20150130final_order_no_33218.pdf

Office of the Secretary
Service Date
January 30.2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE )CASE NO.AVU-E-14-1O
REQUEST TO USE AVAILABLE FUNDS )
FROM SCHEDULE 95 TO PROMOTE )
ROOFTOP SOLAR INSTALLATIONS ON )ORDER NO.33218
COMMERCIAL BUILDINGS.)
On September 18,2014,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 requested that the revisions become
effective November 14,2014.
On October 14,2014,the Commission issued a Notice of Application and Notice of
Modified Procedure setting a comment deadline of November 21,2014,and a reply deadline of
December 3,2014.Order No.33151.Pursuant to Idaho Code §61-622,the Commission
suspended Avista’s proposed effective date in order to allow adequate time to review the
Application.
By this Order,we approve Avista’s proposed revisions to its Schedule 95.
THE APPLICATION
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.
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).
ORDER NO.33218 1
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)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.
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.
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.
ORDERNO.33218 2
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 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.
COMMENTS
Five public comments were received in support of Avista’s proposal.Snake River
Alliance also filed comments applauding the Company for developing “such an innovative
program that will help advance the 2012 Idaho Energy Plan’s stated goals of promoting
renewable energy in its diverse forms.”SRA Comments at 2.
Commission Staff reviewed Avista’s proposal to determine the impact that the
changes would have to Buck-a-Block program participants and to ratepayers.Staff expressed
concern about the shift in fixed costs from net-metered customers2 to the rest of the customer
base.Staff determined that the level of uncollected fixed costs associated with this proposal
would have little to no impact on customers’rates.However,based on the potential to shift
fixed cost recovery to other customers,Staff recommended that the Commission monitor the
growth of the program.Staff further recommended that Avista disburse grant money in
proportion to the amount of Schedule 95 money collected from each jurisdiction (Washington
and Idaho).Staff recommended that the Company include updates to its annual Schedule 95
report beginning in 2015 in order to allow the Commission to monitor the modified program’s
impact.
FINDINGS AND CONCLUSIONS
Avista is an electric corporation and public utility pursuant to Idaho Code §61-119
and 6 1-129.This Commission has jurisdiction and authority over Avista and the issues in this
case under Title 61 of the Idaho Code and the Commission’s Rules of Procedure,IDAPA
31,01.01.000,ci seq.
Future costs may vary based on market conditions,the size of the installation and where the equipment is
manufactured.
2 Eighty-three percent of the energy obtained from net-metered customers is derived from solar energy.
ORDERNO.33218 3
Based on our review of the Company’s Application,the public comments and
comments of Commission Staff,we find that it is just and reasonable to approve Avista’s
proposal to modify and update its tariff.Schedule 95 is funded by the voluntary contributions of
customers who support renewable energy.We find that the Company’s proposal to promote and
build awareness of rooftop solar is consistent with the intent of the tariff.
We commend Avista for being pro-active in proposing a creative use for excess
funds that increases overall awareness of solar energy resources and also provides an educational
opportunity to the community.In order to ensure that grant monies are allocated fairly,we direct
Avista to manage and disburse the funds in proportion to collections from each jurisdiction.We
further direct the Company to include in its annual Schedule 95 report the expenses and benefits
for each rooftop installation,including a description of the educational and research benefits
actually observed,in order to allow the Commission to monitor the impact of these approved
Schedule 95 changes.
ORDER
IT IS HEREBY ORDERED that Avista’s proposed revisions to its Schedule 95 are
approved.Avista is directed to update its annual report of Schedule 95 as more fully described
herein.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
ORDER NO.33218 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3O
day of January 2015.
PAUL KJELLANDE ,P DENT
t ..I
,
MACK A.REDFORD,CO IS3ONER
/
MARSHA H.SMITH,COMMISSIONER
ATTEST:
JJ&l
mmission Secretary
O:AVU-E-14-1 Oks2
ORDER NO.33218 5