Avista Utilities has made a significant announcement that may catch the attention of many residents: they are planning a substantial increase in residential electricity rates, seeking to raise them by approximately 25% by the year 2030. This proposal, which was put forth on a Friday, includes an immediate request for a 13.9% increase starting in 2027, followed by a series of incremental hikes over the next few years.
The suggested changes have been submitted to the Washington Utilities and Transportation Commission (UTC) for their review and approval. Specifically, the rate increase plan outlines a rise of 13.9% in 2027, succeeded by a 4.7% increase in 2028, a 3.5% rise in 2029, and finally a 2.8% increase in 2030. If the UTC approves this plan, it would mean that from January 2030, the average electricity bills for typical Avista customers would jump by nearly 24.9%.
Heather Rosentrater, the president and CEO of Avista, acknowledged the challenges posed by escalating energy costs, stating in a press release, "As a lifelong member of this community, I recognize that rising energy costs are difficult for our customers."
She emphasized that while this rate adjustment is necessary to maintain safe and reliable service, the company is dedicated to helping its customers manage their bills. Avista plans to offer payment assistance programs and energy-saving resources, all while continuing to control costs and invest in technology aimed at improving efficiency. Rosentrater added, "This proposal helps us make the investments needed for reliability and critical infrastructure, while giving our customers more predictability over the next four years."
In practical terms, if these changes are sanctioned, a residential electric customer in Washington who uses an average of 925 kilowatt hours per month would see their bill rise from $124.23 in January 2026 to $157.94 by 2030. The initial jump of 13.9% would translate into an increase of $17.21 on their monthly bill in 2027, with smaller increments following each year.
Avista is not just focusing on electricity rates; they are also seeking permission from the UTC to increase residential natural gas rates. The proposed increases include 5% in 2027, approximately 2.5% in 2028, 2.2% in 2029, and a modest 1.1% hike in 2030, amounting to a total increase of 10.8% over the four-year period.
For average residential customers relying on natural gas, using about 61 therms a month, their bills would rise from $91.06 in January 2026 to $100.46 by 2030. This includes an initial increase of $4.14 in 2027, followed by smaller annual increases leading up to 2030.
Lena Funston, a spokesperson for Avista, noted that the timing of these proposed rate hikes is particularly sensitive, as consumers are already grappling with rising prices for groceries, rent, and other essential living expenses. "We take our role in the community very seriously," Funston remarked. "We want to be a good community partner. We are very aware of what we are asking for, and we truly believe it is fair and reasonable. We will navigate this process with the commission."
Several factors drive these proposed cost increases. Funston explained that one major element is the rising cost of power. Avista generates about 49% of its electricity through hydroelectric sources, taking advantage of water flowing through turbines at dams. Additionally, around 32% comes from natural gas-powered electricity generation.
Previously, Avista sourced roughly 8% of its power from a coal-fired plant in Colstrip, Montana, but that source ceased operations on December 31 due to compliance with a state law mandating the end of coal use for power generation by 2025. The remaining 11% is generated through wind and biomass resources.
"We are aligning with established clean energy policies that have been in place for several years now," Funston said. "However, this transition necessitates sourcing energy from alternatives that are proving to be more expensive compared to previous options."
Alongside rising energy prices, Avista continues to commit resources toward the maintenance and upgrade of thousands of miles of infrastructure, including pipes, poles, and wires, which serve to deliver electricity to over 400,000 customers across Washington, North Idaho, and parts of Oregon.
"We consistently evaluate the health of our system and remove outdated equipment," Funston explained. Maintenance includes aging dams built between 60 and 100 years ago, which require ongoing attention.
Moreover, the recent trend of dry summers has prompted increased costs associated with wildfire safety and prevention. Funston elaborated, "Most of that refers to maintenance on our lines, such as managing vegetation to prevent trees from encroaching on our right of way. This includes replacing wooden poles with more durable steel poles and implementing fire mesh on existing structures—all of which can be quite costly."
In addition to the expenses incurred for upgrading the power grid, Avista, like many others, faces rising insurance costs attributed to wildfire risks. "These factors all contribute to the overall costs associated with wildfire preparedness,” she stated.
To put this into perspective, as of January 1, 2020, the average monthly bill for customers utilizing 932 kilowatts of electricity was $83.48, according to Avista data. Should the UTC approve the proposed rate increases for 2030, this would mean that the average customer could expect to pay around $157.94 per month—an alarming increase of nearly 89% from what they were paying in 2020.
"We understand that many customers are facing financial hardships," Funston admitted. "We strive to make it as manageable as possible for them to meet their energy needs while ensuring safe and reliable energy delivery."
She highlighted that Avista offers several programs designed to assist customers, including Comfort Level Billing, which smooths out payment fluctuations to help avoid spikes during high-usage months. Additionally, the company is ready to connect customers with local agencies that can provide support for financial difficulties, weatherproofing older homes, and addressing other concerns.
"If customers are struggling, we encourage them to reach out to us so we can explore ways to assist them," Funston concluded.
