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HomeMy WebLinkAbout20260522TARIFF ADVICE NO. AVU-TAE-26-02.pdf E�Km� wi Avista Corp. RECEIVED 1411 East Mission P.O. Box 3727 MAY 22, 2026 Spokane. Washington 99220-0500 IDAHO PUBLIC Telephone 509-489-0500 AVU-TAE-26-02 UTILITIES COMMISSION Toll Free 800-727-9170 May 22, 2026 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, Idaho 83702-5983 Attention: Commission Secretary Advice No.26- -E RE: Tariff IPUC No.28, Electric Service - Enclosed for filing with the Commission is a copy of the following proposed tariff sheet: Twenty-fifth Revision Sheet 58 Canceling Twenty-fourth Revision Sheet 58 The purpose of this filing is to pass through a new 1% franchise fee imposed on gross revenue from the sale of electricity within the City of Culdesac as specified and authorized in Ordinance No. 26- 04. The fee is requested to become effective July 1, 2026 and will increase annual revenues by approximately$3,700. Electric customers in the City of Culdesac will see the following notice on their bills for one billing cycle beginning July 1 st: The City of Culdesac has imposed a new electric franchise fee of 1%effective July 1, 2026 per Ordinance No. 26-04. The Company requests that the Commission approve the proposed tariff changes included in this filing to be effective July 1, 2026. Enclosed is a copy of the pertinent city ordinance, as well as a "Notice of Tariff Change" which will be posted in the Company's Idaho offices and on the Company's website coincident with the date of this filing. Questions or comments regarding this filing should be directed to Athena Allen at (509) 495-8325. Sincerely, /s/Patrick Ehrbar Patrick D. Ehrbar Director of Regulatory Affairs Enclosures CITY OF CULDESAC, IDAHO ORDINANCE NO. 26-04 AN ORDINANCE GRANTING AVISTA CORPORATION, d/b/a AVISTA UTILI- TIES, A WASHINGTON CORPORATION, ITS SUCCESSORS AND ASSIGNS, THE NONEXCLUSIVE RIGHT, PRIVILEGE, AUTHORITY AND FRANCHISE TO LOCATE, CONSTRUCT, INSTALL, OWN, OPERATE, MAINTAIN, REPAIR, AND REPLACE POLES, ELEVATED AND UNDERGROUND WIRES, CABLES AND APPURTENANCES FOR THE TRANSMISSION, CONTROL AND DISTRI- BUTION OF ELECTRICITY WITHIN THE CITY. Avista Corporation dba Avista Utilities ("Avista"), a Washington Corporation authorized to do business within the state of Idaho, has filed with the City of Culdesac, State of Idaho (the"City") a written application for a renewal of its Franchise to locate, construct, operate and maintain poles, wires, underground cables and appurtenances over, under, along and across all of City's rights of way and public property in the City for the purposes of the transmission, control and distribution of electricity within the City; and the City has determined it is in the interest of persons and busi- nesses in this jurisdiction to have access to Avista's services; THEREFORE, THE CITY OF CULDESAC DOES ORDAIN: SECTION 1.0 DEFINITIONS For the purposes of this Franchise the following terms, phrases, words and their deriva- tions have the meaning given in this Section. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. Words not defined will be given their common and ordinary meaning. Avista: means Avista Corporation, dba Avista Utilities, a Washington corporation, and its respec- tive successors, assigns, agents and contractors. City: means the City of Culdesac, a municipal corporation of the State of Idaho, and its respective successors and assigns. Commission: means the Idaho Public Utilities Commission or such successor regulatory agency having jurisdiction over investor-owned public utilities in the State of Idaho. Days: means business days. City of Culdesac Electric Franchise Page 1 of 15 Rev February 4,2026 Effective Date: means the date of legal publication of this Ordinance, upon which the rights, duties and obligations of this Franchise will come into effect, and the date from which the time requirement for any notice, extension and/or renewal will be measured. Facilities: means, collectively, any and all electric transmission, and distribution systems and appurtenances owned by Avista, now and in the future in the Franchise Area, including but not limited to poles, towers, overhead and underground wires and cables, conduits, services, vaults, transformers, meters, meter-reading devices, fences, vehicular protection devices, communica- tion and control systems and other equipment, appliances, fixtures, attachments, appurtenances and other items necessary, convenient, or in any way appertaining to any and all of the foregoing for the purposes of transmission, distribution, and control of electricity, whether the same be lo- cated above or below ground. Franchise: means the grant by the City of rights, privileges and authority embodied in this Ordi- nance. Franchise Area: means the surface and space above and below all public property and rights- of-way owned or held by the City, including, without limitation, rights-of-way for: • public roads, streets, avenues, alleys, bridges, tunnels, easements, and highways that may hereafter be laid out, platted, dedicated, acquired or improved; • all City-owned utility easements dedicated for the placement and location of various utili- ties, provided such easements would permit Avista to fully exercise the rights granted un- der this Franchise within the area covered by the easement; and • any other specifically designated City-owned property. Maintenance, maintaining, or maintain: means, without limit, repairing, replacing, upgrading, examining, testing, self-inspecting, and removing Avista Facilities, vegetation