20090324AVU to Staff 1-21.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
~~~'V'STA.
Corp.
R24 M~\\~ \0iuu~ii~,
March 23,2009
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702-5918
Attn: Donald Howell & Krstine Sasser
Deputy Attorneys General
",
Re: Production Request ofthe Commission Staff in Case Nos. A VU-E-Ù9-01 and
A VU-G-09-01
Dear Mr. Howell and Ms. Sasser,
Enclosed are an original and three copies of Avista's responses to IPUC Staffs production
requests in the above referenced docket. Included in this mailing are Avista's responses to
production requests 001 through 021. The electronic versions of the responses were emailed on
03/23/09 and are also being provided in electronic format on the CDs included in this mailing.
Also included is Avista's CONFIDENTIAL response to PR 006C, OlOC, 018C, 019C and
021C. These responses contain TRADE SECRET, PROPRIETARY or CONFIDENTIAL
information and is separately filed under IDAPA 31.01.01, Rule 067 and 233, and Section 9-
340D, Idaho Code, and pursuant to the Protective Agreement between A vista and IPUC Staff
dated January 8, 2009. It is being provided under a sealed separate envelop, marked
CONFIDENTIAL.
If there are any questions regarding the enclosed information, please contact me at (509) 495-
4546 or via e~mail at j oe.miler(favistacorp. com
Sëliy~
Joe Miler
Regulatory Analyst
Enclosures
CC (Paper):The Energy Project (Roseman)
WUTC Staff (Trautman - 3 copies)
ICNU (Schoenbeck, Van Cleve)
Public Counsel (fftch)
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
A VU-E-09-01' / A VU-G-09-01
IPUC
Production Request
Staff-001
DATE PREPARD:
WITNSS:
RESPONDER:
DEP ARTMENT:
TELEPHONE:
03/17/2009
Bruce Folsom
Lori Hermonson
Energy Solutions
[phone]
On page 4, lines 7-8, of Bruce Folsom's pre-filed testimony is the statement that "...Virtally all
customers have had the opportnity to paricipate and a great many have directly benefited from
the (energy efficiency) program offerings." Please provide an estimate for the number of different
customers by customer class who paricipated in one or more of Avista's energy effciency
programs in 2008.
RESPONSE:
In 2008,243 unique non-residential customers completed 437 energy efficiency projects and were
paid incentives by Avista. The Company had 453 low income customers paricipating in 1,379
fully fuded measures in 2008. Finally, the Company had 12,879 residential customers
participating in 18,654 energy effciency measures this past year. These numbers reflect system
incented paricipants only for the northern division (Idaho and Washington) and does not include
participants at educational events or technical trainings.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION.JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU~E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-002
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
03/16/2009
Bruce Folsom
Kelly Conley
Market Solutions
[phone]
REQUEST:
Please provide a copy of all the customer communications materials used by A vista in 2008 to
promote customer participation in its energy efficiency programs.
RESPONSE:
The following are customer communication materials provided in "StafCPR_002-Attachment-A"
and "Staff_PR_002-Attachment-B" that were used by Avista in 2008 to promote customer
paricipation in the Company's energy efficiency programs. Due to the voluminous natue of the
attached files they are being provided in electronic format only.
1.Connections Newsletters (11 issues).2.CFL Brochure
3.CFLCoupon
4.JACO Insert
5.JACO Postcard
6. Energy Use Guide
7. ELB Residential Tip Sheet
8. Business Tip Sheet
9. Appliance Rebate Form
10. Home Improvèment Rebate Form
11. ENERGY ST AR(ß new construction rebate form
12. New Construction Rebate Fonn
.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JURISDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
DATE PREPARD:
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03116/2009
Bruce Folsom
Kelly Conley
Market Solutions
[phone]
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-003
REQUEST:
A) Please provide a copy of Avista's marketing plan for its energy efficiency programs. B) Please
provide a description and schedule for TV, newspaper, radio advertising, bil inserts, direct
mailers, etc. used to promote these programs. C) Does Avista target high energy users with direct
offers of energy audits? If so, please explain. If not, why not?
RESPONSE:
A) Please see "StafCPR _ 003 Attachment A" which provides the 2008 "Every Little Bit"
Marketing Plan.
B) Please see "StafCPR_003 Attachment B" which provides the 2008 DSM Campaign
Summary. Due to the voluminous nature of the attached file it is being provided in
electronic format only.
