20120830Avista to Staff 1-17.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 RECEIVE!)
?0I2AEJG30 AMtO53
JIVISTA
Corp.
August 29, 2012
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702-5918
Attn: Karl T. Klein
Deputy Attorney General
iTfI TF3
Re: Production Request of the Commission Staff in Case Nos. AVU-G-12-03 / AVU-G-12-06
Dear Mr. Klein,
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 - 017.
If there are any questions regarding the enclosed information, please contact Paul Kimball at
[phone] or via e-mail at [e-mail]
Sincerely,
Paul Kimball
Regulatory Analyst
Enclosures
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/22/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Joe Miller
TYPE: Production Request DEPARTMENT: State & Federal Reg.
REQUEST NO.: Staff-Ol TELEPHONE: [phone]
REQUEST:
Please provide all workpapers supporting Avista's request to decrease Schedule 191, including,
but not limited to, monthly forecasted expenses and revenue by class.
RESPONSE:
Please see the attachment labeled Staff _PR_0 1 Attachment A. Please note the attached document
includes the workpapers for both the Schedule 91 and 191 filings.
I
Workpapers
ScheduleI?JVjIJ
Staff_PR_001 Attachment A
Avista
Schedule 91/191 Workpapers
RESIDENTIAL GENERAL SVC. IS. SEN. SVC. LX IS SEN SVC CLEAR WATER PUMPING ST & AREA ITS
TOTAL SCHEDULE 1 SCM. 11,12 SCH, 21,22 SCHEDULE 25 SCHEDULE 25P SCM. 30, 31,32 SCM. 4149
SILt. DETERMINANTS
•.KUWATT HOURS (KWHS)
TOTAL KWHS 3,441,832,228 1,152,311,164 344,750,074 695,050,072 331,441,545 843,005,529 61,355,713 13,918,133
ST & AREA ITS REVENUE $ 3,041,758
Present OSM Rates $ 0.00258 $ 0.00303 $ 0.00232 $ 0.00166 5 0.00146 $ 0.00242 3.64%
Present OSM Revenue $ 7,670,254 $ 2,972,963 $ 1,044,593 $ 1,612,516 $ 550,193 $ 1,230,788 $ 148,481 $ 110,720
Present Base Revenue $ 254,377,744 $ 101,973,551 $ 33,706,856 $ 52,453,070 $ 17,237,287 $ 40,679,857 $ 5,285,365 $ 3,041,758
Percentage of Current Base Volumetric Revenue 100.00% 40.09% 13.25% 2042% 6.78% 15.99% 2.08% 1,20%
Revenue Requirement Oct 2012 Sept 2013 $ 4,205,767
Revenue Spread Based on Current Allocation $ 4,205,767 $ 1,685,985 $ 557,294 $ $67,235 $ 284,994 5 672,582 S 87,386 $ 50,291
a
OSM Revenue Increase 4)ecrease> $ (3,464,487) $ (1,286,978) $ (487,299) $ (745,281) $ (265,199) $ (558,206) $ (61,095) $ (60,429)
. Proposed Rates $ 0.00146 $ 0.00161 $ 0.00125 $ 0.00086 $ 0.00080 $ 0.00142 1.65%
3 CD 3. Percentage Increase <Decrease> (45.214) (43,3%) (46.6%) (46.2%) (48.2%) (45.4%) (41.1%) (54.6%)
2'
Current Billed Revenue $ 256,728,603 5 100,141,377 $ 34,560,539 $ 53,772,087 $ 17,780,851 $ 42,020,236 $ 5,366,163 $ 3,087,350
Proposed Billed Revenue 5 253,264,117 $ 98,854,398 $ 34,073,240 $ 53,026,806 $ 17,515,652 $ 41,462,030 $ 5,305,068 $ 3,026,921
Overall Billed Percentage Increase <Decrease> (1.3%) (1.3%) (1.4%) (1.4%) (1.5%) (1.3%) (1.1%) (2.0%)
Average Monthly Bill @ 939 kWh's - Ucrease 'Oecrease> $ (1.05)
Electric Rate Calc Page 1 of 15
Avsta
Schedule 91/191 Workpapers
Normalized Test Year Usage
Residential Schedule 001
General Svc Schedule 011/012
Large Gen Svc Schedule 021/022
Extra Large Gen Schedule 25
Extra Large Gen Schedule 25P
Pumping Schedule 31/32
Street and Area Lights
Total Normalized Test Year Usage
Jul-12 Aug-12 Sep-12

84,438,537 79,089,487 70,369,751

28,675,109 27,945,935 24,535,721

59,888.009 59,776,244 54,512,719

22,841,022 25365,155 24,504,544

72,950,510 73,841,310 89,534,920

8,908,121 8,826,178 8,335,292

1,158,827 1,149,332 1,157,896
278,659,935 275,993,640 250,950,842
Oct-12 Nov-13 Dec-12 Jan-13 Feb-13 Mar-13
87,309,563 113,450,565 136,390,914 125,423,280 108,804,391 109,127,352
26,322,254 30,277,609 34,877,152 33,192,145 30,115,734 30,581,969
55,841,790 58,462,873 63,219,963 59,956,149 55,939,888 60,671,214
24,930,898 24,942,424 28,598,368 28,224,841 27,890,485 29,415,849
73,108,760 68,104,680 70,110,930 70,284,470 89,268,369 60,002,270
4,485,897 3,435,429 3jO.,1 18 3,629,708 3,359,032 3,788,040
1,157,876 1,157,806 1,7682 1,158,281 1.1591990 1,155,025
273,157,037 299,831,365 999,M,127 321,848,874 296,537,689 294,751,718
Cl)
0
I
DSM Rates
Residential Schedule 001 0100258 0.00258 0.00258 0.00146 0.00146 0.00146 0.00146 0.00146 0.00146
General Svc Schedule 021/012 0.00303 0.00303 0.00303 0.00162 0.00162 0.00162 0,00162 0.00162 0.00162
Large Gen Svc Schedule 021/022 0.00232 0.00232 0.00232 (100125 0.00125 0100125 0.00125 0-00125 0.00125
Extra Large Gen Schedule 25 0.00166 0.00166 0.00166 0.00036 0.00086 0.00086 0.00086 0.00086 0.00086
Extra Large Gen Schedule 25P 0.00146 0.00146 0.00146 0.00080 0.00080 0.00030 0.00080 0.00080 0.00080
Pumping Schedule 31/32 0.00242 0.00242 0.00242 0.00142 0.00142 0.00142 (100142 0.00142 0.00142
Street and Area Lights 3.60% 3.60% 340% 1.65% 1.65% 1.65% 1165% 1.65% 1.65%
Gross DSM Revenue Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Residential Schedule 001 $ 217,851 S 204,051 $ 181,554 $ 127,746 $ 165,993 $ 199,558 $ 183,511 $ 159,195 $ 159,668
General Svc Schedule 011/012 $ 86,886 $ 84,676 $ 74,343 $ 42,550 $ 48,944 $ 56,379 $ 53,656 5 48,683 $ 49452
Large Gen Svc Schedule 021/022 $ 138,416 $ 138,681 $ 126.470 $ 69,676 $ 72,946 $ 78,881 $ 74,809 $ 69,798 $ 75,701
Extra Large Gen Schedule 25 $ 37,916 $ 42,106 $ 40,678 $ 21,437 $ 21,447 $ 25,450 $ 24,269 $ 23,982 $ 25,294
Extra Large Gen Schedule 25P $ 106,507 $ 107,808 $ 101,521 $ 58,329 $ 54,337 $ 55,937 $ 56,060 $ 55,265 $ 47,872
Pumping Schedule 3l/32 $ 21,558 $ 21,359 $ 15,331 S 6,389 $ 4,893 $ 5,280 $ 5,170 $ 4,784 $ 5,395
Street and Area Lights $ 9,125 $ 9,125 $ 9,125 $ 4,191 $ 4,191 $ 4,191 $ 4,191 $ 4,191 $ 4,191
Total $ 618,320 $ 607,807 $ 549,022 $ 330,317 $ 372,751 $ 425,677 $ 401,665 $ 365,897 $ 367,573
Net OSM Revenue 0.996296 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Residential Schedule 001 $ 217,045 $ 203,295 $ 180,881 $ 127,272 $ 165,378 $ 198,819 $ 182,831 $ 158,606 $ 159,076
General Svc Schedule 011/012 $ 86,564 $ 84,363 $ 74,068 $ 42,393 $ 48,763 5 56,171 $ 53,457 $ 48,502 $ 49,269
Large Gen Svc Schedule 021/022 $ 137,963 $ 138,167 $ 126,001 $ 69,417 $ 72,676 S 78,589 $ 74,532 $ 69,539 $ 75,421
Extra Large Gen Schedule 25 $ 37,776 $ 41,950 $ 40,527 $ 21,358 $ 21,368 $ 25,356 $ 24,180 $ 23,393 $ 25,200
Extra Large Gen Schedule 25P $ 106,113 $ 107,409 $ 101,145 $ 58,113 $ 54,135 $ 55,730 $ 55,852 $ 55,060 $ 47,695
Pumping Schedule 31/32 $ 21,478 $ 21,280 $ 15,275 $ 6,365 $ 4,875 $ 5,260 $ 5,150 $ 4,766 $ 5,375
Street and Area Lights $ 9,091 $ 9,091 $ 9,091 $ 4,175 $ 4,175 $ 4,175 $ 4,175 $ 4,175 $ 4,175
Total $ 616,029 $ 605,556 $ 546,988 S 329,094 $ 371,370 $ 424,101 5 400,178 $ 364,542 $ 366,212
Elec Monthly Forecasted Revenue Page 2 of 15
Avista
Schedule 91/191 Workpapers
Apr-13 May-13
85,985,267 75,971,962
25M1,994 24,970,974
55,018,751 54,125,832
27,136,590 27,094,602
70,845,390 73,721,060
3,777,117 4,891,932
Jun-13
13,459,985
24,852,159
52,904.220
27,225,652
71,253,080
6,102,281
Jul-13
85,154,154
29,483,674
61,202,818
27,822,652
72,950,310
8,833,254
Aug-13
89,078,817
28,862,814
81,616,466
29,080,989
73,841,310
8,992,256
Sep-13
71,154,914
25,291,597
56,092,508
28,078,197
69,534.920
6,443,849
Annual Total
1,152,311,164
344,750,074
695,050,072
331,441,545
843,005,529
61,355,713
0.00146 0,00146 0.00146 0.00146 0.00146 0.00146
0.00162 0.00162 0.00162 0.00162 0.00162 0.00162
0.00125 0.00125 0.00125 0.00125 0.00125 0.00125
0100086 0.986 0.00086 0.00086 0.00086 0.00086
0.00080 0.00 0.00080 0.00080 0.00080 0.00080
OL)0142 0.00142 0.00142 0.00142 0.00142 0.00142
1.65% 1.65% 1.65% 1.65% 1.65% 1,65%
0
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Annual Total
$ 125,808 $ 111,157 $ 107,482 $ 124,592 $ 117,166 5 104,109 $ 1,685,985
$ 41,887 $ 40,366 $ 40,174 $ 47,661 $ 46,657 S 40,884 $ 557,294
> $ 68,646 $ 67,534 $ 66,010 $ 76,365 $ 76,881 $ 69,988 $ 867,235
$ 23,334 $ 23,298 $ 23,410 $ 23,924 $ 25,006 $ 24,143 5 284,994
$ 56,523 $ 58,818 $ 56,848 $ 58,203 $ 58,913 $ 55,478 5 672,582
$ 5,380 $ 6,967 $ 8,691 $ 12,581 $ 12,679 $ 9,177 5 87,386
$ 4,191 $ 4,191 $ 4,191 $ 4,191 $ 4,191 $ 4,191 $ 50,291
$ 325,768 $ 312,331 $ 306,807 $ 347,515 $ 341,493 $ 307,971 $ 4,205,767
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Annual Total
$ 125,342 $ 110,745 $ 107,084 $ 124,130 $ 116,732 $ 103,723 $ 1,679,740
$ 41,732 $ 40,216 $ 40,025 $ 47,484 $ 46,484 $ 40,733 $ 555,230
$ 68,392 $ 67,284 $ 65,766 $ 76,082 $ 76,596 $ 69,729 $ 864,023
$ 23,247 $ 23,211 $ 23,324 $ 23,835 $ 24,913 $ 24,054 $ 283,938
$ 56,314 $ 58,600 $ 56,638 $ 57,981 $ 58,695 $ 55,272 $ 670,091
$ 5,360 $ 6,942 $ 81659 $ 12,534 $ 12,632 $ 9,143 $ 87,062
$ 4,175 $ 4,175 S 4,175 $ 4,175 $ 4,175 $ 4,175 $ 50,105
$ 324,562 $ 311,114 $ 305,670 $ 346,228 $ 340,228 $ 306,830 $ 4,190,189
Elec Monthly Forecasted Revenue Page 3 of 15
-
Avista
Schedule 91/191 Workpapers
2012 2012 2012 2012 2012 2012 2013 2013 2013

