20130801Application.pdf

Avista Corp.
141 1 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
July 31, 2013
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, ID 83720-0074
Dear Ms. Jewell:
Re: Avista Application No. AYU-E-B- g,
Dear Ms. Jewell:
Enclosed for filing with the Commission is an original arrd 7 copies of the Company's
application requesting an increase to Schedule 9l rates, "Energy Efficiency Rider Adjustment,"
also known as the ooenergy efficiency tariff rider." Schedule 91 is designed to recover the costs
incurred by the Company associated with providing electric energy effrciency services to
customers.
Please direct any questions on this matter to Bruce Folsom, Sr. Manager, Energy Efficiency at
[phone] or myself at [phone].
Sincerely,
4*.&""^;
Manager, Regulatory Policy
Avista Utilities
linda. gervais@avistacorp. com
509-49s-4975
Attachements
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COI.]NSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX3727
14I1 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220.37 27
TELEPHONE: [phone]
david. meyer@avistacorp. com
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CASE NO. AVU-8.8. O{
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR THE
REQUEST TO DECREASE ITS ENERGY
EFFICIENCY RIDER ADJUSTMENT
SCHEDIII,F, qI
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L INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
at l4ll East Mission Avenue, Spokane, Washington, respectfully requests approval of a increase
to Schedule 91 rates o'Energy Efficiency Rider Adjustment".
22 The Company's tariff rider mechanism is designed to match future revenue with
23 budgeted expenditures. To ensure appropriate recovery, the mechanism includes a true-up
24 feature that reconciles the previous periods' actual expenditures and collections. The purpose of
25 this filing is to establish tariff riders that are sufficient to fund the following twelve months of
26 DSM as well as amortize any tariff rider imbalance, thus minimizing the amount of future under-
27 or over-collections. In this filing, Avista proposes to increase billed electric rates by 1.2%o
28 through proposed revisions in Schedule
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AVISTA SCHEDULE 91RATE ADruSTMENT FILING PAGE 1
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The Company requests that this filing be processed under the Commission's Modified
Procedure rules.
Communications in reference to this Application should be addressed to:
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Govemmental Affairs
Avista Corporation
P.O.Box3727l4ll E. MissionAvenue, MSC-I3
Spokane, WA 99220-3727
Phone: [phone]
david. meyer@avistacorp. com
Linda Gervais
Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
1411 E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
linda. [e-mail]
t4 II. BACKGROT]NI)
15 As of May 31, 2013, the current Schedule 9l (electric) tariff rider balance was
16 approximately $3.0 million underfunded. Underfunded balances indicate that more tariff rider
17 funding was needed to fund the ongoing Demand Side Management (DSM) operations. This
18 underfunded amount is primarily driven by the Company's nonresidential Tl2 to T8 market
19 transformation program which contributed to prescriptive lighting incentives exceeding the $1.2
20 million budgeted incentives by $4.0 million.
2l During 2012, the Company leveraged regional and national efforts to accelerate the
22 conversion of T12 fluorescent lighting fixtures to higher efficiency T8 fixtures. Avista's
23 conversion program was specifically designed to target the replacement of existing operational
24 Tl2 fixtures. The program featured a prescriptive incentive available for a limited period of
25 time, an application process specific to the needs of this program and a coordinated outreach
26 progftLm focusing the customers attention on the need to take action by a pre-specified deadline.
AVISTA SC}IEDULE 91RATE ADruSTMENT FILING PAGE 2
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The program required customers to submit their rebate applications between January lst,2012
and December 31't, 2012. Customer participation significantly exceeded expectations with a
total of 4,740 rebates being received during this time. Participation was heavily weighted
towards the last month of that program, indicating the value of the pre-specified program
deadline and further defining a potentially replicable approach to replace-before-bumout
efficiency opportunities in the future.
In the past, the increase to Schedule 91 allowed for adequate revenue to both fund current
energy efficiency operations as well as to reduce the accumulation of the underfunded tariff rider
balance. The tariff rider adjustment proposed in this filing is designed to recover the under-
funded balance over a two-year period, and provide approximately $6.4 million in annual
revenue to fund ongoing electric effrciency.
Schedule 9l funds DSM programs described in the Company's Schedule 90. All
Schedule 9l DSM revenue is applied only to the provision of electric efficiency service
including programs oflered by the Company directly, through designated contractors, or as part
of regional electric programs as well as evaluation, measurement and verification (EM&V).