C) While A vista has not yet run a campaign targeting high energy users specifically, we have
run two campaigns similar in nature.
a. Advertising our online home energy audit, to encourage proactive management of
energy by helping to identify areas of efficiency that can be improved.
b. Once customers complete the online home energy audit tool, information on
rebates, along with the energy use guide, is sent to their attention, with a letter
thaning them for their commitment toward managing their energy use. Please see
"StafCPR _003 Attachment C" containing infonnation related to our Home Energy
Audit program.
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StafCPR_003 Attachment C Page 1 of 3
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Thank you for your recent interest in keeping your home nice and comfy
and taking our Home Energy Audit. We truly appreciate the time you
took to use this valuable tool and help your home become that much
more energy efficient. Based on your responses, we're including some
useful information to aid in your energy conservation efforts.
Energy efficiency is one of the most important initiatives we focus on as
a company, and support from customers like you is not only essential,
but also very much appreciated. As demand for energy continues
to grow, we're fully committed to meeting your needs reliably and
responsibly. After all, promoting energy efficiency is not only better for
you, but for the environment as welL.
In 2008 alone, our customers in Washington and Idaho have
saved almost 73 million kWh of electricity and nearly 2 million
therms of natural gas - enough energy to power more
than 4,000 homes on an ongoing basis. This kind
of energy savings really does make a difference,
and it's through your continuing commitment
that helps make it happen.
~'\,/'r.~;
Thank you again for your time in taking the
online energy audit. And thank you for doing
your part and realizing that every little bit
really does add up.
.
.
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JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-0l 1 A VU-G-09-01
IPUC
Production Request
Staff-004
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03116/2009
Bruce Folsom
Lori Hermonson
Energy Solutions
[phone]
For Avista's Idaho-funded DSM portfolio, please provide a breakdown of total costs in 2008,
including incentive payments to paricipants, direct program administrative costs, direct program
evaluation costs, and allocated indirect administrative and evaluation costs with a description of
how such allocations were made.
RESPONSE:
Please see the attached spreadsheet "Staff PR 004 Attachment A" for a breakdown
of the 2008
total costs. Please note, expenditures are directly charged to either a state or to an allocated project
which is distributed between Washington and Idaho (70/30 percent split),
.
.
.
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AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E~09-01 1 AVU-G-09-01
IPUC
Production Request
Staff-005
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
03116/2009
Bruce Folsom
Jon Powell
Energy Solutions
[phone]
REQUEST:
For each Idaho-funded DSM program please provide the pre-implementation estimated
post-implementation evaluation budget and the amount actually spent on post-implementation
evaluations from 2004 through 2009 to date. Where Idaho costs are an allocation of larger costs,
explain the allocation method.
RESPONSE:
Post implementation evaluation as defined by A vista includes two pars, program evaluation, and
energy effciency measure (EEM) verification. For the most par, program evaluation is
performed by two staff analysts with the help of other DSM staff and EEM verification is
pedormed by the DSM engineerng staff, The Engineering group uses the IPMV (International
Pedormance Measurement and Verification Protocol) guidelines for their EEM verification
work. Please find the attached file in "Staff PR 005-Attachment A" related to IPMV, Due to
the voluminous nature of the attached document, it is being provided in electronic format only.
The work of post implementation evaluation, which includes both program evaluation and EEM
verification, and nonnal DSM implementation, has not been split out in terms of labor in the
past. The functions utilize the same engineering and analytical resources (both labor and
non-labor) and are par of an integrated effort to identify cost-effective options for the customer
and to work with that customer towards installing and commissioning those effciencies. Due to
the nature of this integrated approach it is not possible to meaningfully separate the expenditures
for these two fuctions.
Both the program evaluation and EEM verification functions use a high degree of awareness of the
other entities operating in our field to reduce the unnecessar duplication of work. These entities
include, but are not limited to, the Northwest Power Conservation Council Regional Technical
Forum (RTF), Energy Star(, Consortium for Energy Efficiency (CEE), Electric Power Research
Institute (EPRI), and others. We have and wil continue to check the validity of deemed savings
that come from other entities with intermittent EEM verification. Avista is presently in the process
of changing our EEM verification system to allow for better documentation of EEM's and
scheduled revisiting to adjust for changes in savings as well as measure costs. That new system
wil allow more detail to be shown in the form of costs for post implementation evaluation. An
example of this process was the EEM verification study on pre-rinse sprayer nozzle savings. The
Company implemented the program using the RTF deemed value of 3,800 kWhs and 176
therms and through our EEM verification study found our customers saved i ,006 kWhs and 44
therms. RTF numbers were conservative compared to others in the industr. The costs of the
extra study work were included in the cost of the delivery of the program and were not split out by
.