Annual per BP JUIV August September Qçr November December January February March
Overall electric budget $ 4,746,789 $ 395,566 $ 395,566 $ 395,566 $ 395,566 $ 395,566 $ 395,566 $ 401,895 $ 401,895 $ 401,895

CEER $ 75,000
C,) Total $ 4,746,789 $ 395,566 $ 395,566 $ 395,566 $ 395,566 $ 395,566 $ 395,566 S 476,895 $ 401,895 $ 401,895 Ot

Check on total OK
C) C)
I
Electric expected spend Page 4 of 15
Avista
Schedule 91/191 Workpapers

2013 2013 2013

Qll MAY June
$ 401,895 $ 401,895 $ 401,895 $
$ 75,000 $

2013 2013 2013 2013 2013 2013 7/1212/13

July August September October November December Total Notes:
401.895 $ 401,895 $ 401,395 $ 401,895 $ 401,895 $ 401,895 $ 7,196,133

75,000 $ 75,000 $ 300,000
$
$
$
$
$
$
$
$
476,895 401A95 $ 401,895 $ 476,895 $ 401,895 $ 7,496,133
0 0
C)
3 CD
Electric expected spend Page 5 of 15
Avista
Schedule 91/191 Workpapers
GEW SERVICE LRG GEN SVG INTERRUPTIBLE TRANSPORT
TOTAL SCHEDULE 101 SCH, 111&112 SCH. 131&132 SCHEDULE 146
PXtESBNT BILL .
THERMS
TOTAL FORECASTED THERMS 77,801,551 54,077,711 20,693,825 440,428 2,589,586
-u
I
Current Rate $ 0.02697 $ 0.01321 $ 0.01197 $ -
New Rate $ - $ - $ - $ -
DSM Revenue Decrease $ (1,737,113) $ (1,458,476) $ (273,365) $ (5,272) $ -
Average Residential Bill Impact $ (1,62)
**using Forecasted Billing Determinants
Gas Revenue Impact
Avista
Schedule 91/191 Workpapers
Gas Forecast
2012 2012 2012
Therms jy August September
Schedule 101 1,093,602 1041,608 1,301132
Schedule 111/112 943,046 992,819 1,157,682
Schedule 131/132 24,896 26,116 28,411
Rates
Schedule 101 $ 0.02697 $ 0.02697 $ 0.02697
Schedule 111/112 $ 0.01321 $ 0.01321 $ 0.01321
Schedule 131/132 $ 0.01197 $ 0.01197 $ 0.01197
Gross Revenue
Schedule 101 $ 29,494 $ 28,092 $ 35,092
Schedule 111/112 $ 12,458 $ 13,115 $ 15,293
Schedule 131/132 $ 298 $ 313 $ 340
Total $ 42,250 $ 41,520 $ 50,725
Net Revenue 0.996296
Schedule 101 $ 29,385 $ 27,988 $ 34,962
Schedule 111/112 $ 12,411 $ 13,067 $ 15,236
Schedule 131/132 $ 297 $ 311 $ 339
Total $ 42,094 $ 41,366 $ 50,537
Gas Monthly Forecast Rev Page 7 of 15
Staff—PR-001 Attachment A
Avsta
Schedule 01/191 Workpp9rs
2012 2012
9te .cdnceitves $ 44,113 S 37,109 S 31,9 $
LeCytMd8s) $ $ $ S
Ppe.t?es 5 49 51,55 5 $ Ø5
Low incorr4iflMntwo$ 5 22 16 S 1,680
Low incoffm M8HS S 103 $ 1,334 $ 3334 $ 1334
tabor S 34V1 S 28,542 S 28.642 5 28,642
IR!OV Boo S
NifAS *233 5
ELB S 4ZO $ 31500 $ 3,500 $ 3,500
MembersJ$ .53,600 $ S S
Iota S IPUM 5 139,781 S 139791 $ 1,781
2012 2032 2012 2013 2011 2033 2013 2013 2018
wqku mbe Dpowbar t.tkL3L9 March Awil may jurm
37,19 S 37,210 37,109 $ 3' S 3709 $ $4017 S 30,924 5 27,812 $ 24,740
5OM$:$ sO%l S $
•89 S 3O S 28,680 5 5 $ - S - $ $ -
404 $ 1,334 $ 1,334 $ $ - $ S S $
28.142 $- 20,641 5 12,130 $ 12,130 S 3,032 5 21780 S 2,527 $ 2,274 $ 21032
$ $ 7,329 $ 7,329 $ $ 7,329 5 7,329 S 7,329 $ 1,329
$ $ -
-$
2013 2013
L& Aveusl

21,847 S 19,155

$ -
S
$

-S -

1,769 $ 1,51%
- S -
S

S -
- S
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0)
0 0
C, Sr
3 CD
>
Gas expected spend Page 8 of 15
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*4444*444*4*44444*44 5
Staff_PR_001 Attachment A
Avlata
Schedule 91/191 workpapers
2015 2015 2015 2015 2015 2015 2015 7/12-12/15
July A g3 September Nvamber December jQStJ
- $ - S - $ - S - $ - $ - $ 500$77 Business as tOwl through tW d** for COntracts to be signed. Thenpayments ramping dawn to zero Warlyu tstrarylDl4 when t contractngned(JartlO
-$ - S $ - S - S - $1z070$ 12,070 Or* one
$
-
252,574 month after last rebate is accepted
- 5 $ - S - $ - $ - $ - $
$ $ $ S 5 $ $ L6 Ply flcntscoflthuInt *$C2012 contract
$ $ S $ S $ $ 187,190 Pet O32 bP)u4pt un1dpreacrtptme program rebate processing. Then proportionately reduced (by the amount ofincentives) until nae speofic contracts
$ S $ S S S $ 43972 Matsse all1011 EM&V Midior by end of June. 2013 EMU (op. 2012 results) is 1/2 of 2012 BF bucket to be spent in first ass months of 2013 No $ for EMW in 2
- $ - $ - S - S - $ S - S - Ndlymefis
- 5 - $ - 5 - S - S - $ - 5 10500 Paymentsgrsd when prescriptive programs ant
No mbers+up payments in future
IIDlfl 24217"1
0)
a)
0 0
a) C)
3 CD
Gas expected spend Page 10 of 15
Cl)
Avista
Schedule 91/191 Workpars
Assumed error In gas expenditures (July 2012 to December 2015) positive number indicates higher expenditures S (0) End Dec 2015 g
Assumed error in gas revenues (July 2012 to December 2015) positive number Indicates higher revenues 0% of remaining ex
Change in 6 tariff ri* -100% 100% -100% -100% -100% -100% -100%
Change lit tariftri
____________
-100% -100% -100% -100% -100% -100% -100%
2012 2012 2012 2012 7Al2 2012 2012 2013 2013 2013 2013 2013
June 1* ,ygust September _A Ocr November Decem.ber jgnuary February March Aarill MAY
Beginning balance $ 1,355,022 $ 1,212,494 $ 1,069.238 $ 4'S $ 755,152 $ 5754$2 $ 433,681 $ 408,966 $ 346,267 $ 2*7,987 $ 234j24
Gasrevenue $ 42,094 $ 41,366 $ $0,537. .3. .......... .... .. 1 . $...
Gas expenditures $ (184,623) S (184,623) $ (184,621)
Interest
Ending balance $ 1,355,023 $ 1,212,494 $ 1,069,38; $ 755,152 5 575,152 $ 483,681 $ 406,111ft $ 346,267 $ Z*7,987 $ 234,12. $ 1"6ao
Beginning balance $ 316,231 $ 534,440 $ 740,619 $ 886,761 $ 813,966 $ 713467 S 806,912 $ 74,441 $ 6*V23 $ 641,37* $ 484,471
Electric revenue S 616,029 $ 605,556 $ 54,93 4 .329,Q 4 $ 1I3 ,478$. 3542 $ .
Electric expenditures $ (395,566) $ (395,566) $ (395,566)
.
Interest $ (2 255) 5 (3811) (S 7547 5 (1'6S) 27 ' (4 Tfw
Ending balance $ 316,231 $ 534,440 $ 740,614 { $ 813 6 5 76,967 $ O6.$12 $ 724 441 $ 681 923 S 641 378 $ 4 471 $ 3*296
ID
0
I
3,
E & 6 balance projections
Page 11 of 15
Av(sta
Schedule 91/191 Workpapers
as bane
pendtures
400% -100% 400% -100% 400% 400% -100% -100% -100% 400% -100% -100%
400% -100% -100% -1001% -100% -100% -100% -100% 400% -100% -100% -100..
2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014
gj Sec1mber Octo ii Apoll 4a $ IM $ 119,54 $ 10876 $ 49, 23$ $ (4i2c $ 47,4 $ 293.91 $ 20,360 $ i5,9C $ 15,942 $ 15,942 $ i5,42
•- . .ii- t::1TtjaJ— 4 . -•
$ 139,654 $ 108,726 5 82,216 $ 60,125 $ 42,452 $ 297 $ 20,360 $ 1542 $ 15,942 $ 1S94a $ 15,942
$ 3,296 $ 29111$ S 158$45 $ 95,741 $ (0) $ (476,895) $ (878,790)
.a.$.
.1 ... s (476,895) $ (401,895) $ (401,895) s_ (277$ (2,..s.
co $ 291,288 $ 158,545 $ 95,747 $ (476,895) 5 (878,790) $ (1,280,684)
-o
0
I
E & G balance projections Page 12 of 15
Avista
Schedule 91/191 Workpapers
-10%. -100% -100% -100%
-100% -100% -100% -100%
2015 2015 2015 2015
ARITI, may June.. i"I
15042 $ 15,942 $ 15,42 $ 15,942
- .. -
1542 $ 15,9* $ 15,942 $ 15,942
-100% -100% -100% -100% -100% -100% -100% -100% -100% -100%
-100% -100% -100% -100% -100% -100% -100% -100% -100% -100%
2014 2014 2014 2014 2014 2014 2014 2015 2015 2015
Sber October November Oece
159425 15$2 $ t$$ IS,$2$ 15,942- $ i9942$ 15,4$ 15,$ 1592
$

