20140918Application.pdf

Aviata Gorp.
1411 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 8OO-727-9'|7O
September 17,2AA
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
Dear Ms. Jewell:
Re: Avista Application No. AYU-E-L -ID
Dear Ms. Jewell:
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Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company), at l4ll
East Mission Avenue, Spokane, Washington, respectfiilly requests approval to use, when
available, funds from Schedule 95 *Optional Renewable Power Rate" to promote grants for
rooftop solar installations, 20 kW or smaller, on commercial buildings in Idatro.
Enclosed for filing with the Commission is an original and 7 copies of the Company's
applieation.
Please direct any questions on this matter Renee Coelho at [phone] or myself at (509)
495-4975.
Sincerely,
lJ'n
4r-J" frluHro
Manager, Regulatory Policy
AvistaUtilities
linda. gervais@avistacorp. com
509-495-4975
Attachements
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DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O.B,O){3727
I4I I EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220 -37 27
TELEPHONE: (509) 49s-4316
david. meyer@ avistacorp. com
IN THE MATTER OF THE APPLICATION )
oF AVTSTA CORPORATION FOR THE )
REQUEST TO USE AVAILABLE FUNDS )
FROM SCHEDULE 9s TO PROMOTE )
ROOFTOP SOLAR TNSTALLATIONS )
ON COMMERCIAL BUILDINGS )
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AVU-E-|4-ID
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I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
at l4ll East Mission Avenue, Spokane, Washington, respectfully requests approval to use, when
available, funds from Schedule 95 "Optional Renewable Power Rate" to promote gtants for
rooftop solar installations, 20 kW or smaller, on corlmercial buildings in Idaho.
Avista Utilities is a proponent of utilizing a variety of energy resources as well as
25 offering energy efficiency measures, to provide safe and reliable service to our customers. One
26 example is Avista's Optional Renewable Power Rate Schedule 95 that allows customers to
27 purchase blocks of renewable power.
As part of this program, the Company would like to expand the awareness of renewable
energy generation options, specifically by funding locally-owned, commercial solar, using funds
from its current Optional Renewable Power Rate - Schedule 95, as explained further below. The
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AVISTA SCI{EDULE 95 FILING PAGE I
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Company's Schedule 95 is known as the Company's Buck-a-Block Program.
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 Governmental Affairs
Avista Corporation
P.O.Box3727
l4l1 E. Mission Avenue, MSC-I3
Spokane, WA 99220-3727
Phone: [phone]
david.meyer@ avi stacorp. com
Linda Gervais
Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
l4l I E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
linda. gervais@avistacorp. com
l5 II. BACKGROUNI)
Beginning in 2002, Avista offered electric customers the opportunity to voluntarily
support the development of renewable energy by participating in the Company's Buck-a-Block
program under Tariff Schedule 95 "Optional Wind Power Rate." Avista Utilities' wind power
option was priced in increments, or "blocks", of $1.00. Each $1.00 block of wind purchased by
customers equaled 55 kilowatt hours (kwh$.
ln 2004, the Company filed revisions to the Buck-a-Block program including a change
from Optional "Wind" Power Rate to Optional "Renewable" Power Rate in Tariff Schedule 95.
These revisions also reflected a lower wholesale cost of wind power to Avista and represented
the cost of renewable energy certificates (RECs) associated with that resource. The RECs were
primarily from wind power generated at the Stateline Wind Energy Center, but could also come
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AVISTA SCHEDULE 95 FILING PAGE 2
I from other "green-e certified" resources.r The revised program continued to include voluntary
2 participation in increments of $1 per block. However, each block was modified to be equal to
3 300 kWh of renewable energy rather than the previous block amount of 55 kWh. This created an
4 opportunity to enhance the Buck-A-Block program.
Today, this voluntary program continues to allow customers the choice to purchase a
6 "block" of renewable power equal to 300 kilowatt hours (kwh) that is produced through regional
7 wind or solar projects for $l per block.
