20181130Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 29, 2018
SUBJECT:IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION
FOR A DETERMINATION OF 2016-2017 ELECTRIC ENERGY
EFFICIENCY EXPENSES AS PRUDENTLY INCURRED; CASE NO.
AVU-E-18-12.
On November 16,2018, Avista Corporation ("Avista" or "Company") filed an
Application requesting the Commission to determine that expenses the Company incurred for
energy efficiency measures from 2016 to 2017 were prudently incurred.
THE APPLICATION
The Company states that it spent $22,719,204 on energy efficiency measures from
January 1,2016 to December 31, 2017. Application at 1. The Company reports that74Yo, or
$16,835,716 of its expenditures were paid to customers in direct incentives. Id. at 3-4. The
Company reports that its energy efficiency portfolio achieved a Utility Cost Test ratio of 2.8 in
2016 and 4.33 in 2017 and a Total Resource Cost ratio of 2.17 in 2016 and 2.69 in 2017 . Id. at
7-8. The Company reports that its energy efficiency programs saved 38,149 MV/h in 2016 and
42,223 MWh in 2017, which exceeded the 22,399 MWh goal for the two year time period by
359%. Id. at 8-9. The Company reports that it hired a third party to evaluate and verify the
demand savings attributable to the Company's energy efficiency portfolio. Id. The Company
provided a copy of this report with its Application as well as a copy of the Company's R&D
report, which shows the Company's expenditures on energy efficiency R&D projects proposed
and implemented by the state's four-year Universities from 2016 to 2017 pursuant to Order No.
32918. Id. at 10.
1DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Intervention Deadline, with an intervention deadline set for 2l days after service of the Notice.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Intervention
Deadline that establishes an intervention deadline set for 21 days after service of the Notice?
Edward J. J
Deputy Attorney General
IlLegal\ELECTRIC\AVU-E- I 8- I 2\AVUE I 8 I 2_dec memo l_ej
2DECISION MEMORANDUM
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