Avista reaches multiparty settlement of all issues in Idaho general rate case

If approved, new rates would take effect beginning Sept. 2023 and Sept. 2024

SPOKANE, Wash., June 14, 2023 (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. The remaining joint party, the Idaho Conservation League / NW Energy Coalition, did not join in the Settlement.

If approved, the settlement agreement is designed to increase annual base electric revenues by $22.1 million or 8.0%, effective Sept. 1, 2023, and by $4.3 million or 1.4%, effective Sept. 1, 2024. For natural gas, the settlement agreement is designed to increase annual base natural gas revenues by $1.3 million or 2.7%, effective Sept. 1, 2023, and by $.003 million or 0.01%, effective Sept. 1, 2024. The settlement capital structure includes a 9.4% return on equity (ROE) with a common equity ratio of 50% and a rate of return (ROR) on rate base of 7.19%.

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

Residential Customer Bills
If the settlement is approved, a residential electric customer using an average of 927 kilowatt hours per month would see an 11.9% billed increase of $10.15 per month for a revised monthly bill of $95.55 effective Sept. 1, 2023, and a 2.2% billed increase of $2.06 per month for a revised monthly bill of $97.61 effective Sept. 1, 2024. A residential natural gas customer using an average of 64 therms per month would see a billed 1.6% increase of $1.20 per month for a revised monthly bill of $74.62 effective Sept. 1, 2023, and a 0.0% billed increase of $0.03 per month for a revised monthly bill of $74.65 effective Sept. 1, 2024.