Spokane-based Avista Corp. has reached a settlement agreement with all parties involved in its Idaho general rate cases, the energy company announced in a press release.

If the settlement is approved by the Idaho Public Utilities Commission, a typical residential electric customer would see a 6.7%, or $6.95 monthly, increase on their bill beginning Sept. 1. An additional increase of 4.7%, or $5.22 monthly, would go into effect Sept. 1, 2026.

A typical residential natural gas customer would see a 6.8%, or $4.11 monthly, increase on their bill effective Sept. 1, with no additional rate hike for natural gas the following year.

The settlement agreement would increase Avista’s annual base electric revenues by $19.5 million, or 6.3%, effective Sept. 1, and by $14.7 million, or 4.5%, effective Sept. 1, 2026.

The settlement would increase Avista’s annual base natural gas revenues by $4.6 million, or 9.2%, effective Sept. 1, and reduce base revenues by $200,000, or 0.4%, effective Sept. 1, 2026.

“This is a constructive outcome,” says Avista President and CEO Heather Rosentrater in the press release. “Our customers will benefit from longer recovery periods for certain deferred costs, which mitigates the bill impact of improved recovery of our costs to serve our customers. This agreement provides us with the opportunity to earn a fair return in Idaho while we invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect.”

Other parties involved in the settlement agreement include the staff of the Idaho Public Utilities Commission, Clearwater Paper Corp., Idaho Forest Group LLC, and Walmart Inc.

Avista Utilities, an operating division of Avista Corp., 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.