20250731APPLICATION.pdf

I ,1
RECEIVED
July 31, 2025
Avista Corp. IDAHO PUBLIC
1411 East Mission P.O. Box 3727 UTILITIES COMMISSION
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
July 31, 2025
Commission Secretary
State of Idaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise, Idaho 83702-5983
RE: Case No. AVU-E-25-07
Power Cost Adjustment (PCA)Annual Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
Attached for electronic filing with the Commission is the annual Power Cost Adjustment Rate
Filing.I The Company requests that the Commission issue an order approving recovery of power
costs deferred for the period July 1, 2024 through June 30, 2025, and approving a PCA rebate of
0.3 01¢ per kilowatt-hour to be effective October 1, 2025.
Under the Company's proposal, the PCA rebate rate for all customers, including residential
customers, would decrease from an existing rebate rate of 0.2460 per kilowatt-hour to a proposed
rebate rate of 0.3010 per kilowatt-hour, or a decrease in the rate of 0.055¢per kilowatt-hour. Since
PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, the resulting
percentage change varies by rate schedule. The overall decrease is approximately $1.8 million or
0.5%. Residential customers using an average of 939 kilowatt-hours per month would see their
monthly bills decrease from$104.30 to $103.79, a decrease of$0.51 per month, or 0.5%.
Certain supporting documents are CONFIDENTIAL, rendering these documents exempt from
public inspection, examination and copying pursuant to Sections 74-101 through 74-126 of the
Idaho Code. Avista believes that the identified CONFIDENTIAL supporting documents contain
valuable commercial information.
As such, Avista is submitting a separate electronic filing containing the electronic form of the
CONFIDENTIAL supporting documents, in compliance with Rule 067.02.b.
1 Case No. GNR-U-20-01, Order No. 35375

Please direct any questions regarding this filing to Ryan Finesilver at
roan.finesilverAavistacorp.com and (509) 495-4873 or Annette Brandon at
[e-mail] or [phone]
Sincerely,
/s/ Patrick EArbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures

I DAVID MEYER
2 VICE PRESIDENT AND CHIEF COUNSEL FOR
3 REGULATORY AND GOVERNMENTAL AFFAIRS
4 AVISTA CORPORATION
5 1411 E. MISSION AVENUE
6 P. O. BOX 3727
7 SPOKANE, WASHINGTON 99220
8 PHONE: [phone]
9
10 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
11
12 IN THE MATTER OF THE POWER COST )
13 ADJUSTMENT (PCA) ANNUAL RATE ) CASE NO. AVU-E-25-07
14 ADJUSTMENT FILING OF AVISTA ) APPLICATION OF AVISTA
15 CORPORATION ) CORPORATION
16
17
18 I. INTRODUCTION
19 In accordance with Idaho Code §61-502 and RP 052, Avista Corporation, doing
20 business as Avista Utilities (hereinafter "Avista" or "Company"), at 1411 East Mission
21 Avenue, Spokane,Washington,respectfully files its Power Cost Adjustment(PCA) annual
22 rate adjustment filing in the above referenced case. The Company requests the Commission
23 issue an order approving the level of power costs deferred in the rebate direction for the
24 period July 1, 2024 through June 30, 2025, and approving a PCA rebate rate of 0.3010 per
25 kilowatt-hour to be effective October 1, 2025. The Company requests that this filing be
26 processed under the Commission's Modified Procedure Rules through the use of written
27 comments.
28 Communications in reference to this Application should be addressed to:
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 1

I David Meyer
2 Vice President and Chief Counsel for
3 Regulatory Affairs
4 Avista Corporation
5 P.O. Box 3727
6 MSC-10
7 1411 E. Mission Ave
8 Spokane, WA 99220-3727
9 Phone: [phone]
10 [e-mail]
11
12 Patrick D. Ehrbar
13 Director of Regulatory Affairs
14 Avista Utilities
15 P.O. Box 3727
16 MSC-27
17 1411 E. Mission Ave
18 Spokane, WA 99220-3727
19 Phone: [phone]
20 [e-mail]
21
22 Electronically
23 [e-mail]
24
25 II. BACKGROUND
26 Avista's PCA is used to track changes in revenues and costs associated with
27 variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes in
28 power contract revenues and expenses. Avista's existing PCA methodology and method
29 of recovery were approved in Case No. AVU-E-07-01 by Order No. 30361 dated June 29,
30 2007. In that case, the Commission approved a change in the PCA methodology from a
31 trigger and cap mechanism to a single annual PCA rate adjustment filing requirement.
32 The Commission also approved a change in the method of the PCA deferral rate
33 adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis
34 effective with the October 1, 2007 PCA rate change. By Order No. 32206 in Case No.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2