management, dig- ging and excavating, and restoration of affected Right-of-way surfaces. Parties: means City and Avista collectively. Party: means either City or Avista individually. Person: means a business entity or natural person. Right-of-way: means the surface of and the space along, above, and below any street, road, highway, freeway, bridge, tunnel, lane, sidewalk, alley, utility easement and/or Right-of-way now or hereafter held or administered by the City. State: means the State of Idaho. Tariff: means the rate schedules, rules, and regulations relating to utility service, filed with and approved by the Commission during the term of this Franchise in effect upon execution and throughout the term of this Franchise. City of Culdesac Electric Franchise Page 2 of 15 Rev February 4,2026 SECTION 2.0 GRANT OF FRANCHISE 2.1 Grant City hereby grants to Avista the right, power, privilege and authority to enter upon all roads, rights of way, streets, alleys, highways, public places or structures, lying within the Franchise Area to locate, construct, operate and maintain its Facilities for the purpose of controlling, transmitting and distributing electricity, as may be necessary to provide electric service. 2.2 Effective Date This Ordinance will be effective as of the date of approval, passage and publication as required by law. 2.3 Term The rights, privileges and Franchise granted to Avista will extend for a term of twenty-five (25) years from the Effective Date, and shall continue year-to-year thereafter, until it is otherwise re- newed for another twenty-five (25)year term, or terminated by either Party, with not less than one hundred and eighty (180) days prior written notice to the other Party. 2.4 Non-Exclusive Franchise This Franchise is not an exclusive Franchise. This Franchise shall not prohibit the City from grant- ing other franchises within the Franchise Area that do not interfere with Avista's rights under this Franchise. City may not, however, award an electric franchise to another party under more favor- able or less onerous terms than those of this Franchise without this Franchise being amended to reflect such more favorable or less onerous terms. 2.5 Notice of City's Intent to Compete with Avista In consideration of Avista's undertaking pursuant to this Franchise, the City agrees that in the event the City intends to engage in the business of providing Electric service during the life of this Franchise or any extension of this Franchise, in competition with Avista, the City will provide Avista with six (6) months' notice of such action. 2.6 Assignment of Franchise Avista shall have the right to assign its rights, benefits and privileges under this Franchise. Any assignee shall, within thirty (30) days of the date of any assignment, file written notice of the assignment with the City together with its written acceptance of all terms and conditions of this Franchise. As permitted by law and Commission regulation, Avista shall have the right, without notice to or consent of the City, to mortgage or hypothecate its rights, benefits and privileges in and under this Franchise as security for indebtednesss. 2.7 Franchise Taxes, Fees, Costs and Adopting a Franchise Fee City of Culdesac Electric Franchise Page 3 of 15 Rev February 4,2026 Avista shall pay all permitting, license fees, costs, or franchise fee which it might be required to pay in connection with the issuance, maintenance, existence, continuation, or use of this Fran- chise, to the extent permitted by State law or City ordinance now in effect or enacted during the term of this Franchise. Fees may be paid monthly or quarterly by Avista. To the extent that any Franchise fees or other costs are imposed on Avista, City shall impose equivalent charges, fees or costs upon any other franchisee in a comparable business or otherwise competing with Avista. A. By way of this Ordinance, the City Council has approved a one percent (1%) Franchise fee. In the event that a franchise fee change becomes effective during the term of this Franchise (per the process outlined in this ordinance), the City and Avista shall execute an addendum to incorporate such change into this Franchise no later than thirty (30) days after the effective date of the State law or City ordinance which formalizes the change. B. Subject to subsection (A) above, the City has the right to increase its Franchise fee up to three percent (3 %) by obtaining the approval of a majority of City voters pursuant to Idaho Code Section 50-329A. SECTION 3.0 AVISTA'S OPERATIONS AND MAINTENANCE 3.1 Compliance with Laws, Regulations, Codes and Standards In carrying out any authorized activities under the privileges granted by this Franchise, Avista shall meet accepted industry standards and codes and shall comply with all applicable laws, reg- ulations and ordinances of any governmental entity with jurisdiction over Avista's Facilities and operations in the Franchise Area. This includes all applicable, laws, regulations and ordinances existing as of the Effective Date or may be subsequently enacted by any governmental entity with jurisdiction over Avista's operations within the Franchise Area. The City shall have the right to make and enforce reasonable rules and regulations pertaining to the conduct of Avista's opera- tions within the Franchise Area. Prior to the adoption by the City of any new rule, procedure or policy affecting Avista's operations under the Franchise, the City shall provide Avista a written draft document for comment with a response period of not less than thirty (30) days. Service shall be supplied to the City and its inhabitants in accordance with Avista's rules and regulations and Tariffs currently or subsequently filed with and approved by the Commission. 