20250731Application.pdf

I 1,
Avista Corp. RECEIVED
1411 East Mission,P.O. Box 3727 JULY 31, 2025
Spokane,Washington 99220-0500 IDAHO PUBLIC
Telephone [phone] UTILITY COMMISSION
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 Decrease Schedule 191, 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 decrease its natural gas tariff Schedule 191, "Energy
Efficiency Rider Adjustment"rates, effective November 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
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR ) CASE NO. AVU-G-25-06
APPROVAL TO DECREASE ITS ENERGY )
EFFICIENCY TARIFF RIDER ) APPLICATION OF AVISTA
ADJUSTMENT SCHEDULE 191 )
In accordance with Idaho Code §61-502 and Idaho Public Utilities Commission Modified
Procedure Rule (RP) 052, Avista Corporation, dba 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 decrease to its natural
gas tariff, I.P.U.C. No. 27, Schedule 191, `Energy Efficiency Rider Adjustment" rates, effective
November 1, 2025.
Avista's Schedule 191 tariff rider rate adjustment is designed to recover costs incurred by
the Company associated with providing natural gas 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 months' expenditures of
APPLICATION OF AVISTA- 1

the Company's Natural Gas Energy Efficiency Program("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 decrease billed natural gas rates by approximately 3.5% through proposed
revisions in Schedule 191, with a requested effective date of November 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
MSC-10
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
Patrick D. Ehrbar
Director of Regulatory Affairs
Avista Utilities
P.O. Box 3727
MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
Avista Dockets (Electronic Only) -AvistaDockets&avistacorp.com
I. BACKGROUND
Avista's Schedule 191 funds the Natural Gas Energy Efficiency Program described in the
Company's Schedule 190. All revenue derived through Schedule 191 is applied only to the
APPLICATION OF AVISTA-2

provision of natural gas efficiency services including programs offered by the Company directly,
through designated contractors, or as part of regional natural gas programs, as well as evaluation,
measurement, and verification ("EM&V") of the 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,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 and water heating 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 the 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 191 tariff rider balance was approximately $2.9
million overfunded. Overfunded balances indicate that more tariff rider funding was collected than
actually needed to support the ongoing operations of the Natural Gas Energy Efficiency Program.
This overfunded balance was driven primarily by lower than expected participation in both
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

commercial and residential programs. This decreased participation can be attributed to several
factors,the most notable of which was a significant drop in the Company's avoided costs in 2024.
For energy efficiency, lower avoided costs reduce the Company's ability to provide meaningful
(i.e., high dollar amounts) incentives for customers, which directly impacts participation
throughput and associated savings. Avista responded to these avoided cost changes by more
aggressively managing the costs of its energy efficiency program—through actions like reducing
the marketing activities for the Natural Gas Energy Efficiency Program—in an effort to preserve
the overall cost-effectiveness of the natural gas portfolio.
Therefore, the Company is proposing to decrease rates collected in Schedule 191 to bring
the forecasted tariff balance close to $0 by October 31, 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 overcollection 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 191 more closely with the annual Program budget,thus
minimizing the future rate impact to customers.
IV. REQUEST FOR APPROVAL
Avista is proposing a decrease in the rates and charges in Schedule 191,to become effective
November 1, 2025. The estimated annual revenue change associated with this filing is an annual
decrease of approximately $3.1 million for natural Schedule 191, or a decrease of 3.5% in overall
billed rates. Residential customers using an average of 64 therms per month would see their
monthly bills decrease from$64.74 to $62.54,a decrease of$2.20 per month, or 3.4%. 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 proposed revisions
APPLICATION OF AVISTA-4

to tariff Schedule 191 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 191, attached to this Application as Attachment B, to be fair,just,
reasonable and nondiscriminatory, and effective for natural gas service rendered on and after
November 1, 2025, with this Application processed under the Commission's Modified Procedure
rules through the use of written comments.
DATED this 31st day of July 2025.
Respectfully submitted,
Avista Utilities
By: /s/Patrick Ehrbar
Patrick D. Ehrbar, Director of Regulatory Affairs
APPLICATION OF AVISTA-5