20110104_3197.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:LYNN ANDERSON
DATE:DECEMBER 22, 2010
SUBJECT:AVISTA TARIFF FILING DATE 11/01/10 AND REVISED ON 12/09/10.
On November 1 , 2010, A vista Utilities filed modifications to its tariff sheets 90B and
190A, which list the incentive levels payable to participants in the Company s electricity and
natural gas custom (as opposed to prescriptive) energy efficiency programs, respectively. The
purpose of the changes is to remove incentive payments for projects that are generally not cost-
effective. The Company determined that eliminating incentive payments for projects with too
long simple paybacks, due to its administrative simplicity, was the best approximation for
improving program cost-effectiveness. The cover letter for this filing stated that A vista intends
to provide incentives based on the existing tariff for efficiency projects that are contracted before
December 31 , 2010, and that are completed by December 31 , 2011 , and that customers who have
been identified as currently having projects under consideration will be notified ofthe tariff
changes. Finally, a blank sheet 190D, was inadvertently included in this filing.
On December 9 2010, Avista Utilities filed revisions to its November 1 filing to provide
language consistency and to correct technical errors in that filing on sheets 90B and 190A, to
remove references to cost-effectiveness from only the total resource cost perspective on sheets
90D and 190C , and to remove the inadvertently blank sheet 190D that was previously filed.
On December 22 , 2010, A vista Utilities filed a revised cover letter for these tariff
changes to clarify that new incentive structure will also apply Schedule 90 renewable energy
projects, thereby excluding incentive payments for renewable energy projects that are
substantially not cost-effective.
DECISION MEMORANDUM - 1 -DECEMBER 22 2010
Staff has obtained and reviewed Avista s analysis used to determine that these changes
will help the Company appropriately manage its energy efficiency programs.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the following revised tariff sheets as
filed on December 9 2010:
. Revised Second Revision Sheet 90B
. Fourth Revision Sheet 90D
. Revised Second Revision Sheet 190A
. Third Revison Sheet 190C
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Lynn Anderson
i:udmemos/Avistatariff 12-10.doc
DECISION MEMORANDUM - 2 -DECEMBER 22 2010