20250624Notice_of_Proposed_Settlement_Order_No_36651.pdf

Office of the Secretary
Service Date
June 24,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NOS. AVU-E-25-01
CORPORATION'S APPLICATION FOR ) AVU-G-25-01
THE AUTHORITY TO INCREASE ITS ) NOTICE OF PROPOSED
RATES AND CHARGES FOR ELECTRIC ) SETTLEMENT
AND NATURAL GAS SERVICE TO )
ELECTRIC AND NATURAL GAS )
CUSTOMERS IN THE STATE OF IDAHO ) NOTICE SCHEDULE
AMENDED
NOTICE OF COMMENT
DEADLINE
ORDER NO. 36651
On January 31,2025,Avista Corporation("Company")applied to the Idaho Public Utilities
Commission ("Commission") requesting authorization to increase its rates for both Electric and
Natural Gas service ("Application"). The Company requests a Two-Year Rate Plan with a Rate
Year I effective date of September 1,2025, and a Rate Year 2 effective date of September 1, 2026.
On February 19, 2025, the Commission issued a Notice of Application and Notice of
Intervention Deadline. Order No. 36470. Subsequently, the Commission granted intervention to
Clearwater Paper Corporation, Idaho Forest Group LLC, and Walmart Inc. (collectively
"Intervenors"). Order Nos. 36472, 36490, and 36518.
On April 2, 2025, Staff notified the Commission that the parties intended to enter
settlement discussions with the intent to resolve the outstanding issues in the case. See IDAPA
31.01.01.271 through .277.
On April 29, 2025,the Commission set a schedule for processing this case, including dates
for Staff and Intervenor prefile testimony, a customer hearing, Company rebuttal testimony, and a
technical hearing. Order No. 36586.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 1

On June 9,2025,a proposed Stipulation and Settlement("Proposed Settlement")were filed
with the Commission. See IDAPA 31.01.01.056, .272, and .274. The proposed Settlement was
signed by the Company, Staff, and the Intervenors (collectively the "Parties" or individually
"Party").
With this Order, we provide notice of the proposed Settlement, amend the procedural
schedule for this case, and provide notice of a customer comment deadline.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Parties agree the proposed Settlement represents
a fair,just,and reasonable compromise of the issues in this proceeding and the proposed Settlement
is in the public interest.
YOU ARE FURTHER NOTIFIED that under the proposed Settlement, the Company
would be allowed an overall electric base rate increase of$19,487,000, or 6.3 percent, effective
September 1, 2025, and a second increase of$14,691,000, or 4.5 percent, effective September 1,
2026.
YOU ARE FURTHER NOTIFIED that under the proposed Settlement, the Company
would be allowed an overall natural gas base rate increase of$4,580,000, or 9.2 percent, effective
September 1, 2025, and a decrease of$209,000, or 0.4 percent, effective September 1, 2026.
YOU ARE FURTHER NOTIFIED that the Company agreed not to increase its monthly
base charge for service.
YOU ARE FURTHER NOTIFIED that under the Proposed Settlement, the Company
would receive a 9.6% return on equity, with a 50.0% common equity ratio. The capital structure
and resulting rate of return is set forth below:
Capital Weighted
( onipoiient Structure Cost Cost
Total Debt 50.00% 4.95% 2.480
Common Equity 50.00% 9.60% 4.800
Total 100.00% 7.280
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 2

