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HomeMy WebLinkAbout20260219APPLICATION - Updated.pdf RECEIVED February 19, 2026 IDAHO PUBLIC UTILITIES COMMISSION JAMES .) VERNON & WEEKS , P . A . ATTORNEYS AT LAW SUSAN P.WEEKS February 19, 2026 Via Email to: secretary@puc.idaho.gov Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 RE: Northern Lights,Inc. Updated Application for Approval of 2026-2028 Wildfire Mitigation Plan Case No. C10-E-26-01 Dear Ms. Barrios-Sanchez: Please find attached an Updated Application for Approval of the 2026-2028 Wildfire Mitigation Plan for Norther Lights,Inc.("NLI").Please let me know if you need anything further or have any concerns regarding the attached updated filing. Very truly yours, 5uz-'k" �'ZW".&& Susan P.Weeks Attachment Transmittal Cc: Client 1626 LINCOLN WAY,COEUR D'ALENE,ID 83814 TELEPHONE: (208)667-0683 FACSIMILE: (208)664-1684 Susan P. Weeks, ISB No. 4255 James,Vernon&Weeks, P.A. 1626 Lincoln Way Coeur d'Alene, ID 83814 Email: sweeks@jvwlaw.net Attorney for Northern Lights, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE CASE NO. C10-E-26-01 APPLICATION OF NORTHERN LIGHTS,INC. FOR APPROVAL OF UPDATED APPLICATION OF ITS WILDFIRE MITIGATION PLAN NORTHERN LIGHTS,INC. Northern Lights, Inc. ("NLI" or"Applicant"), in accordance with Idaho Code § 6-1801, et seq., including §§ 61-1803 and 61-1804, Rule of Procedure 52, and the Commission's Order No. 36774, respectfully submits this updated application ("Application") to the Idaho Public Utilities Commission ("Commission"), requesting that the Commission issue an order approving its updated 2026 Wildfire Mitigation Plan("WMP"), included as Attachment A, in accordance with the Wildfire Standard of Care Act. In support of its Application, the Applicant states as follows: I. INTRODUCTION 1. NLI is a non-profit Idaho corporation meeting the definition of a "cooperative electrical association" as set forth in Idaho Code § 63-3501. NLI's principal place of business is Sagle, Idaho. NLI provides electric service in Kootenai and Bonner Counties in Idaho. Additionally, it serves members in Pend Oreille County, Washington, and in Sanders and Lincoln Counties, Montana.Additional information about NLI is included the "Need to Know Document" attached hereto as Attachment B. 2. In the 2025 legislative session,the Idaho Legislature enacted the Wildfire Standard UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 1 of Care Act. 2025 Idaho Sess. Laws Ch. 249 (S.B. 1183) ("Act"). The Act allows electric cooperatives that are not public utilities to adopt and file a Wildfire Mitigation Plan("WMP")with the Commission. I.C. § 61-1803(2)(b). The Commission is required to approve or reject each WMP within six(6)months of the date such WMP is filed with the Commission. I.C. § 61-1804(1). NLI filed its initial WMP on February 2, 2026. This filing constitutes an updated Application. 3. The 2026 WMP is designed to comply with Idaho Code § 61-1803(3), Order No. 36774, and the WMP Guidelines adopted in Case No. GNR-E-25-02. The WMP outlines the strategies, practices, and mitigation measures NLI will use to address wildfire risk, balancing mitigation costs with the resulting reduction in wildfire risk exposure.The 2026 WMP is structured as a rolling three-year plan covering the period 2026-2028. The Plan will be reviewed annually and updated as appropriate to extend the planning horizon and incorporate lessons learned,updated risk modeling, evolving mitigation practices, and budget forecasts, consistent with Order No. 36774. II. SUMMARY OF THE 2026 WILDFIRE MITIGATION PLAN A. Identifying Geographical Areas of Heightened Wildfire Risk 4. The Act requires each WMP to identify geographical areas where infrastructure may be subject to heightened wildfire risk. I.C. § 61-1803(3)(a).As described in Section 6 of the WMP, NLI conducted a baseline wildfire risk assessment using models incorporating vegetation, weather, topography, historical fire occurrence, and asset location. Risk maps categorize service territory by severity levels. NLI considers the eastern portion of its service territory along the Idaho-Montana border, and into Montana, to be higher risk. 5. Elevated wildfire risk areas are categorized using modeled severity levels. These levels are used to prioritize vegetation management scheduling, inspection frequency, system UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 2 hardening investments, relay setting adjustments, and potential Public Safety Power Shutoff (PSPS) consideration. Risk modeling outputs are reviewed annually and updated as necessary to reflect changes in vegetation, infrastructure, or climatic conditions. B. Preventive Actions and Programs to Reduce Wildfire Risk 6. The Act requires inclusion of preventive actions and programs to reduce wildfire risk. I.C. § 61-1803(3)(b). The Guidelines require situational awareness efforts, asset inspections, enhanced vegetation management practices, operational practices during heightened wildfire risk, and community education. 7. NLI's situational awareness efforts are described in Section 7.1 of the WMP. NLI utilizes National Weather Service data, Northern Rockies Geographic Area Coordination Center data, Pyrecast fire forecasting tools, and field observations. NLI has received grant funding to develop its own weather station network, which will integrate into a Daily Situational Awareness Tool expected to be operational by the end of 2026. 8. Weather and situational awareness data are used to inform operational decisions, including relay and recloser settings, field observer deployment, inspection prioritization, and potential PSPS implementation. 9. NLI's asset inspection program is described in Section 7.4.NLI began an inspection program in 2024, utilizing mobile tablets and GIS-linked survey forms. NLI's goal is to inspect 100% of overhead distribution lines within a seven-year rotation cycle. NLI contracts for pole testing covering approximately 8-10% of poles annually. Meters are inspected on a four-year cycle. High-priority deficiencies identified during inspections are assigned corrective action as soon as practicable.Medium-and low-priority items are scheduled and tracked through NLI's GIS- based inspection dashboard. UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 3 10. NLI's fuel and vegetation management program is described in Section 7.3. The program operates on a target seven-year trim cycle for overhead line segments. Hazard tree identification and removal are prioritized in areas with elevated wildfire risk. Satellite imagery and AI-assisted analysis inform work prioritization. Annual vegetation management mileage and removal activity are tracked and reviewed internally to assess performance and adjust resource allocation as necessary. 11. NLI's workforce training is explained in Section 7.5. Monthly safety meetings are held, covering wildfire and other safety topics.NLI also coordinates training and other events with local fire departments. 12. Operational practices during heightened wildfire risk are described in Section 7.6. NLI employs two seasonal protection setting levels based on fire restrictions. NLI also developed a PSPS program in 2025, described in Section 7.7,which relies on situational awareness inputs to determine when de-energization may be necessary as a measure of last resort. C. Community Outreach and Government Coordination 13. The Act requires community outreach and coordination with federal, state, tribal, and local officials. I.C. § 61-1803(3)(c) and(d). 14. NLI's outreach efforts with its members are described in Section 8 of the WMP. Communication methods include social media, NLI's website, print publications, bill stuffers, online videos, annual member meetings, and direct member engagement. During wildfire events, NLI may utilize interactive voice response systems and coordinate with local jurisdictions to distribute countywide alerts. 15. Coordination with local tribal entities is discussed in Section 5.3. Section 5.4 discusses emergency management and incident response. Section 8.1 discusses the current UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 4 community outreach and public awareness program, including notice to entities per I.C. § 61- 1084(2). 16. NLI conducted workshops prior to finalizing its WMP and will share the Plan with the Idaho State Forester, counties, fire protection districts, and associations within its service area. Restoration following wildfire events or PSPS will be coordinated with local fire chiefs or incident commanders. 17. Pursuant to Idaho Code § 61-1804(3),NLI will provide its WMP to the Idaho State Forester and will consider any recommendations received. To the extent recommendations are incorporated, such incorporation shall support the statutory presumption that the Plan complies with the Act. D. Cost-Benefit Analysis and Forecasted Program Expenditures 18. Order No. 36774 requires a cost-benefit analysis demonstrating a reasonable balancing of mitigation costs with wildfire risk reduction. 19. NLI evaluates wildfire mitigation projects and programs using a cost-versus-risk- reduction framework. Projects are assessed based on: 1. Relative wildfire ignition risk in the affected area; 2. Likelihood of vegetation or equipment-related ignition absent mitigation; 3. Expected reduction in ignition probability or severity; 4. System reliability benefits; and 5. Total capital and operational cost. 20. Vegetation management, inspection programs, system protection adjustments, and system hardening measures, including undergrounding and steel pole replacement, are prioritized in elevated wildfire risk zones identified in Section 6. 