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Home My WebLink About20260908Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: KEVIN MAXWELL, COMMISSION STAFF KELSEA E. ROSS, DEPUTY ATTORNEY GENERAL DATE: SEPTEMBER 8, 2026 SUBJECT: IN THE MATTER OF AVISTA CORPORATION—TARIFF ADVICE— FRANCHISE FEE—PROPOSED REVISIONS TO SHEET 158—CITY OF BOVILL; CASE NO. AVU-TAG-26-02. On August 3, 2026, Avista Corporation d/b/a Avista Utilities ("Company") filed with the Idaho Public Utilities Commission("Commission")Tariff Advice No. AVU-TAG-26-02 to revise Schedule 158 (Tax Adjustment Schedule — Idaho) ("Schedule No. 158") to reflect a new one percent franchise fee imposed on gross revenue from the sale of natural gas to customers within the corporate limits of the City of Bovill ("City"). Tariff Advice at 1. A copy of the proposed revision to Schedule 158 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 Staff reviewed the proposed tariff change,the franchise fee agreement, City Ordinance No. 2026-02, and the franchise fee requirements of Idaho Code § 50-329A. The Company is requesting an effective date of October 1, 2026, and the increase will result in an annual revenue of$600. Tariff Advice at 1. An end date was not found in City Ordinance No. 2026-02;therefore, Staff believes the franchise fee agreement will remain in effect unless amended in the manner set DECISION MEMORANDUM - 1 - SEPTEMBER 8, 2026 forth by the terms of the ordinance. The proposed franchise fee agreement was accepted by the Company and approved by the City on July 13, 2026. City Ordinance No. 2026-02 at 2. RECOMMENDATION Staff recommends that the Commission accept the Company's proposed revision to Schedule No. 158 as filed, effective October 1, 2026. COMMISSION DECISION Does the Commission wish to accept the Company's proposed revision to Schedule No. 158, as filed, effective October 1, 2026? Kevin Maxwell Commission Staff I:\Utility\UDMEMOS\AVU-TAG-26-02 Decision Memo.docx DECISION MEMORANDUM - 2 - SEPTEMBER 8, 2026 ATTACHMENT A Case No. AVU-TAG-26-02 Decision Memo September 8, 2026 Fourteenth Thirteenth Revision Sheet 158 Canceling I.P.U.C. No.27 Thirteenth Twelfth Revision Sheet 158 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 158 TAX ADJUSTMENT SCHEDULE - IDAHO The rate schedule of the Company for natural gas 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 natural gas service rendered pursuant to this tariff 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 Date Ordinance Effective Charge' Village of Bonners Ferry Ord. No. 209 July 2, 1963 3%franchise fee City of Bovill Ord No. 2026-02 October 1 2026 1% franchise fee City of Coeur d'Alene Ord. No. 2518 July 1, 1993 5%franchise fee City of Dalton Gardens Ord. No. 168 February 1, 2005 1% Franchise fee as amended by Ord. No. 171 City of Deary Ord. No.405 January 1, 2026 1%franchise fee City of Dover Ord. No. 53 October 1, 2000 1%franchise fee City of Fernan Lake Village Res. No. 196 Ord, No. 167 March 1, 2024 1%franchise fee City of Hauser Ord. No. 111 May 1, 1999 1% franchise fee City of Hayden Ord. No. 392 October 1, 2005 1%franchise fee City of Hayden Lake Ord. No. 125 January 1, 1995 3% franchise fee as amended by Ord. No. 131 City of Kellogg Ord. No. 556 March 1, 2026 3%franchise fee as amended by Ord. No. 643 City of Kootenai Ord. No. 112 August 1, 1996 1%franchise fee City of Lewiston Ord. No.4256 January 1, 2000 1% franchise fee City of Moscow Ord. No.2006-06 June, 1 2006 3%franchise fee City of Mullan Ord. No. 309A May 1, 1997 1%franchise fee City of Osburn Ord. No. 297 February 1, 2020 1%franchise fee City of Pinehurst Ord. No. 2022-239 July 1, 2022 1%franchise fee City of Ponderay Ord. No. 3-17 November 1, 1996 1%franchise fee City of Post Falls Ord. No. 1015 March 1, 2003 1%franchise fee City of Rathdrum Ord. No. 377 November 1, 1996 1%franchise fee City of Sandpoint Ord. No. 1076 March 1, 2003 1%franchise fee City of Spirit Lake Ord. No. 510 December 1, 2007 1% franchise fee City of Wallace Ord. No. 95-07 January 1, 1996 1%franchise fee *Federal hills excluded Issued August 3 January 28, 2026 Effective October 1 March 1, 2026 Issued by Avista Utilities Patrick Ehrbar, Director of Regulatory Affairs Fourteenth Revision Sheet 158 Canceling I.P.U.C. No.27 Thirteenth Revision Sheet 158 AVISTA CORPORATION d/b/a Avista Utilities SCHEDULE 158 TAX ADJUSTMENT SCHEDULE - IDAHO The rate schedule of the Company for natural gas 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 natural gas service rendered pursuant to this tariff 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 Date Ordinance Effective Charge* Village of Bonners Ferry Ord. No. 209 July 2, 1963 3%franchise fee City of Bovill Ord No. 2026-02 October 1, 2026 1%franchise fee City of Coeur d'Alene Ord. No. 2518 July 1, 1993 5%franchise fee City of Dalton Gardens Ord. No. 168 February 1, 2005 1% Franchise fee as amended by Ord. No. 171 City of Deary Ord. No.405 January 1, 2026 1%franchise fee City of Dover Ord. No. 53 October 1, 2000 1%franchise fee City of Fernan Lake Village Res. No. 196 Ord. No. 167 March 1, 2024 1%franchise fee City of Hauser Ord. No. 111 May 1, 1999 1%franchise fee City of Hayden Ord. No. 392 October 1, 2005 1%franchise fee City of Hayden Lake Ord. No. 125 January 1, 1995 3%franchise fee as amended by Ord. No. 131 City of Kellogg Ord. No. 556 March 1, 2026 3%franchise fee as amended by Ord. No. 643 City of Kootenai Ord. No. 112 August 1, 1996 1%franchise fee City of Lewiston Ord. No.4256 January 1, 2000 1%franchise fee City of Moscow Ord. No.2006-06 June, 1 2006 3%franchise fee City of Mullan Ord. No. 309A May 1, 1997 1%franchise fee City ofOsburn Ord. No. 297 February 1, 2020 1%franchise fee City of Pinehurst Ord. No. 2022-239 July 1, 2022 1%franchise fee City of Ponderay Ord. No. 3-17 November 1. 1996 1%franchise fee City of Post Falls Ord. No. 1015 March 1, 2003 1%franchise fee City of Rathdrum Ord. No. 377 November 1, 1996 1%franchise fee City of Sandpoint Ord. No. 1076 March 1, 2003 1%franchise fee City of Spirit Lake Ord. No. 510 December 1, 2007 1%franchise fee City of Wallace Ord. No. 95-07 January 1, 1996 1%franchise fee *Federal hills csduded Issued August 3, 2026 Effective October 1, 2026 Issued by Avista Utilities Patrick Ehrbar, Director of Regulatory Affairs