20250829APPLICATION.pdf

11 "U
RECEIVED
Avista Corp. August 29, 2025
1411 East Mission P.O. Box 3727 IDAHO PUBLIC
Spokane, Washington 99220-0500 UTILITIES COMMISSION
Telephone [phone]
Toll Free 800-727-9170
August 29, 2025
Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise, Idaho 83714
RE: AVU-G-25-_ Avista Utilities Proposed Tariff Schedule 195 "Optional Renewable
Natural Gas"
Dear Secretary,
Attached for filing with the Commission is Avista Corporation's dba Avista Utilities
(Avista or the Company) proposed revision to Tariff Schedule 195 "Optional Renewable Natural
Gas." The proposed schedule is included in the following tariff sheets, I.P.U.0 No. 28:
First Revision Sheet No. 195 Canceling Original Sheet No. 195
I. INTRODUCTION
Through the attached Tariff Schedule 195 modifications, Avista hereby proposes to revise
the voluntary Renewable Natural Gas (RNG) program (Program) that provides natural gas
customers within Avista's Idaho natural gas service territory a voluntary opportunity to purchase
RNG as part of their monthly billing. The Company proposes to increase the therms provided per
$5.00 block from 1.5 therms to 2 therms. Avista requests that the proposed revision to Schedule
195 be approved to become effective on January 1, 2026,and requests that the matter be processed
under the Commission's Modified Procedure rules through the use of written comments.

II. BACKGROUND
On March 1, 2022, the Company requested Commission approval to implement its
proposed tariff schedule 195 — Optional Renewable Natural Gas program that
provides customers an opportunity to purchase RNG as part of their regular monthly service to
offset their carbon emissions.' In accordance with Order 35549,Avista implemented the original
program design as approved,providing customers the option to purchase blocks of RNG,where
each block includes the environmental attributes represented by the equivalent to 1.5 therms of
RNG at a price of $5.00 per block. All charges related to the program are in addition to the
customer's regular natural gas charges.
Avista originally signed an agreement with Puget Sound Energy (PSE) to acquire the
necessary RNG volumes needed to support the Program, however, that contract ended in
December 2024. As such, the Company signed a new contract with Pine Creek to purchase RTCs
on behalf ofprogram participants. This contract price is significantly less than the original contract
with PSE,prompting the proposed revision provided herein.
III. PROGRAM DESIGN
As noted above, the Company entered into a new agreement with Pine Creek to support
the Program.2 The Company was able to secure abetter price for RTCs in the agreement with Pine
Creek compared to the legacy agreement and is proposing to pass those savings on to participating
customers by updating the program design to have each block of RNG include the environmental
attributes equivalent to 2 therms for RNG at the same price. This is a 33 percent increase in therms
per block.
1 Case No.AVU-G-22-01
2 This is a 15-year agreement to acquire RTCs from Pine Creek's Horn Rapids facility, located in Richland,
Washington.
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As a part of this proposal, the Company completed a thorough analysis of the program
costs to date and forecasted future expenses, as well as several other factors and pricing models as
provided in confidential Attachment A. The Company believes maintaining the $5.00 per block
cost model is easy for customers to understand and maintains a consistent bill impact if the
proposed change is approved. By maintaining the existing block cost,the Company can maximize
value to customers by increasing the environmental attributes associated with their contribution.
This proposal best aligns with the program goals, expected future growth,and administrative costs
based on historical data to allow for the Program to continue operating while containing all costs
and revenue within the Program. The breakdown of program costs is included in Attachment A to
this filing.
The Company will maintain the structured price to confine Program costs and benefits
strictly to Program participants, including the supply of RNG attributes and Program
administration costs.Additionally,the Company utilizes the Midwest Renewable Energy Tracking
System(M-RETS) for purposes of the Program and retiring environmental attributes on behalf of
participating customers.
Lastly, Program enrollment remains simple for customers and may be initiated online or
over the phone with a Customer Service Representative (CSR). Customers will continue to have
the opportunity to participate with no contract required and have the option to enroll and/or cancel
participation at any time.
IV. CONCLUSION
In conclusion, Avista's proposed change provides additional value to customers by
providing 2 therms of RNG per$5.00 block instead of 1.5 therms, ultimately reducing their carbon
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footprint through the purchase of RNG. Avista requests that the proposed modifications to
Schedule 195 be approved to become effective on January 1, 2026,and requests that the matter be
processed under the Commission's Modified Procedure rules through the use of written comments.
Please note that certain sections of Attachment A contains CONFIDENTIAL inforination
and should be treated as CONFIDENTIAL. As such, the Company has provided both a
confidential and redacted version. Please direct any questions regarding this filing to Amanda
Ghering at amanda.ghering(a,avistacorp.com or 509-495-7950.
Sincerely,
,4waada 5;"v
Regulatory Affairs Manager
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