20260213Application.pdf

I 1,
Avista Corp. RECEIVED
1411 East Mission, P.O. Box 3727 FEBRUARY 13, 2026
Spokane, Washington 99220-0500 IDAHO PUBLIC
UTILITIES COMMISSION
Telephone [phone]
Toll Free 800-727-9170
February 13, 2026
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714
RE: Avista Utilities Request to Increase Schedule 91,Energy Efficiency Rider Adjustment
Dear Commission Secretary:
In accordance with Idaho Code §§ 61-501 and -507, and pursuant to Rule of Procedure
(RP) 53 (IDAPA 31.01.01.53), Avista Corporation, dba Avista Utilities (Avista or the Company),
hereby submits for electronic filing with the Idaho Public Utilities Commission its Application
requesting approval to increase its electric tariff Schedule 91, "Energy Efficiency Rider
Adjustment" rates, effective May 1, 2026. If you have any questions regarding this filing, please
contact Kim Boynton, Manager of Energy Efficiency Analytics, at (509) 495-4744 or
kim.boyntongavistacorp.com or me at(509) 495-2782 or shawn.bonfieldkavistacorp.com.
Sincerely,
lsl s" Fm#eu
Shawn Bonfield
Sr. Manager, Regulatory Policy & Strategy

Anni Glogovac
Counsel, Legal Department
Avista Corporation
1411 E. Mission Avenue
P.O. Box 3727, MSC 33
Spokane, Washington 99220
Phone: [phone]
anni.glo og vac(c-r�,avistacorp.com
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR ) CASE NO. AVU-E-26-01
APPROVAL TO INCREASE ITS ENERGY )
EFFICIENCY TARIFF RIDER ) APPLICATION OF AVISTA
ADJUSTMENT SCHEDULE 91 )
In accordance with Idaho Code §61-502 and Idaho Public Utilities Commission Modified
Procedure Rule (RP) 052, Avista Corporation, doing business as Avista Utilities (Avista or the
Company), at 1411 East Mission Avenue, Spokane, Washington, hereby respectfully applies to
the Idaho Public Utilities Commission (Commission) for an order authorizing Avista to increase
to its electric tariff, I.P.U.C. No. 28, Schedule 91, "Energy Efficiency Rider Adjustment" rates,
effective May 1, 2026.
Avista's Schedule 91 is tariff rider rate adjustment designed to recover costs incurred by
the Company associated with providing cost-effective energy efficiency services and programs to
customers. The tariff rider mechanism is intended to match future revenue with budgeted
expenditures; to ensure appropriate recovery, the mechanism includes a true-up feature that
reconciles the previous periods' actual expenditures and collections. The purpose of this filing is
to establish tariff riders that are sufficient to fund the following twelve (12) months' expenditures
of the Company's Electric Energy Efficiency Program, as well as amortize any tariff rider
imbalance, thus minimizing the amount of future under-or-over-collections. In this filing, Avista
APPLICATION OF AVISTA- 1

proposes to increase billed electric rates by approximately 7.4% through proposed revisions in
Schedule 91, with a requested effective date of May 1, 2026. The Company also requests that this
filing be processed under the Commission's Modified Procedure Rules (RP 201-204).
All communications, pleadings, and orders with respect to this Application should be
directed to:
Anni Glogovac
Avista Corporation
P.O. Box 3727, MSC 33
1411 E. Mission Avenue
Spokane, Washington 99220-3727
Telephone: [phone]
anni.glojzovac(a�avistacorp.com
Shawn Bonfield
Sr. Manager, Regulatory Policy& Strategy
Avista Corporation
P.O. Box 3727, MSC-27
1411 E. Mission Ave
Spokane, WA 99220-3727
Phone: [phone]
shawn.bonfield(d),,avistacorp.com
Avista Dockets (Electronic Only) -AvistaDockets(d),avistacorp.com
I. BACKGROUND
Avista's Schedule 91 funds the Electric Energy Efficiency Program as described in the
Company's Schedule 90.All revenue derived through Schedule 91 is applied only to the provision
of electric efficiency services, including programs offered by the Company directly, through
designated contractors, or as part of regional electric programs, as well as evaluation,
measurement, and verification (EM&V) of these programs. These programs include, but are not
limited to, behavioral programs, low-income weatherization, Northwest Energy Efficiency
Alliance(NEEA)participation,and provision of incentives for various energy efficiency measures
APPLICATION OF AVISTA-2