15, 94-7
41111 4-TT
5 1S42 $ lS,42 $ 15,942 S 15,942 $ 1$,94 $ 15,942 $ 15,942 $ 15,94 25,942
(I)
0
lcD
C?
0, C)
3 CD
E & 6 balance projections
Page 13 of 15
Avista
Schedule 91/191 Workpapers
-100% 400% -100% -100% -100%
100% 100% 100% 100% 100%
2015 2015 2015 2015 2015
Stether J4QW Demher
$ 15 42 $ 15,942 15,94 $ 19 ,9.4' $
S - $ 133,996
$ fl489019)
$
142 $ Is i $ 15,94-2 $ 15942 $ (0)
CI)
CD
I
-u
10 0
CD C)
3 CD
2'
E & 6 balance projections Page 14 of 15
Avista
Schedule 91/191 Workpapers
Electric Gas
2012 ID BP (annual) $ 4,746,789 $ 1,808,226

Monthly $ - - 39SS66 $ 150,685

2012 to 2013 increase in electric NA
CEERI _.

Interest on electric Onnually

Interest on Jos 00% annually
Year over year growth in electric revenue
Key date assumptions November 1, 2012: No more gas prescriptive rebates accepted (those in the door as of that date
would be paid assume 30 days of continuing payments)
January 15, 2013: Last day for signature of new gas site-specific contracts
Effective date of revised tariff rider October 1, 2012
Labor costs for site specific are assumed to drop to 25% of the previous month once the deadline
for contract signing is in place (this is for continuing customer care, installation verification,
payment processing etc).
For electric, the above referenced increase in expenditures over that in the 2012 OSM Business
Plan and a $75k payment at the first month of every quarter starting in 2013
Data and assumptions
Page 15 of 15
Staff—PR-001 Attachment A
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-12-03 / AVU-G-12-06
IPUC
Production Request
Staff-02
DATE PREPARED: 08/20/2012
WITNESS: Bruce Folsom
RESPONDER: Pat Ehrbar
DEPARTMENT: State & Federal Regulation
TELEPHONE: [phone]
REQUEST:
Please explain why language relating to market transformation efforts was struck from the revised
Schedule 190.
RESPONSE:
The Company believes that the work that has been performed to date in developing a prospective
regional portfolio of natural gas market transformation programs is unlikely to be cost-effective
given current regional avoided cost expectations. The Company recognizes that market
transformation opportunities may be one of the most promising options and may well pave the way
for a future local portfolio if there are increases in avoided cost. The Company will continue to
investigate the opportunities for cost-effective regional, and local, natural gas efficiency programs
and will propose a return of these programs in the event that a viable portfolio can be delivered to
our customers.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/21/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff-03 TELEPHONE: [phone]
REQUEST:
Please provide the Total Resource Cost test, Program Administrator Cost test, Participant Cost
test, and Ratepayer Impact Measure cost-effectiveness ratios for each of Avista' s Idaho natural gas
demand-side management programs.
RESPONSE:
Please refer to Staff PR 03 Attachment A for the TRC, PAC, Participant and RIM
cost-effectiveness ratios by measure and segment for Idaho natural gas DSM. Please note that
these are from the Company 2011 DSM Annual Report and utilized avoided costs from the most
recently filed IRPs (2009).
Savings Avoided Costs Lost Revenue
kWh Therms kWh Therms kWh Therms NEB lncr Cust $ NW $
19,174 7,794 $ 9,755 $ 62,253 $ 12,253 $ 61,512 $ - $ 194,226 $ 10,710
0 1,665 $ - $ 32,771 $ - $ 20,779 $ - $ 19,500 $ 5,638
0 72,758 $ - $ 852,596 $ - $ 718,378 $ - $ 654,900 $ 146,682
0 364 $ - $ 2,801 $ - $ 2,814 $ - $ 4,150 $ 482
613,172 60,277 $ 742,904 $ 1,186,582 $ 720,090 $ 752,386 $ - $ 1,672,861 $ 204,142
- 12,835 $ - $ 138,104 $ - $ 117,368 $ - $ 211,706 $ 43,570
- 13,595 $ - $ 122,204 $ - $ 102,124 $ 10,533 $ 77,176 $ 22,648
(7,109) 81,172 $ - $ 902,392 $ (4,828) $ 566,359 $ 4,823 $ 1,401,454 $ 167,243
(9,869) 27,019 $ - $ 330,969 $ (5,937) $ 232,873 $ 338 $ 296,278 $ 61,339
- 3,932 $ - $ 36,269 $ - $ 31,060 $ - $ 28,434 $ 6,722
3,603 $ 1,321,465 615,369 281,409 $ 752,660 $ 3,666,940 $ 721,577 $ 2,605,654 $ 15,694 $ 4,560,685 $ 669,177
Prog Segment State #Proj Incent
Appliances Res ID 1,200 $ 48,275
Energy Star Homes Res ID 13 $ 8,450
HVAC Res ID 932 $ 373,524
Water Heaters Res ID 80 $ 4,150
Weatherization Res ID 982 $ 319,342
Weatherization LI ID 281 $ 211,706
Prescriptive NRes ID 41 $ 23,085
SS HVAC NRes ID 35 $ 232,552
SS Shell NRes ID 34 $ 87,163
SS Other NRes ID 5 $ 13,217
Excerpted from Avista's 2011 DSM Annual Report Work Papers
Staff-PR-03 Attachment A.xlsx Page 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/20/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff-04 TELEPHONE: [phone]
REQUEST:
Please provide the TRC and PAC calculations with formulas intact for each of Avista's Idaho
natural gas DSM programs. These calculations should include avoided cost, measure lives, and
sources for energy savings.
RESPONSE:
Please refer to StaffPR_04 Attachment A for the TRC and PAC calculations by program and
segment for Idaho natural gas DSM. It should be noted that these are from the Company 2011
DSM Annual Report and utilized avoided costs from the most recently filed IRPs (2009). The
source of the energy savings are from the Company's DSM databases, adjusted for the 2010-11
realization rates resulting from the impact evaluation performed on the 2010-11 DSM portfolio.
Avg ML #ProJ Incent kWh
12 1,200 $ 48,275
40 13 $ 8,450
20 932 $ 373,524
13 80 $ 4,150
40 982 $ 319,342
19 281 $ 211,706
17 41 $ 23,085
20 35 $ 232,552
21 34 $ 87,163
16 5 $ 13,217
3,603 $ 1,321,465
Prog Segment State
ESA Rex ID
ESH Res ID
HVAC Rex ID
WH Res ID
WZN Rex ID
WZN LI ID
Prescriptiv, NRes ID
55 HVAC NRes ID
55 Shell NRes ID
SS Other NRes ID
InCr Cust $ NIU $
- $ 194,226 $ 10,710
- $ 19,500 $ 5,638
- $ 654,900 $ 146,682
- $ 4,150 $ 482
- $ 1,672,861 $ 204,142
- $ 211,706 $ 43,570

