20130923notice_of_application_order_no_32895.pdf

Office of the Secretary
Service Date
September 23,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA )
coRPoRATION',S APPLICATION TO FUND ) CASE NO. AVU-E-13-08
SELECTED RESEARCH AND )
DEVELOPMENT EFFICIENCY PROJECTS. ) NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 32895
On August 30,2013, Avista Corporation applied to the Commission for an Order
authorizing the Company to accumulate and account for customer revenues that will provide
funding for selected electric energy effrciency research and development ("R&D") projects,
proposed and implemented by Idaho's four-year universities. The Company seeks authorization
to fund up to $300,000 per year of R&D from revenue collected through Avista's Schedule 91,
"Energy Efficiency Rider Adjustment" (the "Rider") effective November 1,2013. Application at
1,9. For a residential customer using 930 kwh per month, the Company's proposal represents
about an 0.08p per month bill increase. Id. at 3. The Company asks for the case to be processed
by Modified Procedure.
With this Order, the Commission provides notice of Avista's Application and that
interested persons may file written comments about the Application as set forth below.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista generates, transmits, and distributes
electricity in northern Idaho and eastern Washington.
YOU ARE FURTHERNOTIFIED that in its Application, the Company notes that the
utility industry has the lowest R&D share of net sales among all U.S. industries. The Company
explains that the average U.S. industry R&D funding as a percentage of total sales is 3.5%, but
that the average R&D funding for the utility industry is 0.1%. Further, the Company's spending
for R&D included in Idaho rates as a recoverable expense was $196,000 in2012, or 0.8% of
Idaho total electric retail revenue. Id. at 2-3. This amount consisted of payments to the Electric
Power Research Institute, E-Source, and the Northwest Energy Efficiency Alliance. Id. at3.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO. 32895
YOU ARE FURTHER NOTIFIED that Avista now proposes to recover up to
$300,000 per year of applied R&D costs from Rider revenue. The Company explains that such
R&D could benefit customers in the next one to four years. The Company says that some, but
not all, applied R&D projects would likely be implemented on a utility's system. Id. at3.
YOU ARE FURTHER NOTIFIED that the Company says the additional $300,000
per year of funding would represent a customer bill increase of about Oloh per month for a
residential customer using 930 kwh per month. The bill increase would be about 0.08p per
month (about $1.00 per year). Id. at3.
YOU ARE FURTHER NOTIFIED that the Company says its Application is
consistent with Governor Otter's Idaho Global Entrepreneurial Mission "iGem" initiative, in
which industry supplements university R&D funding provided by the State. Id. at I,3. The
Company says its proposal would enhance educational and training opportunities for future
utility employees, and invest revenues from customers into ldaho's economy. Id. at 4.
YOU ARE FURTHER NOTIFIED that the Company's additional $300,000 per year
of applied R&D funding would be a ceiling and not a requirement that the Company allocate the
funding to R&D in any given year. Any remaining balance (not earmarked) would roll over to a
future year and, if terminated, the unallocated portion would be added back to the Rider balance.
Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company says the process would begin
with it issuing a "call for papers" (similar to a "request for interest"). The Company would
choose proposals for funding and would contract with the selected proposal's Principal
Investigator (the lead scientist/engineer for the proposal). A third-party project manager would
be retained to oversee the project and serve as a liaison to utility staff. The Company will use
"stage gate methodology" and project assessment points when structuring proposals and
managing projects. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company says it will file an annual report
by March 3l for the preceding calendar year. The report will include key events during the
reporting period (e.g., discussions about the "call for papers," project selection process, project
descriptions, project manager, associated contracts, project milestones, research in-progress
summaries, etc.) and the accounting for related expenditures. The Company will also include
financial reporting in its annual Demand Side Management Report, and will discuss R&D
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO. 32895 2
activity at its semi-annual energy efficiency Advisory Group meetings and public interest
webinars. Id. at9.
YOU ARE FURTHER NOTIFIED that Avista says it has notified the public about
the revisions proposed in its Application by posting notice on its website,
www.avistautilities.com . Id. at 9.
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. The Commission
may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 3l.01.01 .000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through204 of the Idaho Public Utilities Commission's Rules
of Procedure, IDAPA 31.01.01.201 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 by
October 21r 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32895
Applicant at the addresses reflected below:
Commission Secretary Linda M. Gervais
Idaho Public Utilities Commission Manager, Regulatory Policy
1411 E. Mission Avenue, MSC-29
Street Address for Express Mail: Spokane, WA99220-3727
PO Box 83720
Boise, ID 83720-0074
472 W . Washington Street
Boise, ID 83702-5918
Avista Corporation
P.O.Box3727
E-mail: linda. [e-mail]
David J. Meyer
Vice President and Chief Counsel of
Regulatory and Govemment Affairs
Avista Corporation
1411 E. Mission Avenue, MSC-13
Spokane, WA99220-3727
E-mail : david.meyer@.avistacorp.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 "Utility 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
Company 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.
ORDER
IT IS HEREBY ORDERED that the Company's Application be processed by
Modified Procedure. Interested persons may file comments no later than October 21,2013.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32895
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this A34
day of September 2013.
ATTEST:
O:AVU-E-13-08_kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
oRDER NO. 32895
MACK A. REDFO SSIONER
MARSHA H. SMITH, COMMISSIONER