20130816notice_of_application_order_no_32878.pdf

Office of the Secretary
Service Date
August 15.20 13
BEFORE: THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR ) CASE NO. AVU-E-13-05
AUTHORITY TO INCREASE ITS ENERGY )
EFFICIENCY RIDER ADJUSTMENT, ) NOTICE OF APPLICATION
SCHEDULE 91 1
) NOTICEOF
) MODIFIED PROCEDURE
1
) ORDER NO. 32878
On August 1, 2013, Avista Corporation dba Avista Utilities filed an Application
requesting authority to increase its "Energy Efficiency Rider" found in tariff Schedule 91. The
Schedule 91 tariff rider is designed to "match future revenue with budgeted [energy efficiency]
expenditures." Application at 1. The tariff rider mechanism includes a true-up that reconciles
the previous periods actual expenditures with Schedule 91 collections. Avista proposes to
increase its Schedule 91 rider rates by 1.2%. The proposed tariff rider is designed to recover a
purported $3 million deficit in the rider account over a two-year period and provide
approximately $6.4 million in annual revenues to fund ongoing energy efficiency programs
NOTICE OF APPLICATION
A. Tlze Rider Programs
YOU ARE HEREBY NOTIFIED that the Company reports that as of May 3 1, 2013,
the fund balance in the Schedule 91 tariff rider account was approximately $3.0 million
underfunded. The Company reports that the underfunded amount is primarily the result of the
Company's efforts to accelerate the conversion of "TI2 fluorescent lighting fixtures to higher
efficiency T8 fixtures." Id. at 2.' During 2012, Avista operated a T12 conversion program
where it issued 4,740 rebates to customers. The Company had budgeted approximately $1.2
million for this conversion program but issued approximately $5.2 million in rebates. Avista
I Generally T12 fluorescent lighting fixtures use "older" magnetic ballasts while TS fixtures use newer electronic
ballasts. TS lamps with electronic ballasts are more energy efficient than T12 lamps with magnetic ballasts.
Electronic ballasts will generally reduce the overall load on a circuit by reducing energy demand. See
~v~~w.UltraLuxLigl~t~comifluorescent titbefaq.11ttnl.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32878 1
said that a significant number of rebate requests were received in the last month of the program
(December 2012). Id. at 3.
YOU ARE FURTHER NOTIFIED that the Schedule 91 rider funds a variety of
demand-side management (DSM) programs directed at improving the Company's energy
efficiency services. These programs include rebates for: energy efficiency appliances, HVAC
improvements, lighting measures, electric motor measures, and participating in the Northwest
Energy Efficiency Alliance (NEEA). The Company has about 30 programs for customers to
utilize. Application at 4. 111 addition, the Company encourages its all-electric residential
customers to convert to natural gas space and water heating. Id.
YOlJ ARE FURTHER NOTIFIED that the Company also assists in funding various
NEEA programs. NEEA operates and implements programs that promote electric conservation
and efficiency in Avista's service territory. "Historically, Avista has received approximately 1.5
to 2 aMW of savings in its service territory from NEEA programs." Id. at 5. The Company also
provides $700,000 for low-income weatherization programs in 2012 and an additional $50,000
for conservation education in Idaho. The low-income weatherization program is administered by
the local community action agencies in the Company's Idaho service territory.
YOU ARE FURTHER NOTIFIED that in determining the cost-effectiveness of its
various DSM programs, the Company applies several evaluation metrics. In particular, the
Company utilizes the total resource cost (TRC) test and the program administrator cost (PAC)
test to evaluate the cost-effectiveness of its DSM programs. The Company asserts that ratios
over 1.0 illustrate that program benefits exceed costs. "For 201 2, the Company's DSM portfolios
were cost-effective with TRC and PAC ratios of 1.58 and 2.69, respectively." Id. at 6.
