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HomeMy WebLinkAbout20160914Johnson Direct.pdfDAVID J. MEYER VICE PRESIDENT AND CHIEF COUNSEL OF REGULATORY & GOVERNMENTAL AFFAIRS AVISTA CORPORATION P.O. BOX 3727 1411 EAST MISSION AVENUE, MSC 27 SPOKANE, WASHINGTON 99220-3727 TELEPHONE: (509) 495-4316 EMAIL: david .meyer@avistacorp .com : .• --:, U>O 0 0? 0 z :.:0 rn n rn < rn 0 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION FOR A FINDING OF PRUDENCE FOR 2014-2015 EXPENDITURES ASSOCIATED WITH PROVIDING ELECTRIC AND NATURAL GAS ENERGY EFFICIENCY SERVICE IN THE STATE OF IDAHO CASE NO. AVU-E-16-0~ FOR AVISTA CORPORATION DIRECT TESTIMONY OF DAN JOHNSON (ELECTRIC AND NATURAL GAS) 1 I. INTRODUCTION 2 Q. Please state your name, employer and business 3 address . 4 A. My name is Dan Johnson . I am employed by Avista 5 as Director, Energy Efficiency . My business address is East 6 1411 Mission Avenue , Spokane, Washington. 7 Q. Would you please describe your education and 8 business experience? 9 A. I graduated from the University of Washington with 10 Bachelor of Science degree in Civil Engineering . I received 11 a .:1a :.;ters i n Eng i ne ering Ean a g e men t degre e fr om Port l and 12 St c1 t e Un iver s ity. 13 I joined the Company in 2010 as the Project Manager for 14 the Smartgrid Demonstration Project . I began my current 15 duties as the Director of Energy Efficiency in June of 2014. 16 Prior to joining Avista, I was employed by the Spokane 17 International Airport where I was the Director of 18 Engineering and Planning and prior to that I was with Pacific 19 Gas Transmission Co , a high pressure gas transmission 20 company. 21 Q. What is the scope of your testimony in this 22 proceeding? Johnson , Di 1 Avista Corporation 1 A. I will provide an overview of the Company 's 2014 - 2 2015 Idaho DSM portfolio results and expenditures for 3 electric and natural gas efficiency programs . I address 4 Avista ' s involvement with the Northwest Energy Efficiency 5 Alliance (NEEA) , the status of the Company's recent re- 6 instated natural gas DSM programs, and the evaluation by 7 Avista's third-party contractor "Nexant" I will also provide 8 9 10 11 an update on the Company 's university development activities. Q. Do you sponsor exhibits? A. Ye s, I p r e s ent chree e xhi oi t s . research and Exh i bit Nu . 1, 12 Sche dule 1 is Av ista' s 2014 Annu 2,l Demar.ct-Si d e Mar.ag 2me nt 13 Report , and Schedule 2 is Avista 's 2 015 Annual Demand -Side 14 Management Report. These reports include the summary of DSM 15 energy savings and a summary of electric DSM cost - 16 effectiveness . Exhibit No . 1 , Schedule 3 is a summary of 17 2015 research and development projects, funded by the DSM 18 tariff rider . 19 Johnson, Di 2 Avista Corporation 1 2 3 II. OVERVIEW OF DSM PROGRAMS AND CURRENT ISSUES Q. Would you please provide a brief overview of 4 Avista's DSM programs? 5 A. Yes . Avista has continuously offered energy 6 efficiency services since 1978. This is the twenty-second 7 year of the DSM tariff rider , a distribution charge to fund 8 DSM that is now replicated in many other states. Schedule 9 91 currently has a rate equal to 2 .7 % of reta il revenue for 10 electric service, and the Schedule 191 rate is 2 .2 % of retail 11 revenue for natural gas. 12 13 As d e sc r ibe d, t he Compan y 's p ro gr a ms are d e live r e d across a full customer spectrum. Virtually all customers 14 have had the opportunity to participate and many have 15 directly benefited from the program offerings. All customers 16 hav e b e nefited t hr ough enhanced resou r ce cost -ef fic ien cies 17 as a result of this portfolio app r oach . 18 Q. What were t he Company's energy efficiency targets 19 and results for 2014-15? 20 A. The Company 's energy efficiency targets are 21 established in the process of developing the Electric and 22 Natural Gas Integrated Resource Plans (IRPs). The targets 23 derived through the resource planning efforts provide a Johnson , Di 3 Avista Corporation 1 starting point for program planning which is accomplished 2 through the annual business planning process where program 3 offerings are optimized for the Company 's service territory 4 based on current economic and market conditions . 