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AVISTA UTILITIES
SELECTED RESEARCH AND DEVELOPMENT
EFFICENCY PROJECTS - IDAHO
Annual Report
March 31, 2021
RECEIVED
2021March 31, AM 11:31
IDAHO PUBLIC
UTILITIES COMMISSION
Avista Research and Development Projects Annual Report
March 31, 2021
THE FOLLOWING REPORT WAS
PREPARED IN CONFORMANCE WITH
IDAHO PUBLIC UTILITIES COMMISSION (IPUC)
CASE NO. AVU-E-13-08
ORDER NO. 32918
March 31, 2021
Avista Research and Development Projects Annual Report
March 31, 2021
ANNUAL REPORT
SELECTED RESEARCH AND DEVELOPMENT EFFICENCY PROJECTS
IPUC CASE NO. 32918
TABLE OF CONTENTS
I. SCOPE OF WORK ................................................................................................................. 1
A. Introduction ........................................................................................................................... 1
B. Background ........................................................................................................................... 2
II. KEY EVENTS ......................................................................................................................... 2
A. Request for Proposal ............................................................................................................ 2
B. Selection of Projects ............................................................................................................. 3
C. Description of Selected Projects ........................................................................................... 4
D. Project Manager and Related Communications ................................................................... 5
E. Agreements .......................................................................................................................... 5
F. Project Milestones ................................................................................................................ 6
III. ACCOUNTING ....................................................................................................................... 8
A. Schedule 91 Available Funds ............................................................................................... 8
B. Funds Authorized for R&D Projects in 2019/2020 ................................................................ 8
C. Funds Expended and Remaining Balance ........................................................................... 9
D. Cost-Recovery ...................................................................................................................... 9
IV. PROJECT BENEFITS ............................................................................................................ 9
A. IR Camera Phase II .............................................................................................................. 9
B. Gamification of Energy Use Feedback ............................................................................... 10
C. Energy Trading Phase II ..................................................................................................... 10
V. RESEARCH IN-PROGRESS (2020-2021) .......................................................................... 10
A. Summary of Research In-Progress .................................................................................... 10
B. Other Relevant Activity ....................................................................................................... 13
LIST OF APPENDICES
APPENDIX A Two-Page Reports from FY 19-20
APPENDIX B Request for Proposal
APPENDIX C University of Idaho Agreements
APPENDIX D Final Report: IR Camera Phase II
APPENDIX E Final Report: Gamification of Energy Use Feedback
APPENDIX F Final Report: Energy Trading System Phase II
APPENDIX G Two-Page Report: Gamification of Energy Use Feedback Phase II
APPENDIX H Two-Page Report: Energy Storage & Real-time Demand-Response
APPENDIX I Two-Page Report: Automating Predictive Maintenance for Energy Efficiency
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I. SCOPE OF WORK
This report is prepared in conformance with Idaho Public Utilities Commission (IPUC)
Order No 32918. This includes key events during the reporting period and accounting
for related expenditures.
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or
Company), at 1411 East Mission Avenue, Spokane, Washington, is an energy
company involved in the production, transmission and distribution of energy as well
as other energy-related businesses. Avista Utilities is the operating division that
provides electric service to nearly 340,000 customers and natural gas to about
300,000 customers. Their service territory covers 30,000 square miles in eastern and
southern Washington, northern Idaho and parts of southwestern and northeastern
Oregon, with a combined population of 1.5 million. Avista also provides retail electric
service in Juneau, Alaska through a subsidiary called Alaska Electric Light and Power
Company.
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On August 30, 2013 Avista applied for an order authorizing it to accumulate and
account for customer revenues that will provide funding for selected electric energy
efficiency research and development (R&D) projects, proposed and implemented by
the State of Idaho’s four-year Universities. On October 31, 2013, Order No. 32918
was granted to Avista by the IPUC. Avista now recovers up to $300,000 per year of
revenue for research from the Company’s Schedule 91 Energy Efficiency Rider tariff.
This program provides a stable base of research and development funding, allowing
research institutions to sustain quality research programs that benefit customers. It
is also consistent with the former Idaho Governor’s Global Entrepreneurial Mission
(IGEM) initiative in which industry would provide R&D funding to supplement funding
provided by the State of Idaho.
In the 1990s, with the prospect of electric deregulation, utilities reduced or eliminated
budgets that would increase costs not included by third-party marketers for sales of
power to end-users. R&D was one of those costs. This has led to the utility industry
having the lowest R&D share of net sales among all US industries.