YOU ARE FURTHER NOTIFIED that the Proposed Settlement sets forth the following
tables of adjustments of the electric revenue requirement components for Rate Year 1 and Rate
Year 2.
SUMMARYTABLE OF ADJUSTMENTS TO ELECTRIC REVENUE REQUIREMENT
EFFECTIVE SEPTEMBER 1,2025
(000s of Dollars)
Revenue
Requirement Rate Base
Amount as Filed: y 42,951 S 1,202,677
Adjustments:
IL) Cost of Capital S (6,116)
b.) Remove 2026 AMA Capital Additions $ (4,715) $ (34,156)
c.) Remove 2026 Revenue and Expense Offsets $ 1,936
d.) Update 2024/2025 Capital Additions $ (357) $ (3,276)
e.) Revise Wildfire Deferral Amortization $ (1,621)
t) Revise Insurance Deferral Amortization S (690)
g.) Remove 2026 Officer Labor Increases $ (19)
I.) Update Employee Incentive Expense $ (132)
i.) Remove Escalated Miscellaneous O&M Expense $ (3,399)
j.I Revise Colstrip Regulatory Amortization $ (364)
k•I Revise Net Power Supply Expense S (4,611)
I.I Update Pro Forma Insurance Expense $ (950)
m.) Remove Property Taxes $ (1973)
n.) Miscellaneous Adjustments:revise Board of Director expenses,remove $ (453)
Schedule 23 DC Fast Charger Revenues,revise injuries and damages,remove
IS/IT expense escalation,and reclassification of other administrative and general
expenses.
Adjusted Amounts Effective September 1.2025 $ 19.487 S 1,165,245
EFFECTIVE SEPTEMBER 1,2026
(OOOs of Dollars)
Revenue
Requirement Rate Base
Rate Base Amount Effective September 1,2025 S I,165,245
Incremental Revenue Adjustment to September 1,2025 Rate Change
(see Table No. 1):
a.) Add Incremental Capital and Expenses:
i Net Power Supply Expense and Transmission Revenue $ 13,567
ii AMA M26 Capital Additions $ 4,715 S 34,156
iii Miscellaneous Capital Adjustments $ (143) $ (1,720)
iv. Property Tax Expense $ (784)
V. 2026 Union/Non-Union Labor Increase $ 1,281
vi. Employee Benefits $ 320
vii 2026 Growth Revenue and O&M Offsets $ (1,921)
vii. Revue ColstripCS2 Major Maintenance Expense $ (1,511)
ix. Remove Colstrip Depreciation Expense $ (986)
X. Revue Excess Deferred Income Tax(EDIT) $ 153
September 1,2026 Incremental Revenue Adjustment and Rate Base
Amount(above September 1,2025 Rate Change-see Table No. 1) $ 14,691 $1,197,681
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 3

YOU ARE FURTHER NOTIFIED that the Proposed Settlement sets forth the following
tables of adjustments of the natural gas revenue requirement components for Rate Year 1 and Rate
Year 2.
SUMMARY TABLE OF ADJUSTMENTS TO NATURAL GAS REVENUE REQUIREMENT
EFFECTIVE SEPTEMBER 1,2025
(0003 of Dollars)
Revenue
Requirement Rate Base
Amount as Filed: $ 8,803 S 236.902
Adjustments:
a.) Cost of Capital S (1,205)
b.► Remove 2026 AMA Capital Additions $ (460) S (4,178)
c.) Remove 2026 Revenue and Expense Offsets S 754
d.) Update 20242025 Capital Additions S (4) S (29)
e.) Revise Wt7ftarns Pipeline Outage Deferral Amortization $ (1,453)
f.) Remove 2026 Officer Labor Increases S (5)
1 Update Employee Incentive Expense S (35)
11.1 Remove Escalated Miscellaneous O&M Expense $ (708)
i.l Update Pro Forma Insurance Expense $ (155)
j.I Remove Property Taxes $ (836)
k.) Miscellaneous Adjustments:revise Board of Director expenses,revise injuries $ (117)
and damages,remove ISIIT expense escalation,and reclassification of other
administrative and general expenses.
Adjusted Amounts Effective September 1,2025 $ 4.511 ` 232.69;
SUMMARY TABLE OF ADJUSTMENTS TO NATURAL GAS REVENUE REQUIREMENT
EFFECTIVE SEPTEMBER 1,2026
(0005 of Dollars)
Revenue
Requirement Rate B:i`.
Rate Base Amount Effective September 1,2026 $ 232,695
Incremental Revenue Adjustment to September 1,2025 Rate Change
(see Table No.3):
a.) Add Incremental Capital and Expenses:
i AMA 2026 Capital Additions $ 465 S 4,178
a Property Tax Expense $ (350)
a 2026 UnimvNon-Union Labor Increase $ 360
iv. Employee Benefits $ 85
V. 2026 Growth Rcvcnuc and O&M Offsets $ (769)
September 1,2026 Revenue Adjustment and Rate Base
amounts (below September 1,2025 Rate Change -see Table No.3) $ (209) S 236.8 r3
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 4

