20260217Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: CURTIS THADEN, COMMISSION STAFF
ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 17, 2026
RE: AVISTA UTILITIES TARIFF ADVICE NO.AVU-TAG-26-01 REVISION
TO IPUC TARIFF NO. 28, SCHEDULE 158 (TAX ADJUSTMENT
SCHEDULE—IDAHO); CASE NO. AVU-TAG-26-01.
On January 28, 2026, Avista Corporation d/b/a Avista Utilities ("Company") submitted to
the Idaho Public Utilities Commission("Commission") a revised Tariff Advice.
STAFF ANALYSIS
In the January 28, 2026 filing, the Company requested to revise Tariff No. 28 to increase
the percentage of the franchise fee being collected for the City of Kellogg ("City") found in
Schedule No. 158 (Tax Adjustment Schedule—Idaho)("Schedule No. 158"). The City's franchise
fee will increase from one percent (1%) to three percent (3%) that is imposed on gross revenue
from the sale of natural gas to customers within the city limits. The increase is the result of
Ordinance No. 643, which amends Ordinance No. 556, being passed on January 14, 2026.
Application at 11. A copy of the 1) City Ordinance No. 643, and the 2) the proposed revisions to
Schedule No. 158 are attached (Attachment A). The Company is requesting an effective date of
March 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 - FEDBRUARY 17, 2026

STAFF RECOMMENDATION
Staff has reviewed the Company's proposed tariff change, Ordinance No. 643, 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, with an effective date of
March 1, 2026.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Schedule No.
158, as filed, with an effective March 1, 2026?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\AVU-TAG-26-01 Decision Memo.docx
DECISION MEMORANDUM - 2 - FEDBRUARY 17, 2026

ORDINANCE NO. 643
AN ORDINANCE OF THE CITY OF KELLOGG, SHOSHONE COUNTY, IDAHO, AMENDING
ORDINANCE 556 WHICH GRANTS AVISTA CORPORATION D/B/A AVISTA UTILITIES, A
WASHINGTON CORPORATION, A NONEXCLUSIVE FRANCHISE TO LOCATE, CONSTRUCT, INSTALL,
OWN, MAINTAIN, REPAIR, EXTEND, OPERATE AND USE GAS FACILITIES AND APPURTENANCES
IN, UPON, OVER, UNDER, ALONG, AND ACROSS THE PUBLIC RIGHT OF WAY UNDER THE
JURISDICTION OF THE CITY OF KELLOGG FOR PURPOSES OF THE TRANSMISSION,DISTRIBUTION
AND SALE OF GAS; INCREASING THE FRANCHISE FEE; ESTABLISHING DURATION; PROVIDING
SEVERABILITY; PROVIDING FOR THE REPEAL OF CONFLICTING ORDINANCES; AND PROVIDING
AN EFFECTIVE DATE.
Avista Corporation dba Avista Utilities ("Avista"), a Washington Corporation,which Is authorized
to do business within the state of Idaho, has filed with the City of Kellogg, State of Idaho (the
"City")a written application for a renewal of its Franchise to locate, construct, operate, maintain
and use such plants,worsts, underground pipelines, equipment and appurtenances over, under,
along and across all of City's rights of way and public property in the City for the purposes of the
transmission, distribution and sale of Gas; and the City has determined it Is In the Interest of
persons and businesses In this jurisdiction ("Customers")to have access to Avista's services;
THEREFORE THE CITY OF KELLOGG DOES ORDAIN:
SECTION 1..0 DEFINITIONS
For the purposes of this 'Franchise the following terms, phrases, words and their
derivations shall have the meaning given in this Section.When not inconsistent with the context,
words used in the present tense include the future,words in the plural include the singular, and
words In the singular Include the plural. Words not defined shall be given their common and
ordinary meaning.
1. Avista. "Avista" means Avista Corporation, dba Avista Utilities, a Washington corporation,
and Its respective successors and assignes, agents and contractors,
2. City. "City" means the City of Kellogg, a municipal corporation of the State of Idaho, and
Its respective successors and assigns
3. Commission. "Commission" means the Idaho Public Utilities Commission, or such
successor regulatory agency having jurisdiction over investor-owned public Utilities in the
State of Idaho.