In 2010, the former Governor announced Idaho would support university research as
a policy initiative with some funding provided by the state and supplemental funding
expected from other sources. This project provides additional funding to selected
research.
For Order No. 32318, “R&D” is defined as applied research and development that
could yield benefits to customers in the next one to four years.
II. KEY EVENTS
The Request for Proposal (RFP) for projects funded in the 2019/2020 academic year
was prepared and distributed to three Idaho Universities in March 2019. A full copy
of the RFP is included in Appendix B.
On April 21, 2019, Avista received 10 proposals from the University of Idaho, 1
proposal from Boise State University, and 2 proposals from Idaho State University.
Following is a list of the proposals received:
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University of Idaho
1. Cellulosic 3D Printing of Modular Building Assemblies
2. Energy Trading System for Prosumers Phase 2 - Selected
3. Flexible Demand Side Management in Smart Districts Using Fluid-Flow Load
Scheduling
4. Microgrid Load Shed Project
5. Self-Healing Resilient Distribution System Based on Software Defined
Networking (SDN) Technology
6. Smart Asset Management for Avista System
7. Gamification of Energy Use Feedback - Selected
8. Systematic Evaluation of the Effectiveness of Nano-ceramic Coatings as
Thermal Insulators
9. Using IR Cameras in Building Controls Phase 2 - Selected
10. High Energy Efficient Window Frames Coupled with Aerogel, Glazing and
Wall Insulation Phase 3
Boise State University
11. Development of A Single-Phase Residential Statcom (R-STATCOM)
Idaho State University
12. Intelligent Frequency Control
13. Viability of Kettle Falls Wood Ash in Concrete Mixes
Avista prepared an evaluation matrix for the 13 proposed projects. A team of
individuals representing Distribution, Transmission Planning, Generation and
Demand Side Management, co-filled out the matrix to rank each of the projects. The
following criteria, in no particular order, were considered in the ranking process.
• Research Areas Already Being Done (EPRI, WSU, AVA)
Complement/Redundant/New
• Potential Value to Customers kwh/KW/$ (1-10)
• CO2 Emission Reduction (Y/N)
• Market Potential (1-10)
• Are Results Measurable (Y/N)
• Aligned with Avista Business Functions (Y/N)
• New or Novel (Y/N)
• Ranking (1 -10)
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Following is a brief description of each of the three selected projects from the
2019/2020 academic year. Project teams compiled “Two-Page Reports” which
summarized and highlighted project details. These Two-Page Reports are included
in Appendix A. Additional details are included in the final project reports in Appendix
D, Appendix E, and Appendix F.
Integrated Design Lab (IDL): Using IR Cameras in Building Controls Phase II
(referred to as IR Camera Phase II)
Summary of Phase I
This project demonstrated the feasibility of using a low-cost infrared camera to
estimate the mean radiant temperature in a room. This radiant temperature
information was used to more effectively heat and cool buildings. The team set up a
camera in an experimental chamber and collected data from various scenarios. Once
collected, the team processed the data into a comfort prediction and sent that
information as a standard control signal. Energy models were used to estimate the
potential energy savings of incorporating an infrared camera into building’s
thermostats.
Project Description for Phase II
The goal of using IR cameras in building controls is to bring the concept of infrared-
enhanced thermostats closer to commercialization. The infrared thermostat combines
a miniature infrared camera on a micro processing board to replace a traditional
thermostat and deliver more efficient heating and cooling signals. This project builds
on two previously funded Avista grants concerned with operative temperature control
(controls that take into account the surrounding surface temperatures in a room).
For Phase II, the IDL team performed product testing by routing a control signal into
a piece of HVAC hardware. This enabled the IR-camera thermostat to manage a
space’s conditions based on the surface temperatures. Additionally, the team used
their prototype to craft an initial business plan and secured commercialization funding
from the M.J. Murdock Charitable Trust.
Gamification of Energy Use Feedback
In human systems, feedback is essential to understanding the relationship between
effort, error, and optimal (or at least successful) performance. If human users can be
made explicitly aware of the essential elements of their performance, they can modify
that performance. The intent in this project was to use the gaming metaphor to make
attention to feedback appealing and frequent. The most effective feedback systems
then offer behavioral options, i.e., actions a user can take to change his or her future
outcomes. A slate of options that affect usage, but also bring users to educational
modules and helpful products will be recommended.
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Gamification can stimulate greater attentiveness to energy use; attention can lead to
reductions in usage. A gamification system will give the utility the ability to incentivize
conservation and can also reward citizens for continuing education about energy
systems and products.