3.2 Facility Location by Avista and Non-Interference Avista shall have the discretion to determine the placement of its Facilities as may be necessary to provide safe and reliable electric service, subject to the following non-interference require- ments. All construction, installation, repair or relocation of Avista's Facilities performed by Avista City of Culdesac Electric Franchise Page 4 of 15 Rev February 4,2026 in the Franchise Area will be done in such a manner as not to interfere with the existing construc- tion and maintenance of other utilities including drains, drainage ditches and structures, irrigation ditches and structures located therein, nor with the grading or improvement of the Franchise Area. 3.3 Facility Location Information Avista shall provide the City, upon the City's reasonable request, Facility location information in electronic or hard copy showing the location of its Facilities at specific locations within the Fran- chised Area, to the extent such information is reasonably available. Avista does not warrant the accuracy of any such Facility location information provided and, to the extent the location of Fa- cilities are shown, such Facilities may be shown in their approximate location. With respect to any excavations within the Franchise Area undertaken by or on behalf of Avista or the City, nothing stated in this Franchise is intended (nor shall be construed)to relieve either party of their respec- tive obligations arising under the State one-call law with respect to determining the location of existing underground utility facilities in the vicinity of such excavation, prior to commencing work. 3.4 Vegetation Management --Trimming/Removal of Trees State law requires electric utilities to comply with the National Electric Safety Code, including the guidance in the Code for the trimming or removal of vegetation interfering or potentially interfering with energized power lines. The right of Avista to maintain its Facilities and appurtenances under this Franchise shall accordingly include the right, as exercised in Avista's professional discretion, to utilize an integrated vegetation management program to minimize the likelihood that vegetation encroaching (either above or below the ground) on Avista's facilities can lead to power outages and other threats to public safety and welfare. Avista or its agents may, without recourse or pay- ment of compensation, inhibit the growth of, prune, or remove any trees and vegetation which overhangs or encroaches upon its Facilities and/or electric transmission and distribution corridors within the Franchise Area, whether such trees or vegetation originate within or outside of the Right-of-way. Nothing contained in this Section shall prevent Avista, when necessary from prun- ing or removing any trees which overhang the Franchise Area and may interfere with Avista's Facilities. 3.5 Right of Excavation For the purpose of implementing the privileges granted under this Franchise, and after any re- quired notification is made to the City, Avista is authorized to make any necessary excavations in, under and across the streets, alleys, roads, rights of way and public grounds within the Fran- chise Area. Such excavation shall be carried out with reasonable dispatch and with as little inter- ference with or inconvenience to the public as may be feasible. Avista shall remove all debris stemming from excavation and construction. The Right-of-way surface shall be restored by Avista to its original state of improvement after excavation, in accordance with applicable City and Avista specifications. City of Culdesac Electric Franchise Page 5 of 15 Rev February 4,2026 3.6 Emergency Work In the event of an emergency requiring immediate action by Avista to protect the public health and safety or for the protection of its Facilities, or the property of the City or other persons in the Franchise Area, Avista may immediately proceed with excavation or other Right-of-way work, with concurrent notice to the City to the extent possible. SECTION 4.0 RESERVATION OF CITY'S RIGHTS AND POWERS 4.1 Reservation of Right The City, in granting this Franchise, does not waive any rights which it may now have or may subsequently acquire with respect to road rights-of-way or other property of City under this Fran- chise, and this Franchise shall not be construed to deprive the City of any such powers, rights or privileges which it now has or may hereafter acquire to regulate the use of and to control the City's roads, rights of way and other public property covered by this Franchise. Nothing in the terms of this Franchise shall be construed or deemed to prevent the City from exercising at any time any power of eminent domain granted to it under the laws of this State. 4.2 Necessary Construction/Maintenance by City The construction, operation and maintenance of Avista's Facilities authorized by this Franchise shall not preclude the City, its agents or its contractors, from grading, excavating, or doing other necessary road work contiguous to Avista's Facilities; provided that Avista shall be given not less than ten (10) business days' notice of said work, except in events of emergency when there exists an unforeseen and substantial risk or threat to public health, safety, welfare, or waste of re- sources, in which case the City will make reasonable efforts to contact Avista prior to doing said work; and provided further that the City, its agents and contractors shall be liable for any damages, including any consequential damages to third parties, caused by said work to any Facilities be- longing to Avista. 