20250820Notice_of_Application_Order_No_36729.pdf

Office of the Secretary
Service Date
August 20,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-G-25-05
CORPORATION'S FIXED COST )
ADJUSTMENT MECHANISM(FCA) ) NOTICE OF APPLICATION
ANNUAL RATE ADJUSTMENT FILING )
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 36729
On July 31, 2025, Avista Corporation ("Company") applied to the Idaho Public Utilities
Commission ("Commission") for authorization of an adjustment to its Fixed Cost Adjustment
("FCA") rates for natural gas service from November 1, 2025, through October 31, 2026. If the
new FCA rates are approved as filed, an average residential customer using 66 therms per month
could expect their monthly bill to increase $0.15, or 0.2%. The Company requested a November
1, 2025, effective date.
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' 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 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.
' "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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36729 1

NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company's FCA for the Residential Group
("Schedule 101") is proposed to increase from a present surcharge rate of 1.5060 per therm to an
updated surcharge rate of 1.7370 per therm, representing a $0.2 million, or 0.2%, increase to
Schedule 101 customers. Application at 1-2. The Company's FCA for the Non-Residential Group
("Schedules I I Iand 112") is proposed to decrease from a present surcharge rate of 1.0060 per
therm to an updated surcharge 0.6770 per therm, representing a $0.1 million, or 0.6%, decrease
for Schedule I I I and 112 customers.Id.
YOU ARE FURTHER NOTIFIED that the Company recorded $1,195,606 of deferred
revenue in the surcharge direction for its Schedule 101 natural gas customers for the 12-month
period ending on June 30, 2025. Id. at 6. The Company stated that the proposed surcharge rate of
1.7370 per therm is designed to recover$1,319,245 from the Company's Schedule 101 customers.
Id.
YOU ARE FURTHER NOTIFIED that the Company recorded $176,144 of deferred
revenue in the surcharge direction for its Schedule I I I and 112 natural gas customers for the 12-
month period ending on June 30, 2025. Id. at 7. The Company stated that the proposed surcharge
rate of 0.6770 per therm is designed to recover $191,431 from the Company's Schedule I I I and
112 commercial and industrial customers. Id.
YOU ARE FURTHER NOTIFIED that 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.
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office. The Application is also available on the
Commission's website at www.puc.idaho.gov. Click on the"GAS"icon, select"Open Cases,"and
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 that 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 APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36729 2

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 that it will proceed under Modified
Procedure pursuant to the Commission's Rules of Procedure 201-204, 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 the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments and explain why written comments alone are insufficient. Persons interested in filing
written comments, must do so by October 8, 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 APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36729 3

For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary Patrick D. Ehrbar
Idaho Public Utilities Commission David J. Meyer
P.O. Box 83720 Avista Utilities
Boise, ID 83720-0074 1411 E. Mission Avenue
secretga&puc.idaho.gov Spokane, WA 99220-3727
pat.ehrbargavi stacorp.com
Street Address for Express Mail: davidmeer(c avistacorp.com
dockets&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
October 15, 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 final
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 this Application be processed under Modified Procedure.
Persons interested in submitting written comments must do so by October 8,2025. The Company
must file any reply comments by October 15, 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36729 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20ffi day of
August, 2025.
G
EDWARD LODGE, PRE, T ENT
a,,_ 9��=
J R. HAMMOND JR., COMMISSIONER
DAYN HAKDIE, COMMISSIONER
ATTEST:
c o nchez
Commission Secretary
I ALegal\GA S V+W G2505_F CA\orders\ntc_app_mod_em.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 36729 5