20250228AVU to Staff 5 Attachment A - 2024 ID 4th Qtr - Combined.pdf

Office of the Secretary
Service Date
September 27,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-24-08
CORPORATION'S FIXED COST )
ADJUSTMENT MECHANISM(FCA) ) ORDER NO. 36335
ANNUAL RATE ADJUSTMENT )
On July 31, 2024, Avista Corporation ("Company") applied for (1) approval of Fixed
Cost Adjustment ("FCA") deferrals for July 1, 2023, through June 30, 2024; (2) authorization to
adjust its FCA rates for electric service from October 1, 2024, through September 30, 2025; and
(3) approval of its proposed corresponding modifications to Tariff Schedule 75. The Company
requested that the proposed FCA rates have an October 1, 2024, effective date and that the
Commission process the request via Modified Procedure.
On August 21, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure, setting public comment and Company reply deadlines. Order No. 36299.
Staff filed the only comments.
Having reviewed the record, the Commission now issues this Order approving the
Company's Application.
BACKGROUND
The FCA is a rate adjustment mechanism designed to break the link between the energy
a utility sells and the revenue it collects to recover fixed costs 1 of providing service, thus
decoupling the utility's revenues from its customers' energy usage. This decoupling removes a
utility's incentive to increase sales to increase revenue and profits and encourages energy
conservation.
The Commission originally approved a three-year pilot program of the Company's
FCA as part of the approved settlement of the Company's 2015 rate case. Order No. 33437 at 10.
The parties to the Company's rate case agreed to review the program's effectiveness at the end of
its second full year, to ensure the program was functioning as intended. On June 15, 2018, the
Commission approved an addendum to the settlement that extended the term of the Company's
' "Fixed costs"are a utility's costs to provide service, such as infrastructure and customer service,which do not vary
with energy use,output,or production,and remain relatively stable between rate cases.
ORDER NO. 36335 1

FCA pilot for an additional year. Order No. 34085. On December 13, 2019, the Commission
authorized the Company to extend its FCA mechanism for both gas and electric customers through
March 31, 2025. Order No. 34502.
THE APPLICATION
The Company proposed changing the FCA rate for the Residential Group (Schedule 1)
from a present rebate rate of 0.5400 per kilowatt-hour("kWh")to a rebate rate of 0.1290 per kWh
and changing the rate for the Non-Residential Group (Schedules 11, 12, 21, 22, 31 and 32) from a
present rebate rate of 0.0480 per kWh to a proposed surcharge rate of 0.0040 per kWh. According
to the Company, the Residential Group rate change represents a$5.6 million, or 3.8%, increase to
Schedule 1 customers, and the Non-Residential Group rate change represents a $0.6 million, or
.5% increase, to the remaining schedules. If approved, the monthly bill of residential customers
using an average of 927 kWh per month would increase by $3.81.
The Company represented that it recorded$1,814,109 in the rebate direction in deferred
revenue for the electric Residential Group for the 12 months ending June 30, 2024. The Company
stated that the proposed rate of 0.1290 per kWh is designed to rebate$1,757,929 to the Company's
Schedule 1 customers. The Company represented that the deferral balance for the 12 months
ending June 30, 2024, plus interest through September, and any outstanding balance approved for
recovery in the prior year FCA rate filing would be transferred into a regulatory liability balancing
account, and the balance in the account would be reduced each month by the revenue collected
under the tariff.
The Company represented that it recorded $37,939 in the surcharge direction in
deferred revenue for the electric Non-Residential Group for the 12 months ending June 30, 2024.
The Company stated that the proposed surcharge rate of 0.0040 per kWh is designed to recover
$45,797 from commercial and industrial customers served under rate Schedules 11, 12,21, 22, 31,
and 32. The Company represented that the deferral balance, plus interest through September,
would be transferred into a regulatory asset balancing account, and the balance in the account
would be reduced each month by the revenue collected under the tariff.
The Company also submitted its Residential and Non-Residential rate calculations,
support for its deferrals, and its proposed FCA Schedule 75 with its Application.
ORDER NO. 36335 2

STAFF COMMENTS
Staff reviewed the Company's Application, the calculations of its residential and non-
residential FCA rates, and the Company's workpapers. Staff confirmed the accuracy of the
Company's calculations of the FCA deferral balances and associated rates for both classes.
Additionally, Staff reviewed the amortization from the prior deferral balance, the kWh sales for
the FCA year, new and existing customer counts, the revenue from fixed costs collections, the
interest calculations, and the submitted revenue reports. Staff also verified that the authorized
amounts used to calculate the deferral were the same amounts used to determine base rates
authorized during the deferral period. Based on these reviews, Staff recommended that the
Commission approve the Company's FCA application.
The following table presents the effect of expiring FCA rates and the proposed 2024
rates.
Table No. 1: Present and Proposed FCA Surcharge Changes
Expiring Present Proposed FCA Change in FCA
FCA Revenue Revenue Revenue
Residential ($7,358,773) ($1,757,929) $5,600,844
Non-Residential ($549,565) $45,797 $595,362
With respect to energy consumption, the residential customer FCA deferrals, for the
FCA deferral period, were the result of higher monthly use-per-customer("UPC") than what was
embedded in the 2022 test year. The FCA deferrals for non-residential customers were the result
of slightly lower monthly UPC than what was embedded in the 2022 test year.
Staff noted that weather has a significant effect on the FCA. During the FCA deferral
period at issue in this case, temperatures were colder than normal across the Company's service
territory. Additionally, Staff observed that Idaho customers have generated energy efficiency
savings by participating in the Company's Demand-Side Management programs.
Staff reviewed the combined impact of the FCA proposed in this case and the
Company's proposed Power Cost Adjustment("PCA") filing, Case No. AVU-E-24-07. Table No.
2 summarizes the overall impact to electric revenues of the four filings.
ORDER NO. 36335 3

Table No. 2: Summary of Overall Impact to Electric Revenues
Filing Change in Revenues % Change
PCA $6.2 million 2.0%
FCA ($22.8 million) -7.4%
Total ($16.6 million) -5.4%
Staff also reviewed the Company's press release and customer notice that were
included with its Application. The notice was included with bills mailed to customers between
August 2, 2024, and August 30, 2024. Staff believed that both met the requirements of Rule 125
of the Commission's Rules of Procedure, but that some customers would not have adequate time
to submit comments before the September 10, 2024 comment deadline. Accordingly, Staff
recommended that the Commission consider late filed comments by customers.
STAFF RECOMMENDATION
Staff recommended that the Commission approve the Company's Application, as filed.
Specifically, Staff recommended Commission approval of the Company's proposed Schedule 75,
as filed, with a Residential rebate rate of 0.1290 per kWh and Non-Residential surcharge rate of
0.0040 per kWh for electric service from October 1, 2024, through September 30, 2025.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company and this matter pursuant to Idaho
Code §§ 61-502 and 61-503. The Commission has the express statutory authority to investigate
rates, charges, rules, regulations, practices, and contracts of public utilities and to determine
whether they are just, reasonable, preferential, discriminatory, or in violation of any provision of
law, and may fix the same by order. Idaho Code §§ 61-502 and 61-503.
The Commission has reviewed the record and finds the Company's requested FCA
Residential Group (Schedule 1) rebate rate of 0.1290 per kWh, and FCA Non-Residential Group
(Schedules 11, 12, 21, 22, 31, and 32) surcharge rate of 0.0040 per kWh to be fair, just, and
reasonable. The Commission finds the Company correctly calculated its deferral balances. The
Commission thus approves the Company's Application and proposed revisions to Schedule 75, as
filed, effective October 1, 2024.
ORDER
IT IS HEREBY ORDERED that the Company's FCA deferrals for the period of July
1, 2023, through June 30, 2024, are approved.
ORDER NO. 36335 4