4. Days. "Days" means business days.
5. Facilities. "Facilities" means, collectively, any and all gas transmission and distribution
systems and appurtenances owned by Avista, now and In the future in the Franchise Area,
including but not limited to, Gas plants, Gas pipes, pipelines, mains, laterals, conduits,
Attachment A
Case No. AVU-TAG-26-01
Decision Memorandum
February 17, 2026

regulators, valves, meters, meter-reading devices, communications and control systems
and other equipment, appliances, fixtures, attachments, appurtenances and other items
necessary, convenient,or in any way appertaining to any and all of the foregoing for the
purposes of transmission, distribution, and sale of Gas.
6. Franchise. "Franchise" means the grand by the City of rights, privileges and authority
embodied In this Ordinance.
7. Franchise Area. "Franchise Area" means the surface and space above and below all rights-
of-way for:
• Public roads, streets, avenues, alleys, bridges, tunnels, easements, and
highways of the City, and no laid out, platted, dedicated, acquired or
improved within the present corporate limits of the City;
Y Public roads, streets, avenues, alleys, bridges, tunnels, easements, and
highways that may hereafter be laid out, platted, dedicated, acquired, or
improved within the present corporate limits of the City and as such limits
may be extended by annexation or otherwise during the term of this
Franchise.
• All City-owned utility easements dedicated for the placement and location
of various utilities, provided such easements would permit Avista to fully
exercise the rights granted under this Franchise within the area covered by
the easement; and
a Any other specifically designated City-owned property.
B. Gas. "Gas" means natural, manufactured, and/or mixed gases.
9. Maintenance, maintaining, or maintain. The meaning of the terms "Maintenance,
maintaining, or maintain" includes, without limit, repairing, replacing, upgrading,
examining, testing, Inspection, and removing Avista Facilities, vegetation management,
digging and excavating, and restoration of affected right-of-way surfaces.
10. Parties. "Parties" means City and Avista collectively.
11. Pary. "Party" means either City or Avista individually.
12. Person. "Person"means a business entity or natural person.
13. Public Project. "Public Project" means any City or other government-funded capital
Improvement project on the rights-of-way or City property within the Franchise Area.
14. Right-of-way. "Right-of-way" means the surface of and the space along,above, and below
any street, road, highway, freeway, lane, sidewalk, alley, utility easement and/or right-of-
way now or hereafter held or administered by the City.
15.State. "State" means the State of Idaho.
16.Tariff. "Tariff" means the rate schedules, rules, and regulations relating to utility service,
filed with and approved by the Commission during the term of this Franchise.
Attachment A
Case No.AVU-TAG-26-01
Decision Memorandum
February 17,2026

SECTION 2.0 GRANT OF FRANCHISE
City hereby grants to Avista the right, power, privilege and authority to enter upon all
roads, rights-of-way, streets, alleys, highways, public places or structures, lying within the
Franchise Area to locate, construct, operate and maintain its Facilities for the purpose of
controlling, transmitting, and distributing Gas, as may be necessary to provide Gas service to
Customers within the Franchise Area.
2.1 Effective Date
This Ordinance is effective as of the date of approval, passage,and publication as required
by law.
2.2 Term
The rights, privileges and Franchise hereby granted to Avista will remain for a term of 25 years
form the Effective Date of October 1, 2012, and shall continue year-to-year thereafter, until It is
otherwise renewed,orterminated by either Party,with not less than 180 days prior written notice
to the other Party.
23 Non-Exclusive Franchise
This Franchise is not an exclusive Franchise.This Franchise shall not prohibit the City from
granting other franchises within the Franchise Area that do not interfere with Avista's rights under
this Franchise. City may not, however, award a Gas Franchise to another party under more
favorable or less onerous terms than those of this Franchise without this Franchise being
amended to reflect such more favorable or less onerous terms.