21. Cost evaluations are reviewed in Section 11 of the WMP. 22. Forecasted expenditures for 2026-2028 are categorized as: UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 5 • Capital Improvements (system hardening, pole replacement, undergrounding) • Operations &Maintenance (inspection,protection settings, operational mitigation measures) • Vegetation Management 23. These expenditures are reflected in NLI's approved budget forecasts and represent a reasonable balancing of wildfire mitigation cost with resulting risk reduction, consistent with Idaho Code § 61-1803(3)and Order No. 36774.As cost-tracking data accumulates,NLI will refine quantitative cost-benefit comparisons in future WMP updates. 24. Line design and constructions standards are set forth in Section 7.2 of the WMP. This section also discusses inspection of assets and goals. III. COMPLIANCE WITH ORDER NO. 36774 25. NLI has structured its 2026 WMP to comply with Order No. 36774 and the IPUC Wildfire Mitigation Plan Guidelines. Specifically, the WMP: • Identifies geographic wildfire risk areas and associated modeling methodologies; • Describes situational awareness tools and operational integration; • Establishes inspection and vegetation management cycles with measurable objectives; • Describes operational mitigation measures, including relay adjustments and PSPS protocols; • Includes community outreach and government coordination procedures; • Provides a rolling three-year planning horizon; and • Includes a cost-balancing framework consistent with statutory and Commission directives. 26. NLI's compliance matrix is attached hereto as Exhibit C. IV. REQUEST FOR MODIFIED PROCEDURE 27. NLI respectfully submits that its 2026 WMP satisfies all statutory and regulatory requirements. UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 6 28. NLI will provide notice of this filing in accordance with the Act. LC. 61-1803(5). Pursuant to the errata to Order No. 36774 issued by the Commission on December 22, 2025, NLI has included a template form of notice as Attachment D to this Application. 29. An evidentiary hearing is not necessary to consider the issues presented in this Application. Accordingly, NLI respectfully requests that the Commission issue an order authorizing this Application to be processed under Modified Procedure pursuant to Rules 201-204, which allow for consideration by written submission rather than by an evidentiary hearing. V. CORRESPONDENCE OR COMMUNICATIONS 30. Correspondence and communications regarding this Updated Application should be addressed to: Kristin Burge Engineering & Operations Manager Northern Lights, Inc. P.O. Box 269 Sagle, ID 83860 kristin.Burge@nli.coop Susan P. Weeks (ISB N o. 4255) James,Vernon&Weeks, P.A. 1626 Lincoln Way Coeur d'Alene, ID 83814 sweeks@jvwlaw net Informal questions may be directed to Kristin Burge, Engineering & Operations Manager at(208)263-5141. VI. REQUEST FOR RELIEF 31. Wherefore,NLI respectfully requests that the Commission issue an order approving UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 7 the Updated 2026 WMP in accordance with the WSCA. Respectfully submitted this 19th day of February, 2025. JAMES, VERNON &WEEKS, P.A. /s/Susan P. Weeks Susan P. Weeks Attorneys for Northern Lights, Inc. UPDATED APPLICATION OF NORTHERN LIGHTS, INC.: 8 ATTACHMENT A NORTHERN LIGHTS, INC. WILDFIRE MITIGATION PLAN The power of local service Northern Lights, Inc. Wildfire Mitigation Plan February 16, 2026 1.0 Executive Summary Northern Lights, Inc. (NLI) operates distribution infrastructure in Washington, Montana and Idaho.This plan is based on the Washington template and has been updated to include requirements within Montana and Idaho as well. The Washington Legislature passed House Bill 1032 in July 2023. By October 31, 2024, and every three years thereafter, each consumer-owned utility and investor-owned utility must review, if appropriate revise, and adopt its wildfire mitigation plan. When reviewing or revising a wildfire mitigation plan, utilities must use the recommended format and elements contained in the Wildfire Mitigation Plan (WMP)format.The plan must be submitted to the Washington utility wildland fire prevention advisory committee created in RCW 76.04.780 to be posted on their website. Under Idaho code section 61-1804, NLI will elect to file a Wildfire Mitigation Plan with the Idaho Public Utilities Commission (IPUC) initially in 2026.Annually NLI will review, update, and file its WMP along with filing a report describing the development and adoption of the wildfire mitigation plan's component and measures,the WMP expenditures, and the work taken to develop and adopt the plan's components and measures. Under Montana HB 490 passed in May of 2025, NLI will submit an initial WMP with Montana no later than December 31, 2025. NLI must seek public comment as part of the process. NLI will resubmit an updated or subsequent WMP for approval to its board every 3 years. 1.1 Definitions Wildfire Mitigation Plan (WMP):This plan. PSPS: Public safety power shutoff.A temporary power outage initiated by an electric utility to reduce the risk of wildfires during extreme fire risk. I.C.: Idaho Code RCW: Revised Code of Washington state. Recloser: A recloser is an automatic, high-voltage electric switch which de-energizes the affected portion of the power system when a fault, such as a tree falling into an electric power line, occurs. System protection devices: Equipment such as relays, circuit breakers, and fuses that automatically detect abnormal conditions (faults) and isolate the fault to prevent widespread damage or safety issues. SCADA: Supervisory Control and Data Acquisition is a computer-based system for monitoring and controlling electrical components on a power system.This system gathers real-time data from field equipment. WAC: Washington Administrative Code. i 1.2 Three-Year Planning Horizon This Wildfire Mitigation Plan ("WMP") is structured as a rolling three-year plan covering the period 2026 through 2028.The Plan establishes mitigation programs, operational protocols, inspection cycles, vegetation management standards, and capital improvement priorities intended to reduce wildfire risk over this planning horizon. The WMP is designed to be iterative and adaptive. NLI will conduct an annual review of the Plan to: • Evaluate wildfire season performance metrics, including ignition incidents, inspection findings, vegetation management outcomes, and system reliability indices; • Review updated wildfire risk modeling and mapping; • Incorporate lessons learned from operational experience, including any PSPS events or elevated fire weather operations; • Adjust mitigation strategies, prioritization of projects, and resource allocation as appropriate; and • Extend the planning horizon to maintain a rolling three-year outlook. As part of this annual review process, NLI will assess whether program goals, inspection cycles, vegetation management targets, and capital investments remain appropriately calibrated to the wildfire risk profile of its service territory.Where modifications are warranted, updates will be incorporated into subsequent WMP filings. By maintaining a rolling three-year planning horizon, NLI ensures that wildfire mitigation efforts remain forward-looking, data-informed, and aligned with evolving risk conditions and operational best practices, consistent with Idaho Code § 61-1803 and Order No. 36774. ii Table of Contents Section Page 1.0 Executive Summary .............................................................................................................i 1.1 Definitions....................................................................................................................... i 1.2 Three-Year Planning Horizon........................................................................................ ii 2.0 Wildfire Mitigation Plan Overview................................................................................... 1 2.1 Purpose of the Wildfire Mitigation Plan.........................................................................1 2.2 Description of Where WMP Can be Found Online........................................................1 3.0 Utility Overview...................................................................................................................2 3.1 Utility Description and Context Setting Table................................................................2 4.0 Objectives of the Wildfire Mitigation Plan....................................................................... 5 4.1 Minimizing likelihood of ignition...................................................................................5 4.2 Resiliency of the electric grid .........................................................................................5 5.0 Roles and Responsibilities .................................................................................................. 5 5.1 Utility Roles and Responsibilities...................................................................................6 5.2 Coordination with local utility and infrastructure providers...........................................6 5.3 Coordination with local Tribal entities ...........................................................................6 5.4 Emergency Management/Incident Response Organization..........................................6 6.0 Wildfire Risks and Drivers Associated with Design, Construction, Operation, andMaintenance................................................................................................................. 6 6.1 Risks and risk drivers associated with topographic and climatological risk factors.......9 6.2 Enterprise-wide Safety Risks..........................................................................................9 7.0 Wildfire Preventative Strategies........................................................................................ 