such as appliances, compressed air, HVAC, industrial, lighting, maintenance, motors, shell, and
sustainable buildings. The Company's programs are based on providing a financial incentive, or
"rebate," for cost-effective efficiency measures, or a direct customer benefit, such as a direct-
install service or home energy audit. Avista also offers Midstream programs, through which
incentives are paid to distributors to ensure that energy efficient HVAC,water heating and kitchen
equipment is always available in the market for customers to purchase.
While several metrics are applied to determine the costs and benefits of these programs,
the Utility Cost Test (UCT) and Total Resource Cost (TRC) test are most often utilized for
purposes of determining cost-effectiveness and to provide insights into program efficacy.'Idaho's
energy efficiency programs focus primarily on the UCT as its benchmark for cost-effectiveness.
Ratios over 1.0 illustrate that benefits exceed costs.
As of December 31, 2025, the current Schedule 91 (electric) tariff rider balance was
approximately $24.6 million underfunded. Underfunded balances indicate that not enough tariff
rider funding was collected to fund the actual ongoing costs of the Energy Efficiency Program
operations. This underfunded balance was driven by two main factors. The most notable factor
leading to this balance is the continued unprecedented level of customer participation in the
Company's Small Business Lighting direct-install program. This program has, and continues to
be, a successful source of energy savings for Avista and its customers — with throughput much
higher than anticipated. This massive increase in participation continues to drive much higher than
expected energy savings, which, in turn, propels increases in the overall costs of Avista's Electric
1 The Total Resource Cost test measures the net costs of an energy efficiency program as a resource option based on
the total costs of the program,including both the participants'and the utility's costs.Further,it includes the impact of
any quantifiable non-energy impacts that may be associated with the equipment installed. In comparison,the Utility
Cost Test measures the net costs of an energy efficiency program as a resource option based on the costs incurred only
by the program administrator(including incentive costs)and excluding any net costs incurred by the participant. The
benefits are similar to the TRC benefits, however, exclude non-energy impacts; costs are therefore defined more
narrowly.
APPLICATION OF AVISTA-3

Energy Efficiency Program. Second, the Company's Site Specific program, while to a lesser
degree than those resulting from the Small Business Lighting direct install program, saw a healthy
bounce back to pre-2020 levels of participation, doubling the incentive spend from Program Year
2024.Figure 1 illustrates the relatively stable expenditures from 2018-2022 and then the increasing
levels of spend associated with greater customer participation and savings beginning in 2023.
Idaho Electric Expenses by Year
■Ali Other Expenses ■Small Business Lighting Site Specific
$25 M
$20 M
$15 M
$10 M
$5 M
$0 M
2018 2019 2020 2021 2022 2023 2024 2025
Figure I-Idaho Electric DSM Expenditures
The most recent rate increase filed in August 2025 used forecasted expenses based on prior
years, our SBL implementor, and the Conservation Potential Assessment. All of these forecasts
underestimated the growing participation and savings that has persisted for more than 24 months.
To best support these increases in customer participation and associated increases in costs
of the Electric Energy Efficiency Program, the Company is proposing to increase rates collected
in Schedule 91 to bring the forecasted tariff balance close to $0 by September 30, 2028; this
approach will provide an appropriate level of funding for Avista's Energy Efficiency Program for
the approximately next thirty (30) months and minimize the continued under collection of tariff
APPLICATION OF AVISTA-4

rider funds over this two and a half year period. By extending the collection period over a longer
period of time, the Company is attempting to align the collection of revenue in Schedule 91 more
closely with the annual Energy Efficiency Program budget,thus minimizing the future rate impact
to customers.
IV. REQUEST FOR APPROVAL
Avista is proposing an increase in the rates and charges in Schedule 91,to become effective
May 1,2026. The estimated annual revenue change associated with this filing is an annual increase
of approximately $25.2 million for electric Schedule 91, or an increase of 7.4% in overall billed
rates. Residential customers using an average of 939 kilowatt-hours per month would see their
monthly bills increase from $115.54 to $124.44, an increase of $8.90 per month, or 7.7%.
Attachment A to this Application provides the corresponding workpapers and rate calculations for
the revisions to the Energy Efficiency Rider Adjustment described herein. Additionally, the
proposed revisions to tariff Schedule 91 are provided as Attachment B to this filing, including the
proposed revisions in legislative format per RP 121.
V. CUSTOMER NOTIFICATION
In conformance with RP 125, this Application will be brought to the attention of
the Company's customers by way of a customer notice, provided as Attachment C to this filing,
which will be included in customer bills beginning in early March 2026 and run for a full billing
cycle. Notice will also be given simultaneously with the filing, by posting of the Application to
the Company's website at myavista.com.
VI. CONCLUSION
Avista hereby respectfully requests the Commission issue its Order finding the proposed
rates and charges in Schedule 91, attached to this Application as Attachment B, to be fair, just,
APPLICATION OF AVISTA-5

reasonable and nondiscriminatory, and effective for electric service rendered on and after May 1,
2026,with this Application processed under the Commission's Modified Procedure Rules through
the use of written comments.
DATED this 13th day of February 2026.
Respectfully submitted,
Avista Utilities
By: ls/S" F"deed
Shawn Bonfield
Sr. Manager, Regulatory Policy & Strategy
APPLICATION OF AVISTA-6