The Oregon Public Utility Commission approved a settlement between Avista, a natural gas utility, and advocacy groups.
Avista had previously requested a 7% rate increase for residential customers. But the company agreed to a reduced increase after green energy and consumer advocates stepped in.
Single-family homes are expected to see an average monthly increase of $1.36. Customers in multifamily housing, like apartments, will see an average decrease of 30 cents.
“The approved increase balances the utility’s need to recover the cost of providing safe service with the commission’s obligation to protect customers — particularly the most vulnerable customers — from unnecessary rate impacts,” OPUC Commission Chair Letha Tawney said in a statement.
“This is the first time in Oregon that a gas utility has committed to … fund that transition to electricity.”Oregon Citizens' Utility Board
The company has also agreed to start a pilot program to get customers to switch to all-electric appliances. Avista is working to replace aging plastic piping in its system, which has caused explosions due to premature failures. Encouraging customers to switch to electric appliances could cost less than ripping up roads to replace pipes.
"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," said a statement from the Oregon Citizens' Utility Board, a nonprofit that participated in the negotiations.
The organization also applauded improvements to assistance programs for low-income customers, including better notifications when a customer misses a payment and a commitment to conduct a third-party study on the needs of low-income communities.
The rate changes take effect Sept. 1, 2025, due to a new state law prohibiting residential rate increases from November through March, when heating costs are typically higher and rate increase can be more burdensome.
