20201229EEAF 2020 Progress Report.pdf

Avista Corp.
14l l EastMission P.O. Box3727
Spokane, Washington 99220 -0500
Telephone [phone]
Toll Free 800-727-9170
December29,2020
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C}JanNoriyuki, Secretary
Idaho Public Utilities Commission
1 1331 W. Chinden Blvd.
Bldg. 8, Suite 201-A
Boise,Idaho 83714
Re: Case No. AVU-E-19-04 - Avista Corporation Energy Efficiency Assistance Fund
(EEAF) 2020 Pr ogress Report
DearMs. Noriyuki:
Avista Corporation, dba Avista Utilities (Avista or the Company) provides this Enerry
Efficiency Assistance Fund (EEAF) 2020 Progress Report (Report) as a courtesy update to the
Idaho Public Utilities Commission (Commission), and to inform the record in Case No. AW-E-
19-04 with respect to the Company's progress in accomplishing section 16(a) of the enerry
efficiency commitnents contained in the approvod Stipulation and Settlement (Stipulation) in tre
above-re ferenced case.
I. Background
On November 29, 2019, the Commission issued its Order N o. 3 4499 in Case No. AVU -B
l9-04,Avista's 2019 elechic general rate case (GRC). In its Order, the Commission approved a
Stipulation and Settlement entered into by Avista, Clearwater Paper Corporation ("Clearwater'),
Idaho Forest Group, LLC (IFG), the Community Action Partrrership Association of ldaho,Inc.
(CAPAI), the Idaho Conservation League (ICL), and Commission Staff (collectively, the Parties).
As part of its energy efficiency commitnents identified in the Stipulation, section l6(a) reads:
a. The parties agree that Avista will establish an Energy Efficiency Assistance Fund
("EEAF"). The purpose of the EEAF is to provide additional funding for projects drat
are not otherwise fully funded through existing energy efficiency incentives, or do not
otherwise qualify for taditional enerry efficiency funding. The EEAF will be funded
and disbursed as follows:
i. The final deferral balance related to the "AFUDC Equtty Tax Deferraf,
addressed in Case Nos. AVU-E-19-02 and AVU-G-19-01, as ordered in
Commission Order No. 34326 will be a source of funding. The estimatod
deferral balance is approximately $800,000.1ii. Avista will contribute below-theJine dollars of $800,0@ n20L9 as a mabhb
the estimated AzuDC Equity Tax Deferral (in subsectioni.).iii. The funding will be disbursed as directedby the EEAF Advisory Group, a new
committee of stakeholders tasked with determining which existing or new
programs should receive this funding to address enerry efficienry,
weatherization, conservation, and low-income needs in Avista's Idaho service
territory.iv. The EEAF Advisory Group will considerthe needs of all parties and remain
flexible on the timing of any disbursements. Any entity seeking fundingmust
first attemptto qualify theirapplicable projectunderAvista's existing enerry
efficiency programs.
v. The committee will initially consist of representatives from the following
stakeholders: Avista, Staff, the Lewiston Community Action Parbrership, IC.L,
Idaho Forest, and Clearwater. The Committee may add representatives at its
discretion.
II. EEAF Advisory Group
ln compliance with the Stipulation, the EEAF Advisory Group (Advisory Group) was
established, inclusive of representatives from Avista, Commission Staff, ICL, IFG, Clearwater,
and the Lewiston Community Action Partrership (CAP), as recommended. In addition to multiple
interim email correspondences, the Advisory Group met virtually four times in 2020: l:ur;.e 24,
2020;July 27,2D2D;November 13,2020, and November20,2020. Duringthe first two meetingq
the Advisory Group reviewed the Stipulation provisions, discussedthe purpose of the EEAF and
associated Advisory Group, developed principles by which the group would operate, and
coordinated next steps for prospective EEAF project proposals. The Parties, through these
meetings, set a September30,2020 deadline forthefirstroundofprojectproposals, withpropomls
then received by Clearwater as well as a joint proposal on behalf of ICL and the Lewiston CAP.
tTheactual amountof the AFUDC Equity TaxDeferral was $732,183. Thetoal EEAF sartingbalancewas
$1,532,183.
After evaluatingthe proposed projects forpotential enerry efficiency incentives,2 the final trvo
EEAF Advisory Group meetings of 2020 were focused on proposal presentations, followed by the
review and selection of which projects or programs would receive funding.
111.2020 EEAF Projects
As a result of its 2020 efforts, the Advisory Group approved four total programs and/or
projects to receive funding from the EEAF. Combined, the projects will receive a maximum
funding amount of approximately $678,736 from the EEAF and produce an estimated annual
enerry efficiency savings of 3,537,012 kwh per year. Descriptions of each selected project or
program are provided below.
Clearwater Paper Corporation
Clearwaterpresented six industrial energy efficiency upgrade projects for consideration by
the EEAF Advisory Group. Dueto considerations regardingthe timingof implementation, project
cost, and equitable distribution of EEAF funds, three of the six proposedprojects were approved
for funding.
