large general service a 10.8% increase and extra-large general service customers a 3% increase.

“We view this outcome as being constructive as it provides us with the opportunity to earn a fair return in Idaho and supports Avista’s efforts to invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect,” Vermillion said in the news release.

Avista serves more than 141,000 electric and 92,000 natural gas customers in Idaho.