2A Notice of City's intent to Compete With Avista
In consideration of Avista's undertaking pursuant to this Franchise,the City agrees that in
the event the City Intends to engage in the business of providing Gas service during the life of this
Franchise or any extension of this Franchise, In competition with Avista, the City will provide
Avista with six months' notice of such action.
2.5 Assignment Of Franchise
Avista shall have the right to assign Its rights, benefits,and privileges under this Franchise.
Any assignee shall,within thirty(30) days of the date of any assignment, file written notice of the
assignment with the City together with Its written acceptance of all terms and conditions of this
Franchise. As permitted by law and Commission regulation, Avista shall have the right, without
notice to or consent of the City,to mortgage or hypothecate its rights,benefits, and privileges In
and under this Franchise as security for indebtedness.
2.6 Franchise Fees
As compensation for the Franchise granted by this ordinance, Avista shall pay to the City
an amount equal to three percent (3%) of the annual gross revenue collected by Avista from Its
custorners for natural gas consumed within the City.Gross revenue will be computed by deducting
from the total gas billings of Avista the tots! net write off of uncollectable accounts. Avista may
Attachment A
Case No. AVU-TAG-26-01
Decision Memorandum
February 17, 2026

offset against such compensation the amount of any license, permit or other fees paid to the City
In coanection with Avista's use of the rights-of-way within the Franchise Area. The City has the
right to increase Its franchise fee pursuant to Chapter 3, Title 50, Idaho Code. Any such Increase
hereunder shall provide that the increased franchise fee will apply to any natural gas service
provider (other than the City) who utilizes the City's streets, alleys, or other public places to
provide gas service within the City,during the term of this Franchise.
SECTION 3.0 AVISTA'S OPERATIONS AND MAINTENANCE
3.1 Compliance with Laws, Regulations, Codes,and Standards
In carrying out any authorized activities under the privileges granted by this Franchise,
Avista shall meet accepted industry standards and codes and shall comply with all applicable laws,
regulations,and ordinances of any governmental entity with jurisdiction over Avista's Facilities in
the Franchise Area.This includes all applicable laws,regulations,and ordinances existing as of the
Effective Date or may be subsequently enacted by any governmental entity with jurisdiction over
Avista's operations within the Franchise Area. The City shall have the right to make and enforce
reasonable rules and regulations pertaining to the conduct of Avista's operations within the
Franchise Area. Prior to the adoption of any new rule, procedure, or policy, Avista shall be
provided a written draft document for comment with a response period of not less than thirty
days.Service shall be supplied to the City and its inhabitants in accordance with Avista's rules and
regulations and Tariffs currently or subsequently filed with and approved by the Commission.
3.2 facility Location and Non-Interference
Avista shall have the discretion to determine the placement of its Facilities as may be
necessary to provide safe and reliable gas service within the Franchise Area, subject to the
following non-interference requirements. All construction, Installation, repair, or relocation of
Avista's Facilities performed by Avista in the Franchise Area will be done In such a manner as not
to Interfere with the construction and maintenance of other utilities, drains, drainage, and
irrigation ditches and structures, and City-owned property within the Franchise Area.
3.3 Facility Location information
Avista shall provide the City, upon the City's reasonable request, Facility location
Information in electronic or hard copy showing the location of Its Facilities at specific locations
Within the Franchise Area, to the extent such Information is reasonably avallable.Avista does not
warrant the accuracy of any such Fac€lity location Information provided and to the extent the
location of Facilities are shown, such Facilities may be shown in their approximate location.With
respect to any excavations within the Franchise Area undertaken by or on behalf of Avista or the
City, nothing state In this Franchise is Intended (nor shall be construed) to relieve either party of
their respective obligations arising under the State one-call law with respect to determining the
location of existing underground utility facilities In the vicinity of such excavations prior to
commencing work.
