20251216Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: CURTIS THADEN, COMMISSION STAFF
JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 16, 2025
RE: AVISTA UTILITIES TARIFF ADVICE NO.AVU-TAE-25-02 REVISION
TO IPUC TARIFF NO. 28, SCHEDULE 58 (TAX ADJUSTMENT
SCHEDULE—IDAHO); CASE NO. AVU-TAE-25-02.
On November 7, 2025, Avista Corporation d/b/a Avista Utilities ("Company") submitted
to the Idaho Public Utilities Commission("Commission") a revised Tariff Advice.
STAFF ANALYSIS
In the November 7, 2025 filing, the Company requested to revise Tariff No. 28 to add the
City of Deary ("City") to Schedule No. 58 (Tax Adjustment Schedule — Idaho) ("Schedule No.
58"). The purpose of the filing is to update the Company's tariff for a new 1% franchise fee
imposed on gross revenue from the sale of electricity to customers within corporate limits of the
City. The new agreement has no end date and will remain in effect indefinitely from the proposed
January 1, 2026 effective date,unless amended by the City. A copy of the 1) City Ordinance No.
405, which sets forth the City Franchise Agreement with the Company, and 2) the proposed
revisions to Schedule No. 58 are attached (Attachment No. 1). The proposed franchise fee
agreement was approved by the City on October 8, 2025, as authorized by Ordinance No. 405.
The Company requests an effective date of January 1, 2026.
Idaho Code § 50-329A allows cities to establish franchise fees assessed upon a public
service provider up to one percent without the consent of the public service provider or the
approval of a majority of voters of the city voting on the question at an election. Franchise fees
up to three percent are allowed with the consent of the public service provider or the approval of
a majority of voters of the city voting on the question at an election.
DECISION MEMORANDUM - 1 - DECEMBER 16, 2025

STAFF RECOMMENDATION
Staff has reviewed the Company's proposed tariff change, Ordinance No. 405, and the
franchise fee requirements of Idaho Code § 50-329A(a). Staff recommends that the Commission
accept the Company's proposed revision to Schedule No. 58 as filed, effective date of January 1,
2026.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Schedule No.
58, as filed, effective January 1, 2026?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\AVU-TAE-25-02 Decision Memo.docx
DECISION MEMORANDUM - 2 - DECEMBER 16, 2025

CITY OF DEARY ORDINANCE NO. 405
AN ORDINANCE OFTHE CITY OF DEARY, LATAIi COUNTY. IDAHO. ESTABLISHING
THE. FRANCHISE FEE.AGRCEMENT OF Ti-ic CITY'S ELECTRICAL AND GAS
FRANCHISES WITH AV1STA CORPORATION TO ACRUE FRANCHISE PAYIVILN'fS 'I'O
TIME C11 Y FROM ONE PERCENT 0%) OF GROSS REVENUE:; AND PROVIDING 'PHIS
ORDINANCE TO 13E IN FULL FORCE AND EFF[;CT FROM THE DATE 01: ITS
PASSAGE. APPROVAL AND PUBLICATION ACCORDING TO LAW.
%N ILIREAS. in October ol'2025. the Cite will enter into an elcetrical and _gas franchise agreement
ith Avista Corporation by the adoption of Ordinance No.405.
WI ILRCAS. Avista Electrical and Gas Franchise Fees imposes a Eranchise fee of one percent (I %)
to be paid to the City by A vista during the term of bath the electric, and gas franchise agreement
unless changed as otherwise provided therein. and
ORDINANCE 405 AVISTA ELECTRICAL AND GAS FRANCHISE NOW. THEREFORC.
BE IT ORDAINED BY THE IbIAYOR AND COUNCIL OF THE CITY 01= DEARY.
IDAEIO. AS FOLLOWS:
SECTION 1: Avista Corporation, the franchise holder of the City of Dear}. Idaho',
nonexclusive electrical and gas franchise for the sale and distribution of electricity and gas �%ithin
the Cite of Dean', shall, in consideration for its use of streets, alle)s and casements within the Ul).
return to the City one percent (1 %) of its gross receipts from the sale and distribution of both
electricity and gas within conlines ol'the Cite of Dearv. Edaho.
SECTION 2: EFFECTIVE DA-E L. 1-ollo%%ing its passage and publication. this Ordinance ;hall he
effective immediately upon its passage. approval. and publication.
PASSLD by the City Council and APPROVED by the Nita or on this M)day of October, 2025.
_IASO N S. .101 INSUN t1 ooi
SARAH DEAN. City Treasurer/Clerk
Attachment No. 1
Case No. AVU-TAE-25-02
Decision Memo
December 16, 2025