I GNR-E-10-03 dated March 15, 2011, the Commission modified the retail revenue credit
2 methodology and approved a Load Change Adjustment Rate based on the energy classified
3 portion of embedded production revenue requirement effective April 1, 2011.
4 The Commission approved the following procedural schedule for administering the
5 annual PCA filings:
6 August 1 Company filing for prior July—June deferral period
7 September 1 Review and comments by Staff and other interested parties
8 October 1 Commission Order/effective date of PCA rate adjustment
9
10 The present PCA rebate was made effective on October 1, 2024. On July 31,2024,
11 in Case No. AVU-E-24-07, Avista filed its annual PCA rate adjustment for the deferral
12 period July 1, 2022 through June 30, 2023 and requested a PCA rebate rate of 0.2460 per
13 kilowatt-hour,based on an overall rebate of approximately $7.9 million, effective October
14 1, 2024. That rebate will end on September 30, 2025. The Commission approved that
15 application in Order No. 36339,dated October 1, 2024 and Order No. 36294 dated October
16 30, 2024.
17 The proposed PCA rate adjustment of 0.3010 per kilowatt-hour would rebate to
18 customers approximately $9.6 million effective October 1, 2025. The rebate is primarily
19 associated with power supply costs that were lower than those included in retail rates, due
20 to higher off-system sales revenues. The net effect of the expiring rebate, and the proposed
21 rebate, is an overall decrease in revenue of approximately 0.5 percent, or$1.756 million.
22
23 III.DEFERRALS—JULY 1, 2024 THROUGH JUNE 30, 2025
24 The amount of power cost deferrals for the period July 1, 2024, through June 30,
25 2025, is shown below, as well as interest for the same period. Company witness Mr.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3

I Holland's testimony provides an explanation of the factors causing the deferral entries for
2 the period. Company witness Ms. Brandon's testimony addresses the deferral, Renewable
3 Energy Credit Benefit, and interest amount.
4 Power Supply Deferrals(July 2024-June 2025) $ (5,177,764)
Energy Imbalance Market Opeations and Maintenance Expense $ 324,712
5 Renewable Energy Credit Retirement Benefit $ (2,755,522)
Interest $ (305,405)
6 Total Deferral Balance $ (7.213.2791
7 Quarterly reports have been filed with the Commission regarding actual PCA
8 deferral entries to date.' An additional copy of those reports for the quarters of Q3 2024,
9 Q4 2024, Q1 2025 and Q2 2025 been included with this filing and has also been provided
10 to Clearwater Paper Corporation and Idaho Forest Group.
11
12 IV. PROPOSED RATE TO BE EFFECTIVE OCTOBER 1, 2025
13 The Company is proposing a uniform cents per kilowatt-hour PCA rebate rate of
14 0.3010 to be effective October 1, 2025 (from the present rebate rate of 0.246¢ per kilowatt-
15 hour). See page 1 of Ms. Brandon's Exhibit No. AMB-1 for the calculation of the proposed
16 rate. Attached to this Application as Exhibit "A" is a copy of the proposed tariff, Schedule
17 66,which contains the proposed PCA rate. Exhibit"A" also includes the proposed changes
18 to Schedule 66 in strike out/underline format. The proposed rate is designed to rebate the
19 following:
1 In Case No. AVU-E-23-08, Order No. 35937, the Company was directed to submit PCA reports, which
must include the Power Transaction Register(PTR)and Gas Accounting Data Download(GADD)in Staff s
recommended file formats, to the Commission on a quarterly basis. The Company filed its first quarterly
report on October 13,2023,beginning with Q3 2023,which included the confidential PTR and GADD reports
for that quarter. Subsequent quarterly filings of the alike have been made to date.
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4