Approximately 3,500 customers purchased nearly 227,000 blocks (68,000 MWh) in
9 2013. All of the costs and benefits of the program stay within the program. The Buck-a-Block
l0 progftrm requires regular program administration, promotion, and communication with
I I customers. The intent of the progam is to continually match funds collected with the annual
12 program costs while balancing the need to collect enough funding to meet potential growth and
13 potentially higher priced RECs. However, due to the availability of low-cost RECs in recent
14 years and a plateau in subscription levels, it has resulted in surplus revenues that exceed the costs
15 by approximately $200,000. This has prompted the Company to explore additional ways to
16 promote and acquire additional renewable energy for the program.
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18 III. PROPOSED COMMUNITY SOLAR PROGRAM
19 Similar to Pacific Power's Blue Sky Program,2 the Company proposes to use, when
20 available, any available funds from Schedule 95 to promote grants for rooftop solar installations,
21 20 kW or smaller, on commercial buildings in the Company's service territory in Idaho and
' The Green-e Renewable Electricity Certification Program is administered by the non-profit Center for Resource
Solutions, based in San Francisco, California.
2 Pacific Power Schedule 70 - Renewable Energy Rider - Optional
AVISTA SCHEDULE 95 FILING PAGE 3
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Washington. Successful grant recipients would agree to allow their installation to be made
available for the education of its building occupants and members of the community on the
merits of solar energy generation and the Buck-a-Block program. Preference for grant recipients
will be given to school districts and buildings where the visibility of the installation will have the
greatest impact for both educational purposes as well as solar energy generation. Geographic
distribution throughout the Company's seryice territory will also be considered as part of the
evaluation.
IV. BUDGET/COSTS
As of June 30, 2014, the Buck-A-Block program (Idaho and Washington combined) had
approximately $200,000 in available funds.3 It is estimated that this would fund the installation
of 6-8 small projects (5 kW or less) or 2 larger projects (20 kW or less).
The potential number of projects that could be funded is based on estimates obtained
through Company research and from discussions with solar installation companies. Table No. I
shows estimated equipment costs, and Table No. 2 shows the estimated system costs. Costs may
vary in the future based on market conditions, the size of the installation, md where the
equipment is manufactured.
Table No. L - Estimated Equipment Costs
Equipment Washington
State
Out of
State
SolarPanels (1kW)$3,000 s1,000
lnverter $1,000 $1,000
Instal lation (rac king/wiri ng)$1,500 $1,500
Total per kW installed s5,500 $3,500
3 Projects will only be funded with surplus funds when available.
AVISTA SCI{EDULE 95 FILTNG PAGE 4
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Table No.2 - Estimated System Costs
System Size Washinglon State
Eouioment
Out of State
Eouipment
5kw $27,000 s17,500
t0 kw s55,000 $35,000
20 kw $110,000 $70,000
After the application and screening process, grant recipients would be awarded partial or
full funding that could fund the cost of a rooftop solar installation, not to exceed $70,000 per site,
on their premises. Costs and risks associated with a site feasibility or assessment study, labor
and contracting costs related to the installation, ffid ongoing maintenance will be the
responsibility of the grant recipient.
V. BENEFITS
12 Grant recipients will benefit as they would be receiving partial to full funding for a solar
13 system to be installed on their premises. Grant recipients will experience reduced electricity bills
14 as compared to what their bills would be without net metered generation.
15 Customers that participate in the Buck-A-Block program will have their surplus funding
16 being spent on additional Renewable Energy Projects in their communities. They will also have
17 the opportunity to view the solar installation and operation as the projects must be made
18 available for educational purposes. Other customers, and the community in general, will have
19 access to view and learn about solar installation and operation as the projects must be made
20 available for educational purposes.
2l The Company will benefit from the experience of working with solar development
22 vendors and projects and also be able to monitor systems to better leam and understand how they
23 interact with the utility's electrical system.
AVISTA SCTM,DULE 95 FILING PAGE 5
I Additional program benefits may include the increased availability and potential reduced
2 cost of solar equipment, as well as providing a utility experience with the installation of small
3 scale distributed generation on a potentially diverse group of buildings and geogaphic locations
4 in Idaho and Washington.
