20260731Application.pdf

' 11.
Avista Corp.
1411 East Mission,P.O. Box 3727 RECEIVED
Spokane,Washington 99220-0500 JULY 31, 2026
Telephone [phone] IDAHO PUBLIC
Toll Free 800-727-9170 UTILITIES COMMISSION
July 31, 2026
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, ID 83714
RE: Avista Utilities Request To Decrease Schedule 191, Energy Efficiency Rider
Adjustment
Dear Commission Secretary:
In accordance with Idaho Code §§ 61-501 and -507, and pursuant to Rule of Procedure
(RP) 53 (IDAPA 31.01.01.53),Avista Corporation, dba Avista Utilities("Avista"or"Company"),
hereby submits for electronic filing with the Idaho Public Utilities Commission ("Commission")
its Application requesting approval to decrease its natural gas tariff Schedule 191, "Energy
Efficiency Rider Adjustment"rates, effective November 1, 2026.
If you have any questions regarding this filing, please contact Jaime St Peter, Manager of
Regulatory Affairs, at(509) 495-7839 or Jaime.StPeter(a),avistacorp.com.
Sincerely,
Jaime St Peter
Regulatory Affairs Manager

I ANNIGLOGOVAC
2 ISB #13010
3 COUNSEL, LEGAL DEPARTMENT
4 AVISTA CORPORATION
5 P.O. BOX 3727, MSC 33
6 1411 EAST MISSION AVENUE
7 SPOKANE, WASHINGTON 99220-3727
8 TELEPHONE: [phone]
9 EMAIL: [e-mail]
10
11
12 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
13
14 )
15 IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-G-26-05
16 OF AVISTA CORPORATION FOR AN )
17 ORDER AUTHORIZING A DECREASE IN ) APPLICATION OF AVISTA
18 RATES CHARGED FOR NATURAL GAS ) CORPORATION FOR CHANGES
19 DEMAND SIDE MANAGEMENT PROGRAMS ) TO SCHEDULE 191
20 )
21
22 I. INTRODUCTION
23 Avista Corporation doing business as Avista Utilities ("Avista" or the "Company"), at
24 1411 East Mission Avenue, Spokane, Washington, pursuant to Idaho Code § 61-524 and
25 IDAPA 31.01.01, Rules of Procedure (RP), Rule 52 et. seq., of the Idaho Public Utilities
26 Commission(PUC or"Commission"),hereby respectfully requests that the Commission issue
27 an order authorizing the proposed revisions to the Company's Schedule 191, "Energy
28 Efficiency Rider Adjustment" (Rider). The purpose of these tariff revisions is to reduce the
29 rate charged to all customers in support of Avista's natural gas demand-side management
30 (DSM) programs to $0, in alignment with the Company's request to suspend its natural gas
31 programs in Case No. AVU-G-26-01 ("Suspension Request").' As a result of this filing
32 (hereafter"Application"), Avista's proposal would result in a reduction of overall natural gas
' Avista filed its original Suspension Request application on June 12,2026,with a subsequent revision filed on
July 21,2026;all references to"Suspension Request"herein are to that revised application.
Application of Avista Corporation Page 1
Case No. AVU-G-26-05

I revenues of approximately$1.4 million,or 1.6%;when combined with the additional Company
2 rate adjustments being requested concurrently,2 this equates to an overall rate decrease of
3 approximately 1.5% effective November 1, 2026.
4 Avista is a utility that provides service to approximately 423,000 retail electric
5 customers and 383,000 natural gas customers in a 30,000 square-mile service territory covering
6 portions of northern Idaho, eastern Washington, and Oregon. The largest community served
7 by Avista is Spokane, Washington, which is the location of its corporate headquarters. The
8 Company requests that all correspondence related to this Application be directed to:
9 Anni Glogovac Shawn Bonfield
10 Counsel for Regulatory Affairs Sr. Manager, Regulatory Policy & Strategy
11 Avista Corporation Avista Corporation
12 P.O. Box 3727 P.O. Box 3727
13 1411 E. Mission Avenue, MSC 27 1411 E. Mission Avenue, MSC 27
14 Spokane, Washington 99220-3727 Spokane, Washington 99220-3727
15 Telephone: [phone] Telephone: [phone]
16 E-mail: anni.glo og vac(a),avistacorp.com E-mail: shawn.bonfield(&,avistacorp.com
17
18 Avista Dockets (Electronic Only) - AvistaDockets(&,avistacorp.com
19
20 II. BACKGROUND
21 As provided in its Suspension Request, Avista proposed to temporarily suspend its
22 natural gas DSM programs effective December 31, 2026 due to a lack of cost-effectiveness
23 anticipated as a result of the latest natural gas avoided costs released as part of Avista's
24 Integrated Resource Plan (IRP) process. If approved as requested, the suspension of these
25 programs also warrants a parallel suspension of any associated rates being collected for
26 purposes of natural gas DSM program cost recovery. The Company informed its Energy
27 Efficiency Advisory Group(EEAG)of the final decision to file for suspension of its residential
z Filed simultaneously with this Application are Avista's natural gas rate adjustment requests for its Purchased
Gas Adjustment(PGA) Schedules 150 and 155,and Fixed Cost Adjustment(FCA)Schedule 175.
Application of Avista Corporation Page 2
Case No. AVU-G-26-05

