20260806Amended Application.pdf

11
RECEIVED
August 06, 2026
Avista Corp. IDAHO PUBLIC
1411 East Mission P.O. Box 3727 UTILITIES COMMISSION
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
August 6, 2026
Commission Secretary
State of Idaho
Idaho Public Utilities Commission
11331 W. Chinden Blvd. Building 8, Suite 201-A
Boise, Idaho 83702-5983
RE: Case No. AVU-E-26-05
Power Cost Adjustment (PCA)Annual Rate Adjustment Amended Application Filing of
Avista Corporation
Dear Commission Secretary:
In consultation with Commission Staff, attached for electronic filing with the Commission is an
Amended Application to the annual Power Cost Adjustment Rate Filing which corrects several
verbiage descriptions on the originally filed Application.
The Company inadvertently stated that the change in the average customer bill resulted in a
decrease when in fact it should have stated an increase. In addition, several references to "rebate"
rates should have stated "surcharge". Within the attached Amended Application, the Company
has stricken the incorrect wording and underlined the replacement verbiage for clarity.
Please replace the originally filed Application with the Amended Application attached in this
filing.
Please direct any questions regarding this filing to Annette Brandon at
Annette.brandongavistacorp.com or(509)495-4324.
Sincerely,
/s/ Patrick EHrbar
Patrick D. Ehrbar
Director of Regulatory Affairs
Enclosures

ANNIGLOGOVAC
COUNSEL FOR REGULATORY AFFAIRS
AVISTA CORPORATION
1411 E. MISSION AVENUE
P.O. BOX 3727
SPOKANE, WASHINGTON 99220
PHONE: [phone]
[e-mail]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE POWER COST )
ADJUSTMENT (PCA)ANNUAL RATE ) CASE NO. AVU-E-26-05
ADJUSTMENT FILING OF AVISTA ) AMENDED APPLICATION
CORPORATION ) OF AVISTA CORPORATION
I. INTRODUCTION
1 In accordance with Idaho Code §61-502 and Idaho Public Utilities Commission
2 ("Commission") Rule of Procedure ("RP") 052, Avista Corporation, doing business as
3 Avista Utilities (hereinafter "Avista" or "Company"), at 1411 East Mission Avenue,
4 Spokane, Washington, respectfully files its Power Cost Adjustment (PCA) annual rate
5 adjustment filing in the above referenced case. The Company requests the Commission
6 issue an order approving the level of power costs deferred in the surcharge direction for
7 the period July 1, 2025 through June 30, 2026, and approving a PCA surcharge rate of
8 0.1570 per kilowatt-hour to be effective October 1,2026. The Company requests that this
9 filing be processed under the Commission's Modified Procedure Rules through the use
10 of written comments.
11 Avista is a utility that provides service to approximately 423,000 retail electric
12 customers and 383,000 natural gas customers in a 30,000 square-mile service territory
13 covering portions of northern Idaho, eastern Washington, and Oregon. The largest
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE I

I community served by Avista is Spokane, Washington, which is the location of its
2 corporate headquarters. The Company requests that all correspondence related to this
3 Application be directed to:
4 Anni Glogovac Annette Brandon
5 Counsel for Regulatory Affairs Strategic Initiatives Manager
6 Avista Corporation Avista Corporation
7 P.O. Box 3727 P.O. Box 3727
8 1411 E. Mission Avenue, MSC 27 1411 E. Mission Avenue, MSC 27
9 Spokane, Washington 99220-3727 Spokane, Washington 99220-3727
10 Telephone: [phone] Telephone: [phone]
11 E-mail: anni.glo ov�acaavistacorp.com annette.brandonaavistacorp.com
12
13 Avista Dockets (Electronic Only) -AvistaDockets ckavistacorp.com
14
15 II. BACKGROUND
16 Avista's PCA is used to track changes in revenues and costs associated with
17 variations in hydroelectric generation, secondary prices, thermal fuel costs, and changes
18 in power contract revenues and expenses. Avista's existing PCA methodology and
19 method of recovery were approved in Case No.AVU-E-07-01 by Order No. 30361, dated
20 June 29,2007. In that case,the Commission approved a change in the PCA methodology
21 from a "trigger and cap" mechanism to a single annual PCA rate adjustment filing
22 requirement.
23 The Commission also approved a change in the method of the PCA deferral rate
24 adjustment from a uniform percentage basis, to a uniform cents per kilowatt-hour basis,
25 effective with the October 1, 2007 PCA rate change. By Order No. 32206 in Case No.
26 GNR-E-10-03, dated March 15, 2011, the Commission modified the retail revenue credit
27 methodology and approved a Load Change Adjustment Rate(LCAR)based on the energy
28 classified portion of embedded production revenue requirement, effective April 1, 2011.
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE 2