IT IS FURTHER ORDERED that the Company's request for a FCA rebate rate of
0.1290 per kWh for the Residential Group, and a FCA surcharge rate of 0.0040 per kWh for the
Non-Residential Group is approved.
IT IS FURTHER ORDERED the Company's proposed modifications to Schedule 75
are approved as filed, effective October 1, 2024.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code §§ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27t1i day
of September 2024.
ERIC ANDERSON, PRESIDENT
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ORDER NO. 36335 5

Office of the Secretary
Service Date
October 1,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE POWER COST ) CASE NO. AVU-E-24-07
ADJUSTMENT (PCA) ANNUAL RATE )
ADJUSTMENT FILING OF AVISTA ) ORDER NO. 36339
CORPORATION )
On July 31, 2024, Avista Corporation, doing business as Avista Utilities ("Company"),
filed its annual Power Cost Adjustment ("PCA") application ("Application"). The PCA is a
mechanism used to track changes in revenues and costs associated with variations in hydroelectric
generation, secondary prices, thermal fuel costs, and changes in power contract revenues and
expenses. The present PCA surcharge is a rate of 0.499¢ per kilowatt-hour, based on an overall
surcharge of approximately $15.7 million, which was approved by the Commission in Order No.
35937, dated September 28, 2023, and is effective October 1, 2023, through September 30, 2024.
The Company requested that the Commission issue an order approving the level of power
costs deferred in the rebate direction for the period of July 1, 2023, through June 30, 2024, and
approving a PCA rebate rate of 0.205¢ per kilowatt-hour to be effective October 1, 2024.
Application at 1.
The Company represented that the proposed PCA rate adjustment of 0.2050 per kilowatt-
hour would rebate approximately$6.6 million to customers effective October 1,2024.Id. at 3. The
Company stated that the rebate is primarily associated with power supply costs that were lower
than those included in retail rates, due to lower wholesale electric and natural gas prices, and that
the net effect of the expiring surcharge, and the proposed rebate, is an overall decrease in revenue
of approximately 7.4 percent, or$22.8 million. Id.
STAFF COMMENTS
Commission Staff("Staff')reviewed the Company's Application,testimonies of Company
witnesses Kevin Holland and Kaylene Schultz, and additional information provided in responses
to production requests. Staff Comments at 2. Staff also reviewed Energy Imbalance Market
("EIM")benefits,Washington Climate Commitment Act("CCA") allowance costs,Palouse Wind
and Rattlesnake Flat Wind stipulated adjustments from the previous general rate case, Clearwater-
related items, and Chelan Hydro and Columbia Basin Hydro ("CBH") stipulated adjustments from
the previous general rate case.Id.
ORDER NO. 36339 1

Based on its review, Staff believed the requested PCA is generally prudent and
recommended approval of the Company's Application updating Schedule 66, Temporary Power
Cost Adjustment—Idaho with some adjustments. Id.
Table No. 1: Summary of Power Supply and Deferrals for Current PCA Year - Idaho
Idaho Power Cost Deferral Amount
LCA1—Idaho Sales Adjustment $ (1,160,814)
Net Power Supply—Actual Minus Authorized (3,458,527)
Clearwater Adjustment(Without Sharing) (823,962)
REC2 Revenues (2,226,028)
Schedule 25P Net Cost (478,630)
EIM3 Incremental O&M 379,503
Total Cost(Subject to Company Sharing) $ (7,768,458)
Sharing Percentage over Authorized 90%
Total Idaho Deferral Amount(W/out Clearwater Adjustment) $ (6,991,612)
Balancing Account
Beginning Balance as of July 2023 16,653,537
Incremental Deferral (6,991,612)
Amortizations (12,354,708)
Projected Amortization July 2024 through September 2024 (3,839,850)
Chelan Adjustment (581,315)
RPS4 Compliance(REC Retirement Benefit)Adjustment (1,058,163)
Interests 227,309
Projected Ending Balance through September 2024 (7,944,802)
1 Load Change Adjustment
z Renewable Energy Credit
3 Energy Imbalance Market
'Renewable Portfolio Standards—Washington WA I-937
5 Calculated using the Authorized Customer Deposit Rate of 2%over a 6-month period and 5%over a 6-month period.
Clearwater-related Items
Staff noted that in removing Clearwater's actual expenses, the Company mistakenly
calculated them using the incorrect avoided cost rates for January through June of 2024. Id. at 6.
Staff represented that by using the correct avoided cost rates, it resulted in a reduction in actual
system Purchased Power expense of$2,390,366(Idaho Allocation is$823,962),and after applying
the authorized jurisdictional allocation factor and customer sharing, Idaho customers would see an
additional rebate of$741,566.Id. at 6-7.
ORDER NO. 36339 2

Columbia Basin Hydro ("CBH")/Chelan Hydro Purchase Power Agreements
Staff represented that the Settlement approved through Order No. 35909 in Case No.AVU-
E-23-01, stipulated that the cost of CBH and Chelan Hydro would be included in the PCA using
the "lesser of market or contract cost, and to allow the Company to recover all or some of the
approximately $1.007 million in transmission cost to the extent that market prices are higher than
the cost of CBH generation with the cost of transmission included. Id. at 7.
However, when Staff reviewed the application of the mechanism designed to meet that
agreement, Staff believed the mechanism may be unfairly accounting for the cost of the contract
relative to the benefits by using unit cost"lower of monthly comparisons.Id. Based on that, Staff
believed that an adjustment amount of$581,315 instead of the $1,399,513 was more reasonable
for the current circumstances in this case and that the mechanism should be re-evaluated prior to
the next PCA. Id. at 7-8.
Staff recommended an adjustment of$581,315 and that the Company, Staff, and interested
parties meet after the case is closed to re-evaluate the mechanism to ensure it protects Idaho
customers while balancing benefits the contract may provide prior to filing the next PCA.Id. at 8.
CCA Allowance Costs
Staff represented that although all the CCA allowance expenses associated with the
Boulder Park generation are excluded from NPC, Staff was concerned that the Company included
Idaho's portion of CCA allowance costs in Boulder Park's dispatch costs. Id. at 6. Staff did not
recommend a specific adjustment for this case; however, Staff recommended that the Company
track the cost impact of using a Boulder Park dispatch cost without the cost of allowances over the
remaining PCA year to be reported in next year's PCA filing.Id.
Staff Recommendation
Staff recommended the Commission approve a deferral balance recovery amount of
$7,944,802, and the resulting rates with an effective date of October 1, 2024. Staff also
recommended the Commission:
1. Approve the adjustment for Clearwater Purchased Power Cost reducing the
deferral by an incremental $741,566;
2. Approve the adjustment for Chelan Hydro purchased power cost reducing the
deferral by $581,315;
3. Order the Company to file conforming tariffs for Schedule 66 Temporary Power
Cost Adjustment—Idaho, reflecting the Commission-approved rates;
ORDER NO. 36339 3

