20260217Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JAMES CHANDLER, COMMISSION STAFF
ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 17, 2026
RE: IN THE MATTER OF AVISTA CORPORATION'S APPLICATION FOR
AN ORDER AUTHORIZING THE ISSUANCE OF UP TO 1,580,000
SHARES OF COMMON STOCK; CASE NO.AVU-U-26-01.
On January 26,2026,Avista Corporation("Company")applied to the Idaho Public Utilities
Commission ("Commission") for an Order allowing Avista to issue up to 1,580,000 shares of
common stock under its Long-Term Incentive Plan ("LTIP"). The requested authority is in
addition to the authority previously granted by the Commission for the issuance of common stock
under the LTIP in Order No. 33401, Case No. AVU-U-15-01, which 1,113,489 shares of common
stock remain authorized but unissued, for a total of 2,693,489 additional shares. Staff calculated
the filing fee to be $1,000, which was received on January 26, 2026.
The LTIP is a program which is approved by the Company's board of directors. The
intention of the program is to provide rewards to designated classes of eligible employees, which
may include Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights,
Stock Awards, Performance Rewards, Restricted Stock Units, Other Stock-Based Rewards, and
Dividend Equivalent Rights. The awards are intended to reward key contributors of the Company,
promoting retention and continued improvement of beneficiaries and aligning interests with long-
term shareholder interests. The ratemaking treatment of LTIP costs are addressed in general rate
cases and Staff believes that even if all authorized shares are issued, the impact to the Company's
capital structure would be minimal.
DECISION MEMORANDUM - 1 - FEBRUARY 17, 2026

STAFF RECOMMENDATIONS
Staff recommends the Commission approve issuance of an additional 1,580,000 shares of
Common Stock for LTIP.
COMMISSION DECISION
Does the Commission wish to approve the Company's request for authority to issue an
additional 1,580,000 authorized but unissued shares of common stock for LTIP?
Sincerely,
.'Ike
/ames Chandler
Auditor 3
I:\Uti1ity\UDMEM0S\AVU-U-26-01 Decision Memo.docx
DECISION MEMORANDUM - 2 - FEBRUARY 17, 2026