4.3 Expansion of Avista's Facilities. Facilities in the City's Franchise Area that are incidental to the Franchise Area, or that have been, or are at any future time acquired, newly constructed, leased, or utilized in any manner by Avista shall be subject to all provisions of this Franchise. 4.4 Change of Boundaries of the City Any subsequent additions or modifications of the boundaries of the City, whether by annexation, consolidation, or otherwise, shall be subject to the provisions of this Franchise as to all such areas. The City shall notify Avista of the scope of any change of boundaries not less than thirty (30) days prior to such change becoming effective or in accordance with applicable state laws, and shall affirm, authorize and ratify all prior installations authorized by permits or other action not previously covered by this Franchise. City of Culdesac Electric Franchise Page 6 of 15 Rev February 4,2026 4.5 Removal of Abandoned Facilities During the Term of this Franchise, or upon a revocation or non-renewal of this Franchise, the City may direct Avista to remove designated abandoned Facilities from the Franchise Area at its own expense and as soon as practicable, but only where such abandoned Facilities constitute a demonstrated threat to public health and safety. Avista shall not be required to remove, or pay for the removal of facilities it has previously abandoned to another franchisee, or utility under a joint use agreement, or Person granted permission to access Avista's facilities. 4.6 Vacation of Properties by City If, at any time, the City shall vacate any road, right of way or other public property which is subject to rights granted by this Franchise, such vacation shall be subject to the reservation of a perpetual easement to Avista for the purpose of constructing, reconstructing, operating, repairing, upgrad- ing and maintaining Avista's Facilities on the affected property. The City shall, in its vacation pro- cedure, reserve and grant said easement to Avista for Avista's Facilities and shall also expressly prohibit any use of the vacated properties which will interfere with Avista's full enjoyment and use of said easement. Only upon the prior written consent of Avista, may the City vacate any road, right of way or other public property subject to rights granted by this Franchise without reservation of a perpetual easement for Avista. 4.7 Pole Attachments by City City shall be permitted, upon reasonable notice to Avista to attach its traffic control fire and police communications signal cables to Avista's poles in the Franchise Area, provided that the City signs and meets all conditions of a Joint Use Master License Agreement ("Joint Use Agreement") with Avista. Per the Joint Use Agreement,Avista will not charge a pole rental fee for City's non-revenue producing pole attachments that are dedicated for the public's benefit. All pole attachments by the City are at the City's own risk and must be attached in strict accordance with standard safety practices, codes and Avista specifications. If there is not sufficient space available on Avista's structures such structures may be changed, altered, or rearranged at the expense of the City so as to provide proper clearance and capacity for City facilities. Such City facilities shall be subject to removal or repositioning by Avista at the City's expense to the extent necessary for utility worker safety and the proper construction, maintenance, operation or repair of Avista's Facilities and appurtenances. City assumes all re- sponsibility for the installation and maintenance of City's facilities installed on Avista's Facilities. SECTION 5.0 RELOCATION OR CONVERSION OF AVISTA'S FACILITIES 5.1 Relocation of Facilities Requested by City City of Culdesac Electric Franchise Page 7 of 15 Rev February 4,2026 Upon request of the City, Avista shall relocate its Facilities as necessary within the Franchise Area or other City-owned property as specifically designated in design plans that are no less than sixty (60) percent complete by the City for such purpose. For purposes of this provision, all rea- sonable efforts shall be made by the City, with input from Avista, to minimize the impacts of po- tential relocation. The City shall provide Avista reasonable notice of any intended or expected requirement or request to relocate Avista's Facilities. Said notice shall not be less than ninety (90) calendar days prior to any such relocation and, depending on the circumstances, may be greater than one hundred twenty (120) calendar days if necessary to allow Avista sufficient time for relocation. In cases of emergency, or where not otherwise reasonably foreseeable by the City, the notice requirements in this Section may be shortened by discussion and agreement between the Parties. The City shall use reasonable efforts to cause any such relocation to be consistent with any applicable long-term development plan(s)of the City. If, at any time, the City shall cause or require the alteration or the improvement of any road, right of way or other public property which is subject to rights granted by this Franchise within the Franchise Area, Avista shall, upon written notice from the City change the location or readjust the elevation of its system and other Facilities so that the same shall not interfere with such work and so that such equipment and Facilities shall conform