10,533 $ 77,176 $ 22,648

4,823 $ 1,401,454 $ 167,243

338 $ 296,278 $ 61,339

$ 28,434 $ 6,722
TRC PAC
15,694 $ 4,560,685 $ 669,177
Excerpted from Avista's 2011 DSM Annual Report Work Papers
Savings Avoided Costs Lost Revenue
Therms kWh Therms kWh Therms NEB
19,174 7,794 $ 9,755 $ 62,253 $ 12,253 $ 61,512 $
0 1,665 $ - $ 32,771 $ - $ 20,779 $
0 72,758 $ - $ 852,596 $ - $ 718,378 $
0 364 $ - $ 2,801 $ - $ 2,814 $
613,172 60,277 $ 742,904 $ 1,186,582 $ 720.090 $ 752,386 $
12,835 $ - $ 138,104 $ - $ 117,368 $
13,595 $ - $ 122,204 $ - $ 102,124 $
(7,109) 81,172 $ - $ 902,392 $ (4,828) $ 566,359 $
(9,869) 27,019 $ - $ 330,969 $ (5,937) $ 232,873 $
3,932 $ - $ 36,269 $ - $ 31,060 $
615,369 281,409 $ 752,660 $ 3,666,940 $ 721,577 $ 2,605,654 $
Staff-PR-04 Attachment A.xlsx Page 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Jon Powell
TYPE: Production Request DEPARTMENT: PP&A
REQUEST NO.: Staff-05 TELEPHONE: [phone]
REQUEST:
Please provide Avista's existing natural gas avoided costs.
RESPONSE:
Avista's evaluation of natural gas efficiency options prior to the most recent revision in the
avoided cost was based upon a cumulative avoided cost, including a 10% preference, as indicated
below. The discount rate prevailing at the time was 7.08% and a mid-year discounting convention
was employed to develop these cumulative present values.
Cumulative PV of avoided cost
Annual load shape w Winter load shape w
Measure life 10% pref. 10% pref.
1 $ 0.706 $ 0.778
2 $ 1.328 $ 1.478
3 $ 1.873 $ 2.086
4 $ 2.354 $ 2.615
5 $ 2.781 $ 3.086
6 $ 3.175 $ 3.519
7 $ 3.552 $ 3.931
8 $ 3.912 $ 4.325
9 $ 4.250 $ 4.697
10 $ 4.564 $ 5.046
11 $ 4.863 $ 5.376
12 $ 5.149 $ 5.690
13 $ 5.423 $ 5.990
14 $ 5.684 $ 6.277
15 $ 5.932 $ 6.549
16 $ 6.168 $ 6.807
17 $ 6.393 $ 7.052
18 $ 6.606 $ 7.285
19 $ 6.808 $ 7.506
20 $ 7.000 $ 7.715
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Jon Powell
TYPE: Production Request DEPARTMENT: PP&A
REQUEST NO.: Staff-06 TELEPHONE: [phone]
REQUEST:
Please provide Avista' s previously anticipated natural gas avoided costs as referenced on page 2,
line 3 of the AVU-G-12-03 application.
RESPONSE:
Avista's February 29, 2012 evaluation "Review of Prospects and Strategies for the 2012 Avista
Regular Income Natural Gas DSM Portfolio" was intended to optimize natural gas efficiency
programs for the short-term (2012) and mid-term (based upon expected lower avoided costs). The
lower avoided cost assumption for purposes of this report was presumed to be a 25% reduction in
the avoided cost from that which existed at the time. The calculations simply reduced all gas
avoided cost of each measure by 25%. This would be the equivalent to assuming the cumulative
present value of avoided cost as represented below:
Cumulative PV of avoided cost
Measure Annual load Winter load shape
life shape w 10% pref w 10% pref
1 $ 0.5298 $ 0.5832
2 $ 0.9958 $ 1.1084
3 $ 1.4045 $ 1.5643
4 $ 1.7658 $ 1.9612
5 $ 2.0860 $ 2.3143
6 $ 2.3813 $ 2.6395
7 $ 2.6637 $ 2.9483
8 $ 2.9337 $ 3.2436
9 $ 3.1877 $ 3.5229
10 $ 3.4234 $ 3.7848
11 $ 3.6471 $ 4.0319
12 $ 3.8620 $ 4.2674
13 $ 4.0672 $ 4.4927
14 $ 4.2629 $ 4.7076
15 $ 4.4493 $ 4.9117
16 $ 4.6263 $ 5.1051
17 $ 4.7945 $ 5.2889
18 $ 4.9544 $ 5.4636
19 $ 5.1061 $ 5.6294
20 $ 5.2499 $ 5.7866
Page 2
The 7.08% discount rate and mid-year discounting convention methodology used in the
development of the then-current cumulative avoided cost would remain applicable to this avoided
cost stream.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/22/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Kelly Irvine
TYPE: Production Request DEPARTMENT: Natural Gas Resources
REQUEST NO.: Staff-07 TELEPHONE: [phone]
REQUEST:
Please provide Avista's new natural gas avoided costs anticipated for publication in August 2012
natural gas Integrated Resource Plan.
Please refer to Staff PR 07 Attachment A.
Scenario Gas Year
Expected 2011-2012 $ 2.69 $ 2.84 $ 2.69 $
Appendix 6.4
Annual Avoided Costs 11
2010$
2.69 $ 2.69 $ 2.69 $ 2.65 $ 2.87
Expected 2013-2014 $ 3.85 $ 4.07--$ 3.85 $ 3.85 $ 3.85 $ 3.86 $ 3.80 $ 4.08
Eçpected 20152016 $ 4.18 $ 4.45 $ 4.18 $ 4.18 $ 4.18 $ 4.21 $ 4.12 $ 4.47
Expected 2017-2018 $ 4.56 $ 4.88 $ 4.56 $ 4.56 $ 4.56 $ 4.60 $ 4.50 $ 4.89
Expected 2019-2020 $ 4.82 $ 5.03 $ 4.83 $ 4.83 $ 4.83 $ 4.84 $ 4.76 $ 5.05
Expeded2o2l-2022 $ 4.87$ 5.01$ 4.88$ 4.88$. 4.88$ 4.87$ 4.80$ 5.02
EFected20232024 $ 4.92$ 4.98$ 4.93$ 4.93$ 4.93$ 4.91$ 4.85$ 4.99
E,çected2o2s-2026 $ 5.04$ 5.20$ 5.05$ 5.05$ 5.05$. 5.01$ 4.98$ 5.22
Expected 2027-2028 $ 5.03 $ 5.13 $ 5.04 $ 5.04 $ 5.04 $ 5.00 $ 4.96 $ 5.14
ExDeCted2O29-2030 $ 5.08$ 5.12$ 5.08$ 5.08$ 5.08$ 5.03$ 5.00$ 5.14
$ 2.74 $ 272
$ 3.91 $ 390
$ 4.26 $ 4.23
$ 4.67 $ 4.63
$ 4.88 $ 4.87
$ 4.90 $ 4.90
$ 4.92 $ 4.94
$ 5.07 $ 5.08
$ 5.04 $ 5.06
$ 5.06 $ 5.09
Staff-PR-07 Attachment A.xlsx Page 1 of 2
Winter Avoided Costs 1/
2010$
Scenario Gas Year
Expected 2011-2012 $
-.-
2.80 $ 2.88 $
iij4
3.94 $ $
4j1
$
Expected 2015-2016 $ 4.21 $ 4.47 $
Expected 2017-2018 $ 4.60 $ 4.91 $
Expected 2019-2020 $ 4.88 $ 5.10 $
Expected 2021-2022 $ 4.97 $ 5.12 $
Expected 2025-2026 $ 5.14 $ 5.29 $
Expected 2027-2028 $ 5.14 $ 5.23 $
Expected 2029-2030 $ 5.21 $ 5.24 $
2.80$ 2.80 $ 2.80 $ 2.86$ 2.75$. 2.87
I $ 2.83$ 2.81
3.94 $ 3.94 $ 3.94 $ 4.03 $ 3.88 $ 4.11
I $ 4.00 $ 3.97
4.21 $ 4.21 $ 4.21 $ 4.36 $ 4.14 $ 4.47 $ 4.32.$ 4.26
4.60 $ . 4.60 $ 4.60 $ 4.77 $ 4.52 $ 4.91 $ 4.73 $ 4.66
4.88 $ 4.88 $ 4.88 $ 5.00 $ 4.80 $ 5.10 S. 4.97 $ 4.92
4.97 $ 4.97 $ 4.97 $ 5.05 $ 4.88 $ 5.12 $ 5.02 $ 5.00
5.04 $ 5.04 $ 5.04 $ 5.08 $ 4.95 $ 5.11 $ 5.05 $ 5.06
514 $ 5.14 $ 5.14 $ 5.15 $ 5.07 $ 5.28 $ 5.17 $ 5.17
5.14 $ 5.14 $ 5.14 $ 5.15 $ 5.07 $ 5.22 $ 5.15 $ 5.16
5.22$ 5.22$ 5.22$ 5.20$ 5.13$ 5.23 $ 5.18$ 522
1/ Avoided costs are before Environmental Externalities adder.
Staff-PR-07 Attachment A.xlsx Page 2 of 2
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Jon Powell
TYPE: Production Request DEPARTMENT: PP&A
REQUEST NO.: Staff-08 TELEPHONE: [phone]
REQUEST:
At what natural gas wholesale price does Avista anticipate that its Idaho natural gas DSM portfolio
would become cost-effective?
SX1bi]
The most applicable scenario for the natural gas DSM portfolio led to a residual net total resource
cost benefit (net total resource cost benefit less net total resource cost) of a negative $1.61 million.
An increase of 91% of the natural gas avoided cost value would be required to bring the portfolio
residual total resource cost to the cost-effective level, all else being equal. The table below
summarizes the calculations.