9 7.1 Weather Monitoring........................................................................................................9 7.1.1 Current Strategy Overview....................................................................................9 7.1.2 Planned Updates..................................................................................................10 7.2 Design and Construction Standards..............................................................................10 7.2.1 Current Strategy Overview..................................................................................10 7.2.2 Planned Updates..................................................................................................10 7.3 Fuel & Vegetation Management...................................................................................10 7.3.1 Current Strategy Overview..................................................................................10 7.3.2 Planned Updates..................................................................................................11 7.4 Asset Inspections and Response....................................................................................11 7.4.1 Current Strategy Overview..................................................................................11 7.4.2 Planned Updates..................................................................................................11 7.5 Workforce training........................................................................................................12 7.5.1 Current Strategy Overview..................................................................................12 7.5.2 Planned Updates..................................................................................................12 7.6 Relay and Recloser Practices........................................................................................12 7.6.1 Current Strategy Overview..................................................................................12 7.6.2 Planned Updates..................................................................................................12 7.7 De-energization/Public Safety Power Shutoff............................................................12 7.7.1 Current Strategy Overview..................................................................................12 iii 7.7.2 Planned Updates..................................................................................................12 8.0 Community Outreach and Public Awareness ................................................................ 13 8.1 Current Community Outreach and Public Awareness Program ...................................13 8.2 Planned Updates............................................................................................................13 9.0 Restoration of Service....................................................................................................... 13 10.0 Evaluating the Plan........................................................................................................... 14 10.1 Metrics and Assumptions for Measuring Plan Performance.........................................14 10.2 Identifying and Addressing Areas of Continued Improvement in the Plan..................15 10.3 Monitoring the Performance of Inspections..................................................................15 11.0 Cost Evaluation ................................................................................................................. 16 11.1 Cost vs. Benefit Approach............................................................................................16 iv 2.0 Wildfire Mitigation Plan Overview 2.1 Purpose of the Wildfire Mitigation Plan The purpose of this Wildfire Mitigation Plan (WMP) is to document the strategies,programs, and procedures in place to mitigate the threat of electrical equipment ignited wildfires by Northern Lights, Inc. (NLI). The WMP addresses the unique features of its service territory, such as topography, weather, infrastructure, grid configuration, and areas most prone to wildfire risks. The plan includes the maintenance of its transmission and distribution assets, as well as the management of vegetation in the right-of-way (ROW) areas that contain these assets. The WMP is a living document that will be reassessed routinely as projects and initiatives are proposed and completed. Primary accountability for plan implementation resides with the General Manager. 2.2 Description of Where WMP Can be Found Online The WMP will be made available publicly on the Washington utility wildland fire prevention committee website under RCW 76.04.780. 1 3.0 Utility Overview 3.1 Utility Description and Context Setting Table Table 1. Context-Setting Information Table Utility Name Northern Lights, Inc. Service Territory Size (sq miles) Washington: 20 Idaho: 3,000 Montana: 2,500 TOTAL: 5,520 Service Territory Make-up NLI's Overall Service Area(ID, MT, &WA) (Note: data are from national land cover database from USGS.gov, 3%Urban not all categories represented in this template) 2%Agriculture 1%Barren/Other 78% Conifer Forest 3.5%Herbaceous 10.7% Shrub 1.8%Water Washington ONLY: 0.1%Urban * Sum of Developed 0.2%Agriculture * Hay/Pasture 97% Conifer Forest *Evergreen Forest 0.7%Herbaceous *Herbaceous 2% Shrub * Shrub/Scrub Service Territory Wildland Urban Interface (based on total NA/Not tracked. area) Customers Served Idaho: 18,838 (Note: NLI considers customers as members) Montana: 4,971 2 Washington: 19 (As of August 2024) Account Demographic Washington is 100% residential. [Note:Please provide as a percent of total customers served] NLI overall: Type Count Irrigation 52 0.21 Large Commercial 15 0.06 Large Power 45 0.19 Primary 7 0.03 Residential 23050 94.83 Security and Street Lights 348 1.43 Small Commercial 789 3.25 Utility Equipment Make-up (circuit miles) Overhead Distribution is 7- 34.5 Kv [Line miles are calculated using data from the Engineering Model's Overhead Transmission is>34.5Kv GIS data length field. GIS uses the NAD 83 State Plane Idaho West Underground Distribution is 7- 34.5 Kv FIPS 1103 coordinate System.] Underground Transmission is> 34.5Kv Washington Overhead Distribution: 5.40 miles Overhead Transmission: 0 3 Underground Distribution: .61 miles Underground Transmission: 0 Total System (WA,ID, MT) 5,280 Overhead Distribution: 1345.93 miles Overhead Transmission: 47.79 miles Underground Distribution: 1266.25 miles Underground Transmission: .50 miles Has developed protocols to pre-emptively shut off electricity in Yes. response to elevated wildfire risks?' See Section 7. No. Has previously pre-emptively shut off electricity in response to elevated wildfire risk? 'For many utilities this will be a reference to a Public Safety Power Shutoff(PSPS)event.These events,whether through a formally defined PSPS program or not,are recognized as a safety measure of last resort initiated by utilities to pre-emptively de-energize specific powerlines during critical fire weather to reduce the risk of the electric system being involved in an ignition.The decision to either have or not have this type of practice is at the operational discretion of the individual utility. 4 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 4.0 Objectives of the Wildfire Mitigation Plan The objective of the WMP is to minimize the possibility that NLI facilities may be an original or contributing source of ignition and to improve NLI's ability to withstand fire weather conditions and quickly recover services. NLI has evaluated the system improvements, technology, operational procedures, and training that can help to meet this objective. The WMP was developed to be consistent with requirements of Washington, Idaho, and Montana. 4.1 Minimizing likelihood of ignition The WMP describes the range of activities that NLI is taking or considering to mitigate the threat of power-line ignited wildfires, including its various programs, policies, and procedures. The plan will be iterative,promote continuous improvement, and represent NLI's efforts to implement industry best practices in a reasonable manner. This WMP also establishes methods and procedures used to construct, maintain, and operate NLI's electrical system and equipment to minimize the risk of wildfire. 4.2 Resiliency of the electric grid NLI's design and construction of its distribution and transmission systems and equipment is intended to reduce the likelihood of ignition and improve electrical asset survivability. System hardening investments are evaluated on a case-by-case basis. When prudent,NLI utilizes system hardening measures including: • Stronger or metal poles to address engineering standards that exceed code requirement. • Shorter span length and larger spacing between energized conductors to reduce mid-span conductor contact. • Relocate utility poles closer to the road to enhance access. • Strategic undergrounding in areas prone to repeated outages due to tree exposure. 5.0 Roles and Responsibilities NLI utilizes a Board/General Manager governance and reporting hierarchy. Board members are elected by NLI member owners to a rotating four-year term. NLI's Board will be responsible for approving the WMP2. NLI will also submit the plan to the Idaho Public Utilities Commission for approval. NLI staff, including the General Manager and the Engineering & Operations Manager, will be responsible for implementation and updating the WMP. 2 Washington and Montana require the WMP to be board approved.For Idaho,NLI will submit the plan to the Idaho Public Utilities Commission for their approval. 5 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 5.1 Utility Roles and Responsibilities NLI employees have the following responsibilities regarding fire prevention and response: - Conduct work in a manner that will minimize potential fire dangers. - Take reasonable and practical actions to prevent fires caused by NLI electric infrastructure. - Immediately report any observed fires and if possible, extinguish them. - Take corrective action if infrastructure or a ROW becomes a wildfire hazard. - Ensure data related to WMP are appropriately collected and documented. - Provide feedback to management on the WMP and strategies to improve the WMP. - Consider wildfire mitigation costs,benefits and risk to make prudent decisions. 