Attachment A
Case No.AVU-TAG-26-01
Decision Memorandum
February 17, 2026

3A Vegetation Management
The right of Avista to maintain its Facilities shall include the right as exercised in Avista's
professional discretion,to utilize an Integrated vegetation management program to minimize the
likelihood that encroaching (either above or below the ground) vegetation can interfere with or
limit access to Avista's Facilities, or pose a threat to public safety and welfare.Avlsta or its agents
may accordingly remove or limit the growth of vegetation which encroaches upon its Gas
transmission and distribution corridors within the Franchise area.
3.5 Right of Excavation
For the purpose of implementing the privileges granted under this Franchise, and after
any required notification is made to the City, Avlsta is authorized to make any necessary
excavations in,under and across the streets, alleys, roads,rights of way and public grounds within
the Franchise Area. Such excavation shall be carried out with reasonable dispatch and with as
little Interference with or inconvenience to the public as may be feasible. Avista shall remove all
debria stemming from excavation, In accordance with applicable City and Avista specifications.
3.6 Emergency Work
In the event of an emergency requiring Immediate action by Avista to protect the public
health and safety through Gas leak mitigation or to protect Its Facilities, or the property of the
City or other persons in the Franchise Arez, Avista may immediately proceed with excavation or
other right-of-way work,with concurrent notice to the City to the extent possible.
SECTION 4.0 RESERVATION OF CITY'S RIGHTS AND POWERS
The City, in granting this Franchise, does not waive any rights which It may now have or
may subsequently acquire with respect to road rights-of-way of the City under this Franchise,and
this Franchise shall not be construed to deprive the City of any such powers, rights or privileges
which it now has or may hereafter acquire to regulate the use of and to control the City's roads,
and rights-of-way covered by this Franchise. Noticing in the terms of this Franchise shall be
construed or deemed to prevent the City from exercising at any time any power of eminent
domain granted to It under the laws of this State.
4.1 Necessary Construction/Maintenance by City
The construction, operation and maintenance of Avista's Facilities authorized by this
Franchise sha!l not preclude the City, its agents or Its contractors, from grading, excavating, or
doing other necessary road work contiguous to Avista's Facilities, provided that Avista shall be
given not less than ten business days' notice of said work,and provided further that the City, its
agents and contractors, shall be liable for any damages, including any consequential damages to
third parties, caused by said work to any installations belonging to Avista.
4.2 Removal of Abandoned Facilities
During the term of this Franchise, or upon a revocation or non-renewal of this Franchise,
the City may direct Avista to remove designated abandoned Facilities from the Franchise Area at
Attachment A
Case No.AVU-TAG-26-01
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Its own expense and as soon as practicable, but only where such abandoned Facilities constitute
a demonstrated threat to public health and safety. If it becomes necessary for the City to remove
the designated Facilities the City shall be paid the reasonable and actual costs of removal by
Avista.
4.3 Vacation of Properties by City
If, at any time,the City shall vacate any road, right-of-way or other public property which
Is su'.:Ject to rights granted by this Franchise, such vacation shall be subject to the reservation of
a perpetual easement to Avista for the purpose of operating and maintaining Avista's Facilities on
the affected property pursuant to Idaho Cde 50-311.
SECTION 5.0 RELOCATION OF AVISTWS FACILITIES
City acknowledges that Avista is obligated to provide gas service and related line extension
or relocation of its Facilities for the benefit of its Customers and to require compensation for such
servj;es on a non-preferential basis in accordance vvrith applicable Tariffs.
5.1 Public Project Construction
Wherever the City causes the construction of any Public Project and/or the alteration or
improvement of any road, highway or Right-of-way within the Franchise Area, and such
construction necessitates the relocation of Avista Facilities form their existing location to another
location within the Franchise Area, such relocation will be at no cost to the City.City shall notify
Avista of any intended or expected requirement or request to relocate Avista's Facilities as early
as practicable,but will make reasonable efforts to provide not less than 120 days prior to any such
relocation. After receipt of such notice, Avista shall complete relocation of its Facilities at least
ten e'.ays prior to commencement of the project or an agreed upon date by both parties. If any
relocation to accommodate the City forces Avista off of a Right-of-way then City will make a
reasonable effort to accommodate said relocation on alternative public Right-of-way.