4. Order the Company, Staff, and interested parties to meet after the case is closed
to re-evaluate the"lesser of market or contract"mechanism to ensure it protects
Idaho customers while balancing benefits the contract may provide, prior to
filing the next PCA;
5. Order the Company to track the cost impact of using a Boulder Park dispatch
cost without the cost of allowances over the remaining PCA year to be reported
in next year's PCA filing; and
6. Consider late-filed comments from customers.
Id. at 10-11.
PUBLIC COMMENTS
The Commission received four (4) public comments in this case. The comments voiced
concerns regarding the increase in energy prices to consumers in recent years, and about grid
technology and reliability.
COMPANY REPLY COMMENTS
The Company represented that it supported the tariff changes and annual reporting
recommendation proposed by Staff, and that the Company will submit updated tariff sheets upon
approval of the updated PCA rates as noted by Staff. Company Reply Comments at 1.
The Company agreed with the adjustment to the Clearwater expense due to an incorrect
avoided cost rate for January through June of 2024, resulting in an additional rebate to Idaho
customers of$741,566, after the 90/10 sharing. Id.
The Company also supported the Chelan Hydro recommendation as detailed by Staff,
noting that the Company and Staff met on numerous occasions over the past several weeks to
discuss the mechanics of the Chelan Hydro adjustment.Id. The Company committed to meet with
Staff and interested parties after the case is closed to re-evaluate the mechanism to ensure it
protects Idaho customers while balancing benefits the contract may provide prior to filing the next
PCA. Id.
With respect to CCA Allowance Costs, the Company was supportive of Staffs
recommendation and the Company committed to the additional reporting to track the cost impact
of using a Boulder Park dispatch cost without the cost of allowances over the remaining PCA year
to be reported in next year's PCA filing.Id. at 2.
ORDER NO. 36339 4

COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
Having reviewed the Application,all submitted comments,and the record,the Commission
finds it fair,just, and reasonable to approve a deferral balance recovery amount of$7,944,802, and
the resulting rates with an effective date of October 1, 2024. This approval incorporates the
adjustments for the Clearwater Purchased Power Cost and Chelan Hydro Purchased Power Cost
as outlined by Staff and agreed to by the Company. The Commission appreciates the work done
by both Staff and the Company in this case.
With respect to the mechanism developed as a result of Order No. 35909 in Case No.AVU-
E-23-01, the Company, Staff, and any interested parties shall meet prior to the filing of the next
PCA to reevaluate the mechanism to ensure it protects Idaho customers while balancing any
benefits provided. Additionally, the Company shall track the cost impact of using a Boulder Park
dispatch cost without the cost of allowances over the remaining PCA year and submit that data in
next year's PCA filing.
ORDER
IT IS HEREBY ORDERED that the Company's Application is approved as adjusted by
this Order.
IT IS FURTHER ORDERED that the Company, Staff,and any interested parties shall meet
prior to the filing of the next PCA to reevaluate the mechanism used for CBH and Chelan Hydro
as discussed above.
IT IS FURTHER ORDERED that the Company shall track the cost impact of using a
Boulder Park dispatch cost without the cost of allowances over the remaining PCA year and submit
that data in next year's PCA filing.
IT IS FURTHER ORDERED that the Company shall submit a compliance filing with
tariffs conforming with this order.
ORDER NO. 36339 5

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this V day of
October 2024.
1him-'Kil-,
ERIC ANDE SON, PRESIDENT
JO R. HAMMOND JR., COMMISSIONER
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EDWARD LODGE, COMWSSIONER
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ORDER NO. 36339 6

Office of the Secretary
Service Date
October 28,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT PETITION ) CASE NO. AVU-E-24-12
OF CLEARWATER PAPER )
CORPORATION,AVISTA CORPORATION ) ORDER NO. 36371
AND SOFIDEL AMERICA CORP. FOR )
APPROVAL OF A CONTRACT )
TEMPORARILY WAIVING AVISTA'S )
PROHIBITION AGAINST MASTER- )
METERING ITS ELECTRIC SERVICES )
On September 20,2024, Clearwater Paper Corporation("Clearwater"),Avista Corporation
("Avista"), and Sofidel America Corp ("Sofidel") (collectively the"Parties"), filed a joint petition
("Petition")with the Idaho Public Utilities Commission("Commission") for an order approving a
contract between Sofidel and Clearwater, and providing a temporary waiver of Avista's Tariff
prohibiting master-metering of electric services.
The Parties represented that Clearwater has entered into an agreement ("Agreement") to
sell its Consumer Products Division (the "Tissue Plant") to Sofidel. Petition at 2. The Parties
stated that each company would separately contract with Avista for the provision of electric power
and energy pursuant to Avista's approved tariffs; however, because the current electrical
infrastructure was designed and constructed to serve an integrated single entity,it was not currently
physically possible for Avista to separately meter and serve the Tissue Plant as an individual
customer.Id. at 2-3. The Parties indicated that it may take up to three years for Avista to construct
the required infrastructure to provide separate metering to the companies.Id. at 3.
STAFF COMMENTS
Commission Staff("Staff') examined the Petition, Avista's comments, the Commission's
rules and policies pertaining to master metering, and the responses to discovery requests. Staff
considered the temporary nature of the requested waiver, Avista's verification that the power
consumption and usage can be completely separated and separately metered between Clearwater
and Sofidel, and the existence of the Agreement. Based on its review, Staff believed that the
request would allow the two companies to move forward with the sale of the business while
affording Avista time to develop and construct the required infrastructure to provide separate
substation infrastructure and metering. Staff Comments at 1. Staff believed the Parties sought to
ORDER NO. 36371 1

rectify an issue arising from the sale of a business, and Staff did not believe the request conflicts
with the principles and premises that the Rules and Regulations Governing Master Metering of
Electric Service ("Master Metering Rules") Order No. 15556 were based upon.Id. at 3.
Staff recommended that the waiver be granted, conditioned on the Parties submitting a
compliance filing clarifying how demand charge billing discrepancies will be resolved. Id. Staff
also recommended the Commission order Avista to:
1. Submit infrastructure project status updates to Staff semi-annually to demonstrate that
this work is being completed in a timely manner until such time that the waiver is no
longer necessary.
2. Notify the Commission if Clearwater's internal metering and monitoring equipment is
not being maintained in such a way to ensure accurate billing based on each entity's
usage and the methods approved through the Commission's orders in this case.
3. Assess the need to amend the Clearwater special contract when Sofidel becomes an
Avista customer.
Staff did not recommend that the Commission approve the Agreement since the contract is
between two private entities not under the Commission's jurisdiction.Id.
REPLY COMMENTS
1. Avista Comments
Avista reviewed Staff s comments and supported Staff s recommendations. Avista
requested a Compliance Filing due date of December 31, 2024, and that the first infrastructure
report be due on May 31, 2025, and every six months thereafter. Avista Comments at 1.
2. Clearwater and Sofidel Comments
Clearwater and Sofidel indicated that they are working to provide a workable and
reasonable solution to Staff s concerns with demand charge billing and are doing so in consultation
with Avista.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
ORDER NO. 36371 2

Having reviewed the Petition, all submitted comments, and the record, the Commission
finds it fair, just, and reasonable to approve the request for a temporary waiver of the master
metering prohibition until such time as Avista is able to provide separate metering to the
companies. Avista shall submit infrastructure project status reports beginning on May 31, 2025,
and every six months thereafter, and shall notify the Commission if Clearwater's internal metering
and monitoring equipment is not being maintained in such a way as to ensure accurate billing. The
Parties shall also submit a compliance filing by December 31,2024,clarifying how demand charge
billing discrepancies will be resolved.
ORDER
IT IS HEREBY ORDERED that the request for a temporary waiver of the master metering
prohibition is granted. The waiver shall be effective until such time as Avista is able to provide
separate metering to the companies.
IT IS FURTHER ORDERED that Avista shall submit infrastructure project status reports
beginning on May 31, 2025, and every six months thereafter, and shall notify the Commission if
Clearwater's internal metering and monitoring equipment is not being maintained in such a way
as to ensure accurate billing.
IT IS FURTHER ORDERED that the Parties shall also submit a compliance filing by
December 31, 2024, clarifying how demand charge billing discrepancies will be resolved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
ORDER NO. 36371 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 28t'day of
October 2024.
ER ANDS SON, PRESIDENT
R. HAMMOND JR., COMMISSIONER
67 G
EDWARD LODGE, C064MISSIONER
ATTEST:
Ba s-S c
Commission ecreta
I:\Lega1\ELECTRIC\AVU-E-24-12_waiver\orders\A V UE2412_FO_cb.docx
ORDER NO. 36371 4