5 The results of Avista 's energy efficiency programs 6 exceeded the 2014 IRP target but fell short in 2015 of the 7 targets established as part of this IRP process , as shown in 8 Table No. 1 below. Idaho energy efficiency savings for 2014 9 were 16,292 MWh and savings for 2015 were 14,789 MWh . This 10 represents 100 % of the Company 's two-year IRP target of 11 30,99 6 MWh f o r th i s pe r i od, n ot inc ludi ng 4 ,0 30 firs t -yea _c 12 ~Wh a c qu ired th r o ugh NEEA. 13 Table No. 1 Time Period of Local Evaluated IRP Target Percent Reported Savings MWh Savings Achieved 2014 16,292 15,3 30 106% 2 015 14,789 15,6 66 94% 2014 -2015 31 ,0 81 30 ,996 100 % 14 15 Avista 's 2014 -15 Annua l Re ports provided i n Exhibit No. 16 1, Schedu l es 1 and 2 support these figures . 17 Over 197 aMW of cumulative savings have been achieved 18 through Avista 's energy efficiency efforts in the past 19 thirty-eight years, of which 127 aMW of DSM i s currently in 20 place on the Company's system, and approximately 37 aMW in Johnson, Di 4 Avista Corporation 1 our Idaho service territory. Current Company-sponsored 2 conservation reduces retail loads by 11.0 percent. 3 In January 2016 Avista re-instated its Idaho natural 4 gas programs after working with the Commission Staff to 5 evaluate new cost effective data and analysis. Avista is 6 now providing natural gas incentive programs for both 7 residential and commercial customers. We are currently 8 seeing increased awareness with rebates of $579,277 and 9 therm savings of 92,964 from January through July 2016. 10 Q. How does Avista make available its DSM program 11 ofi'erings and e-1.u<..!ate cus comers about enerc;'Y sav ings? 12 A. Av i st a prov i de ,3 opr:-o r cun it i e s f or c us t ome r s t o 13 l e arn about r ebat e s we of f er a s we ll as t i p s on how to better 14 manage their home and business energy usage. We utilize 15 broadcast media with our "Efficiency Matters" campaign to 16 help increase awareness about energy efficiency. We also use 17 online, radio, and print advertising as well as our 18 website, avistautilities.com - t o help educate customers on 19 rebates and energy savings tips. Our "Energy Use Guide" 20 contains information that can be utilized throughout the 21 year to help encourage efficient use of space heating and 22 cooling, appliances, electronics, and more. Online tools on 23 our website can perform a free energy analysis to help Johnson, Di 5 Avista Corporation 1 customers have a bette r understanding of how energy is being 2 used in their home, and outline the top ways they can save 3 energy . Home Energy Reports are also delivered to a randomly 4 selected group of approximately 25 ,200 Idaho customers 5 annually. The reports are designed to help customers better 6 assess their energy consumption and explore ways to reduce 7 their energy use . 8 In addition, both residential and nonresidential 9 customers have access to direct outreach activities . Avista 10 offers energy fairs and workshops for residential customers , i1 wit h emph c.si ::; gi ven t o l ow-i n c om,3 cu s t ome r s. Dire ct 12 o utre a.ch f or nonre s i den t i a l c u s t ome r s is d e li v er ed through 13 a ccount executives and ef f iciency enginee rs who provide on - 14 site information regarding energy savings opportunities and 15 avai lable program information. 16 Q. Please describe the residential DSM program and 17 offerings provided in 2014-2015. 18 A . The Company 's residential portfolio provides a 19 variety of measures, through different delivery channels, 20 offeri ng energy efficiency improvement opportunities to 21 Avista customers. The majority of the residential portfolio 22 is implemented through prescriptive rebates, processed in- 23 house by Avista . New construction and exist i ng residential Johnson, Di 6 Avista Corporation 1 homes (up to four-plex) that heat with Avista electric or 2 natural gas, can select from a list of energy efficiency 3 measures available for installation in their homes. 