5.2 Coordination with local utility and infrastructure providers NLI will coordinate its WMP with other utilities and infrastructure providers as necessary. In the event of a major wildfire emergency,NLI will lean on the local emergency management or incident command team to coordinate efforts among all entities. See section 8.1 for more details. 5.3 Coordination with local Tribal entities NLI has limited tribal residents and electric services in its service territory. NLI will coordinate as needed with any Tribes impacted due to a wildfire, and if a larger event, NLI will collaborate with the local emergency management team or the incident command team to coordinate among all entities. 5.4 Emergency Management/Incident Response Organization NLI attends coordination meetings with local county emergency management agencies throughout the year. NLI provides electric services in six different counties in three states, including Pend Oreille County in Washington, Bonner, Boundary and Kootenai Counties in Idaho, and Lincoln and Sanders Counties in Montana. NLI receives alerts from local agencies when threatening conditions are possible, imminent, or occurring. Should a large-scale wildfire event occur and coordination with area agencies outside of NLI be necessary,NLI's Engineering& Operations Manager or Operations Superintendent will be assigned to coordinate with the agencies. It is anticipated that NLI would not be a lead agency in a major wildfire event, however,NLI would be involved as necessary. 6.0 Wildfire Risks and Drivers Associated with Design, Construction, Operation, and Maintenance To establish a baseline understanding of the risks and risk drivers involved,NLI regularly evaluates its exposure to wildfire related hazards. NLI has mapped its assets overlayed with 6 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 wildfire risk to provide insight into risk. This section provides an overview of the service area properties and associated risks. NLI considers its entire service territory as having a wildfire risk, however, the eastern portions along the Idaho-Montana border and into Montana are considered higher risk. 7 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 Creston CANADA ,, r SA �►,�' 17713 olville nal Forest Sah Mount Jul 10 el 1577 tion fs „ y ,o_ •/Iv �•, ,:� Fri �,�.�►, ,�'�� r�� Sandpoint Mountai Mountiins Post Falls Coeur d'Alene National Forest . L .1 Legend 1 1 5 10 20 Miles County Boundaries i • �. Lan• •_ • _ Risk ena pjl According • Athena 2025 Q1 Data " ' �• NTHERN LIGHTS, INC. 1 1 421 Chevy Street,Sagle,Idaho .1 1 .1 NUPhone: 1: M W MC. . 1 . Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 6.1 Risks and risk drivers associated with topographic and climatological risk factors NLI staff evaluates its own, as well as the past experiences of other electric utilities, along with geographical characteristics within the region and field experience to determine the key potential risk drivers. NLI then enhances its existing mitigation approaches and incorporates the best available utility practices. This combination of current and future-implemented strategies is intended to manage or mitigate the following risk drivers: • Drought Conditions • Real-Time Fire Weather o High Winds o High Temperatures o Low Humidity o Poor Moisture Recoveries o Red flag warnings • Vegetation Type & Fuels • Wildland urban interface 6.2 Enterprise-wide Safety Risks NLI evaluated the causes of fires at electric utilities and applied our field experience to determine the potential risk drivers. The following categories were identified as risk drivers: • Foreign contact • Equipment failure • Vehicle impact • Expulsion fuses • Wire to wire contact 7.0 Wildfire Preventative Strategies 7.1 Weather Monitoring 7.1.1 Current Strategy Overview The following resources are used by NLI for weather monitoring: 9 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 • National Weather Service (NWS)—emailed weekly briefings, event-based email notifications, live pre-event briefings, and real-time access to chat and live notifications (Slack messenger). NLI staff monitors weather daily from online NWS sources. • Northern Rockies Geographic Area Coordination Center(NRGACC)—provides fuels, fire weather, fire weather danger outlooks and predictions. • Pyrecast—a near-term fire forecasting support tool. This tool visualizes data from three wildfire related forecasts including active fires, risk forecast, and 8-day fire weather forecast. • Field Observation—During extreme weather,NLI may elect to station field observers to monitor conditions in an area of concern. 7.1.2 Planned Updates NLI has received grant funding to set up our own weather station network. This data will be incorporated into a Daily Situational Awareness Tool (DSAT). This is expected to be set up and functioning by the end of 2026. 7.2 Design and Construction Standards 7.2.1 Current Strategy Overview NLI's construction specifications include Rural Utilities Services (RUS) and National Electric Safety Code (NESC) design recommendations. Current wildfire mitigation design and construction approaches that NLI actively is implementing include: • Overhead to underground power line conversions • System monitoring of substation feeders (SCADA) (partially completed) • Recloser upgrades (partially completed) • Pole replacements and replacing wood poles with steel poles, where appropriate • Installing fiberglass crossarms instead of wood. 7.2.2 Planned Updates No design-standard changes are anticipated in the next 3-year period, however,NLI will continue to evaluate and monitor changes to RUS and NESC and utility best practices. 7.3 Fuel & Vegetation Management 7.3.1 Current Strategy Overview NLI has at least one internal person assigned to oversee the vegetation management contractors and program. Contractors trim vegetation year-round and mower crews are added during the 10 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 warmer weather months along with additional aerial crews.NLI's goal is to have a 7-year trim cycle for all sections of overhead line. Dangerous or hazardous trees are removed, including dead trees at risk of falling into overhead powerlines. Right-of-way mowing is performed in areas after larger trees have been removed or if growth is minimal. A US Forest Service approved regional seed mix is planted in many rights- of-way after a mowing crew has cleared the area. This helps prevent new trees from returning and encourages smaller vegetation to grow in the right-of-way. NLI uses satellite vegetation images to drive an AI machine learning system to provide a risk- based approach to vegetation management to help prioritize areas. NLI has utilized this service for image capture since 2023. Within Idaho, NLI will work with timber company land owners to develop a plan to manage live marketable timber that is identified for removal from timber company land adjacent to the rights- of-way. 7.3.2 Planned Updates NLI received a grant to conduct a drone inspection for a portion of our overhead system in Idaho. This will be done under the grant funding and if beneficial and cost effective may be added as a future planned management strategy to this WMP. 7.4 Asset Inspections and Response 7.4.1 Current Strategy Overview NLI's current inspection strategies are: • NLI started an inspection program in 2024 utilizing mobile tablets with survey forms tied to NLI's mapping system. The goal is to inspect all overhead lines in a 7-year period. Repairs or remediation are performed when issues are noted. • NLI contracts with a pole inspection company to test 8-10% of poles annually. Data from the contract inspectors are input into NLI's mapping system for follow-up. • NLI's meter reader inspects member meters with the goal of a 4-year cycle to inspect each meter. Any issues found are reported to the appropriate department for follow-up. • As mentioned above in section 7.3, Fuel & Vegetation Management,NLI utilizes a satellite vegetation analysis system to provide an aerial survey of NLI's overhead powerline assets. See section 7.3.1 above for more details. 7.4.2 Planned Updates NLI received a grant to conduct a drone inspection for a portion of our overhead system in Idaho. This will be done under the grant funding and if beneficial and cost effective may be added as a future planned management strategy to this WMP. 11 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 7.5 Workforce training 7.5.1 Current Strategy Overview NLI has monthly safety meetings where wildfire and safety topics are covered, including Washington State Department of Labor& Industries Chapter 296-45 WAC safety rules. NLI also coordinates training and other events with local fire departments. 7.5.2 Planned Updates Training needs are evaluated and managed throughout the year and training topics are modified as needed. No major changes are expected within the next 3 years. 7.6 Relay and Recloser Practices 7.6.1 Current Strategy Overview NLI will implement two levels of seasonal settings based on the current area fire restrictions in each of the 6 counties of NLI's service territory. NLI may opt to include or exclude certain line segments based on hazard modeling or on-the-ground experience. Level 1 Settings • Stage 1 fire restrictions in place. • Reclosing is turned off. Level 2 Settings • Stage 2 fire restrictions in place. • System protection devices will be set to trip as quickly as the device allows. Additionally,NLI has seasonal settings in the Yaak area ("Y line"). The seasonal settings provide a more sensitive setting for tripping a fault during summer loads. 7.6.2 Planned Updates NLI updated its recloser practices in 2025, however, the fire restrictions were never elevated to Level 1 during 2025. NLI will adjust this methodology based on lessons learned and other updated industry best practices as needed. 