Office of the Secretary
Service Date
October 30,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE POWER COST ) CASE NO. AVU-E-24-07
ADJUSTMENT (PCA) ANNUAL RATE )
ADJUSTMENT FILING OF AVISTA ) ORDER NO. 36376
CORPORATION )
On July 31, 2024, Avista Corporation, doing business as Avista Utilities ("Company"),
filed its annual Power Cost Adjustment ("PCA") application ("Application"). The Company
requested that the Commission issue an order approving the level of power costs deferred in the
rebate direction for the period of July 1, 2023,through June 30, 2024, and approving a PCA rebate
rate of 0.2050 per kilowatt-hour to be effective October 1, 2024. Application at 1.
On October 1, 2024, the Commission issued Order No. 36339 approving the Application,
with modifications, and ordering the Company to submit a compliance filing with tariffs
conforming with the order. Order No. 36339 at 5. On that same day, the Company submitted a
compliance filing with updated tariffs.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
Having reviewed the Application and compliance filing, all submitted comments, and the
record, the Commission finds it fair, just, and reasonable to accept the Company's compliance
filing and find that it conforms with the requirements of Order No. 36339.
ORDER
IT IS HEREBY ORDERED that the Company's October 1, 2024, compliance filing is
accepted, and the tariffs approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
ORDER NO. 36376 1

matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 30t1i day of
October 2024.
ERIC ANDERSON, PRESIDENT
6rR. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, C MISSIONER
ATTEST:
M a Ba c
Commission Secretary
IALega1\ELECTRIC\AW-E-24-07_PCA\orders\AW E2407_FO_Comp_cb.doex
ORDER NO. 36376 2

Office of the Secretary
Service Date
October 30,2024
BEFORE THE IDAHO PUBLIC UTILITIES CONDUSSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-G-24-01
CORPORATION'S ANNUAL FIXED COST )
ADJUSTMENT MECHANISM(FCA) RATE ) ORDER NO. 36378
ADJUSTMENT )
On July 31, 2024, Avista Corporation ("Company") applied for authorization to adjust the
Fixed Cost Adjustment ("FCA") rates for natural gas service from November 1, 2024, through
October 31, 2025, ("Application"). The Company stated the current FCA rates as well as the
proposed changes as illustrated below:
Current Rate Proposed Rate Proposed Rate Change
Per Therm Per Therm
Residential Group
Schedule 101 Rebate of 1.219¢ Surcharge of 1.506¢ 2.3% increase
Non-Residential Group
Schedules I I I and 112 Rebate of 0.632¢ 1 Surcharge of 1.006 ¢ 1 1.7% increase
The Company requested a November 1, 2024, effective date and that the Idaho Public Utilities
Commission("Commission")process the request under Modified Procedure.
The Commission issued a Notice of Application and set comment deadlines for public
comments and the Company's reply. Order No. 36301. Staff filed the only comments.
Having reviewed the record in this case the Commission issues this Order authorizing FCA
rates included in the Company's Application.
BACKGROUND
The FCA is a rate adjustment mechanism designed to break the link between the energy a
utility sells and the revenue it collects to recover fixed costs 1 of providing service,thus decoupling
the utility's revenues from its customers' energy usage. This decoupling removes a utility's
incentive to increase sales to increase revenue and profits and encourages energy conservation.
The Commission originally approved a three-year pilot program of the Company's FCA as part of
the approved settlement of the Company's 2015 rate case. Order No. 33437 at 10. The parties to
the Company's rate case agreed to review the program's effectiveness at the end of its second full
1 "Fixed costs"are a utility's costs to provide service,such as infrastructure and customer service,which do not vary
with energy use,output,or production,and remain relatively stable between rate cases.
ORDER NO. 36378 1

year, to ensure the program was functioning as intended. On June 15, 2018, the Commission
approved an addendum to the settlement that extended the term of the Company's FCA pilot for
an additional year. Order No. 34085. On December 13, 2019, the Commission authorized the
Company to extend its FCA mechanism for both gas and electric customers through March 31,
2025. Order No. 34502.
THE APPLICATION
The Company's proposed rate adjustment for its Residential and Non-Residential natural
gas customer groups is based on "the difference between actual FCA-related revenue received
from customers through volumetric rates, and the FCA-related revenue approved for recovery in
the Company's last general rate case on a per customer basis" for the 12 months ending June 30,
2024.Application at 3.The Company mostly attributes the proposed changes to the fact that"Idaho
customers have achieved energy efficiency savings from participation in the Company's Demand
Side Management programs."Id. at 6.
The Company recorded $1,085,515 of deferred revenue in the surcharge direction for its
Residential natural gas customers for the 12-month period ending on June 30,2024. The Company
stated that the proposed surcharge rate of 1.506¢per therm is designed to recover$1,112,815 from
the Company's Schedule 101 customers. The Company represented that the deferral balance for
the 12 months ending June 30, 2024, plus interest through October 31, 2025,plus the prior year's
FCA residual balance, plus a revenue related expense adjustment would be transferred into a
regulatory liability balancing account, and the balance of that account would be reduced monthly
by the revenue collected under Schedule 101 customers under the tariff.
The Company recorded $299,626 of deferred revenue in the surcharge direction for its
Non-Residential natural gas customers for the 12-month period ending on June 30, 2024. The
Company stated that the proposed rate of 1.0060 per therm will result in the Company recovering
$277,795 under Schedules 111 and 112 commercial and industrial customers. Like the Residential
customers, the Company represented that the deferral balance for the 12 months ending June 30,
2024, plus interest through October 31, 2025, plus the prior year's FCA residual balance, plus a
revenue related expense adjustment, would be transferred into a regulatory liability balancing
account, and the balance of that account would be reduced monthly by the revenue collected under
Schedule 111 and 112 customers under the tariff.
ORDER NO. 36378 2

The Company submitted its Residential and Non-Residential rate calculations, support for
its deferrals, and its proposed FCA tariff Schedule 175 with its Application and supplemental
materials.
STAFF COMMENTS
Staff reviewed the information provided by the Company including its Application,
supplemental materials, and the proposed FCA Schedule 175. Based upon its review, Staff
believed the Company's FCA natural gas deferral balances and proposed rates were correctly
calculated.
Staff noted the Company's proposed rate adjustment was measured by the amount of
deferred revenue for the 12 months preceding June 30, 2024. Staff likewise noted the Company's
position that these changes were due to certain drivers including lower monthly use-per-customer
than the 2022 test year and savings from participation in the Company's Demand Side
Management Program. Staff stated that, if the Company's Application is approved, the deferral
balance and associated interest would be placed into a regulatory asset balancing account, and the
balance of this account would be reduced monthly by the customer's surcharge. Staff noted the
proposed changes outlined above and in the Company's Application for each of the proposed rates.
Staff also reviewed the Company's press release and customer notice. Staff believed that
they both met the requirements of Rule 125 of the Commission's Rules of Procedure, and that the
Company had provided customers with a reasonable opportunity to file timely comments with the
Commission by the October 10, 2024, deadline.
Staff recommended that the Commission approve the Company's Application as filed.
Specifically, Staff recommended that Schedule 175 have a residential surcharge rate of 1.506¢per
therm with a total estimated surcharge of $1,112,815 and a Non-Residential surcharge rate of
1.0060 per therm with a total estimated surcharge of$277,795. Staff recommended that Schedule
175's proposed changes be effective November 1, 2024.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company and this matter pursuant to Idaho Code
§§ 61-501, 61-502, 61-503. The Commission has the express statutory authority to investigate
rates, charges, rules, regulations, practices, and contracts of public utilities and to determine
whether they are just, reasonable, preferential, discriminatory, or in violation of any provision of
law, and may fix the same by order. Idaho Code §§ 61-502, 61-503.
ORDER NO. 36378 3