4 Customers must purchase and install the equipment or 5 qualifying energy efficiency measure and submit a rebate 6 application with the appropriate documentation within 90 7 days of installation in order to receive an incentive. 8 In the 2014 and 2015 program years, Avista offered the 9 following residential programs to Idaho electric customers 10 noted in Illustration No. 1: 11 I llust ration ~o. 1: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 --------------------------- RESIDENTIAL High Efficiency Variable Speed Motor High Effic i ency Tanked Water He ater Space Heat Conversion (Direct Use of Natural Gas) Water Heat Conversion (Direct Use of Natural Gas) Multifamily Natural Gas Market Transformation (Direct Use of Natural Gas) Ceiling , Attic, Floor, Wall Insulation Energy Efficient Windows ENERGY STAR® Homes ENERGY STAR® Appliances CFL (and CFL Recyc l ing) Promotions "Second" Refrigerator/Freezer Recycling Program - (Discontinued mid-2015) Community Events and Workshops Low-cost/no-cost information On-line Home Energy Audits and Analysis Simple Steps Smart Savings (CFLs, LEDs and Showerheads) Johnson, Di 7 Avista Corporation 1 The residential programs shown above a r e primarily 2 s tandard offerings, otherwise known as prescriptive 3 programs . 4 Idaho residential customers also received Avista- 5 sponsored programs in the form of manufacturer buy -downs for 6 compact fluorescent lighting (CFL), light-emitting diodes 7 (LED 's) and l ow-flow showerhead measures (Simple St eps Smart 8 Savings). These products have a lower retail price point at 9 the time of purchase and are usually part of a regional , 10 multi-state program offering . 11 Q. Pleas e da s c ribe t h e nonresiden ·t:ial 0 SM o £f e ring s 12 p rovided du ring thi s time . 13 A. Within the nonresidential segment , programs ar e 14 offered to retail electric and natural gas customers through 15 a combination of prescriptive rebates and site specific 16 17 assessments . relatively Prescriptive rebates are gea re d toward uni form measures , app l ications and energy 18 savings . This delivery method reduces implementation expense 19 while simplifying participation for both customers and trade 20 allies . 21 The site spec i fic offerings are available fo r a l l other 22 efficiency mea sur es and applicat ions that are unique to a 23 customer 's bus i ness. In these situations , each energy John son , Di 8 Avista Corporation 1 efficiency project is individually analyzed based on the 2 measure being installed and considers other variab les that 3 may be present in the building or in the process operation. 4 Illustration No. 2 below includes a list of 5 nonresidential rebates available for e l ectric customers in 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 the 2014 and 2015 program years: Illustration No. 2: NONRESIDENTIAL (COMMERCIAL & INDUSTRIAL) EnergySmart Grocer Power Management for PC Networks *Premium Efficiency Motors Fo od Service Equipment Commercial HVAC Variable Frequency Drives Re Lro-C ommis 0 i oning Conmerc i a l Cl othes Wa s hers Li ghting a nd Cont r ols Green Motors Rewind Program *Commercial Window s and Insulat ion *Commercial Water Heater Program *Standby Generator Block Heater Site Specific Offerings in Various End Uses *Discontinued in 2015, moved to site-specific program Avista offers site-specific incentives for commercial 24 and indu s t r ial customers for custom projec ts. The s i t e - 25 specific program provides incentives on cost -effect ive 26 commercial and industrial energy efficiency measures that 27 meet required simple payback and measure life requirements. 