20250731APPLICATION.pdf

I 1,
RECEIVED
Avista Corp. July 31, 2025
1411 East Mission,P.O. Box 3727 IDAHO PUBLIC
Spokane,Washington 99220-0500 UTILITIES COMMISSION
Telephone [phone]
Toll Free 800-727-9170
July 31, 2025
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714
RE: Avista Utilities Request To Increase Schedule 91, Energy Efficiency Rider
Adjustment
Dear Commission Secretary:
In accordance with Idaho Code §§ 61-501 and -507, and pursuant to Rule of Procedure
(RP) 53 (IDAPA 31.01.01.53),Avista Corporation, dba Avista Utilities("Avista"or"Company"),
hereby submits for electronic filing with the Idaho Public Utilities Commission ("Commission")
its Application requesting approval to increase its electric tariff Schedule 91, "Energy Efficiency
Rider Adjustment"rates, effective October 1, 2025.
If you have any questions regarding this filing, please contact Kim Boynton, Manager of
Energy Efficiency Analytics, at(509) 495-4744 or kim.bo, ntongavistacorp.com.
Sincerely,
14/,�"w a§�w
Jaime Majure
Regulatory Affairs Manager

DAVID J. MEYER, ESQ.
VICE PRESIDENT AND CHIEF COUNSEL OF
REGULATORY AND GOVERNMENTAL AFFAIRS
Avista Corporation
1411 E. Mission Avenue
P.O. Box 3727
Spokane, Washington 99220
Phone: [phone]
david.meyera,avistacorp.com
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR ) CASE NO. AVU-E-25-10
APPROVAL TO INCREASE ITS ENERGY )
EFFICIENCY TARIFF RIDER ) APPLICATION OF AVISTA
ADJUSTMENT SCHEDULE 91 )
In accordance with Idaho Code §61-502 and Idaho Public Utilities Commission Modified
Procedure Rule (RP) 052, Avista Corporation, doing business as Avista Utilities ("Avista" or
"Company"), at 1411 East Mission Avenue, Spokane, Washington, hereby respectfully applies to
the Idaho Public Utilities Commission("Commission")for an order authorizing Avista to increase
to its electric tariff, I.P.U.C. No. 28, Schedule 91, `Energy Efficiency Rider Adjustment" rates,
effective October 1, 2025.
Avista's Schedule 91 is tariff rider rate adjustment designed to recover costs incurred by
the Company associated with providing cost-effective energy efficiency services and programs to
customers. The tariff rider mechanism is intended to match future revenue with budgeted
expenditures; to ensure appropriate recovery, the mechanism includes a true-up feature that
reconciles the previous periods' actual expenditures and collections. The purpose of this filing is
to establish tariff riders that are sufficient to fund the following twelve (12) months' expenditures
APPLICATION OF AVISTA- I

of the Company's Electric Energy Efficiency Program, as well as amortize any tariff rider
imbalance, thus minimizing the amount of future under-or-over-collections. In this filing, Avista
proposes to increase billed electric rates by approximately 1.2% through proposed revisions
in Schedule 91, with a requested effective date of October 1, 2025. The Company also requests
that this filing be processed under the Commission's Modified Procedure Rules (RP 201-204).
All communications, pleadings, and orders with respect to this Application should be
directed to:
David J. Meyer, Esq.
Vice President and Chief Counsel of
Regulatory and Governmental Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC 27
Spokane, Washington 99220-3727
Telephone: [phone]
E-mail: david.meyergavistacorp.com
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Corporation
P.O. Box 3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
Avista Dockets (Electronic Only) -AvistaDocketskavistacorp.com
I. BACKGROUND
Avista's Schedule 91 funds the Electric Energy Efficiency Program as described in the
Company's Schedule 90.All revenue derived through Schedule 91 is applied only to the provision
of electric efficiency services, including programs offered by the Company directly, through
designated contractors, or as part of regional electric programs, as well as evaluation,
APPLICATION OF AVISTA-2

