20250930Final_Order_No_36779.pdf

Office of the Secretary
Service Date
September 30,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA'S ) CASE NO. AVU-E-25-10
APPLICATION TO INCREASE ITS ENERGY )
EFFICIENCY TARIFF RIDER ) ORDER NO. 36779
ADJUSTMENT SCHEDULE 91 )
On July 31, 2025, Avista Corporation, dba Avista Utilities ("Company"), applied to
increase its I.P.U.C.No. 28, Schedule 91, "Energy Efficiency Rider Adjustment"rates ("Schedule
91), effective October 1, 2025. The Company requests processing of this matter via modified
procedure.
On August 20, 2025, the Idaho Public Utilities Commission ("Commission") issued a
Notice of Application and Notice of Modified Procedure, establishing a public comment deadline
and a Company reply deadline. Commission Staff("Staff') filed the only comments.
Having reviewed the record, the Commission now issues this Order approving the
Company's Application.
BACKGROUND
Schedule 91 is designed to recover costs of energy efficiency services and programs offered
to customers. These programs provide customers with financial incentives or rebates for
participating in electric energy efficiency programs, such as behavioral programs, low-income
weatherization, and energy efficiency measures.
THE APPLICATION
The Company seeks to adjust its tariff riders to fund the next 12 months of Electric Energy
Efficiency Program expenses while minimizing future under- or over-collections. According to
the Company,the Schedule 91 (electric)tariff rider balance was about$17 million underfunded as
of June 30, 2025. To address this, the Company proposes increasing Schedule rates over the next
36 months. If approved, the change would raise annual revenue by about $3.6 million, increasing
billed rates by 1.2% overall. A typical residential customer using 939 kilowatt-hours per month
would see a monthly bill increase of about$1.32, or 1.1%.
ORDER NO. 36779 1

STAFF COMMENTS
I. The Proposed Schedule 91 Adjustment
After reviewing the Company's Application, supporting workpapers, and rate calculations,
Staff recommended approval of the proposed 1.2% increase in Schedule rates. Staff believed the
increase will better align Schedule 91 revenues with the Company's projected Demand Side
Management("DSM") expenses and help reduce the current underfunded balance.
The Company provided a three-year (2025-2028) forecast of Schedule 91 revenues and
DSM expenditures, which Staff verified for accuracy. According to the Company's workpapers,
the proposed rates will fund ongoing program costs and gradually return the Schedule 91 balance
to zero by September 2028. Staff found the proposed increase reasonable. Staff also confirmed
that the new rate adjustments were correctly applied across customer classes.
As stated, the Company's Schedule 91 was underfunded by about $17 million as of June
30, 2025. According to the Company, this shortfall was largely due to higher-than-expected
participation in the Small Business Lighting direct-install and Midstream programs. The Company
proposed a rate adjustment to recover the shortfall by September 30, 2028, spreading collections
over a longer period to align revenues with the annual Energy Efficiency Program budget and
reduce rate impacts on customers.
II. Billing Impact of Four Rate Filings Effective October 1, 2025
The Company proposed four electric rate adjustments effective October 1, 2025: the EE
Rider(AVU-E-25-10) would increase revenues by $3.6 million(1.2%), the PCA(AVU-E-25-07)
would decrease revenues by $1.8 million (0.6%), the Residential Exchange Program or ResEx
(AVU-E-25-09) would increase revenues by $1.9 million(0.6%), and the Fixed Cost Adjustment
or FCA (AVU-E-25-08) would increase revenues by $2.6 million(0.6%). The combined effect of
these filings would raise electric revenues by approximately $6.3 million (2.0%) and increase the
average residential customer's monthly bill by about$3.43, or 3.3%.
ORDER NO. 36779 2

The following Table No. 2 from Staff s comments describes the overall effect of these
filings:
Table No. 2: Summary of Overall Impact to Electric Revenues
Filing Change in Revenues % Change
EE Rider $3.6 million 1.2%
PCA ($1.8 million) -0.6%
ResEx Credit $1.9 million 0.6%
1 CA $2.6 million 0.8%
Total $6.3 million 2.0%
III. Customer Notice and Press Release
Staff reviewed the Company's press release and customer notice included with the
Application and found that both met the requirements of Rule 125 of the Commission's Rules of
Procedure (IDAPA 31.01.01.125). The notice was distributed with customer bills from August 1
through August 29, 2025.
Staff believed that the comment deadlines set in this case may not have provided some
customers adequate time to submit comments. Accordingly, Staff recommended that the
Commission consider late filed comments. As of September 25, 2025, no public comments have
been filed.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company and this matter pursuant to Idaho Code
§§ 61-502 and 61-503. The Commission has the express statutory authority to investigate rates,
charges, rules, regulations, practices, and contracts of public utilities and to determine whether
they are just, reasonable, preferential, discriminatory, or in violation of any provision of law, and
may fix the same by order. Idaho Code §§ 61-502 and 61-503.
Based upon the Company's Application and Staffs audit, we find that the electric Energy
Efficiency Rider account is underfunded by approximately $17 million as of June 30, 2025. We
further find that a primary contributor to this shortfall was largely due to higher-than-expected
participation in the Small Business Lighting direct-install and Midstream programs. Based upon
our review of the record, we find that it is reasonable to recover the deficiency and fund ongoing
ORDER NO. 36779 3

DSM programs by increasing the Schedule 91 Energy Efficiency Rider by 1.2% in billed rates.
We also find the Company's proposal to recover the underfunded balance over three years to be
reasonable.
In sum, we find that the current Energy Efficiency Rider is insufficient to defray the
Company's energy efficiency and DSM costs. We also find that the rates proposed in the
Company's Application are just and reasonable and shall become effective on October 1, 2025.
ORDER
IT IS HEREBY ORDERED that the Company's Application to increase its electric
Schedule 91 by 1.2% of billed rates is granted.
IT IS FURTHER ORDERED that tariff Schedule 91 that accompanied the
Application is approved to be effective on October 1, 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon 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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30ffi day of
September 2025.
�AR
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DW ODGE Ilk.ES NT
/HN . HAMMOND JR., COMMISSIONER
DAYN HARDIE COMMISSIONER
ATTEST:
Laura Calderon Robles
Interim Commission Secretary
I:\Legal\ELECTRIC\AV U-E-25-10_EER\orders\A V UE2510_final_at.docx
ORDER NO. 36779 4