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.
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Customers have told us that they’re interested in knowing how rates are set. Read the recent print ads that provides a summary.
Previous Conversation Starters
We’re requesting to lower your natural gas rates.
Annually we make Purchase Gas Cost Adjustment or PGA filings with the utility commissions in Washington, Idaho and Oregon. In these filings we request that customer prices be adjusted up or down to reflect the fluctuation in wholesale natural gas prices. We do not mark up the cost of natural gas purchased to meet your needs.
Natural gas prices for our residential customers in Oregon could decrease by 21 percent effective November 1, if the request we filed on August 31 is approved by the Public Utility Commission of Oregon. Rates for other customer groups would also decrease by more than 20 percent.
In mid-September we will file PGAs in Washington and Idaho requesting to decrease natural gas rates for our customers. It will be the third time this year that we have requested to lower customer rates in the two states because of declining wholesale natural gas prices. If approved by the utility commissions in Washington and Idaho, the decreases will be effective November 1, in time for the winter 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 75 percent of your monthly bill. We have purchasing plans and decades of experience that help keep these costs as low as possible, but ultimately the wholesale price is set by the market. The rate decreases that will be effective November 1, pending approval by the utility commissions, will be in this portion of your bill.
Currently, the remaining 25 percent of your monthly bill covers our costs for delivering natural gas – the equipment and people needed to provide safe and reliable delivery of service. In Washington and Oregon, there are pending general rate cases before the utility commissions which could increase this portion of your monthly natural gas bill. Find more information on these cases.
Frequently Asked Questions about Natural Gas
How much are rates decreasing?
Natural gas prices for our residential customers in Oregon could decrease by 21 percent effective November 1, if the request we filed on August 31 is approved by the Public Utility Commission of Oregon. Rates are decreasing again because wholesale natural gas prices have continued to decline since Nov. 1, 2008, when our last PGA decrease was effective in Oregon.
In mid-September we will file a Purchase Gas Cost Adjustment in Washington and Idaho requesting to decrease natural gas rates. It will be the third time this year that we have requested to lower your rates because of declining wholesale natural gas prices. So far this year, your natural gas rates have decreased by about 11 percent. If approved by the utility commissions in both states, the latest decreases will be effective November 1, in time for the winter heating season.
Are natural gas rates going down for commercial and industrial customers also?
Yes. Natural gas rates for all of our customer groups will go down November 1, if our PGA requests are approved by the utility commissions in each state. The amount of the decreases will vary 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.