5.2 Public Project Related Relocation Costs
The City shall have no responsibility for the costs of the relocations described in Section
5.1, however,the City agrees to provide reasonable advance notice to Avista in the event the City
requires the subsequent relocation of any Avista Facilities previously relocated per Section 5.1
due to a Public Project.
5.3 Relocation of Facilities Requested byVi.rd Parties
If Avista's Facilities within the Franchise Area are to be relocated at the request of or for
the primary benefit of a third party (Including compliance by such party with any condition or
requirement associated with approvals or permits to be obtained pursuant to any zoning, land
use, construction or other development regulation), Avista is authorized to make arrangements
Attachment A
Case No.AVU-TAG-26-01
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February 17,2026

with the benefited third party prior to relocation to receive reasonable compensation for such
relocation cots Incurred. Avista agrees to Indemnify, defend and hold City harmless for any
disputes between Avista and such third parties regarding compensation.In the event the required
move forces Avista off public right-of-way, City will provide for proper easement of right-of-way
to accommodate said relocation. Nothing In this section 5.3 shall require Avista to bear any cost
or expense in connection with the location or relocation of any Facilities then existing pursuant
to easement or such other rights not derived from this Franchise.
5.4 Availability of Other funds
In the event federal, state, or other funds are available In whole or in part for utility
relocation purposes related to a Public Project as set forth In Section 5.1 above, the City, In Its
sole discretion, may apply for such funds and Avista will be reimbursed to the extent any such
funds are actually obtained and designated for utility relocating costs.
SECTION 6.0 INDEMNITY
6.1 Indemnification of City
Avista agrees to defend and Indemnify the City, its appointed and elected officers and
employees, from any and all liabilities, claims, causes of action, loses, damages and expenses,
including costs and reasonable attorneys fees, that the City may sustain, incur, become liable for,
or be required to pay, as a consequence of or arising from the construction, Installation,
ma€ntenance, condition or operation of Avista's Facilities in the Franchise Area; provided,
however, that this indemnification provision shall not apply to the extent that said liabilities,
claims, damages and losses were caused by or result from the negligence of the City, its
employees or agents.
6.2 Indemnification of Avista
City agrees to defend and Indemnify Avista, its officers and employees, from any and all
liabilities,claims,causes of action,losses,damages,and expenses,Including costs and reasonable
attorneys fees, that Avista may sustain, incur, become liable for, or be required to pay, as a
consequence of or arising from the negligent acts or omissions of the City,its officers,employees
or agents in connection with City's obligations under this Franchise; provided however, that this
Indemnification provision shall not apply to the extentthat said liabilities,claims, damages, losses
and so forth were caused by or result from the negligence of Avista, Its employees or agents.
SECTION 7.0 FRANCHISE DISPUTE RESOLUTION
7.1 Non-Wavier
Failure of a Party to declare any breach or default of this Franchise Immediately upon the
occurrence thereof, or delay in taking any action In connection therewith, shall not waive such
breach or default, but the Party shall have the right to declare any such breach or default at any
time. Failure of a Party to declare one breach or default does not act a waiver of the Party's right
Attachment A
Case No.AVU-TAG-26-01
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February 17,2026

to declare another breach or default. In addition, the pursuit of any right or remedy by the City
shall not prevent the City from thereafter declaring a revocation and forfeiture for breach of the
conditions of the Franchise.
7.2 Revocation and Forfeiture of Franchise
if Avista shall willfully violate or fall to comply with any of the provisions of this Franchise
through willful and unreasonable neglect or willful and unreasonable failure to heed or comply
with any notice given Avista under the provisions of this grant,this Franchise may be revoked by
the City and Avista shall forfeit all rights conferred under the Franchise; provided, however,the
City shall give 90-days'written notice of its intention to revoke the Franchise during which period
Avista shall have the opportunity to remedy any breach.