28 This is implemented through on-site audits and analyses, 29 customized project evaluation, and dual fuel incentive Johnson, Di 9 Avista Corporation 1 calculators for energy savings generated specific to the 2 customer's premise or process ("project u ). Incentives were 3 offered for any measure that had greater than a one-year and 4 less than an eight-year simple payback for lighting measures 5 or less than a thirteen-year simple payback for non-lighting 6 measures . 7 Q. How does Avista address energy efficiency programs 8 for low-income customers? 9 A. The residential low-income program is comprised 10 primarily of site-specific offerings delivered by local 11 Cornmuni l y Ac t ion h.ge a c i es (CAAs) t o o e nefit income - 12 qua lifi ed, r es i dent i al c us t omers . Avi s ta cont ract s wi t h 13 agenc ies to utilize existing infrastruct ure c urrentl y in 14 place as a result of delivering the Federal Weatherization 15 Assistance and Low Income Home Energy Assistance Programs 16 (LIHEAP) . The customer intake process includes potential 17 consideration of participation for energy assistance and 18 other income-qualified programs that can also serve as 19 referrals for weatherization services. 20 The program targeted to l ow-inc ome customers is 21 provided by the Community Action Partnership of Lewiston. 22 The agency receives a set amount of funding each year to 23 make energy efficiency improvements to income -qualified Johnson, Di 10 Avista Corporation 1 homes that are heated by Avista electric or natural gas 2 services. These improvements may include upgrades to heating 3 and water heating equipment , ceiling , wal l and floor 4 insulation , replacement of windows, doors , and conversions 5 from electric heating to natural gas heating . 6 Q. What was the cost of Avista's electric efficiency 7 acquisitions? 8 A. During 2014-15 , the Company spent $9 ,999 ,742 on 9 Idaho electric DSM programs, of which 47 % was paid out to 10 customers in direct incentives pursuant to the cost- 11 e f fe cti ve ness t ests sh ,)wn i n Exh i bi t ilo . 1, Sc he dul e s 1 a nd 12 2 . Th i s p e rcentage ctoe s n ot i nc l ude a dd it i ona l b e ne f i t s 13 such as te c hnical ana lyse s provided t o c ustomers by the 14 Compan y 's DSM engineering staff or regional market 15 transformation efforts through NEEA. 16 Q. Do the 2014-15 results reflect Avista's 17 participation in regional energy efficiency efforts? 18 A . No . The numbers reported only include the local 19 acquisition evaluated by the Company 's independent evaluator 20 Nexant, and do not include 4 , 030 MWh of first -year Idaho 21 22 savings acquired through Northwest Energy Effi ciency Alliance's (NEEA) regional efforts . NEEA focuses on using 23 a regional approach to obtain electric efficiency through Johnson , Di 11 Avista Corporation 1 the transformation of markets for efficiency measures and 2 services. Avista has been a member of the NEEA, and actively 3 invo lved in its governance, since the creation of that 4 organization in 1996. As one of fourteen funders, Avista is 5 supportive of the use of a coordinated regi onal market 6 transformation effort to the extent that the effort is a 7 cost-effective enhancement of, or alternative to , local 8 utility efforts at acquiring those resources for our 9 customers. Avista has committed to NEEA's next funding 10 period of 2015 through 2019, opting in for all NEEA 11 in i t i ative s. 12 The leveliz e d c ost of r Esou r c es a cq u i r ed throu gh 13 Av is ta ' s Idaho p a rticipation in NEEA was $28 . 9 per firs t 14 year MWh. This compares with $28.4 per first-year MWh for 15 Avista -funded local cost-effective e nergy efficiency 16 programs in Idaho . During 2014 Avista's Idaho -relat ed NEEA 17 fu ndi n g wa s $603,481, and for 2015 Avista' s Idaho-related 18 NEEA funding was $563 ,571. 19 20 As will be discussed late in my testimony, the Idaho electric programs have been cost -effective, including 21 Avista's participation in NEEA, from both a Total Resource 22 Cost (TRC) test and Program Administrator Cost (PAC) test 23 perspective. Johnson, Di 12 Avista Corporation 1 2 3 4 5 Q. What is the status of the Idaho electric and natural gas tariff rider balances? A. At December 31 , 2 015, the Idaho electric and natural gas tariff rider balances were $431,784 underfunded and $60 ,768 underfunded, respectively (i.e. dollars expended 6 exceeded dollars collected through the Tariff Rider)1 • 7 Q. Please describe the opportunity for external 8 participation in Avista's DSM activities. 