The plan was approved by the Energy, Environment and Technology Interim Committee in January 2012 and formally adopted by the Idaho legislature in March 2012. The plan includes the following key principles and recommended actions: It is Idaho policy to encourage the most effective use of natural gas and ensure that Idaho consumers have access to a reliable low-cost supply. It is Idaho policy to support responsible exploration and production of natural gas supplies’ and the expansion of the transmission, storage and distribution infrastructure. Idaho should encourage investments in natural gas supply resources including landfill methane, anaerobic digesters and biomass methane in a manner that protects property owners and the environment. Idaho should encourage the purchase of efficient, fuel-flex and alternative fuel vehicles and investments in retail and wholesale alternative fuel supply infrastructure All Idaho utilities should full incorporate cost-effective conservation, energy efficiency and demand response as priority resources in their IRP process. The Idaho PUC should seek to eliminate disincentives that stand as barriers to implementing cost-effective conservation measures and the PUC should consider appropriate methods to avoid the disincentives associated with investor owned utility conservation efforts. The Idaho PUC should adopt rate designs that encourage more efficient and effective use of energy.

In 1989, The Idaho Public Utilities Commission issued an order that required utilities to consider cost-effective energy efficiency measures for natural gas. Avista Corporation offers several natural gas programs for customers and has a rate adjustment mechanism designed to recover costs incurred by the Company associated with providing energy efficiency services and programs to customers.

Idaho established the Idaho Energy Plan when it was formally adopted by the state legislature in March 2012. The plan includes the following key principle and recommended action relating to natural gas: It is Idaho policy to support responsible exploration and production of natural gas supplies and the expansion of the transmission, storage and distribution infrastructure. On July 29, 2015, The Northwest Power & Natural Gas Planning Taskforce released a whitepaper entitled Northwest Gas Infrastructure – Looking Forward. The whitepaper concluded that large new gas users could have more control over future infrastructure expansions than existing users, including utilities. Utilities may have to adapt their preferred gas supply and infrastructure strategies based on the location and timing of infrastructure projects chosen by large new gas users. The whitepaper also concluded that utilities need reliable pipeline transportation from a robust gas supply. As new users enter the region, and existing users change their gas consumption patterns, what is considered to be a robust supply may change. This could cause utilities to change their preferred gas supply portfolio and/or transportation product (firm or non-firm) needed to ensure reliable delivery of gas to the point of consumption. The Taskforce is a joint effort of the Northwest Gas Association and PNUCC. The Taskforce’s members largely consist of natural gas utilities, pipelines, electric utilities that consume gas to generate power and industrial user representatives.

Intermountain Gas has a natural gas fuel tariff (Rate Schedule GS-1). Large volume customers, over 200,000 therms per year, can access the LV rate or Transport arrangements.

On December 18, 2015, the Idaho Public Utilities Commission (PUC) adopted a settlement in Avista Corp.’s base rate case. The approved settlement provides for Avista to implement a revenue decoupling mechanism, referred to as a Fixed Cost Adjustment (FCA). The FCA is to have an initial term of three years, subject to a review by the parties following the end of the third year. Avista may seek PUC approval to extend the term of the FCA prior to its expiration. Customers in the FCA will be segmented into two rate groups (residential and commercial). FCA surcharges cannot exceed a 3% annual rate adjustment and any unrecovered balances will be carried forward to future years. FCA balances will accrue interest at the customer rate for deposit.