YOU ARE FURTHER NOTIFIED that the Proposed Settlement provides information on
the Power Cost Adjustment authorized level of Net Power Supply Expenses included in base rates.
YOU ARE FURTHER NOTIFIED that the Proposed Settlement contains information on
other agreements including: (1) a Wildfire Resiliency Plan; (2) an Insurance Expense Balancing
Account; (3) Regulatory Amortizations; (4) Colstrip Regulatory Assets and Accounting; and (5)
Capital Projects Included in Rates.
YOU ARE FURTHER NOTIFIED that the Parties do not agree on a cost-of-service
methodology.
YOU ARE FURTHER NOTIFIED that the Parties agree that certain rate schedules
generally diverge from their relative costs of service. Accordingly,the Parties agree that Schedule
25P will receive 25% of the overall base rate change, while Street and Area Lights will receive
75%. Schedules 1 and 25 will each receive 100% of the change. Schedules 21/22 and 31/32 will
receive 125%, and Schedules 11/12 will receive 105%. For natural gas, the margin increase
scheduled for September 1, 2025, will apply to Schedule 101. The margin decrease set for
September 1, 2026, will be evenly applied to Schedules 111/112 and 146.
YOU ARE FURTHER NOTIFIED that the Signing Parties agree to the rate design changes
proposed by the Company in Mr. Miller's direct testimony for the September 1, 2025, and
September 1, 2026, base rate increases except for certain basic charges and volumetric rates. The
basic charges for Schedules 1, 11, 12, 31, 32, and 101 will stay the same. Appendix F of the
proposed Settlement includes a summary of both the current and updated electric and natural gas
rates and charges.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 5

YOU ARE FURTHER NOTIFIED that the Proposed Settlement sets forth the following
tables of percentage change to electric service schedules for Rate Year 1 and Rate Year 2.
Effective September 1, 2025 (Rate Year 1)
Increase in Base Increase in
Rate Schedule Revenue Billing Revenue
Residential Schedule 1 6.3% 6.7%
General Service Schedules 11/12 6.6% 6.7%
Large General Service Schedules 21/22 7.9% 8.0%
Extra Large General Service Schedule 25 6.3% 6.5%
Clearwater Paper Schedule 25P 1.6% 1.6%
Pining Service Schedules 31/32 7.9% 8.0%
Street& Area Lights Schedules 41-48 4.8% 4.6%
Overall 6.3% 6.6%
Effective September 1, 2026 (Rate Year 2)
Increase in Base Increase in
hate schedule Revenue Billing Revenue
Residential Schedule 1 4.5% 4.7%
General Service Schedules 11/12 4.7% 4.8%
Large General Service Schedules 21/22 5.5% 5.6%
Extra Large General Service Schedule 25 4.5% 4.6%
Clearwater Paper Schedule 25P 1.2% 1.2%
Pumping Service Schedules 31/32 5.5% 5.6%
Street& Area Lights Schedules 41-48 3.4% 3.3%
Overall 4. °/. 4.6°/.
YOU ARE FURTHER NOTIFIED that the Proposed Settlement sets forth the following
tables of percentage change to natural gas service schedules for Rate Year 1 and Rate Year 2.
Effective September 1,2025 (Rate fear 1)
Increase in Increase in
Rate Schedule Margin Revenue Billing Revenue
General Service Schedule 101 11.1% 6.7%
Large General Service Schedules 111/112 0.0% 0.0%
Intemipt. Sales Service Schedules 131/132 0.0% 0.0%
Transportation Service Schedule 146 0.0% 0.0%
Overall 9.2% 5.4%
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 6

Effective September 1, 2026 (hate 1'ear 2)
Increase in Increase in
Rate Schedule Margin Revenue Billing Revenue
General Service Schedule 101 0.0% 0.00/0
Large General Service Schedules 111/112 -2.5% -1.1%
Interrupt. Sales Service Schedules 131/132 0.00/0 0.0%
Transportation Service Schedule 146 -2.5% -2.6%
Ove ran -0.4°(s -0.2%
YOU ARE FURTHER NOTIFIED that under Commission Rule 275, "[p]roponents of a
proposed settlement carry the burden of showing that the settlement is reasonable, in the public
interest, or otherwise in accordance with law or regulatory policy." IDAPA 31.01.01.275.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the proposed
Settlement reached by the Parties. The Commission will independently review any proposed
settlement to determine whether the settlement is just, fair, and reasonable, and in the public
interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a
settlement, reject a settlement, or state additional conditions under which a settlement will be
accepted. IDAPA 31.01.01.274-.276.
YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the
proposed Settlement or imposes any additional material conditions on its approval, each party
reserves the right to withdraw from the proposed Settlement.
YOU ARE FURTHER NOTIFIED that the proposed Settlement in Case Nos. AVU-E-25-
01/AVU-G-25-01 has been filed with the Commission and is available for public inspection during
regular business hours at the Commission's office or on the Commission's website at
www.puc.idaho.gov. Click on the "ELECTRIC" tab or "NATURAL GAS" tab in the left-hand
column of the home page, click "Open Cases," click on either case number as shown on the front
of this document. You then may access the Settlement by clicking on "STIPULATION AND
SETTLMENT.PDF"under the "Company"heading.
NOTICE OF AMENDED SCHEDULE
YOU ARE FURTHER NOTIFIED that based on the recently filed proposed Settlement,
the Commission finds it reasonable to amend the procedural schedule. The new Schedule is:
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 7