$ 1,126,138 Electric avoided cost value

$ 1,766,219 Natural gas avoided cost value
$ 24,711 Non-energy benefits

$ 2,917,068 Total TRC benefits
$ (1,605,691) Residual TRC benefits
91% Increase in natural gas AC needed to offset residual net TRC
It should be noted that this scenario includes the assumption that dual-fuel site-specific projects
(those receiving both natural gas and electric incentives) would not be pursued in the absence of
the natural gas incentive. To determine the impact of the suspension of the natural gas DSM
portfolio on the overall combined fuel DSM portfolio, the electric avoided cost of those dual-fuel
projects was attributed to the natural gas portfolio (on the presumption that the natural gas
portfolio was necessary to move these projects forward). Thus this scenario represents the
incremental value of the natural gas portfolio to the combined fuel portfolio, leading to an
optimistic perspective on the natural gas portfolio alone.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Jon Powell
TYPE: Production Request DEPARTMENT: PP&A
REQUEST NO.: Staff-09 TELEPHONE: [phone]
REQUEST:
On page 2, lines 18-26 of the AVU-G-12-03 application, Avista describes five major scenarios
which it scrutinized "in an attempt to ascertain if any reasonable calculation of its DSM portfolio
or modifications to the avoided cost would a yield a portfolio that is cost-effective under the TRC
test." Please provide detailed explanations and workpapers for each scenario to support Avista's
conclusion on page 3, lines 2-3, that "generally the most optimistic scenario led to benefit-to-cost
ratios in the low 0.70 range."
The five scenarios referenced in the application include:
1.A carbon cost adder
The natural gas commodity avoided cost includes a carbon cost adder for 2020 and beyond
on the assumption that there will be a monetized cost levied at some point along the natural
gas distribution chain. Incorporating such a monetized externality cost is an appropriate
total resource cost methodology.
Avista did perform a scenario whereby a $0.52/Dth value was added to the 2013-2019
period to represent the social externality cost of carbon. This value was derived from the
Company's electric Integrated Resource Planning process. This value increased the
"annual" load shape therm by 9.2% and the value of a "winter" load shape therm by 9.0%.
The Company did not incorporate this scenario into the final cost-effectiveness analysis
because the total resource cost test methodology does not include non-monetized
externality costs.
2.Inclusion of natural gas distribution capacity
A gas distribution adder of $0.009122 per therm was incorporated into all scenarios
through the avoided cost of natural gas. This is a value which is consistent with the
calculation of the total resource cost test. In previous years a valuation of the incremental
distribution capacity value was unknown and thus not included in the avoided cost.
3.Gross vs. net assumptions regarding program participation
The scenario for gross (rather than net) participation was performed and is presented in the
attached Excel file "Gas portfolio scenario summaries" under the 'Gross TRC' worksheet.
These tables are the same as those referenced above except for the use of a 100%
net-to-gross ratio.
Page 2
This scenario did not become part of the final evaluation results due to previous
commitments to manage the natural gas portfolio to be cost-effective based upon a net total
resource cost basis.
4.Alternative categorizations of net-to-gross ratios and realization rates
The result of alternative assumptions of the categorization of net-to-gross and realization
rates across programs and portfolios is contained in Staff _PR_09 Attachment A under the
'Recategorized NTG and RR' worksheet. This table reflects the use of the 79% realization
rate for the full natural gas portfolio rather than the 66% residential and 87%
non-residential components of that realization rate. Similarly a 69% portfolio net-to-gross
factor was utilized rather than a net-to-gross ratio more specific to each program.
5.Different approaches to evaluating non-incentive utility costs across programs.
Two alternative approaches of capturing non-incentive utility costs were incorporated into
the final evaluation. The more optimistic approach assumed that reductions in
non-incentive utility cost would be proportionate to the reduction in throughput. The
alternative assumption was that there was a fixed non-incentive utility cost component that
would lead to a less than proportionate reduction in these costs as portfolio acquisition fell.
This resulted in a .02 to .04 difference in the total resource cost benefit-to-cost ratio. The
final evaluation with both of these scenarios defined is included in the Staff PR 09
Attachment A under the 'Net TRC' worksheet.
Annualized natural gas DSM portfolio projections (6/12/12) Scenario with fixed and variable NIUC components
Gross therms Net therms Electric Net mc benefits Net sub-TRC Net sub Allocated (by Total net TRC Net TRC 8/C Residual net TRC
realized NTG ratio realized incentives Gas incentives realized costs TRC B/C therms) NIUC cost ratio benefit
Site-specific 368,360 75% 276,270 $ 433,259 $ 1,394,146 $ 1,503,096 $ 1,298,722 1.16 $ 686,595 $ 1,985,317 0.76 $ (482,221)
Non-res Psc clothes washers 198 87% 172 $ 6,827 $ 2,573 $ 1,144 $ 1,287 0.89 $ 428 $ 1,715 0.67 $ (571)
Non-i-es Psc food service 18,712 87% 16,279 $ 14,972 $ 54,268 $ 89,107 $ 68,827 1.29 $ 40,457 $ 109,284 0.82 $ (20,177)
Non-res Psc windows/insulation 31,307 87% 27,237 $ 50,359 $ 92,549 $ 228,331 $ 146,229 1.56 $ 67,691 $ 213,921 1.07 $ 14,410
Non-ow Psc non-res HVAC 132 87% 115 $ - $ 293 $ 845 $ 501 1.69 $ 285 $ 786 1.07 $ 58
Res Psc ES home 21,081 74% 15,516 $ 38,712 $ 68,238 $ 92,603 $ 160,052 0.58 $ 38,560 $ 198,611 0.47 $ (106,008)
Res Psc res 111/AC 270,472 61% 164,988 $ - $ 1,189,600 $ 782,237 $ 1,272,521 0.61 $ 410,032 $ 1,682,553 0.46 $ (900,316)
Res Psc water heat 17,962 59% 10,586 $ - $ 24,087 $ 14,113 $ 14,906 0.95 $ 26,309 $ 41,215 0.34 $ (27,102)
Res Psc insulation 56,815 64% 36,248 $ 22,074 $ 130,268 $ 171,858 $ 151,201 1.14 $ 90,084 $ 241,285 0.71 $ (69,427)
Res Psc appliance 22,752 42% 9,523 $ - $ 44,175 $ 33,735 $ 24,405 1.38 $ 23,666 $ 48,071 0.70 $ (14,336)
NIUC associated with program $ 859,584
Fixed NIUC $ 524,524
Gas portfolio overall 807,791 556,934 $ 566,203 $ 3,000,197 $ 2,917,068 $ 4,522,759 $ 1,384,108 $ 4,522,759 0.64 $ (1,605,691)
NIUC is based upon 2011 actual NIUC (from 2011 DSM Annual Report table 5) with estimated variable (with throughput) amount adjusted for reduced therm acquisition component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC5 received from torn
Corrected for VLOOKUP reference error on site-specific program
Using ow vs. non-ow realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
Staff-PR-09 Attachment A.xlsx Net TRC Page 1 of 6
Annualized natural gas DSM portfolio projections (6112/12) Scenario assuming NIUC is fully variable
Gross therms Net therms Electric Net mc benefits Net sub-TRC Net sub Allocated (by Total net TRC Net TRC B/C Residual net TRC
realized NTG ratio realized incentives Gas incentives realized costs TRC B/C therms) NIUC cost ratio benefit
Site-specific 368,360 75% 276,270 $ 433,259 $ 1,394,146 $ 1,503,096 $ 1,298,722 1.16 $ 578,329 $ 1,877,051 0.80 $ (373,955)
Non-res Psc clothes washers 198 87% 172 $ 6,827 $ 2,573 $ 1,144 $ 1,287 0.89 $ 361 $ 1,647 0.69 $ (503)
Non-res Psc food service 18,712 87% 16,279 $ 14,972 $ 54,268 $ 89,107 $ 68,827 1.29 $ 34,078 $ 102,904 0.87 $ (13,798)
Non-res Psc windows/insulation 31,307 87% 27,237 $ 50,359 $ 92,549 $ 228,331 $ 146,229 1.56 $ 57,017 $ 203,247 1.12 $ 25,084
Non-res Psc non-res HVAC 132 87% 115 $ - $ 293 $ 845 $ 501 1.69 $ 240 $ 741 1.14 $ 103
Res Psc ES home 21,081 74% 15,516 $ 38,712 $ 68,238 $ 92,603 $ 160,052 0.58 $ 32,479 $ 192,531 0.48 $ (99,928)
Res Psc res HVAC 270,472 61% 164,988 $ - $ 1,189,600 $ 782,237 $ 1,272,521 0.61 $ 345,376 $ 1,617,897 0.48 $ (835,660)
Res Psc water heat 17,962 59% 10,586 $ - $ 24,087 $ 14,113 $ 14,906 0.95 $ 22,161 $ 37,067 0.38 $ (22,953)
Res Psc insulation 56,815 64% 36,248 $ 22,074 $ 130,268 $ 171,858 $ 151,201 1.14 $ 75,879 $ 227,080 0.76 $ (55,222)
Res Psc appliance 22,752 42% 9,523 $ - $ 44,175 $ 33,735 $ 24,405 1.38 $ 19,934 $ 44,339 0.76 $ (10,604)
Total NIUC $ 1,165,854
Gas portfolio overall 807,791 556,934 $ 566,203 $ 3,000,197 $ 2,917,068 $ 4,304,505 $ 1,165,854 $ 4,304,505 0.68 $ (1,387,437)
NIUC is based upon 2011 actual NIUC (from 2011 DSM Annual Report table 5) adjusted for reduced therm acquisition assuming no fixed component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC's received from tom
Corrected for VLOOKUP reference e rror on site-specific program
Using rae vs. non-rev realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
Staff-PR-09 Attachment A.xlsx Net TRC Page 2 of 6
Annualized natural gas OSM portfolio projections (6/12/12) Scenario with fixed and variable NIUC components
Gross therms Net therms Electric Net mc benefits Net sub-TRC Net sub Allocated (by Total net TRC Net TRC B/C Residual net TRC
realized NTG ratio realized incentives Gas incentives realized costs TRC B/C therms) NIUC cost ratio benefit
Site-specific 368,360 100% 368,360 $ 433,259 $ 1,394,146 $ 1,503,096 $ 1,298,722 1.16 $ 631,167 $ 1,929,889 0.78 $ (426,793)
Non-res Psc clothes washers 198 100% 198 $ 6,827 $ 2,573 $ 1,144 $ 1,287 0.89 $ 339 $ 1,626 0.70 $ (482)
Non-res Psc food service 18,712 100% 18,712 $ 14,972 $ 54,268 $ 89,107 $ 68,827 1.29 $ 32,062 $ 100,888 0.88 $ (11,781)
Non-res Psc windows/insulation 31,307 1000/0 31,307 $ 50,359 $ 92,549 $ 228,331 $ 146,229 1.56 $ 53,644 $ 199,873 1.14 $ 28,457
Non-res Psc non-res HVAC 132 100% 132 $ - $ 293 $ 845 $ 501 1.69 $ 226 $ 727 1.16 $ 118
Res Per ES home 21,081 100% 21,081 $ 38,712 $ 68,238 $ 125,820 $ 160,052 0.79 $ 36,121 $ 196,173 0.64 $ (70,353)
Res Per res HVAC 270,472 100% 270,472 $ - $ 1,189,600 $ 1,282,355 $ 1,272,521 1.01 $ 463,439 $ 1,735,960 0.74 $ (453,605)
Res Per water heat 17,962 100% 17,962 $ - $ 24,087 $ 23,946 $ 14,906 1.61 $ 30,777 $ 45,683 0.52 $ (21,736)
Pen Per insulation 56,815 100% 56,815 $ 22,074 $ 130,268 $ 269,370 $ 151,201 1.78 $ 97,349 $ 248,550 1.08 $ 20,820
Res Per appliance 22,752 100% 22,752 $ - $ 44,175 $ 80,603 $ 24,405 3.30 $ 38,984 $ 63,390 1.27 $ 17,213