9 A . The Company has had continuo us energy efficiency 10 stakeholder involvement sin c e 1992 . The Company's program 11 o f f e r ings, p l a n ning, e '1a l ua t i on f in d i n g s , un d erlyi ng c ost - 12 ef f e cti ve nes s tes t s a n d re s ul t s a r e re v iewe d d ur in g 13 stakeholde r meetings . Currentl y , the Compan y ho l ds in-pe r s o n 14 meetings at least twice per year, ho sts several webinars 15 annually, provides a full analysis of the results of DSM 16 operations on an annual and monthly basis, identifies large 17 pro j e c t s a nd provides a quarterly ne wsletter summarizing 18 recent DSM activities2 • Since January 2016, Avista has held 19 seve r a l me etings with its Advis o r y Group, by way o f 20 conference calls , emails and webinars as well as two in - 1 The tariff rider a dj ustments were approved effect i ve Octob er 1, 2013 for electric and January 1, 2016 for na tural gas . 2 With appropriate precautions for customer confidentiality . Johnson , Di 13 Avista Corporation 1 person meetings. The spring meeting , which was on the heels 2 of the Spring NEEA Energy Exchange Conference in Coeur 3 d 'Alene , ID , was one of the most attended meetings i n sev eral 4 years , with 12 external members in -person and two additional 5 externals calling in . In addition , the Company had numerous 6 phone discussions with the Advisory Group on topics related 7 to DSM activit i es , as well as current and future eva l uations. 8 Avista 's DSM Advisory Group consists of interested 9 regulatory , consumer and energy industry parties3 • 10 Avista appreciates the active engagement of many 11 pa~t ~es , i ncl udi ng the Commis s i on 3t a ff a s p a rt of our Ene r gy 12 Ef f i c iency Ad vi so .c y Group . Addi t ionally, t he Sna ke Riv er 13 Allia n c e , t h e No rt hwest Ene r g y Coalition, Unive r sit y o f 14 I daho I ntegrated Design Lab , and the Northwest Industrial 15 Gas Users have representation on Avista 's Advisory Group . 16 III. PRUDENCE OF INCURRED DSM COSTS 17 Q. Would you please explain the Company's request for 18 a finding of prudence in this case? 3 The Advisory Gr oup i s Avista 's non-b indi ng overs i ght and ad v i sor y group for energy eff ici e ncy . The Advisory group is current l y compos ed of the I PUC Staff , UTC sta f f, OPUC Staff, the Public Counsel Unit of the Washi ngton Of f i ce o f At torney General , Northwest Energy Coalition, SNAP, The Energy Proj ec t , Northwest Energy Effi ciency Alliance , Northwest Power and Conservati on Council , No r thwest Energy Eff i c i ency Council , I daho Conservati on League , Putnam Price and the Opportuni ty Council . Johnson, Di 14 Avista Corporation 1 A. Yes . The Idaho electric programs have been cost- 2 effective from both a Total Resource Cost ( TRC) test and 3 Program Administrator Cost (PAC) test perspective. The 2014 4 TRC benefit-to -cost ratio of 1 .76 for the Idaho electric DSM 5 portfolio is cost-effective, with a residual TRC benefit to 6 customers of over $6 .0 million as provided in Exhibit No.l, 7 Schedule 1. The 2015 TRC benefit-to-cost ratio of 1.29 for 8 the Idaho electric DSM portfolio is cost-effective , with a 9 residual TRC benefit to customers of over $2 .4 million . The 10 PAC, also known as the Utility Cost Test (UCT), benefit-to­ ll c o s t r at i o jur ing 2 01 4 w:i.s 3 .2 2, with a re :..;i dua ::i_ PAC be n efit 12 o f nea rly $ 9 . 1 mill i on . The b e ne fi t -t o-c os t ra t i o d u ring 13 2015 was 2.3 9, with a r esidual PAC bene f it of nearly $6 .1 14 million. These are summarized in Exhibit No . 1, Schedule 2 , 15 starting at page 6. 16 Q. Please summarize the Company's energy efficiency- 17 related savings for this period? 