to such new grades or routes as may be established. In the event a relocation forces Avista off City's existing Public Right(s) of Way then the City shall accommodate such relocation by securing an acceptable, alternate location for utilities and re- moving any obstructions, including, without limitation, trees, vegetation, or other objects that may interfere with the installation, operation, repair, upgrade or maintenance of Avista's Facilities on the affected Property. If the City requires the subsequent relocation of any of Avista's Facilities within five (5)years from the date of relocation of such Facilities or installation of new Facilities, regardless of the cause for either the initial or subsequent relocation, the City shall bear the entire cost of such subsequent relocation. Avista agrees to relocate all Facilities promptly within a reasonable time. Upon notice from the City, the parties agree to meet and determine a reasonable relocation time, which shall not exceed the time normally needed for construction projects of the nature of the City's relocation request unless otherwise mutually agreed. Notwithstanding the above, Avista shall not be required to relocate facilities of other entities that were (i) granted access to Avista's Facilities through a Joint Use Agreement or (ii) abandoned to another franchisee. Such relocation of these types of facilities shall be in accordance with Section 5.2 below. This Section shall not apply to Facilities in place pursuant to private easement held by Avista, regardless of whether such Facilities are also located within the Franchise Area. In the event the City requests relocation of Facilities that are in place pursuant to an existing easement, said relo- cation shall be treated in the same manner as a relocation requested by third parties under Sec- tion 5.2, below, with the City bearing the expense of relocation. City of Culdesac Electric Franchise Page 8 of 15 Rev February 4,2026 5.2 Relocation of Facilities Requested by Third Parties City acknowledges that Avista is obligated to provide electric service and related line extension, relocation or conversion of Facilities for the benefit of its Customers and to require compensation for such services on a non-preferential basis in accordance with applicable Tariffs. If Facilities are to be relocated at the request of or for the primary benefit of a third party, the City shall not require Avista to relocate its Facilities until such time as a suitable location can be found and the third party has entered into an agreement to reimburse Avista for its reasonable costs of relocation. 5.3 Availability of Other Funds In the event federal, state or other funds are available in whole or in part for utility relocating purposes, the City agrees to use reasonable efforts to apply for such funds, provided such funds do not interfere with the City's right to obtain the same or similar funds, or otherwise create any expense or detriment to the City. The City may recover all costs, including internal costs, asso- ciated with obtaining such funds. 5.4 Temporary Relocation of Facilities Requested by Third Parties At the request of any Person holding a valid permit or other written permission from the City, and upon reasonable advance notice and payment by the permit holder of Avista's expenses of such temporary change, Avista will temporarily raise, lower or remove its Facilities as necessary to accommodate a permittee of the City desiring to move over-sized structures or equipment along or across the Right-of-Way in the Franchise Area. 5.5 Conversion of Electric Distribution Facilities City, subject to applicable laws, rules, regulations and tariffs, may request that Avista convert from above ground to below ground wires, for the distribution of electricity underground after joint re- view with Avista and mutual agreement that such installation is feasible, practical and required for the public interest and safety. The incremental cost of such conversion of existing Facilities shall be borne and paid by the City or other party requesting the same, subject to law and such rules, regulations, and Tariffs of the Commission. It is expressly agreed by both Parties that this Section 5.5 does not apply to any conversion of transmission (69kV or above) infrastructure. SECTION 6.0 INDEMNITY AND INSURANCE 6.1 Indemnification of City Avista agrees to defend and indemnify the City, its appointed and elected officers and employees or agents, from any and all liabilities, claims, causes of action, losses, damages and expenses, including costs and reasonable attorney's fees, that the City may sustain, incur, become liable for, or be required to pay, as a consequence of or arising from the negligent acts or omissions of City of Culdesac Electric Franchise Page 9 of 15 Rev February 4,2026 Avista, its officers, employees or agents in connection with Avista's obligations under this Fran- chise; provided, however, that this indemnification provision shall not apply to the extent that said liabilities, claims, damages and losses were caused by or result from the negligence of the City, elected officers and employees or agents. 6.2 Indemnification of Avista To the extent permitted by law, City agrees to defend and indemnify Avista, its officers and em- ployees, from any and all liabilities, claims, causes of action, losses, damages and expenses, including costs and reasonable attorney's fees, that Avista may sustain, incur, become liable for, or be required to pay, as a consequence of or arising from the negligent acts or omissions of the City, its appointed and elected officers and employees or agents in connection with City's obliga- tions under this Franchise; provided, however, that this indemnification provision shall not apply to the extent that said liabilities, claims, damages, losses and so forth were caused by or result from the negligence of Avista, its employees or agents. 