20220506Avista to Staff 15-18 - Redacted.pdf

AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
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JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-G-22-01
Staff
Production Request
Staft-0l5
DATE PREPARED: 0515/2022WITNESS: N/A
RESPONDER:
DEPARTMENT:
TELEPHONE:
Amanda Ghering
Regulatory Affairs
509-495-7950
REQUEST:
In response to Production Request No. l, the Company provided a copy of an e-newsletter sent to
its Washington and Idaho customers. The newsletter states Washington customers can participate
in the Company's renewable natural gas ("RNG") program but makes no mention of the proposed
progmm for Idaho customers. If the program is approved in Idaho, would the Company provide
similar communication to Idaho customers? Please explain.
RESPONSE:
Yes, if the program is approved in Idatro, the Company plans to send similar communication
material to its Idaho natural gas customers as its Washington natural gas customers. The specific
communication materials that will be sent have yet to been determined but will include email
communications to natural gas customers and promotions through Avista's monthly Connections
newsletter.
AYISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
ruRISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-22-01
Staff
Production Request
Staff-016
DATE PREPARED: 051512022WITNESS: N/A
RESPONDER: Amanda Ghering
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]
REQUEST:
ln response to Production Request No. 6, the Company provided a sample Washington customer's
bill.
a. Please provide an Idaho specific example of a customer bill showing how monthly
charges for program participation will be presented.
b. Please explain if 1.5 therms of RNG are actually purchased by the Company for each
program block purchased by a customer. If so, will a customer's total energy charges for
traditional natural gas be reduced or credited by 1.5 therms for each program block
purchased?
c. Please describe all environmental attributes associated with 1.5 therms of RNG and how
each attribute impacts the $5 block cost.
d. If a meter multiplier will be used on Idaho customers' bills, please explain how the
multiplier value is determined. Please provide supporting workpapers.
RESPONSE:
a. Please see Staf[-PR-016 Attachment A for an example of an Idaho customer's billing
statement with the Voluntary RNG program included.
b. Yes, 1.5 therms of RNG are purchased by the Company for each program block purchased
by a customer. The Company will unbundle the RNG, meaning it separates the commodity
or energy from the thermal certificate associated with the RNG. For purposes of the RNG
progftrm, the unbundled cost of the energy is not included in the program costs (see line l6
of Confidential Attachment A submitted with the Company's filing). The thermal
certificate is then held to be retired on behalf of the RNG program participants. As such, a
customer's total energy charges for nafural gas is not reduced or credited as the customer is
paying an incremental cost in addition to these charges for the environmental athibutes of
the RNG.
c.The environmental attribute associated with RNG is referred to as a thermal certificate and
is the environmental value component of the RNG. Without the thermal certificate, the
RNG would be valued at the current natural gas commodity cost. At our current cost of
RNG of $I po Dth, the impact to the $5 block of these attributes is $3.1l. The energy
cost of this gas is equal to $0.489 per 1.5 therms.
d. A meter multiplier will not be used for the voluntary RNG program.
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AVISTA CORPORATION
RESPONSE TO REQIIEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AW-G-22-01
Staff
Production Request
Staff-0l7
DATE PREPARED: 051512022WITNESS: N/A
RESPONDER: Amanda Ghering
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]s0
REQUEST:
In response to Production Request No. 9, the Company stated that there is no definitive timeline to
offer hydrogen as a program option. Please explain why hydrogen is listed as a program option in
proposed tariff Schedule I 95.
RESPONSE:
Hydrogen may be considered an option in the future to replace geologic natural gas with a
zero-carbon fuel. Hydrogen can either be blended up to a certain percentage or combined with
carbon to create a synthetic methane. Avista will rely on market information and Integrated
Resource Planning (IRP) among other methods to determine the least cost and least risk fuel tlpe
to offer customers for this renewable tariff. The Company listed hydrogen as a program option
now as it will likely be offered in the future. When it is offered, the Company will propose to revise
its tarifffor Commission approval to include a hydrogen option similar to the option of Renewable
Natural Gas.
AVISTA CORPORATION
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:
CASE NO:
REQUESTER:
TYPE:
REQUEST NO.:
IDAHO
AVU-G-22-01
Staff
Production Request
Stafl-018
DATE PREPARED: 051512022WITNESS: N/A
RESPONDER: Amanda Ghering
DEPARTMENT: Regulatory Affairs
TELEPHONE: [phone]
REQUEST:
Please describe all financial incentives related to RNG that the Company considered for this
program. If the Company did not consider Federal Renewable Fuel Standard ("RINs") or the
Califomia Low Carbon Fuel Standard ('LCFS") please explain why not.
RBSPONSE:
The Company did not consider any financial incentives related to RNG for this progr.rm as this is a
voluntary program with no minimum purchase requiranent of RNG to support the program. RNG
is verified through a methodology of certification of the fuel source and tracked until combustion,
known as the thermal certificate. If Avista were to sell the thermal certificate for purposes of the
RIN or LCFS, the thermal certificate and value of the RNG is no longer held, meaning the RNG
cannot be used for purposes of the company's progfirm. As such, selling the thermal certificates
instead of retiring them for purposes of the program would make the program no longer valid.