20220909Avista to Staff 1-12.pdf

AVISTA CORPORATION
RESPONSE TO REQTTEST FOR TNFORMATTON
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JURISDICTION: IDAHO
CASE NO: AVU-E-22-13/AW-G-22-05
REQUESTER: IPUC Staff
TYPE: Production Request
REQUEST NO.: Staff- 0l
DATE PREPARED
WTINESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
09/0912022
N/A
Ryan Finesilver
Energy Efficiency
(s09) 49s-4873
REQUEST:
Please provide the in-house and third-party cost-effectiveness workpapers and calculations for all
Demand Side Management ('DSM") programs and measures by year (2020 and,202l) in Excel
format with formulas intact and all assumptions clearly defined.
RESPONSE:
For in-house workpapers, please see Staff-PR-01 - Attachment A for 2020 and Attachment B for
202r.
For third-party workpapers, please see Staff-PR-OI Attachments C through G, which are as
follows:
Residential and Low lncome - ADM Associateso AttachmentC-Electrico Attachment D - Natural Gas
Non-Residential and Multifamily Direct Install (MFDD - Cadmuso Attachment E-MFDIo Attachment F - Non-Res Electrico Attachment G - Non-Res Natural Gas
Please note that Avista prepared its cost-effectiveness (CE) analysis independent of the
methodologies used by its third-party evaluators. For 2021, Avista did not request that a CE
analysis be perfomred by Cadmus nor ADM Associates in acknowledgement of Order No. 35129
requiring the CE analysis to be performed by Avista.
Whenever possible, costs are allocated to each state based on the actual tasked worked (time and
materials). If an activity supports multiple states and fuel types, costs are split between the
states/fuels using an allocation that is based on the proportional efforts of the engagement. When
those splits cannot be fuither determined, the Company will allocate based on the normal
7 0o/o130%o allocation for Washington/Idaho.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU -E-22- I 3 /AW- G -22-0 s
IPUC Staff
Production Request
Staff- 02
DATE PREPARED: 0910912022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: (s09) 495-4873
REQUEST:
Please describe the Company's efflorts to evaluate Research and Development (.R&D")
opportunities. Additionally, please describe the metrics used to evaluate R&D opportunities.
RESPONSE:
In Case No. AVU-E-21-13, Avista proposed to utilize R&D funding to pursue an elechic vehicle
("EV") pilot as a way to benefit Idatro customers "by using a cheaper and cleaner fuel, more
efficiently utilizing grid infrastructure, and integrating renewable energy resources that energize a
more efficient and sustainable economy."l The intent of this proposal, which was denied by the
Commission, and the basis upon which the Company's exploration of future R&D opportunities
is grounded, was and is to align with the Commission's guidance in its Order No. 35129 (Case
Nos. AVU-E-20-13/AVU-G-20-08, Avista's request for a prudency determination of its 2018-
2019 electric and natural gas energy efficiency expenditures). In this Order, the Commission notes
that *R&D is critical to continuing to provide reliable electric and nafural gas services to customers
in Idaho" and directed the Company to "propose an updated R&D program that includes metrics
and targets that can be met and monitored." As such, Avista has kept such guidance, as well as the
prior staternents from Commission Staff that reinforce the intent of the program as needing to
produce o'near-term, practical benefits for Idaho ratepayers" as front-of-mind when evaluating any
forthcoming R&D opportunities. The Company has not developed specific mehics to use in such
evaluation, but rather a requirement that future opportunities have mehics to be met, i.e., Avista
will not pursue further R&D program offerings until it finds a prospective program that can result
in measurable, meaningful benefits for its Idaho customers.
t IVU-E-Z t - 13 , Application of Avista Corporation for an Order Authorizing Pilot Programs for the Research and
Development of Electric Transportation, September 9,2021, atpg. 5.
AYISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU -E-22- I 3 /AW- G -22 -0 5
IPUC Staff
Production Request
Staff- 03
DATE PREPARED: 09109/2022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy EfficiencyTELEPHoNE: (s09) 49s-4873
REQUEST:
Please provide all workpapers in Excel format illustrating how the cost-effectiveness of the
Company's participation in the Northwest Energy Efficiency Alliance ("NEEA,) was calculated
for the years2020 and202l.
