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HomeMy WebLinkAbout20260416Staff Comments.pdf RECEIVED April 16, 2026 JEFFREY R. LOLL IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83702 (208) 334-0357 IDAHO BAR NO. 11675 Attorney for the Commission Staff BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA ) CORPORATION'S APPLICATION FOR ) CASE NO. AVU-E-25-15 APPROVAL OF THE 2026 WILDFIRE ) MITIGATION PLAN ) COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Jeffrey R. Loll, Deputy Attorney General, submits the following comments. BACKGROUND On December 9, 2025, Avista Corporation ("Company") applied ("Application") to the Commission requesting an order approving its 2026 Wildfire Mitigation Plan ("2026 WMP") and processed under Modified Procedure. Application at 6-8. The Company previously had filed its 2020 WMP, 2023 WMP, and 2024 WMP with the Commission in various cases for review.I Additionally, the Company requested the Commission issue an errata to Order No. 36774 aligning the ordering language related to notices under Idaho Code § 61-1804(2) with Staff s recommendation in Case No. GNR-E-25-02. Application at 6. 1 Case No.AVU-E-20-05,2020 WMP filed as part of a request for a deferral for wildfire mitigation expenses. Case No.AVU-E-23-01,2023 WMP filed as part of a general rate case.Case No.AVU-E-25-01,2024 WMP filed as part of a general rate case. STAFF COMMENTS 1 APRIL 16, 2026 Lastly, the Company requested the Commission clarify within its order whether the Company can file its updated WMP for the Commission's annual review on or about November I"of each year going forward. Application at 8. On December 22, 2025, the Commission issued an errata to Order No. 36774 in Case No. GNR-E-25-02, aligning the ordering language to Staff s recommendation about notices. On January 6, 2026, the Commission issued a Notice of Application and Notice of Intervention Deadline. Order No. 36901. On January 29, 2026, the Commission granted intervention to PotlatchDeltic Forest Holdings, LLC. Order No. 36888. STAFF ANALYSIS Pursuant to Idaho Code § 61-1804, Staff reviewed the Company's 2026 WMP for compliance and believes it meets the requirements of the Wildfire Standard of Care Act ("WSCA"),Idaho Code § 61-1803, Order No. 36774 and the Commission approved WMP Guidelines, detailed in Exhibit No. 1 to that Order("Guidelines"). Staff recommends the Commission issue an order that(1) approves the Company's 2026 WMP, and(2) clarifies that the Company may file its updated WMP for the Commission's annual review on or about November I"of each year going forward. Although Staff believes that the Company's 2026 WMP meets the relevant requirements, Staff suggests the Company include additional items in future WMP filings as discussed below. I. 2026 Wildfire Mitigation Plan The Company requested the Commission issue an order approving its 2026 WMP, finding that it complies with Order No. 36774, as well as the WSCA, finding it meets the minimum requirements stated in Idaho Code § 61-1803; is consistent with public health, safety and welfare; is feasibly implemented; and adequately minimizes wildfire risk and proposes to respond to wildfires that do occur. Application at 8. Staff believes that the WMP substantially meets the requirements; however, Staff provides recommendations for future WMP filings. Cost Forecasts In its 2026 WMP, the Company inadvertently excluded certain operations and maintenance ("O&M") expenses for a few WMP categories in Appendix B. Company's STAFF COMMENTS 2 APRIL 16, 2026 Response to Staff Production Request No. 33. However, in its response, the Company provided an attachment containing corrected cost forecasts for Idaho and Washington. Id. For 2026 in Idaho, the Company forecasts $12.1 million in capital investments and$7.2 million for O&M expenses. Company's Response to Staff Production Request No. 33 Attachment A. The primary capital expenditures are the Company's Transmission Grid Hardening Program and the Wildfire Detection Cameras installations, forecasted to be $3.5 million and $2.5 million, respectively.Id. The Company's primary O&M expense is its Risk Tree Reduction program, forecasted to be $5.6 million.Id. For 2028 through 2030, the Company's forecasted capital expenditures in Idaho increased compared to 2026 and 2027. The increase is driven by planned investments in Distribution Grid Hardening located in high-risk areas. Id. The Company's forecasted O&M expenses for these years are relatively stable, with an average forecast of$7.9 million per year. Id. In Table No. 1 below, Staff summarized the Company's Idaho cost forecasts. Table 1: Idaho Cost Forecasts Summary $ in Category 2026 2027 2028 2029 2030 5-Year `OOOs Total Grid Hardening $ 4,200 $ 7,200 $15,400 $ 27,600 $ 20,900 $ 75,300 ID Operations and $ 3,460 $ 3,200 $ 2,600 $ 2,200 $ 2,200 $ 13,660 Capital EmergencyRes onse Situational $ 4,400 $ 2,500 $ 3,300 $ 1,500 $ 1,500 $ 13,200 Awareness TOTAL CAPITAL $ 12,060 $12,900 $21,300 $ 31,300 $ 24,600 $ 102,160 Grid Hardening $ 220 $ 220 $ 220 $ 220 $ 220 $ 1,100 Operations and $ 44 $ 44 $ 44 $ 44 $ 44 $ 220 ID Emergency Response Situaonal O&M Awareness $ 177 $ 221 $ 235 $ 260 $ 297 $ 1,190 Vegetation $6,784 $6,997 $ 7,123 $ 7,419 $ 7,445 $ 35,768 Management TOTAL O&M $ 7,225 $ 7,482 $ 7,622 $ 7,943 $ 8,006 $ 38,278 Internal Wildfire Mitigation Labor While reviewing the Company's cost forecasts, there was no line item that distinguished internal labor for wildfire mitigation. Staff believes a separate line item for internal wildfire STAFF COMMENTS 3 APRIL 16, 2026 mitigation labor should be included in each WMP to identify dedicated labor expenses related to wildfire mitigation and to allow Staff to track labor costs over time. The Commission previously ordered Idaho Power Company and Rocky Mountain Power to include internal labor in the cost forecasts in their WMPs. Order Nos. 37004 and 36405. Staff recommends the Commission direct the Company to add a line item to its cost forecasts for internal wildfire mitigation labor for future WMP filings to assist Staff in its review and to provide consistency in the WMPs of Idaho's investor owned utilities. Targets within WMP The Company identified targets to be met for each major cost category within its WMP: Grid Hardening, Operations and Emergency Response, Situational Awareness, and Vegetation Management. Company's Response to Staff Production Request No. 33 Attachment A. Staff appreciates the Company's identification of targets for each program; this information assisted Staff in evaluating the feasibility of the proposed 2026 WMP. Comparison to 2024 WMP The Company's 2024 WMP did not separate Idaho and Washington forecasted expenditures. 