Home > Rates and Pricing > How Rates are SetHow Rates are Set
Avista is a regulated utility. That term – regulated utility – is important because it means regulators set our rates. Sometimes there’s a misperception that we can raise rates whenever we want.
Actually the opposite is true. Because we’re a regulated utility, we must go through a detailed public process when we request to change rates, either up or down. We must prove that the rate change is justified, or it won’t be approved.
When our costs change, Avista files a request with the state regulatory commission to adjust rates. They scrutinize every detail of our costs, review thousands of pages of information and take public testimony. Based on its investigation, the commission sets rates it believes serve the public interest – rates that are reasonable and fair for customers, while allowing Avista the opportunity to be a viable, healthy business and earn a fair return for shareholders. That's important so we can continue delivering safe, reliable energy.
The amount of time it takes for the commission to rule on a rate request varies by state and by the type of request being made. To make a decision on a general rate case request, the:
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Washington Utilities and Transportation Commission (WUTC) generally has up to 11 months
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Oregon Public Utility Commission (OPUC) has up to 10 months
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Idaho Public Utilities Commission (IPUC) has up to seven months.