The Commission has reviewed the record and finds the Company's proposed FCA
Residential surcharge rate of 1.5060 per therm, and the proposed FCA Non-Residential surcharge
rate of 1.006¢ per therm to be fair, just, and reasonable. The Commission finds the Company
correctly calculated its deferrals for July 1, 2023, through June 30, 2024. The Commission thus
approves the Company's Application and corresponding proposed revisions to Schedule 175, as
filed, effective November 1, 2024.
ORDER
IT IS FURTHER ORDERED that the Company's request for a FCA Residential surcharge
rate of 1.5060 per therm, and a FCA Non-Residential surcharge rate of 1.0060 per therm, is
approved effective November 1, 2024.
IT IS FURTHER ORDERED that the Company's proposed Schedule 175 - Fixed Cost
Adjustment Mechanism -Natural Gas is approved as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 301h day of
October 2024.
ERIC ANDERSON, PRESIDENT
J R. HAAMMOND JR., COMMISSIONER
G
EDWARD LODGE, C06dMISSIONER
ATTEST:
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IALegal\GAS\AW-G-24-01_FCA\orders\AWG2401_Final md.docx
ORDER NO. 36378 4

Office of the Secretary
Service Date
October 31,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-G-24-02
CORPORATION'S APPLICATION FOR )
APPROVAL OF A CHANGE IN RATES FOR ) ORDER NO. 36379
PURCHASED GAS COSTS AND )
AMORTIZATION OF GAS-RELATED )
DEFERRAL BALANCES )
On July 31, 2024, Avista Corporation d/b/a/Avista Utilities ("Company") applied for
authority to change its rates for purchased gas costs and amortize its gas-related deferral balances.
The Company requested processing of this matter via Modified Procedure with a November 1,
2024, effective date.
On August 21, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure setting a comment deadline for interested persons and a reply comment
deadline for the Company. See Order No. 36298. The Commission Staff("Staff') filed the only
comments.
We now issue this Order approving the Company's Application and corresponding
proposed tariffs, as filed.
APPLICATION
A. Overview of Proposed Rates
The Purchased Gas Adjustment ("PGA") is a Commission-approved mechanism that
adjusts rates up or down to reflect changes in the Company's costs to buy natural gas from
suppliers—including changes in transportation, storage, and other related costs. The Company
defers these costs into its PGA account and then passes them on to customers through an increase
or decrease in rates.
The Company indicated that its proposal would decrease annual revenues by about
$32.3 million (27.9%). The Company stated that the average residential or small commercial
customer using an average of 64 therms per month will see a decrease of$20.41 per month or
26.2%. The Company provided a copy of the press release it will send to affected customers.
In its Application, the Company proposed to: (1)pass any change in the estimated cost
of natural gas for the next 12 months to customers (Tariff Schedule 150); and (2) revise the
ORDER NO. 36379 1

amortization rates to refund or collect the balance of deferred gas costs (Tariff Schedule 155). The
Company proposed to change its PGA rates in this case for its customer classes as follows:
Commodity Demand Total Amortization Total PGA
Sch Change per Change per Sch. 150 Change per Rate Change
Service No. therm therm Chan e therm 2eLtherm
General 101 $ 0.04984 $0.00111 $ 0.04873 $ 0.27015 $ 0.31888
L .General 111 $ 0.04984 $0.00111 $ 0.04873 $ 0.27015 $ 0.31888
L .General 112 $ 0.04984 $0.00111 $ 0.04873 $ - $ 0.04873
Interruptible 131 $ 0.04984 $ - $ 0.04984 $ - $ 0.04984
Transportation 146 $ - $ - $ - $ - $ -
Application at 3. The Company's proposed changes to Schedules 150 and 155 and the Company's
rates are further explained below.
B. Schedule 150
Tariff Schedule 150 is a portion of the PGA with two parts: the"commodity costs"and
the "demand costs." The Company's "commodity costs" are the variable costs at which the
Company must buy natural gas. The Weighted Average Cost of Gas ("WACOG") is an estimate
of those costs. Here, the Company proposed a WACOG of$.23850 per therm compared to the
currently approved $0.28834 per therm.
The Company's "demand costs" are its fixed-capacity costs for interstate
transportation and underground storage. The Company proposes a$0.00111 per therm increase in
the overall demand rate for customers on Schedules 101, 111, and 112. This increase is caused by
factors including the Canadian exchange rate, an updated demand forecast, and new rates for the
Company's Canadian pipelines in effect during the upcoming PGA year.
C. Schedule 155
The Company's Tariff Schedule 155 reflects the amortization of the Company's
deferral account. The Company's proposed amortization rate change for Schedule 101 and
Schedule 111 is a decrease in revenue of $0.27015 per therm. The current rate applicable to
Schedule 101 and Schedule 111 is $0.25281 per therm in the surcharge direction; the proposed
rate is $0.01734 per therm in the rebate direction. The Company further asserts that it has or will
notify customers of its proposed tariffs by sending notice to each customer as a bill insert in
September.
ORDER NO. 36379 2

STAFF COMMENTS
After examining the Company's Application and accompanying workpapers, Staff
supported the Company's proposal to decrease natural gas revenues in Idaho by approximately
$32.3 million,or about 27.9%. Staff also reviewed the Company's jurisdictional allocation and the
reasonableness of the Company's Lost and Unaccounted for Gas volumes. Staff verified that the
Company's filing will not change the Company's earnings. Staff also confirmed that the proposed
changes to Schedules 150 and 155 accurately capture the Company's fixed(demand) and variable
(commodity) costs given the coming year's forecasted gas purchases and properly amortizes the
deferral balance from the prior year.
Regarding reporting requirements, Staff recommended that the Company continue
submitting quarterly WACOG reports, the gas accounting data download ("GADD") report, and
the deferred costs report with a journal entry. Staff also recommended that the Company continue
submitting the deferral calculation workbook ("DCW"), which summarizes the numbers in the
GADD and ties them to the PGA workpaper, in Excel format. Staff asserted that the DCW
workbook must be filed with the last quarterly report before the PGA Application. Staff believed
these reports will facilitate more efficient case processing.
After examining the Company's Application, natural gas purchases, and deferral
activity for the year, Staff recommended that the Commission: 1) approve the Company's
proposed Tariff Schedule 150 as filed, including the proposed WACOG of$0.23850 per therm
and demand charge of $0.08995 per therm, for a total of $0.32845 per therm; 2) approve the
Company's proposed Tariff Schedule 155 as filed, with the proposed amortization rebate rate of
$0.01734 per therm; 3) direct the Company to continue filing quarterly WACOG, GADD reports
and monthly deferred cost reports with journal entries, as they have been, and the DCW workbook
in Excel format with the last quarterly report before the next PGA filing.
Staff reviewed the Application, including Exhibit C: Copy of Press Release and
Customer Notice. Staff determined that the documents in Exhibit C meet the requirements of Rule
125 of the Commission's Rules of Procedure. IDAPA 31.01.01.125. The notice was included with
bills mailed to customers beginning August 2, 2024, and ending August 30, 2024. Staff believed
these mailings provided customers with reasonable opportunity to file comments by the October
ORDER NO. 36379 3