.
.
Response to Staff Request No. 005
Page 2
jurisdiction. Please find the spray nozzle verification results provided as par of "StafCPR _ 005
Attachment-B".
Our planned system wil use Microsoft Project Manager Pro (MS Project) softare to layout the
design of our verification as well as track the costs and schedule of verification tasks as well as
establish our future prescriptive offerings. The EEM Verifications being planed now and listed
as answers to later production requests wil be in this new format.
Because A vista uses a custom program approach to establish futue prescriptive offerings, we may
spend more effort on post implementation work than some other utilities building programs with
only deemed savings. When there is not deemed savings from a reliable source, we wil use
multiple custom projects to extrapolate savings for our wider service terrtory programs using
modeled savings from many different projects. Prior to having better data that we plan to have in
the future, we can estimate that EEM verification takes about 25% of our engineers' time counting
all site specific project modeling. Adding in analyst work and others in the departent, between
2.5 and 3 FTE are spent in all of our post implementation evaluation. If one further assumes 30%
of our work is done in Idaho, then the amount devoted would be between .75 and.9 FTE for Idaho
alone.
.
.
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JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-006
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03116/2009
Bruce Folsom
Tom Lienhard
Energy Solutions
[phone]
Please list and briefly describe all post-implementation evaluations of Idaho-fuded DSM
programs or general DSM management completed by or for A vista from 2004 though 2009 to
date. Include in the descriptions the evaluation costs and the names and affiliations of the primar
evaluators and the process(es) by which any 3rd party evaluators were chosen. Include both
internal and external evaluations of direct energy and peak demand impacts, program processes,
portfolio management, and educational andlor market transformation effects. Provide copies of,
or readily accessible references to, each report listed.
RESPONSE:
Please see Avista's response 006C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated Januar 8, 2009.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
DATE PREPARD:
WITNSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03117/2009
Bruce Folsom
Lori Hermanson
Energy Solutions
[phone]
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-007
REQUEST:
Please describe how post-implementation evaluations or informal questions regarding
assumptions have been used by Avista to improve its DSM programs and/or to improve its overall
resource planng. Include supporting discussion notes, letters and memorandums, all whether on
paper or electronically distributed. (An example of an informally questioned assumption is the life
of vending misers.)
RESPONSE:
The custom project program, or site specific program, allows any customer who has the potential
for savings in electrcity or natual gas, and which has an incremental cost associated with that
measure with a simple payback of greater than one year, to request an evaluation of the measure
and possibly receive an incentive, Avista uses this program to monitor parameters that apply to
our efficiency delivery programs. Two significant aspects of change that occur with measures in
energy efficiency measure (EEM) verifièation are the savings from a paricular measure based on
the connected device savings and the cost of the device or measure. Over time, even appropriate
and cost effective measures change to be either incented differently or eliminated from incentive.
An example ofthis is the Light Emitting Diode (LED) exit sign, Early in the incentive process the
cost of the LED was up to $100 per sign, however their savings were greater since they were
replacing a device that used i 0 times the energy and were on 8760 hours per year, The Company's
incentive could reach as much as half of the installed cost of this measure based on our incentive
calculations. As the market progressed however, the price dropped precipitously and we changed
our incentive to be the lowest price we could find for an LED unit which was $25. Because of this
phenomenon, we routinely review the cost and savings of the measures. Other factors that are
taken in to account on at least an anual basis are the changes to the baselines for savings due to
code changes. Either we wil give a smaller incentive for a new device beating the baseline in new
purchases, or we wil reduce the incremental cost when a measure was completed in an end-of-life
situation to account for the increased baseline efficiency of the new product.
In some cases the parameters surrounding a measure change the value of its savings. In one study
for a school district on a software for networked computers, we decreased our deemed savings
because our EEM verification showed that because the distrct had all new low energy monitors
and the staff were diligent in shutting off the computers, the districts savings potential was well
under pre-implementation deemed values. The measure was stil cost-effective however. Please
refer to the previously provided Confidential attachment "StafCPR 006C-CONFIDENTIAL
Attachment-C" to see the school district network software data. The spray nozzle program
mentioned in Production Request Staff-005 was another example ofthis type of change in savings.