6.3 Insurance Avista shall maintain for the duration of the Franchise, insurance, or evidence of self-insurance, for coverage terms and amounts set forth below: a) Comprehensive general liability insurance, on a per occurrence basis, with limits not less than: (i) $2,000,000 for bodily injury or death to each person; (ii) $2,000,000 for property damage resulting from any one accident; and (iii) $2,000,000 for all other types of liability; b) Automobile liability for owned, non-owned and hired vehicles with a limit of$2,000,000 for each person and $2,000,000 for each accident; c) Worker's compensation coverage in accordance with the applicable laws of the state of Idaho. SECTION 7.0 FRANCHISE DISPUTE RESOLUTION 7.1 Non-waiver Failure of a Party to declare any breach or default of this Franchise immediately upon the occur- rence thereof, or delay in taking any action in connection therewith, shall not waive such breach or default, but the Party shall have the right to declare any such breach or default at any time. Failure of a Party to declare one breach or default does not act as a waiver of the Party's right to declare another breach or default. In addition, the pursuit of any right or remedy by the City shall not prevent the City from thereafter declaring a revocation and forfeiture for breach of the condi- tions of the Franchise. 7.2 Dispute Resolution by the Parties Disputes regarding the interpretation or execution of the terms of this Franchise that cannot be resolved by Department counterparts representing the Parties, shall be submitted to the City's Attorney and an attorney representing Avista for resolution. If a mutually satisfactory or timely City of Culdesac Electric Franchise Page 10 of 15 Rev February 4,2026 resolution cannot then be reached by the above process, prior to resorting to a court of competent jurisdiction, the Parties shall submit the dispute to a non-binding alternate dispute resolution pro- cess agreed to by the Parties. 7.3 Right of Enforcement No provision of this Franchise shall be deemed to bar the right of the City or Avista to seek judicial relief from a violation of any provision of the Franchise to recover monetary damages for such violations by the other party or to seek enforcement of the other Party's obligations under this Franchise by means of specific performance, injunctive relief or any other remedy at law or in equity pursuant to Section 7.4. Any litigation between the City and Avista arising under or regard- ing this Franchise shall occur, if in the state courts, in a court of competent jurisdiction, and if in the federal courts, in the United States District Court for the District of Idaho. 7.4 Attorneys' Fees and Costs Each Party shall pay for its own attorneys' fees and costs incurred in any dispute resolution pro- cess or legal action arising out of the existence of this Franchise. SECTION 8.0 GENERAL PROVISIONS 8.1 Franchise as Contract, No Third Party Beneficiaries This Franchise is a contract between the Parties and binds and benefits the Parties and their respective successors and assigns. This Franchise does not and is not intended to confer any rights or remedies upon any persons, entities or beneficiaries other than the Parties. 8.2 Force Majeure In the event that Avista is delayed in or prevented from the performance of any of its obligations under the Franchise by circumstances beyond Avista's control (Force Majeure) including, without limitation, third party labor disputes, fire, explosion, flood, earthquake, power outage, acts of God, war or other hostilities and civil commotion, then Avista's performance shall be excused during the period of the Force majeure occurrence. Avista will use all commercially reasonable efforts to minimize the period of the disability due to the occurrence. Upon removal or termination of the occurrence Avista will promptly resume performance of the affected Franchise obligations in an orderly and expeditious manner. 8.3 Prior Franchises Superseded As of the Effective Date this Franchise shall supersede all prior electric franchises for the Fran- chise Area previously granted to Avista or its predecessors by City, and shall affirm, authorize and ratify all prior installations authorized by permits or other action not previously covered by franchise. Termination of the prior Franchise shall not, however, relieve the Parties from any obligations which accrued under said Franchise prior to its termination, including but not limited to, any outstanding indemnity, reimbursement or administrative fee payment obligations. City of Culdesac Electric Franchise Page 11 of 15 Rev February 4,2026 8.4 Severability The Franchise is granted pursuant to the laws of the State of Idaho relating to the granting of such rights and privileges by City. If any article, section, sentence, clause, or phrase of this Franchise is for any reason held illegal, invalid, or unconstitutional, such invalidity shall not affect the validity of the Franchise or any of the remaining portions. The invalidity of any portion of this Franchise shall not abate, reduce, or otherwise affect any obligation required of Avista. 8.5 Changes or Amendments Changes or amendments to this Franchise shall not be effective until lawfully adopted by the City and agreed to by Avista. 