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-TAE-26-01 REVISION
TO IPUC TARIFF NO. 28, SCHEDULE 58 (TAX ADJUSTMENT
SCHEDULE—IDAHO); CASE NO. AVU-TAE-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. 58 (Tax Adjustment Schedule— Idaho) ("Schedule No. 58"). 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 electricity to customers within the city limits. The increase is the result of
Ordinance No. 644, which amends Ordinance No. 557, being passed on January 14, 2026.
Application at 12. A copy of the 1) City Ordinance No. 644, and the 2) the proposed revisions to
Schedule No. 58 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. 644, 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, with an effective date of
March 1, 2026.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Schedule No.
58, as filed, with an effective March 1, 2026?
Curtis Thaden
Commission Staff
I:\Utility\UDMEMOS\AVU-TAE-26-01 Decision Memo.docx
DECISION MEMORANDUM - 2 - FEDBRUARY 17, 2026

ORDINANCE NO.644
AN ORDINANCE OF THE CITY OF KELLOGG, SHOSHONE COUNTY IDAHO, AMENDING
ORDINANCE 557 WHICH GRANTS AVISTA CORPORATION, D/B/A AVISTA UTILITIES, A
WASHINGTON CORPORATION,A NONEXCLUSIVE FRANCHISE TO LOCATE,CONSTRUCT, INSTALL,
OWN, MAINTAIN, REPAIR, REPLACE, EXTEND, OPERATE AND USE ELECTRIC 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 CONTROL OF ELECTRICITY; 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 renewal of its Franchise to locate, access, construct, operate,
maintain and use such plants, works poles, elevated wires, underground cables, 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,control,distribution,and sale of Electricity;and the City
has determined it is in the interest of persons and businesses in this jurisdiction 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 give their common and
ordinary meaning.
1.1 Avista. "Avista"means Avista Corporation,dba Avista Utilities,a Washington corporation, and
Its respective successors and assigns, agents and contractors.
1.2 City. "City" means the City of Kellogg, a municipal corporation of the State of Idaho, and tis
respective successors and assigns.
1.3 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.
1.4 Days. "Days" means business days.
1.5 Facilities. "Facilities" means, collectively, any and all electric transmission, and distribution
systems and appurtenances owned by Avista, now and In the future In the Franchise Area,
Including but not limited to poles, towers, overhead and underground wires and cables,
Attachment A
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conduits, vaults, transformers, meters, meter-reading devices, communication and control
systems and other equipment, appliances, fixtures, attachments, appurtenances and other
Items necessary,convenient,or in anyway appertainingto any and all of the foregoing for the
purposes of transmission, distribution, and control of electricity,whether the same be located
above or below ground.
1.6 Franchise. "Franchise" means the grant by the City of rights, privileges and authority
embodied in this Ordinance.
1.7 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, as now laid out, platted, dedicated, acquired or improved within the present
corporate limits of the City;
• 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 of otherwise
during the term of this Franchise;
• All City-owned utility easements dedicated for the placement and location of various
utilities,providing such easements would permit Avista to fully exercise the rights granted
under this Franchise within the area covered by the easement; and
• Any other specifically designated City-owned property.
1.8 Maintenance, maintaining, or maintain. The meaning of the terms "maintenance,
maintaining, or maintain" includes, without limit, repairing, replacing, upgrading, examining,
testing, Inspecting, and removing Avista Facilities, vegetation management, digging and
excavating, and restoration of affected right-of-way surfaces.
1.9 Parties. "Parties" means City and Avista collectively.
1.10 Party. "Party" means either City or Avista individually.
1.11 Person. "Person" means a business entity or natural person.
1.12 Public Project. ""Public Project" means any Citty or other government-funded capital
Improvement project on the rights-of-way or city property within the Franchise Area.
1.13 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.
1.14 State. "State" means the State of Idaho.
1.15 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.
SECTION 2.0 GRANT OF FRANCHISE
Attachment A
Case No. AVU-TAE-26-01
Decision Memorandum
February 17, 2026

