20160229_4912.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:STACEY DONOHUE
DATE:FEBRUARY 24,2016
RE:AVISTA UTILITIES TARIFF ADVICE -ADV-16-O1-E
REVISION TO SCHEDULE NO.90:ELECTRIC ENERGY EFFICIENCY
PROGRAMS
BACKGROUND
On January 26,2016,Avista Utilities (“Company”)submitted a request to update Schedule
No.90,Electric Energy Efficiency Programs.Previously,Avista had a tiered system of energy
efficiency incentives based on the simple payback of a measure.Incentives ranged from $0.01-
$0.08 per kWh for measures with a 1-2 year simple payback to between $0.07-$0.20 per kWh for
measures with a 6-13 year simple payback.This tariff revision removes those tiers and provides the
same $0.20 per kWh incentive to all measures with a simple payback under 15 years.The revision
also increases the cap on incentive amounts.Specifically,incentives will be capped at 70%,rather
than 50%,of the incremental project cost for all projects with simple paybacks less than fifteen
years.The Company maintains that these changes are consistent with other utilities and the
Company’s 2016 Business Plan.
STAFF ANALYSIS
Staff has reviewed the modifications and finds the proposed incentive structure is more
understandable for customers and more closely aligns with the incentive structure currently used by
Idaho Power.Therefore,Staff recommends the Commission accept the revised Schedule No.90
tariff sheet for filing with an effective date of March 1,2016.
DECISION MEMORANDUM 1 FEBRUARY 24,2016
COMMISSION DECISION
Does the Commission wish to accept the Company’s revised Schedule No.90 tariff sheet for
filing w1ith an effective date of March 1,2016?
Dø
Stacey
udmemosiAvista Schedule 90 dcc memo
DECISION MEMORANDUM 2 FEBRUARY 24,2016