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-TAG-25-02 REVISION
TO IPUC TARIFF NO. 27, SCHEDULE 158 (TAX ADJUSTMENT
SCHEDULE—IDAHO; CASE NO.AVU-TAG-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. 27 to add the
City of Deary ("City") to Schedule No. 158 (Tax Adjustment Schedule— Idaho) ("Schedule No.
158"). 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 natural gas 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's Ordinance
No. 405, which sets forth the City Franchise Agreement with the Company, and 2) the proposed
revisions to Schedule No. 158 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.
Avista 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. 158 as filed, effective date of January 1,
2026.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Schedule No.
158, as filed, effective January 1, 2026?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\AVU-TAG-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 of 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 APPROVE.D 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-TAG-25-02
Decision Memo
December 16, 2025

Twelfth :='even+h Revision Sheet 158
Canceling
I.P.U.C, No.27 Eleventh Ter-0, Revision Sheet 158
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 158
TAX ADJUSTMENT SCHEDULE - IDAHO
The rate schedule of the Company for natural gas 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 natural gas service rendered pursuant to this tariff 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 Date Ordinance Effective ChaMe"
Village of Bonners Ferry Ord.No.209 July 2, 1963 3%franchise fee
City of Coeur d'Alene Ord. No.2518 July 1, 1993 5%franchise fee
City of Dalton Gardens Ord. No. 168 February 1,2005 1%Franchise fee
as amended by Ord. No. 171
City of Deary Ord. -No 405 January 1 2026 1%franch se fee jNf
City of Dover Ord. No.53 October 1,2000 1%franchise fee
City of Feman Lake Village Res. No. 196 Ord. No. 167 March 1,2024 1%franchise fee
City of Hauser Ord. No. 111 May 1, 1999 1%franchise fee
City of Hayden Ord. No. 392 October 1,2005 1%franchise fee
City of Hayden Lake Ord. No. 125 January 1, 1995 3%franchise fee
as amended by Ord. No. 131
City of Kellogg Ord.No.556 October 1,2012 1%franchise fee
City of Kootenai Ord. No. 112 August 1, 1996 1%franchise fee
City of Lewiston Ord. No.4256 January 1,2000 1%franchise fee
City of Moscow Ord.No.2006-06 June, 1 2006 3%franchise fee
City of Mullan Ord. No.309A May 1, 1997 1%franchise fee
City of Osbum Ord. No.297 February 1,2020 1%franchise fee
City of Pinehurst Ord. No.2022-239 July 1,2022 1%franchise fee
City of Ponderay Ord. No. 3-17 November 1, 1996 1%franchise fee
City of Post Falls Ord. No. 1015 March 1,2003 1%franchise fee
City of Rathdrum Ord. No. 377 November 1, 1996 1%franchise fee
City of Sandpoint Ord. No. 1076 March 1, 2003 1%franchise fee
City of Spirit Lake Ord.No.510 December 1,2007 1%franchise fee
City of Wallace Ord. No. 95-07 January 1, 1996 1%franchise fee
'Federal bills excluded
Issued November7. 2025January 19, 2024 Effective January 1, 2026March 1, 202.1
Issued by Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
Attachment No. 1
Case No. AVU-TAG-25-02
Decision Memo
December 16, 2025