2024 WMP at 10. In that WMP, the Company provided its actual expenditures at year end for 2020 through 2023 and forecasted expenditures for 2024 through 2029. Id. In its 2024 WMP, the Company forecasted 2026 capital expenditures to be $60.3 million and O&M expenses to be $13.8 million. Id. The Company had planned to increase its strategic undergrounding and steel pole replacement investments. Overall, in Idaho and Washington for 2026, the Company forecasted$15.9 million less in capital expenditures and $4.2 million more in O&M expenses in the 2026 WMP compared to the 2024 WMP. II. Geographical Risk Assessments Idaho Code § 61-1803(3)(a) and the Guidelines require all WMPs to include a description of the Company's wildfire risk assessment and a map of identified risk areas. The Company's methodology incorporates a mathematically coherent framework for wildfire risk calculation, strong and diverse data inputs, statistical model validation, and development of STAFF COMMENTS 4 APRIL 16, 2026 practical wildland urban interface ("WUI")maps that are updated every 2 years. Staff believes the Company generally followed sound quantitative and qualitative modeling approaches to assess wildland fire risks to identify geographical areas with heightened risk. However, Staff believes the Company's Geographical Risk Assessment section in the WMP has several limitations, such as: (1) nomenclature issue with the WUI maps compared to industry standard, (2) lack of descriptive narrative details of data inputs and methodology for risk modeling within the 2026 WMP, and(3) lack of several input parameters in the risk assessment techniques used by the Company. These topics are discussed in detail in the following sections. WUI Risk Map The Company created a risk map that the Company refers to as the WUI map. However, there is a standard industry map of the WUI that is different than the Company's risk map, as it doesn't consider the same factors.2,3 To avoid confusion from industry-standard WUI maps, Staff encourages the Company to change the name of its risk map. Risk Model Staff observed that the Company's 2026 WMP does not include a detailed description of the wildfire risk assessment or model used to guide wildfire mitigation activities, in accordance with the WSCA and the Guidelines. The 2026 WMP only shows outputs from the modeling process. 2026 WMP at 9-10. In its comments, the Idaho Department of Lands ("IDL") highlights this issue and requests that the Company include a detailed narrative that covers data inputs and model methodology. IDL Comments at 1. Staff concurs with the IDL's recommendation. Staff was able to verify the data inputs and methodologies through the Company's response to Staff Production Request Nos. 15-17. Because this information is necessary for the approve the WMP, Staff recommends the Commission direct the Company to provide a detailed methodology description of the risk modeling and determination of geographical risk areas as a part of future WMP filings rather than through responses to discovery. 2 The Federal Emergency Management Agency("FEMA")defines WUI as the zone of transition between unoccupied land and human development.It is the line,area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels. 3 FEMA has publicly available WUI maps and data sets.https:Hgis-fema.hub.arc isg com/pages/wui-awareness. STAFF COMMENTS 5 APRIL 16, 2026 The 2026 WMP indicates that the Company is transitioning from its in-house Fire Risk Index("FRI") approach, as discussed in the Situational Awareness section, to a next-generation wildfire risk modeling technique with the vendor, Aerospace Technical Services ("ATS"). 2026 WMP at 12. The new modeling framework should incorporate asset fragility, ignition probability, consequence analysis, and economic impact modeling to quantify cost-benefit ratios of mitigation efforts. Staff believes the results of the next-generation risk modeling should be available in the Company's future WMPs. Risk Assessment Methodology Staff believes the Company's risk modeling contains several limitations, including: (1) missing and de-weighted driver of ignitions, (2)biased exposure to populated areas, and(3) limited asset and attachment visibility, which are discussed in the next section. Based on Staff s assessment, the Company should consider including the following in wildfire risk modeling and assessments in future WMP filings: 1. Take necessary steps to incorporate the following input parameters as a part of its new modeling approach, as applicable: a. Asset fragility& ignition probability (per asset/class); b. Third-party pole attachments; and c. Lightning density as a dynamic input. 2. Augment Housing Unit Impact("HUI") data with critical facility layers, including but not limited to healthcare organizations, airports, traffic controls, communication systems, etc. (2026 WMP at 75), vulnerable populations (2026 WMP at 49), and community recovery capacity to refine wildfire consequence modeling per Electric Power Research Institute ("BPRI") guidance on exposure and vulnerability integration;4,5 and 3. Publish confidence bands or uncertainty bands around risk scores (e.g.,by input variance) to inform decision risk and avoid false positives at the hexagonal or equivalent unit cell boundaries. 4 hLtps:Hrestservice.epri.com/publicdownload/000000003002022665/0/Product;Accessed: 04/02/2026. 5 hLtps://www.utilitydive.com/spons/epri-releases-study-of-wildfire-tools-to-proactively-assist-electric- compan/718770/;Accessed:04/02/2026. STAFF COMMENTS 6 APRIL 16, 2026 Key Strengths of the Company's Risk Modeling Methodology Staff identified the following strengths in the Company risk-assessment methodology: 1. Clear Mathematical Structure and Actionable Granularity—In its risk modeling, the Company defines: Wildfire Risk=Probability of Outage X Consequence. The fire spread calculation framework is based on a geospatial granularity of 200-meter hexagonal shapes across its territory, combining various inputs such as utility outage frequency, vegetation exposure, construction type (such as, overhead or underground) datasets including Wildland Hazard Potential ("WHP") and HUI from United States Forest Service ("USFS") and localized customer feedback to quantify wildfire consequence. Dynamic modifiers (e.g., wind speed, wind gusts, relative humidity, Severe Fire Danger Index or"SFDI" and fire preparedness) are updated every 2 hours and are applied to the sub-circuit sectionalizing devices, which enables precise Fire Safety Mode ("FSM") and Public Safety Power Shutoff ("PSPS") actions and targeted hardening. 2026 WMP at 11-12 and Company's Response to Staff Production Request Nos. 14-16. 