20220621EEAF 2022 Progress Report.pdf

Avista Corp.
1411 East Mission P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
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Jwte20,2022
Jan Noriyuki, Secretary
Idaho Public Utilities pommission
11331 W. ChindenBlvd.
Bldg. 8, Suite 201-A
Boise,Idaho 83714
Re: Case No. AVU-E-19-04 - Avista Corporation Energy Elliciency Assistance Fund2022
Update Report
Dear Ms. Noriyuki:
Avista Corporation, dba Avista Utilities (Avista or the Company) provides this Energy
Efficiency Assistance Fund (EEAF) 2022 Update Report (Report) as a courtesy update to the Idaho
Public Utilities Commission (Commission), and to inform the record in Case No. AW-E-I9-04
with respect to the Company's progress in accomplishing section l6(a) of the energy efficiency
commitments contained in the approved Stipulation and Settlement (Stipulation) in the above-
referenced case.
I. Background
On November 29,2019, the Commission issued its Order No. 34499 in Case No. AW-E-
19-04, Avista's 2019 electric general rate case (GRC). [n its Order, the Commission approved a
Stipulation and Sefflement entered into by Avista, Clearwater Paper Corporation (Clearwater),
Idaho Forest Group, LLC (IFG), the Community Action Partnership Association of Idaho, [nc.
(CAPAI), the Idaho ConservationLeague (ICL), and Commission Staff(collwtively, the Parties).
As part of its energy efficiency commitnents identified in the Stipulatioq section l6(a) reads:
a. The parties agree that Avista will establish an Energy Efficiency Assistance Fund
("EEAp"). The purpose of the EEAF is to provide additional funding for projects that
are not otherwise fully funded through existing energy efficiency incentives, or do not
otherwise qualifu for traditional energy effrciency funding. The EEAF will be funded
and disbursed as follows:
i. The final deferral balance related to the "AFUDC Equity Tax Defenal",
addressed in Case Nos. AVU-E-19-02 and AW-G-19-01, as ordered in
Commission Order No. 34326 will be a source of funding. The estimated
deferral balance is approximately $800,000.tii. Avistawillcontributebelow-theJinedollarsof $800,000 rrn2019 asamatchto
the estimated AFLJDC Equity Tax Deferral (in subsection i.).
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 energy efficiency,
weatherization, conservation, and low-income needs in Avista's Idaho service
territory.iv. The EEAF Advisory Group will consider the needs of all parties and remain
flexible on the timing of any disbursements. Any entity seeking funding must
first attempt to qualifr their applicable project under Avista's existing energy
efficiency progmms.
v. The committee will initially consist of representatives from the following
stakeholders: Avista, Staff, the Lewiston Community Action Partnership,ICL,
Idaho Forest, and Clearwater. The Committee may add representatives at its
discretion.
II. EEAF Advisory Group
In 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 Pamrership (CAP), as recommended. The Advisory Group
has met many times since mid-2020 for the purposes of reviewing the Settlement provisions,
discussing the purpose of the EEAF and associated Advisory Group, developing principles by
which the group would operate, reviewing project proposals, and ultimately approving projects to
be funded by the EEAF. 1n2022, along with the approval of new projects, updates regarding the
progress or completion of previously approved and/or funded programs/projects were also
included in these meetings.
I The actual amount of the AFUDC Equity Ta:r Deferral was $732,183. The total EEAF starting balance was
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$1,532,183.
III. 2020 EEAF Projects
The Advisory Group approved four total programs and/or projects n 2020 to receive
funding from the EEAF. Combined, the projects were approved to receive a maximum funding
amount of approximately $678,736 from the EEAF and produce an estimated annual energy
efficiency savings of 3,537,012 kwh per year, not including savings from the weatherization of
low-income homes. Descriptions of each selected project or program are provided below.
Clearwater Paper Corporation
1. PMl Machine West Hydro-pulper Agitator Replacements
This project will replace the electric motors and install variable speed drives on the
PMI west repulper agitators. Installing these new components will allow the
agitators to be slowed down when only #1 Paper Machine winder trim is fed into
the Hydrapulper chest. This is about 40% of the time the pulper is in operation.
