20250317EEAF 2025 Annual Report.pdf

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RECEIVED
Avista Corp. March 17, 2025
1411 East Mission P.O. Box 3727 Idaho Public Utilities
Commission
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
March 17, 2025
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd.
Bldg. 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. AVU-E-19-04 - Avista Corporation Energy Efficiency Assistance Fund
Annual Report
Avista Corporation, dba Avista Utilities (Avista or the Company) provides this Energy
Efficiency Assistance Fund(EEAF)2025 Annual Report(Report)as a courtesy update to the Idaho
Public Utilities Commission (Commission), and to inform the record in Case No. AVU-E-19-04
with respect to the Company's progress in accomplishing section 16(a) of the energy efficiency
commitments contained in the approved Stipulation and Settlement (Stipulation) in the above-
referenced case.
I. Background
On November 29, 2019, the Commission issued its Order No. 34499 in Case No. AVU-E-
19-04, Avista's 2019 electric general rate case (GRC). In its Order, the Commission approved a
Stipulation and Settlement entered into by Avista, Clearwater Paper Corporation (Clearwater),
Idaho Forest Group, LLC (IFG), the Community Action Partnership Association of Idaho, Inc.
(CAPAI),the Idaho Conservation League (ICL), and Commission Staff(collectively,the Parties).
As part of its energy efficiency commitments identified in the Stipulation, section 16(a)reads:
a. The parties agree that Avista will establish an Energy Efficiency Assistance Fund
("EEAF"). The purpose of the EEAF is to provide additional funding for projects that
are not otherwise fully funded through existing energy efficiency incentives, or do not

otherwise qualify for traditional energy efficiency funding. The EEAF will be funded
and disbursed as follows:
i. The final deferral balance related to the "AFUDC Equity Tax Deferral",
addressed in Case Nos. AVU-E-19-02 and AVU-G-19-01, as ordered in
Commission Order No. 34326 will be a source of funding. The estimated
deferral balance is approximately $800,000.1
ii. Avista will contribute below-the-line dollars of$800,000 in 2019 as a match to
the estimated AFUDC Equity Tax Deferral (in subsection i.).
iii. The funding will be disbursed as directed by the EEAF Advisory Group, a new
committee of stakeholders tasked with determining which existing or new
programs should receive this funding to address energy efficiency,
weatherization, conservation, and low-income needs in Avista's Idaho service
territory.
iv. The EEAF Advisory Group will consider the needs of all parties and remain
flexible on the timing of any disbursements. Any entity seeking funding must
first attempt to qualify their applicable project under Avista's existing energy
efficiency programs.
V. The committee will initially consist of representatives from the following
stakeholders: Avista, Staff, the Lewiston Community Action Partnership, ICL,
Idaho Forest, and Clearwater. The Committee may add representatives at its
discretion.
II. EEAF Advisory Group
In compliance with the Stipulation, the EEAF Advisory Group (Advisory Group) was
established, inclusive of representatives from Avista, Commission Staff, ICL, IFG, Clearwater,
and the Lewiston Community Action Partnership (CAP), as recommended. The Advisory Group
met many times for the purposes of reviewing the Settlement provisions, discussing the purpose
of the EEAF and associated Advisory Group, developing principles by which the group would
operate,reviewing project proposals,and ultimately approving projects to be funded by the EEAF.
III. 2020 EEAF Projects
The Advisory Group approved four total programs and/or projects in 2020 to receive
funding from the EEAF. Descriptions of each selected project or program are provided below.
' The actual amount of the AFUDC Equity Tax Deferral was $732,183. The total EEAF starting balance was
$1,532,183.
