20231222Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
FROM:CURTIS THADEN
DAYN HARDIE
DATE:DECEMBER 19,2023
RE:REVISION TO AVISTA UTILITES ELECTRIC SERVICE IPUC TARIFFNO.28,SCHEDULE 58 FRANCHISE FEE AGREEMENT WITH THECITYOFGRANGEVILLE;TARIFF ADVICE NO.AVU-TAE-23-01
On November 6,2023,Avista Corporation d/b/a Avista Utilities ("Avista"or
"Company")submitted Tariff Advice No.AVU-TAE-23-01 to revise Avista's IPUC Tariff No.
28 to add the City of Grangeville to Schedule No.58 (Tax Adjustment Schedule -Idaho)
("Schedule No.58").The purpose of the filing is to update the Company's tariff for a new 1%
franchise fee imposed on gross revenue from the sale of electricityto customers within corporate
limits of the City of Grangeville.'The new agreement would remain in effect until August 2026,
from the proposed January 1,2024 effective date,unless amended in the manner set forth by
Grangeville City Ordinance No.972.Included with the filing is 1)Ordinance No.972,which
sets forth the City Franchise Agreement with the Company;and 2)the proposed revisions to
Schedule No.58.
The proposed franchise fee agreement was approvedby the City of Grangeville on
October 16,2023,as authorized in Grangeville City Ordinance No.972.Avista requests an
effective date of January 1,2024.
On July 9,2001,Avista and the City of Grangevillesigned a 25-year electric franchise agreement.This wasOrdinanceNo.738.There was no franchise fee negotiated at that time.
DECISION MEMORANDUM -1 -DECEMBER 19,2023
BACKGROUND
Idaho Code §50-329A allows cities to establish franchise fees assessed upon a public
service provider up to 1%of the provider's gross revenue in that city without the consent of the
public service provider or the approval of a majority of voters of the city votingon the proposal
at an election.Franchise fees up to 3%are allowed with either 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.
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff change,the franchise agreement for the City of
Grangeville,and the franchise fee requirements of Idaho Code §50-329A.Staff recommends
that the Commission accept the Company's proposed revision to Schedule No.58 as filed,
effective date of January 1,2024.
COMMISSION DECISION
Does the Commission wish to accept the Company's proposed revision to Schedule No.
58,as filed,effective January 1,2024?
Curtis Thaden
Udmemos/AVU-TAE-23-01 Decision Memo
DECISION MEMORANDUM -2 -DECEMBER 19,2023