.
.
.
JURSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
03116/2009
Bruce Folsom
Lori Hermanson
Energy Solutions
[phone]
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-008
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
REQUEST:
Please provide post-implementation benefit/cost (B/C) ratios estimated by or for Avista's energy
efficiency programs in Idaho with electronically executable cost-effectiveness formulae. Include
BIC ratios from all perspectives considered, e.g. TRC, Utility, Paricipant and Non-Participant.
Include complete descriptions of, and bases for, all assumptions (e.g. net-to-gross savings ratios,
measure life, discount rate,), values (e.g. demand, energy and non-energy savings, tax credits) and
calculations used in estimating the BIC ratios. Describe all sensitivity analyses of any varables
and assumptions used in estimating BIC ratios.
RESPONSE:
The attached Excel file "Staff_PR_008-Attachment A" was used to generate Avista's Triple-E
Report for Januar through November, 2008. This Excel sheet is fully functional and wil allow
for the calculations to be traced from the benefit-cost ratios back to source inputs for each
program. Please note that:
. The calculations of the benefit-to-cost ratios are detailed in the worksheet labeled 'Table 9E
(ID)' and 'Table 9G (ID)' and include specific cost categories accumulating towards the
calculation of the benefit-to-cost ratio,
. All calculations of energy benefits made within the Triple-E Report are based upon gross
paricipation. There has been no adjustment for either 'free-riders' or 'free-drivers' in the
energy calculations of local programs. Paricipation in regional market transformation
programs are not a part of the evaluation performed in the Triple-EReport.
. The weighted average measure life of the savings within the report is 14.9 years (for
electric measures) and 18.8 years (for natual gas measures).
. A 7.08% discount rate was used throughout the Triple-E Report analysis.
. The energy avoided costs are contained in the sheet named "avoided costs". The,electric
energy costs do have energy and capacity components to them. For puroses of the
calculation of the Non-Paricipant and Paricipant standard practice tests, the paricipant
energy costs savings are based upon an average retail rate that includes both energy and
demand components.
. No tax credits are incorporated into the calculations for this Triple-E Report The
California Standard Practice Manual (July 2002) does require tax credits to be incorporated
into the Total Resource Cost calculation, but none of these have been quantified for
inclusion in the report covering this time period. As tax credits become an increasingly
.
.
.
Response to Staff Request No. 008
Page 2
large component of the overall economics of energy-efficiency it is A vista's intent to
quantify these and include them into the Total Resource Cost analysis, but they wil be
contained as a separate line item to facilitate an easy recalculation of this test without the
inclusion of tax credits.
Since the Triple-E Report is based upon actual results, the Company generally does not formally
perform sensitivity analyses around these results.
.Table 9E (10)Electric Cost-Effectiveness Benefit/Cost Statistics by Customer Segment
Total Resource Utilty Participant Non-Participant
Cost Test Cost Test Test Test
Non-Residnetial 1.99 4.26 2.17 1.18
Limited Income 1.98 1.73 NA 0.77
Residential 2.32 4.89 3.88 0.91
PORTFOLIO 2.10 4.33 2.79 1.05
NOTES:
Cost-effectiveness calculations do not include costs or benefits associated with regional programs.
"N/A" is listed for segments with benefis, but no costs.
Table 9G (10)Gas Cost-Effectiveness Benefit/Cost Statistics by Customer Segment
Total Resource Utiity Participant Non-Participant
Cost Test Cost Test Test Test
Non-Residential 0.42 2.27 0.74 0.54.Limited Income 0.71 0.63 NA 0.32
Residential 1.10 2.36 2.94 0.48
PORTFOLIO 0.58 2.19 1.13 0.51
NOTES:
Cost-effectiveness calculations do not include costs or benefis associated with regional programs.
"N/A" is listed for segments with benefits, but no costs.
.
