20151203AVU to Staff 10.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-10 TELEPHONE: [phone]

REQUEST:

Please provide evidence that “levelized incentives of $3.00 per first year therm savings for any project with a simple payback less than 15 years and capped at 70% of the project cost” (Application at 8) is reasonable and consistent with industry standards.

RESPONSE:

The Company believes that the levelized incentives of $3.00 per first year therm savings for any project with a simple payback less than 15 years and capped at 70% of the project cost is reasonable and consistent with industry standards based on research performed by Avista. The results of that research are below:
Cascade Natural Gas (WA): Custom natural gas incentives are capped at 25% of the value of the avoided natural gas costs up to 50% of customer incremental cost.
Puget Sound Energy (WA): Custom natural gas incentives are offered at $5.00/therm and capped at 70% of customer incremental cost.
Energy Trust of Oregon (Washington and Oregon): Custom natural gas incentives are offered at $2.50/therm and capped at 70% of customer incremental cost.