I and commercial natural gas DSM programs, including the need to concurrently set its
2 associated DSM Rider collection rate to $0.00/therm for every rate class, on May 19, 2026.
3 Avista then filed with the Commission its Suspension Request with a proposed effective date
4 of September 1, 2026 to allow for adequate customer noticing regarding the impending
5 suspension of programs prior to their official pause at the end of 2026. In its Suspension
6 Request, the Company noted its intentions to decrease Schedule 191, as contained within this
7 Application, stating:
8 In alignment with these requested revisions to its Schedule 190 to suspend its
9 natural gas DSM programs, the Company will seek modifications to its DSM
10 Rider Schedule 191, to decrease the collection rate of the funds collected in
11 support of natural gas DSM programs to$0.00/therm for every rate class,during
12 the third quarter of 2026. To allow for more streamlined alignment of customer
13 noticing procedures (and therefore less confusion for customers), this rate
14 adjustment request is not being made concurrently with this Application, and
15 will instead be filed simultaneously with the annual rate adjustments for several
16 other tariffs, which Avista files each year with a requested November 1, 2026
17 effective date. These rate adjustments are anticipated to be filed no later than
18 July 31, 2026.3
19
20 This Application is being made in fulfillment of this intention.
21
22 IV. ANTICIPATED PROGRAM TRANSITION AND SUSPENSION COSTS
23 Avista's Suspension Request contains a proposal to manage outstanding contractual
24 obligations in addition to maintaining the Company's participation in the regional market
25 transformation efforts of the Northwest Energy Efficiency Alliance (NEEA) during the period
26 in which its other natural gas energy efficiency offerings are paused. Specifically,the Company
27 plans to honor all terms and conditions of contracts and agreements fully executed prior to
3 Suspension Request at 10:2-10.
Application of Avista Corporation Page 3
Case No. AVU-G-26-05

I December 31, 20264 and will maintain its commitment to funding NEEA, provided sufficient
2 Rider balances remain available, throughout the temporary suspension timeframe. To account
3 for costs associated with programs continuing through 2026,as well as ongoing NEEA funding
4 and the Limited Income Program in 2027, Avista has included projected expenditures in the
5 workpaper forecasts submitted with this Application.Monthly expenditures through the end of
6 2026 are expected to range from approximately $230,000 to $320,000, with a greater share of
7 these costs anticipated to occur later in the year. These estimates are based on recent year-end
8 expenditure trends in addition to an expected increase in customer participation resulting from
9 communications regarding the upcoming conclusion of these programs. A summary of the
10 projected program costs is provided below.
11 Site Specific Programs.
12 No Site-specific projects are currently contracted, however, the Company estimates a budget
13 of approximately $100,000 throughout 2027 to pay outstanding projects based on the current
14 project pipeline, as well as the potential throughput increase noted above. Contracts for site-
15 specific projects must be executed by December 31, 2026.
16
17 Residential Prescriptive Rebate Program
18 The Company estimates that incentive expenditures will be around$80,000 for the balance of
19 the year. The program will conclude on December 31, 2026; no expenditures are anticipated
20 in 2027.
21
22 Midstream Rebate Program
23 The Company estimates incentive expenditures to be around $460,000 through the remainder
24 of 2026. The program will conclude on December 31, 2026, however, as noted in its
25 Suspension Request, the Company will accept invoices for work completed in 2026 through
26 May 1, 2027.
27
28 NEEA
29 The NEEA contracted funding share for Avista is approximately $1.3 million for the 2025-
30 2029 funding cycle, or $270,010 annualized. Given the currently overfunded DSM Rider
31 balance,6 existing Schedule 191 funding is sufficient to cover NEEA annualized funding, and
32 that of the Limited Income Program as noted within this Application,through at least 2027. In
a For additional dates by which various documents should be postmarked for rebates,invoicing,etc.,refer to the
Suspension Request at 7:9-39 and 8:1-16.
5$1,350,048.
6 DSM Rider balance as of July 1 was nearly$2.1 million overfunded.
Application of Avista Corporation Page 4
Case No. AVU-G-26-05