2. Transparent Tiering and Planning—The Company has four statistically-defined wildfire tiers or WUIs based on the calculated geographical risk scores: Low, Moderate, Elevated, and Extreme. 2026 WMP at 10 and Company's Response to Staff Production Request No. 16. Staff believes it is a clear, reproducible way to identify and drive long-term mitigation efforts such as vegetation management, grid hardening, etc. 3. Calibration and Validation via Regressions and Back-casting The Company utilized simple regression methods to identify the appropriate input variables within its model for fire prediction and then created a back-casting model to compare predicted fire growth with historical wildfires. Company's Response to Staff Production Request No. 16. Gaps in the Company's Approach and Improvements to Consider Staff also identified the following gaps in the Company's risk-assessment methodology that should be addressed in future WMP filings. 1. Missing or de-weighted drivers of ignition: a. Historic outage and ignition—The Company's statistical analysis found that there is no significant correlation between historic outage data and utility ignitions -yet the STAFF COMMENTS 7 APRIL 16, 2026 risk modeling approach applied outage as one of the fundamental variables for calculating static risk. Company's Response to Staff Production Request No. 8. b. Lightning was not modeled—The Company monitors lightning strike maps but it does not incorporate lightning as an input to the risk calculation. Company's Response to Staff Production Request No. 8. According to the existing literature, lightning strikes are considered as one of the natural catalysts for both disrupting electrical network operations and igniting fires. Staff believes lightnings should be accounted for as a part of the risk modeling.6,7,8 2. Exposure bias to populated areas—The Company's strong reliance on HUI (potential number of homes lost) can underweight remote high fuel areas, such as the Idaho Panhandle National Forest. Company's Response to Staff Production Request No. 16. Staff believes that although such forest areas may have fewer existing structures due to the abundance of available fuel, fires could grow and cause large acreage to be burnt. Thus, Staff believes using lower bias towards high fuel areas may potentially mask the operational threat to transmission corridors in remote areas containing large amounts of fire fuel. 3. Limited asset/attachment visibility: a. Third-party pole attachments—Third-party pole attachments are not considered in risk modeling or wildfire risk mitigation efforts. The violations are addressed opportunistically, instead of through wildfire-specific inspection. Company's Response to Staff Production Request No. 19. b. Material failure analysis—The Company does not typically perform material failure analyses based on a routine. Such analyses are conducted by external experts for post-wildfire events with privileged and confidential results only when an initial investigation indicates a failure of the Company's facilities may have caused the event. Company's Response to Staff Production Request No. 9. Staff believes this approach limits data feedback to the modeling. 6 hLtps://www.mdpi.com/1999-4907/14/6/1146;Accessed: 04/06/2026. hLtps:Hdocs.nrel.gov/docs/fy23osti/80746.pdf;Accessed: 04/06/2026. 8 hLtps://www.sciencedirect.com/science/article/pii/S1474034620300392;Accessed: 04/06/2026. STAFF COMMENTS 8 APRIL 16, 2026 III. Preventative Actions and Programs Idaho Code § 61-1803(3)(b) and the Guidelines require all WMPs to include discussion of all the electric corporation's preventative actions and programs within the WMP. The Guidelines require that the following sections be included: (1)public outreach and engagement, (2) government outreach, (3) method of line design, (4) situational awareness and monitoring, (5) infrastructure inspection and maintenance, (6) de-energization and line operation practices, and (7)vegetation management. Staff discusses all the required preventative actions and programs in the sections below. The Guidelines also state that the Company may include other actions or programs, such as system hardening strategies, workforce preparedness, and pilot programs. Id. at 3-4. Staff discusses the Company's workforce preparedness in this section. Workforce Preparedness The Guidelines state that a WMP may include workforce P\preparedness as a preventative program. Guidelines at 3. A robust workforce demonstrates that personnel possess the skills and readiness to safely and effectively execute wildfire risk-reduction measures, such as situational awareness, emergency response actions, and safe line operations. This approach not only fulfills regulatory obligations but also strengthens operational resilience, reduces the likelihood of safety incidents during wildfire season, and supports timely, coordinated responses when conditions escalate. The Company described its workforce training in Appendix D. It also provided the training materials used and training completion data in responses to Staff Production Request Nos. 20 and 21. Based on its review of the WMP and Company's responses to Staff Production Requests, Staff believes the Company has met the requirements related to workforce preparedness in the Guidelines. Not all of the data Staff needed to review on this topic was included in the WMP. To assist Staff in future reviews, Staff recommends the Commission direct the Company to provide copies of all wildfire related training as attachments and provide a table identifying the role, number of people, training date (i.e., date, month, or quarter), and type of training completed in future WMP filings. STAFF COMMENTS 9 APRIL 16, 2026 IV. Public Outreach and Engagement Idaho Code § 61-1803(3)(c) and the Guidelines require each WMP to describe how the utility maintains community outreach and public awareness before, during, and after wildfire season. Staff believes the Company's WMP meets the public outreach and engagement requirement. The 2026 WMP describes the community outreach efforts to educate customers about wildfire risk and the Company's mitigation activities. The Company's community engagement includes: (1)Avista Connections, (2) customer e-mails, (3) PSPS notifications (e.g., awareness, preparedness, watch, warning execution, and restoration), (4)telephone town halls, (5)print advertisements, and (6) community meetings. 