56 VI. CUSTOMER NOTIFICATION
7 Notice to the public of the proposed changes, pursuant to IDAPA 31.21.02.102, will be
8 posted to the Company's website coincident with this filing. The proposed effective date is
9 November 1,2014.
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VII. CONCLUSION
WHEREFORE, Applicant respectfully requests the Commission issue its Order
approving the revisions to Schedule 95 to include the use, when available, of any surplus funds
from Schedule 95 to promote grants for rooftop solar installations, 20 kW or smaller, on
commercial buildings in Idaho, with an effective date of November 14, 2014, with this
Application being processed under Modified Procedure.
DATED at Spokane, Washington, this l7h day of September,2014.
AVISTA CORPORATION
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
By
AVISTA SCHEDULE 95 FILTNG PAGE 6
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VERIFICATION
STATE OF WASHINGTON )
)
County ofSpokane )
Linda Gervais, being first duly sworn, on oath deposes and says: that she is the
Manager of Regulatory Policy for Avista Utilities; that he has read the above and foregoing
Application, knows the contents thereof, and believes the $Nne to be true.
SIGNED AND SWORN to before me this 17rt day of September, by Linda Gervais.
Commission Expires: I O . O1 .)O l*
i$*7=?,', PUBL;;' j s
'4?p
AVISTA SCFMDULE 95 FTLING
AVISTA TARIFF SCHEDULE 95
REDLINE AND STRIKETHROIJGH
l.P.U.C. No.28
F+Fsrseco n d *"r'r'"
t?l?i,|, 33
O+iginal First Sheet 95
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 95
OPTIONAL RENEWABLE POWER RATE - IDAHO
AVAILABLE
To Customers in the State of ldaho where the Company has electric service.
APPLICABLE
To all customers receiving electric service who agree to purchase blocks of
renewable power under this schedule.
BLOCK
One (1) block equals 300 kwh of renewable power.
CHARGE PER BLOCK
$1.00 per month. This charge shall be in addition to all other charges contained in
the customer's applicable tariff schedule.
MONTHLY B!LLING
The monthly billing shall be the number of Blocks the customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Billing is in addition to all other
charges contained in customer's applicable tariff schedule. This schedule's Monthly Billing
shall be applied to the customer's billing regardless of actual energy consumption.
RENEWABLE POWER
For the purpose of this schedule, the renewable power sourced throuoh renewable
enerqv certificates (RECs) shall be primarily from Green-e certified wind power but mav also
come from other renewable sources.the renewable energy
PROGRAM ADMINISTMTION:
To ensure that all costs and benefits of this proqram are onlv applied to proqram
participants. all funds collected and spent under this Schedule will be separatelv identified
and tracked. Funds received from Customers under this Schedule will be used to cover
proqram costs (e.q.: proqram manaqement, accountinq, communications, etc.) as well as to
match block subscriptions to REC purchases.
RENEWABLE EN ERGY PROJECTS/GRANTS:
ln an effort to oromote and build awareness of renewable enerov oeneration options. if
available. funds collected, but not otherwise required to meet proqram obliqations mav be
distributed for one or more of the followino renewable proiects:
1. Fundino for locallv-owned. non-residential solar proiects. Applicable customers.
with a preference for communitv-based proiects that provide for educational and
lssued JunelS, September 17,2014 Effective Jufy-€4004 November 14 ,,-014
lssued by Avista Corporation
By Kelly Norwood, Vice President State and Federal Regulation
l.P.U.C. No .28 Oriqinal Sheet 95A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 95 - Continued
environmental benefit to local communities. or otherwise receive service under
this Schedule, mav applv for a qrant to cover all or a portion of the cost of
installation.2. Fundino for research and development proiects that encouraoe Renewable
Enerov market transformation in order to accelerate marketabilitv of Renewable
Enerqv technoloqies.3. Fundino for above-market costs associated with the new construction of
Renewable Enerov facilities or the purchase bv contract of Renewable Enerqv
that reduces the costs of Renewable Enerov to be competitive with cost-effective
resources.
To the extent an eliqible proiect in Section 1, 2, and 3 above is able to qenerate RECs, the
qrant recipient aqrees that the Companv, on behalf of the Schedule 95 prooram. has the first
riqht to claim a share of the proiect's REC output, The amount of these RECs is expressed
as a percentaqe of output when comparing the Schedule 95 financial contribution to the
overall cost of the proiect. The proportional amount of these RECs will be retired on behalf of
the prooram.
