Avista Corporation filed a four‑year general rate case with the Washington Utilities and Transportation Commission on January 16 2026, seeking to recover increased operating and maintenance costs and to fund critical investments in the state’s electric and natural‑gas infrastructure, including hydropower upgrades and wildfire‑mitigation measures.
The filing requests additional base revenues of $111 million for electric services in 2027—representing a 13.9% increase—and $12 million for natural‑gas services in 2027—a 4.7% increase. Subsequent years see smaller percentage hikes, with the electric rate case projected to rise to $123 million in 2028 and $135 million in 2029, while gas rates climb to $13 million in 2028 and $14 million in 2029.
Avista is also requesting a 7.5% rate of return in 2027, rising to 7.67% in 2029, and a return on equity of 10.2% in 2027, increasing to 10.5% in 2029. These figures reflect the company’s need to maintain a healthy capital structure while funding the planned upgrades.
The proposed rate increases translate into tangible bill changes for average customers. An average Washington residential electric customer using 925 kWh per month would see their bill rise from $124.23 to $157.94 by 2030, with an initial 2027 increase of $17.21. For natural gas, an average customer using 61 therms per month would see their bill grow from $91.06 to $100.46 by 2030, with a 2027 increase of $4.14.
Key cost drivers behind the revenue request include $46 million in electric resource costs, $29 million in capital additions, and additional expenses for employee benefits, insurance, regulatory amortizations, and wildfire‑related costs. These items underscore the breadth of investments required to keep the grid reliable and compliant with evolving clean‑energy mandates.
Avista President and CEO Heather Rosentrater emphasized the necessity of the rate case, stating, “As a lifelong member of this community, I recognize that rising energy costs are difficult for our customers. While this rate request reflects what’s needed to maintain safe, reliable service, we’re committed to helping customers manage their bills through payment assistance programs and energy‑saving tools, while continuing to control costs and invest in technology to improve efficiencies.”
The Washington Utilities and Transportation Commission has up to eleven months to review the filing, with a decision expected in late 2026. The regulatory process will determine whether the proposed rates are approved, modified, or rejected, and will shape Avista’s revenue trajectory for the next four years.
The rate case is a critical component of Avista’s broader strategy to modernize the grid, expand hydropower capacity, and implement wildfire‑mitigation initiatives. Successful approval will enable the company to meet clean‑energy goals, reduce outage risk, and maintain service reliability—factors that directly influence long‑term profitability and shareholder value.
Avista’s previous general rate case, approved in December 2024, established a two‑year rate plan for 2025 and 2026. The new filing continues the company’s pattern of multi‑year rate adjustments, providing customers with predictable rate changes and allowing Avista to plan capital expenditures with greater certainty.
There has been no immediate market reaction to the filing, and analysts have not issued new guidance or commentary in response to the rate case announcement. The regulatory outcome will be closely watched by investors and customers alike for its impact on Avista’s financial outlook.
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