1. PMI Machine \[est llydro-pulper Agitator Replacements
This project will replace the electric motors and install variable speed drives ontre
PMI west repulper agitators. tnstalling these new components will allow the
agitators to be slowed down when only #1 Paper Machine winder trim is fed ino
the Hydrapulperchest. This is about 40o/o of the time the pulper is in operation
There is a significantreduction in horsepowerrequired when the agitator speeds
are slowed down. The project is estimated to save 2,279,399 kWh/yem. The total
project cost is estimated at $574,000, with Clearwater receiving an a maximum
EEAF contribution of $155,000 and an estimated enerry efficiency incentive of
$41 9,000 to pay for the project.
2 As part of its energy efficiency commitments, the Stipulation approved in Case No. AVU-E-19-04 further states: Tariff
Schedule 90 allows for possible DSM funding ofup to 70026 of the cost ofthe proiect, subject to meeting certain specified
cost-effectiveness criteria. The portion of the estimated cost of these identified projects that is not reimbursed under
Schedule 90 will be considered for funding through the EEAF, who will consider the needs of all parties and remain flexibl e
on the timing ofany disbursements. (See Stipulation, pg 11)
2. No.4 Power Boiler Demin Feed\ilater Pump Replacement
This projectwill replace two elechic motorsand install variable speeddrivesontre
Demin Feedwater Pumps. Installing these new components will allow the punrps
to be slowed down when condensate return levels are adequate. This is aboutWo
of the time during normal mill operation. There is a significant reduction in
horsepower required when the pump speods are slowed down. In addition, flre new
variable speed drives will help during startup of the system by eliminating water
hammer. The project is estimated to save 938,521kWh/year. The total project cost
is estimated at $400,000 with Clearwater receiving an a maximum EEAF
contributionof $212,296andan estimated en€rgy efficiency incentiveof $187,704
to pay for the project.
3. 3L Building Light Upgrade
This project will replace 20 to 3O-year-old HP sodium and metal halide fixtures in
our 3L Tissue Machine Building with new High Effrciency LED Type Fixtures. In
addition to significant enerry savings this will improve lighting quality and color
rendering. The projectis estimated to save 3 19,092 kWh/year. The totalprojectcost
is estimated at $90,540, with Clearwater receiving a maximum EEAF contibution
of $61,440 and an estimated enerry efficiency incentive of $29,100 to pay for ihe
project.
Lewiston CAPfl daho Conservation League
The Lewiston Community Action Partrrership, in collaboration with Idaho Conservation
League, submitted a jointproposal to relieve the existingbacklog of cost-effective weatherizatbn
projects that cannot currently be addressod bocause of health, safety, or repair issues present at flre
homes. Theproposalutilizes $250,000of EEAFfunds, to be leveragedwithotherexistingfunding
where possible, to provide non cost-effective weatheizationservices to single-family residential
homes that require work beyond the scope of typical Avista or state-funded health and safety
improvements. CAP anticipates the funding will help extend weatherization services to an
additional 20-30 income qualifiedAvista customers with low incomes, high energy burden, and
substantial dwelling issues that otherwise would notbe able to be provided. Homes thatreceive
the health, safety, orrepairimproveme,nts wouldthenbeableto go throughtheAvistalow-income
weatherization program, which they are currenflyunable to qualiff for without this new program.
The Advisory Group unanimously approved this funding request, allowing CAP the requesbd
2021 calendar year to utilize the $250,000 and providing the funds without a per project maximum
limit or other restictive provisions.
As p art o f its EEAF-funded health safety, or rep air improvements pro gram, CAP will nack
andreporttothe Parties variousmeticssuchasthenumberof homes served, overallfundingspent
perproject, associated administationcosts, measrresinstalled, and averagecostpermeasure.This
reporting will occur at the conclusion of the 2021 program year, and analysis of the results will be
used by the Parties when evaluatingfuture EEAF fundingrequests fromCAP and ICL.
IV.Conclusion
During 2020, the EEAF Advisory Group agreed to fund 4 total projects or programs that
do not otherwise qualify for taditional enerry efficiency funding; combined these ventures
accountforapproximately$678,736 of the available approximate $ 1 .53 million Enerry Efficiency
Assistance Fund. The EEAF has approximately $853,447 remaining to be spent on new projecb
and programs and anticipates a proposal for funding consideration to be submitted by the Idaho
Forest Group in early 2021. Further Advisory Group meetings will be scheduled n 2021to
evaluatethe successofthe already-approvedprograms and/orprojects, withthese evaluationstrcn
used to inform subsequentrounds of program and/orproject proposals. Avista will continue b
updatethe Commission, on an annualbasis, oftheprogressmadewiththeseprojects andprograms,
inclusive of the fracked metics described herein, until all EEAF funds have been exhausted.
Sincerely,
lolsla*r, 8or.*?A
Shawn Bonfield
Sr. Managerof Regulatory Policy & Strategy
Avista Utilities
509-495-2782
shawn. bonfi eld@ avistacorp.com
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