20190401Avista to Staff Supplemental 15-21.pdf

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Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170 =D
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March 29,2019
Idaho Public Utilities Commission
472W. Washington St.
Boise, lD 83720-0074
Attn: Diane Hanian
Re: Production Request of Commission Staff in Case No. AVU-G-I8-08
Dear Ms. Hanian,
Enclosed are Avista's Supplemental responses to IPUC Staffs production requests in the above
referenced docket. Included in this mailing are the original and two pqper copies of Avista's
response to production request: Staff 15-16 Supplemental and Staff 20-21 Supplemental. The
electronic version of the responses were emailed on 0312912019.
If there are any questions regarding the enclosed information, please contact Jaime Majure at (509)
495-7839 or via e-mail at [e-mail].
Sincerely,
/d/f"*,-%,,""
Regulatory Policy Analyst
Avista Utilities
j aime.maj ure@avistacorp. com
509.495.7839
Enclosures
X
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUzuSDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-18-08
IPUC Staff
Production Request
Staff - l5 Supplemental
DATE PREPARED: 0312512019WITNESS: NiA
RESPONDER: Amber Gifford
DEPARTMENT: Energy Efficiency
TELEPHONE: (509) 49s-2896
REQUEST:
Exhibit l, Section 4.8 indicates that the Company's nonresidential realization rates range from
42oh (Energy Smart Grocer) to l42Yo (Commercial Insulation). What steps is the Company taking
to improve the accuracy of the methodologies used to estimate nonresidential program savings?
RESPONSE:
Avista adaptively manages its programs to improve the accuracy of savings by incorporating the
findings and recommendations presented by their 3'd party EM&V evaluator - specifically those
items outlined in the Impact Evaluation Reports. Avista also engages regularly with the Regional
Technical Forum (RTF) and checks with other sources of Technical Reference Manuals (TRMs) to
best determine estimated savings values for its programs. In addition, Avista's in-house
engineering staff is vital in calculating estimated savings when there is no other source available.
With respect to the Energy Smart Grocer (ESG) program specifically, the Company is bringing all
of the offerings previously being delivered through the ESG program in-house, with the exception
of refrigeration engineering specialties, which Avista will take care of through a Request for
Proposal (RFP) for professional services. Historically, the ESG program had been administered
by a third party, ClearResult.
With respect to the Commercial Insulation program, Avista has not made an adjustment to its unit
energy savings based on Nexant's evaluation. The rationale for not making an adjustment to the
savings values was that the sample size from which the realization rate was derived was arguably
too small to be statistically valid. Our current EM&V vendor, Cadmus, has provided the Company
with its 2018 semiannual report, which shows a l00o/o realization rate for Commercial Insulation.
SUPPLEMENTAL RESPONSE (03 l2s 12019):
Energy Smart Grocer:
To provide further context, the information provided below outlines the conclusions and
recommendation identified in Nexant's 2016-2017 Natural Gas Impact Evaluation Report,
with respect to the Energy Smart Grocer Program:
Conclusion: The Energy Smart Grocer Program constituted about 6%o of the nonresidential
natural gas portfolio energy shares. The evaluation team found arealization rate of 42Yo for
this program, predominately due to a zero realization rate that was found for a few large
projects in the sample, based on utility bill analysis.
Recommendation: The Energy Smart Grocer program is implemented by a third party. It
is recommended that for large projects, Avista work more closely with the implementer to
ensure accurate reporting.
Alternative to working more closely with the implementer, Avista's response to Nexant's
recommendation was to bring all offerings previously being delivered through the program
in-house, effective starting the 2019 program year (with the exception of refrigeration
engineering specialties as stated in the original response). This will provide us with greater
visibility and the ability to work more closely on these projects.
During a conference call between Avista and IPUC Staff on 0312112019, the Company was asked
to provide project counts for 2016 &2017 for the Natural Gas ESG program. Please see the Table
No. I belowl for the ESG project counts:
Table No. I - Energy Smart Grocer Prosram. Proiect Count 2016-2017
Measure
2016
Project
Count
20t7
Project
Count
ESG SS Cases 1 J
ESG SS HVAC 0 I
Commercial Insulation program
During the aforementioned conference call, Staff also asked Avista to provide the project
counts for 2016 &, 2017 for the Natural Gas Commercial Insulation Program. Table No. 2
below2 provides the desired project counts:
Table No. 2 - Natural Gas Commercial Insulation Program. Proiect Count 2016-2017
Measure
2016
Project
Count
20t7
Project
Count
PSC Insulation 0 6
Of the 6 projects in2017, Nexant sampled 3 of those in determining the realization rate. More
information around Nexant's analysis can be found in section 4.3 of the 2016-2017 Natural Gas
Impact Evaluation.
Based on the low project count, Avista chose to conservatively leave the savings values the same
for 2019 program year. We will watch the program throughput and adaptively manage as needed
based on the next evaluation of the program.
| 2016 &.2017lD Annual Conservation Reports
2 2016 & 2017 lD Annual Conservation Reports
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUzuSDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVti-G-18-08
IPUC Staff
Production Request
Staff - 16 Supplemental
DATE PREPARED
WITNESS:
RESPONDER:
DEPARTMENT:
TELEPHONE:
03/2512019
N/A
Amber Gifford
Energy Efficiency
(s09) 49s-2896
REQUEST:
Exhibit l, Section 5.8 indicates that the Company's residentialrealization rates range ftom28oh
(Low Income Conservation) to 212% (Energy Star Homes). What steps is the Company taking to
improve the accuracy of the methodologies used to estimate residential program savings?
