Avista: Electricity rates in Othello, Warden, Connell and Ritzville to jump due to rising power costs

SPOKANE — According to a press release, Avista Corp. has filed a request with the Washington Utilities and Transportation Commission (WUTC) to raise electric rates for its Washington customers by $15.3 million, or an average of 2.1%, beginning July 1, 2025. Residents in Othello, Warden, Ritzville and Connell will be affected by the rates. 

The proposed rate adjustment stems from the company’s need to recover deferred power supply costs tracked under its Energy Recovery Mechanism (ERM). The ERM is a Commission-approved program that measures the difference between actual power supply expenses and the amounts previously authorized by regulators.

Avista reported a cumulative ERM balance of $34.3 million—surpassing the $30 million threshold that triggers customer rate changes under the mechanism. The utility attributed the increased power supply costs in 2024 primarily to diminished hydroelectric generation, a consequence of below-average precipitation and snowpack across the region. Additional prior-year balances also contributed to the total.

Currently, Avista is recouping $19 million in ERM-related expenses through customer rates, but that charge is scheduled to expire on July 1. The newly proposed increase would replace it, resulting in a net customer impact of $15.3 million, to be recovered over a 12-month period.

If approved by the WUTC, the average residential customer using 945 kilowatt hours per month would see their monthly bill rise by $2.55—from $120.86 to $123.41.

The proposed increases vary by customer class:

• Residential Service (Schedules 1/7/8): 2.1%

• General Service (Schedules 11/12/13/17/18): 1.8%

• Large General Service (Schedules 21/22/23): 2.2%

• Extra Large General Service (Schedule 25/Sp Ct): 2.7%

• Pumping Service (Schedules 30/31/32): 1.8%

• Street & Area Lighting (Schedules 42-48): 0.4%

The utility emphasized that the filing is consistent with the mechanics of the ERM, which aims to fairly balance costs between the company and its customers by adjusting for real-time variances in energy supply expenses.

The Commission will evaluate the filing and determine whether to approve the proposed adjustments following a review process that includes opportunities for public comment.