7.3 Dispute Resolution by the Parties
Disputes regarding the interpretation or execution of the terms of this Franchise that
cannot be resolved by Department counterparts representing the Parties, shall be submitted to
the City's Attorney and a representative of Avista's Legal Department for resolution. if a mutually
satisfactory or timely resolution cannot then be reached by the above process, prior to resorting
to a court of competent jurisdiction, the Parties shall submit the dispute to a non-binding
alternate dispute resolution process agreed to by the Parties.
7.4 Right of Enforcement
No provision of this Franchise shall be deemed to bar the right of the City or Avista to seek
judicial relief from a violation of any provision of the Franchise to recover monetary damages for
such violations by the other party or to seek enforcement of the other Party's obligations under
this Franchise by means of specific performance, injunctive relief or any other remedy at law or
in equity.Any litigation between the City and Avista arising under or regarding this Franchise shall
occur, if in the state courts, In Shoshone County, Idaho, a court of competent jurisdiction, and if
in the federal courts, in the United States District Court for the District of Idaho.
7.5 Attorneys' Fees and Costs
Each Party shall pay for Its own attorneys'fees and costs Incurred in any dispute resolution
process or legal action arising out of he existence of this Franchise.
SECTION 8.0 GENERAL PROVISIONS
8A Franchise As Contract, No Third-Party Beneficiaries
This franchise Is a contract between the Parties and binds and benefits the Parties and
their respective successors and assigns.This Franchise does not and is not Intended to confer and
rights or remedies upon any persons, entities, or beneficiaries other than the Parties.
8.2 Force Majeure
In the event that Avista is delayed in or prevented from the performance of any of its
obligations under the Franchise by circumstances beyond Avista's control (Force Majeure)
Including,without limitation,third-party labor disputes,fire,explosion,flood,earthquake, power
Attachment A
Case No. AVU-TAG-26-01
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February 17,2026

outage, acts of God,war or other hostilities and civil commotion,then Avista's performance shall
be excused during the period of the Force Majeure occurrence. Avista will use all commercially
reasonable efforts to minimize the period of the disability due to the occurrence. Upon removal
or termination of the occurrence Avisa will promptly resume performance of the affected
Franchise obligations In an orderly and expeditious manner.
8.3 Prior Franchises Superseded
As of the Effective Date this Franchise shall supersede all prior gas franchises for the
Franchise Area previously granted to Avista or its predecessors by City, and shall affirm, authorize
and ratify all prior Installations authorized by permits or other action not previously covered by
Franchise. Termination of the prior Franchise shall not, however, relieve the Parties form any
obligations which accrued under said Franchise prior to its termination, including but not limited
to, any outstanding Indemnity, reimbursement or administrative fee payment obligations.
8.4 Severability
The Franchise Is granted pursuant to the laws of the State of Idaho relating to the granting
of such rights and privileges by City. If any article, sections, sentence, clause, or phrase of this
Franchise Is for any reason held Illegal, Invalid, or unconstitutional, such invalidity shall not affect
the validity of the Franchise or any of the remaining portions.The Invalidity of any portion of this
Franchise shall not abate, reduce, or otherwise affect any obligation required of Avista.
8.5 Changes or Amendments
No changes or amendments to the Franchise shall be effective until lawfully adopted by
the City and agreed to by Avista.
8,6 Supremacy and Governing Law
This Agreement shall be Interpreted, construed and enforced in all respects in accordance
with the laws of the State of Idaho. In the event of any conflict between this Franchise and any
City ordinance, regulation, or permit, the provisions of this Franchise shall control
Notwithstanding the above, the City acknowledges that Avista is subject to its Tariff with the
Commission, and while this relationship is separate and not binding between the Parties to this
Franchise, in the event the terms of this Franchise create a conflict under Avista's Tariff, Avista
may be required to suspend or abandon this Franchise if such conflict is not capable of being
resolved.Such suspension or abandonment shall be in accordance with Section 8.10 below.Avista
agrees that it will not knowingly petition or persuade the Commission to amend or modify its
Tariff to create a conflict.