These progftrms include but are not limited to the following:
. Appliance measureso Compressed air measures
r HVAC measureso Industrial measures
o Lighting measureso Maintenance measureso Motors measures
o Northwest Energy Efficiency Alliance participationo Shell measwes
o Sustainable Building measures
o Behavioral programs
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AVISTA SCI{EDULE gIRATE ADruSTMENT FILING PAGE 3
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The Company's programs are based on providing a financial incentive, or o'rebate," for
cost-effective efficiency measures with a simple payback of greater than one year and up to
thirteen years. This includes approximately 300 measures that are packaged into about 30
programs for customer convenience.
Avista has long encouraged the direct-use of natural gas to its electric customers. As an
electric energy efficiency program, the Company is continuing this effort with residential rebates
for the conversion of electric to natural gas space and water heat loads as well as a broad
progftrm for any non-residential electric to natural gas conversions meeting specified criteria for
relative British Thermal Unit (BTU) efficiency. The cost-effective potential for these measures
has been incorporated into Avista's Integrated Resource Planning effort and are contained within
the identified acquisition goal.
Avista's residential programs include high efficiency equipment, electric to natural gas
conversions, Compact Fluorescent Lamps (CFLs), "second" refrigerator recycling,
weatherization, as well as providing educational assistance through various community events.
For non-residential customers, in addition to prescriptive (or oostandard offer") programs,
Avista offers site-specific (or customized) services. The site-specific progftrm provides
incentives on any cost-effective commercial and industrial energy efficiency measure with a
simple financial payback exceeding one year, up to thirteen years. This is implemented through
site analyses, customized diagnoses, and incentives determined for savings generated specific to
customers' premise or process. In addition to the site-specific offering, commercial and
industrial programs available to Avista customers include lighting and controls, commercial food
service equipment, premium efficiency motors, power management for personal computer
networks, commercial HVAC variable frequency drives, refrigerated warehouses, vending
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AVISTA SCHEDULE gIRATE ADruSTMENT FILING PAGE 4
1 machine controllers, demand controlled ventilation, side-stream filtration, steam trap
2 replacement and repair, multifamily development, electric to natural gas water heater
3 conversions, and commercial clothes washers.
4 In addition to Avista's prescriptive and site-specific progftrms, the Company helps fund
5 the activities of the Northwest Energy Efficiency Alliance (NEEA). NEEA focuses on using a
6 regional approach to obtain electric efficiency through the transformation of markets for
7 efficiency measures and services. These programs bring resource acquisition opportunities to
8 Avista that would otherwise be either unachievable or more costly in the absence of regional
9 cooperation. Historically, Avista has received approximately 1.5 to 2 aMW of savings in its
l0 service territory from NEEA programs.
11 The Company provided approximately $700,000 for low-income weatherization in20l2
12 and an additional $50,000 for conservation education in Idaho. This program is administered by
13 the local community action agencies in our Idaho service territory.
14 In 2012, approximately 17.8 Full Time Equivalents (FTE) delivered energy effrciency
15 programs and measures resulting in Idaho local electric savings of 24,183 MWh from local
16 programs and 15,943 MWh through NEEA (130% of the IRP goal).
Several metrics are applied to determine the costs and benefits of these programs. The
Company has calculated the Total Resource Cost (TRC) test and the Program Administrator Cost
(PAC) to provide insights into program efficacy.t Ratios over 1.0 illustrate that benefits exceed
I The Total Resource Cost Test measures the net costs of a demand-side management program as a resource option
based on the total costs of the program, including both the participants' and the utility's costs. The Program
Administrator Cost Test measwes the net costs of a demand-side management program as a resource option based
on the costs incurred by the program administrator (including incentive costs) and excluding any net costs incurred
by the participant. The benefits are similar to the TRC benefits. Costs are defined more narrowly.
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AVISTA SCTIEDULE 91RATE ADruSTMENT FILING PAGE 5
1 costs. For 2012, the Company's DSM portfolios were cost-effective with TRC and PAC ratios
2 of 1.58 and2.69, respectively, for the electric portfolio
3 The Company has regularly convened stakeholder meetings to gain input from customer
4 representatives, Commission staff members, and individuals from the environmental
5 communities. In these stakeholder meetings the Company's program offerings are reviewed as
6 well as the underlying cost-effectiveness tests and results. The Company continues to appreciate
7 the time and input provided by Avista's stakeholders.
