20250929Final_Order_No_36777.pdf

Office of the Secretary
Service Date
September 29,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-25-07
CORPORATION'S POWER COST )
ADJUSTMENT (PCA) ANNUAL RATE )
ADJUSTMENT FILING ) ORDER NO. 36777
On July 31, 2025, Avista Corporation ("Company") applied to the Idaho Public Utilities
Commission ("Commission") requesting approval of recovery of power costs deferred for the
period July 1,2024 through June 30,2025, and approving a power cost adjustment("PCA")rebate
rate of 0.3010 per kilowatt-hour ("kWh") to be effective October 1, 2025 ("Application"). If the
new PCA rates are approved as filed, an average residential customer using 939 kWh of electricity
a month would expect their monthly bill to decrease by $0.51, or about 0.5 percent.
On August 20,2025,the Commission issued a Notice of Modified Procedure,setting public
comment and Company reply deadlines. Order No. 36726. Commission Staff("Staff') filed the
only comments.
Based on our review of the record,the Commission now issues this Final Order approving
the Company's Application.
BACKGROUND
The PCA is a mechanism that monitors changes in revenues and costs associated with
hydroelectric generation, secondary prices, thermal fuel costs, and changes in revenues and
expenses from power contracts. The present PCA rebate rate is 0.2460 per kWh, based on an
overall rebate of approximately $7.9 million, which was approved by the Commission in Order
Nos. 36339 and 36376,dated October 1, 2024 and October 30,2024,respectively, and is effective,
through September 30, 2025.
THE APPLICATION
The Company represented that the proposed PCA rate adjustment of 0.3010 per kWh
would return approximately $9.6 million to customers effective October 1, 2025. Id. at 3. The
Company stated that the proposed rebate is mainly due to power supply costs that were lower than
those included in retail rates because of lower wholesale electric and natural gas prices. Id. The
net effect of the expiring rebate rates and the proposed rebate rates effective from October 1,2025,
ORDER NO. 36777 1

through September 30, 2026, is an overall decrease in revenue of approximately 0.5 percent, or
$1.756 million.Id. at 3, 5.
STAFF COMMENTS
Staff reviewed and analyzed the Company's Application,the accompanying testimonies of
Company witnesses Kevin Holland and Kaylene Schultz, and additional information provided in
responses to production requests. Staff Comments at 2. Staff's review focused on the PCA deferral,
the prudence of actual net power cost, and the PCA rates. Id. Additionally, Staff reviewed the
sufficiency of the Company's customer notice and press release. Id. Based on its review, Staff
believed the requested PCA was prudent and recommended the Commission approve the
Company's Application updating Schedule 66, Temporary Power Cost Adjustment—Idaho. Id.
Staff s Comments included Table No. I below, providing support for its recommended
over collected deferral balance of$4,853,052, which would result in a projected ending balance
through September 2025 of negative $9,559,674. Id. at 3.
Table No. 1: Summary of Power Supply and Deferrals for Current PCA Year-Idaho
Idaho Power Cost Deferral Amount
LCAI —Idaho Sales Adjustment $ (1,797,928)
Net Power Supply—Actual Minus Authorized (2,186,366)
REC2 Revenues (960,768)
Schedule 25P Net Cost (808,011)
EIM3 Incremental O&M 360,791
Total Cost(Subject to Company Sharing) $ (5,392,282)
Sharing Percentage over Authorized 90%
Total Idaho Deferral Amount $ (4,853,052)
Balancing Account
Beginning Balance as of July 2025 (11,302,437
Projected Amortization July 2025 through September 2025 1,876,276
Interest4 (133,513)
Projected Ending Balance through September 2025 (9,559,674)
'Load Change Adjustment
2 Renewable Energy Credit
3 Energy Imbalance Market
4 Calculated using the Authorized Customer Deposit Rate of 5%per annum
Staff also believed that the Company's actual net power cost during the PCA year of July
2024 through June 2025 was reasonable and prudent. Id. at 5. Staff compared the actual amount
ORDER NO. 36777 2

of generation and unit cost to amounts used to determine the Company's base rates, analyzed plant
downtime, and reviewed Commission-ordered adjustments affecting the Company's actual net
power cost. Id.
Staff verified the proposed PCA rebate rate of 0.3 01¢ would reasonably refund customers
for overcollection of actual new power costs. Id. at 8. Staff's Comments included Table No. 2
below, indicating the percentage change by customer class that would result from approval of the
requested PCA rebate rate.Id.
Table No. 2: Percent Change of Billed Revenue by Schedule
Customer Class Forecasted Revenue at Proposed Percent
MWh Present Rates Change Change
(000s) (000s)
Residential 1,345,606 $ 165,358 $ (740) -0.4%
General Service 923,919 $ 90,280 $ (508) -0.6%
Large General Service 133,466 $ 18,739 $ (73) -0.4%
Extra Large General Service 349,435 $ 22,327 $ (192) -0.9%
Clearwater 368,629 $ 36,136 $ (203) -0.6%
Pumping Service 62,677 $ 7,577 $ (34) -0.4%
Street &Area Lights 9,772 $ 4,530 $ (5) -0.1%
Total 3,193,504 $ 344,947 $ (1,755) -0.5%
Staff reviewed the combined impact of the PCA proposed in this case, the Company's
proposed Fixed Cost Adjustment("FCA") filing (Case No. AVU-E-25-08), its Bonneville Power
Administration Residential Exchange Program("ResEx") filing(Case No. AVU-E-25-09), and its
Schedule 91, Energy Efficiency Rider Adjustment("EE Rider") filing(AVU-E- 25- 10) filing.Id.
Staffs Comments included Table No. 3, which summarizes the overall impact on electric
revenues, assuming the four filings are approved as submitted. Id. at 5.
Table No. 3: Summary of Overall Impact to Electric Revenues
Filing Change in Revenues % Change
PCA $2.6 million 0.8%
FCA ($1.8 million) -0.6%
ResEx Credit $1.9 million 0.6%
EE Rider $3.6 million 1.2%
Total $6.3 million 2.0%
ORDER NO. 36777 3

Staff also reviewed the Company's press release and customer notice that were included
with its Application. Id. The notice was included with bills mailed to customers between August
1, 2025, and August 29, 2025.Id. Staff believed that both met the requirements of Rule 125 of the
Commission's Rules of Civil Procedure.Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including Idaho Code §§ 61-301 through 303. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order. Idaho Code
§§ 61-501 through 503.
Having reviewed the Application, all submitted comments, and all submitted materials,the
Commission finds it fair,just, and reasonable to approve the Application as filed.
ORDER
IT IS HEREBY ORDERED that the Company's power costs deferred for the period of July
1, 2024, through June 30, 2025, are approved as filed.
IT IS FURTHER ORDERED that the Company's proposed tariff modifications to
Schedule 66 of a per kWh PCA rebate of 0.3010 with an effective date of October 1, 2025, are
approved as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one(21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
ORDER NO. 36777 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 29ffi day of
September, 2025.
G
Grp
DWARD LODGE, R44EANT
)HN R. HAMMOND JR., COMMISSIONER
DAYN HARDIE, COMMISSIONER
ATTEST:
Lau a Calderon Robles
Interim Commission Secretary
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