7.7 De-energization/Public Safety Power Shutoff 7.7.1 Current Strategy Overview NLI developed a Public Safety Power Shutoff(PSPS)program in 2025. This program is separate from the WMP and will rely on the weather forecasting and hazard monitoring tools noted in section 7.1.1. NLI does not have bright-line rules for when it will de-energize a circuit but does have numerous inputs that will be monitored to determine if the risk is too high to leave a circuit energized. PSPS is a tool of last resort and will only be used under extreme conditions. 7.7.2 Planned Updates The plan will be evaluated and updated as needed and as there are"lessons learned". 12 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 8.0 Community Outreach and Public Awareness 8.1 Current Community Outreach and Public Awareness Program NLI communicates with its members through multiple means, and wildfire is a topic often covered. The resources NLI uses to communicate with its members include: • Social media platforms. • Website, www.nli.coop • Print magazine and bill stuffers. • Videos are available online and pushed to social media. • Annual meeting and member events • Employee meetings and interactions with members. • In 2025, NLI hosted a public comment period and meeting to seek input on its WMP from members, agencies, and other community organizations.3 NLI also will share this plan with the Idaho state forester, counties, fire protection districts, and associations within its service area.4 NLI utilizes various platforms to communicate during a major storm or other event. Should a wildfire event occur for which NLI needs to communicate with its members, the above (8.1) methods can be utilized, as well as: • Telephonic services using an interactive voice responsive (IVR) platform. • Coordination with local jurisdictions to push county wide messages via text or email. 8.2 Planned Updates NLI is adding additional capabilities for text communication with its members that will be fully implemented in 2026. 9.0 Restoration of Service NLI will patrol de-energized lines should a PSPS event be initiated. Restoration of service due to a wildfire event would be coordinated with local fire chiefs or incident commanders. Lines would be repaired, as needed, and patrolled prior to re-energizing. NLI maintains stocked materials for unforeseen repairs. s Montana requires a 45-day public comment period and a public meeting. a Idaho requires the plan be filed with several organizations within Idaho within 5 days of filing the WMP with IPUC. 13 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 10.0 Evaluating the Plan 10.1 Metrics and Assumptions for Measuring Plan Performance NLI has selected several metrics (see table below) intended to gauge the effectiveness of the various programs and strategies outlined in the WMP. The annual tracking of these metrics will help identify circuits most susceptible to unexpected outages, time-of-year risks, and the adequacy of the vegetation management and asset inspection schedules. NLI will reassess its operations and identify areas for improvement as more data becomes available, and refine the WMP as needed. In May 2025,NLI started tracking costs incurred in implementing the WMP throughout the year. This will be reported to the NLI Board and other agencies as necessary and as required5. 5 For Montana,no later than June 1 of each year,NLI will submit to its Board a report summarizing NLI's wildfire mitigation efforts and compliance with its currently approved WMP.For Idaho,once the Idaho Public Utilties Commission approves NLI's plan,NLI will submit on an annual basis or on such a basis as the IPUC prescribes by rule or order,a report that includes documentation describing the development and adoption of the WMP's components and measures,the WMP expenditures,and the work taken to develop and adopt the plan's components and measures. 14 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 Performance Metrics Measure of Effectiveness Red Flag Warnings Used to adjust annual Indication of overall in service area variation in criteria threat level for each fire season Number of system Effectiveness of the Reduction or no related ignitions mitigation plan material increase System Average Interruption Assess system Reduction in annual Frequency Index hardening& overall average score (SAIFI) reliability AL AN in System Average Assess system Interruption hardening& overall Reduction in annual Duration Index reliability average score (SAIDI) 10.2 Identifying and Addressing Areas of Continued Improvement in the Plan In 2025, NLI added a PSPS program and updated plans for system protection. These plans will be monitored and will be adjusted as needed. The NLI PSPS program was not acted upon in 2025 and has yet to be used for a shutoff event. 10.3 Monitoring the Performance of Inspections NLI's inspections are followed up using various notifications. For internal line inspections, any issues are assigned follow-up, and immediate issues are assigned to a service crew to repair as soon as possible. For pole testing, the contractor provides weekly reports with GIS data. Any immediate issue is provided to NLI's Dispatch or Operations Superintendent to assign a crew to remedy. Other lower priority items are tracked on an internal map dashboard. Vegetation inspections also are tracked on an internal map dashboard. Inspections are considered an important part of NLI's maintenance and fire mitigation goals. Guided by NLI Operations and Engineering employees, the processes to determine and mitigate deficiencies within the electric system will continue to be adjusted. 15 Northern Lights, Inc. Wildfire Mitigation Plan January 14, 2026 11.0 Cost Evaluation 11.1 Cost vs. Benefit Approach When evaluating projects or programs for NLI's systems, all the benefits are evaluated against the cost. Most projects and programs have several system benefits and are not solely a wildfire mitigation cost. The cost of a wildfire can vary greatly, and it is difficult to pinpoint a cost to compare the efforts within NLI's WMP to. As of May 2025,NLI has started tracking costs specific to wildfire mitigation, however, it has not incurred adequate data to provide any insight. However, when looking at costs,we can ascertain cost vs. impact to wildfire mitigation benefit at a high level, see table below. Pro ect ro ram EH10 ost Impact for Wildfire Mitigation PSPSw High Relayand Recloser Practicesow High Vegetation Management High Inspections Medium Medium Under roundin High High Replace wood poles with metal High Medium Install fiberglass crossarms Medium Medium Community Outreach Low Low 16 ATTACHMENT B NEED TO KNOW DOCUMENTS Electric Municipality and Cooperative Wildfire Mitigation Plan Need to Know Document Pursuant to Idaho Code § 61-1803(3), a Wildfire Mitigation Plan("WMP") must be reflective and commensurate with the size and complexity of the electric corporation's operations and of the nature of the fire risk.A WMP must also reflect a reasonable balancing of mitigation costs with the resulting reduction of wildfire risk. The purpose of this document is to collect basic information that will aid in Staff s review to process a WMP. Please provide the following information and provide the document along with each respective WMP filing. 1. Name of Utility Northern Lights, Inc. (NLI) 2. Location of Utility: NLI Main Office 421 Chevy St Sagle, ID 83860 a. Located inside of the Wildland Urban Interface? Yes. 3. Please provide a map of the Company's service territory. Please identify the Company assets and provide a PDF zoomable. Files provided in"NLI Service Area Maps.pdf'. 4. Total number of Customers: a. Residential: 23,050 b. Commercial: 856 c. Other: 400 5. How is energy supplied to the Company?i.e., BPA,utility-owned generation, etc. Energy supplied to NLI for distribution to members is supplied by BPA and through PNGC, along with a small portion from NLI's Lake Creek hydroelectric dam. a. What is the name plate capacity in Megawatts("MW")of utility- owned generation sources?4.5 MW b. What is the capacity factor of utility-owned generation sources? 51% at name plate. NEED TO KNOW DOCUMENT 6. What is the annual amount of energy in Megawatt-hours that the utility serves? For 2025, NLI served 436,620 Megawatt-hours. 7. What is the peak demand in MW and when does it occur? January 2024: 120.3 MW January 2025: 90.6 MW 8. Standard operating procedures ("SOP") for infrastructure management and vegetation management? See"NLI Infrastructure &Vegetation Management Procedure.pdf' a. Annual spend? See below. b. Annual incremental spend proposed in WMP from SOP? See below. % Increase Increase Increase from from Budgeted for from prior Forecasted for prior Forecasted for prior 2026 year 2027 year Bot2028 year Capital $ 9,281,000 -3.0% $ 9,652,240 4% $ 10,038,330 4% 0&M $ 8,003,002.00 3.2% $ 8,443,167.11 5.5% $ 8,780,893.79 4% Vegetation $ 3,195,384.00 3.0% $ 3,355,153.20 5% $ 3,522,910.86 5% 9. Last 3 years of financial statements: a. Income Statement b. Cash Flow Statement c. Balance Sheet See provided audit statements for past 3 years. NEED TO KNOW DOCUMENT Northern Lights, Inc. Balance Sheets December 31, 2024 and 2023 2024 2023 ASSETS NONCURRENT ASSETS Net utility plant $ 94,891,690 $ 88,320,621 Right-of-use assets 7,074 46,843 Other assets and investments 5,290,191 5,203,436 Total noncurrent assets 100,188,955 93,570,900 CURRENT ASSETS Cash and cash equivalents 1,566,089 1,137,573 Accounts receivable, net 4,636,097 4,771,947 Materials and supplies inventory 2,845,601 4,015,389 Other current assets 137,755 67,308 Total current assets 9,185,542 9,992,217 Total assets $ 109,374,497 $ 103,563,117 MEMBERS' EQUITY AND LIABILITIES TOTAL MEMBERS' AND OTHER EQUITY $ 63,688,479 $ 62,624,608 LONG-TERM DEBT, less current maturities 31,429,337 24,610,306 LEASE LIABILITY, less current portion - 6,474 POST-RETIREMENT OBLIGATION 2,329,246 2,175,042 CURRENT LIABILITIES Long-term debt, due within one year 3,152,393 2,883,677 Lease liability, due within one year 7,074 40,369 Lines of credit 3,500,000 5,000,000 Accounts payable 2,830,554 2,884,624 Consumer deposits 158,198 162,434 Other current and accrued liabilities 2,225,498 3,117,560 Total current liabilities 11,873,717 14,088,664 DEFERRED CREDITS 53,718 58,023 Total members' equity and liabilities $ 109,374,497 $ 103,563,117 See accompanying notes. 