20251001News Release.pdf

Idaho Public Utilities Commission Brad Littte,Governor
P.O. Boot 83720. Boise. ID 83720-0074 Edward Lodge, Resident
John R.Hamnwnd, Jr.,Commissioner
Dayn Hardie,Commissioner
Case No. AVU-E-25-07
Order No. 36777
Case No. AVU-E-25-08
Order No. 36784
Case No. AVU-E-25-09
Order No. 36767
Case No. AVU-E-25-10
Order No. 36779
Contact: Adam Rush
Office: [phone]
E-mail: [e-mail]
NEWS RELEASE: Commission approves northern Idaho electric utility's applications that will
increase rates for customers.
BOISE (Oct. 1, 2025)—The Idaho Public Utilities Commission has approved four applications
submitted by Avista Utilities that will increase the rates it charges to provide electric service to
customers.
The utility submitted its annual Fixed Cost Adjustment(FCA) application, Purchased Cost
Adjustment(PCA) application, Residential Exchange Program application and its Electric
Energy Efficiency application.
The FCA is a rate adjustment mechanism that is designed to break the link between the energy a
utility sells and the revenue it collects to recover fixed costs by providing service, which
decouples the utility's revenues from its customers' energy usage. The decoupling removes a
utility's incentive to increase sales to increase revenue and profits and encourages energy
conservation. Avista asked for approval to change the FCA rate for residential customers from
the rebate rate of$0.129 per kilowatt-hour to a surcharge rate of$0.018 per kilowatt-hour. The
utility also sought approval to change the rate for non-residential customers from a surcharge rate
of$0.004 per kilowatt-hour to a rate of$0.058 per kilowatt-hour.
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. Avista sought approval to adjust the PCA rebate rate from
$0.246 to $0.301 per kilowatt-hour. The utility said the 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.
The Residential Exchange Program provides a share of the benefits of the federal Columbia
River power system to residential and small farm customers in Idaho. Avista applies the benefits
it receives, which usually fluctuate from year to year, to customers as a credit in their monthly
electric rates. The benefit the utility will receive beginning in October of 2025 will result in a
lower level of benefits. Customers had been receiving a credit of$0.366 per kilowatt-hour. The
commission approved the utility's proposal to change the rate to $0.233 per kilowatt-hour.
The fourth application involves the energy efficiency rider adjustment rates. Avista is seeking to
recover costs associated with energy efficiency services and programs offered to customers. The
utility provides customers with financial incentives or rebates for participating in the programs.
Avista is facing an underfunded balance because of an unanticipated level of customer
participation.
Combined, the four applications will result in an overall monthly bill increase of about$3.43 for
the average residential customer using 939 kilowatt-hours per month. The rates are effective Oct.
1, 2025.
Additional information is available at: puc.idaho.gov/case/Details/7577,
puc.idaho.gov/case/Details/7578,puc.idaho.gov/case/Details/7579, and
puc.idaho.gov/case/Details/7580.