20151202AVU to Staff 1.doc

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION

JURISDICTION: IDAHO DATE PREPARED: 12/02/2015
CASE NO: AVU-G-15-03 WITNESS: N/A
REQUESTER: IPUC RESPONDER: Mike Dillon
TYPE: Production Request DEPARTMENT: DSM
REQUEST NO.: Staff-01 TELEPHONE: [phone]

REQUEST:

Please provide a cost-effectiveness forecast for the first year of Avista’s Idaho natural gas programs. This forecast should include the same information provided in Table 1: Washington Natural Gas Programs Cost-Effectiveness (Application at 7). Please explain how the Company calculates the UCT, TRC, PCT, and RIM for each program and include all associated workpapers and files with formulas intact.

RESPONSE:

The Company forecasts a UCT of 1.84 and a TRC of 0.90 for the Idaho 2016 Natural Gas portfolio.

Program: therms TRC UCT PCT RIM ID LI 9,435 1.49 0.82 NA 0.31     Web Tstat 2,209 0.46 1.40 1.08 0.39 Prescriptive Res 103,599 0.87 2.24 5.34 0.21 SSSS 4,622 1.02 3.82 2.15 0.49 Residential 110,430 0.86 2.24 5.17 0.21   NonRes HVAC 11,954 2.12 3.36 8.10 0.48 NonRes Shell 2,481 1.02 1.54 4.25 0.40 Food Service Equipment 9,630 1.72 1.94 12.30 0.44 Site Specific 74,335 0.74 1.55 2.13 0.41 SMB 14,472 2.32 2.03 NA 0.43 C/I 112,872 0.88 1.69 2.72 0.42     ID NG TOTAL 223,302 0.87 1.98 4.29 0.27     ID NG TOTAL W/LI 232,737 0.90 1.84 4.58 0.27
Please see Staff_PR_01 Attachment A (provided on CD).

The calculations of the cost-effectiveness are outlined below:

Utility Cost Test: UCT = (Present Value of Avoided Natural Gas/1.1)/(Incentive Paid for EEM + Non Incentive Utility Costs)

Total Resource Cost Test: TRC = (Present Value of Avoided Natural Gas + Non-Energy Impacts)/(EEM Incremental Cost + Non Incentive Utility Costs)

Participant Cost Test: PCT = (Retail Natural Gas savings value over the measure life of the EEM + Non-Energy Impacts)/(EEM Incremental Cost – Incentive Paid for EEM)

Ratepayer Impact Measure: RIM = (Present Value of Avoided Natural Gas/1.1)/(Incentive Paid for EEM + EEM Incremental Cost + Non Incentive Utility Costs)

Avista has traditionally included the 10% regional conservation preference credit within avoided costs, however regionally this has only been applied to the TRC/SCT ratios.

EEM = Energy Efficiency Measure.

Non Incentive Utility Costs could include 3rd Party Implementation Costs, Avista Labor and Overhead. NIUC and 3rd party costs are broken out separately in the spreadsheet to help directly apply the 3rd party costs to the appropriate programs.
Non Incentive Utility Costs could include 3rd Party Implementation Costs, Avista Labor and Overhead. NIUC and 3rd party costs are broken out separately in the spreadsheet to help directly apply the 3rd party costs to the appropriate programs.
Avista has traditionally included the 10% regional conservation preference credit within avoided costs, however regionally this has only been applied to the TRC/SCT ratios.
Non Incentive Utility Costs could include 3rd Party Implementation Costs, Avista Labor and Overhead. NIUC and 3rd party costs are broken out separately in the spreadsheet to help directly apply the 3rd party costs to the appropriate programs.

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