20251212Final_Order_No_36872.pdf

Office of the Secretary
Service Date
December 12,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-G-25-08
CORPORATION'S PROPOSED TARIFF )
SCHEDULE 195—OPTIONAL RENEWABLE )
NATURAL GAS ) ORDER NO. 36872
On August 29, 2025, Avista Corporation dba Avista Utilities ("Company") applied to the
Idaho Public Utilities Commission ("Commission") requesting authority to revise tariff Schedule
195—Optional Renewable Gas ("Application"). The Company proposed modifications to the
voluntary Renewable Natural Gas ("RNG") program that provides customers an opportunity to
purchase RNG renewable thermal certificate ("RTC") attributes as part of their regular monthly
service. The Company requested a January 1, 2026, effective date.
On October 6, 2025, the Commission issued notice of the Company's Application and
notice that the case would be processed under Modified Procedure with comment deadlines. Order
No. 36787. Commission Staff("Staff") filed comments to which the Company replied.
Based on our review of the record,the Commission now issues this Final Order approving
the Company's proposal.
BACKGROUND
In Order No. 35520, the Commission approved the Company's request to implement
Schedule 195 offering a voluntary RNG program in Idaho. The tariff sheets approved in Order No.
35549 provide customers an opportunity to purchase blocks of RNG in addition to the customer's
regular natural gas charges to help offset their carbon emissions. Each block includes
environmental attributes represented by the equivalent to 1.5 therms of RNG for$5.00 per block.
Order No. 35520 at 1-2. The Commission also directed the Company to file an annual Idaho-
specific RNG report by April 30 of each year "to ensure that no costs [of the RNG program] are
passed on to non-participating customers."Id. at 5.
THE APPLICATION
The Company stated that after its original contract to acquire RTCs for its program expired
in December 2024,the Company was able to secure a more favorable price in its new RTC supplier
agreement.Application at 2. The Company proposed to pass the savings from the new agreement
ORDER NO. 36872 1

onto customers participating in the RNG program. Id. Therefore, the Company sought to update
its RNG program by making each block of RNG include environmental attributes represented by
the equivalent to 2 therms of RNG for$5.00 per block,rather than the current 1.5 therms per block.
Id. at 3. The Company believed preserving the current price of$5.00 per block would be easy for
customers to understand by maintaining a consistent bill impact.Id.
STAFF COMMENTS
After evaluating the Company's proposed RNG program modifications to ensure a benefit
realized by Idaho customers and that non-participants will not bear the costs of the program, Staff
recommended the Commission approve the Company's proposed modifications to Schedule 195,
increasing the RNG program per block RTC attribute rate from 1.5 therms to 2 therms while
maintaining the original per block cost of $5.00. Staff Comments at 2. Staff reviewed the
Company's new RTC supplier agreement and believed the agreement allowed the Company to
sufficiently support its RNG program.Id. at 3. Staff was confident that the costs of the Company's
proposed RNG program changes would be supported internally and would not shift costs to non-
participants.Id.
Additionally, Staff recommended that if the Commission approved the Company's
proposed Schedule 195 changes, it should also require the Company to file corrected tariff sheets
with the appropriate version information and issued and effective dates.Id. at 2.
Finally, Staff identified inconsistencies with the annual RNG program reports submitted in
prior years by the Company. Id. Staff would like to work with the Company to improve and
standardize future reports. Id. Specifically, Staff wants to ensure the reports contain all required
information,including the status of program income,expenses,and operating reserves at an Idaho-
specific level.Id.
COMPANY REPLY COMMENTS
Included with its reply comments, the Company submitted clean and legislative tariff
sheets implementing Staffs recommended changes. Reply Comments at 1. The Company also
expressed its eagerness to work with Staff to refine its RNG program reporting. 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
ORDER NO. 36872 2

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 Company's proposed modifications
to Schedule 195. We find that the updated tariffs attached to the Company's Reply Comments
accurately reflect the approved proposal. We encourage and appreciate the Company's efforts to
work collaboratively with Staff to improve the annual RNG program report mandated by Order
No. 35520.
ORDER
IT IS HEREBY ORDERED that the Company's proposed modifications to Schedule 195,
increasing the RNG program per block RTC attribute rate from 1.5 therms to 2 therms while
maintaining the original per block cost of$5.00, are approved.
IT IS FURTHER ORDERED that the updated tariffs attached to the Company's Reply
comments are approved effective January 1, 2026.
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. 36872 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 12ffi day of
December 2025.
Gtiv
DWARD LODGE, RE I ENT
9 f.
OHN R. HAMMOND JR., COMMISSIONER
DAYN HARDI , COMMISSIONER
ATTEST
La Calderon Robles
Interim Commission Secretary
I:\Legal\GAS\AVUG2508_Sch 195\orders\AVUG2508_FOjl.docx
ORDER NO. 36872 4