4 Northern Lights, Inc. Statements of Operations and Comprehensive Income Years Ended December 31, 2024 and 2023 2024 2023 OPERATING REVENUES $ 43,133,377 $ 41,932,825 OPERATING EXPENSES Cost of power 17,950,206 15,763,614 Power production expense 518,933 564,764 Transmission expense—maintenance 41,976 22,380 Distribution expense—operation 3,203,419 3,192,761 Distribution expense—maintenance 8,214,574 7,418,999 Consumer accounts expense 1,836,232 1,751,391 Sales expense 468,575 435,320 Administration and general expense 4,123,961 4,103,457 Depreciation expense 3,666,782 3,782,344 Tax expense 982,816 1,036,487 Other expense 29,531 25,049 Total operating expenses 41,037,005 38,096,566 Operating margins 2,096,372 3,836,259 FINANCE CHARGES Interest on long-term debt 1,287,477 1,134,638 Other interest expense 387,938 336,059 Total finance charges 1,675,415 1,470,697 Net operating margins 420,957 2,365,562 NON-OPERATING MARGINS Investment income 73,088 44,737 Non-operating margins—other 2,012,693 2,245,142 Gain on disposition of property 127,839 73,434 Other capital credits 496,041 437,799 Total non-operating margins 2,709,661 2,801,112 Net margins 3,130,618 5,166,674 OTHER COMPREHENSIVE INCOME Reclassification adjustment for amounts included in the computation of net periodic pension cost(See Note 7— Post-Retirement Benefit Obligation) (211,336) (4,226) Total comprehensive income $ 2,919,282 $ 5,162,448 See accompanying notes. 5 Northern Lights, Inc. Statements of Changes in Patronage Capital and Other Equities Years Ended December 31, 2024 and 2023 2024 2023 Memberships $ 163,377 $ 163,377 Patronage capital Balance at January 1, 45,359,345 45,449,640 Transfer of current year operating margins 420,957 2,365,562 Retirements and unclaimed capital credits, net (2,127,573) (2,455,857) Balance at December 31, 43,652,729 45,359,345 Other equities Balance at January 1, 17,101,886 13,969,519 Retirements and unclaimed capital credits, net 272,162 335,481 Other comprehensive (loss) gain —ASC 715 adjustment (211,336) (4,226) Current year non-operating margins 2,709,661 2,801,112 Balance at December 31, 19,872,373 17,101,886 Total members' and other equity $ 63,688,479 $ 62,624,608 See accompanying notes. 6 Northern Lights, Inc. Statements of Cash Flows Years Ended December 31, 2024 and 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Comprehensive income $ 2,919,282 $ 5,162,448 Adjustments to reconcile comprehensive income to net cash from operating activities Depreciation expense 4,529,528 4,589,065 Other capital credits (496,041) (437,799) Other comprehensive gain —ASC 715 adjustment (211,336) (4,226) Change in assets and liabilities Accounts receivable 135,850 622,124 Materials and supplies inventory 1,169,788 (2,174,059) Other current assets (70,447) (1,814) Deferred charges - 55,822 Accounts payable (54,070) (336,836) Consumer deposits (4,236) 11,523 Other current and accrued liabilities (892,062) 1,113,581 Post-retirement benefit obligation 365,540 (43,820) Deferred credits (4,305) (1,983) Net cash from operating activities 7,387,491 8,554,026 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of utility plant (16,699,843) (13,270,455) Proceeds from aid to construction 5,599,246 6,292,138 Change in other assets and investments 409,286 329,786 Net cash from investing activities (10,691,311) (6,648,531) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under long-term debt 10,000,000 2,015,000 Principal payments on long-term debt (2,912,253) (2,961,545) Borrowing (payments) under lines of credit, net (1,500,000) 1,500,000 Payment of retired patronage capital credits (2,127,573) (2,455,857) Changes in other equities 272,162 335,481 Net cash from financing activities 3,732,336 (1,566,921) NET CHANGE IN CASH AND CASH EQUIVALENTS 428,516 338,574 CASH AND CASH EQUIVALENTS, beginning of year 1,137,573 798,999 CASH AND CASH EQUIVALENTS, end of year $ 1,566,089 $ 1,137,573 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest during the year $ 1,635,032 $ 1,457,054 See accompanying notes. 7 Northern Lights, Inc. Balance Sheets December 31, 2023 and 2022 2023 2022 ASSETS NONCURRENT ASSETS Net utility plant $ 88,320,621 $ 85,931,369 Right-of-use assets 46,843 55,433 Other assets and investments 5,203,436 5,095,423 Total noncurrent assets 93,570,900 91,082,225 CURRENT ASSETS Cash and cash equivalents 1,137,573 798,999 Accounts receivable, net 4,771,947 5,394,071 Materials and supplies inventory 4,015,389 1,841,330 Other current assets 67,308 65,494 Total current assets 9,992,217 8,099,894 DEFERRED CHARGES - 55,822 Total assets $ 103,563,117 $ 99,237,941 MEMBERS' EQUITY AND LIABILITIES TOTAL MEMBERS' AND OTHER EQUITY $ 62,624,608 $ 59,582,536 LONG-TERM DEBT, less current maturities 24,610,306 25,478,983 LEASE LIABILITY, less current portion 6,474 14,225 POST-RETIREMENT OBLIGATION 2,175,042 2,223,088 CURRENT LIABILITIES Long-term debt, due within one year 2,883,677 2,961,545 Lease liability, due within one year 40,369 41,208 Lines of credit 5,000,000 3,500,000 Accounts payable 2,884,624 3,221,460 Consumer deposits 162,434 150,911 Other current and accrued liabilities 3,117,560 2,003,979 Total current liabilities 14,088,664 11,879,103 DEFERRED CREDITS 58,023 60,006 Total members' equity and liabilities $ 103,563,117 $ 99,237,941 See accompanying notes. 4 Northern Lights, Inc. Statements of Operations and Comprehensive Income Years Ended December 31, 2023 and 2022 2023 2022 OPERATING REVENUES $ 41,932,825 $ 42,416,052 OPERATING EXPENSES Cost of power 15,763,614 16,596,736 Power production expense 564,764 370,025 Transmission expense—maintenance 22,380 42,988 Distribution expense—operation 3,192,761 2,816,540 Distribution expense— maintenance 7,418,999 6,970,339 Consumer accounts expense 1,751,391 1,612,067 Sales expense 435,320 364,215 Administration and general expense 4,103,457 3,828,257 Depreciation expense 3,782,344 3,382,610 Tax expense 1,036,487 956,293 Other expense 25,049 40,445 Total operating expenses 38,096,566 36,980,515 Operating margins 3,836,259 5,435,537 FINANCE CHARGES Interest on long-term debt 1,134,638 1,209,665 Other interest expense 336,059 78,578 Total finance charges 1,470,697 1,288,243 Net operating margins 2,365,562 4,147,294 NON-OPERATING MARGINS Investment income 44,737 44,044 Non-operating margins—other 2,245,142 774,939 Gain on disposition of property 73,434 16,834 Other capital credits 437,799 482,869 Total non-operating margins 2,801,112 1,318,686 Net margins 5,166,674 5,465,980 OTHER COMPREHENSIVE INCOME Reclassification adjustment for amounts included in the computation of net periodic pension cost(See Note 8— Post-Retirement Benefit Obligation) (4,226) 726,431 Total comprehensive income $ 5,162,448 $ 6,192,411 See accompanying notes. 5 Northern Lights, Inc. Statements of Changes in Patronage Capital and Other Equities Years Ended December 31, 2023 and 2022 2023 2022 Memberships $ 163,377 $ 163,377 Patronage capital Balance at January 1, 45,449,640 43,234,656 Transfer of current year operating margins 2,365,562 4,147,294 Retirements and unclaimed capital credits, net (2,455,857) (1,932,310) Balance at December 31, 45,359,345 45,449,640 Other equities Balance at January 1, 13,969,519 11,650,318 Retirements and unclaimed capital credits, net 335,481 274,084 Other comprehensive (loss)gain—ASC 715 adjustment (4,226) 726,431 Current year non-operating margins 2,801,112 1,318,686 Balance at December 31, 17,101,886 13,969,519 Total members' and other equity $ 62,624,608 $ 59,582,536 See accompanying notes. 6 Northern Lights, Inc. Statements of Cash Flows Years Ended December 31, 2023 and 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Comprehensive income $ 5,162,448 $ 6,192,411 Adjustments to reconcile comprehensive income to net cash from operating activities Depreciation expense 4,589,065 3,974,689 Other capital credits (437,799) (482,869) Other comprehensive gain—ASC 715 adjustment (4,226) (726,431) Change in assets and liabilities Accounts receivable 622,124 (715,993) Materials and supplies inventory (2,174,059) (497,391) Other current assets (1,814) 118,119 Deferred charges 55,822 60,000 Accounts payable (336,836) 269,663 Consumer deposits 11,523 (24,828) Other current and accrued liabilities 1,113,581 (70,040) Post-retirement benefit obligation (43,820) (60,941) Deferred credits (1,983) (8,828) Net cash from operating activities 8,554,026 8,027,561 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of utility plant (13,270,455) (12,928,664) Proceeds from aid to construction 6,292,138 6,545,912 Change in other assets and investments 329,786 347,942 Net cash from investing activities (6,648,531) (6,034,810) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under long-term debt 2,015,000 - Principal payments on long-term debt (2,961,545) (3,055,349) Borrowings under lines of credit 1,500,000 1,000,000 Payments on lines of credit - - Payment of retired patronage capital credits (2,455,857) (1,932,310) Changes in other equities 335,481 274,084 Net cash from financing activities (1,566,921) (3,713,575) NET CHANGE IN CASH AND CASH EQUIVALENTS 338,574 (1,720,824) CASH AND CASH EQUIVALENTS, beginning of year 798,999 2,519,823 CASH AND CASH EQUIVALENTS, end of year $ 1,137,573 $ 798,999 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest during the year $ 1,457,054 $ 1,335,627 See accompanying notes. 7 Northern Lights, Inc. Balance Sheets December 31, 2022 and 2021 2022 2021 ASSETS NONCURRENT ASSETS Net utility plant $ 85,931,369 $ 83,523,306 Right-of-Use Asset 55,433 - Other assets and investments 5,095,423 4,960,496 Total noncurrent assets 91,082,225 88,483,802 CURRENT ASSETS Cash and cash equivalents 798,999 2,519,823 Accounts receivable, net 5,394,071 4,678,078 Materials and supplies inventory 1,841,330 1,343,939 Other current assets 65,494 183,613 Total current assets 8,099,894 8,725,453 DEFERRED CHARGES 55,822 115,822 Total assets $ 99,237,941 $ 97,325,077 See accompanying notes. 