20260924Final_Order_No_37183.pdf

Office of the Secretary
Service Date
September 24,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA ) CASE NO.AVU-E-26-07
CORPORATION'S RESIDENTIAL AND )
SMALL FARM ANNUAL RATE )
ADJUSTMENT FILING ) ORDER NO. 37183
On July 31, 2026, Avista Corporation ("Company") applied to the Idaho Public Utilities
Commission ("Commission") requesting authorization to implement a proposed increase to the
Schedule 59—Residential and Small Farm Energy—Idaho ("Schedule 59") credit rate for electric
service for qualifying customers on Schedules 1, 12,22,32, and 48,from October 1,2026,through
September 30, 2027 ("Application").
On August 14, 2026, the Commission issued a Notice of Application and Notice of
Modified Procedure, establishing deadlines for public comments and Company reply comments.
Order No. 37135. Commission Staff("Staff')filed comments to which the Company did not reply.
No other comments were received.
Based on our review of the record,the Commission now issues this Final Order approving
the Company's Application, as filed.
BACKGROUND
The electric Residential and Farm Energy Rate Adjustment results from an agreement
between the Company and Bonneville Power Administration ("BPA") that provides a share of the
benefits of the federal Columbia River power system to the residential and small-farm customers
of the six investor-owned utilities of the Pacific Northwest. The calculation of BPA benefits for
Idaho customers is based on two key factors: the average electricity usage of the Company's
residential and small farm customers over the prior two years, and the difference between the
Company's Average System Cost("ASC")and BPA's Priority Firm Exchange Rate.The difference
between these two rates—ASC and Priority Firm Exchange Rate—is multiplied by annualized
usage to determine the benefit amount. This benefit is then allocated between the Company's
Washington and Idaho customers based on each state's actual energy use. To set the per kilowatt-
hour("kWh") credit rate, the Company combines any remaining balance from the prior year with
the upcoming year's BPA benefit and divides that total by the projected kWh sales for the
ORDER NO. 37183 1

upcoming year. The Company's current electric Residential and Farm Energy Rate Adjustment
rate of a 0.2330 per kWh credit was established by Order No. 36767.
THE APPLICATION
The Company proposed increasing the Schedule 59 credit rate from 0.2330 per kWh to
0.252¢ per kWh, Effective October 1, 2026. Application at 2-3. The proposed increase would
increase total credits provided to customers by approximately $0.3 million, or 0.1%. Id. at 3.
During the October 2025 through September 2026 period, the Company passed through
approximately $3.3 million in BPA benefits to Idaho customers.Id. at 3. Under the proposed rate,
the Company would pass through approximately $3.6 million in benefits. Id. The Company
anticipated that a residential customer using an average of 939 kWh per month would see a
monthly bill decrease of$0.19 or 0.15%per month.Id.
STAFF COMMENTS
Staff reviewed the Company's methodology, inputs, and calculations supporting the
proposed Residential and Small Farm Energy Rate credit and independently recalculated the rate.
Staff Comments at 2. Staff believed that the methodology complied with Schedule 59 and
recommended that the Commission approve the proposed credit rate of 0.2520 per kWh, effective
October 1, 2026. Id.
Staff stated that the current credit rate of 0.2330 per kWh provides qualifying Idaho
customers with approximately $3.3 million in benefits. Id. Staff calculated that the proposed rate
of 0.252¢ per kWh would increase those benefits to approximately $3.6 million, including an
adjustment for the prior-year under-refunded balance, while reducing revenue from qualifying
customers by approximately $0.3 million, or 0.1%.Id.
Staff confirmed that for the October 2026 through September 2027 period, the Company's
ASC rate of$67.29 per megawatt-hour ("MWh") exceeds BPA's Priority Firm Exchange Rate of
$65.09 per MWh by $2.20 per MWh. Id. at 2-3. Staff applied that difference to projected
qualifying usage, which produced an estimated BPA benefit of$9.26 million, of which Idaho's
33.75% share equals approximately $3.13 million. Id. at 3. After adding the projected $414,729
under-refunded balance and applying the revenue conversion factor, Staff calculated a net benefit
of approximately $3.56 million.Id. Dividing that amount by projected sales of 1.413 billion kWh
produced the proposed credit rate of 0.252¢ per kWh. Id.
ORDER NO. 37183 2

Staff also reviewed the Company's customer notice and press release and believed that they
were consistent with Commission Rule 125. Id. The Company distributed the notice through
mailed billing statements and email between August 4 and September 1, 2026. Id. Although the
Commission established September 8, 2026, as the public comment deadline and received no
comments by that date, Staff recognized that some customers may not have received sufficient
time to respond. Id. Staff therefore recommended that the Commission allow and consider
customer comments submitted after the deadline.Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Filing and the issues in this case
under Title 61 of the Idaho Code including, Idaho Code §§ 61-501, -502, and -503. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order.Idaho Code
§§ 61-501, -502, and-503.
The Commission has reviewed the Company's Application, all submitted materials, and
Staff comments. Based on our review of the record,we find it fair,just, and reasonable to approve
the Company's Application, as filed.
The Company proposes to increase the Schedule 59 credit from 0.2330 per kWh to 0.2520
per kWh, effective October 1, 2026, for customers taking service under Schedules 1, 12, 22, 23,
and 48.
We appreciate that Staff independently reviewed and recalculated the proposed rate to
verify the Company's methodology and calculations comply with Schedule 59. Under the
proposed credit, approximately $3.6 million in BPA benefits will be passed through to qualifying
Idaho customers, an increase of approximately $0.3 million from the current rate credit.
The Commission finds that the proposed credit is consistent with Schedule 59 and
appropriately reflects the BPA benefits available to the Company's qualifying Idaho customers.
Accordingly, the Commission approves the Company's Application, as filed.
ORDER
IT IS HEREBY ORDERED that the Application and proposed Schedule 59 are approved,
as filed.
ORDER NO. 37183 3

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order regarding any matter decided in
this Order. Within 7 days after any person has petitioned for reconsideration, any other person may
cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 24th day of
September 2026.
G
EDWARD LODGE, PR IDENT
/J�_- xf�
J R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
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Commission Secretary
L\Legal\ELECTRIC\A V U-E-26-07_B PA\orders\A V UE2607_f inal_em.docx
ORDER NO. 37183 4