20160916Supplemental Application.pdf

Avista Corp.
1411 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
September 15, 2016
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83 720-007 4
Dear Ms. Jewell:
Re: Case No. AVU-E-16-06-Avista Supplemental Application
Dear Ms. Jewell:
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Enclosed for filing with the Commission is an original and seven (7) copies of A vista
Corporation's, doing business as Avista Utilities, Supplemental Application for Case No. AVU­
E-16-06, which accompanies the supporting testimony and exhibits requesting that the
Commission find that the Company's electric energy efficiency expenditures from January 1, 2014
through December 31, 2015 were prudently incurred.
Please direct any questions on this matter to Dan Johnson, Director, Energy Efficiency at (509)
495-2807 or myself at [phone].
Sincerely,
Linda Gervais
Senior Manager, Regulatory Policy
A vista Utilities
linda. [e-mail]
509-495-4975
Enclosures
RECEIVE D
1 DAVID J. MEYER
2 VICE PRESIDENT AND CHIEF COUNSEL FOR 7016 SEP 16 fir-1 9: 13
3 REGULATORY AND GOVERNMENTAL AFFAIRS
4 AVISTACORPORATION
5 P.O. BOX 3727
6 1411 EAST MISSION AVENUE
7 SPOKANE, WASHINGTON 99220-3727
8 TELEPHONE: [phone]
9 [e-mail]
10
11 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
12 IN THE MATTER OF THE APPLICATION
13 OF AVISTA CORPORATION FOR A
14 FINDING OF PRUDENCE FOR 2014-2015
15 EXPENDITURES AS SOCIA TED WITH
16 PROVIDING ELECTRIC
17 ENERGY EFFICIENCY SERVICE IN THE
18 STATE OF IDAHO
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CASE NO. AVU-E-16-06
20 I. INTRODUCTION
21 Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company), at
22 1411 East Mission A venue, Spokane, Washington, respectfully requests that the Commission issue
23 a finding that Avista's electric energy efficiency expenditures from January 1, 2014 through
24 December 31, 2015 were prudently incurred.
25 Beginning in 1995, A vista has requested a finding of prudence for prior period cost
26 recovery of energy efficiency expenditures at the time of general rate case filings. This process
27 occurred as an outcome of how A vista's Demand Side Management (DSM) Tariff Rider was
28 established. As the country's first system benefit charge for conservation, several "legacy"
29 protocols were adopted, including the scope and timing of cost-recovery. However, over time,
30 reviewing energy efficiency issues in general rate cases did not provide the level of focus desired
AVISTA APPLICATION PAGE 1
1 by parties to these proceedings. Discussions with Commission Staff and A vista's Energy
2 Efficiency Advisory Group have led to requesting a finding of prudence, and examination of
3 associated issues, in a stand-alone case as presented herein.
4 The Company requests that this filing be processed under the Commission's Modified •
5 Procedure rules.
6 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
A vista Corporation
P.O. Box 3727
1411 E. Mission A venue, MSC-13
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
Linda Gervais
Senior Manager, Regulatory Policy
A vista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
17 II. BACKGROUND
18 The Company's programs are based on providing a financial incentive, or "rebate," for
19 cost-effective efficiency measures A vista provides opportunities for customers to learn about
20 rebates we offer as well as tips on how to better manage their home and business energy usage.
21 We utilize broadcast media with our "Efficiency Matters" campaign to help increase awareness
22 about energy efficiency. We also use online, radio, and print advertising-as well as our website,
23 avistautilities.com -to help educate customers on rebates and energy savings tips. Our "Energy
24 Use Guide" contains information that can be utilized throughout the year to help encourage
25 efficient use of space heating and cooling, appliances, electronics, and more. Online tools on our
26 website can perform a free energy analysis to help customers have a better understanding of how
27 energy is being used in their home, and outline the top ways they can save energy. Home Energy
AVISTA APPLICATION PAGE2
1 Reports are also delivered to a randomly selected group of approximately 25,200 Idaho customers
2 annually. The reports are designed to help customers better assess their energy consumption and
3 explore ways to reduce their energy use.
4 In addition, both residential and nonresidential customers have access to direct outreach
5 activities. A vista offers energy fairs and workshops for residential customers, with emphasis given
6 to low-income customers. Direct outreach for nonresidential customers is delivered through
7 account executives and efficiency engineers who provide on-site information regarding energy
8 savings opportunities and available program information.