Twenty-third seGOnd Revision Sheet 58
Canceling
I.P.U.C. No.28 Twenty-second fimt Revision Sheet 58 58
AVISTA CORPORATION
d+b.a Avesta Utilities
SCHEDULE 58
TAX ADJUSTMENT SCHEDULE- IDAHO
The rate schedules of the Company for electric service furnished in Idaho do not include
any portion of municipal occupation, business, excise or use of the streets, taxes,or charges. In
order to reimburse the Company for such taxes or charges. amounts equivalent to such taxes or
charges where now imposed, or which may hereafter be imposed,will be billed by the Company
to its Customers as set forth below.
APPLICABLE:
To all charges for electric service rendered pursuant to tariff 28 within the jurisdiction
imposing a tax or charge, as provided in Rule 3 of the Rules and Regulations included in this tariff.
TAX ADJUSTMENT:
The rates and charges named in this tariff shall be proportionately increased by an
adjustment equivalent to the amount of the tax or charge imposed by the jurisdiction and effective
as listed below_
Idaho Municipality Ordinance or Resolution Date Ordinance Effective Charge'
City of Clark Fork Ord. No.268 May 1, 2017 1%franchise fee
City of Coeur d'Alene Ord. No. 2517 July 1, 1993 5%franchise fee
City of Dalton Gardens Ord. No. 168 February 1, 2005 1%franchise fee
City of Dearyr (;rd. No 405 January 1. 2026 1`C. franchise fee (N)
City of Dover Ord. No.54 October 1, 2000 1%franchise fee
City of Elk River Ord No.209 February 5,2018 1%franchise fee
City of Feman Lake Village Res No. 195 Ord. No. 166 March 1, 2024 1%franchise fee
City of Grangeville Ord. No. 972 January 1,2024 1%franchise fee
City or Hayden Ord. 391 October 1, 2005 1%franchise fee
City of Hayden Lake Ord. No. 148 June 1, 1998 1%franchise fee
City of Kamiah Ord. No.97-2 January 1, 1997 1%franchise fee
City of Kendrick Ord. No.739 January 1, 2013 1%franchise fee
City of Kellogg Ord.No.557 October 1,2012 1%franchise fee
City of Kooskia Ord.No. 172 March 1,2013 1%franchise fee
City of Kootenai Ord. No. 113 August 1, 1996 1%franchise fee
City of Lapwai Ord, No. 300 January 1,2001 1%franchise fee
City of Lewiston Ord. No.4256 January 1, 2000 1%franchise fee
City of Moscow Ord. No.2005-34 April 1,2006 3%franchise fee
City of Mullan Ord. No. 310A May 1, 1997 1%franchise fee
City of Oldtown Ord.No. 2010-2 June 1,2010 1%franchise fee
City of Orofino Ord.No. 707 January 11,2002 3%franchise fee
City of Osbum Ord.No.234 June 1,2001 1%franchise fee
City of Pierce Res. No. 136 May 1, 1999 1%franchise fee
City of Pinehurst Ord.No. 2022-239 July 1, 2022 1%franchise fee
City of Ponderay Ord. No.3-16 November 1, 1996 1%franchise fee
City of Post Falls Res. No.2002-17 June 1, 2002 1%franchise fee
Issued November 7. 2025danuary48 2024 Effective January 1, 2026Marsh4--2024
Issued by Avisla Utilities
By Patrick Ehrbar, Director of Regulatory Affairs
Attachment No. 1
9"o ti Case No. AVU-TAE-25-02
Decision Memo
December 16, 2025