8.6 Supremacy and Governing Law This Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of Idaho. In the event of any conflict between this Franchise and any City ordinance, regulation or permit, the provisions of this Franchise shall control. In the event of a conflict between the provisions of this Franchise and Avista's applicable Tariff on file with the Commission, the Tariff shall control. 8.7 Headings The headings or titles in this Franchise are for the purpose of reference only and shall not in any way affect the interpretation or construction of this Franchise. 8.8 Acceptance of Franchise. Avista shall, within thirty (30) days after passage of this Ordinance, file with the City Clerk, its acceptance of the terms and conditions of this Franchise. 8.9 Abandonment or Suspension of Franchise Rights and Obligations Avista may at any time abandon the rights and authorities granted hereunder, provided that six (6) months'written notice of intention to abandon is given to City. In addition, pursuant to Section 8.6 and in the event a conflict exists between the terms of this Franchise and Avista's Tariff with the Commission that cannot be resolved, Avista may suspend or abandon the rights and obliga- tions of this Franchise upon reasonable notice to the City. 8.10 Franchise Effective Date The Effective Date of this Franchise shall be 20_, after passage, approval and legal publication of this ordinance as provided by law, and provided that it has been duly accepted by Avista as specified above. City of Culdesac Electric Franchise Page 12 of 15 Rev February 4,2026 City's Language Attesting to Approval and Passage of the Ordinance PASSED by the City Council on May 11 , 2026 ATTEST: City Clerk, City of Idesac APPROVED by me on �'`'�ti , 20 z . Mayor, City of Culdesac Date of Publication: 20_ City of Culdesac Electric Franchise Page 13 of 15 Rev February 4,202; Letter of Acceptance by Avista HONORABLE MAYOR AND CITY COUNCIL CITY OF CULDESAC COUNTY OF NEZ PIERCE, IDAHO IN RE: City of Culdesac Ordinance No. 26-04 "Granting a Franchise to Avista Corporation for the Construction, Operation and Maintenance of Facilities for the Transmission, Control and Distribution of Electricity within the City." Avista Corporation dba Avista Utilities, for itself, its successors and assigns, hereby accepts the terms and conditions of the Franchise Agreement contained in the subject Ordinance and files this written acceptance with the City of Culdesac. This acceptance is executed on May 15 , 2026 Avista Corporation dba Avista Utilities By: Heather Rosentrater President and CEO, Avista Corporation Copy Received for the City of Culdesac On: By: City Representative - Name City of Culdesac Electric Franchise Page 14 of 15 Rev February 4,2026 Electric Franchise Ordinance Summary for Publication NOTICE: CITY OF CULDESAC PROPOSED FRANCHISE ORDINANCE NO. 26-04 SUMMARY Ordinance No. 26-04 will grant Avista Corporation dba Avista Utilities a non-exclusive public utility franchise to locate, construct, install, own, maintain, repair, reconstruct, operate and use facilities within the City's public right of way [the Franchise Area] for the purposes of the transmission, control and distribution of electricity within the City for a term of 25 years. Avista agrees to meet accepted industry standards and conform with applicable federal and state laws, as well as the regulations of the appropriate state regulatory body with jurisdiction, in the conduct of its operations under the Franchise. The City reserves the right to make reasonable rules and regulations pertaining to the conduct of Avista's operations within the Franchise Area. Avista must not interfere with any existing facilities of other utilities. Avista is authorized to make necessary excavations within the Franchise Area; excavations must be carried out with reasonable dispatch, and the area restored, with as little interference to the public as may be reasonable. Avista must relocate its facilities in the franchise area at the City's request. Avista may operate a vegetation management program in connection with franchised activities. Provisions are made for informal dispute resolution. (Final Reading of Ordinance is anticipated to be held before the Culdesac City Council on 20 at x:xx pm in the City Council Chambers). City of Culdesac Electric Franchise Page 15 of 15 Rev February 4,2026 Twenty-fifthfourth Revision Sheet 58 Canceling I.P.U.C. No.28 Twenty-fourthth#d Revision Sheet 58 58 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 58 TAX ADJUSTMENT SCHEDULE - IDAHO The rate schedules of the Company for electric service furnished in Idaho do not include any portion of municipal occupation, business, excise or use of the streets, taxes, or charges. In order to reimburse the Company for such taxes or charges, amounts equivalent to such taxes or charges where now imposed, or which may hereafter be imposed, will be billed by the Company to its Customers as set forth below. APPLICABLE: To all charges for electric service rendered pursuant to tariff 28 within the jurisdiction imposing a tax or charge, as provided in Rule 3 of the Rules and Regulations included in this tariff. TAX ADJUSTMENT: The rates and charges named in this tariff shall be proportionately increased by an adjustment equivalent to the amount of the tax or charge imposed by the jurisdiction and effective as listed below: Idaho Municipality Ordinance or Resolution Date Ordinance Effective Charge* City of Clark Fork Ord. No. 268 May 1, 2017 1%franchise fee City of Coeur