PUC Approves Avista Rate Adjustments Due to Lower Gas Costs
Summary
The Oregon Public Utility Commission (PUC) approved rate adjustments for Avista customers, effective October 31, 2025. While lower natural gas costs led to a decrease in the Purchased Gas Adjustment, other annual adjustments for energy efficiency and customer programs resulted in a net monthly bill increase of $1.75 for typical residential customers.
What changed
The Oregon Public Utility Commission (PUC) has approved rate adjustments for Avista customers, effective October 31, 2025, under Docket No. UG 523. This decision stems from annual filings, including a Purchased Gas Adjustment (PGA) which reflects lower natural gas prices, offset by increases for energy efficiency programs and customer support services. The net effect is an overall increase in rates, raising Avista's total revenue by $4.1 million.
Residential customers using an average of 46 therms per month will see an increase of approximately $1.75 (2.56%), bringing their average monthly bill to about $70.18. The PUC emphasizes that rates are adjusted to reflect true costs and market changes. Customers are advised to explore energy-saving programs and bill assistance options through Avista or local agencies.
What to do next
- Review Avista's new rate structure for affected customer segments.
- Communicate rate changes and available assistance programs to affected customers.
- Update internal billing and financial models to reflect the new revenue requirements.
Source document (simplified)
Docket No. UG 523 – Purchased Gas Adjustment + ADV filings Media Release FOR IMMEDIATE RELEASE Contact: Kandi Young, Public Information Officer Date: October 29, 2025 (503) 551-5290; kandi.young@puc.oregon.gov PUC APPROVES RATE ADJUSTMENTS FOR AVISTA CUSTOMERS: LOWER NATURAL GAS COSTS OFFSET BY OTHER ANNUAL ADJUSTMENTS SALEM, Ore. – The Oregon Public Utility Commission (PUC) recently approved an overall increase in rates for Avista customers that goes into effect October 31, 2025. The change is the result of several annual adjustments, including a decrease in natural gas prices combined with other filings focused on energy efficiency, customer programs, among others. Customer Impact The combined result of these annual filings means the monthly bill of a typical residential customer using an average of 46 therms per month will increase by $1.75 or 2.56%, bringing the average monthly bill to about $70.18. The amount rates will increase for each customer varies depending on customer type (residential, commercial, or industrial) and energy usage. Reasons for the Adjustment Each year the PUC reviews the actual cost of natural gas and approves adjustments to rates accordingly through a process called the Purchased Gas Adjustment (PGA). The PGA allows utilities to pass through the cost of purchasing natural gas to customers without a markup on the price. This year, natural gas prices were moderate, and Avista collected more than needed from customers last year. As a result, the PGA led to a decrease in natural gas costs in customers’ bills. Despite the lower gas prices, other approved updates, such as funding for energy efficiency programs and customer support services, resulted in a net increase in rates. Altogether, these changes will raise Avista’s total revenue, or the amount collected from customers, by $4.1 million. “Our goal is to ensure Avista’s rates reflect the true cost of providing service and are fair and reasonable for customers,” said PUC Chair Letha Tawney. “We carefully review all filings to ensure customers see accurate rates that reflect both market changes and essential utility costs.” Manage Energy Use and Bills • Explore rebates and energy-saving tips through the Energy Trust of Oregon. • Learn about bill assistance programs, including income-based discounts and Comfort Level Billing, which spreads costs evenly throughout the year, contact Avista at 800-227-9187 or visit their website. • Reach out to local Community Action agencies to find out what support is available. Avista serves more than 100,000 customers in portions of southwest and northeastern Oregon.
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