18 A . From January 1, 2014 through December 31, 2015, 19 the Company achieved 35,111 MWh of savings, including NEEA , 20 on a gross basis. Pages 6 through 11 of Exhibit No. 1, 21 Schedule 1 detail the energy savings by regular and low- 22 income portfolios for both electric and natural gas DSM 23 programs. Johnson, Di 15 Avista Corporation 1 Q. What evaluation of the Company's DSM programs have 2 occurred? 3 A. Nexant performed independent , or "third -party " 4 impact and process evaluation on Avista 's DSM programs for 5 the 2014 -1 5 peri od . Impact evaluation is intended to verify , 6 and adjust as necessary , "claimed " savings . Process 7 eval u at i on reviews "procedures" for continual improvement . 8 Nexant concluded that Avista 's I daho e l ectric DSM 9 programs achieved 31 ,08 1 MWh in 2014 -15 cost-effectively and 10 that Avista's 20 1 4-20 1 5 energy efficiency programs addressed 11 c1 ll i mpac t and p ro c e s s ev a lu a ti on n eed s i n a c cor d anc e wi t h 12 i n dus t ry a n d r egul a to r y st a n dard s. 13 Q. What efforts t o improve the management of its DSM 14 program has Avista made since its last request for DSM 15 prudence in Idaho? 16 A. Avista continues t o actively manage and monitor 17 the progress of its programs that are delivered t o cust ome rs 18 with an emphasis on continuous improvements. We hold weekly 19 meetings with Program Managers and Management to s e rve as an 20 opportunity for status reports on project progress , results , 21 and current issues . Avista ' s DSM management continues to 22 foc u s on the employment of utility best practices rel ated to 23 DSM program implementation and oversight. Johnson , Di 16 Avista Corporation 1 The Company's DSM team achieved its combined 2014 -2015 2 savings targets, by continuously innovating, adapting, and 3 expanding program offerings. The Company remains committed 4 to its approach to energy efficiency, based on two key 5 principles. The first is to pursue all cost-effective 6 kilowatt hours and therms by offering financial incentives 7 for most energy saving measures with a simple financial 8 payback of over one year. The second key principle is to 9 use the most effective "mechanism" to deliver energy 10 efficiency services to customers. 11 Avi s t a i ~ f i na li z ing c on t r a ct negot i a ti ons wi t h N~xa~t 12 t o purcha s e a nd in t e ~ra t e the i r i Ene r gy DSM Ce ntral 13 enterprise s o ftware as the single sy s tem of record. The 14 Company believes that a single system of record will improve 15 its reporting ability, as well as, increase transparency by 16 providing external stakeholders remote access. The Company 17 has been utilizing past business mapping exerci s es, as well 18 as coordinating with other regional utilities on potential 19 program templates which may help speed the software 20 integration . 21 Johnson, Di 17 Avista Corporation 1 2 3 Q. A. IV. SUMMARY OF REQUEST Please summarize Avista's request in this case? The Company requests a finding that the 4 expenditure of tariff rider revenue has been reasonable and 5 prudent . A portfolio o f programs covering all cust ome r 6 classes has been offered with gross savings of 35 ,111 MWh 7 during January 1 , 2014 through December 31 , 2 015 . The 2 014- 8 15 UCT benefit-to-cost ratio of 2.79 for the electric DSM 9 portfo lio is cost -effective. 10 The Tariff Rider funded programs have been successful . 11 Partic i p ~ti ng cu s tomer s na ve b e nefite d t hro ugh l ower bi l l s . 12 Non -pa r t j ci pa t ing c us t omar s h a ve b e ne fi t e d f r om t he Compa n y 13 having a c quired lower c o st r e sourc es as we ll a s mainta i ning 14 the energy efficiency message and infrastructure for the 15 benefit of our service territory . 16 V. OTHER COMPANY WITNESSES 17 Q. Would you please provide a brief summary of the 18 testimony of the other witness representing Avista in this 19 proceeding? 