20170816notice_of_application_order_no_33842.pdf

Office of the Secretary
Service Date
August 16,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.AVU-E-17-06
OF AVISTA CORPORATION TO )
INCREASE ITS ENERGY EFFICIENCY )NOTICE OF APPLICATION
RIDER ADJUSTMENT SCHEDULE 91 )
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.33842
On August 1,2017,Avista Corporation applied to the Commission to increase its
“Energy Efficiency Rider”in tariff Schedule 91 (tariff rider),which would increase electric
customers’rates by 1.6%.I Avista uses the funds collected by the tariff rider “to maintain and
operate programs to encourage customers to use electricity and natural gas efficiently.”Order
No.32278 at 1.The tariff rider is designed to recover Company costs associated with providing
electric efficiency services to customers,Order No.30918 at 1,and to “match future revenue
with budgeted [energy efficiency]expenditures,”Application at 1.The Company states that the
purpose of this filing is to “establish tariff riders that are sufficient to fund the following twelve
months of [Demand Side Management (DSM)programs]as well as amortize any tariff rider
imbalance,thus minimizing the amount of future under-or over-collections.”Id.
Avista asks that its Application be processed by Modified Procedure,and requests an
effective date of October 1,2017.The Commission now issues this Notice of Application and
Notice of Modified Procedure setting a comment deadline.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Schedule 91 tariff rider funds DSM
programs described in Avista’s Schedule 90,and is applied only to electric efficiency service (as
opposed to natural gas programs,which are funded through Schedule 191).Id.at 3;see Order
No.32650 at I.Schedule 90 includes about 30 programs that provide rebates for residential and
non-residential energy efficiency measures,such as appliance,HVAC,lighting,maintenance,
The Company filed a revision to the Application on August 4,2017.This Order refers to the Application,as
revised,as the “Application.”
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33842 1
weatherization and sustainable building measures;and conversion from electric to natural gas
space and water heating.Application at 3-4.
YOU ARE FURTHER NOTIFIED that the Company also helps fund programs
through the Northwest Energy Efficiency Alliance,which promotes market transformation for
energy efficiency through a regional approach.Id.at 4.In addition,the Company provided
about $750,000 for low-income weatherization in 2016 through a program administered by the
Community Action Partnership Association of Idaho.Id.
YOU ARE FURTHER NOTIFiED that,in determining the cost-effectiveness of its
DSM programs,the Company applies tests including the Total Resource Cost (TRC)test and the
Utility Cost Test (UCT).Id.at 5.The TRC measures the net costs of a program based on the
total costs of the program,including the participants’and utility’s costs.Id.,n.1,The UCT
measures the net costs of a program based on the costs incurred by the program administrator
(including incentive costs)and excluding any net costs incurred by the participant.Id.
YOU ARE FURTHER NOTIFIED that the Company reports that,as of June 30,
2017,the tariff rider account was underfunded by about $9.7 million.Id.at 2.According to the
Company,this underfunded amount was primarily due to the Company’s “nonresidential T-LED
market transformation”lighting incentive program exceeding budget by $9 million.Id.
YOU ARE FURTHER NOTIFIED that the Company reports that its ‘forecasted
expenditures aligned closely with the actual tariff rider revenues throughout 2016,”but that
“actual expenditures began trending upwards in April,”with a significant steady increase from
September through the end of the year.Id.at 2-3.However,the Company reports that “actual
energy savings matched the upward trend in expenditures and the Company exceeded its annual
energy savings goal by 32,630,677 kWhs.”Id.at 3.The Company proposes “to increase rates
collected in Schedule 91 (the tariff rider)to bring the forecasted tariff balance close to $0 by
September 30,2020,[and]provide an appropriate level of funding for ongoing DSM
operations.”Id.
YOU ARE FURTHER NOTIFIED that the Company estimates its proposal would
increase the Company’s annual revenue by about $3.9 million,and increase the average monthly
bill of a residential electric customer using 910 kWh by about $1.37 (or 1.6%).Id.at 5.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33842
YOU ARE FURTHER NOTIFIED that the following table shows the proposed
increase to the tariff rider for various customer classes:
EXISTING PROPOSED
SCHEDULE RATE RATE
Residential Customers —Sch.1 .2450 per kWh .3950 per kWh
General Service —Sch.ii &12 .2710 per kWh .4270 per kWh
Large General Service —Sch.21 &22 .2090 per kWh .3400 per kWh
Extra Large Customers —Sch.25 .1420 per kWh .2190 per kWh
Clearwater Paper —Sch.25P .1310 per kWh .2030 per kWh
Pumping Service —Sch.31 &32 .2400 per kWh .3960 per kWh
Attachment B to Application.
YOU ARE FURTHER NOTIFIED that the Application,the Company’s proposed
customer notice,and copies of Avista’s current and proposed Schedule 91 tariff sheets have been
filed with the Commission and are available for public inspection during regular business hours
at the Commission offices.The Application and attachments are also available on the
Commission’s web site at www.puc.idaho.gpy.Click on the “File Room”tab at the top of the
page,scroll down to the type of “Open Electric Cases,”and then click on the case number as
shown on the front of this document.
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 31.01.0l.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 September 14,2017.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:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33842
Commission Secretary David Meyer
Idaho Public Utilities Commission Vice President and Chief Counsel for
P0 Box 83720 Regulatory &Governmental Affairs
Boise,ID 83 720-0074 Linda Gervais
Senior Manager —Regulatory Policy
Street Address for Express Mail:Avista Corporation
P0 Box 3727
472 W.Washington Street 1411 E.Mission Ave..MSC-27
Boise,ID 83702-5918 Spokane,WA 99220-3727
E-mail:david.meveravistacorp.com
linda.gervai s(avi stacorp .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 form using the case number as it appears on
the front of this document.These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
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 specifically
Idaho Code §61-503.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 31.01.01.000,et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure,
Rules 201-204 (IDAPA 31.01.01.201-.204).Interested persons shall have until September 14,
2017,to file written comments.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33842 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2017.
PAUL KJELLAN ,PRESIDENT
KRI INE RAPER,COM ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:AVU-E-17-06 djh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33842 5