NIUC associated with program $ 859,584

Fixed NIUC $ 524,524

Gas portfolio overall 807,791 807,791 $ 566,203 $ 3,000,197 $ 3,604,616 $ 4,522,759 $ 1,384,108 $ 4,522,759 0.80 $ (918,144)
NIUC Is based upon 2011 actual NIUC (from 2011 DSM Annual Report table 5) with estimated variable (with throughput) amount adjusted for reduced therm acquisition component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC'S received from tom
Corrected for VLOOKUP reference err or on site-specific program
Using res vs. non-res realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
Staff-PR-09 Attachment A.xlsx Gross TRC Page 3 of 6
Annualized natured gas OSM portfolio projections (6/12/12) Scenario assuming NIUC is fully variable
Gross therms Net therms Electric Net TRC benefits Net sub-TRC Net sub Allocated (by Total net TRC Net TRC B/C Residual net TRC
realized NTG ratio realized incentives Gas incentives realized costs TRC B/C therms) NIUC cost ratio benefit
Site-specific 368,360 100% 368,360 $ 433,259 $ 1,394,146 $ 1,503,096 $ 1,298,722 1.16 $ 531,641 $ 1,830,363 0.82 $ (327,267)
Non-res Psc clothes washers 198 100% 198 $ 6,827 $ 2,573 $ 1,144 $ 1,287 0.89 $ 286 $ 1,573 0.73 $ (429)
Non-res Psc food service 18,712 100% 18,712 $ 14,972 $ 54,268 $ 89,107 $ 68,827 1.29 $ 27,006 $ 95,832 0.93 $ (6,726)
Non-res Psc windows/insulation 31,307 100% 31,307 $ 50,359 $ 92,549 $ 228,331 $ 146,229 1.56 $ 45,185 $ 191,414 1.19 $ 36,916
Non-res Psc non-res HVAC 132 100% 132 $ - $ 293 $ 845 $ 501 1.69 $ 190 $ 691 1.22 $ 153
Res Psc ES home 21,081 100% 21,081 $ 38,712 $ 68,238 $ 125,820 $ 160,052 0.79 $ 30,425 $ 190,477 0.66 $ (64,657)
Res Psc res HVAC 270,472 100% 270,472 $ - $ 1,189,600 $ 1,282,355 $ 1,272,521 1.01 $ 390,362 $ 1,662,883 0.77 $ (380,527)
Res Psc water heat 17,962 100% 17,962 $ - $ 24,087 $ 23,946 $ 14,906 1.61 $ 25,924 $ 40,830 0.59 $ (16,883)
Res Psc insulation 56,815 100% 56,815 $ 22,074 $ 130,268 $ 269,370 $ 151,201 1.78 $ 81,999 $ 233,200 1.16 $ 36,170
Res Psc appliance 22,752 100% 22,752 $ - $ 44,175 $ 80,603 $ 24,405 3.30 $ 32,837 $ 57,242 1.41 $ 23,360
Total NIUC $ 1,165,854
Gas portfolio overall 807,791 807,791 $ 566,203 $ 3,000,197 $ 3,604,616 $ 4,304,505 $ 1,165,854 $ 4,304,505 0.84 $ (699,890)
*** NIUC is based upon 2011 actual NIUC (from 2011 OSM Annual Report table 5) adjusted for reduced therm acquisition assuming no fixed component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC's received from torn
Corrected for VLOOKUP reference eiror on site-specific program
Using res vs. non-res realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
Staff-PR-09 Attachment A.xlsx Gross TRC Page 4 of 6
Annualized natural gas DSM portfolio projections (6/12112) Scenario with fixed and variable NIUC components
Gross therms Net therms Electric Net mc benefits Net sub-TRC Net sub Allocated (by Total net TRC Net TRC B/C Residual net TRC
realized NTG ratio realized Incentives Gas Incentives realized costs TRC 8/C therms) NIUC cost ratio benefit
Site-specific 440,916 69% 303,991 $ 433,259 $ 1,394,146 $ 1,381,752 $ 1,193,878 1.16 $ 739,842 $ 1,933,719 0.71 $ (551,967)
Non-res Psc clothes washers 237 690% 163 $ 6,827 $ 2,573 $ 907 $ 1,020 0.89 $ 398 $ 1,417 0.64 $ (511)
Non-res Psc food service 22,397 690/6 15,442 $ 14,972 $ 54,268 $ 70,615 $ 54,543 1.29 $ 37,582 $ 92,125 0.77 $ (21,510)
Non-res Psc windows/insulation 37,474 69% 25,837 $ 50,359 $ 92,949 $ 180,946 $ 115,883 1.56 $ 62,880 $ 178,763 1.01 $ 2,183
Non-res Psc non-ms HVAC 158 69% 109 $ - $ 293 $ 669 $ 397 1.69 $ 265 $ 662 1.01 $ 7
Res Psc ES home 19,142 69% 13,198 $ 38,712 $ 68,238 $ 86,747 $ 149,930 0.58 $ 32,120 $ 182,050 0.48 $ (95,303)
Res Psc res HVAC 245,601 69% 169,330 $ - $ 1,189,600 $ 884,124 $ 1,438,268 0.61 $ 412,109 $ 1,850,377 0.48 $ (966,253)
Res Psc water heat 16,310 69% 11,245 $ - $ 24,087 $ 16,510 $ 17,437 0.95 $ 27,368 $ 44,805 0.37 $ (28,295)
Res Psc Insulation 51,591 69% 35,569 $ 22,074 $ 130,268 $ 185,718 $ 163,395 1.14 $ 86,567 $ 249,962 0.74 $ (64,244)
Res Psc appliance 20,660 69% 14,244 $ - $ 44,175 $ 55,572 $ 40,203 1.38 $ 34,666 $ 74,869 0.74 $ (19,297)

NIUC associated with program $ 909,274

Fixed NIUC $ 524,524

Gas portfolio overall 854,486 589,128 $ 566,203 $ 3,000,197 $ 2,863,559 $ 4,608,751 $ 1,433,797 $ 4,608,751 0.62 $ (1,745,192)
NIUC is based upon 2011 actual NIUC (from 2011 DSM Annual Report table 5) with estimated variable (with throughput) amount adjusted for reduced therm acquisition component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC's received from torn
Corrected for VLOOKUP reference ggt on site-spedflc program
Using res vs. non-ms realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
Staff-PR-09 Attachment A.xlsx Recategorization of NTG and RR Page 5 of 6
Annualized natural gas DSM portfolio projections (6/12/12) Scenario assuming NIUC is fully variable
Net sub Allocated (by Total net TRC Net TRC B/C Residual net TRC
TRC B/C therms) NIUC cost ratio benefit
1.16 $ 636,358 $ 1,830,236 0.75 $ (448,483)
0.89 $ 342 $ 1,362 0.67 $ (455)
1.29 $ 32,325 $ 86,869 0.81 $ (16,254)
1.56 $ 54,085 $ 169,968 1.06 $ 10,978
1.69 $ 228 $ 625 1.07 $ 44
0.58 $ 27,628 $ 177,557 0.49 $ (90,810)
0.61 $ 354,466 $ 1,792,735 0.49 $ (908,611)
0.95 $ 23,540 $ 40,977 0.40 $ (24,467)
1.14 $ 74,459 $ 237,854 0.78 $ (52,136)
1.38 $ 29,817 $ 70,020 0.79 $ (14,449)
Gross therms Net therms Electric Net TRC benefits Net sub-TRC
realized NTG ratio realized incentives Gas incentives realized costs
Site-specific 440,916 69% 303,991 $ 433,259 $ 1,394,146 $ 1,381,752 $ 1,193,878
Non-res Psc clothes washers 237 69% 163 $ 6,827 $ 2,573 $ 907 $ 1,020
Non-res Psc food service 22,397 69% 15,442 $ 14,972 $ 54,268 $ 70,615 $ 54,543
Non-res Psc windows/insulation 37,474 69% 25,837 $ 50,359 $ 92,549 $ 180,946 $ 115,883
Non-res Psc non-res HVAC 158 69% 109 $ - $ 293 $ 669 $ 397
Res Psc ES home 19,142 69% 13,198 $ 38,712 $ 68,238 $ 86,747 $ 149,930
Res Psc res HVAC 245,601 69% 169,330 $ - $ 1,189,600 $ 884,124 $ 1,438,268
Res Psc water heat 16,310 69% 11,245 $ - $ 24,087 $ 16,510 $ 17,437
Res Psc insulation 51,591 69% 35,569 $ 22,074 $ 130,268 $ 185,718 $ 163,395
Res Psc appliance 20,660 69% 14,244 $ - $ 44,175 $ 55,572 $ 40,203
Total NIUC $ 1,233,248
Gas portfolio overall 854,486 589,128 $ 566,203 $ 3,000,197 $ 2,863,559 $ 4,408,202
*** NIUC is based upon 2011 actual NIUC (from 2011 OSM Annual Report table 5) adjusted for reduced therm acquisition assuming no fixed component
Revised (from 6/11/12) estimate of fixed vs. variable components of NIUC
NIUC allocated across program based upon net therms
Using natural gas AC's received from torn
Corrected for VLOOKUP reference error on site-specific program
Using ma vs. non-res realization rates vs. gas portfolio realization rates
Corrected for nominal vs. real avoided cost Inputs
Corrected to using non-res (rather than portfolio) realization rate for non-res programs
$ 1,233,248 $ 4,408,202 0.65 $ (1,544,642)
Staff-PR-09 Attachment Axles Recategorization of NTG and RR Page 6 of 6
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Chris Drake
TYPE: Production Request DEPARTMENT: Demand Side Management
REQUEST NO.: Staff- 10 TELEPHONE: [phone]
REQUEST:
On page 2, line 20 of the AVU-G-12-03 application, Avista states that one of the scenarios
scrutinized for cost-effectiveness was the "inclusion of a natural gas distribution capacity cost
value" in the avoided cost. Does Avista normally exclude natural gas distribution capacity value
in its avoided cost? Please explain.
RESPONSE:
In previous applications of the avoided cost to demand side resources there was no known estimate
of incremental distribution capacity cost. Average distribution capacity costs were available, but
they were unsuitable for application to demand side resources.
In this most recent evaluation the natural gas avoided cost was augmented with the incremental
distribution capacity cost from a recent Oregon study. Based upon discussions with natural gas
planning experts it was concluded that this study was applicable to the overall Avista system. The
incremental distribution capacity cost was stated as a 20 year levelized value and incorporated into
the demand side resource avoided cost as such.
The 10% preference for demand side resources was applied to the summation of the natural gas
avoided cost and the incremental distribution capacity cost.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/21/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff-i 1 TELEPHONE: [phone]
REQUEST:
Please provide the number of participants for each of Avista's Idaho gas DSM programs for the
last five years.
RESPONSE:
Please refer to Staff _PR_i 1 Attachment A for the measure/projects (participants) for Idaho natural
gas DSM for the years requested.
Excerpted from Avista 1s 2011 DSM Annual Report Work Papers
Number of DSM Measures/Projects Incented
Prog Segment State 2011 2010 2009 2008 2007
Appliances Res ID 1,200 1,608 1,106 657 -
Energy Star Homes Res ID 13 15 - 32 -
HVAC Res ID 932 1,299 1,032 692 404
Water Heaters Res ID 80 171 160 106 34
Weatherization Res ID 982 1,240 1,194 704 562
Multi-Fam Direct Install Res ID - 1 22 5 -
HVAC LI ID - - - 7 11
Weatherization LI ID 281 225 191 142 120
Water Heaters LI ID - - 3 6 4
Energy Smart NRes ID - 1 1 - -
Prescriptive NRes ID 41 14 8 4 347
SS HVAC NRes ID 35 41 54 103 88
SS Shell NRes ID 34 71 40 31 33
SS Other NRes ID 5 10 8 15 8
3,603 4,696 3,819 2,504 1,611
Staff—PR-11 Attachment A.xlsx Page 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/16/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff-12 TELEPHONE: [phone]
REQUEST:
Please provide the number of Idaho homes funded by Avista's gas low income weatherization
program in calendar years 2007-2011.
RESPONSE:
The number of Idaho homes funded by Avista' s natural gas low income weatherization program
for the requested calendar years are provided below.
2011-105
2010 -72
2009 -68
2008-51
2007-42
SYM1 VXSIS) 1 iTt1WOJ1
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/17/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff- i 3 TELEPHONE: [phone]
La.i1IJ
For those homes identified in your response to the previous question please provide: a) average
cost per home with administrative fees included, b) average cost of home without administrative
fees, c) total administrative fees paid to the CAP for weatherization of homes, and d) total
payments paid to the Community Action Partnership for weatherization of homes.
RESPONSE:
Please refer to Staff _PR_i 3 Attachment A for a) average cost per home with administrative fees
included, b) average cost of home without administrative fees, c) total administrative fees paid to
the CAP for weatherization of homes, and d) total payments paid to the Community Action
Partnership for weatherization of homes identified in the Staff production request 12.
IPUC Staff Request No. 13
AVU-G-12-03/AVU-G-12-06
(a)
Avg Cost per Home
w/Admin
2011 $ 2,562
2010 $ 3,307
2009 $ 2,407
2008 $ 2,988
2007 $ 3,195
(b) (c) (d)
Avg Cost per Home Total Admin Total Pmts
w/o Admin Paid Paid for Wzn 1
$ 2,228 $ 35,091 $ 233,938
$ 2,876 $ 31,056 $ 207,038
$ 2,093 $ 21,345 $ 142,302
$ 2,599 $ 19,880 $ 132,531
$ 2,778 $ 17,503 $ 116,684
1) Total payments for weatherization net of admin fees
Staff—PR-13 Attachment A.xlsx Page 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/20/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Chris Drake
TYPE: Production Request DEPARTMENT: Demand Side Management
REQUEST NO.: Staff-14 TELEPHONE: [phone]
REQUEST:
Are homes weatherized under Avista's gas low income weatherization program required to have
gas space and/or water heating? Please explain.
RESPONSE:
Homes must use Avista natural gas as their primary source of space heat to be eligible for
weatherization measures such as attic, floor and wall insulation as well as Energy Star doors and
Energy Star windows. Natural gas water heat is not required to be eligible for weatherization
measures. Primary space heat does not affect eligibility for energy star appliances, lighting and
other electric devices.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/21/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Renee Coelho
TYPE: Production Request DEPARTMENT: DSM
REQUEST NO.: Staff-15 TELEPHONE: [phone]
REQUEST 15:
Please provide a copy of Avista's current contract for low income weatherization with the
Lewiston CAP agency.
RESPONSE:
See Staff _PR_15 Attachment A for a copy of the 2012 contract for the Lewiston Community
Action Partnership.
AO MO,
O!fler$fflciencyMe.res
This Agreement for Installation of Energy Efficiency Measures ("Agreement) is entered into hWJi Aita
Corporation ("Avista"), a Washington corporation, and Community Action Partnership - Lewiaton
("Agency"), a Washington