20 A . Yes . The following additional witness is 21 sponsoring direct testimony on behalf of Avista : 22 Lynn Roy , CEM , Principal at Nexant will present the 23 results of third party verification of Avista 's 2014-15 DSM Johnson, Di 18 Avista Corporation 1 2 electric portfolio . and conclusions Ms . Roy will describe the methodology of her company's independent impact 3 evaluations and process evaluations that are a central 4 component of Avista 's Evaluation, Measurement , and 5 Verification (EM&V) Framework and EM&V Plan . 6 Her testimony concludes that Avista 's Idaho electric 7 DSM programs achieved 31 ,0 81 MWh in 2014-15 cost-effectively 8 and that Avista 's 2014 -2015 energy efficiency programs 9 addressed all impact and process evaluation needs in 10 accordance with industry and regulatory standards . 11 12 Q. VI. :i:DAHO RESEARCH AND DEVELO:E-MENT Ple a s e p r ovide an updat e on Avi s t a's rese arc h and 13 development work with Idaho Universities. 14 A. On August 30 , 2013 Avista filed a request with the 15 Commission to authorize up to $300 ,000 per year of Schedule 16 91 , DSM Tariff Rider revenue to fund appl ied research at 17 Idaho 's universiti e s through a "call for papers " approach . 18 The intent of this initiative is to supplement the pipeline 19 of emerging technology . The Commission approved this request 20 in Case No . AVU-E-13-08 on October 30 , 20 13. The Company 21 filed its Annual Report on March 31 , 2016 . 22 The following is a brief description of each of the 23 four selected projects for the 2015-2016 collegiate year : Johnson , Di 19 Avista Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Increasing Hydropower Generating Efficiency through Drag Reduction: Energy loss due to friction occurs at various phases of hydropower generation. This research investigates the potential of reducing the energy loss in the penstock so that more energy is available for power generation. The concrete/ cement surf ace of pens tock inner walls is hydrophilic . Nanotechnology has made it possible to make these surfaces hydrophobic or even super-hydrophobic. Frictional drag reduction by hydrophobicity over concrete surface treated with Zycosil has not been demonstrated or quantified. This project evaluates the potential of frictional drag reduction over Zycosil-treated surfaces. Bidirectional Charger Effects on Local Electrical Grids with Limited Access: With the increasing popularity of electrical vehicles and the anticipated decrease in their purchase prices over the next several years , electrical vehicles are coming to every commercial and academic campus. On-site charging is a benefit that many employers may want to p r. ov i de . Thi s pr o j e ct pro p oses t o b uild a b i dire c tio nal c har g i ng sy s t P.m on a uni versi t y c a mpus, a s yster1 t hat o p er a t e s wit hi ~ t he v olt a ge s an d p owe r levels t ypica l o f a home or small commercial building . We will use this charger to inve stigate the ef f ect s of bidi r ecti onal charging on the electrical utility system within the building and on nearby buildings. Simulation-Based Commissioning of Energy Management Control Systems: The r e s e arch aims to develop a me thod t o use e nergy simulation and co-simulation software to perform automated and s emi-a ut omated pre-commissioning or re t r o c ommis s i oning (Cx) of the programming that resides ins ide a cons t ructed building 's energy management contro l sys t em (EMS). This phase of the research is to complete manual proof of concept work, b e nc hmark baseline performance of a chosen tes t site, and estimate energy savings potential v i a simulation of alternate building control strategies. Residential Static VAR Compensator: To develop a smart demand-side management device based on the concept of a Residential Static VAR Compensator (RSVC) for regulating residential voltages, especially during peak demand hours. The proposed residential static VAR compensator reduces Johnson, Di 20 Avista Corporation 1 2 3 4 5 6 power consumption during peak hours in order to save energy and costs of generation . Q. Does that complete your pre-filed direct testimony? A. Yes , it does. Johnson, Di 21 Avista Corporation