Rpt Pg 9 StafCPR_008-Attachment A.xls Page 1 of 4
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i
t
s

$
12
,
8
5
2
,
0
3
5
$
17
2
,
4
3
0
$
13
,
0
2
4
,
4
6
5
Re
g
u
l
a
r

I
n
c
o
m
e
Li
m
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t
e
d

I
n
c
o
m
e
El
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t
r
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c

N
o
n
-
P
a
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c
i
p
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t

T
e
s
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p
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c
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a
v
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a
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$
16
,
8
6
5
,
3
0
0
$
40
6
,
5
5
6
$
17
,
2
7
1
,
8
5
7
No
n
-
P
a
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c
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p
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b
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$
16
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8
6
5
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3
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0
$
40
6
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5
5
6
$
17
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2
7
1
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8
5
7
El
e
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c

R
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e

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o
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s

$
12
,
3
2
2
,
2
1
7
$
29
2
,
1
8
8
$
12
,
6
1
4
,
4
0
6
No
n
-
i
n
c
e
n
t
i
v
e

u
t
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l
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y

c
o
s
t

$
1,
1
5
5
,
0
7
6
$
13
,
5
6
2
$
1,
1
6
8
,
6
3
8
Cu
s
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n
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$
2,
5
2
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,
2
0
1
$
22
1
,
6
4
6
$
2,
7
4
2
,
8
4
7
No
n
-
P
a
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c
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p
a
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t

c
o
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s

$
15
,
9
9
8
,
4
9
5
$
52
7
,
3
9
6
$
16
,
5
2
5
,
8
9
1
No
n
-
P
a
r
t
.

r
a
t
i
o
1.
0
5
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7
7
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t

N
o
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b
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s

$
86
6
,
8
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5
$
(1
2
0
,
8
4
0
)

$
74
5
,
9
6
6
Li
m
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t
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d

I
n
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29
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$
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$
Ov
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p
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5
(5
4
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5
0
7
)
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0
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8
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0
1
7
0
NO
T
E
S
:
Co
s
t
s

a
s
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d

w
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t
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m
e
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n

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p
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r
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e
x
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f
r
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l
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o
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-
e
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f
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s

c
a
l
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l
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/
A
u

i
s

l
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f
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b
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g

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3
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1
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g
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n
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To
t
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l

R
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o
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$
16
7
,
8
8
6
$
-
$
16
7
,
8
8
6
No
n
-
E
n
e
r
g
y

b
e
n
e
f
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s

$
24
0
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0
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4
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-
$
24
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5
4
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t
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l

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1
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$
89
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8
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4
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C

b
e
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4
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2
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1
1
8
$
89
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8
7
6
$
4,
5
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1
,
9
9
4
No
n
-
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n
c
e
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t
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v
e

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t
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l
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y

c
o
s
t

$
34
8
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0
3
1
$
13
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0
7
4
$
36
1
,
1
0
6
Cu
s
t
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r

c
o
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$
7,
2
3
6
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8
8
7
$
11
2
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7
3
3
$
7,
3
4
9
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6
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9
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C

c
o
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s

$
7,
5
8
4
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9
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8
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12
5
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7
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7
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5
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C

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a
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t

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(3
,
1
7
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8
0
0
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$
(3
5
,
9
3
1
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$
(3
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g
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l
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r

I
n
c
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m
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d

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n
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r
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-
$
15
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5
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s

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i
l

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4
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14
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5
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6,
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2
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8
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7
No
n
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n
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b
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24
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5
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s
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11
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7
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7
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r
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t

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59
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15
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2
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74
7
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6
9
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m
m
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r
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f

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s

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t
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4,
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No
n
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n
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t
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C
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2
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3
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6
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9
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g
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l
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r

I
n
c
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m
e
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m
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d

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c
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s

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o
n
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c
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e
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89
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7
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4
No
n
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t

b
e
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s

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4,
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4
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1
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89
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s

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3
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$
14
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$
6,
1
2
0
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8
4
7
No
n
-
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n
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t
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e

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t
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y

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o
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34
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3
1
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13
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7
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36
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0
6
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s
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n
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4
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,
2
0
7
$
12
9
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6
4
3
$
1,
5
8
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8
4
9
No
n
-
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t

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o
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s

$
7,
7
8
2
,
5
8
3
$
28
3
,
2
1
8
$
8,
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6
5
,
8
0
1
No
n
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r
t
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a
t
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o
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5
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3
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5
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t

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n
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e
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(3
,
7
7
8
,
4
0
5
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(1
9
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,
3
4
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$
(3
,
9
7
1
,
7
4
7
)
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s
c
r
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p
t
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v
e

S
t
a
t
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s
t
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c
s
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n
u
a
l

k
W
h

s
a
v
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s
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n
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h
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m

s
a
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v
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R
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c
o
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p
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m

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v
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l
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C
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c
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p
e
r

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h
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m

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Re
g
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l
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r

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n
c
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m
e
po
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l
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o
92
8
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2
8
4
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0
,
4
1
5
1.