2026 WMP at 66-67. The Company indicated it will tailor communications using a mix of channels, including: e-mail, interactive voice response calls, press releases, social media, outage map updates, and direct outreach. Id. Staff believes the public outreach efforts are reasonable and consistent with Commission expectations. Consistent with Staff s discussion in the Government Outreach section below, the Company should consider identifying methods to expand public participation by partnering with federal, state, local, and tribal organizations. V. Government Outreach Idaho Code § 61-1803(3)(d) and the Guidelines require each WMP include a discussion of outreach and coordination with federal, state, tribal, and local officials and agencies regarding wildfire preparedness and emergency response planning. Staff believes the Company's 2026 WMP satisfies these requirements. The Company describes coordination efforts with federal, state, local, and tribal governments, including partner forums, tabletop exercises, and coordinated planning activities. 2026 WMP at 58-65. However, the section does not identify the parties involved in the outreach. The Company should consider specifying the federal, state, local, and tribal organizations with which it coordinates,preferably in a table or appendix, for clarity. Staff notes that public participation may increase when the Company partners with these organizations. Accordingly, the Company should continue to identify opportunities to expand and increase public participation. STAFF COMMENTS 10 APRIL 16, 2026 Additionally, the Company has partnered with different agencies to implement mitigation projects, called"Fuel Reduction Partnerships". 2026 WMP at 39-40 and Company's Response to PotlatchDeltic Production Request No. 27. Staff suggests the Company provide more detailed descriptions of each current and planned partnered project in future WMP filings. VI. Method of Line Design and Grid Hardening Idaho Code § 61-1803(3)(e) and the Guidelines require each WMP include a description of the Company's methods of line design for new lines and planned system upgrades. Staff believes the Company's approach for its grid hardening and line rebuilding is reasonable; however, Staff recommends the Company include additional details in the future. Similarly, Staff believes the undergrounding study and covered conductor study are reasonable justification for the pilot projects that Company has started; however, Staff has suggestions for the Company to consider in future WMP filings. Grid Hardening Staff assessed the Company's grid hardening efforts, such as the overhead to underground conversion study and the covered conductor study. Staff identified several areas for improvement, including lack of: (1) measurable targets for these projects, prioritized by wildfire risk zones, (2) information regarding potential mitigation effectiveness in wildfire risk reductions, and(3) comparative cost-benefit analysis ("CBA")between various grid hardening strategies. Based on its analysis, Staff suggests the Company consider incorporating the following in its grid hardening approach, in future WMP filings: 1. Provide short-term (3 to 5 year)measurable targets, such as, miles per year, feeders, WUI tier mix, material standards (e.g., tree-wire vs. spacer cable, insulation thickness, tie/arm hardware), and selection criteria derived from ATS (asset-level ignition probability, monetized consequence) output, based on the reasonableness of costs across the anticipated grid hardening efforts (e.g.,undergrounding, covered conductor, etc.). 2. Provide table(s) of mitigation effectiveness, including feeder-specific ignition risk reductions (e.g.,utility caused ignitions per 100 miles of line, pre- and post- undergrounding, etc.) and expected reliability improvement metrics (e.g., changes in STAFF COMMENTS 11 APRIL 16, 2026 service interruption duration and frequency indexes on converted or upgraded segments, restoration cost per event, etc.). 3. Provide comparative CBA for all grid hardening efforts, such as covered conductor, selective undergrounding of segments, etc., to provide a ranking of risk reductions based on benefit to cost ratios (`SCRs") across the total portfolio, not based only on one specific mitigation approach. 4. Include asset-level ignition likelihood, including asset fragility, spark potential, local weather, available fuel, etc., and then re-monetize the feeder-by-feeder grid-hardening approach. 5. Include stochastic scenario optimization in wildfire consequence modeling (fat-tailed events as outlined in Company's 2026 WMP Appendix C at 51) to produce annual feeder portfolios (undergrounding, covered conductor, vegetation management, etc.)by weighing critical infrastructure such as hospitals, airports, medically vulnerable customers, so the grid hardening approach prioritizes community resilience along with respective BCRs. Line Rebuilding The Company considers rebuilding lines with hardened designs as a wildfire mitigation strategy. 2026 WMP at 19. Staff believes that some transmission and distribution ("T&D") projects may be driven by factors other than wildfire mitigation, such as reliability, end of life replacement, or load growth. Staff recommends the Commission direct the Company to include a list of all T&D projects that includes wildfire mitigation as a driver, such as rebuild projects, overhead and undergrounding hardening projects, in future WMP filings. For each project, the Company should include the following: the name of the project, project type (transmission or distribution), primary driver(wildfire, future growth, end of useful life, etc.), respective wildfire risk zone tier, and an explanation of how the wildfire mitigation priority of the project affected the project design, cost, and timeline. Third-Party Undergrounding Study The Company hired a third-party vendor, Exponent, Inc. ("Exponent"), to conduct a study regarding overhead to underground conversion of a selected portion of its distribution STAFF COMMENTS 12 APRIL 16, 2026 lines. The analysis spans approximately 177 feeders (over 2,000 overhead distribution line miles) located in Washington and Idaho. 2026 WMP Appendix C at 43. The study provides a quantitative, monetized CBA of undergrounding overhead distribution feeders to reduce utility caused ignition risk, improve reliability with feeder-specific BCRs to identify feeders where undergrounding is economically justified. Staff believes the overall analytical and engineering modeling framework, data inputs, and benefit categories (e.g., reliability, vegetation management, etc.) included in the CBA study are generally reasonable. However, Staff identified the following limitations to the study. I. The fundamental premise of relying on outage history to justify conductor undergrounding as a wildfire mitigation measure is not sufficiently supported. The CBA study relies primarily on the Company's historic outages data(from January 2018 to June 2024), where the Company's own analysis discovered that there is no statistically significant correlation between historic outage data and historic utility- caused ignitions. See Company's Response to Staff Production Request No. 8. Staff identified this same limitation in its assessment of the Company's risk modeling approach, as noted in the "Gaps in the Company's Approach and Improvements to Consider" section. 