16,2024,comment deadline. However, Staff still recommended that the Commission consider late
filed comments by customers.1
COMMISSION FINDINGS AND DECISION
The Commission has reviewed the record, including the Application and comments.
The Company is a gas corporation and public utility, and the Commission has jurisdiction over it
and the issues in this case under Title 61 of the Idaho Code, and more specifically,Idaho Code §§
61-117, 61-129, 61-307, 61-501,and 61-502.The Commission must establish just,reasonable,and
sufficient rates for utilities subject to its jurisdiction. Idaho Code § 61-502. The PGA mechanism
is used to adjust rates to reflect annual changes in the Company's costs for the purchase of natural
gas from suppliers—including transportation, storage, and other related costs. The Company's
earnings are not to be increased from changes in prices and revenues resulting from the PGA. The
PGA mechanism passes through prudently incurred commodity costs in a timely fashion.
Having reviewed the record, the Commission finds it fair, just, and reasonable to
approve the Application and submitted Tariff Schedules 150 and 155, as filed. Additionally, the
Commission finds that quarterly WACOG and deferred cost reports provide useful information
and assist Staff with determining whether to audit earlier than planned, and whether an interim
filing might be needed. The Commission directs the Company to continue submitting quarterly
WACOG reports and quarterly deferred costs reports. Further, the Company is directed to file a
GADD in Excel format with a reconciliation tab, and a DCW in Excel format in the quarterly
report immediately prior to its next PGA filing. As always,the Commission expects the Company
to promptly apply to amend its WACOG if gas prices materially deviate from the WACOG
approved in this Order.
ORDER
IT IS HEREBY ORDERED that the Company's Application to change its natural gas
rates and charges is approved. The Company's proposed Schedule 150, including the WACOG of
$0.23850 per therm and demand charge of$0.08995 per therm, for a total of$0.32845 per therm
is approved, effective November 1, 2024.
IT IS FURTHER ORDERED the Company's proposed Schedule 155, with the
amortization rate of$0.01734 per therm is approved as filed, effective November 1, 2024.
1 As of October 29,2024,no customer comments had been filed.
ORDER NO. 36379 4

IT IS FURTHER ORDERED that the Company shall promptly apply to amend its
WACOG if gas prices materially deviate from the WACOG approved in this Order.
IT IS FURTHER ORDERED that the Company is directed to submit the reports as
directed above.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Public Utilities Commission at Boise, Idaho this 31St day of
October 2024.
ERIC ANDERSON, PRESIDENT
JO . HAMMOND JR., COMMISSIONER
G
Gv�
EDWARD LODGE, CO ISSIONER
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ORDER NO. 36379 5

Office of the Secretary
Service Date
December 9,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF COMMISSION ) CASE NO. GNR-E-24-01
STAFF'S APPLICATION TO UPDATE )
INPUTS TO THE SURROGATE AVOIDED ) ORDER NO. 36416
RESOURCE METHOD AVOIDED COST )
RATES )
On August 16, 2024, Staff of the Idaho Public Utilities Commission ("Staff') applied for
an order (1) updating Surrogate Avoided Resource Model ("SAR Model") inputs; (2) making
administrative changes to the SAR Model; and (3) approving SAR-based avoided cost rates
included with the Application. Staff requested this matter be processed via Modified Procedure.
On September 6, 2024, the Commission issued a Notice of Application, Notice of
Intervention Deadline, and Notice of Modified Procedure—establishing a deadline for interested
parties to intervene and setting deadlines for interested persons to comment and Staff to reply.
Order No. 36314. No parties petitioned to intervene. Avista Corporation dba Avista Utilities,
PacifiCorp dba Rocky Mountain Power, and Idaho Power Company (collectively the
"Companies") all indicated they agreed with Staff s proposals. Staff did not reply.
Having reviewed the record, the Commission now issues this Order approving the Staff s
Application.
THE APPLICATION
Staff seeks an order approving the use of different inputs to update the SAR Model than
the U.S. Energy Information Administration's ("EIA")Annual Energy Outlook,which previously
served as the basis for annual SAR Model updates. See Order No. 32697 (approving the use of the
EIA's Annual Energy Outlook to update the SAR Model). Staff asserts that it is necessary to use
different inputs to update the SAR Model because EIA did not publish an Annual Energy Outlook
in 2024. Staff proposes using"the average of AECO Hub prices, Stanfield Hub prices, Sumas Hub
prices, and Opal Hub prices from the December 2023 natural gas price forecast published by
Northwest Power and Conservation Council" ("NWPCC")to update the SAR Model until the EIA
forecast becomes available."Application at 2-3.
In support of its proposal, Staff notes that the Companies each receive gas from various
combinations of the hubs listed above.Additionally, Staff asserts that the NWPCC forecast is both
ORDER NO. 36416 1

publicly available and has a forecast time horizon of 20 years,which Staff asserts is sufficient for
20-year contracts that may come online in the next half decade. Furthermore, Staff states that its
proposed method for updating the SAR Model produced a forecast for 2022 substantially like that
generated by the EIA Annual Energy Outlook for 2022. The Application included a table listing
the national gas forecast for the 25 years following 2024.
Staff further proposes separating the SAR Model into three models—one for each of
Idaho's three largest electric utilities. According to Staff, this will avert multiple simultaneous
updates by different utilities to the single SAR Model, simplifying the update process. Staff
included models for each of the three major electric utilities in Idaho (i.e., an Avista SAR Model,
an Idaho Power SAR Model, and a Rocky Mountain Power SAR Model) and corresponding
avoided cost rates.
COMPANY COMMENTS
As stated, the Companies filed letters or comments agreeing with Staffs proposed
substitute inputs for the SAR Model and avoided cost rates.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over this matter pursuant to the authority and power
granted it under Title 61 of the Idaho Code and the Public Utility Regulatory Policies Act of 1978
("PURPA"). The Commission has authority under PURPA and its implementing regulations to set
avoided costs, to establish standard published avoided cost rates, to order electric utilities to enter
fixed-term obligations for the purchase of energy from QFs, and to implement Federal Energy
Regulatory Commission ("FERC") regulations. The Commission is also empowered to resolve
complaints between QFs and utilities and approve QF contracts.
Under PURPA, utilities are required to purchase QF generation at a rate equal to the
utility's avoided cost. 18 C.F.R. § 292.304(b)(2). "Avoided costs" are the incremental costs to the
electric utility for power which,but for the purchase from the QF, such utility would generate itself
or purchase from another source. 18 C.F.R. § 292.101(b)(6). PURPA and FERC regulations direct
not only that rates for these purchases shall not discriminate against QFs,but also that avoided cost
rates be just and reasonable to the utility's ratepayers and in the public interest. 18 C.F.R. §
292.304(a)(1). Although FERC promulgated the general scheme and rules, it left the actual
implementation of PURPA to the state regulatory authorities. Rosebud Enterprises, Inc. v. Idaho
Public Utilities Commission, 128 Idaho 609, 614, 917 P.2d 766, 771 (1996). FERC regulations
ORDER NO. 36416 2

