Avista Corp. has reached a settlement agreement with all parties involved in its Oregon natural gas general-rate case, the Spokane-based company announced in a press release.

If approved by the Oregon Public Utility Commission, rates for a typical residential natural gas customer would increase by 2%, or $1.36 monthly, beginning Sept. 1.

The settlement would result in a base revenue increase of $4.2 million, down from the $7.8 million that would have been generated by Avista’s original request.

As part of the settlement, the parties agreed to accelerate the use of certain customer tax credits to partially mitigate the impact on customers’ bills, over a three-year period.

"Our goal is to provide safe, reliable energy for our customers and timely recovery of our costs allows us to maintain the infrastructure crucial to delivering on this goal,” says Avista president and CEO Heather Rosentrater in the release.

In addition to Avista, parties involved in the settlement agreement include the staff of the Oregon Public Utility Commission, the Oregon Citizens’ Utility Board, the Alliance of Western Energy Consumers, and the joint intervenor Climate Solutions/Green Energy Institute at Lewis & Clark Law School.

Avista Utilities, an operating division of Avista Corp., serves about 107,000 customers in Oregon. In all, the utility provides electric service to 422,000 customers and natural gas to 383,000 customers. Its service territory covers 30,000 square miles in Washington, Idaho, and Oregon.