d'Alene Ord. No. 2517 July 1, 1993 5%franchise fee City of Culdesac Ord. No. 26-04 July 1, 2026 1%franchise fee City of Dalton Gardens Ord. No. 168 February 1, 2005 1%franchise fee City of Deary Ord. No.405 January 1, 2026 1%franchise fee City of Dover Ord. No. 54 October 1, 2000 1%franchise fee City of Elk River Ord. No. 209 February 5, 2018 1%franchise fee City of Fernan Lake Village Res No. 195 Ord. No. 166 March 1, 2024 1%franchise fee City of Grangeville Ord. No. 972 January 1, 2024 1%franchise fee City or Hayden Ord. 391 October 1, 2005 1%franchise fee City of Hayden Lake Ord. No. 148 June 1, 1998 1%franchise fee City of Kamiah Ord. No. 97-2 January 1, 1997 1%franchise fee City of Kendrick Ord. No. 739 January 1, 2013 1%franchise fee City of Kellogg Ord. No. 557 as amended by 644 March 1, 2026 3%franchise fee City of Kooskia Ord. No. 172 March 1, 2013 1%franchise fee City of Kootenai Ord. No. 113 August 1, 1996 1%franchise fee City of Lapwai Ord. No. 300 January 1, 2001 1%franchise fee City of Lewiston Ord. No.4256 January 1, 2000 1%franchise fee City of Moscow Ord. No.2005-34 April 1, 2006 3%franchise fee City of Mullan Ord. No. 310A May 1, 1997 1%franchise fee City of Oldtown Ord. No. 2010-2 June 1, 2010 1%franchise fee City of Orofino Ord. No. 707 January 11, 2002 3%franchise fee City of Osburn Ord. No. 234 June 1, 2001 1%franchise fee City of Pierce Res. No. 136 May 1, 1999 1%franchise fee City of Pinehurst Ord. No. 2022-239 July 1, 2022 1%franchise fee City of Ponderay Ord. No. 3-16 November 1, 1996 1%franchise fee City of Post Falls Res. No. 2002-17 June 1, 2002 1%franchise fee Issued May 22, 2026 'aRuary 28 2026 Effective July 1, 2026 MaFGh 1, 202 Issued by Avista Utilities By Patrick Ehrbar, Director of Regulatory Affairs Twenty-fifth Revision Sheet 58 Canceling I.P.U.C. No.28 Twenty-fourth Revision Sheet 58 58 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 58 TAX ADJUSTMENT SCHEDULE - IDAHO The rate schedules of the Company for electric service furnished in Idaho do not include any portion of municipal occupation, business, excise or use of the streets, taxes, or charges. In order to reimburse the Company for such taxes or charges, amounts equivalent to such taxes or charges where now imposed, or which may hereafter be imposed, will be billed by the Company to its Customers as set forth below. APPLICABLE: To all charges for electric service rendered pursuant to tariff 28 within the jurisdiction imposing a tax or charge, as provided in Rule 3 of the Rules and Regulations included in this tariff. TAX ADJUSTMENT: The rates and charges named in this tariff shall be proportionately increased by an adjustment equivalent to the amount of the tax or charge imposed by the jurisdiction and effective as listed below: Idaho Municipality Ordinance or Resolution Date Ordinance Effective Charge* City of Clark Fork Ord. No. 268 May 1, 2017 1%franchise fee City of Coeur d'Alene Ord. No. 2517 July 1, 1993 5%franchise fee City of Culdesac Ord. No. 26-04 July 1, 2026 1%franchise fee City of Dalton Gardens Ord. No. 168 February 1, 2005 1%franchise fee City of Deary Ord. No.405 January 1, 2026 1%franchise fee City of Dover Ord. No. 54 October 1, 2000 1%franchise fee City of Elk River Ord. No. 209 February 5, 2018 1%franchise fee City of Fernan Lake Village Res No. 195 Ord. No. 166 March 1, 2024 1%franchise fee City of Grangeville Ord. No. 972 January 1, 2024 1%franchise fee City or Hayden Ord. 391 October 1, 2005 1%franchise fee City of Hayden Lake Ord. No. 148 June 1, 1998 1%franchise fee City of Kamiah Ord. No. 97-2 January 1, 1997 1%franchise fee City of Kendrick Ord. No. 739 January 1, 2013 1%franchise fee City of Kellogg Ord. No. 557 as amended by 644 March 1, 2026 3%franchise fee City of Kooskia Ord. No. 172 March 1, 2013 1%franchise fee City of Kootenai Ord. No. 113 August 1, 1996 1%franchise fee City of Lapwai Ord. No. 300 January 1, 2001 1%franchise fee City of Lewiston Ord. No.4256 January 1, 2000 1%franchise fee City of Moscow Ord. No.2005-34 April 1, 2006 3%franchise fee City of Mullan Ord. No. 310A May 1, 1997 1%franchise fee City of Oldtown Ord. No. 2010-2 June 1, 2010 1%franchise fee City of Orofino Ord. No. 707 January 11, 2002 3%franchise fee City of Osburn Ord. No. 234 June 1, 2001 1%franchise fee City of Pierce Res. No. 136 May 1, 1999 1%franchise fee City of Pinehurst Ord. No. 2022-239 July 1, 2022 1%franchise fee City of Ponderay Ord. No. 3-16 November 1, 1996 1%franchise fee City of Post Falls Res. No. 2002-17 June 1, 2002 1%franchise fee Issued May 22, 2026 Effective July 1, 2026 Issued by Avista Utilities By Patrick Ehrbar, Director of Regulatory Affairs AVISTA CORPORATION DBA AVISTA UTILITIES NOTICE OF TARIFF CHANGE (Electric Service Only) ------------------------ Notice is hereby given that the "Sheet" listed below of Tariff IPUC No. 28, covering electric service, has been filed with the Idaho Public Utilities Commission in Boise, Idaho: Twenty-fifth Revision Sheet 58 Canceling Twenty-fourth Revision Sheet 58 The purpose of this filing is to pass through a new 1% franchise fee imposed on gross revenues from the sale of electricity to customers within the City of Culdesac as specified and authorized by Ordinance No. 26-04. The fee is requested to become effective July 1, 2026 and could increase annual revenues by as much as $3,700. Copies of the proposed tariff changes are available for inspection in the Company's offices and on the Company website at www.myavista.com/about-us/our-rates-and- tariffs/idaho-rate-requests. Issue Date: May 22, 2026 Keep Posted Until: September 1, 2026