RESPONSE:
Avista does not typically perform analyses on the cost-effectiveness ofNEEA savings as part of its
overall performance. However, to be responsive to Staffs request, the Company attempted to
provide a cost-effectiveness analysis to show the overall UCT results for the savings originating
from NEEA efforts. Please see Staff-PR-O3 Attachment A for the workpapers supporting the
below tables.
Between 2020 and 2021, Avista incurred expenses of $1,212,968 related to NEEA's electric
program and $296,583 related to NEEA's natural gas program.
For electric, the conservation savings allocated to Idatro customers was 3,616 MWh in2020 and
3,415 MWh in 2021 for a total of 7,031 MWh. For Natural Gas, the conservation allocated to
Idaho customers was 5,641 therms :rl-2020 and 152,881 therms in202l.
Only a portion of the overall savings originate from measures while the majority of those savings
come from codes and standards. Savings originating from conservation 'omeasures" were 876
MWh in 2020 and 684 MWh in 2021 for a total of 1,560 MWh. For natural gas, the program
achieved 158,522 therms all of which were related to codes and standards.
The below table summarizes the total conservation savings in the 2020-2021period.
Category Eneryy Savings
Electric
Eneryy Savings
Natural Gas
Codes and Standards 5,471 MWh 158,522 Therms
Efficiencv Measures 1.560 MWh 0
Total 7.031 MWh 7.031Therms
The Company has prepared cost-effectiveness estimates in several scenarios for each fuel. Those
scenanos are:
Electric
l. MWh savings of 7,031 (all savings) with an average life of 20 years.
2. MWh savings of 1,560 (measures only) with an average life of 20 years.
3. MWh savings of 7,031 (a11 savings) with an average life of 15 years.
4. MWh savings of 1,560 (measures only) with an average life of 15 years.
Natural gas
l. Therm savings of 158,522 (codes and standards) with an average life of 20 years.
2. Therm savings of 158,522 (codes and standards) with an average life of l5 years.
For elecffic, the results of the analysis show that NEEA remains cost-effective when including the
entirety of savings (7,031 MWh) but fails to be cost-effective when including measure only
savings (1,560 MWh). The below table illustrates the four scenarios of this analysis.
Scenario MWh
Savings Estimated Life NEEA Costs Utility Cost
Test (UCT)
1 7,031 20 $ L,2L2,968 3.77
2 1,560 20 $ L,2L2,968 0.84
3 7,03L 15 $ 1,212,968 2.88
4 1,560 15 $ 1,212,968 0.64
For natural gas, the results of the analysis show that NEEA remains cost-effective when including
the entirety of savings of 158,522 therms (codes and standards). The below table illusfrates the
four scenarios of this analysis.
Senario Therm
Savinqs Estimated Life NEEA Costs UUlity Co6t
TestruCn
1 158,522 20 $ 296,583 3.80
2 L58,522 15 $ 296,583 2.87
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW -E-22- I 3 /AW- G -22-0 s
IPUC Staff
Production Request
Staff- 04
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0910912022
N/A
Ryan Finesilver
Energy Efficiency
(s09) 495-4873
REQUEST:
Please provide the amount of savings obtained through the Company's participation in NEEA for
2020 and202l. Please identiff any savings that were allocated to Avista's Idatro jurisdiction, and
the methods used to allocate those savings. Additionally, please provide the report from NEEA for
the finalized savings for 2020 and202l in Excel format, with all formulas intact.
RESPONSE:
Electric
For 2020, NEEA reported savings of 0.41 aMW, or 3,616 MWh, for Avista's Idaho service
territory. Of this amount of conservation savings, 0.31 aMW, or 2,739 MWh, originated from
Codes and Standards. The rernaining 0.10 aMW, or 876 MWh, originated from efficiency
measures.
For 2021, NEEA reported savings of 0.39 aMW, or 3,415 MWh, for Avista's Idaho service
territory. Of this amount of conservation savings, 0.31 aMW, or 2,731 MWh, originated from
Codes and Standards. The remaining 0.08 aMW, or 684 MWh, originated from efficiency
measures.