I Power Supply Deferrals(July 2024- June 2025) $ (4,853,052)
Renewable Energy Credit Retirement Benefit $ (2,755,522)
2 Interest $ (305,405)
3 Total Deferral Balance $ (7,913,979)
4 Unamortized Balance from Previous Deferrals (prior to July 1,2024) $ (4,044,204)
Amortization July 2024 - June 2025 $ 960,538
5 Interest $ (304,792)
Total Remaining Amortization Balance $ (3,388,458)
6
PCA Year Ending June 30, 2025 $ (11,302,437)
7
8 Projected Amortization and Total Interest(July 2025-September 2025) $ 1,742,763
9
TOTAL BALANCE FOR AMORTIZATION $ (9,559,674)
10
11 After applying the conversion factor related to commission fees and uncollectible
12 customer accounts to the "Total Balance for Amortization" shown above, the resulting
13 credit balance of$9,559,674 is divided by forecasted kilowatt-hours to derive the proposed
14 rebate rate of 0.3010 per kilowatt-hour.a
15 Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis, the
16 resulting percentage decreases vary by rate schedule. Page 1 of Ms. Brandon's Exhibit No.
17 AMB-1 shows the effect of the proposed PCA rebate by rate schedule. The overall decrease
18 in revenue, after accounting for the expiration of the existing rebate, and the new rebate, is
19 approximately $1.756 million or 0.5%. The revenue impact by rate schedule is as follows:
20
21
22
2 Total Balance for Amortization($9,559,674)divided by conversion factor 0.995661 =($9,601,674).
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5

I Residential customers using an average of 939 kilowatt-hours per month would see their
2 monthly bills decrease from $104.30 to $103.79, a decrease of$0.51 per month, or 0.5%.
3
Schedule Percent change
4 Type of Service Number on Billed Revenue
Residential 1 -0.4%
5 General Service 11,12 -0.6%
Large General Service 21,22 -0.4%
6 Extra Large General Service 25 -0.9%
Clearwater 25P -0.6%
7 Pumping Service 31,32 -0.4%
8 Street&Area Lights 41-49 -0.1%
Total -0.5%
9
10 V. REQUEST FOR RELIEF
11 The Company requests that the Commission issue an order approving power costs
12 deferred for the period July 1, 2024 through June 30, 2025, and approving a PCA rebate
13 rate of 0.3010 per kilowatt-hour to be effective October 1, 2025. Under the Company's
14 proposal, the PCA rate for all customers, including residential customers, would decrease
15 from a rebate rate of 0.2460 per kilowatt-hour to a rebate rate of 0.3100 per kilowatt-hour.
16 Since PCA rate adjustments are spread on a uniform cents per kilowatt-hour basis, the
17 resulting percentage decrease varies by rate schedule. The overall decrease in revenue is
18 approximately$1.756 million or 0.5%. The Company requests that the matter be processed
19 under the Commission's Modified Procedure rules through the use of written comments.
20 Dated at Spokane, Washington this 31St day of July 2025.
21 AVISTA CORPORATION
22
23 By: /s/David Meyer
24 Vice President and Chief Counsel
25 Regulatory & Governmental Affairs
AVISTA'S PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6

CASE NO. AVU-E-25-07
2025 Idaho PCA Filing
Exhibit "A"
Brandon, Di 1
Avista Corporation

Twenty-Seventh Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty-Sixth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.3010 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 31, 2025 Effective October 1, 2025
Issued by Avista Utilities
By Patrick Ehrbar— Director of Regulatory Affairs
\T -

Twenty-Sixth Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty Fifth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.2460 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued October 1, 202 Effective October 1, 2824
Issued by Avista Utilities
B(y� Patrick Ehrbar— Director of Regulatory Affairs

Twenty-Seventh Revision Sheet 66
Canceling
I.P.U.C. No.28 Twenty-Sixth Revision Sheet 66
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 66
TEMPORARY POWER COST ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of Idaho where the Company has electric service
available. This Power Cost Adjustment shall be applicable to all retail customers for
charges for electric energy sold. This Rate Adjustment is designed to recover or
rebate a portion of the difference between actual and allowed net power supply costs.
MONTHLY RATE:
The energy charges of electric Schedules 1, 11, 12, 21, 22, 25, 25P, 31, 32, and
41-49 are to be decreased by 0.3010 per kilowatt-hour in all blocks of these rate
schedules.
SPECIAL TERMS AND CONDITIONS:
The rates set forth under this Schedule are subject to periodic review and
adjustment by the IPUC based on the actual balance of deferred power costs.
Service under this schedule is subject to the Rules and Regulations contained
in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Issued July 31, 2025 Effective October 1, 2025
Issued by Avista Utilities
B(y� Patrick Ehrbar— Director of Regulatory Affairs