Designing and Evaluating an Energy Trading System for Prosumers (referred to as
Energy Trading Phase II)
The objective of this project is to analyze and develop a prototype system that would
enable Avista prosumers and consumers to trade power on-demand with utility
oversight, or with the utility, while also ensuring the utility’s network resilient operation.
In Phase I of this project, the team completed the analysis and implementation of the
first prototype of this application. In Phase II, the team proposed to design, implement,
and integrate a transaction prioritization and pricing algorithm into this prototype.
Such algorithm would have the goal of maximizing the economic benefit, welfare, and
availability of the electric power grid in the presence of prosumers, while adequately
incentivizing prosumer-offered services where and when needed. Such a system will
enable Avista to create a new market for prosumer-consumer power trading as well
as plan, manage, and control such market and the flow of power through its network.
Avista hired an independent third-party project manager based in Idaho. On
September 26, 2014 Avista entered into an agreement with T-O Engineers as this
independent third-party project manager. T-O Engineers is an engineering consulting
company based in Idaho, with offices in Boise, Coeur d’Alene, Meridian and Nampa,
Idaho, as well as Cody, Wyoming, Heber City, Utah, and Spokane, Washington.
T-O is tasked with providing project management, organizational structure, milestone
setup, milestone tracking, and incidental administrative services. The project
manager for T-O Engineers is JR Norvell, PE and the deputy project manager is
Natasha Jostad, PE. JR and Natasha are based out of the Coeur d’Alene and
Spokane offices, respectively.
By August 2019 Avista executed individual task orders for each of the University of
Idaho research projects selected. The agreements are included in Appendix C.
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The following graphics identify the overall research and development milestones, as
well as the milestones proposed for each project. Final reports from each Principal
Investigator were submitted in the fall of 2020. In addition to the written final report,
each research team presented their findings to Avista via web conference. The
COVID-19 pandemic did not permit in-person presentations. The Gamification of
Energy Use Feedback team presented their findings to Avista on August 19, 2020.
The Energy Trading System Phase II team presented on August 20, 2020, and the
IR Camera Phase II team presented on August 26, 2020.
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III. ACCOUNTING
Effective November 1, 2013, Avista can fund up to $300,000 per year of R&D from
revenue collected through Avista’s Schedule 91, Energy Efficiency Rider tariff. At the
end of each year, any monies not allocated toward payment on R&D projects roll over
as available resources for the next year. A summary of the balance for Schedule 91
from the beginning of Order No. 32918 is shown in the table below.
Academic
Year
New
Funding
Balance
from
Previous
Year
Total
Funds
Available
Contracted
Amount
Actual
Expenditures Balance
2014/2015 $300,000.00 $0.00 $300,000.00 $287,941.00 $243,467.32 $56,532.68
2015/2016 $300,000.00 $56,532.68 $356,532.68 $252,493.00 $235,809.03 $120,723.65
2016/2017 $300,000.00 $120,723.65 $420,723.65 $372,665.16 $358,641.82 $62,081.83
2017/2018 $300,000.00 $62,081.83 $362,081.83 $317,074.89 $313,757.29 $48,324.54
2018/2019 $300,000.00 $48,324.54 $348,324.54 $299,463.00 $265,826.86 $82,497.68
2019/2020 $300,000.00 $82,497.68 $382,497.68 $287,400.00 $267,519.42 $114,978.26
2020/2021 $300,000.00 $114,978.26 $414,978.26 $252,622.00
Contracts for 2019/2020 are as follows:
Agency Project Contract
Amount Point of Contact
University of Idaho IR Camera Phase II $ 52,500.00 Dr. Damon Woods
University of Idaho Gamification of Energy Use $ 108,736.00 Richard Reardon
University of Idaho Energy Trading Phase II $ 96,164.00 Dr. Yacine Chakhchoukh
T-O Engineers Project Manager $ 30,000.00 Natasha Jostad
Total $ 287,400.00
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Following is the final budget summary for 2019/2020 FY R&D Projects.
Agency Project Contract
Amount
Total
Expended
Budget
Remaining
University of Idaho IR Camera Phase II $ 52,500.00 $ 50,808.16 $1,691.84
University of Idaho Gamification of Energy Use $ 108,736.00 $ 95,142.12 $ 13,593.88
University of Idaho Energy Trading Phase II $ 96,164.00 $ 96,164.00 $ 0
T-O Engineers Project Manager $ 30,000.00 $25,405.14 $ 4,594.86
Totals $ 287,400.00 $ 267,519.42 $ 19,880.58
The costs associated with R&D are funded from revenue collected through Avista’s
Schedule 91 – Energy Efficiency Rider Adjustment. The outstanding balance was
rolled over to the current year’s R&D budget, as seen in the table in Section III A. All
R&D projects are invoiced on a time and materials basis with an amount not to
exceed. The costs would be included in Avista’s annual tariff filing in June if the rider
balance requires a true-up.