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Clearwater Paper Corporation
1. PM1 Machine West Hydro Pulper Agitator Replacements
This project replaced the electric motors and installed variable speed drives on the PM1 west
repulper agitators. Installing these new components allows the agitators to be slowed down when
only the#1 Paper Machine winder trim is fed into the Hydrapulper chest. This is about 40% of the
time the pulper is in operation. There is a significant reduction in horsepower required when the
agitator speeds are slowed down. The project was estimated to save 2,279,399 kWh/year. The
project cost was estimated at$574,000,with Clearwater receiving a maximum EEAF contribution
of$155,000 and an estimated energy efficiency incentive of$419,000 to pay for the project.
Project Status: Project fully completed in 2022, as detailed below:
• Project Cost= $568,322.88
• Annual Electric Savings = 1,371,100 kWh
• Energy Efficiency Incentive= $315,353
• EEAF Contribution= $155,000
2. No. 4 Power Boiler Demin Feed Water Pump Replacement
This project replaced two electric motors and installed variable speed drives on the Derain Feed
Water Pumps. Installing these new components allows the pumps to be slowed down when
condensate return levels are adequate. This is about 90%of the time during normal mill operation.
There is a significant reduction in horsepower required when the pump speeds are slowed down.
In addition, the new variable speed drives help during startup of the system by eliminating water
hammer. The project was estimated to save approximately 938,521 kWh/year. The project cost
was estimated at$400,000 with Clearwater receiving a maximum EEAF contribution of$212,296
and an estimated energy efficiency incentive of$187,704 to pay for the project.
Project Status: Project fully completed in 2022, as detailed below:
• Project Cost= $388,705
• Annual Electric Savings = 776,307 kWh
• Energy Efficiency Incentive= $178,551
• EEAF Contribution= $210,154
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3. 3L Building Light Upgrade
This project replaced 20 to 30-year-old HP sodium and metal halide fixtures in the 3L Tissue
Machine Building with new High Efficiency LED Type Fixtures. In addition to significant energy
savings,this improved lighting quality and color rendering. The total project cost was estimated at
$90,540, with Clearwater receiving a maximum EEAF contribution of$61,440 and an estimated
energy efficiency incentive of$29,100 to pay for the project.
Project Status: Project fully completed in 2022, as detailed below:
• Project Cost= $202,534
• Annual Electric Savings =476,885 kWh
• Energy Efficiency Incentive= $109,683.50
• EEAF Contribution= $61,440
Lewiston CAP/ICL
The Lewiston CAP, in collaboration with ICL, submitted a joint proposal to relieve the existing
backlog of cost-effective weatherization projects that cannot currently be addressed because of
health, safety,or repair issues present at the homes.The proposal utilizes$250,000 of EEAF funds,
to be leveraged with other existing funding where possible, to provide non-cost-effective
weatherization services to single-family residential homes that require work beyond the scope of
typical Avista or state-funded health and safety improvements. CAP anticipated the funding would
help extend weatherization services to an additional 20-30 income qualified Avista customers with
low incomes,high energy burden,and substantial dwelling issues that otherwise would not be able
to be provided. Homes that received the health, safety, or repair improvements were able to
proceed with the Avista's low-income weatherization program,which they were unable to qualify
for without this program. The Advisory Group approved this funding request without a per-project
maximum limit or other restrictive provisions.
Project Status: the Lewiston CAP provided health, safety, or repair improvements to 53 homes
for a total of$250,000.
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IV.2022 EEAF Projects
The Advisory Group approved six total programs and/or projects in 2022 to receive funding
from the EEAF. Descriptions of each selected project or program are provided below.
Clearwater Paper Corporation
1. CL02 Lurgi Chiller Replacements
The project is estimated to save 1,291,250 kWh/year. The total project cost is estimated at
$1,167,000, with Clearwater receiving an a maximum EEAF contribution of $350,000 and an
estimated energy efficiency incentive of$296,988 to pay for the project.
