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Home My WebLink About20260616Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: CURTIS THADEN, COMMISSION STAFF JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL DATE: JUNE 16, 2026 RE: AVISTA UTILITIES TARIFF ADVICE NO. AVU-TAE-26-02 REVISION TO IPUC TARIFF NO. 28, SCHEDULE 58 (TAX ADJUSTMENT SCHEDULE—IDAHO); CASE NO. AVU-TAE-26-02. BACKGROUND On May 22,2026,Avista Corporation d/b/a Avista Utilities ("Company") submitted to the Idaho Public Utilities Commission("Commission") Tariff Advice No. AVU-TAE-26-02 to revise Schedule 58 (Tax Adjustment Schedule—Idaho) ("Schedule No. 58")to reflect a new one percent franchise fee imposed on gross revenue from the sale of electricity to customers within corporate limits of the City of Culdesac ("City"). Tariff Advice at 1. A copy of the proposed revision to Schedule 58 is attached. See Attachment A. Idaho Code § 50-329A allows cities to establish franchise fees assessed upon a public service provider up to one percent without consent of the public service provider or the approval of a majority of voters on the question at an election. Franchise fees up to three percent are allowed with"the consent of the public service provider or the approval of a majority of voters of the city voting on" the question at an election. Id. STAFF ANALYSIS The Company is requesting an effective date of July 1, 2026, and the increase will result in an annual revenue of$3,700. The new agreement will remain in effect for twenty-five (25) years from the effective date,unless amended in the manner set forth in Ordinance No. 26-04. The DECISION MEMORANDUM - I - JUNE 16, 2026 proposed franchise fee agreement was approved by the City on May 11,2026, and accepted by the Company on May 15, 2026. STAFF RECOMMENDATION Staff reviewed the proposed tariff change, the franchise fee agreement, and the franchise fee requirements of Idaho Code § 50-329A. Staff recommends that the Commission accept the Company's proposed revision to Schedule No. 58 as filed, effective July 1, 2026. COMMISSION DECISION Does the Commission wish to accept the Company's proposed revision to Schedule No. 58, as filed, effective July 1, 2026? Curtis Thaden Commission Staff I:\Utility\UDMEMOS\AVU-TAE-26-02 Decision Memo.docx DECISION MEMORANDUM - 2 - JUNE 16, 2026 ATTACHMENT A Case No. AVU-TAE-26-02 Decision Memo June 16, 2026 Twenty-fifthfoo#h 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