IV. PROJECT BENEFITS
With this funding, the research team developed a working prototype of a novel
thermostat based on infrared camera technology. This thermostat can save energy
and improve occupant comfort. The Avista sponsored research enabled the University
of Idaho to secure a Murdock Commercialization Initiation grant in 2020 to bring this
technology to market. The Avista research grant supported a graduate engineering
student through his thesis program. The Murdock grant that came as a result of the
Avista research has employed five students (four in business and one in computer
science). The university will be seeking a provisional patent for this technology in the
coming months. The lab anticipates that the commercialization of this technology will
lead to lower energy bills for utility customers who install this thermostat, lowered peak
demands during the summer, and economic dividends for the university and Avista
once the technology is licensed.
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University of Dayton engineering professor Kevin Hallinan suggests that behavioral
changes alone could reduce residential energy consumption by a third. We have
proposed, and are developing and testing, just such a behavioral change program
based on gamification. Gamification is the use of the entertaining aspects of games
to motivate desired behaviors. The goal is to use online games as attractants that
encourage customers to pay closer, and more frequent, attention to the detailed
energy usage data that is now readily available to them online. If customers can be
made explicitly aware of their energy performance, they can modify that performance.
A feedback loop is created: Attention to usage followed by a conservation action, then
re-attention to usage data. Monitoring usage, adjusting behavior to reduce usage, then
checking on the outcome of that effort becomes another game. The advantages of
such a system are many. First, it is low cost. Rich usage data is already posted to
customers’ online accounts and ready to be examined. The games and connections
to actions within customers’ accounts are simple programming issues. No hardware
add-ons or specialized devices are needed. Second, the actions offered to customers
when they check their usage data can be directly tied to improving efficiency; but they
can also be linked to other desirable activities within the utility website (e.g.,
completing a customer profile, shopping for energy-saving appliances, viewing
educational text and videos, guidance on how to do a household self-audit, etc.).
Third, the attraction games can themselves be a source of information by providing
tips, by prompting deeper explorations of the utility website, and by offering marketing
opportunities.
The economic benefits to customers are expected to result from two objectives:(1)
Improving the operational efficiency and reliability of the power grid that uses
increased local distributed energy resources. This should reduce the rate of utility
investments in traditional generation and transmission, which should result in cost
savings for the utility. (2) The potential for additional energy generation from solar or
other distributed resources that would be expected from a distributed and competitive
market should lead to cost savings for consumers.
V. RESEARCH IN-PROGRESS (2020-2021)
There are currently three projects in progress for the 2020/2021 academic year.
Project kick-off meetings were held via web conference in September 2020. Two
stage gate meetings will be held throughout the academic year where the teams have
an opportunity to showcase their research and plan upcoming work with input from
Avista. Two-Page Reports were prepared in the spring of 2021 and describe the
project objectives, business value and industry need. Additionally, the individual
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project tasks are summarized. Two-Page Reports are included in Appendices G, H,
and I. Each team will present their research and findings to Avista in the fall of 2021,
as well as prepare a final research report. Final reports will be filed with the 2022
Annual Report.
The individual project tasks for the current IPUC funded projects are presented below.
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A progress meeting is held twice monthly for each project. These meetings typically
take 0.5 hours and include a review of schedule, bi-monthly progress reporting,
invoicing, Avista comments, and action items for the next meeting. The meetings are
organized and led by the Independent Program Manager, T-O Engineers. Attendees
for each meeting include the Principal Investigator, Co-Investigators, Student
Researchers, Avista personnel, and the Independent Program Manager.
Contracts for the FY 20-21 projects total $252,622.00 and are summarized below.
Agency Description Contract
Amount Point of Contact
University of Idaho Gamification of Energy Use Phase II $ 63,483.00 Richard Reardon
University of Idaho Energy Storage & Real-time
Demand-Response $ 77,027.00 Dr. Yacine Chakhchoukh
University of Idaho Automating Predictive Maintenance
for Energy Efficiency $ 82,112.00 Dr. Damon Woods
T-O Engineers Project Manager $ 30,000.00 Natasha Jostad
Total $ 252,622.00
Funds expended, and additional budget details will be summarized in the 2022
Annual Report.
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