8.7 Headings
The headings or titles In this Franchise are for the purpose of reference only and shall not
In any way affect the interpretation or construction of this Franchise.
8.8 Acceptance of Franchise
Avista shall, within 30 days after passage of this Ordinance, file with the City Clerk, its
acceptance of the terms and conditions of this Franchise.
Attachment A
Case No.AVU-TAG-26-01
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February 17,2026

8.9 Franchise Effective Date
The Effective Date of this Franchise shall be October 1,2012, after passage, approval and
legal publication of this ordinance, as provided by the law, and provided that it has been duly
accepted by Avista as specified above.
8.10 Abandonment or Suspension of Franchise Rights and Obligations
Avista may at any time abandon the rights and authorities granted hereunder, provided
that six (6) months'written notice of Intention to abandon is given to City. In addition, pursuant
to Section 8.6 and in the event a conflict exists between the terms of this Franchise and Avista's
Tariff with the Commission that cannot be resolved. Avista may suspend or abandon the rights
and obligations of this Franchise upon reasonable notice to the City.
PASSED under suspension of the rules upon which a roll call vote was taken and duly enacted an
Ordinance of the City of Kellogg, Shoshone County, Idaho at a convened meeting of the City of
Kellogg City Council held on the 141h day of January 2026.
Mayor Rod Plank
ATTEST:
City Clerk/Treasurer Lindsy Strobel
Attachment A
Case No. AVU-TAG-26-01
Decision Memorandum
February 17,2026

Thirteenth A attth Revision Sheet 158
Canceling
1.P.U.C. No,27 TvdelfthEteu 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 orcharge imposed by thejurisdiction and effective as listed below.
Idaho Municiya& OrdinanceDate Ordinance Effective Charge*
Village of Bonners Ferry Ord. No.209 July 2, 1963 3% franchise fee
Cityof Coeur d'Alene Ord. No.2518 July 1, 1993 5% franchise fee
Cityof 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%franchise fee
Cityof 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
Cityof Hauser Ord. No. 111 May 1, 1999 1% franchise fee
Cityof Hayden Ord. No.392 October 1, 2005 1% franchise fee
Cityof Hayden Lake Ord. No. 125 January 1, 1995 3% franchise fee
as amended by Ord. No. 131
City of Kellogg Ord. No.556 March 1. 20260ctober 1. 29Q 34% franchise fee
as amended by Ord. No. 643
Cityof Kootenai Ord.No. 112 August 1, 1996 1% franchise fee
Cityof Lewiston Ord. No.4256 January 1, 2000 1% franchise fee
Cityof Moscow Ord. No.2006-06 June, 12006 3% franchise fee
Cityof Mullan Ord.No. 309A May 1, 1997 1% franchise fee
Cityof 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
Cityof Post Falls Ord.No. 1015 March 1, 2003 1% franchise fee
Cityof Rathd rum Ord. No. 377 November 1, 1996 1% franchise fee
Cityof Sandpoint Ord. No. 1076 March 1, 2003 1% franchise fee
Cityof Spirit Lake Ord.No.510 December 1,2007 1% franchise fee
Cityof Wallace Ord. No.95-07 January 1, 1996 1% franchise fee
Issued January 28, 202641ovopiher 7, 2025 Effective March 1 2 2
Issued by Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
Attachment A
Case No. AVU-TAG-26-01
Decision Memorandum
February 17, 2026

Thirteenth Revision Sheet 158
Canceling
I.P.U.C.No.27 Twelfth 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 Charge'
Village of Banners 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%franchise fee
City of Dover Ord. No. 53 October 1,2000 1%franchise fee
City of Fernan 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 March 1, 2026 3%franchise fee
as amended by Ord. No. 643
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 Osburn 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
•Fcdcral bills crcludcd
Issued January 28, 2026 Effective March 1, 2026
Issued by Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
Q Attachment A
Case No. AVU-TAG-26-01
Decision Memorandum
February 17,2026