2. The use of a fixed 19%Expected Annual Loss ("EAL") attribution for utility-caused wildfire losses is overly generalized. The Company does not have any utility-specific data related to wildfire losses that can be translated into dollars, so Exponent's study used EAL, defined by Federal Emergency Management Agency's ("FEMA"), as a parameter of wildfire losses. 2026 WMP Appendix C at 26-30. FEMA's EAL estimation(measured in US dollars) is based on a combination of exposure, annual frequency, and historical losses for 18 different natural hazards.9 As FEMA's EAL includes losses associated with both utility and non-utility-caused wildfires, Exponent used a fixed 19%EAL from the California State Auditor Report No. 2021-117, following the State of California's fire damages during the five year period from 2016 through 2020.10 2026 WMP Appendix Cat 28. 9 https://www.fema.gov/sites/default/files/documents/fema_national-risk-index_methodolog_y-hazards-overview.pdf; Accessed: 04/06/2026. 10 hlWs:Hinformation.auditor.ca. og v/reports/2021-117/index.html;Accessed: 04/06/2026. STAFF COMMENTS 13 APRIL 16, 2026 3. The study's CBA calculations are not based on asset-specific ignition probabilities. Applying a fixed share of EAL to utilities could over or underestimate the losses across the Company's wildfire risk zones, and it might not accurately reflect the actual cost-benefits for those pilot undergrounding project's feeders. 4. The outcome of the study is dependent on the Company's existing wildfire risk modeling results as outlined in the 2026 WMP. As the Company moves forward with a revised wildfire risk modeling approach,undergrounding recommendations based on the existing study's CBA may not properly align with the revised modeling risk zones in the Company's future WMP filings. 5. The undergrounding study does not provide comparative CBAs of undergrounding compared to other alternatives (such as covered conductor, overhead upgrades, etc.). Covered Conductor Pilot Study The Company conducted a covered conductor study on a 2.5-mile section of a distribution feeder near Springdale, Washington. 2026 WMP at 23. Being a pilot project, the current WMP does not provide any performance metrics, such as contact-fault reductions, outage minutes avoided,partial-discharge/thermal anomalies, connector failure rates, etc., nor does it demonstrate a quantified roadmap (e.g., miles per year, feeder selection criteria, material standards, and target risk reduction) regarding future implementation of such projects. As a result, Staff was unable to effectively benchmark the Company's progress against other major utilities who publish covered-conductor mileage and annual targets.11,12 Accordingly, the Company should consider providing short-term(3 to 5 year) measurable targets, and the projects selection criteria based on reasonableness of costs as a part of its future WMP filings. VII. Situational Awareness and Monitoring Idaho Code § 61-1803(3)(f) and the Guidelines require each WMP to discuss how the Company monitors weather conditions and wildfire risk. In 2026, the Company forecasts $4.4 million in capital expenditures and$175,000 in O&M for Idaho's Situational Awareness "h Vs://www.sce.com/outages-safety/wildfire-safety/wildfire-mitigation-efforts;Accessed: 04/07/2026. 'Z h!Ws://www.hawaiianelectric.com/safety-and-outages/wildfire-safety;Accessed: 04/07/2026. STAFF COMMENTS 14 APRIL 16, 2026 program. Company's Response to Staff Production Request No. 33 Attachment A. Over the five-year plan, the Company forecasts spending a total of$13.2 million in capital expenditures and$1.2 million in O&M for Idaho situational awareness. Id. Through its review, Staff believes the Company has substantially met the situational awareness and monitoring requirements of Idaho Code § 61-1803(f) and the Guidelines. However, Staff discusses below its recommendations regarding the level of detail to include for weather stations and wildfire detection cameras in the Company's future WMP filings. Fire Risk Index The Company performs dynamic risk assessments on its Fire Weather Dashboard, which refreshes every 2 hours and generates a FRI to provide system-wide alerts and to assist local operators in making informed decisions around fire and reliability risks. According to the Company's 2026 WMP, approximately 36% of its system-wide distribution system lies in elevated WUI risk areas where approximately 13% of Idaho's distribution lines fall within the elevated WUIs. 2026 WMP at 9. Weather Stations The Guidelines require the Company to identify the systems, tools, or external resources used to monitor weather, fire potential, or other situational awareness indicators. Guidelines at 6. The Company stated that it uses its WUI risk map and its Fire Weather Dashboard and plans to launch a new Fire Risk Model in 2026, to aid in its daily situational awareness. 2026 WMP at 11. The Company uses data from its own weather stations and other publicly available data in its Fire Weather Dashboard. While the Company briefly states that it integrates information from National Weather Service forecasts in its Fire Weather Dashboard, it did not explain how it utilizes other weather station data sources. In its response to Staff Production Request No. 5, the Company explained it utilized data accessed from Synoptic and MesoWest. Staff believes these details should be documented within the WMP for transparency and completeness; therefore, Staff recommends the Commission direct the Company to add a description of the publicly available data the Company uses as part of its situational awareness efforts. STAFF COMMENTS 15 APRIL 16, 2026 Wildfire Detection Cameras The Company has installed 15 wildfire detection cameras as of 2025, with five located in Idaho. 2026 WMP at 13. The Company has worked with IDL and the Washington Department of Natural Resources in the placement of cameras. 