Oregon’s Public Utility Commission Adjusts Rates for Avista Customers

News Release from Oregon Public Utility Commission
October 26th, 2023

SALEM, Ore. – The Oregon Public Utility Commission (PUC) recently finalized adjustments in rates for Avista Utilities customers stemming from decisions in two proceedings – an annual adjustment for natural gas costs, which resulted in a decrease in rates effective November 1, 2023, and a general rate case filing that will increase customer rates for costs not related to natural gas supply effective January 1, 2024.

Below is an explanation of the rate changes the three customer types can expect November 1, 2023, due to the annual adjustment for natural gas costs known as the purchased gas adjustment (PGA), and January 1, 2024, due to the general rate case.

Residential Customers

A typical residential customer using an average of 47 therms per month will experience the following:

• Starting November 1, 2023, the monthly bill will decrease by $10.83, or 14.1 percent, from $77.01 to $66.18.
• Starting January 1, 2024, the monthly bill will increase by $3.92, or 5.9 percent from $66.18 to $70.11.

The combined impact for residential customers is a decrease of $6.90 each month or 9.0 percent when compared to rates in place through October 2023.

Commercial Customers

A typical commercial customer using an average of 202.6 therms per month will experience the following:

• Starting November 1, 2023, the monthly bill will decrease by $45.05, or 15.6 percent, from $289.47 to $244.42.
• Starting January 1, 2024, the monthly bill will increase by $16.75, or 6.9 percent, from $244.42 to $261.17.

The combined impact for commercial customers is a decrease of $28.31 each month or 9.8 percent when compared to rates in place through October 2023.

Industrial Customers

A typical industrial customer using an average of 3,822.4 therms per month will experience the following:

• Starting November 1, 2023, the monthly bill will decrease by $940.54, or 28.8 percent, from $3,272.01 to $2,331.47.
• Starting January 1, 2024, the monthly bill will increase by $4.39, or 0.2 percent, from $2,331.47 to $2,335.86.

The combined impact for industrial customers is a decrease of $936.15 each month or 28.6 percent when compared to rates in place through October 2023.

Below is a breakdown of the separate PUC decisions that led to the overall changes in customer rates described above.

Purchased Gas Adjustment (PGA) 

The PUC approves annual adjustments to the rates of the three regulated natural gas companies, including NW Natural, Avista Utilities and Cascade Natural Gas, to reflect changes in the actual cost of wholesale priced natural gas. This annual adjustment, known as the purchased gas adjustment (PGA), allows companies to pass through their actual cost of purchasing gas to customers without a markup on the price. This year, the PUC approved an overall decrease in revenues of $23.1 million, or approximately 33 percent, for natural gas supply costs due to the PGA and related filings, when compared to 2022 company gross revenues. The rate decrease for customers, effective November 1, 2023, is largely due to Avista Utilities purchasing wholesale natural gas at a lower rate than forecast and resulting overcollection of funds from customers last year.

General Rate Case

The PUC recently approved a $6.944 million, or 4.7 percent, increase in billed revenue for non-gas costs in a general rate proceeding. The increase, effective January 1, 2024, is largely driven by capital investments, inflation and rising interest rates, supply chain disruptions, and labor costs.

Customer Resources

To increase energy efficiency and save on future bills, review Energy Trust of Oregon’s current incentives and opportunities, including income-qualified offers and learn more about  low-cost and no-cost tips to reduce energy consumption. For information about bill payment assistance options, newly available utility discount programs, and the Comfort Level Billing program that equalizes bill payments across winter and summer months, contact Avista at 800-227-9187 or view information online. Customers may also contact their local Community Action agency to request information on what assistance programs they may be eligible for and how to enroll.

Avista Utilities serves nearly 106,000 customers in portions of southwest and northeastern Oregon.