CUB Wins Big for Avista Customers
Posted on April 3, 2025 by Charlotte Shuff
Tags, Energy
Avista gas customers in Southern and Eastern Oregon will see a small change on their billing rates this fall. Average single-family customers will see an increase of 2% ($1.36/month) while multi-family customers will see a small decrease of -1% (-$0.30/month).
Avista originally requested a 7% increase in rates for household customers. CUB advocates joined negotiations last month that ended in an agreement to cut the requested amount by nearly 50% overall, with more savings for households. The agreement saves customers money, introduces stronger consumer protections, and moves the gas utility toward reducing emissions and fewer pipeline investments.
This outcome includes a landmark agreement for Avista to pilot a program for moving homes to all-electric. This is the first time in Oregon that a gas utility has committed to not only allowing customers to receive incentives for switching away from gas, but also the first time a gas utility has agreed to fund that transition to electricity.
Want even more information on this case? Access the full docket through the Public Utility Commission!
Avista’s Rate Increase Request Reduced in Negotiations
After months of investigation and negotiation, Avista, CUB, regulators, and other parties came to an agreement. We expect the Commission to approve this agreement later this summer, with new billing rates going into effect September 1, 2025.
Expected Customer Impacts
The impact on household bills will be different for the type of home and region. These regional differences are based on different weather conditions across the state. For example, the colder weather in Klamath Falls will create a larger impact on winter bills than in Ashland.
For customers living in multi-family homes:
CUB’s investigation found that many households living in multi-family units are not signed up for multi-family rates. Multi-family homes include duplexes, apartments, condos, assisted living housing, etc. Check your bill and identify which “rate schedule” is listed on your bill (page 2 under “Natural Gas Detail”). Multi-family homes are Rate Schedule 411. If you live in a multi-family unit and see schedule 410, contact Avista customer service at 1 (800) 227-9187.
Avista’s Request vs. The Final Agreement
Avista’s request to increase customers’ billing rates came from three main categories in 2025:
- Investments: replacing old pipes, new customer connections, general system maintenance
- Higher Profits: increasing how much the company can earn for investors
- Inflation: higher material and labor costs
CUB was particularly concerned with the request to increase profits and investments that would expand the gas system. Both of these requests could have had long-lasting consequences for Oregonians for many years to come.
Through the negotiations with advocates, regulators, and Avista, this initial request was significantly cut:
- No profit margin increases: Avista’s investors will not see higher profit margins, saving customers millions of dollars ($2.4 million saved)
- No anti-climate litigation costs: Avista will not pass on costs to customers for the company’s lawsuit to stop Oregon’s Climate Protection Program ($83,000 saved)
- No gas association dues: Avista will not pass on costs to customers for membership dues to the American Gas Association or the NW Gas Association ($89,000 saved)
- General costs cut: Customers avoided an additional $400,000 in general costs of service
Overall, the rate increase was reduced by $3.6 million, nearly a 50% reduction, adding a total of $4.2 million to customers’ bills.
Additional Wins for Avista Customers
In addition to significantly reducing the increase in billing rates, Avista customers will see additional wins through CUB’s advocacy on this case.
Customer wins include:
- Improving programs for low-income energy efficiency and debt management programs
- Expanding consideration for alternatives to investing in new pipelines
- A pilot program for providing an incentive to move homes to all-electric
Improving Programs for Low-Income Customers
Avista’s customers in Oregon will see improvements in programs supporting low-income households. This includes improvements in the company’s program to help manage past-due bills, energy efficiency programs, and further study of the needs of low-income customers.
Currently, Avista offers a program that helps customers spread out payments of past due bills over a period of time. This program offers payment arrangements when customers get behind and need more time to catch up. Under the new agreement, Avista will improve notification policies for customers who miss a payment to help people stay connected. Avista also provides hardship grants to forgive utility bill debt for qualified customers.
Avista has agreed to contract an independent 3rd party to conduct a Low-Income Needs Assessment and Energy Burden Assessment. These two studies will help inform continued improvements in programs to support customers who have limited incomes in accessing energy services. This will also help improve energy efficiency programs, such as home weatherization. These programs largely impact seniors, people with disabilities, and many more.
More Consideration of Non-Pipe Investments
Under the new agreement, Avista will consider alternatives to expanding or replacing pipes more often. In past years, the utility agreed to consider non-pipe options for projects over $1 million. Now, Avista will consider non-pipe options for projects over $500,000—a 50% reduction from the status quo. This change will help lower project costs, reduce emissions, and save customers money.
The future of gas is uncertain and potentially harmful to customers. As Oregon moves forward with addressing climate change, the future of fossil gas, like the methane that heats our homes, is uncertain. Electric appliances are getting more efficient and cheaper. Renewable energy may make electricity prices more favorable than gas. Many people may leave the gas system by choice in favor of cleaner and cheaper energy. We need to make sure that those who do not have the choice to leave gas—renters and those with limited financial resources—are not left footing the bill for unwise investments made today.
Pilot All-Electric Incentive Program
The largest investment Avista is making in its system is a pipe replacement project. One particular type of pipe, called Aldyl-A, that was used in the 1970s, is now considered a safety concern. Replacing these pipes requires tearing up roads and other infrastructure, which really adds up across all of Avista’s customers. Since this type of pipe was widely used, getting it off the system is a massive (and expensive) but necessary undertaking.
CUB proposed using solutions that would not require a pipe at all. Since this replacement is extremely expensive, our analysis showed switching customers to all-electric as a more cost-effective option.
Now, Avista will pilot a program to offer incentives to switch homes to all-electric appliances. In this voluntary program, pipe replacements will be avoided by giving customers an option to leave the gas system. Avista will also ensure that low-income customers are included in this pilot, which may help many receive necessary home upgrades and benefits. This program will help avoid driving up bills for remaining customers, reduce the cost of highly energy-efficient appliances for those who leave, and help Avista meet its emission reduction requirements—a win-win-win!
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08/27/25 | 2 Comments | CUB Wins Big for Avista Customers