2026 WMP at 14. The camera network has been viewed over 54,000 times. Id. The Company has a target to add 26 cameras in Idaho by 2030 with ten installations anticipated in 2026. Company's Response to Staff Production Request No. 33 Attachment A. As the Company plans to expand its camera network, Staff suggests the Company include the same level of detail provided in its response to Staff Production Request No. 4 in future WMP filings. The additional details include: locations of focus, average cost of installation, timeframe for installation of cameras, cost-benefit analysis, and other alternatives considered. Additionally, Staff suggests the Company consider including metrics that track the number of ignitions detected, response time to ignitions, whether the Company responded, and whether its infrastructure was involved. VIII. Infrastructure Inspection and Maintenance Idaho Code § 61-1803(b),Idaho Code § 61-1803(g)(i), and the Guidelines require discussion of the frequency and standards for inspections of each type of electric infrastructure within areas of elevated wildfire risk and targets or goals to be achieved within the WMP. Clear inspection guidelines support timely inspections, maintenance, and emergency repairs, reducing reliability and safety risks during high fire danger conditions and in heightened wildfire risk zones. Based on its review of the WMP, Staff believes the Company has substantially met the applicable WSCA and Guidelines requirements. However, Staff has identified areas for improvement in the Company's future WMP filings. Inspection Details The Company describes inspections of wood poles, distribution lines, and transmission lines and provides a summary of distribution and transmission related outages. 2026 WMP at 23-26. However, the WMP does not provide a detailed explanation of what was inspected, which may be documented in a checklist or manual. Staff recommends the Commission direct STAFF COMMENTS 16 APRIL 16, 2026 the Company to include the details of all inspections, including what is inspected, in future WMP filings. Deficiency Backlog Monitoring The Company should identify deficiencies through its inspections and other related activities. Monitoring and correcting inspection deficiencies according to their respective priority is essential to protect safety and system reliability because a growing backlog signals that additional resources or process changes are needed to keep risks from escalating. The Company provided this data in response to Staff Production Request No. 48. Staff believes the Company should include the data below for the three previous years in future WMP filings for deficiencies related to infrastructure in heightened fire risk areas: 1. Number of deficiencies found by category type (P1, P2, etc.); 2. Number or percentage of deficiencies repaired by priority type; 3. Goal for remediation to be complete by category; 4. Average time to repair by category type; and 5. Pending repairs at year-end by category type. Quality Assurance Similarly, a Quality Assurance ("QA")program is essential because it verifies that completed corrective work truly resolves the identified issue, ensuring safety, reliability, and accountability in the utility's maintenance practices. Staff believes the Company should describe the QA process for each inspection program in future WMP filings. This should include what is selected for a QA audit(i.e., 100% in high fire risk areas, or 20% sample of all-service-area work), frequency of the audits (i.e., weekly, monthly), and process for addressing any items that failed to meet the Company's standards. IX. De-Energization and Line Operation Practices Idaho Code § 61-1803(b),Idaho Code § 61-1803(g)(ii), and the Guidelines require each WMP to include descriptions of de-energization protocols and line operation practices. Additionally, the WMP includes discussion of operational changes during heightened wildfire risk days or in high wildfire risk zones which includes line settings, restrictions to workforce STAFF COMMENTS 17 APRIL 16, 2026 practices, and changes to operational procedures. Operational changes during heightened wildfire risk days reduce the likelihood of ignition not only from electrical infrastructure but also from activities performed on that infrastructure, such as routine maintenance or emergency repairs. The Company describes its operations and emergency response in its 2026 WMP on pages 41 through 45. Staff believes the Company has adequately described its de-energization protocols and associated operational practices. However, Staff has identified areas for improvement in the Company's future WMP filings. Operation Practices The Company provides a description of how recloser settings are changed based on different Fires Safety Mode levels. 2026 WMP at 44. However, the Company does not provide similar summaries for its workforce practices and requirements. Staff suggests the Company consider providing similar summary tables or narratives in future WMP filings that describe how workforce practices and requirements change due to an increased Fire Risk Index and/or Fire Safety Mode, similar to how the Company summarized recloser setting changes with Fire Safety Mode on page 44. This should include descriptions of content of tail board meetings, required equipment for crews and vehicles, required activities such as dedicated fire watches, and restricted or prohibited work hours. Public Safety Power Shutoff Idaho Code § 61-1803(g)(ii) and the Guidelines specifically require the Company to describe its standards, criteria, and operational protocols for de-energization, including PSPS. Staff believes the Company's PSPS process, as described throughout the 2026 WMP, is reasonable and generally consistent with industry practices. The Company executed its first PSPS event in 2024, providing experience that can inform future PSPS execution. The Company should continue refining its PSPS protocols based on planned and executed events. Ongoing evaluation and improvement of PSPS procedures will be important to ensure that public safety objectives are met while minimizing customer disruption. Specifically, 2026 WMP states how the Company may stand up a Community Resource Center("CRC"). The Company should consider including documentation in its future STAFF COMMENTS 18 APRIL 16, 2026 WMP filings describing when and how a CRC is setup during PSPS events. Additionally, the Company should consider including additional details about resources available to call center agents within WMPs, as detailed in the Company's response to Staff Production Request No. 24. X. Vegetation Management Idaho Code § 61-1803(3)(g)(iii) and the Guidelines require each WMP to include a discussion of vegetation management and enhanced vegetation management for heightened fire risk areas. Staff reviewed the Company's routine and enhanced vegetation management practices described in the 2026 WMP. The Company estimates an average of$11.58 million in annual O&M expenses for these programs. 