Avista customers to receive $8.4 million refund after 2015 rate case appeal

OLYMPIA – The Washington Utilities and Transportation Commission today directed Avista Corporation to refund $8.4 million to its customers in Washington following a Court of Appeals order reversing a portion of the commission’s decision on the company’s 2015 general rate case.

Avista’s electric customers will see refunds of $4,919,000 and natural gas customers will receive $3,571,000 in refunds. The exact amount customers will see on their bills, and method of distribution, will be determined in Avista’s ongoing 2019 general rate case (Dockets UE-190334 and UG-190335). The commission must issue an order in the 2019 rate case by March 31.

In 2018, the Washington State Court of Appeals reversed a portion of the commission’s order related to estimates of the company’s future plant costs and remanded the case to the commission for further review.

The Court of Appeals directed the commission to reevaluate the company’s rates without including adjustments for major investments that would not have been operational and beneficial to customers before the rates went into effect. The refunds are a result of removing those future-looking investments from the rate calculation.

Spokane-based Avista serves more than 240,000 electric and nearly 153,000 natural gas customers in eastern Washington.

The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.