20260220Final_Order_No_36942.pdf

Office of the Secretary
Service Date
February 20,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-25-16
CORPORATION AND THE REGENTS OF )
THE UNIVERSITY OF IDAHO'S JOINT )
PETITION FOR THE APPROVAL OF A ) ORDER NO. 36942
POWER PURCHASE AGREEMENT )
On December 9,2025,Avista Corporation("Company")and The Regents of the University
of Idaho ("University") (collectively "Petitioners") jointly petitioned the Idaho Public Utilities
Commission ("Commission") requesting approval of the Power Purchase Agreement ("PPA")
between the Company and Regents for its 132.32 kilowatt("kW") solar facility.
On January 2, 2026, the Commission issued a Notice of Petition and Notice of Modified
Procedure, establishing a deadline for public and Commission Staff("Staff') comments, and a
deadline for the Company to file reply comments. Order No. 36899. No public comments were
received.
Based on our review of the record,the Commission now issues this Final Order approving
the PPA and finding that the Company's payments to the University for energy purchases from
the qualified facility ("QF") under the PPA are prudently incurred expenses for ratemaking
purposes.
THE PETITION
The University owns and operates a 132.32 kW solar generation facility located in
Moscow, Idaho ("Facility") that is a QF pursuant to the Public Utility Regulatory Policies Act of
1978 ("PURPA") and is interconnected to the Company's electrical system pursuant to an
interconnection agreement. Petition at 2. The Parties stated that the proposed PPA would replace
the expiring PPA between the Parties for the Facility, as amended by the First and Second
Amended and Restated PPA ("Original PPA"), and approved by the Commission in Order Nos.
35440 and 36139.Id. at 3.
The Parties stated that the proposed PPA is substantially the same as the Original PPA,
with minor modifications, specifically the addition of language to address modifications to the
ORDER NO. 36942 1

Facility.Id. at 4. The Parties also stated that the proposed PPA would be for a ten-year period from
the effective date. Id.
STAFF COMMENTS
Staff evaluated the proposed avoided cost rates, the provision governing the allocation of
renewable energy credits ("RECs"), and Section 9.6 (Modification) of the proposed PPA, and
recommended approval of the agreement. Staff Comments at 2. The Parties proposed to apply the
same avoided cost methodology used in the Original PPA, using 85% of the PowerDex hourly
Mid-Columbia index ("Mid-C Index")prices. Id. Staff found this approach reasonable, observing
that pricing as-available energy from QFs at 85% of a non-firm market index has been a
longstanding practice. Id.
The Parties further proposed to divide RECs equally under the PPA,mirroring the structure
in the Original PPA. Id. Because the agreement did not utilize either published avoided cost rates
or Integrated Resource Plan-based avoided cost rates, Staff concluded that the allocation of RECs
was a matter left to the Parties' discretion. Id.
Finally, Staff examined Section 9.6 (Modification), which addresses potential changes to
the Facility, and determined that the provision was consistent with Order No. 35705.Id. Based on
its review, Staff recommended that the Commission approve the proposed PPA and find that the
Company's payments to the University for energy purchases from the QF under the agreement
constitute prudently incurred expenses for ratemaking purposes.Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Petition and the issues in this case
under Title 61 of the Idaho Code including,Idaho Code §§ 61-501 through 503. The Commission
is empowered to investigate rates, charges,rules,regulations,practices, and contracts of all public
utilities and to determine whether they are just, reasonable, preferential, discriminatory, or in
violation of any provisions of law, and to fix the same by order. Idaho Code §§ 61-501through
503.
In addition, the Commission has authority under PURPA and Federal Energy Regulatory
Commission ("FERC") regulations to set avoided costs, to order electric utilities to enter fixed-
term obligations for the purchase of energy and capacity from QFs, and to implement FERC rules.
The Commission may enter any final order consistent with its authority under Title 61 and PURPA.
ORDER NO. 36942 2

The Commission has reviewed the record, including the joint Petition, the proposed PPA,
Staff s Comments, and all other material submitted in this proceeding. Based upon this review,we
find it to be fair, just, and reasonable to approve the proposed PPA, as filed. Further, upon
consideration of the record, the Commission finds that all payments made by the Company to the
University pursuant to the PPA are prudently incurred and are appropriately recognized for
ratemaking purposes.
ORDER
IT IS HEREBY ORDERED that the PPA between the Company and the University is
approved, effective February 17, 2026.
IT IS FURTHER ORDERED that all payments made by the Company to the University
pursuant to the PPA shall be allowed as prudently incurred expenses for ratemaking purposes.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one(21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
ORDER NO. 36942 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20ffi day of
February, 2026.
EDWARD LODG , P IDENT
qJ R. HAMMOND JR., COMMISSIONER
14
DAYN HAKDIE, COMMISSIONER
ATTEST:
c o nchez
Commission Secretary
I:\Legal\ELECTRIC\AVU-E-25-16_Regents PPA\orders\AVUE2516_final_em.docx
ORDER NO. 36942 4