2
5
2
3

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0.
2
9
7
6

$
Li
m
i
t
e
d

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n
c
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m
e
po
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l
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7
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1
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5

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3
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e
r
a
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l

p
o
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l
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o
92
8
,
2
8
4
61
0
,
1
2
3
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2
3
5
3
0.
3
1
1
6
NO
T
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S
:
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s
t
s

a
s
s
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c
i
a
t
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d

w
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m
e
m
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p

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n

r
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n
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l

p
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m
s

a
r
e

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x
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l
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d
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d

f
r
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m

a
l
l

c
o
s
t
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e
f
f
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c
t
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s

c
a
l
c
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l
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t
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o
n
s
.
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/
A
"

i
s

l
i
s
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d

f
o
r

s
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g
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w
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b
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b
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o
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t

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a
f
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.
.
AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-009
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03116/2009
Bruce Folsom
Tom Lienhard
Energy Solutions
[phone]
REQUEST:
To the extent that assumptions and varable values of post-implementation BIC ratios differ from
those used in pre-implementation DSM "potential" studies, please describe and explain those
differences.
RESPONSE:
As was explained in Avista's response to Production Request Staff-007, the Company uses a
combination of the custom program (site specific), and our anual business plan to monitor
parameters that apply to our effciency delivery programs, Parameters that affect change in
post-implementation benefitlcost (B/C) ratios include changes in the device efficiency or efficacy
over time, changes in the cost of energy, and the change in the device cost over time. Also, Avista
follows the changes to codes and requirements to make sure we are eliminating incentives where
the customer must pedorm at that level by law. We track these results and make changes to our
programs on an anual basis when we are re-working our business plan. With the new parameters,
we ru a new duel fuel incentive calculator to find out the appropriate incentive strctue to use for
measure. The engineering deparent is responsible for costs of equipment, effcacy and
efficiency changes to devices and interacting physical parameters and code assessment. Our
Analysts update the duel fuel incentive calculator (DFIC) which takes care of a myrad of energy
cost issues. The DFIC is updated several times per year, at a minimum every time there is a change
in energy costs to the customer. Because of this process, custom or site specific measures are
always calculated with the proper BIC ratios.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-OlO
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03/1612009
Bruce Folsom
Tom Lienhard
Energy Solutions
[phone]
Please describe any post-implementation DSM program evaluations that are not yet completed,
but are currently in progress.
RESPONSE:
Please see Avista's response OLOC, which contains TRAE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated January 8, 2009.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff~Oll
DATE PREPARD:
WITNESS:
RESPONDER:
DEP ARTMENT:
TELEPHONE:
03116/2009
Bruce Folsom
Tom Lienhard
Energy Solutions
[phone]
REQUEST:
Please describe any post-implementation DSM program evaluations that are curently in a plang stage.
RESPONSE:
Curently being considered for energy effciency measure (EEM) verification by the engineering
and analyst group are the following studies:
-Residential hot water use study across demographics - This study is proposed to obtain
a better understanding of domestic hot water use in both consumption and energy use in
residential applications.
.Connected load T -12 to T -8 conversion measurement - This study is planed to check
the validity of prescriptive lighting savings assumptions. The study would pre-monitor and
post-monitor electrical load data for chosen number of prescriptive installations to measure
exact savings. The independent varable of on-time would be tested while controlling the
lighting measure type change from fluorescent tubular T -12 to fluorescent tubular T-8
implementations.
.Demand Control Ventiation (DCV) measure verifcation - This study would be
performed to assess if and how DCV measure should be prescriptively incented and the
value for that incentive based on room type, A vista presently uses a method derived from
several simulation models to arve at savings for reducing the amount of air that is
introduced into a space when occupancy is diminished.