Per NEEA's Annual Savings Report, NEEA allocates regional savings (Idaho, Montana, Oregon,
and Washington) using shares of invesfrnent by funder. These shares vary by funding cycle.
Savings from previous investments receive the previous funder share, and savings from current
investnents receive the current funder share. For the 2020-2024 cycle, Avista's funding share is
1.69%.
Natural Gas
For 2020, NEEA reported savings of 5,641 therms for Avista's Idaho service territory. These
savings were related to residential next step homes. These savings are classified as Code savings.
For 2021, NEEA reported savings of 152,881 therms related to ID IECC 2018 with amendments.
These savings are also classified as Code savings.
AVISTA CORPORATION
RESPONSE TO REQITEST f,'OR INFORMA',TION
ruRISDICTION: IDAHO
CASE No: AYU-E-22-13/AW-G-22-05
REQUESTER: IPUC StAff
TYPE: Production Request
REQUEST NO.: Staff- 05
DATE PREPARED: 0910912022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: [phone]
REQUEST:
Please provide the avoided cost used to calculate the cost-effectiveness of low-income, residential,
commerciaUindustrial programs, and NEEA progftrms for Avista's Idatro jurisdiction in Excel
format with formulas intact.
RESPONSE:
Please see Staff-PR-Os - Attachment A for the2020 Avoided Cost worksheet and Attachment B
for the 2021 Avoided Cost worksheet. Note that natural gas avoided costs were included in the
cost-effectivexress model provided with the Company's response to Staff-PR-0l.
AYISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
ftruSDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW -E-22- 1 3 /AW- G -22-0 s
IPUC Staff
Production Request
Staff- 06
DATE PREPARED: 0910912022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: [phone]
REQUEST:
Please provide a list in Excel format showing all expenses charged to the electric and gas DSM
riders in 2020 and 2021. Please include the following information for each expense: the date,
vendor, amount, progftrm, task number, and account to which the charges were assigned. Please
include and identiff any adjustments made in 2020 and 2021 to previously incurred expenses.
Please also sqrarate all expenses by program. If any amounts were allocated to multiple programs
and/or jurisdictions, please describe the allocation method.
RESPONSE:
Please See Staff-PR-06 - Attachment A for the transaction detail for the Idaho electric and natural
gas DSM programs and measures during 2020 -2021.
Expenses for Idatro's Energy Effrciency program are either directly assigned to a specific task or
allocated between two jurisdictions using the following project numbers:
o Idaho Electric: 03803300o Idaho Nat Gas: 03803101o WA/ID Electric: 09803400 (70%WA I 30%lD)o WA/ID Nat Gas: 09803401 (70% WA / 30% ID)
Non-incentive expenditures are separated by sector (i.e. Low-Income, Residential,
Non-Residential) and are not categorizdby program. Please see Staff PR_06 - Attachment B for
a listing of all task numbers used for Energy Efficie'ncy progftrms.
Purchases, services, materials and labor generally fall under implementation costs unless they are
directly related to a specific initiative or program in which the costs are captured under a specific
task number (e.g. pilot programs).
Also included in StaffiPR-06 - Attachment A is a list of the adjustnents made during the
2020-2021period. These adjustrnents include year-end accruals, year-end accrual reversals, and
corrections oferrors.
AYISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATION
JURISDICTION: IDAHO
CASE NO: AVU-E-22-13/AVU-G-22-05
REQUESTER: IPUC StaffTYPE: Production Request
REQUEST NO.: Staff- 07
DATE PREPARED: 0910912022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: (s09) 49s-4873
REQUEST:
Please provide copies of all internal audit reports for audits completed on the Company's electric
and gas DSM processes and expenses from 2020 to 2022. Please list the scope of any internal
audits in progress on the Company's electric and gas DSM processes and expenses.
RESPONSE:
Please see StaflPR-07 - Attachment A for a copy of the Company's Jnly 2022 internal audit
review of the Energy Efficiency program. There are currently no additional audits in progress.
