20260818Notice_of_Application_Order_No_37141.pdf

Office of the Secretary
Service Date
August 18,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO. AVU-E-26-06
CORPORATION'S ELECTRIC FIXED COST )
ADJUSTMENT ANNUAL RATE FILING ) NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 37141
On July 31, 2026, Avista Corporation ("Company") applied to the Idaho Public Utilities
Commission ("Commission") requesting approval of the level of electric Fixed Cost Adjustment
Mechanism ("FCA") revenue deferred during the 12-month period from July 2025 through June
2026 and authorization of FCA rates for electric service from October 1,2026,through September
30, 2027 ("Application"). The Application proposes an increase to the surcharge rate for the
Residential Group and a change from a surcharge rate to a rebate rate for the Non-Residential
Group.Id. at 1-2.
With this Order we issue notice of the Company's Application and set public comment and
Company reply deadlines.
BACKGROUND
The FCA is a rate adjustment mechanism designed to separate the amount of energy a
utility sells and the revenue it collects to recover fixed costs, such as infrastructure and customer
service costs. These costs do not vary with energy use, output, or production and remain relatively
stable between rate cases. By separating utility revenues from customer energy usage, the FCA
removes the utility's incentive to increase sales to increase revenue and profits, thereby
encouraging energy conservation.
The Commission originally approved a three-year pilot program of the Company's FCA as
part of the approved settlement of the Company's 2015 rate case. Order No. 33437 at 10. The
parties to the Company's rate case agreed to review the program's effectiveness at the end of its
second full year, to ensure the program was functioning as intended. On June 15, 2018, the
Commission approved an addendum to the settlement that extended the term of the Company's
FCA pilot for an additional year. Order No. 34085. On December 13, 2019, the Commission
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 37141 1

authorized the Company to extend its FCA mechanism for both gas and electric customers through
March 31, 2025. Order No. 34502. On September 30, 2025, the Commission approved the
Company's deferrals for the Residential and Non-Residential Groups for the period of July 1,
2024, through June 30, 2025, and the Company's proposed tariff modifications to Schedule 75 of
a per kilowatt-hour ("kWh") FCA surcharge rate of 0.018¢ for the Residential Group, and a per
kWh FCA surcharge rate of 0.0580 for the Non-Residential Group, both with an effective date of
October 1, 2025. Order No. 36784 at 4.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represents that the FCA surcharge rate
for the Residential Group is proposed to increase from 0.0180 per kWh to 0.4050 per kWh which
represents a $5.3 million, or 3% increase to Schedule 1 customers, effective October 1, 2026.
Application at 1-2.
YOU ARE FURTHER NOTIFIED that the Company represents that the FCA surcharge
rate for the Non-Residential Group is proposed to decrease from 0.0580 per kWh to a rebate rate
of 0.0550 per kWh which represents a$1.3 million, or 1%decrease to Schedule 11, 12,21,22, 31,
and 32 customers, effective October 1, 2026. Application at 1-2.
YOU ARE FURTHER NOTIFIED that the Company states that the proposed increase to
the surcharge for residential customers is explained by lower monthly use-per-customer than the
use-per-customer that was embedded in retail rates for the test year ending June 30, 2024.Id. at 5-
6. The Company attributes the change in use to a warmer than average winter and higher
participation in the Company's Demand Side Management programs.Id. at 6.
YOU ARE FURTHER NOTIFIED that the Company states that the proposed rebate for
non-residential customers is explained by higher monthly use-per-customer in the test year ending
June 30, 2024.Id.
YOU ARE FURTHER NOTIFIED that the Company anticipates that a residential
customer using an average of 939 kWh per month would see their monthly bill increase $3.63 or
3%per month. Id. at 10.
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission's office. The Application is also available on the
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ORDER NO. 37141 2

Commission's website at www.puc.idaho.gov. Click on the `ELECTRIC" icon, select "Open
Cases," and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission's jurisdiction under Title 61 of the Idaho Code, and that all proceedings in this
matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000
et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to the Commission's Rules of Procedure 201-204, IDAPA 31.01.01.201-.204.
The Commission notes that Modified Procedure and written comments have proven to be an
effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments and explain why written comments alone are insufficient. Persons interested in filing
written comments, must do so by September 8, 2026. Comments must be filed through the
Commission's website or by e-mail unless computer access is unavailable. To comment
electronically, please access the Commission's website at www.puc.idaho.gov. Click the "Case
Comment Form" and complete the form using the case number as it appears on the front of this
document.
To file by e-mail,persons must e-mail the comments to the Commission Secretary and all
parties at the e-mail addresses listed below. Persons submitting a comment by e-mail must provide
their name, address, and the Case Number under which they are commenting. Persons submitting
a comment by e-mail also acknowledge that submitting a comment in an open case constitutes a
public record under Idaho Code § 74-101(13), and all information provided by such person is
available for public and media inspection.
If computer access is unavailable, then comments may be mailed to the Commission and
the Parties at the addresses below.Persons submitting a comment by mail must provide their name,
address, and the Case Number under which they are commenting. Persons submitting a comment
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ORDER NO. 37141 3

by mail also acknowledge that submitting a comment in an open case constitutes a public record
under Idaho Code§74-101(13),and all information provided by such person is available for public
and media inspection.
For the Idaho Public Utilities For the Company:
Commission:
Commission Secretary Anni Glogovac
Idaho Public Utilities Commission Counsel for Regulatory Affairs
P.O. Box 83720 Patrick Ehrbar
Boise, ID 83702-0074 Director of Regulatory Affairs
secretgaApuc.idaho.gov 1411 E. Mission Avenue, MSC 27
Spokane, Washington 99220
anni.glo og vac(ae,avistacorp.com
patrick.ehrbar&avistacorp.com
AvistaDockets(d),avistacorp.com
YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
September 15, 2026.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its final
order without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that this Application be processed under Modified Procedure.
Persons interested in submitting written comments must do so by September 8, 2026. The
Company must file any reply comments by September 15, 2026.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
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ORDER NO. 37141 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 18th day of
August 2026.
G
EDWARD LODGE, PR IDENT
J R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
do i a anchez
Commission Secretary
I:\Legal\ELECTRIC\A V U-E-26-06_FCA\orders\A V UE2606_ntc_app_mo d_em.do cx
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