grant the states latitude in implementing the regulation of sales and purchases between QFs and
electric utilities. See Federal Energy Regulatory Commission v. Mississippi,456 U.S. 742 (1982).
In Order No. 32697, we approved the use of the EIA's Annual Energy Outlook to update
the SAR Model.As the EIA did not issue such an Annual Energy Outlook for 2024, it is necessary
to identify another method to update the SAR Model. Based upon the comments filed in this case,
particularly Staffs observation that its proposed update method (1) relies on Hub prices used by
Idaho's three major electric utilities; and(2) generated a similar forecast for 2022 when compared
to the EIA's Annual Energy Outlook, we find it reasonable to approve substitute inputs for
updating the SAR Model proposed in Staff s Application.
Furthermore, we find it reasonable to adopt Staff s proposal of separating the single SAR
Model into three separate models—one for each of the three large electric utilities in Idaho as Staff
proposed. Separating the SAR Model in this fashion will avoid the filing of multiple updates by
these three utilities, simplifying the update process. Similarly, as each of the three utilities
identified above agree that Staff accurately calculated their corresponding SAR Model avoided
cost rates using the inputs and method Staff proposed above, we find it reasonable to approve the
SAR-based avoided cost rates included in Staffs Application.
However, our approval of Staffs Application should not be interpreted as permanently
modifying the inputs and method for updating the SAR Model.Rather,this approval shall continue
only until the EIA publishes its next Annual Energy Outlook that can be used to update the SAR
Model. Additionally,we direct Staff to notify the Commission if the EIA does not issue an Annual
Energy Outlook within the next 12 months following the service date of this final order.
ORDER
IT IS HEREBY ORDERED that Staffs proposed substitute inputs and method for
updating the SAR Model are approved until the EIA publishes its next Annual Energy Outlook
following issuance of this Order.
IT IS FURTHER ORDERED that the SAR-based avoided cost rates included in Staffs
Application are approved.
IT IS FURTHER ORDERED that Staff shall notify the Commission if the EIA does not
publish an Annual Energy Outlook that can be used to update the SAR Model within the twelve
months immediately following issuance of this Order.
ORDER NO. 36416 3

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9th day of
December 2024.
ERIC ANDERSON, PRESIDENT
R. HAMMOND JR., COMMISSIONER
G
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EDWARD LOD E1/COZV ISSIONER
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ORDER NO. 36416 4

Office of the Secretary
Service Date
December 27,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-24-10
CORPORATION'S ANNUAL COMPLIANCE )
FILING TO UPDATE THE LOAD AND GAS )
FORECASTS IN THE INCREMENTAL COST ) ORDER NO. 36433
INTEGRATED RESOURCE PLAN AVOIDED )
COST MODEL TO BE USED FOR AVOIDED )
COST CALCULATIONS )
On September 13, 2024, Avista Corporation ("Company") filed a compliance filing
("Filing") requesting that the Idaho Public Utilities Commission ("Commission") issue an order
accepting its updated load forecast, natural gas price forecast, and contract information
components used as inputs to calculate its incremental cost Integrated Resource Plan ("IRP")
avoided cost rates with an effective date of January 1, 2025. The Company requested processing
of this matter via Modified Procedure.
On October 10, 2024, the Commission issued a Notice of Filing and Notice of Modified
Procedure, setting public comment and Company reply deadlines. Order No. 36347. Commission
Staff("Staff') filed comments to which the Company replied with a short statement expressing
support for Staff s recommendations.
Having reviewed the record in this case, the Commission approves the Company's annual
update.
BACKGROUND
Pursuant to the Public Utility Regulatory Policies Act("PURPA") and the Federal Energy
Regulatory Commission's ("FERC") implementing regulations, this Commission has approved
the IRP Method to calculate avoided cost rates for qualifying facilities ("QFs") that are above the
resource-specific project eligibility cap. QFs that are below the applicable project eligibility cap
are eligible to receive published avoided cost rates calculated using the surrogate avoided resource
method("SAR Method"). See Order No. 32697 at 7-8. The avoided cost rate is the purchase price
paid to QFs for the energy,or the energy and capacity,that the QF provides to the utility. 18 C.F.R.
§ 292.10 1(b)(6)(defining"avoided cost"). To ensure that avoided costs most accurately reflect the
utility's marginal cost of energy or capacity, the Commission has directed utilities to "update fuel
ORDER NO. 36433 1

price forecasts and load forecasts annually—between IRP filings," and to update the Commission
about its"long-term contract commitments because of[their] potential effect. . . on a utility's load
and resource balance." Order No. 32697 at 22.
THE FILING
According to the Company, its energy load forecast increases at a 0.93% annual average
growth rate for years 2026 through 2045. The Company's natural gas price forecast was developed
using a combination of"the U.S. Energy Information Administration's Annual Energy Outlook .
. . and forward market prices as of December 15, 2023." Filing at 3. Since its 2023 annual filing,
the Company has signed one new long-term PURPA contract and another was being negotiated
last year. The Company further represented that two PURPA contracts ended and an updated
power purchase agreement with Clearwater Wind began in September 2024. Details of the
contracts in workpapers were attached to the Company's Filing.
STAFF COMMENTS
Staff recommended Commission approval of the load and gas forecasts for 2025 contained
in the Company's responses to production requests and similar forecasts for the years 2026 through
2045 contained in the Filing) Staffs analysis and rationale for approving each forecast and the
Company's contract updates is described below.
1. Load Forecast
Staff observed that, as in its last load and gas forecast compliance filing (Case No. AVU-
E-23-13), the Company used the Traditional Supply and Demand Econometric Model Method
(2025-2028)and the End-Use Forecasting Method(2029-2045)to develop its load forecasts in this
case. Staff noted that the updated load forecast in this case is consistently higher than the one
approved in Case No. AVU-E-23-13. Staff believed that the Company reasonably explained this
increase as being driven by incremental large customer load, improved economic outlook, and
increased use per customer.
2. Gas Forecast
Staff believed that the gas forecast provided, which is the same as that approved in Case
No. AVU-E-23-13, is reasonable for two reasons. Specifically, Staff noted (1) that the proposed
1 Staff noted that the Filing provided a load and gas forecast for the years 2026 through 2045. The Company provided
forecasts for 2025 in response to production requests from Staff.
ORDER NO. 36433 2

gas forecast is the latest available forecast; and (2) that the proposed Henry Hub forecast closely
tracks Rocky Mountain Power's Henry Hub forecast over the next few years.
3. Contract Updates
Staff believed all the contract updates in the Filing were correct except for the name plate
capacity for Clearwater Paper("Clearwater"). According to Staff, that nameplate capacity should
be 132.2 Megawatts ("MW") instead of the listed 60 MW. However, the Company clarified that
Clearwater's generation varies and is correctly reflected in the IRP model. Staff indicated that
using the hourly generation shape from the IRP model will accurately reflect Clearwater's
expected generation.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502 and-
503. The Commission is empowered to investigate rates, charges,rules,regulations,practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory,or in violation of any provision of law,and to fix the same by order. Idaho Code §§
61-502 and-503. In addition, the Commission has authority under PURPA and FERC regulations
to set avoided costs, to order electric utilities to enter fixed-term obligations for the purchase of
energy from QFs, and to implement FERC rules. The Commission may enter any final order
consistent with its authority under Title 61 and PURPA.
Pursuant to this authority, we have reviewed the record in this case including the Filing,
Staff s comments, and the Company's reply comments. We find that the Filing largely complies
with our directives in Order Nos. 32697 and 32802,except for the absence of load and gas forecasts
for the year 2025. The load growth and natural gas price forecasts for 2026 through 2045 provided
in the Filing are reasonable given the information available at this time. Additionally, we find the
energy load growth and natural gas price forecasts provided in response to Staff s Production
Request Nos. 1 &4 propounded in this case to be reasonable.
The contract information, apart from the nameplate capacity of Clearwater,was confinned.
Furthermore,the misstatement of Clearwater's nameplate capacity has little impact on our decision
here as using its hourly generation shape from the IRP model will reflect its expected generation
accurately. We, therefore, approve the Company's annual updates contained in the Filing and in
response to Staffs Production Requests No. 1 & 4.
ORDER NO. 36433 3