There is a significant reduction in horsepower required when the agitator speeds
are slowed down. The project is estimated to save 2,279,399 kWh/year. The total
project cost is estimated at $574,000, with Clearwater receiving a maximum EEAF
contribution of $155,000 and an estimated energy effrciency incentive of $419,000
to pay for the project.
Project Status: Project fully completed in 2022 as detailed below:o Project Cost: $568,322.88o Annual Electric Savings: 1,371,100 kWho Energy Efliciency Incentive: $315,353o EEAF Conhibution: $155,000
2. No. 4 Power Boiler Demin Feed Water Pump Replacement
This project will replace two electric motors and install variable speed drives onthe
Demin Feed Water Pumps. Installing these new components will allow the pumps
to be slowed down when condensate retum levels are adequate. This is about 90%
of the time during norrral mill operation. There is a significant reduction in
horsepower required when the pump speeds are slowed down. In addition, the new
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variable speed drives will help during startup of the system by eliminating water
hammer. The project is estimated to save approximately 938,521kWlr/year. The
total project cost is estimated at $400,000 with Clearwater receiving a maximum
EEAF contribution of $212,296 and an estimated energy efficiency incentive of
$187,704 to pay for the project.
Project Status: Project fully completed in 2022 as detailed below:
o Project Cost = $388,705o Annual Electric Savings :776,307 k'Nho Energy Efficiency Incentive: $178,551o EEAF Contribution = $210,154
3. 3L Building Light Upgrade
This project will replace 20 to 3O-year-old HP sodium and metal halide fixtures in
the 3L Tissue Machine Building with new High Efficiency LED Type Fixtures. In
addition to significant energy savings (an estimated319,092 kWh/year), this will
improve lighting quality and color rendering. The total project cost is estimated at
$90,540, with Clearwater receiving a maximum EEAF contribution of $61,440 and
an estimated energy efficiency incentive of $29,100 to pay for the project.
Project Status: Project fully completed in 2022 as detailed below:. Project Cost: $202,534o Annual Electric Savings :476,884.76 kwh. Energy Effrciency Incentive: $109,683.50o EEAF Contribution: $61,440
Lewiston CAPlldaho Conservation League
The Lewiston Community Action Partnership, in collaboration with Idaho Conservation
League, submitted a joint proposal to relieve the existing backlog of cost-effective weatherization
projects that cannot currently be addressed because ofhealth, safety, or repair issues present at the
homes. The proposal utilizes $250,000 of EEAF funds, to be leveraged with other existing funding
where possible, to provide non cost-effective weatherization services to single-family residential
homes that require work beyond the scope of typical Avista or state-funded health and safety
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improvements. CAP anticipates the funding will help extend weatherization services to an
additional 20-30 income qualified Avista customers with low incomes, high energy burden, and
substantial dwelling iszues that otherwise would not be able to be provided. Homes that receive
the health, safety, or repair improvements would then be able to proceed with the Avista low-
income weatheization prograrn, which they are currently unable to qualiff for without this new
program. The Advisory Group unanimously approved this funding request, allowing CAP the
requested 2021 calendar year to utilize the $250,000 and providing the funds without a per-project
maximum limit or other restrictive provisions.
As part of its EEAF-funded health, safety, or repair improvements program, CAP will track
and report to the Parties various metrics such as the number of homes served, overall funding spent
per project, associated administration costs, measures installed, and average cost per measure. This
reporting will occur at the conclusion of the 2021 programyear, and analysis of the results will be
used by the Parties when evaluating future EEAF funding requests from CAP and ICL.
Project Status: Through June 2, 2022, the Lewiston CAP has provided health, safety, or repair
improvements to 13 homes for a total of $103,618. The Lewiston CAP will continue to complete
home improvements until all funds have been spent.
nr.2022 EEAF Projects
TheAdvisoryGroup approved sixtotal programs and/orprojectsn202?toreceive funding
from the EEAF. Combined, the projects will receive a maximum funding amount of approximately
$853,447 from the EEAF and produce an estimated annual energy efficiency savings of 2,214,510
kWh per year, not including savings from the weatherization of low-income homes. Descriptions
of each selected project or program are provided below.