SPECIAL TERMS AND CONDITIONS
1. Service under this schedule is subject to the Rules and Regulations contained in this
tariff.
2. Customers may apply for or terminate from this schedule anytime during the year.
The Company may limit availability of this program subject to available renewable
power at the cost incurred under the terms described above.3. The above Monthly Billing is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued September 17, 2014 Etfective November 14 , 2014
By Kellv Norwood, Vice President State and Federal Reoulation
AVISTA TARIFF SCHEDULE 95
CLEAN
Second Revision Sheet 95
Canceling
First Sheet 95l.P.U.C. No.28
95
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 95
OPTIONAL RENEWABLE POWER RATE - IDAHO
AVAILABLE
To Customers in the State of ldaho where the Company has electric service.
APPLICABLE
To all customers receiving electric service who agree to purchase blocks of
renewable power under this schedule.
BLOCK
One (1) block equals 300 kwh of renewable power.
CHARGE PER BLOCK
$1.00 per month. This charge shall be in addition to all other charges contained in
the customer's applicable tariff schedule.
MONTHLY BILLING
The monthly billing shall be the number of Blocks the customer has agreed to
purchase multiplied by the Charge per Block. The Monthly Billing is in addition to all other
charges contained in customer's applicable tariff schedule. This schedule's Monthly Billing
shall be applied to the customer's billing regardless of actual energy consumption.
RENEWABLE POWER
For the purpose of this schedule, the renewable power sourced through renewable
energy certificates (RECs) shall be primarily from Green-e certified wind power but may also
come from other renewable sources.
PROGRAM ADMI NISTMTION:
To ensure that all costs and benefits of this program are only applied to program
participants, all funds collected and spent under this Schedule will be separately identified
and tracked. Funds received from Customers under this Schedule will be used to cover
program costs (e.9.: program management, accounting, communications, etc.) as well as to
match block subscriptions to REC purchases.
RENEWABLE ENERGY PROJECTS/GRANTS:
ln an effort to promote and build awareness of renewable energy generation options, if
available, funds collected, but not otherwise required to meet program obligations may be
distributed for one or more of the following renewable projects:
1. Funding for locally-owned, non-residential solar projects. Applicable customers,
with a preference for community-based prqects that provide for educational and
lssued September 17 ,2014 Effective November14,2014
by Avista Corooral
By Kelly Norwood, Vice Pfesident State and Federal Regulation
ru,J^,^*,J
Sheet 95A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 95 - Continued
environmental benefit to local communities, or otherwise receive service under
this Schedule, may apply for a grant to cover all or a portion of the cost of
installation.2. Funding for research and development projects that encourage Renewable
Energy market transformation in order to accelerate marketability of Renewable
Energy technologies.3. Funding for above-market costs associated with the new construction of
Renewable Energy facilities or the purchase by contract of Renewable Energy
that reduces the costs of Renewable Energy to be competitive with cost-effective
resources.
Eligible renewable energy projects would not be considered for purposes of any Renewable
Portfolio Standard requirements. Renewable energy that is generated in response to any
federal or state statutory requirement to construct or contact for the renewable energy is not
eligible for the funding under this Schedule.
To the extent an eligible project in Section 1,2, and 3 above is able to generate RECs, the
grant recipient agrees that the Company, on behalf of the Schedule 95 program, has the first
right to claim a share of the project's REC output. The amount of these RECs is expressed
as a percentage of output when comparing the Schedule 95 financial contribution to the
overall cost of the project. The proportional amount of these RECs will be retired on behalf of
the program.
SPECIAL TERMS AND CONDITIONS
1. Service under this schedule is subject to the Rules and Regulations contained in this
tariff.2. Customers may apply for or terminate from this schedule anytime during the year.
The Company may limit availability of this program subject to available renewable
power at the cost incurred under the terms described above.3. The above Monthly Billing is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued by Avista Corporation
By Kelly Norwood, Vice President State and Federal RegulationryAw*