3 Northern Lights, Inc. Balance Sheets Years Ended December 31, 2022 and 2021 2022 2021 MEMBERS' EQUITY AND LIABILITIES TOTAL MEMBERS'AND OTHER EQUITY $ 59,582,536 $ 55,048,351 LONG-TERM DEBT, less current maturities 25,478,983 28,440,528 LEASE LIABILITY, less current portion 14,225 - POST-RETIREMENT OBLIGATION 2,223,088 3,010,460 CURRENT LIABILITIES Long-term debt, due within one year 2,961,545 3,055,349 Lease liability, due within one year 41,208 - Lines of credit 3,500,000 2,500,000 Accounts payable 3,221,460 2,951,797 Consumer deposits 150,911 175,739 Other current and accrued liabilities 2,003,979 2,074,019 Total current liabilities 11,879,103 10,756,904 DEFERRED CREDITS 60,006 68,834 Total members' equity and liabilities $ 99,237,941 $ 97,325,077 See accompanying notes. 4 Northern Lights, Inc. Statements of Operations and Comprehensive Income Years Ended December 31, 2022 and 2021 2022 2021 OPERATING REVENUES $ 42,416,052 $ 38,072,567 OPERATING EXPENSES Cost of power 16,596,736 14,716,788 Power production expense 370,025 366,474 Transmission expense—maintenance 42,988 43,216 Distribution expense—operation 2,816,540 2,176,744 Distribution expense— maintenance 6,970,339 7,231,228 Consumer accounts expense 1,612,067 1,392,064 Sales expense 364,215 229,404 Administration and general expense 3,828,257 3,450,696 Depreciation expense 3,382,610 3,353,933 Tax expense 956,293 924,083 Other expense 40,445 57,809 Total operating expenses 36,980,515 33,942,439 Operating margins 5,435,537 4,130,128 FINANCE CHARGES Interest on long-term debt 1,209,665 1,313,351 Other interest expense 78,578 69,530 Total finance charges 1,288,243 1,382,881 Net operating margins 4,147,294 2,747,247 NON-OPERATING MARGINS Investment income 44,044 44,044 Non-operating margins—other 774,939 401,653 Gain on disposition of property 16,834 62,733 Other capital credits 482,869 384,905 Total non-operating margins 1,318,686 893,335 Net margins 5,465,980 3,640,582 OTHER COMPREHENSIVE INCOME Reclassification adjustment for amounts included in the computation of net periodic pension cost (See Note 8— Post-retirement Benefit Obligation) 726,431 38,737 Total comprehensive income $ 6,192,411 $ 3,679,319 See accompanying notes. 5 Northern Lights, Inc. Statements of Changes in Patronage Capital and Other Equities Years Ended December 31, 2022 and 2021 2022 2021 Memberships $ 163,377 $ 163,377 Patronage capital Balance at January 1, 43,234,656 42,270,523 Transfer of current year operating margins 4,147,294 2,747,247 Retirements and unclaimed capital credits, net (1,932,310) (1,783,114) Balance at December 31, 45,449,640 43,234,656 Other equities Balance at January 1, 11,650,318 10,299,270 Retirements and unclaimed capital credits, net 274,084 418,976 Other comprehensive gain—ASC 715 adjustment 726,431 38,737 Current year non-operating margins 1,318,686 893,335 Balance at December 31, 13,969,519 11,650,318 Total members' and other equity $ 59,582,536 $ 55,048,351 See accompanying notes. 6 Northern Lights, Inc. Statements of Cash Flows Years Ended December 31, 2022 and 2021 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Comprehensive income $ 6,192,411 $ 3,679,319 Adjustments to reconcile comprehensive income to net cash from operating activities Depreciation expense 3,974,689 3,918,669 Other capital credits (482,869) (384,905) Other comprehensive gain —ASC 715 adjustment (726,431) (38,737) Change in assets and liabilities Accounts receivable (715,993) (113,281) Materials and supplies inventory (497,391) (359,686) Other current assets 118,119 (94,749) Deferred charges 60,000 60,000 Accounts payable 269,663 933,540 Consumer deposits (24,828) (21,687) Other current and accrued liabilities (70,040) 171,060 Post-retirement benefit obligation (60,941) (35,819) Deferred credits (81828) 14,864 Net cash from operating activities 8,027,561 7,728,588 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of utility plant (12,928,664) (11,296,959) Proceeds from aid to construction 6,545,912 6,811,541 Change in other assets and investments 347,942 1,022,348 Net cash from investing activities (6,034,810) (3,463,070) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under long-term debt - 1,000,000 Principal payments on long-term debt (3,055,349) (2,882,758) Borrowings under lines of credit 1,000,000 - Payments on lines of credit - (1,000,000) Payment of retired patronage capital credits (1,932,310) (1,783,114) Changes in other equities 274,084 418,976 Net cash from financing activities (3,713,575) (4,246,896) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,720,824) 18,622 CASH AND CASH EQUIVALENTS, beginning of year 2,519,823 2,501,201 CASH AND CASH EQUIVALENTS, end of year $ 798,999 $ 2,519,823 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid for interest during the year $ 1,335,627 $ 1,388,107 See accompanying notes. 7 NORTHERN LIGHTS, INC. The power of local service Infrastructure and Vegetation Management Procedure Last Update: February 2026 Infrastructure &Vegetation Management Purpose: This document provides clear, concise direction for NLI crews and contractors performing infrastructure and vegetation inspection and field work. It focuses on wildfire risk reduction, safety, and required actions in the field. This document is a companion to NLI's Wildfire Mitigation Plan (WMP). 1 .0 Core Field Principles (Always Apply) • Work safely and prevent ignitions. • Maintain required clearances from energized conductors. • Identify and address wildfire hazards immediately. • Stop work and notify supervisor and dispatch if conditions are unsafe. • Document inspections, assessments and as-bunts accurately and timely. 2.0 Infrastructure — Field Inspection Checklist 2.1 Overhead Line Inspections Overhead line inspections shall be conducted in a manner consistent with the National Electrical Safety Code(NESC)and generally accepted electric utility inspection practices. Inspections are intended to identify conditions that may affect public safety, employee safety, system reliability,wildfire hazards or regulatory compliance. All inspections shall be documented using the approved Survey123 Line Inspection application. Each inspection record shall represent a single pole or structure as well as the attached conductor and shall include sufficient information to support condition assessment and corrective action planning. Inspection Scope Inspectors shall visually assess overhead facilities and associated components for conditions that may indicate deterioration, damage, improper installation, or unsafe operation, including conductors and attachments, hardware and assemblies, poles and structural elements, guying and anchoring systems, grounding components, associated electrical equipment, right-of-way conditions, and observable signs of abnormal electrical activity. All inspection findings, including condition assessments, priority classifications, and photographic documentation where applicable, shall be recorded using the approved Survey123 application, which serves as the system of record for overhead line inspection data and supporting documentation. 2 Documentation and Records Inspection results shall be recorded within the Survey123 application, including: • Geospatial location data • Standardized condition assessments • Priority classification • Photographic documentation at each pole The GIS Administrator shall maintain the inspection application and manage inspection data outputs, including geospatial layers, dashboards, and reports used for operational tracking and compliance support. Conditions Not Requiring Immediate Action Inspection findings shall be assigned a Priority Level at the time of inspection using the approved Survey123 application. Priority Levels include High-Fix ASAP, Medium-Not urgent but need scheduled, Low-Maintenance, and NA-All Good, and are used to indicate the relative urgency of corrective action based on observed conditions. Priority classifications and supporting documentation are displayed through an operational dashboard for tracking and oversight. Conditions not identified as high priority are addressed through the utility's routine maintenance scheduling process and then marked as work complete as well as the date completed on the original survey form. All inspection data is recorded in Survey123, which serves as the system of record for inspection data. Conditions Requiring Prompt Action Conditions that present an immediate safety concern or heightened risk shall receive prompt attention. Such conditions may include, but are not limited to: • Exposed energized components • Evidence of active electrical stress or overheating • Clearance issues involving vegetation or other obstructions • Structural failures or compromised supporting components Where conditions can be safely addressed at the time of inspection, corrective action should be taken. — Where immediate correction is not feasible, appropriate internal notification shall be made in accordance with established operating procedures. 3 2.2 Pole and Structure Hazards Poles and supporting structures shall be evaluated by authorized contract personnel for conditions that may present an immediate or potential safety hazard, including but not Limited to rot, fire damage, impact damage, or other signs of structural deterioration. Hazardous conditions identified by contract personnel shall be documented using the approved inspection application, including photographic evidence and assignment of an appropriate priority classification, and transmitted to the utility for review and action. When a condition is identified that may pose an immediate risk to personnel,the public, or system reliability, the contractor shall notify utility Dispatch or designated supervisory personnel in accordance with established emergency notification and escalation procedures. Where appropriate and authorized, temporary stabilization or protective measures may be implemented to mitigate risk until permanent corrective action can be completed by the utility or its designated contractor. Contractor and Utility Responsibilities • Contractor Responsibilities: Contract personnel are responsible for performing inspections, identifying and documenting observed conditions, capturing photographic evidence, assigning priority classifications, and providing timely notification of conditions requiring escalation. • Utility Responsibilities: The utility retains responsibility for review, prioritization, response coordination, and authorization of corrective actions, including permanent repairs, replacements, or additional mitigation measures. 