B. The Proposed Rider Increase
YOU ARE FURTHER NOTIFIED that increasing the Schedule 91 Energy Efficiency
Rider by 1.2% in overall billed rates would result in a proposed monthly rate increase in the rider
of $0.92 for the average residential electric customer utilizing 930 kwh per month. This
represents an increase of 1.17% per month for the average residential customer. The table below
reflects the proposed increase to the Energy Efficiency Rider for various customer classes:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32878 2
EXISTING PROPOSED
SCHEDULE
Residential Customers - Sch. 1
General Service - Sch. 1 1 & 12
Large General Service - Sch. 21 & 22
The Company proposes that the Commission process this case under Modified Procedure and
Extra Large Customers - Sch. 25
Clearwater Paper - Sch. 25P
Pumping Service - Sch. 3 1-32
requests that the proposed tariff Schedule 91 rider be increased effective October 1,2013.'
RATE
0.1466 per kwh
0.1626 per kwh
0.1256 per kwh
NOTICE OF MODIFIED PROCEDUm
RATE
0.2456 per kwh
0.27 16 per kWh
0.2096 oer kwh
0.086$ per kwh
0.086 per kwh
0.1426 per kwh
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
0.1426 per kwh
0.1316 per kwh
0.2406 per kwh
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules
of Procedure, IDAPA 3 1.0 1.0 1.20 1 through .204. The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than September 10, 2013. If necessary, the Company may file reply comments to be due no
later than September 13, 2013. The comment must contain a statement of reasons supporting
the comment. Persons desiring a hearing must specifically request a hearing in their written
comments. Written comments concerning this Application shall be mailed to the Commission
and the Applicant at the addresses reflected below:
On July 30,2013, Avista also filed two other proposals to change its electric rates. First, the Company proposed to
increase its Power Cost Adjustment (PCA) rebate in tariff Schedule 66. If approved, the uniform PCA rebate would
result in an overall decrease in the PCA rate of (33%). Case No. AVU-E-13-04. Avista also proposed to adjust its
Residential Exchange Program (REP) credit (tariff Schedule 59) to reflect a decrease in BPA-derived benefits from
the federal Columbia River power system to residential and small farm customers. Reducing the level of benefits
from BPA's Residential Exchange Program will result in a net reduction of the benefit of approximately $1.1
million, or approximately 0.5%. The reduction in the BPA credit is a federal "pass-through" generally not subject to
this Commission's approval. Avista Tariff Advice No. 13-05-E. The requested effective date for both these rate
changes is October 1,2013 - the same requested effective date for the Energy Efficiency Rider.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32878 3
Commission Secretary David J. Meyer
Idaho Public Utilities Commission Vice President and Chief Counsel of
PO Box 83720 Regulatory and Government Affairs
Boise, ID 83720-0074 Avista Corporation
14 1 1 E. Mission Avenue
Street Address for Express Mail: Spokane, WA 99220-3727
E-mail: david.~ncyer~?a~istacorp.com
472 W. Washington Street
Boise, ID 83702-591 8 Linda Gervais
Manager, Regulatory Policy
Avista Corporation
141 1 E. Mission Avenue
Spokane, WA 99220-3727
E-mail: Iinda.gervais@,a~~istacorp.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.puc.idaho.gov. Click the "Case Comment or Question
Form" under the "Consumers" tab, and complete the comment form using the case number as it
appears on the front of this document. These comments must also be sent to the Applicant at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission's web site at www.puc.idaho.gov. Click on the
"File Room" tab at the top of the page, scroll down to "Open Electric Cases,'' and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32878 4
Idaho Code $9 61-336, 61-502, and 61-622. The Commission may enter any final Order
consistent with its authority under Title 6 1.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure. IDAPA 3 1 .O1 .01.000 et seq.
O R D E R
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons wishing to file comments or protests in this matter must do so no later than
September 10, 2013. The Company may file reply comments, if necessary, no later than
September 13, 2013.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /?*
day of August 20 13.
MACK A. REDFORD, C@M?&SSIONER
MARSHA H. SMITH, COMMISSIONER
ATTEST:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32878 5