Project Status: Project fully completed in 2024, as detailed below:
• Project Cost= $1,076,495
• Annual Electric Savings = 1,143,644 kWh
• Energy Efficiency Incentive= $247,594
• EEAF Contribution= $350,000
Idaho Forest Group (IFG)
1. Grangeville Large Motor Drives—Synchronous Belt Conversion
The project is estimated to save 210,000 kWh/year. The total project cost is estimated at$43,500,
with IFG receiving an a maximum EEAF contribution of $13,050 and an estimated energy
efficiency incentive of$30,450 to pay for the project.
Project Status: IFG has decided not to pursue this project.
2. Grangeville Planer Space Heat—Electric to Steam Conversion
The project is estimated to save 452,536 kWh/year. The total project cost is estimated at$185,000,
with IFG receiving an a maximum EEAF contribution of $80,917 and an estimated energy
efficiency incentive of$104,083 to pay for the project.
Project Status: Project fully completed in 2023, as detailed below:
• Project Cost= $174,526.82
• Annual Electric Savings = 619,259 kWh
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• Energy Efficiency Incentive= $122,168.77
• EEAF Contribution= $52,358.05
3. Grangeville Domestic Water Pumps—VFD Pressure Control& Tanks
The project is estimated to save 86,124 kWh/year. The total project cost is estimated at $21,539,
with IFG receiving an a maximum EEAF contribution of $6,461 and an estimated energy
efficiency incentive of$15,077 to pay for the project.
Project Status: Project fully completed in 2023 as detailed below:
• Project Cost= $33,392.42
• Annual Electric Savings = 74,334 kWh
• Energy Efficiency Incentive= $17,096.82
• EEAF Contribution= $6,461
4. Lewiston Heede Portal Log Crane—Cable Reel Hydraulic to Electric Conversion
The project is estimated to save 174,600 kWh/year. The total project cost is estimated at$150,000,
with IFG receiving an a maximum EEAF contribution of $110,000 and an estimated energy
efficiency incentive of$40,158 to pay for the project.
Project Status: In 2023, IFG made the decision to suspend this project indefinitely.
Nez Perce Tribal Housing Authority (NPTHA)z
The NPTHA operates essential home repair programs with limited annual funding and continually
seeks other funding to assist with much needed essential home repairs. The NPTHA proposed to
utilize the EEAF to provide essential home repairs for energy conservation or which limit access
to programs that provide weatherization services. The program served Native American
households residing within the Nez Perce Indian reservation who are Avista customers. The
NPTHA requested$330,000 from the EEAF. The Advisory Group approved of this project with a
slightly lower level of funding, $293,176.
z The NPTHA is not a member of the EEAG Advisory Group but was approached by the ICL regarding submitting a
proposal for EEAF funding.ICL worked with the NPTHA on their proposal,which the Advisory Group unanimously
supported.
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Project Status: the NPTHA has provided health, safety, or repair improvements to 32 homes for
a total of$292,714.89. The NPTHA does not plan to spend the remaining $461.11 of the budget
they were approved to spend.
V. Conclusion
Since inception,the EEAF has provided funding for six energy efficiency projects totaling
$835,413, resulting in energy savings of 4,461,529 annual kWhs. In addition, the EEAF has
provided funding totaling $542,715 for health, safety, and repair improvements for 83 homes.
These projects met the objectives laid out for the EEAF as they may not have otherwise been
completed without the EEAF.
Because IFG elected not to pursue two of its approved projects, there is $154,055.07
remaining in the EEAF. Rather than seek additional project proposals for these funds to be used,
this remaining balance will be transferred to the Company's electric energy efficiency tariff rider,
which will benefit all Avista's electric customers. Avista shared this proposal with the Advisory
Group and received no opposition to it.
Finally, as all funds from the EEAF have now been exhausted,this is the last EEAF annual
report the Company will provide.
Sincerely,
l Ql s� F"Ou
Shawn Bonfield
Sr. Manager of Regulatory Policy& Strategy
Avista Utilities
509-495-2782
shawn.bonfield(&,avistacorp.com
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