4 3.0 Vegetation Management— Field Checklist Vegetation management activities shall be conducted in a manner consistent with National Electrical Safety Code(NESC) clearance intent and generally accepted utility vegetation management practices. Activities are intended to reduce the risk of vegetation- related outages, safety hazards, and access limitations. All vegetation observations and work activities shall be documented using Field Syte, which serves as the system used to manage field data, work assignments, and documentation. The GIS Administrator shall maintain the inspection application and manage inspection data outputs, including geospatial layers, dashboards, and reports used for operational tracking and compliance support. 3.1 Clearance Requirements Vegetation shall be managed to maintain appropriate clearances from overhead conductors and associated equipment, consistent with NESC intent under normal operating conditions. Vegetation that may reasonably be expected to encroach upon or contact conductors due to wind, sag, or growth shall be identified and addressed. Vegetation shaping or pruning may be performed as necessary to maintain clearances while supporting long-term system reliability. 3.2 Hazard Tree Identification A tree may be considered a hazard tree if it exhibits conditions that could reasonably result in contact with electrical facilities, including but not limited to: • Dead or declining condition • Leaning toward electricalfacilities • Structural defects or compromised root systems • Proximity such that failure could impact conductors or equipment Identified hazard trees shall be marked and documented within Field Syte. Vegetation-related hazards shall be reviewed by the Vegetation Manager, who is responsible for prioritization and assignment of mitigation work to authorized contracted tree crews in accordance with utility policy. 5 3.3 Right-of-Way Clearing and Mowing Woody vegetation within designated right-of-way limits shall be removed as necessary to support safe operation, access, and maintenance. Following tree removal, mowing or mastication may be performed where appropriate, or in areas where vegetation growth is minimal. Vegetation work shall be conducted in a manner that avoids leaving slash or debris that could create access limitations, safety concerns, or increased fire risk. 4.0 Elevated Fire Conditions (Red Flag/ Fire Restrictions) During elevated fire conditions: - Increase situational awareness -Watch for wind, low humidity, and high temperatures -Avoid activities that could cause sparks - Have fire tools and extinguishers available. - Follow any addition restrictions provided by NLI management or the local area jurisdictions. If fire restrictions are active: - Follow applicable work limits or work hour restrictions in place ("hoot owl") - Recloser and protection settings may be adjusted system-wide 5.0 Ignition or Fire Response If a fire or ignition occurs: 1. Ensure personal safety first. 2. Call 911 if fire is active, or have NLI Dispatch call 911 if cell phone coverage is not available. 3. Notify NLI Dispatch immediately. 4. If safe to do so, attempt to extinguish or prevent further spread of the fire until fire crews arrive onsite. 6 5. De-energize equipment or lines at your discretion or under direction from fire crews. 6.0 Contractor Expectations All contractors must: - Follow any fire or road restrictions in place for each county. - Stop work if unsafe conditions exist. - Report hazards immediately to NLI contact or NLI dispatch. - Coordinate with NLI before removing hazard trees. - Report job location to NLI dispatch or NLI field supervisor. 7.0 When to Stop Work Stop work and notify supervision if: -Weather conditions create ignition risk. - Unsafe clearances cannot be maintained. - Fire behavior or smoke threatens the work area. If it looks like a wildfire risk,treat it like one. 7 I 01 I1 11 r 01 11. y y • I Saskatchewan t NORTHERN LIGHTSLSERVICE AREA •I 1 c,eorge -. t 1 1 I ke f Edmonton 1 t ` • Idville69�S tNC Natiolal Forest Red Deer 1 Cabinet V 14, algary I . KamloopsCoeur d'Alene 1 1 Medicine Hatational Forest Kelowna ' � Lethbridge ' I I ; 1� 1 I 1 IN fi 1 1 LN - 1 � - 1 X' 1 t.: Spokane 3nington Montana , Helena _ • ' .-. 1> Kennewick 1 � .,�:� •� • — — _% ti ' `' Billings I Idaho ♦�", J I 1 . 1 v I 1 gon I 1 { �trt.• 1 - Boise , Idaho Falls 1 I Wyoming _ 1 I 1 I 1 I 1 I rSalt Lake City I 40 y �` Denver Nevada f• j..Ak� . Carson City '{ Utah �' Colorado NORTHERNLIGHTS _ THE •. . .. astlegar NORTHERN LIGHTS SERVICE AREA Bonnington c c Range _ r 0 eek 93 sun,nnt�t Creston A Canada ----------------- 7303 ft United States 7713 ft Colville Ko e National Forest I Res I c Salish Mountains 0 G d nal uge Kalispel Reservation O to ra 0 � o P Cabinet Cabinet 00 ountains Mountains 588 Kaniksu ' N 'onal Forest Selgirk Mouildains c u0 n rp ro r Thompson Post Falls Coeur d'Alene River State National Forest Forest 0 Spokane 90 bull 90 I onal I�� St Joe Saint Re Refuge Mountain ,�SR�er I I � Coeur d'Alene LS i Reservation Esri,CGIAR,USGS,Sources:Esri,TomTom,Garmin, FAO, NOAA, USGS, 0 5 10 20 Miles OpenStreetMap contributors,and the GIS User Community I I I I I I I Legend Northern Lights Service Area Boundary Map Northern Lights n N O R T H E R N L I G H T S 421 Chevy Street Conductor A 0Northern Lights Service THE POWER OF LOCAL SERVICE Sagle,Idaho 83860 Date:2/6/2026 Area Boundary 208-263-5141 Drawn By:WLargent EXHIBIT C COMPLIANCE MATRIX NLI Compliance Matrix Wildfire Standard of Care Act Requirements and Order No. 36774/WMP Guideline Requirements NLI WMP Details/Notes Geographical RiskAssessment(s) 6.0 Wildfire Risks & Risk model, map of risk I. C. § 61-1803(3)(a) Drivers areas. Preventative Actions & Programs 7.0 Wildfire Preventative Inspections,vegetation I. C. § 61-1803(3)(b) Strategies management, 7.3 Fuel&Vegetation technology, operational Management practices, community 7.4 Asset Inspection & outreach, system Response hardening, training. 7.5 Workforce Training 7.6 Relay& Recloser Practices 7.7 De-energization/ PSPS 8.0 Community Outreach and Public Awareness Community Outreach & Public 8.0 Community Member communication, Awareness Outreach and Public notifications and I. C. § 61-1803(3)(c) Awareness education. Government Outreach 5.3 Coordination with Coordination with service I. C. § 61-1803(3)(d) local Tribal entities area entities such as 5.4 Emergency Tribes and EM agencies. Management/Incident Provide notice to entities Response per I. C. § 61-1804(2). 8.1 Current Community Outreach and Public Awareness Program Method of Line Design 7.2 Design and Methods for new/planned I. C. § 61-1803(3)(e) Construction Standards lines, cost evaluation, 11.0 Cost Evaluations project selection, materials. Situational Awareness and 7.1 Weather Monitoring Systems and tools for Monitoring monitoring integration I. C. § 61-1803(3)(f) into operations. Infrastructure Inspection and 7.2 Design and Inspection of assets and Maintenance Construction Standards goals. 7.3 Fuel&Vegetation Management NLI Compliance Matrix Wildfire Standard of Care Act Requirements and Order No. 36774/WMP Guideline Requirements NLI WMP Details/Notes 7.4 Asset Inspection & Response De-Energization 7.6 Relay& Recloser Public safety power I. C. § 61-1803(3)(g)(ii) Practices shutoff. 7.7 De-energization/ PSPS 9.0 Restoration of Service Vegetation Management 7.3 Fuel&Vegetation Goals and standards of I. C. § 61-1803(3)(g)(iii) Management program. EXHIBIT D NOTICE TO INTERESTED PARTIES The power of local service [Recipient Name] [DATE] [Address] [City, State,Zip] Re: Notice of Filing of Wildfire Mitigation Plan (Idaho Code § 61-1805(2)) To Whom It May Concern: Northern Lights, Inc.provides this notice that it has filed its Wildfire Mitigation Plan in accordance with the Idaho Standard of Care Act,Idaho Code§ 61-1805(2),and related Idaho Public Utilities Commission ("Commission")requirements, as applicable. The Wildfire Mitigation Plan describes the Cooperative's operational practices and risk-reduction measures intended to mitigate wildfire risk associated with electric utility infrastructure. The filing includes information regarding Northern Lights' approach to wildfire risk identification, preventive strategies, inspection and maintenance practices, operational protocols,and other measures designed to support safe and reliable electric service. Copies of the filing area available for public review during regular business hours at the Commission's office located at 11331 W. Chinden Blvd. Building 8, Suite 201-A,Boise,ID 83714 or on the Commission's website at www.puc.idaho.gov. Click on the"ELECTRIC"icon, select"Open Cases,"and click on the relevant case number. Written comments regarding NLI's filing can be filed with the Commission; comments are required to be filed through the Commission's website or by email. To comment electronically,visit www.pub.idaho.gov and click on the"Case Comment Form"link on the upper left side of the page. Please reference the relevant case number when filling out the form. To comment using email,please send comments to the email addresses listed below and include the case number. Commenters are required to include their name and address. Filing Information • Date Filed: [ ] • Filed With: Idaho Public Utilities Commission • Case Number: [ ] Sincerely: Kristin Burge Engineering&Operations Manager Northern Lights, Inc. kristin.burge@nli.coop Ph: 208-255-5395 PO Box 269 • 421 Chevy Street Sagle, Idaho 83860-0269 • 800-326-9594 • www.nli.coop