AVISTA CORPORATION
RESPONSE TO REQITEST FOR INFORMA',TION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
Ayu -E-22- I 3 /AW- G -22-0 5
IPUC Staff
Production Request
Staff- 08
DATE PREPARED: 0910912022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHoNE: (s09) 49s-4873 .'
REQUEST:
Please provide invoices for all third-party evaluators for 2020 and202l. Please describe how those
costs were allocated among jrnisdictions and fuel sources.
RESPONSE:
Please see Staff-PR-OS - Attachment A for the invoices for third-party evaluation services in2020
and 2021. During the 2020-2021 period, Avista contracted with two evaluators, The Cadmus
Group for its non-residential and Multifamily Direct Install programs and ADM Associates, Inc.
for its residential and low-income programs.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR TNFORMATTON
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW -E-22- I 3/AW-G -22-05
IPUC Staff
Production Request
Staff- 09
DATE PREPARED: 0910912022WTINESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: (s09) 495-4873
REQUEST:
Please provide the electric and gas tariffrider revenue by month and by class for 2020 and202l.
RESPONSE:
Please see Staff-PR-Og - Attachment A for a list of tariffrider revenue by month and rate schedule
for202O and202l.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU -E -22- I 3 /AVU- G -22 -0 5
IPUC Staff
Production Request
Staff- 10
DATE PREPARED: 09109/2022WINESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: (s09) 49s-4873
REQUEST:
Please provide the calculation of any carrying charge or interest on the electic and gas rider
balances during 2020 and202l.
RESPONSE:
Avista's Energy Efficiency program did not incur any carrying charges or interest on the elecfric
and natural gas rider balances during 2020 and202l.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AYU -E -22- I 3/AVU-G -22-05
IPUC Staff
Production Request
Staff- 1l
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0910912022
N/A
Ryan Finesilver
Energy Efficiency
(s09) 4es-4873
REQUEST:
Please provide the amount of labor expenses charged to the Idaho electric and gas DSM tariff
riders for the years 2019 through 2021. For each year, please include the number of Full Time
Equivalent positions funded by the rider. Please also provide the general wage adjustment
percentage for non-union personnel approved by the Compensation Committee of the Board of
Directors for each year.
RESPONSE:
DSM employees record labor-related expenses under the ORG number T52. The table below
identifies the annual labor expenses, the salary/merit adjustment percentage for non-union
personnel approved by the Compensation Committee of the Board of Directors, and the number of
Full Time Equivalent (FTE) positions funded under ORG T52 for each requested year.
2019
2020
2021
Natural Gas
$130,344
$158,327
$1s4.126
Electric
$866,483
$923,365
$835.r l8
Total
s996,827
$1,081,692
$989.243
Increase
3.0%
3.lo/"
3.0o/"
FTE
26
27
26
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUzuSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU -E-22- I 3 /AVU-G -22 -0 5
IPUC Staff
Production Request
Staff- 12
DATE PREPARED: 0910112022WITNESS: N/A
RESPONDER: Ryan Finesilver
DEPARTMENT: Energy Efficiency
TELEPHONE: [phone]
REQUEST:
Please provide a current organizational chart by title and name showing all Avista ernployees who
charge time to the electric and gas DSM riders. Please include complete job descriptions, required
qualifications, salary ranges, bonus opportunities, and total compensation ranges, including
benefits, for all anployees identified in this request.
RESPONSE:
Please see Staff-PR-l2 - Attachment A for the current organizational chart for the Energy
EfEciency Team.
Please see Staff-PR-I2 - Attachment B for the complete job descriptions, including required
qualifications, for the Energy Efficiency Team.
Please see Staf[-PR-l2C - Attachment C (CONFIDENTIAL) for a listing of salary ranges for each
job description. These ranges are based on the current market levels.
Please see Staff-PR-l2 - Attachment D for a copy of Avista's 2022Benefit Book for non-union
ernployees hired on or after January t,2014.
Please see Staff-PR-l2 - Attachment E for a copy of Avista's 2022Employee Annual Incentive
Plan for non-union employees.