I The Commission approved the following procedural schedule for administering the
2 annual PCA filings:
3 August 1: Company filing for prior July—June deferral period
4 September 1: Review and comments by Staff and other interested parties
5 October 1: Commission Order/effective date of PCA rate adjustment
6
7 The present PCA rebate was made effective on October 1,2025. On July 31,2025,
8 Avista filed its annual PCA rate adjustment for the period July 1, 2024-5, through June
9 30,20256,and requested a PCA rebate rate of 0.3010 per kilowatt-hour effective October
10 1,2025. The Commission approved that request in Case No.AVU-E-25-07,by Order No.
11 36777, dated September 29, 2025.
12 The proposed PCA rate adjustment of 0.157¢ per kilowatt-hour would surcharge
13 to customers approximately $14.6 million, or 4.2%, effective October 1, 2026. The
14 surcharge is primarily related to the expiration of the existing rebate rate and actual power
15 supply costs that were higher than the level of costs embedded in customer rates. These
16 higher costs were primarily related to a downward shift in market energy pricing which
17 had impacts throughout the portfolio but most directly to"Net Power Purchases Expense"
18 2) wind generation resources excluded from the authorized base for the September 2025
19 through August 2026 period and, 3) higher customer loads during several months of the
20 year.
21
22 III. DEFERRALS—JULY 1, 2025 THROUGH JUNE 30, 2026
23 The amount of power cost deferrals for the period July 1, 2025, through June 30,
24 2026, is shown in Table No. 1 below, as well as interest for the same period. Company
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE 3

I witness Mr. Holland's testimony provides an explanation of the factors causing the
2 deferral entries for the period. Company witness Ms. Brandon's testimony addresses the
3 deferral, Renewable Energy Credit Benefit, and interest amount.
4 Table No. 1 — Summary of Deferral Balance
5 Power Supply Deferrals(July 2025 - June 2026) $ 8,032,648
Energy Imbalance Market Operations and Maintenance Expense $ 194,495
6 Renewable Energy Credit Retirement Benefit $ (2,717,969)
Interest $ 56,428
7 Total Deferral Balance 5,565,602
8 Quarterly reports have been filed with the Commission regarding actual PCA
9 deferral entries to date.' An additional copy of those reports for the quarters of Q3 2025,
10 Q4 2025, Q1 2026 and Q2 2026 have been included with this filing and have also been
11 provided to Clearwater Paper Corporation and Idaho Forest Group.
12
13 IV. PROPOSED RATE TO BE EFFECTIVE OCTOBER 1, 2026
14 The Company is proposing a uniform cents per kilowatt-hour PCA surcharge rate
15 of 0.157¢ to be effective October 1, 2026 (from the present rebate rate of 0.3010 per
16 kilowatt-hour). See page 1 of Ms. Brandon's Exhibit No. AMB-1 for the calculation of
17 the proposed rate. Attached to this Application as Exhibit "A" is a copy of the proposed
18 tariff, Schedule 66, which contains the proposed PCA rate. Exhibit"A"also includes the
19 proposed changes to Schedule 66 in strike out/underline format. The proposed rate is
20 designed to surcharge rebate the following:
' In Case No. AVU-E-23-08,Order No. 35937,the Company was directed to submit PCA reports,which
must include the Power Transaction Register (PTR) and Gas Accounting Data Download (GADD) in
Staff s recommended file formats, to the Commission on a quarterly basis. The Company filed its first
quarterly report on October 13,2023,beginning with 3rd Quarter of 2023,which included the confidential
PTR and GADD reports for that quarter. Subsequent quarterly filings of the alike have been made to date.
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE 4