2026 WMP Appendix B at 2 and Company's Response to Staff Production Request No. 40. Staff believes the Company's routine and enhanced vegetation management programs are critical components of wildfire mitigation and that the Company has substantially met the WSCA and Guidelines requirements. However, Staff has identified areas of potential improvement in the Company's future WMP filings. Quality Assurance As stated above regarding an inspection QA program, Staff believes a QA program is essential, as it verifies that corrective work truly resolves the identified issue, ensuring safety, reliability, and accountability. The Company described its vegetation management QA process in its response to Staff Production Request No. 30; however, it was not included within its WMP. The Company should consider including a description of its vegetation management QA process in or as an attachment to future WMP filings. Wildfire Risk Specific Training and Certification The Company's vegetation management is done according to federal and industry standards that include ANSI A300,National Electrical Safety Code Section 21, Part 2, Rule 218, and North American Electric Reliability Corporation("NERC") Standards FAC-003-5 and FAC- 501-WECC-4. Each standard addresses clearance, tree/shrub conditions, how to safely and appropriately prune or remove vegetation, and maintain vegetation health. IDL's comments mention the standards do not address ignition potential or fire propagation perspectives of vegetation management such as "ladder" fuels, which allow STAFF COMMENTS 19 APRIL 16, 2026 wildfires to progress from the ground to the canopy. IDL recommended the Company consider adding standards specific to wildland fire to training and certification required for personnel doing vegetation management work. Staff agrees with IDL that the Company should consider adding standards specific to wildland fire, such as the International Society of Arboriculture's Wildfire Risk Reduction Qualification, to the qualification standards for personnel performing vegetation management. Vegetation Induced Fault, Outage and Ignition Data The Company's WMP describes system level transmission and distribution fault, outage, and ignition data over the last 3 plus years in its 2026 WMP on pages 25, 27, 36 and in Appendix E on pages 13 and 17. Appendix E was included in the 2026 WMP in compliance with Order No. 52980. Staff recommends that the Commission direct the Company to provide similar summary data in future WMP filings. In addition, the Company should consider providing this data at the line and feeder level, if that level of granularity is possible, with the existing data the Company currently captures. XI. Other WMP Recommendations Filing Date The Company requested to file its annual WMP filing on or about November 1 of each year. Staff recommends that the Commission direct the Company to file its annual WMP on or about November 1 of each year. Cost-Benefit Approach Idaho Code § 61-1804(b) requires the Commission to consider the feasibility of the plan and the cost of its implementation. In Order Nos. 36774 and 36882, the Commission directed the Company to include a cost-benefit analysis within its WMPs and provided guidance on the information necessary to support its analysis. The Company stated that it is developing a comprehensive wildfire risk modeling decision support tool. 2026 WMP at 12. The tool is intended to assist in evaluating risk at the asset level and to inform cost-benefit analyses for mitigation strategies. Id. The Company indicates the tool will provide two key analyses: (1) a benefit calculation(averted wildfire risk STAFF COMMENTS 20 APRIL 16, 2026 costs as baseline risk less post-mitigation risk) and(2) a cost-benefit ratio comparing the monetized benefit to mitigation costs. See Company's Response to Staff Production Request No. 35. The tool remains under development and is expected to begin producing results in 2026. 2026 WMP at 12. While benefits may not always be quantified solely in monetary terms, Staff believes the Company should apply a consistent, transparent, and repeatable methodology across projects. Such consistency is necessary to evaluate whether projects are prioritized using comparable criteria. Additionally, when qualitative benefits are applied, the Company should define what they are and the efficacy of mitigating wildfire risk. The Company should include a clear description of the wildfire risk modeling tool in future WMP filings, including key factors and assumptions. The Company should also consider identifying conditions when it deviates from the model's output, including its cost-benefit analysis. Additionally, the Company should consider quantifying the risk reduction associated with specific infrastructure mitigation measures. Although Staff reviewed the forecasted capital and O&M expenditures that were inadvertently omitted from the WMP, approval of the WMP does not guarantee approval of cost recovery. The prudence and recovery of WMP-related capital expenditures and O&M expenses will be evaluated in a future rate proceeding. Grants The 2026 WMP did not mention grants that the Company was awarded or applied for. In its response to Staff Production Request No. 32, the Company provided some information of three grants the Company applied for as part of its wildfire mitigation efforts, none of which the Company was awarded as of January 2026. Id. Staff believes this information is necessary to be part of a WMP,because grant funding may mitigate potential increased wildfire mitigation costs to ratepayers. Additionally, because the Commission must consider the cost implementation of WMP expenditures, this information could aid in the Commission's review of the cost and feasibility of the Company's planned actions. Staff recommends the Commission direct the Company to provide details of all funding alternatives and sources pursued within future WMPs. STAFF COMMENTS 21 APRIL 16, 2026 Metrics The 2026 WMP does not describe the metrics the Company will use for its wildfire mitigation efforts, operations, and projects. In response to Staff Production Request No. 1, the Company provided a list of specific metrics that will be used to evaluate the effectiveness of the WMP programs. Staff believes these metrics and the associated data are valuable and should be incorporated into the WMP to track progress, demonstrate the plan's feasibility, and evaluate the extent to which it reduces wildfire. Therefore, Staff recommends the Commission direct the Company include all metrics used for the WMP within each respective sections of future WMP filings and provide the data in a format that can easily be tracked across WMP filings. Specifically for the inspections and vegetation management programs, there are industry- standard metrics that may be beneficial to track reliability as the Company implements its WMP. These include the System Average Interruption Duration Index ("SAIDI"),13 System Average Interruption Frequency Index("SAIFI"),14 Customer Average Interruption Duration Index ("CAIDI"),15 and Momentary Average Interruption Frequency Index("MAIFI"). 