Customer Hearings June 25 & 26, 2025
Testimony Supporting the Settlement July 8, 2025
Technical Hearing July 23, 2025
Customer Comment Deadline July 23, 2025
YOU ARE FURTHER NOTIFIED that the date established for a customer hearing has not
changed from the schedule set in Order No. 36633. The technical hearing schedule established in
36586 has been amended. The technical hearing will take place only on July 23, 2025.
YOU ARE FURTHER NOTIFIED that all testimony and exhibits in this matter must
comport with the requirements of Rules 231 and 267 of the Commission's Rules of Procedure.
IDAPA 31.01.01.231 and .267.
NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this proposed
Settlement may file a written comment explaining why the person supports or opposes the
proposed Settlement. Persons interested in filing written comments must do so by July 23,
2025. 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
http://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.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 8

For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary Patrick D. Ehrbar
Idaho Public Utilities Commission Liz Andrews
P.O. Box 83720 Anni Glogovac
Boise, ID 83720-0074 Avista Utilities
secretary&puc.idaho.gov P.O. Box 3727
Spokane, WA 99220-3727
Street Address for Express Mail: pat.ehrbarAavistacorp.com
liz.andrewskavistacorp.com
11331 W. Chinden Blvd. anni.glo og vac(d),avistcorp.com
Building 8, Suite 201-A avistadockets&avistacorp.com
Boise, Idaho 83714
ORDER
IT IS HEREBY ORDERED that the procedural schedule, set forth in the above Notice of
Amended Schedule section, is approved.
IT IS FURTHER ORDERED that the Parties must file any testimony in support of the
proposed Settlement and any exhibits by July 8, 2025.
IT IS FURTHER ORDERED that the Customer Hearing scheduled in Order No. 36633
will take place as previously scheduled at Molstead Library's Todd Lecture Hall, 875 W. Garden
Avenue,Coeur d'Alene, ID 83814(North Idaho College)at 4:00 p.m. (local time). Those planning
on testifying are encouraged to arrive at the hearing location by 3:45 p.m. (local time) as the
hearing will conclude when it appears all customer testimony has been received. For those who
wish to call-in and listen to the customer hearing on June 25, 2025, please call 1-415-655-0001
and enter meeting number 2867 7715779 when prompted(customers will not be allowed to testify
telephonically during this hearing).
The customer hearing shall continue telephonically, Thursday, June 26, 2025, starting at
12:00 P.M. (PDT) and ending at 3:00 P.M. (PDT), or after all customer testimony has been taken,
whichever comes first. Those planning to testify are encouraged to call in by l 1:55 A.M. (PDT)
as the hearing will conclude when it appears all customer testimony has been received. Those who
wish to call-in and testify remotely during the June 26, 2025, customer hearing,please call 1-415-
655-0001 and enter meeting number 2861 516 9950 when prompted.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 9

IT IS FURTHER ORDERED that the Commission will hold a technical hearing for the
Parties at its office in Boise, Idaho, to offer evidence and examine witnesses on Wednesday, July
23, 2025, at 9:00 a.m. (local time).
IT IS FURTHER ORDERED that persons interested in submitting written comments on
the proposed Settlement must do so by July 23, 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 24th day of
June 2025. /
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I:\Legal\ELECTRIC\AVUE2501G2501_GRC\orders\ntc prop set amend sch_at.docx
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
NOTICE OF COMMENT DEADLINE
ORDER NO. 36651 10