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 electricity, as may be necessary to provide electric
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 from the Effective Date of October 1, 2012, and shall continue year-to-year thereafter,until
It is otherwise renewed, or terminated by either Party,with not less than 180 days prior written
notice to the other Party.
2.3 Non-Exclusive Franchise
This Franchise is not,and will not be deemed to be, an exclusive Franchise.This Franchise
shall not in any manner prohibit the City from granting other franchises within the Franchise Area
that do not interfere with Avista's rights under this Franchise.This Franchise shall not prohibit or
prevent the City from using the Franchise Area or affect the jurisdiction of the City over the same
or any part thereof. City may not, however, award an electric 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.
2.4 Notice of City's Intent to Compete With Avista
inconsideration 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 Electric 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
customers for electricity consumed within the City. Gross revenue will be computed deducting
from the total electric billings of Avista the total net write-off of uncollectible accounts. Avista
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may offset against such compensation the amount of any license,permit or other fees paid to the
City in connection 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 electric 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,
Avlsta shall meet accepted Industry standards and codes and shall comply with 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 operation 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 electric service within the Franchise Area, subject to the
following non-interference requirement. Ali construction, installation, repair, relocation, or
operation of Avista's Facilities performed by Avista in the Franchise Area will be done in such a
manner s not to interfere with the existing facilities or construction and maintenance of other
utilities (public or private) including drains, drainage ditches and structures, irrigations ditches
and structures located therein, nor with the grading or improvement of the Franchise Area or
vehicular use 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 available.Avlsta does not
warrant the accuracy of any such Facility 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 stated In this Franchise Is intended (nor shall be construed) to relieve either party of
their respective obligations arising under the State on-call law with respect to determining the
Attachment A
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location of existing underground utility facilities in the vicinity of such excavations prior to
commencing work.
3.4 Vegetation Management-Trimming/Removal of Trees
State law requires electric utilities to comply with the national Electric Safety Code,
Including the guidance in the Code for the trimming or removal of vegetation Interfering or
potentially interfering with energized power lines.The right of Avista to maintain Its Facilities and
appurtenances under this Franchise shall accordingly Include the right, as exercised in Avista's
professional discretion,to utilize an integrated vegetation management program to minimize the
likelihood that vegetation encroaching (either above or below the ground) on Avista's Facilities
can lead to power outages and other threats to public safety and welfare.Avista or its agents may
inhibit the growth of, prune, or remove any trees and vegetation which overhangs or encroaches
upon its electric transmission and distribution corridors within the Franchise Area,whether such
trees or vegetation originate within or outside the Right-of-way. Nothing contained in this Section
shall prevent Avista,when necessary and with the approval of the record owner of the property
on which they may be located,from pruning or removing any trees which overhang the Franchise
Area and may Interfere with Avista's Facilities.
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, Avista Is authorized to make any necessary
excavations in, under,and across the street, 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
debris stemming from excavation and construction.The Right-of-way surface shalt be restored by
Avista after 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 or to protect its Facilities, or the property of the City or other persons Int eh
Franchise Area,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 ROWERS
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. Nothing in the terms of this Franchise shall be
Attachment A
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construed or deemed to prevent the City form 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 shall 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 Facilities 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
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 subject 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 Code 50-311.
4.4 Utility Pole Attachments By City
City shall be permitted, upon reasonable notice to Avista and without charge by Avista, to
attach its traffic control, street lighting, fire and police communications equipment to Avista's
poles in the Franchise Area, but at the City's own risk and only in accordance with standard safety
practices, codes and Avista specifications. If there is not sufficient space available on Avista's
structures such structures may be changed, altered, or rearranged at the expense of the City so
as to provide proper clearance and capacity for City facilities. Such City facilities shall be subject
to removal or repositioning by Avista to the extent necessary for utility worker safety and proper
construction, maintenance, operation, or repair of Avista's Facilities and appurtenances. City
assumes all responsibility for the Installation and maintenance of City's facilities Installed on
Avista's Facilities.
4.5 Change of Boundaries of the City
Any subsequent additions or modifications of the boundaries of the City, whether by
annexation, consolidation, or otherwise, shall be subject to the provisions of this Franchise as to
all such areas.The City shall notify Avista of the scope of any change of boundaries not less than
thirty(30) days prior to such change becoming effective.
Attachment A
Case No. AVU-TAE-26-01
Decision Memorandum
February 17, 2026