ORDER
IT IS HEREBY ORDERED that the Company's annual updates to its energy load, natural
gas price forecasts, and contracts discussed above are reasonable and approved, effective January
1, 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 27"' day of
December 2024.
ERIC ANDERSON, PRESIDENT
J R. HAMMOND JR., COMMISSIONER
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ED ARD LODGE, C MISSIONER
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ORDER NO. 36433 4

Office of the Secretary
Service Date
October 10,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-24-10
CORPORATION'S ANNUAL COMPLIANCE )
FILING TO UPDATE THE LOAD AND GAS ) NOTICE OF FILING
FORECASTS IN THE INCREMENTAL COST )
INTEGRATED RESOURCE PLAN AVOIDED ) NOTICE OF
COST MODEL TO BE USED FOR AVOIDED ) MODIFIED PROCEDURE
COST CALCULATIONS )
ORDER NO. 36347
On September 13, 2024, Avista Corporation ("Company") filed a compliance filing
("Filing") requesting that the Idaho Public Utilities Commission ("Commission") issue an order
accepting its updated load forecast, natural gas price forecast, and contract information
components used as inputs to calculate its incremental cost Integrated Resource Plan ("IRP")
avoided cost rates with an effective date of January 1, 2025. The Company requests processing of
this matter via Modified Procedure.
With this Order the Commission issues notice of the Company's Filing and establishes
public comment and Company reply deadlines.
NOTICE OF FILING
YOU ARE HEREBY NOTIFIED that the Company represented that its energy load
forecast increases at 0.93% annual average growth rate for years 2026 through 2045.
YOU ARE FURTHER NOTIFIED that the Company represented that its natural gas
price forecast was developed using a combination of "the U.S. Energy Information
Administration's Annual Energy Outlook. . . and forward market prices as of December 15,2023."
Filing at 3.
YOU ARE FURTHER NOTIFIED that the Company noted that, since its 2023 annual
filing, the Company has signed one new long-term Public Utility Regulatory Policies Act
("PURPA")contract and another was being negotiated last year. The Company further represented
that two PURPA contracts ended and an updated power purchase agreement with Clearwater Wind
begins in September 2024. The Company included details of the contracts in workpapers attached
to its Filing.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36347 1

YOU ARE FURTHER NOTIFIED that the Filing is available for public inspection
during regular business hours at the Commission's office. These documents are also available on
the Commission's website at www.puc.idaho.gov. Click on the "ELECTRIC" icon, select "Open
Cases,"then click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code, and all proceedings
in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA
31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and it will review the case through written
submissions under the Commission's Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201-204. The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Filing may file a written comment explaining why they support or oppose the Filing. Persons who
would like a hearing must specifically request a hearing in their written comments. Persons shall
have until December 3, 2024, to file written comments. Comments must be filed through the
Commission's website or by e-mail unless computer access is unavailable. To comment
electronically, please access the Commission's website at www.puc.idaho.gov. Click the "Case
Comment Form" and complete the form using the case number as it appears on the front of this
document.
To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36347 2

If computer access is unavailable, then comments may be mailed to the Commission
and the Parties at the addresses below. Persons submitting a comment by mail must provide their
name, address, and the Case Number under which they are commenting. Persons submitting a
comment by mail also acknowledge that submitting a comment in an open case constitutes a public
record under Idaho Code § 74-101(13), and all information provided by such person is available
for public and media inspection.
For the Idaho PUC: For Avista Corporation:
Commission Secretary Michael G. Andrea(MSC-13)
Idaho Public Utilities Commission Shawn Bonfield(MSC-27)
P.O. Box 83720 Avista Corporation
Boise, ID 83720-0074 P.O. Box 3727
secretgagpuc.idaho.gov 1411 E. Mission Avenue
Spokane, WA 99220
Street Address for Express Mail: [e-mail]
shawn.bonfield0)avistacorp.com
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
December 10, 2024.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Company's Filing be processed by Modified
Procedure, Rules 201-204. Persons interested in submitting written comments must do so by
December 3, 2024. The Company must file any reply comments by December 10, 2024.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April
21, 2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36347 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 101h day
of October 2024.
ERIC ANDERSON, PRESIDENT
HN R. HAMMOND JR., COMMISSIONER
G
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E WARD LODGE, CO ISSIONER
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IALega1\ELECTRIC\AW-E-24-10_IRP\ordefs\AWE2410_Ntc of App_Mod_at.docx
NOTICE OF FILING
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36347 4

Office of the Secretary
Service Date
November 25,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-24-11
CORPORATION'S APPLICATION FOR THE ) AVU-G-24-04
EXTENSION OF AVISTA'S ELECTRIC AND )
NATURAL GAS FIXED COST ) NOTICE OF MODIFIED
ADJUSTMENT MECHANISMS IN THE ) PROCEDURE
STATE OF IDAHO )
ORDER NO. 36403
On September 20, 2024, Avista Corporation ("Company") applied to extend its electric
and natural gas Fixed Cost Adjustment Mechanisms ("FCA Mechanisms") through August 31,
2029. According to the Application, the FCA Mechanisms are set to expire on March 31, 2025.
Consequently, the Company seeks an extension to the Company's electric and natural gas FCA
Mechanism Tariff Schedules 75 and 175, effective April 1, 2025.
On October 10, 2024, the Commission issued a Notice of Application and Notice of
Intervention Deadline, setting a deadline for interested persons to intervene. Order No. 36351.No
parties intervened.
At the Commission's November 19, 2024, Decision Meeting, Staff presented a Decision
Memorandum recommending the Commission issue a Notice of Modified Procedure, setting a
December 17, 2024, public comment deadline and a Company reply deadline of January 7, 2025.
The Commission now issues this Notice of Modified Procedure establishing deadlines for
interested parties to comment on the Application and for the Company to reply.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and it will review the case through written
submissions under the Commission's Rules of Modified Procedure Rules 201-204 of the Idaho
Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201-204. The Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why they support or oppose the Application.
Persons who would like a hearing must specifically request a hearing in their written comments.
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36403 1

Persons shall have until December 17,2024,to file written comments. Comments must be filed
through the Commission's website or by e-mail unless computer access is unavailable. To
comment electronically,please access the Commission's website at www.puc.idaho.gov. Click the
"Case Comment Form" and complete the form using the case number as it appears on the front of
this document.
To file by e-mail, persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
address, and the Case Number under which they are commenting. Persons submitting a comment
by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For Avista Corporation:
Commission:
Commission Secretary David J. Meyer
Idaho Public Utilities Commission Patrick D. Ehrbar
P.O. Box 83720 P.O. Box 3727
Boise, ID 83720-0074 MSC-27
secretgakpuc.idaho.gov 1411 E. Mission Ave.
Spokane, WA 99220-3727
Street Address for Express Mail: David.Meyerkavistacorp.com
Patrick.Ehrbar(a,avi stacorp.com
11331 W. Chinden Blvd. Docketskavistacorp.com
Building 8, Suite 201-A
Boise, ID 83714
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
January 7, 2025.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its order
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36403 2

without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application be processed by Modified Procedure,
Rules 201-204. Persons interested in submitting written comments must do so by December 17,
2024. The Company must file any reply comments by January 7, 2025.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 251h day of
November 2024.
ER AND RSON, PRESIDENT
R. HAMMOND JR., COMMISSIONER
G
Gr c�
EDWARD LODGE, C MISSIONER
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NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36403 3