-Residential heating, ventilating, air conditioning (HV AC) and shell study - This study
would address the highly coupled nature of heating and cooling systems and the envelope
conditions of the building. Infiltration, insulation, and heating and cooling system
efficiency changes would be controlled to check our savings assumptions in these key
areas.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO,:
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-012
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
0311612009
Bruce Folsom
Bruce Folsom
Energy Solutions
[phone]
REQUEST:
Beginning on page 16, line 24, of Bruce Folsom's pre-filed testimony is a summar of
cost-effectiveness of Avista's combined energy efficiency efforts in Washington and Idaho. There
seems to be an implication that if program benefits exceed costs, then the program is de facto
prudent. Is a BIC ratio greater than 1.0 Avista's sole criterion for determining the success of
its
programs? Or does the Company also evaluate program success based on possible alternative
demand-side costs, e.g. whether all expenses and direct and indirect administration and overhead
are reasonable and necessary and whether a program's customer incentives are set to maximize net
utility benefit? If so, please provide documented examples of the use of such additional critera.
RESPONSE:
The Company does not believe that finding an individual program or portfolio of programs as
cost-effective under any or all of the standard practice tests, tyically applied to DSM programs, is
alone suffcient to deem those expenditures to be prudent. They are an important factor in the
determination of prudence, but they are not and should not be the sole determinant. Other factors
in determining prudence do include the need to find utility expenditures for administration and
customer direct incentives to be reasonable and necessary to obtain the desired program or
portfolio impact.
The Company formally and informally tracks a number of diagnostic statistics to provide
information for managing programs and the DSM portfolio. These include, but are not necessarly
restricted to, benefit to cost ratios for all standard practice tests, net benefits of all standard practice
tests, "sub-TRC" calculations (the contribution of individual investments to portfolio total
resource cost), levelized total resource cost and utility cost per kWh or therm, total resource cost
per first year kWh or therm, the percentage of customer incremental cost offset by customer direct
incentives, customer direct incentives as a percentage of total utility costs, the ratio of electrc and
natural gas incentive and non-incentive expenditures and many other related statistics. These
measures and many more are necessary to provide the insights into the programs necessary for
proper portfolio management. These calculations are included in the Company's "Dual-Fuel
Incentive Calculator" (DFIC) model applied to individual site-specific projects, customized
analyses for the optimization and targeting of investments in DSM outreach, enhancement of audit
infrastructure, training and so on, within the Triple-E Report and other materials provided to the
Triple-E board to provide for meaningful input and a wide varety of other analyses performed on
a daily basis.
.
.
.
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0311612009
Bruce Folsom
Lori Hermanson
Energy Solutions
[phone]
IDAHO
A VU-E-09-01 1 A VU-G-09-0l
IPUC
Production Request
Staff-013
REQUEST:
On page 9, lines 19-22, of Bruce Folsom's pre-filed testimony is an estimate of NEE A savings of
2.0 aMW (17,520 MW in 2007 in Avista's serice area (Washington and Idaho) at a cost of 0.07
centslkWh. Assuming Mr. Folsom's 0.07 cents per kWh has a misplaced decimal point, please
provide the assumptions and calculations the Company andlor NEEA used to estimate those
savings numbers and any analyses by Avista to assess the veracity ofthose electricity savings, the
value of such savings, and an estimate for the share of those savings that benefit Idaho customers.
If available, please provide similar assumptions, calculations and analyses for 2008.
RESPONSE:
The 0.07 centslkWh referred to on page 9, lines 19-22, of Bruce Folsom's pre-filed testimony was
the amount Avista paid, $0.07 per first year kWh, for the savings claimed from the NEEA. The
calculation of savings was based on the amount paid to NEEA for 2007, divided by the A vista
portion of the first year kWh saved. The cost per kWh was provided in this format rather than
making assumptions regarding NEEA's weighted average measure life of projects for that time
period or their discount rate.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-014
DATE PREPARD:
WITSS:
RESPONDER:
DEP ARTMENT:
TELEPHONE:
03/16/2009
Bruce Folsom
Renee Coelho
Energy Solutions
[phone]
Please provide copies of customer and vendor complaints to A vista or its contractors from 2006
through 2008 regarding any of its energy efficiency programs. Also provide the ultimate
resolutions of such complaints. '
RESPONSE:
The Company has not had any "offcial" complaints regarding energy efficiency or contractor
issues. Customers or contractors usually contact A vista directly if they are upset about a program
issue or protocol and they are handled on a case by case basis.
.
.
.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
03/1612009
Bruce Folsom
Chrs Drake
Energy Solutions
[phone]
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-015
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
REQUEST:
Please separately identify and quantify any Idaho Tarff Schedule 91 or 191 fuds used for
personnel, administration and/or marketing expenses related to promotion of renewable energy
resources or expenses related to bill payment assistance.