SECTION 5.0 RELOCATION OF AVISTXS FACILITIES
City acknowledges that Avista Is obligated to provide electric services and related line
extension, relocation, or conversion of its Facilities forthe benefit of its Customers and to require
compensation for such services on a non-preferential basis in accordance with applicable Tariffs.
5.1 Public Project Construction
Whenever 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's Facilities from 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 days 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 Request by Third 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
with the benefited third party prior to relocation to receive reasonable compensation for such
relocation costs 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 or Right-of-way
to accommodate said relocation. Nothin 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 Temporary Relocation of Facilities Requested by Third Parties
At the request of any Person holding a valid permit or other written permission from the
City, and upon reasonable advance notice and payment by the permit holder of Avista's expenses
of such temporary change, Avista will temporarily raise, lower, or remove its Facilities as
Attachment A
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necessary to accommodate a permittee of the City desiring to move over-sized structures or
equipment along or across the Right-of-way in the Franchise Area.
5.5 Conversion of Existing Overhead Electric Facilities
City,subject to applicable laws, rules, regulations,and tariffs, may direct Avista to convert
from above ground to below ground, wires for the distribution of electricity if such installation Is
feasible, practical, and required for the public Interest,safety, and convenience. The Incremental
cost of such conversion of existing overhead Facilities shall be borne and paid by the City or other
party requesting the same, subject to law and such rules, regulations, and Tariffs of the
Commission,
5.6 Availability of Funds
In the event federal, state, or other funds are available in whole or in part for utility
relocating 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 relocation 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, losses, 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,
maintenance, 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,
6.5 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 extent that 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-Waiver
Attachment A
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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 as a waiver of the Party's
right to declare another breach or default. In addition, the pursuit of any right or remedy by the
City shall not prevent the City form 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 Partis 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 the existence of this Franchise,
SECTION 8.0 GENERAL PROVISIONS
8.1 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 any
rights or remedies upon any persons, entities,or beneficiaries other than the Parties.
Attachment A
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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
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 Avista will promptly resume performance of the affected
Franchise obligations in an orderly and expeditious manner.
8.3 Prior Franchise Superseded
As of the Effective Date this Franchise shall supersede all prior electric 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 from 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, section, 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 change or amendment to this 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 provision 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 Minding 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 to 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
Attachment A
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The headings or titles in this Franchise are for the purpose or reference only and shall not
In any way affect the interpretation of 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.
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 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.
M or Rod Plank
ATTEST:
City Clerk/Treasurer Lindsy Strobel
Attachment A
Case No. AVU-TAE-26-01
Decision Memorandum
February 17,2026

Twenty-fourththird Revision Sheet 58
Canceling
I.P.U.C. No.28 Twenty-ihirdsesond Revision Sheet 58 58
AVISTA CORPORATION
dlbla Avista 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 Deary Ord.No.405 January 1,2026 1%franchise fee
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. 14B 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 as amended by 644 March 1,2026€+ctaber 1,2042 34%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 Osburn 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 January 28,202614overnber 7 2025 Effective March 1. 2026Jarm. 1,-2126
Issued by Avista Utilities
By Patrick Ehrbar, Director of Regulatory Affairs Attachment A
Case No. AVU-TAE-26-01
gcx* - Decision Memorandum
February 17, 2026

f Twenty-fourththird Revision Sheet 58
Canceling
I.P.U.C, No.28 Twenty-thirdsesorad Revision Sheet 58 58
AVISTA CORPORATION
d/b/a Avista 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 Deary Ord. No.405 January 1,2026 1%franchise fee
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 Fernan take 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 as amended by 644 March 1, 20260eteboer 1,2012 34%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 Apri; 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 Osburn 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 January 28, 2026Nevembep-7,2026 Effective March 1, 2026January-1-2026
Issued by Avista Utilities
By Patrick Ehrbar, Director of Regulatory Affairs
Attachment A
Case No. AVU-TAE-26-01
Decision Memorandum
February 17, 2026