16 These metrics allow utilities to benchmark reliability performance over time, identify poor-performing circuits to prioritize investment, and assess the effectiveness of vegetation management, protection schemes and system maintenance and hardening. Accordingly, Staff believes the Company should consider tracking and reporting the last three years of these metrics at the system and circuit levels in future WMP filings. Idaho Requirements Crosswalk The Guidelines require the Company to provide a section in its WMP that describes how the Company addressed each of the Commission's orders and Staff s recommendations. Guidelines at 8. In Appendix A, the Company provided a crosswalk of the WMP and the WSCA, however it did not include all of the Commission ordered requirements. In future WMP filings, Staff suggests the Company include all the Commission ordered components in its " SAIDI represents the total number of minutes of interruption the average customer experiences. 14 SAIFI represents the average number of times a customer experiences an outage during the year. 15 CAIDI is the average number of minutes it takes to restore non-momentary electric interruptions. 16 MAIFI is the average number of momentary interruptions that a customer would experience during a given period (typically a year). STAFF COMMENTS 22 APRIL 16, 2026 Appendix A, including the following: the Order No. 36774 (especially the Guidelines), Order No. 36929, and any other Commission-ordered requirements. This would help track all the required components of WMPs and explain how the Company addresses each. XIL Coordination with IDL Idaho Code § 61-1804(3)requires the Commission to consult with the State Forester at IDL, specifically regarding vegetation management, reduction of wildfire fuels, and other duties of the state forester under Title 38, Idaho Code. On December 19, 2025, IDL submitted a letter stating it would not intervene in this case, unless IDL found it necessary. On January 26, 2026, Staff met with the Company and IDL to discuss the Company's WMP, specifically to discuss the Company's wildfire risk model and vegetation management. On January 29, 2026, Staff met with IDL to discuss IDL's desired participation in the case. Staff and IDL agreed to include IDL on meetings with the Company. On February 13, 2026, Staff met with the Company and IDL to clarify the Company's responses to production requests. On March 13, 2026, IDL filed its comments and recommendations to the Company. IDL expressed concerns with (1) the Company's risk model descriptions within the WMP, (2) the cost-benefit analysis approach, (3)the need to clarify the Company's actions for internal and external wildfire events, (4)the need for the Company's fair market value approach to be defined, (5) the Company's vegetation management not addressing wildland fire related issues, and(6) the Company's integration with county fire planning groups. IDL comments at 2-3. Staff believes the recommendations laid out within IDL's comments are reasonable and support the recommendations. Public Comments As of April 14, 2026, two public comments were filed, both of which were filed by IDL. On December 19, 2025, IDL commented it had received notice of the Company's WMP and noted it would not formally intervene. On March 13, 2026, IDL provided several recommendations for the Company's future WMP filings, as described above. STAFF COMMENTS 23 APRIL 16, 2026 STAFF RECOMMENDATION Staff recommends the Commission issue an order that: 1. Approves the Company's 2026 Wildfire Mitigation Plan; and 2. Allows the Company to file future annual Wildfire Mitigation Plans on or about November 1"of each year. For future WMP filings, Staff recommends the Commission direct the Company to: 1. Add a line item in its cost forecasts for internal wildfire mitigation labor; 2. Provide copies of all wildfire related training in or as attachments and provide a table identifying the role, number of people, training date (i.e., date, month, or quarter), and type of training completed; 3. Add a detailed description of the risk modeling methodology and determination of geographical risk areas; 4. Include a list of all T&D projects that includes wildfire mitigation as a driver within WMPs, such as rebuild projects and grid hardening projects, that includes the following: project name,project type (transmission or distribution),primary driver(wildfire, future growth, end of useful life, etc.), respective wildfire risk zone tier, an explanation of how the wildfire mitigation priority of the project affected the project design, cost, and timeline; 5. Add a description on the publicly available data the Company uses as part of its situational awareness efforts; 6. Include the details of all inspections the Company conducts, including what is inspected; 7. Continue providing similar summary data of the Company's transmission and distribution fault, outage, and ignition data within WMPs; 8. Provide details of all funding alternatives and sources pursued within the WMP; and 9. Include all metrics used for the WMP within each respective sections and provide the data in a format that can easily be tracked across WMP filings. STAFF COMMENTS 24 APRIL 16, 2026 Respectfully submitted this 16th day of April 2026. ZV Jeffrey R. Loll Deputy Attorney General Technical Staff. Kimberly Loskot, Karla Ducharme, Shubhra Deb Paul, and Ray McArthur I:\Utility\UMISC\COMMENTS\AVU-E-25-15 Comments.docx STAFF COMMENTS 25 APRIL 16, 2026 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 161h DAY OF APRIL 2026, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN CASE NO. AVU-E-25-15, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: ANNI GLOGOVAC ELIZABETH ANDREWS COUNSEL FOR REGULATORY SR. MGR., REVENUE REQUIREMENTS AFFAIRS AVISTA CORPORATION AVISTA CORPORATION PO BOX 3727 PO BOX 3727 SPOKANE WA 99220-3727 SPOKANE WA 99220-3727 E-mail: liz.andrews&avistacorp.com E-mail: anni.glo og vac(cavistacorp.com avistadocketskavistacorp.com Potlatch Deltic Forest Holdings, LLC: PETER J. RICHARDSON RICHARDSON ADAMS, PLLC 515 N. 271h STREET BOISE, ID 83702 E-mail: petergrichardsonadams.com MICHELE TYLER, ESQ. WADE SEMELISS BRIAN SCHLECT, ESQ. ANNA TORMA PotlatchDeltic Forest Holdings, LLC 601 W. FIRST AVE, SUITE 1600 SPOKANE, WA 99201 E-mail: michele. . ler(4potlatchdeltic.com wade.semeli ss(&,potlatchdeltic.com brian.schlect&potlatchdeltic.com anna.torma(&,potlatchdeltic.com PATRICIA JORDA , SECRETARY CERTIFICATE OF SERVICE