I mid-2027, the Company will reassess whether continued participation in 2028 and 2029 is
2 warranted and feasible based on existing Rider balances at that time.
3 Limited Income Program
4 As noted within its Requested Suspension,7 Avista will honor its existing 2026-2027 contract
5 with the Community Action Partnership (CAP) of Lewiston for the delivery of natural gas
6 weatherization incentives. The Company estimates expenditures under this contract will total
7 approximately$400,000 for the 2027 program year. While this estimate is generally consistent
8 with 2025 program year spending levels, it exceeds spending from earlier years. Avista has
9 forecasted these costs at the higher end of the expected range to ensure that CAP retains the
10 flexibility to allocate assistance based on each household's individual needs,regardless of fuel
11 type.' The Company will closely monitor natural gas weatherization expenditures throughout
12 the 2027 program year to ensure sufficient Rider balance remains available. Should program
13 expenditures reduce available funding more quickly than anticipated,Avista will work closely
14 with CAP to communicate fund availability and manage program expectations. If adequate
15 funding is no longer available, the Company may exercise its contractual right to discontinue
16 the agreement.
17
18 V. SCHEDULE 191 RATE ADJUSTMENT
19 While the Rider balance was approximately$2.3 million overfunded as of July 1,2026,
20 it is expected to be nearly $1.2 million overfunded by November 1, the proposed date of
21 suspension of tariff collections. As projects and spending continue to wrap up in 2026, the
22 Company anticipates beginning 2027 with the tariff overfunded by approximately $935,000.
23 The Company is not proposing to return this balance to customers at this time, as the
24 proposed transition of Avista's natural gas DSM programs will still continue to incur costs
25 throughout 2026 and into 2027. For example, approximately $100,000 in expenditures
26 associated with site-specific projects contracted prior to the end of 2026 must still be funded
27 from the existing Rider balance in 2027. In addition, the Company expects to incur ongoing
28 Non-Incentive Utility Costs(NIUC), including labor,program administration, and Evaluation,
29 Measurement & Verification (EM&V) activities related to the 2026 program year, estimated
7 Requested Suspension at 8:12-16.
8 Avista's contract with CAP does not provide a specific budget for each fuel,instead allowing discretion to serve
each customer based on their individual household need; as such,the anticipated budget for the Limited Income
Program is an estimate rather than a formal allocation.
Application of Avista Corporation Page 5
Case No. AVU-G-26-05

I at approximately $73,653 annually. These costs are in addition to Avista's contracted NEEA
2 funding obligation and the estimated Limited Income Program expenditures discussed above,
3 should continuation of that program be approved. In total, Avista anticipates approximately
4 $890,763 in DSM Rider spending for 2027. The Company is not currently proposing any
5 spending for 2028.
6 Table No. 1 —DSM Rider Balance Forecast, 2027
7 Dni Rider 2027
Tariff Rider Starting Balance S (934,911)
8 NEEA S 270.010
Limited Income S 400.000
9 Planned Site-Specific S 100.000
Planned 14fidstreari 5 47,101
10 Administrative Costs $ 73,653
Total Annual Expenses $ 890.763
11 Tariff Rider End of Year Balance 44148
12 While the actual program elements of Avista's natural gas DSM efforts will not expire
13 until the end of 2026, as described within this Application, the Company is requesting to
14 suspend the collection of DSM Rider funds immediately upon the requested November 1,2026
15 effective date. This decision is based on the acknowledgement that, if suspension of the natural
16 gas program is approved by the Commission as requested, there is no further need to collect
17 funding from customers for programs that are sunsetting shortly thereafter, especially given
18 that the balance of the DSM Rider is already enough to cover any remaining expenditures.
19 Therefore, the Company requests to adjust its tariff rider rate to $0.00000 per therm, effective
20 November 1, 2026; workpapers in support of this rate decrease have been provided as an
21 attachment to this filing. As its natural gas DSM operations cease, Avista will continue to
22 collaborate with PUC Staff and its EEAG regarding any remaining Rider balance refunds due
23 to customers based upon actual natural gas DSM expenditures.
24
Application of Avista Corporation Page 6
Case No. AVU-G-26-05

I VI. CUSTOMER NOTIFICATION OF TARIFF REVISIONS
2 Notice to the public of the proposed revisions, pursuant to RP 125, will be given by
3 way of a customer notice, provided as an attachment to this filing, which will be included in
4 customer bills beginning in early August 2026 and run for a full billing cycle.Notice will also
5 be given simultaneously with the filing, by posting of the Application to the Company's
6 website at myavista.com and by a press release which will be issued on July 31, 2026.
7
8 VII. CONCLUSION AND REOUEST FOR RELIEF
9 In conclusion, Avista respectfully requests that the Commission approve its proposed
10 revisions to the Company's DSM Schedule 191, resulting in a reduction in rates and charges
11 to tariff Schedule 191, equating to an estimated annual revenue decrease of nearly 1.6%. The
12 proposed rate decrease will have an average monthly bill impact of approximately $1.03; this
13 means that the average residential customer using 66 therms of natural gas per month will see
14 a decrease from$59.28 to $58.24. Avista also requests this Application be processed under the
15 Commission's Modified Procedure Rules through the use of written comments.
16 Dated this 31 st day of July 2026.
17 AVISTA CORPORATION
18
19 By
20 Patrick Ehrbar
21 Director of Regulatory Affairs
22 Avista Corporation
Application of Avista Corporation Page 7
Case No. AVU-G-26-05