RESPONSE:
Avista adaptively manages its programs to improve the accuracy of savings by incorporating the
findings and recommendations presented by their 3'd party EM&V evaluator - specifically those
items outlined in the Impact Evaluation Reports. Avista also engages regularly with the Regional
Technical Forum (RTF) and checks with other sources of Technical Reference Manuals (TRMs) to
best determine estimated savings values for its programs. In addition, Avista's in-house
engineering staff is vital in calculating estimated savings when there is no other source available.
SUPPLEMENTAL RESPONSE (03 125 12019)z
Low Income Program:
To provide further context, the information below outlines the conclusions and
recommendation identified in Nexant's 2016-2017 Natural Gas Impact Evaluation Report
with respect to the Low Income Program:
Conclusion: The verified savings for the gas conservation homes was very low relative to
Avista's reported savings, with a realizationrate of 28o/o. This is a departure from the
previous evaluation which found a realizatron rate of 101o/o. Moreover, the evaluation
observed unexpected increases in consumption on average after the first year of the
biennium.
Recommendation: The evaluation team recommends that Avista maintain its current
assumptions for conservation measures due to the diverging reahzatton rates between the
prior and current evaluations that appear to be driven by varying participant consumption
profiles.
Avista's response to Nexant's recommendation was to maintain current assumptions for the
low-income natural gas program and evaluate and adaptively manage the program based on
Cadmus' evaluation results following the closure of the 2019 program year.
Energy Star Homes:
The Energy Star Home program saw very little throughput with 1 project in2016 and 2 projects in
2017, providing just under 1,100 therms in total savings. In order to adaptively manage this
program, the Company worked with Applied Energy Group (AEG) to develop a new UES value
for the natural gas energy star home program. Although the program saw a 212% realization rate,
the UES values projected a lower overall therm savings value than what the Company had in its
plan. The Company will continue to monitor the realization rate on this program and evaluate if
future adjustments are needed.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUzuSDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-18-08
IPUC Staff
Production Request
Staff - 20 Supplemental
DATE PREPARED: 0312512019WITNESS: N/A
RESPONDER: Amber Gifford
DEPARTMENT: Energy Efficiency
TELEPHONE: (509) 49s-2896
REQUEST:
Are the fuel efficiency savings reported in Exhibit 1, Table 5-13, corrected for the effects of
weather? If so, please explain how this was done.
RESPONSE:
Table 5-13 simply reflects Avista's reported increase in natural gas consumption by residential
customers due to the impact of the Company's Fuel Efficiency Program and is not corrected for the
effects of weather.
SUPPLEMENTAL RESPONSE (03 12512019):
Table 5-15 of the 2016-2017 Natural Gas Impact Evaluation Report identifies the weather
normalized 2017 gross verified savings of negative 82,948 therms.
In addition, the information provided below outlines the conclusions and recommendation
identified in Nexant's 2016-2017 Natural Gas Impact Evaluation Report, with respect to the
Fuel Efficiency Program:
Conclusion: The evaluation team found that the homes analyzed that converted from
electric heat to a natural gas furnace showed an average weather normalized gas
consumption increase of 328 therms per year, resulting in a70%o reahzation rate. This
impact andrealization rate is very similar to findings from the prior evaluation (384 therms
increased consumption with a70o/o realization rate).
Recommendation The evaluation team recommends Avista review its forecasted gas
penalty for the Fuel Efficiency program. Based on two cycles of evaluation, the program
appears to be over-estimating the actual impact.
Avista's response to Nexant's recommendation was to adjust the savings values for the 2019
program year onward, in accordance with Nexant's report.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JUzuSDICTION
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-18-08
IPIIC Staff
Production Request
Staff - 21 Supplemental
DATE PREPARED: 0312512019WITNESS: N/A
RESPONDER: Amber Gifford
DEPARTMENT: Energy Efficiency
TELEPHONE: [phone]
REQUEST:
Please provide the technical manual(s) used to estimate DSM energy efficiency savings for 2016
and2017.
RESPONSE:
Please see Staff PR_21 - Attachment A for 2016 unit energy savings and Staf{_PR_2l -
Attachment B for unit energy savings.
SUPPLEMENTAL RESPONSE (03 t25 12019):
Per a conference call with IPUC Staff on 0312112019, clarification was provided around this
request, making clear that Avista is being asked to provide a technical manual listing the
procedures, policies, and guidance that identifies how savings are estimated for all site specific
projects.
As all site specific projects are custom and unique in nature, no technical manual exists to support
this request. Each site specific project contains a full project documentation file that consists of
calculations, methodology, assumptions, etc.
Because of the nature of the specific request, Avista's Energy Eff,rciency Engineering Staff
proposes an in-person meeting with Staff at your offices to walk through any of our site specific
projects and corresponding documentation, with explanations, would be in order. This would also
give the engineering team a chance to review and explain how our intemal processes are changing
given the implementation of iEnergy, our new Energy Efficiency database, and get Staff feedback
while we are designing new programs in the software. Three hours should suffice for project
samples and questions from Staff.