8 Yr. REQUEST FOR APPROVAL
9 In conclusion, Avista respectfully requests the Commission approve the proposed
l0 increase in rates and charges in Schedule 91. The estimated annual revenue change associated
ll with this filing is an increase of approximately $2.6 million for electric Schedule 91, or an
12 increase of l.2Yo in overall billed rates. The proposed rate increase will have an average monthly
13 bill impact to residential electric customers using 930 kwh of $0.92 increase to their bill, or
t4 r.t7%.
15 YII. CUSTOMER NOTIFICATION
16 Notice to the public of the proposed rates and charges, pursuant to IDAPA 31.2I.02.102,
17 will be given simultaneously with the filing, by posting a notice at each of the Company's
18 district offices in Idaho, which is attached as Attachment A. Notice of proposed rates will also
19 be given to all Idaho customers by individual bill insert. The proposed effective date is October
20 1,2013.
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AVISTA SCI{EDULE gIRATE ADruSTMENT FILING PAGE 6
VIIL CONCLUSION
2 WHEREFORE, Applicant respoctfrrlly requests the Commission issue its Order
3 finding the proposed rates and charges in Schedule 91 attached to this Application as Attachment
4 B to be fair, just, reasonable and nondiscriminatory, and effective for electric sernice rendered on
5 and after October l,20l3,withthis application being processed uader Modified Procedure.
DATED at Spokane, Washington, this 3lst day of July,20l3.
7 AYISTA CORPORATION
8 Bv4' a /^o*/
9 Kelly O.Norwood,
l0 Vice President State and Federal Regulation
AVISTA SCIIEDTJLE gIRATE ADruSTMENT FILING PAGE 7
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VERIFICATION
STATE OF WASHINGTON )
)CountyofSpokane )
Kelly Norwood, being first duly sworn, on oath deposes and says: that he is the
Vice President of Starc and Federal Regulation for Avista Utilities; that he has read the abovc
and foregorng Application, knows the contents thereof, and believes the same to be tnre.
SIGNED AND SWORN to before me this 3ls day of July z}l3,by Kelly Norwood.
Commission Expires:
in and for
AVTSTA SCHEDULE gIRATE ADruSTMENT FILING PAGE 8
l.P.U.C. No.28
Tenth Revision Sheet 91
Canceling
Ninth Revision Sheet 91 91
AVISTA CORPOMTION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shall be applicable to all
retail customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incurred by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 1 - .245 O, per kWh Schedule 25 - .142 g per kWh
Schedule 11 & 12 - .2711 per kWh Schedule 25P - .131 I per kWh
Schedule 21 &22 - .2091 per kWh Schedule 31 & 32 - .2401 per kWh
Flat rate charges for Company-owned or Customer-owned Street Lighting
and Area Lighting Services (Schedules 41,42,43,44,45,46,47,48 & 49) are to be
increased by 2.670/o.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 31, 2013 Effective October1,2013
UtilitiesBy f Kglly O. Nonruood, Vice-President, State & Federal Regulation
rull*r=d
l.P.U.C. No.28
Tenth Revision Sheet 91
Canceling
Ninth Revision Sheet 91 91
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shal! be applicable to all
retail customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incurred by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 1 - 245.1 per kWh Schedule 25 - .142 S per kWh
Schedule 11 & 12 - 271 O per kWh Schedule 25P - .131 $ per kWh
Schedule 21 &22 - 2Og O per kWh Schedule 31 & 32 - .24O 0, per kWh
Flat rate charges for Company-owned or Customer-owned Street Lighting
and Area Lighting Services (Schedules 41,42,43,44,45,46,47 ,48 & 49) are to be
increased by 2.670/o.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued Julv 31.2013 Effective October 1. 2013
ssued Avista
Kelly O. Norwood, Vice-President, State & Federal Regulation
l.P.U.C. No.28
Ninth Revision Sheet 91
Canceling
eepheement+igng+ Revision Sheet 91 91
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY R!DER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shall be applicable to all
retai! customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incurred by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 1 - +re i per kWh Schedule 25 -+861 per kWh
Schedule 11 & 12 - # $ per kWh Schedule 25P - S8O I per kWh
Schedule 21 &22 - # I per kWh Schedule 31 & 32 - A42 f per kWh
Flat rate charges for Company-owned or Customer-owned Street Lighting
and Area Lighting Services (Schedules 41,42,43,44,45,46,47,48 & 49) are to be
increased by 1*EX.
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued lutfg0;2e12 Effective Oeteber-L+e#l
Avista
Kelly O. Nonrvood, Vice-President, State & Federal Regulation