measurement, and verification("EM&V") of these programs. These programs include,but are not
limited to, behavioral programs, low-income weatherization, Northwest Energy Efficiency
Alliance(NEEA)participation,and provision of incentives for various energy efficiency measures
such as appliances, compressed air, HVAC, industrial, lighting, maintenance, motors, shell, and
sustainable buildings. The Company's programs are based on providing a financial incentive, or
"rebate," for cost-effective efficiency measures, or a direct customer benefit, such as a direct-
install service or home energy audit. Avista also offers Midstream programs, through which
incentives are paid to distributors to ensure that energy efficient HVAC,water heating and kitchen
equipment is always available in the market for customers to purchase.
While several metrics are applied to determine the costs and benefits of these programs,
the Utility Cost Test (UCT) and Total Resource Cost (TRC) test are most often utilized for
purposes of determining cost-effectiveness and to provide insights into program efficacy.'Idaho's
energy efficiency programs focus primarily on the UCT as its benchmark for cost-effectiveness.
Ratios over 1.0 illustrate that benefits exceed costs.
As of June 30, 2025, the current Schedule 91 (electric) tariff rider balance was
approximately $17 million underfunded. Underfunded balances indicate that not enough tariff
rider funding was collected to fund the actual ongoing costs of the Energy Efficiency Program
operations. This underfunded balance was driven by two main factors. The most notable factor
leading to this balance is the unanticipated level of customer participation in the Company's Small
Business Lighting direct-install program. This program has, and continues to be, a successful
1 The Total Resource Cost test measures the net costs of an energy efficiency program as a resource option based on
the total costs of the program,including both the participants'and the utility's costs.Further,it includes the impact of
any quantifiable non-energy impacts that may be associated with the equipment installed. In comparison,the Utility
Cost Test measures the net costs of an energy efficiency program as a resource option based on the costs incurred only
by the program administrator(including incentive costs)and excluding any net costs incurred by the participant. The
benefits are similar to the TRC benefits, however, exclude non-energy impacts; costs are therefore defined more
narrowly.
APPLICATION OF AVISTA-3

source of energy savings for Avista and its customers — with throughput much higher than
anticipated. This massive increase in participation continues to drive much higher than expected
energy savings, which, in turn, propels increases in the overall costs of Avista's Electric Energy
Efficiency Program. Second, the Company's Midstream program, while to a lesser degree than
those resulting from the Small Business Lighting direct install program, has also been a large
contributor to increased energy efficiency program costs, again because of higher than expected
customer participation.
To best support these increases in customer participation and associated increases in costs
of the Electric Energy Efficiency Program, the Company is proposing to increase rates collected
in Schedule 91 to bring the forecasted tariff balance close to $0 by September 30, 2028; this
approach will provide an appropriate level of funding for Avista's Energy Efficiency Program for
the next thirty-six (36) months and minimize the continued under collection of tariff rider funds
over this three-year period. By extending the collection period over a longer period of time, the
Company is attempting to align the collection of revenue in Schedule 91 more closely with the
annual Energy Efficiency Program budget, thus minimizing the future rate impact to customers.
IV. REQUEST FOR APPROVAL
Avista is proposing an increase in the rates and charges in Schedule 91,to become effective
October 1, 2025. The estimated annual revenue change associated with this filing is an annual
increase of approximately $3.6 million for electric Schedule 91, or an increase of 1.2% in overall
billed rates. Residential customers using an average of 939 kilowatt-hours per month would see
their monthly bills increase from $116.71 to $118.03, an increase of$1.32 per month, or 1.1%.
Attachment A to this Application provides the corresponding workpapers and rate calculations for
the revisions to the Energy Efficiency Rider Adjustment described herein. Additionally, the
APPLICATION OF AVISTA-4

proposed revisions to tariff Schedule 91 are provided as Attachment B to this filing, including the
proposed revisions in legislative format per RP 121.
V. CUSTOMER NOTIFICATION
In conformance with RP 125, this Application will be brought to the attention of
the Company's customers by way of a customer notice, provided as Attachment C to this filing,
which will be included in customer bills beginning in early August 2025 and run for a full billing
cycle. Notice will also be given simultaneously with the filing, by posting of the Application to
the Company's website at myavista.com.
VI. CONCLUSION
Avista hereby respectfully requests the Commission issue its Order finding the proposed
rates and charges in Schedule 91, attached to this Application as Attachment B, to be fair, just,
reasonable and nondiscriminatory, and effective for electric service rendered on and after October
1, 2025, with this Application processed under the Commission's Modified Procedure Rules
through the use of written comments.
DATED this 31 st day of July 2025.
Respectfully submitted,
Avista Utilities
By: /s/Patrick Ehrbar
Patrick D. Ehrbar, Director of Regulatory Affairs
APPLICATION OF AVISTA-5