to corporation, (soniethnes individuall3. a Party" and collectively, the
'Parties").
I. Dejuitions.
For, purposes of this Agreement, the folk'wing detinitkn apply:
LI Administrative Costs" mean administrative and geneml costs (including salaries and overhead)
directly orrectly related to ft Agencys participation under this Agreement, excluding the cost
of' equipment or the labor associated with installing such equipment.
"DOE Specifications" mean the document tLuiiled State of Washington Department of Commerce
Weatherization Manual for Managing the l..ow Income Weathcriion Program; April 2009 edition
with 2010 and 2011 revisions" which is incorporated into this tg*tiiient by this reference.
1.3 "Eligible Dwellings" or "Dwellings" mean real or personal property within Avita"s service territory
in the States of Washington and ldaIn, inhabited as the principal residence oft Low Int.ome
Household, and include single-family homes, duple.es. triplexes, fbur-plexes, multi-unit residential
housing complexes and mobile homes that utilize Avita-suppIied electricity and/or natural gas:
exceptthat duplexes, triplexes, fourplexes and muli -uni& residential housing complexes are eligible
only if at least one-half of the Dwelling units are occupied by *Low Low Income Household.
1.3.1 Electric Dwellings must utilize: (i) permanently installed electric space heat (identified by
Avista as a Dwelling with winti 1 i. .i' at least 3.000 kWh for the most recent winter
season) to quali for

%a -% fhi weatherization imprt.vernents, electric space heat
conversions tonatural gas atd/or othe' Measures agreed to by the Parties; and (ii) Avista-
supplied electricity for water heating to qualify tkr funding to upgrade or convert existing
water heaters.
13.2 Natural Gas Dwellings st utilize permanently instilled natural gas space heat (identified
by Avista as a Dwelling with winter usage of at ieat 160 thcrms at such dwelling for the
most recent winter season) to qualify for funding for weatheriatift improvements, licatinu
system upgrades and/or other Measures agreed to by the Parties.
.4 EnergyEfficiency Measures" or "Measures" mean the measures (including certain weatherizat ion
materials and/or change-outs of inefficient energy cquipment) described in the DOE Specifications
and/or the Tarift, copies of which may be accessed on Avista's website at www.avistatdilities.com .
Currently, the Measures listed in the attaclsd...'xhihit A" do not require Avista's preapprovnl.
while the Measures listed in the attached "E ihit B' do require preapprov&. The Mei'nres listed
Contract !'.0 1.3503
Staff—PR-1 5 Attachment A Page 1 of 11
liD Vwttee means an lndiVidual partnership, oporatIonor otherpar (or their authorized agent) who
has legal title to a Dwelling, is the mortgagor under a duyrecotded mortgage of real property lshe
trustee under a duly recorded deed o tnist, Is a purchase iider a duly recorded contract fiw the
purchase of real property, o has legal tItle to a mobile home
2.4 RS
14.1 The Agency shaH. vMft*U';wOf& or...enclng the ehgbilrty . Hof ids8nd.DWeflin$ to
pardcpate in the Program ("Records") Such Records must include the Household
itoformatiw.amOOnt of expenditures per Household, and other information gathered in the
regular course of quali*iog such. Household The Agency shall keep all Records until the
earlier :of. () dim .years creation:O[.fl •.Records or (ii) until such time as Avista has
O!!:WO D-35063
Staff—PR-1 5 Attachment A
Page 2 of 7
Page 2 of ii
!iIJLIIi ,7 i
2.4.3 116 Agener"I maintain Records of the inspections. dscribc Un Section 2.6 below.
By Contractor. The Agency shall encourage competition among Qualified Contractors for
supplying materials and/or inctailing Mcasur. The Agency shall utilize acompetitive
bidding process to insure that contraclois selected to provide the material and/or labcr to
install the Measures are .pnvidin such services at the lowest price, with due regard tr
materials, labor

ad. stim Bids on materials and jowr must be in accordance with
DOE Specifications and this Agreement. The Agency shall insure that the rgttts. rc,iietJk
and protections afforded Avista ati and participng Households itre preserved WI*I empIoyin
the use of a Qualified Contractor. The Agency shall be solely responsible to A ita and
participating Households frr acts or Omissions of any contractors hired b) the Agency to
perform any portion of the work applicable under this Agreement, or any person directly or
indirectly employed by such contractor, and shall indemnify A ista an"r participating
Households from same.
2. I After the Measures have been installed, the Agencyshall inspect the completed work LO insure
that such work has been performed in a worbrianlike inanneF accordance cordance with Avista 's
specifications, DOE Specifications and the Tariffs. The Agency shall make every reasonable
attempt to insure that the work s perfbrtned to the Sal kfaci ion ADf the Participant.
2.6.2 If, upon inspection, the Agency determines that remedial work i necessary to inwre that the
installed Measures comply with the installation requirements et forth in this Agreement. the
Agency shall arrange for perfbrmarne of such remedial work. The remedial work must be
completed within 30 days of the Agency's inspection unless otherwise agreed to by ili
Parties. As set forth in Section 3 below, Avkta reserves the right to conduct a post'.installation
inspection prior to providing prnrneiu for such installation.
2. Invoicing and Documentation.
2.7.1 Invoicing/Year End Invoicing. The Agency will use its reasonable best efforts to submit all
invoices within 30 days after installation of the Measures has been completed to qualify for
reimbursement under this Agreement. provide, hovever, that because invoices can only be
accpted for reimbursement in the current year. the Agency shall ensure that all installations
Contrail Na. D-35'm3
Staff_PR_15 Attachment A Lt•L 3 of 7 Page 3 of 11
2..3 Bid Resp The Agency shall retain a cops of all bids submitted for material and labor.
including !*ijc.an.. d address of ft tontractor and the amount of the bid,
3.1inspection of Facilities. Avista may, at u.s option duriag reasuitable hours, iii pect a Dwelling to
verify installation of the Measure(s) and compliance with the obligations set forth in this Agreement
(including continued operation of the equipment); and to insure proper administration of the
Program. This provision does not impose upon A ista any obligation t' an..inspection and
is not intended to substitute for or relieve the Agency and/or the Participant of any responsibihuie
under this Agreement.
. I . I If Avista elects to perform a post-installation inspection to verity installanon of the Measures,
such inspection will be conducted within I 0 business days of the final submission& oAvisft
by the Agency of all docwnentaticni related to the installation. The Agency's payment may
be delayed for any disputed work identified by Avisla until such time as correcuve work has
been completed. Within 30 da s of a post-installation inspection. Avista will notify the
Agency of any 4MO91 that need to be cured before, A isia will disburse payment to the
Agency for such instaflaticn.
3.1 .2 While Avista's post-inlation inspections will be completed in accordance with Section 3.
I above. Avista will hvethe right to inspect the Dwellings ilor as required by a government
agency having regulatory jurisdiction over Avisla to verily; (i) continued operation of the
equipment and (ii) the estimated savings.
3.2 Payment. Payments to the Agency will be due and pa)ablc 30 days after: (i) Aistas receipt of the
Agency's invoices as described in Section 2.7.1 above; or (ii) MSt'S receipt of the Agency
invoices and acceptance of the work re-performed wider this Agreement in the event 466'work
requires correction as dccribed in Section 161 above, whichever is later ("Payment Due Dat(;.
Avista may, in its sole discretion, designate a later Payment Dm Date provided that such Lr
Payment Due Date may not be more than ",.days tllowing the initial Payment Due Date tinIess
corrective work has not been performed and accepted by AASW
Contact Na D45063
Staff—PR-1 5 Attachment A FVVA of 7 Page 4 of 11
A'2.EjY1
4.PmFng.
4.1 .ctrdance with the terms of this Agreement, Avista Will reimburse the Agency for 100% ci the
cO of the Measures installed in accordance with this Agreement ("Total Rthznbursemeni.)up to
an amount not to exceed $940,000 over the 12-month period ending December 31, 2012 iIh
IUMIUMMIS M,
4.2 Agency Compensation.
4.2.1 Avista will reimburse the Agency for each invoices submitted by the Agency in accordance
WO Section 2.7 above; provided, however, that individual invoices must be submitted for
each project.
4.2.2. Avista will reimbursethe Agency br Administrative Costs as part of A vista's funding
obligation in an amount not to U-0.eed 15% of the amount funded by A isla per completed
Dwelling.
.1.2.3ifappicabte, Avista will compensate the Agency for the Health and Human Safety "HHS")
improvements agreed to by the Parties including the Agerie'. Administration Costs
calculated in accordance with Section 4.2.2 above.
4.2 .4 The Agency's compensation described in this Section k a portion ol. and not aim addition to.
the Total Reimbursement set fbrth in Section 4.1 above.
4.1 lni.alled costs may include labor, materials and the Agency's direct costs for wcatherii.imig or
installing energy efficiency equipment in a Dwelling.
MOM !XtE
5.Proi Records and Monitoring
5.1 The Agency's Records must be maintained in accordance with Section 2.4 above, in a lrrnat
mutually agreed to by the Parties.
5.2 Upon 15 days' prior written notice, during normal business hours. Avista may conduct financial
audits, monitor, or perform other compliance reviews of the Records and Agency procedures s
Avista deems appropriate. The number, timing and extent of such audits will be at the sole
discretion of Avistaand may be conducted by ,vista or its designee. Avista may, at its expense:
.2.1 Audit all Records and accounts maintained by the: Agency in accordance with this
Agreement;
.2.2 Obtain copies of all Records and accounts for purpos of review; and
.2.3 Review the Agency's procedures utilized to comply With, the recluircnlcnts set forth in this
Agreement.
.3 A ista will not publicly disclose customer-specific information without the prior written consent of
the Participant.
6.Term and Termination
6.1 This Agreement will becceffective on January], 20 12, and remain in effect until December 31.
2012, unless terminated at an earlier date in accordance with this Agreement or extended upon
mutual written agreement between the Parties.
6.2 Either Party may terminate this Agreement at any time tor its convenience, by giving 30 days prior
written notice to the other Party. Upon termination, each Parts shnll pay for its share of the
installation costs of the Measures which were contracted for prior to the termination date, after such
Màiures have been completed.
cnuract No. D-35063
Staff_PR_15 Attachment A - Page 50111
1.2 Neither Party shall be liable to the other Party for acts cr omissions of independent contractors.
.S The provisions of this Agreement will not be construed to authori7e either Party to act Uan agent or
representative of the other Party; rather, the Panies are independent contractors with respect to one
7.4 Except as otherwise provided for in this Agreement. .Avkia is not, nor will it be deemed to b, a
party to any contract or agreement entered into between the Agency and a Participant or with an
other independent Ooxftacton.~Nrprov isbn of goods and s ervices. [ an he Agency and/or y
contractor employed by the Agency are solely reponihk to the Participant for the types of
materials, methods of installation, quality and timing of such installations and any warranhiec with
respect to the Measures and/or their installation.
8.Indemnification. Each Party shall indemnif the other Party and its respjAve officers, agents and
employees from and against all claims, damages, losses, liabilities, and wqmft (including rsOrbk
atrorneys' ies) arising from such Party'snegligent or other tortious acts or omissions i ncluding acts 01
omissions of such Party's officers, agents or employees.
9.Assignment. Neither Party may assign this Agreement, either db*tly or indirectls., or any of the rights,
obligations, benefits and/or remedies conferred upon this Ament to a third party without the prior
written consent of the other Party, which consent will not be nTtasrrrIabR withheld or delayed: proided,
however, that either Party may assign this Agreement without consent, to an afliliated company that
controls, is controlled by, or is under common control with such Party, or to a successor in interest which
acquires all or substantially all of the property and assets of the Party. Furthermore. this Agreement will
be binding upon the successors and assigns of the Parties.
12. Entire Ameient. This Agreement contains the entire understanding between the Parties c oncerning its
subject matter, and is not intended to confer upon any cnhity other than Avista and the Agency any rights
or remedies under the Agreement. Any representation, promise, modification, or amendment to this
Agreement or any incorporated documents, except as provided for in the Agreement, will not be binding
upon either Party unless reduced to writing and signed by each Parry's authorized representative.
mendment and Waiver. This Agreement may not be modified or varied excep by written agreement
betWCCfl the Parties. The failure of either Party to require: performance of.anyprovision ol'this Agreement
s.s. ill not affect the right to require the pei*rmnncc at a subsequent time. Iff, at anytime, line, the tnins of this
ienit are not strictly adhered to or enforced, such requirements will not he deemed waived or
indifed, but wiU at till subsequent times be deemed in lull force and effect.
Contract ND5O6i
Staff—PR-1 5 Attachment A P Oi bl