9 For non-residential customers, in addition to prescriptive (or "standard offer") programs,
10 A vista offers site-specific ( or customized) services. The site-specific program provides incentives
11 on any cost-effective commercial and industrial energy efficiency measure with a simple financial
12 payback exceeding one year, up to thirteen years. This is implemented through site analyses,
13 customized diagnoses, and incentives determined for savings generated specific to customers'
14 premises.
15 In addition to Avista's prescriptive and site-specific programs, the Company helps fund the
16 activities of the Northwest Energy Efficiency Alliance (NEEA). NEEA focuses on using a
17 regional approach to obtain electric efficiency through the transformation of markets for efficiency
18 measures and services. These programs bring resource acquisition opportunities to Avista that
19 would otherwise be either unachievable or more costly in the absence of regional cooperation.
20 The Company provides approximately $700,000 for low-income weatherization annually
21 and an additional $50,000 annually for conservation education in Idaho. This program 1s
22 administered by the local community action agencies in our Idaho service territory.
23 The Company has regularly convened stakeholder meetings to gain input from customer
A VISTA APPLICATION PAGE3
1 representatives, Commission staff members, and individuals from the environmental communities.
2 In these stakeholder meetings the Company's program offerings are reviewed as well as the
3 underlying cost-effectiveness tests and results. The Company continues to appreciate the time and
4 input provided by Avista's stakeholders.
5 III. TAR GETS AND RESULTS
6 The Idaho electric programs have been cost-effective from both a Total Resource Cost
7 (TRC) test and Program Administrator Cost (PAC) test perspective. The 2014 TRC benefit-to-
8 cost ratio of 1.76 for the Idaho electric DSM portfolio is cost-effective, with a residual TRC benefit
9 to customers of over $6.0 million as provided in Exhibit No. l, Schedule 1. The 2015 TRC benefit-
10 to-cost ratio of 1.29 for the Idaho electric DSM portfolio is cost-effective, with a residual TRC
11 benefit to customers of over $2.4 million. The PAC, also known as the Utility Cost Test (UCT),
12 benefit-to-cost ratio during 2014 was 3.22, with a residual PAC benefit of nearly $9.1 million. The
13 benefit-to-cost ratio during 2015 was 2.39, with a residual PAC benefit of nearly $6.1 million.
14 The Tariff Rider funded programs have been very successful. Participating customers have
15 benefited through lower bills. Non-participating customers have benefited from the Company
16 having acquired lower cost resources as well as maintaining the energy efficiency message and
1 7 infrastructure for the benefit of our service territory.
18 IV. COMP ANY WITNESS INTRODUCTION
19 Company witness Mr. Dan Johnson provides an overview of the Company's recent Idaho
20 DSM portfolio results and expenditures for electric efficiency programs. He also provides
21 documentation demonstrating that Avista's expenditures for electric efficiency programs have
22 been prudently incurred. More specifically, he addresses A vista's involvement with the Northwest
AVISTA APPLICATION PAGE4
1 Energy Efficiency Alliance (NEEA), the Company's Research and Development1 for university
2 research and development, overall evaluation by Avista's third-party contractor ("Nexant"), and
3 opportunities presented for stakeholder involvement.
4 Ms. Lynn Roy with Nexant will describe the methodology and conclusions of her
5 company's independent impact evaluations and process evaluations that are a central component
6 of A vista's Evaluation, Measurement, and Verification (EM& V) Framework and EM& V Plan.
7 Her testimony concludes that Avista's Idaho electric DSM programs achieved 31,081
8 MWh in 2014-15 cost-effectively and that Avista's 2014-2015 energy efficiency programs
9 addressed all impact and process evaluation needs in accordance with industry and regulatory
10 standards.
11 V. CONCLUSION
12 WHEREFORE, Applicant respectfully requests the Commission issue its Order
13 finding that the Company's electric energy efficiency expenditures from January 1, 2014 through
14 December 31, 2015 were prudently incurred, with this application being processed under Modified
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Procedure.
DATED at Spokane, Washington, this 15st day of September, 2016.
1 Case No. A VU-E-13-08
A VISTA APPLICATION
AVISTA CORPORATION
David J. Meyer,
Vice President and Chief Counsel of
Regulatory & Governmental Affairs
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STATE OF WASHINGTON)
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County of Spokane )
VERIFICATION
David J. Meyer, being first duly sworn, on oath deposes and says: that he is the Vice
President and Chief Counsel of Regulatory & Governmental Affairs for A vista Utilities; that he
has read the above and foregoing Application, knows the contents thereof, and believes the same
to be true.
SIGNED AND SWORN to before me this 1551 day of September 2016, by David Meyer.
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A VISTA APPLICATION PAGE6