The URL can be used to link to this page

Home My WebLink About20250820Notice_of_Application_order_No_36727.pdf Office of the Secretary Service Date August 20,2025 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA ) CASE NO. AVU-E-25-08 CORPORATION'S FIXED COST ) ADJUSTMENT (FCA) MECHANISM ) NOTICE OF APPLICATION ANNUAL RATE ADJUSTMENT FILING ) NOTICE OF MODIFIED PROCEDURE ORDER NO. 36727 On July 31, 2025, Avista Corporation ("Company") applied to the Idaho Public Utilities Commission ("Commission") requesting approval of fixed cost adjustment ("FCA") deferrals for the period of July 1, 2024 through June 30, 2025, a per kilowatt-hour ("kWh") FCA surcharge of 0.0180 for the Residential Group(Schedule 1 customers),and a per kWh FCA surcharge of 0.0580 for the Non-Residential Group (Schedule 11, 12, 21, 22, 31 and 32 customers) to be effective October 1,2025 ("Application"). If the new FCA rates are approved as filed, an average residential customer using 939 kWh of electricity a month would expect their monthly bill to increase by $1.38, or about 1.3 percent. With this Order, the Commission provides notice of the Company's Application and orders that the Application be processed under Modified Procedure. 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—such as infrastructure and customer service, which do not vary with energy use, output, or production, and remain relatively stable between rate cases—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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36727 1 authorized the Company to extend its FCA mechanism for both gas and electric customers through March 31,2025. Order No. 34502. On September 27,2025,the Commission granted the Company authorization to adjust its FCA rates for electric service from October 1, 2024,through September 30, 2025. Order No. 36335 at 5. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that the Company represents that the FCA rate for the Residential Group is proposed to change from a present rebate rate of 0.129¢ to a proposed surcharge rate of 0.0 18 0 per kWh, representing a$2 million, or 1.2 percent increase to Schedule I customers.Application at 1-2. The Company states that the proposed surcharge for the Residential Group is designed to recover$242,209 from customers. Id. at 6. YOU ARE FURTHER NOTIFIED that the Company represents that the FCA rate for the Non-Residential Group is proposed to change from a present surcharge rate of 0.0040 to a proposed surcharge rate of 0.0580 per kWh representing a $0.6 million, or 0.5%, increase to the Non- Residential Group customers. Id at 1-2. The Company states that the proposed surcharge for the Non-Residential Group is designed to recover$649,636 from customers. Id. at 7. YOU ARE FURTHER NOTIFIED that the Company states that the proposed surcharge rate for both the Residential Group and Non-Residential Group are the result of lower monthly use-per-customer than that embedded in the 2022 test year due to a warmer than normal 12-month period that ended June 30, 2025.Id. at 6. 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._og_v. Click on the "ELECTRIC" 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 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 NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36727 2 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 September 10, 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. For the Idaho Public Utilities For the Company: Commission: Commission Secretary David Meyer Idaho Public Utilities Commission Avista Corporation P.O. Box 83720 P. O. Box 3727 Boise, ID 83720-0074 Spokane, WA 99220- 3727 secretary(apuc.idaho.gov david.meyer(ae,avistacorp.com NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36727 3 Street Address for Express Mail: Patrick D. Ehrbar Avista Corporation 11331 W. Chinden Blvd. P. O. Box 3727 Building 8, Suite 201-A Spokane, WA 99220- 3727 Boise, ID 83714 patrick.ehrbargavistacorp.com Electronically dockets(a),avistacorp.com YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by September 17, 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 September 10, 2025. The Company must file any reply comments by September 17, 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. 36727 4 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20ffi day of August 2025. G Gv� ED ARD LODGE, ES NT R. HAMMOND JR., COMMISSIONER DAMN HA IE, COMMISSIONER ATTEST: I jo-A� onic Ba o - nchez Commission Secretary I:\Legal\ELECTRIC\AV U-E-25-08_FCA\orders\AV UE2508_ntc_app_modjl.docx NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE ORDER NO. 36727 5