Clearwater Paper Corooration
1. CLOzLurgi Chiller Replacements
The project is estimated to save 1,291,250 kWh/year. The total project cost is
estimated at $1,167,000, with Clearwater receiving an a maximum EEAF
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contribution of $350,000 and an estimated energy efficiency incentive of $296,988
to pay for the project.
Idaho Forest Group
1. Grangeville Large Motor Drives - Synchronous Belt Conversion
The project is estimated to save 210,000 kWh/year. The total project cost is
estimated at $43,500, with IFG receiving an a maximum EEAF contribution of
$13,050 and an estimated energy efficiency incentive of $30,450 to pay for the
project.
2. Grangeville Planer Space lleat - Electric to Steam Conversion
The project is estimated to save 452,536 kWh/year. The total project cost is
estimated at $185,000, with IFG receiving an a maximum EEAF contribution of
$80,917 and an estimated energy efficiency incentive of $104,083 to pay for the
project.
3. Grangeville Domestic Water Pumps - VFD Pressure Control & Tanks
The project is estimated to save 86,124 kWh/year. The total project cost is estimated
at$21,539, with IFG receiving an a maximum EEAF contribution of $6,461 and an
estimated energy efficiency incentive of $15,077 to pay for the project.
4. Lewiston Heede Portal Log Crane - Cable Reel Hydraulic to Electric
Conversion
The project is estimated to save 174,6W kWh/year. The total project cost is
estimated at $150,000, with IFG receiving an a maximum EEAF contribution of
$110,000 and an estimated energy efficiency incentive of $40,158 to pay for the
project.
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Nez Perce Tribal Housine Authoritv (NPTIIA)2
The NPTHA currenfly operates essential home repair programs with limited annual
funding and continually seeks other funding to assist with much needed essential home repairs.
The NPTHA will utilize the EEAF to provide essential home repairs for energy conservation or
which limit access to programs that provide weatherization services. The program will serve
Native American households residing within the Nez Perce Indian reservation and who are Avista
customers. The NPTHA will continue to parfrrer with the Lewiston CAP to coordinate essential
home repairs with any weatherization programs that their common clients may be eligible for.
Through NPTHA's experience, essential home repairs that eliminate health & safety risks or
energy waste and provide housing stability can range anywhere from $500 to $15,000. The
proposed project will provide essential home repairs up to a project limit of $12,000 per household.
The NPTHA will also provide energy conservation improvements for rental units under their
management. [n total, the NPTHA requested $330,000 from the EEAF and the Advisory Group
unanimously approved of this project with a slightly lower level of funding,$293,176.
V. Conclusion
Since inception, the EEAF Advisory group has approved funding totaling $1,532,183,
which is the total amount of funding available in the EEAF. The 10 projects approved for funding
are anticipated to save 5,7 5I,I22 kWh per year, not including weatherization of low-income homes
that have received health, safety, or repair improvements by the Lewiston CAP or essential home
repairs by the NPTHA. The funds awarded served the primary intent of the EEAF, to fund projects
or programs that are not otherwise fully-funded through existing energy efficiency incentives, or
do not otherwise qualifu for traditional energy efliciency funding. Apart from the savings
attributed to low-income homes that have been weatherized following the health, safety and repair
improvements, the savings from the projects of Idaho Forest Group and Clearwater equated to the
removal of approximately 537 homes from the electric grid. Avista will continue to update the
Commission annually, on or before March 31't, of the progress made with these projects and
2 The NPTHA is not a member of the EEAG Advisory Group but was approached by the ICL regarding submitting a
proposal for EEAF funding. ICL worked with the NPTIIA on their proposal, which the Advisory Group unanimously
supported.
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programs, inclusive of the tracked metrics described herein, until all EEAF funds have been
exhausted.
Sincerely,
lolsiau,o 8a4dd
Shawn Bonfield
Sr. Manager of Regulatory Policy & Strategy
Avista Utilities
509-495-2782
shawn.bonfi eld@ avistacom. com
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