I Table No. 2 —Amortization Balance Calculation
Power Supply Deferrals &EIM(July 2025 - June 2026) $ 8,227,143
2 Renewable Energy Credit Retirement Benefit $ (2,717,969)
Interest $ 56,428
3 Total Deferral Balance $ 5,565,602
4
Unamortized Balance from Previous Deferrals(prior to July 1, 2025) $ (11,302,437)
5 Amortization July 2025 - June 2026 $ 8,705,513
Interest $ (354,457)
6 Total Remaining Amortization Balance $ (2,951,381)
7 PCA Year Ending June 30,2026 $ 2,614,221
8
Projected Amortization and Total Interest(July 2026-September 2026) $ 2,365,097
9
10 TOTAL BALANCE FOR AMORTIZATION $ 4,979,318
11 After applying the conversion factor related to commission fees and uncollectible
12 customer accounts to the "Total Balance for Amortization" shown above, the resulting
13 eft balance of $5,001,017 is divided by forecasted kilowatt-hours to derive the
14 proposed surcharge rebate rate of 0.1570 per kilowatt-hour.3
15 Since PCA rate changes are spread on a uniform cents per kilowatt-hour basis,the
16 resulting percentage increases vary by rate schedule. Page 1 of Ms. Brandon's
17 Exhibit No. AMB-1 shows the effect of the proposed PCA surcharge rebate by rate
18 schedule. The overall increase in revenue, after accounting for the expiration of the
19 existing rebate, and the new surcharge r-eba4e, is approximately $14.6 million or 4.2%.
20 The revenue impact by rate schedule is as follows:
z Power Supply Deferrals like item is combination of Power Supply Deferrals of $8,032,648 + EIM
Operations and Maintenance of$194,495 as shown in Table No. 1 for a total of$8,227,143
s Total Balance for Amortization$4,979,318 divided by conversion factor 0.995661 =$5,001,017.
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE 5

1
Schedule Percent change
2 Type of Service Number on Billed Revenue
Residential 1 3.6%
3 General Service 11,12 4.3%
Large General Service 21,22 3.9%
4 Extra Large General Service 25 6.6%
Clearwater 25P 7.9%
Pumping Service 31,32 3.5%
5 Street&Area Lights 41-49 1.0%
Total 4.2%
6
7 Residential customers using an average of 939 kilowatt-hours per month would see their
8 monthly bills increase deefease from $119.52 to $123.83, an increase decrease of$4.31
9 per month, or 3.6%. This bill impact does not consider the effects of other filings Avista
10 has made that will go into effect on October 1, 2026.
11
12 V. REQUEST FOR RELIEF
13 The Company requests that the Commission issue an order approving power costs
14 deferred for the period July 1, 2025 through June 30, 2026, and approving a PCA
15 surcharge rate of 0.1570 per kilowatt-hour to be effective October 1, 2026. Under the
16 Company's proposal, the PCA rate for all customers, including residential customers,
17 would increase from a rebate rate of 0.3010 per kilowatt-hour to a surcharge rate of
18 0.1570 per kilowatt-hour. The Company requests that the matter be processed under the
19 Commission's Modified Procedure rules through the use of written comments.
20 Dated at Spokane, Washington this 6th day of August 2026.
21 AVISTA CORPORATION
22 By:
23 Coun el for Regulatory Affairs
24 ISB #13010
AVISTA'S AMENDED PCA ANNUAL RATE ADJUSTMENT FILING PAGE 6