RESPONSE:
There were no Tarff Schedule 91 or 191 fuds used for personnel, administration and/or
marketing expenses related to promotion of the renewable energy resources programs known as
Buck-A-Block or the Renewable Generation Incentive (RG!). Buck-A-Block is the voluntary
renewable energy program where customers may purchase renewable energy credits to offset their
environmental impacts. The RGI is a program in Washington that passes through a state tax credit
to customers who generate with qualifyng renewable energy systems.
There are Tariff Schedule 91 fuds available for qualifyng distributed renewable energy
measures. They are included in our Tariff Schedule 90 listing on the A vista website along with the
rest of the tarff language, however, there is no specific promotion or marketing of energy
efficiency incentives for distrbuted generation. A vista personnel and Tarff Schedule 91 fuds are
utilized for responding to customer inquiries, contracting and paying incentives as par of the
site-specific energy efficiency process. In 2008, there were three customers who completed
distributed generation performance projects in Idaho and were paid a total of $1,199.60 in
incentives for 5,995 kWh claimed savings.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-01 1 A VU-'G-09-01
IPUC
Production Request
Staff-016
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03/1612009
Bruce Folsom
Jon Powell
Energy Solutions
[phone]
Please provide copies of all demand side management (DSM), e.g. energy efficiency, conservation
or demand response, business plans prepared by or for A vista Utilities from 2004 through 2008 in
which its Idaho service area is included.
RESPONSE:
A vista began a formal DSM planing process in 2007. Durng 2007, A vista positioned its series of
Heritage Plan road maps as the business plan for that year. The 2007 Heritage Plan document is
provided as "StafCPR_016-Attachment A". The 2008 and 2009 business plans are provided as
"StafCPR_016-Attachment B" and "Staff_PR_016-Attachment C". Due to the voluminous
nature of the attached documents they are being provided in electronic format only.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
REQUEST:
AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-017
DATE PREPARD:
WITESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0311612009
Bruce Folsom
Lori Hermanson
Energy Solutions
[phone]
Please provide an organization char of Avista's Demand Side Management unit, including its
placement within the larger A vista organization.
RESPONSE:
Provided as "StafCPR_017-Attachment A" is Avista's Demand Side Management group
organization char, along with it's placement within the Avista organzation.
.
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.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
REQUEST:
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMTION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-018
DATE PREPARD:
WITNSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
0311612009
Bruce Folsom
Linda Gervais
State & Federal Regulation
[phone]
Please provide names and job titles with descriptions of duties for all A vista employee positions in
the Demand Side Management unit.
RESPONSE:
Please see Avista's response 018C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIA information and exempt from public view and is separately filed under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated January 8, 2009.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
REQUEST:
A VISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-019
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03/16/2009
Bruce Folsom
Bruce Folsom
Energy Solutions
[phone]
Please provide the salary range, bonus range, and total compensation range, including benefits, for
each employee in the Demand Side Management unit.
RESPONSE:
Please see Avista's response 019C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately fied under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated Januar 8, 2009.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-020
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03/18/2009
Bruce Folsom
Linda Gervais
State & Federal Regulation
[phone]
Please provide resumes of all employees in the Demand Side Management unit. (Personal
information not pertinent to A vista duties may be redacted).
RESPONSE:
Please see Avista's response 020C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately fied under
IDAPA 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated Januar 8, 2009.
.
.
.
JUSDICTION:
CASE NO:
REQUESTER:
TYE:
REQUEST NO.:
REQUEST:
AVISTACORPORATION
RESPONSE TO REQUEST FOR INFORMATION
IDAHO
A VU-E-09-01 1 A VU-G-09-01
IPUC
Production Request
Staff-021
DATE PREPARD:
WITSS:
RESPONDER:
DEPARTMNT:
TELEPHONE:
03/1612009
Bruce Folsom
Linda Gervais
State & Federal Regulation
[phone]
A) Please provide the total number of A vista employees outside the Demand Side Management
unit for which the tariff riders paid some portion oftheir compensation or other expenses, B)
Please provide the total amount of such employee compensation or other expenses funded by the
tariff riders.
RESPONSE:
Please see Avista's response 021C, which contains TRADE SECRET, PROPRIETARY or
CONFIDENTIAL information and exempt from public view and is separately filed under
IDAP A 31.01.01, Rule 067 and 233, and Section 9-340D, Idaho Code, and pursuant to the
Protective Agreement between Avista and IPUC Staff dated Januar 8, 2009.