20141014notice_of_application_order_no_33151.pdf

Office of the Secretary
Service Date
October 14.2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.AVU-E-14-lO
OF AVISTA CORPORATION FOR THE )
REQUEST TO USE AVAILABLE FUNDS )NOTICE OF APPLICATION
FROM SCHEDULE 95 TO PROMOTE )
ROOFTOP SOLAR INSTALLATIONS ON )NOTICE OF
COMMERCIAL BUILDINGS.)MODIFIED PROCEDURE
)
_________________________
)ORDER NO.33151
On September 18,2014,Avista Corporation dba Avista Utilities filed an Application
with the Commission requesting revisions to its Schedule 95 —Optional Renewable Power Rate.
The Company seeks to use available/surplus funds from Schedule 95 to promote grants for
rooftop solar installations,20 kW or smaller,on commercial buildings in Idaho.Avista requests
that the revisions become effective November 14,2014.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista states that it is a proponent of utilizing a
variety of energy resources as well as offering energy efficiency measures,to provide safe and
reliable service to its customers.The Company’s Schedule 95 —Optional Renewable Power
Rate —allows customers to purchase blocks of renewable power.In furtherance of this objective,
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 Schedule
95.
YOU ARE FURTHER NOTIFIED that,since 2002,Avista has offered electric
customers the opportunity to voluntarily support the development of renewable energy by
participating in the Company’s Buck-a-Block program under its Schedule 95.Avista’s 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).
YOU ARE FURTHER NOTIFIED that,in 2004,the Company filed revisions to its
program.Avista modified the program from an optional wind power rate to an optional
renewable power rate.Avista states that these revisions also reflected a lower wholesale cost of
wind power to Avista and represented the cost of renewable energy certificates (RECs)
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33151 1
associated with the renewable resource.The RECs were primarily from wind power generated at
the Stateline Wind Energy Center,but could also come from other “Green-e certified”resources.
The revised program continued to include voluntary participation in increments of $1.00 per
block.However,blocks were modified to represent 300 kWh of renewable energy as opposed to
the previous 55 kWh.Avista explains that this created an opportunity to enhance the Buck-a-
Block program.Presently,this voluntary program continues to allow customers the choice to
purchase a “block”of renewable power equal to 300 kWh that is produced through regional wind
or solar projects for $1.00 a block.
YOU ARE FURTHER NOTIFIED that,according to Avista,approximately 3,500
customers purchased nearly 227,000 blocks (68,000 MWh)in 2013.All of the costs and benefits
stay within the program.The Buck-a-Block program requires regular program administration,
promotion,and communication with customers.The intent of the program is to continually
match funds collected with the annual program costs while balancing the need to collect enough
funding to meet potential growth and potentially higher priced RECs.However,due to the
availability of low-cost RECs in recent years and a plateau in subscription levels,it has resulted
in surplus revenues that exceed the costs by approximately $200,000.This has prompted the
Company to explore additional ways to promote and acquire additional renewable energy for the
program.
YOU ARE FURTHER NOTIFIED that the Company proposes to use,when
available,any available funds from Schedule 95 to promote grants for rooftop solar installations,
20 kW or smaller,on commercial buildings in the Company’s service territory in Idaho and
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
would 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 service territory will also be considered as part of the
evaluation.
YOU ARE FURTHER NOTIFIED that Avista estimates that the existing $200,000
surplus would fund the installation of 6-8 small projects (5 kW or less)or 2 larger projects (20
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NOTICE OF MODIFIED PROCEDURE
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kW or less).’After application and screening,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.
Costs and risks associated with a site feasibility or assessment study,labor and contracting costs
related to the installation,and ongoing maintenance will be the responsibility of the grant
recipient.
YOU ARE FURTHER NOTIFIED that Avista requests that its Application be
processed by Modified Procedure.
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 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 3 1.01.01.201-204.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 in opposition with the Commission no
later than Friday,November 21,2014.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 may be mailed to the
Commission and Avista at the addresses reflected below:
Future costs may vary based on market conditions,the size of the installation and where the equipment is
manufactured.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33151 3
Commission Secretary David J.Meyer,Esq.
Idaho Public Utilities Commission Vice President and Chief Counsel for
P0 Box 83720 Regulatory and Governmental Affairs
Boise,ID 83720-0074 Avista Corporation
1411 E.Mission Avenue,MSC-13
Street Address for Express Mail:Spokane,WA 99220-3727
E-mail:david .meyer(avistacorp.com
472 W.Washington Street
Boise,ID 83702-5918 Linda Gervais
Manager,Regulatory Policy
Avista Corporation
1411 E.Mission Avenue,MSC-27
Spokane,WA 99220-3 727
E-mail:linda.gervais(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 “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 Avista at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that reply comments may be filed no later than
Wednesday,December 3,2014.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline,the Commission may consider the matter on its merits and may
enter its Order without a formal hearing.If comments or protests are filed within the deadline,
the Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it.IDAPA
3 1.01.01.204.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application is 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33151 4
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 that 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 3 1.01.01.000,etseq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
The Commission finds that the Company’s proposed effective date of November 14,
2014,would not allow adequate time for interested parties and this Commission to review and
consider Avista’s Application.Pursuant to Idaho Code §61-622,the Commission hereby
suspends the proposed changes for a period of 30 days or until such time as the Commission
enters an Order accepting,rejecting or modifying the request in this matter.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments no later than November 21,2014.
IT IS FURTHER ORDERED that reply comments be filed no later than December 3,
2014.
IT IS FURTHER ORDERED that the proposed effective date is suspended for a
period of 30 days from November 14,2014,or until such time as the Commission enters an
Order accepting,rejecting,or modifying the request in this matter.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33151 5
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /1rd
day of October 2014.
PAUL KJELLAIE,PRESIDENT
MACK A.REDFORD,IS STONER
..i
.
MARSHA H.SMITH,COMMISSIONER
ATTEST:
71 ./1 1
Jean D Jewell
Commission Secretary
O:AVU-E-14-lOks
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