We know our customers want rates that are reasonable and fair. So we work hard to control our two main costs – the cost of energy and the cost of delivering that energy.
Avista is a regulated utility, so when those costs do rise, we can’t simply raise rates. Because we’re regulated, we go through a long and detailed process with lots of public scrutiny. That process is important, because it adds a further level of review and ensures that the public interest is served.
Rates will always be a topic of conversation, so we invite you to find out more about how rates are set and to share your point of view.
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What it means to be a regulated utility.
A goal we all share
Safe, reliable energy is important to all our customers – and to us. And we all want rates to be reasonable and fair.
When costs go up, some types of businesses can respond by simply raising their prices. Avista is different. We’re a regulated utility – and because we’re regulated, our rates are set through a long, detailed and transparent public process.
The bottom line is that our rates can’t change without state approval.
Who are the regulators?
In Washington, Idaho and Oregon, independent utility regulators are appointed by the governors. The regulatory system is designed to ensure an affordable, reliable and adequate supply of energy for our customers.
In the states where Avista operates, the regulatory commissions are:
Washington Utilities & Transportation Commission
Idaho Public Utilities Commission
Oregon Public Utilities Commission
In addition to looking at every aspect of our costs, the regulatory process takes testimony from the public and groups like the Citizens Utility Board of Oregon, Public Counsel in Washington and the Idaho Community Action Network. These groups and others make recommendations, but the decision-making authority rests with the commission.
An independent review
The highly detailed utility commission review provides our customers with an additional, independent look at costs and rates. The process was designed to provide accountability and to make sure the interests of customers and shareholders are both protected.
Questions and Answers
View frequently asked questions about what it means to be a regulated utility.
Read the ad
Customers have told us that they’re interested in knowing how rates are set. Read the recent print ads that provides a summary.
We have lowered your natural gas rates
Steep declines in wholesale natural gas prices caused by lower demand and an abundance of supplies have resulted in the lowest natural gas rates for our customers since 2001 in Washington and Idaho and 2004 in Oregon. The most recent decreases were effective Nov. 1, in all three states - that’s very good news for our customers this heating season.
Did you know that your natural gas rates cover two types of costs?
First is the wholesale cost of natural gas which currently makes up about two-thirds of your monthly bill. We pass that cost along without marking it up. We work hard to keep that costs low through purchasing plans and decades of experience, but ultimately the price is set by the wholesale market and can fluctuate based on market conditions. So, it makes sense to continue making smart energy choices this winter.
The remaining one-third of your monthly bill is the cost of delivering natural gas – the equipment and the people needed to provide safe, reliable service.
Frequently Asked Questions about Natural Gas
How much have rates decreased?
Residential customers in Washington have seen their natural gas rates decrease by 33 percent since mid-January 2009 and Idaho residential customers by 30 percent. In Oregon, a 20 percent decrease in natural gas costs was offset by a 7 percent increase in the cost of delivering the natural gas. That means, residential customers in Oregon saw their rates go down on Nov1. by an overall 13 percent.
Did natural gas rates go down for commercial and industrial customers also?
Yes. Natural gas rates for all of our customer groups decreased on Nov. 1, with the amount of the decreases varying by state.
Why are the decreases different in Washington, Idaho and Oregon?
The amount of each decrease varies by state because of timing – the date of the last PGA adjustment – and the amount of natural gas used by customers in each state.
Meet Kevin Christie
Kevin Christie is Director of Gas Supply at Avista. In this video he talks about what goes into the price you pay for natural gas. You can watch the video, or read an extended transcript.