Page 6 of 11
NMI'
AVIST*
- will be goi.em... ..theUcics and
Ki federal vigdadoft. In
ifcadóns. ap1icabIe relOns, and the.
Isccrion.
Carnract N. .D.35
Pai.r7
Staff_PR.j 5 Attachment A Page 7 of 11
www.evisftudkies.com
"Exhibit A"
Approved Energy Efficiency Measure
The following Energy Efficiency Measures do not require preapproval from Avista prior to
installation:
Natural Gas Measures
• Attic Insulation
• Wall Insulation
• Floor Insulation
• Duct Sealing
• Air Infiltration
• ENERGY STAR®
Doors
• ENERGY STAR®
Windows
Electric Measures
• Attic Insulation
• Wall insulation
• Floor Insulation
• Duct Sealing
• Air Infiltration
• ENERGY STAR®
Doors
• ENERGY STAR®
Windows
Conversion Measures
• Electric to natural gas
furnaces
• Electric to natural gas
water heaters
• Water Heaters
Staff—PR-1 5 Attachment A Page 8 of 11
www.avistautitities.com
"Exhibit B"
Energy Efficiency Measures
Refluirin2 Pre-Approval
Natural Gas Measures Electric Measures
• Furnaces ' Electric resistant to air source
heat pump conversion
• Wall Heaters • Air source heat pump
• Water Heaters • Energy Star Refrigerators
• Other
Energy Efficiency Measures that are marginally or not "cost-effective" by utility
standards will be reviewed on a case by case basis and must be pre-approved by Avista
prior to installation. Other Measures not listed above may be submitted for program
consideration.
Staff—PR-1 5 Attachment A Page 9 of I 1
www.avistautilities.com
"Exhibit C"
Pre-Approval Form for Avista Utilities
Low Income Weatherization Program
Community Action Partner:
Customer Name: Avista Account #__________________
Customer Address::
Type of Equipment Savings Agency Cost
Natural gas furnace 103 therms
Natural gas water heater
40 gallon
8 therms
Natural gas water heater
509allon
6 therms
Energy Star refrigerator 44 kWh
Other
Existing Equipment: Efficiency -
Proposed Equipment: Efficiency
Cost of equipment and installation $_____________ Estimated savings kWh/therm
Any additional information about the project:
Agency
contact:
APPROVED: Avista, dated:________________
Please provide a description of the improvement to be considered for approval and email or fax
to: Renee Coelho, Avista Utilities, renee.coelho(avistacorD.com or 509-777-5183.
Revised form: December 1, 2011
2012 Avista Invoice Form
Low Income Weatherization Program
Agency Name: Agency Contact: Agency Phone No:
Avista Utilities Account #: R# (For Electric Heat): Job Completion Date:
Tenant's Name: Service Address: Square Footage of Home (estimated):
Year Home Built (estimated):
Owner's Name: Owner's Address: !.Air.cnditioning:
Space Heating
Water Heating FuelL
High Efficiency Upgrades kWh/Therm Job Cost Weatherization kWh/Therm Job Cost
Natural Gas Conversions Savings Including Savings Including
SalesTax SalesTax
Programmable Thermostat 123 kWh Ceiling insulation sq ft
Gas Heat with A/C 31 therms Existing R-Value: 0 kWh
Zz
Space Heat Fuel Switch 10,212 New R-Value
Electric to 80% AFUE Gas Furnace 0 therms Nail Insulation sq.ft: _________ : :•
Water Heater Conversion 3181 kWh Existing R-Value: 0 kWh
Water Heater Upgrade 117 kWh New R-Value:
Refrigerator (pre '92 and functioning) 734 kWh Floor Insulation sq.ft:
Refrigerator (All others) 44 kWh Existing R-Value: 0 kWh
Gas Space Heat Upgrade: 104 therms New R-Value:
Energy Star Windows (Sq. Ft):Duct Insulation in ft 0 kWh
0 kWh Air Infiltration:
Energy Star Door 287 kWh Pre Test 0 kWh
Other (requires pre-approval) Post Test
Health & Human Safety Subtotal Weatherization Subtotal $0.00
H&HS Admin Fee (15%) $0.00 Conversion, Upgrade Subtotal:$0.00
Describe H&HS improvement Weatherization, Conversion, Upgrade Admin Fee: $0.00
Weatherization, Conversion, Upgrade Total: I $0.00 I
Health & Human Safety Total: $0.00
*All H&HS (to include admin fees) must not exceed 15% of annual contract Grand Total j $0.00
Attachment A Page 11 of 11
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/20/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Lori Hermanson
TYPE: Production Request DEPARTMENT: DSM PPA
REQUEST NO.: Staff-16 TELEPHONE: [phone]
REQUEST:
Please provide the estimated TRC ratio for Avista's gas low income weatherization program if
each dollar of non-utility investments in health, safety, and repair measures was counted as a dollar
of non-energy benefits.
RESPONSE:
Using health and human safety as a dollar of non-energy benefits increases the TRC ratio to 0.79
up from 0.54 provided in Staff Production Request No. 003. See Staff jR_16 Attachment A.
Excerpted from Avistas 2011 DSM Annual Report Work Papers
Attachment Staff—PR-016
Savings Avoided Costs Lost Revenue
Prog Segment State flProj Incent kWh Therms kWh Therms kWh Therms NEB Incr Cust $ NIU $ TRC
Weatherization LI ID 281 $ 211,706 - 12,835 $ - $ 138,104 $ - $ 117,368 $ 64,468 $ 211,706 $ 43,570
Staff—PR-16 Attachment A.xlsx Page 1
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION: IDAHO DATE PREPARED: 08/23/2012
CASE NO: AVU-G-12-03 / AVU-G-12-06 WITNESS: Bruce Folsom
REQUESTER: IPUC RESPONDER: Jon Powell
TYPE: Production Request DEPARTMENT: PP&A
REQUEST NO.: Staff-17 TELEPHONE: [phone]
REQUEST:
In 1997 the Commission approved Avista's request to suspend its natural gas DSM programs
when declining avoided costs caused those programs to be cost-ineffective. Please describe the
process and timeline by which Avista reconstructed its gas DSM programs when avoided costs
rebounded.
RESPONSE:
As part of the 1997 suspension of Avista's natural gas demand-side management (DSM) programs
the Company committed to; (1) monitoring the weighted average cost of natural gas as a proxy for
the avoided cost, (2) monitoring natural gas efficiency technologies for cost-effective
opportunities and (3) reviewing alternative implementation strategies in search for approaches that
would deliver cost-effective resources. The Company committed to performing the above tasks on
a continuous basis, not merely as part of biennial integrated resource planning processes or annual
DSM business planning activities.
In 2000 the Company observed prospective increases in the weighted average cost of natural gas.
Simultaneously the western states energy crisis of 2001 led to an increased degree of customer
focus upon energy efficiency that created an opportunity for the development of a cost-effective
natural gas portfolio. Consequently the suspended natural gas DSM portfolio was returned to an
active status in 2001.