20191216notice_of_application_order_no_34505.pdf

Office of the Secretary
Service Date
December 16,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.AVU-E-19-12
OF AVISTA CORPORATION REQUESTING )TO MODIFY SCHEDULE 95 TO REVISE )NOTICE OF APPLICATION
THE COMPANY'S VOLUNTARY )RENEWABLE ENERGY PROGRAM )NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34505
On November 12,2019,Avista Corporation dba Avista Utilities ("Avista"or
"Company")filed an Application requesting Commission authorization to modify its voluntary
renewable energy program Schedule 95 "Optional Renewable Power Rate"("Program")in an
effort to effectivelymanage costs,provide customers with greater choice,and to support renewable
energy within its region.Application at 1.The Company requests the Application be processed
by Modified Procedure and that the proposed revisions for its Program become effective on
January 1,2020.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting comment and reply deadlines and suspending the effective date of the proposed
revisions to the Program.
BACKGROUND
Since 2002,Avista has offered its electric customers the opportunity to voluntarily
support the development of renewable energy by participating in the Company's "Buck-a-Block"
option under the Program.Id.at 2;see also Order No.28948.Avista's wind power option was
priced in increments,or "blocks,"of $1.Id.Each $1 block of wind purchased by customers
equaled 55 kilowatt-hours ("kWhs").Id.
In 2004,the Company modified the Program from an Optional "Wind"Power Rate to
an Optional "Renewable"Power Rate.Id.The Company represents the revisions to the Program
also included the cost of renewable energy certificates ("RECs")associated with the renewable
resource.Id.The RECs were primarily from wind power generated at the Stateline Wind Energy
Center,but could also come from other "Green-e certified"resources.Id.The revised Program
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continued to include voluntaryparticipation in increments of $1 per block.Id.However,blocks
were modified to represent 300 kWh of renewable energy as opposed to the previous 55 kWh.Id.
In 2014,the Company filed additional revisions to the Program,allowingsurplus funds
to be used for rooftop solar grants for installations on commercial buildings in Idaho and
Washington.Id.;see also Order No.33218 at 2.The Company represents $347,000 in grants
were made to fund nine (9)projects in Idaho and Washington.Id.at 3.
Avista asserts that in 2019 it conducted customer research to better inform revisions to
the Program.Id.at 3.Avista states the customer feedback it received demonstrated:1)the
Company's customers are most likely to choose participation in the Program amongst other
possible offerings,and 2)the information about the Program and what value it provides is not
being communicated effectively to customers.Id.Avista represents only one percent of its
customers in Idaho participate in the Program.Id.Avista also asserts in recent years the cost of
RECs have increased but the level of Program participants has decreased.Id.at 4.As a result,the
Company represents the current operating reserves for the Program are approximately $38,000,
causing Avista concern that it may not be able to cover its costs if these trends continue.Id.Based
on the foregoing,Avista alleges there is a need to educate customers on the benefits of the Program.
Id.at 4.Further,the Company is seeking to provide additional choices to its customers through
revisions to the Program that will provide for its sustainability.Id.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Avista states in order to provide more clarity,
mitigate the rising costs of RECs and provide choices that matter,the Company is proposing to
offer two REC options for customers to choose from,all of which will continue to offer RECs
from wind,solar or other qualified alternative energy sources.Id.at 5.The Company is also
proposing to change the name of the Program to "My Clean Energy"in an effort to help customers
better understand it.Id.
YOU ARE FURTHER NOTIFIED that Avista represents the proposed options are,1)
National Blocks -Participants can purchase 300 kWh "blocks"for $1 under the national option.
Id.RECs procured under this option will be sourced from renewable generation anywhere in the
United States.Id.The Company asserts this provides customers a low cost option to continue
supporting renewable energy;and,2)Regional Blocks -Participants can purchase 100 kWh
"blocks"for $1 under the regional option.Id.RECs procured under this option will be sourced
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from generation located in the Western Interconnection,with preference given to the Northwest
region includingIdaho,Washington,Oregon,California,Montana and British Columbia.Id.This
option provides customers an opportunity to support regional renewable energy at a price point
that is more reflective of the current REC market.Id.
YOU ARE FURTHER NOTIFIED that Avista states under the revised Program current
participants will be given the choice to select either the national or regional option to participate
in,but will automatically be defaulted into the national option if they do not specify a preference.
Id.at 6.The Company believes these options will allow customers to support renewable energy
in a way that aligns with their desires and is structured similar to other investor-owned utilities
programs.Id.The Company also asserts it has structured the prices for the options to account for
Program administration,which will include increased education to help customers understand the
Program and the value it provides.Id.
YOU ARE FURTHER NOTIFIED that Avista represents enrollment in the Program
can still be accomplished online or over the phone and requires no contract.Id.Avista states
customers can enroll and/or cancel participation at any time in a given month.Further,all charges
related to the Program are in addition to the customer's regular electric charges that will appear on
their regular monthlybill as a separate line item and include appropriatetaxes.Id.
YOU ARE FURTHER NOTIFIED that to successfully implement the proposed
changes and deliver on customer expectations,Avista will modifythe language and positioning on
the Company's website to better illustrate the value of the Program.Id.Avista states all current
program participants will receive a notice of the Program changes and will be able to select the
option that best suits their needs.Id.Avista also plans on distributing ongoing communications
to its customers to promote broader awareness of the Program,as well as regular communications
to current Program participants that will include information about the renewable projects they
help support.Id.
YOU ARE FURTHER NOTIFIED that Avista asserts it has established baseline
metrics and will continue tracking the performance of the Program in an effort to meet its
objectives.Id.at 7.The three primary metrics for the Program will be customer satisfaction,
customer awareness,and customer attrition.Id.Finally,the Company expects to see customer
attrition decline and will seek to ultimatelygrow the Program from approximately 3,600 active
participants to 5,000 participants over the next three years.Id.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34505 3
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission's office.These documents are also
available on the Commission's web site at Click on the "File Room"tab at
the top of the page,then select "Electric Cases"and click on the case number as shown on the
front of this document.
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 §§61-501,61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
SUSPENSION
YOU ARE FURTHER NOTIFIED that Avista's Application requests a January 1,
2020,effective date.Due to the limited time remaining in the 2019 calendar year the Commission
finds it appropriate to suspend Avista's proposed effective date for the revisions to its Program.
Consequently,the proposed revisions to the Program are suspended for a period of thirty (30)days
plus five (5)months from the proposed effective date of January 1,2020,unless the Commission
issues an earlier Order accepting,rejecting,or modifyingAvista's Application.Idaho Code §61-
622(4).
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 that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure,IDAPA
31.01.01.201 through .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 supportor opposition with the Commission by no
later than twenty-one (21)days from the service date of this Notice.The written comment
must contain a statement of reasons supporting it.Persons desiring a hearing must specifically
request a hearing in their written comments.Written comments concerning this Application shall
be mailed to the Commission and the Company at the addresses reflected below:
NOTICE OF APPLICATION
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ORDER NO.34505 4
For the Idaho Public Utilities For Avista Corporation:
Commission
David J.Meyer,Esq.
Commission Secretary Vice President and Chief Counsel for
Idaho Public Utilities Commission Regulatory and Governmental Affairs
PO Box 83720 Avista Corporation
Boise,ID 83720-0074 1411 E.Mission Avenue,MSC-27
Spokane,WA 99220-3727
Street Address for Express Mail:E-Mail:p
11331 W.Chinden Blvd.,Linda Gervais
Building 8,Suite 201-A Senior Manager,Regulatory Policy &Strategy
Boise,ID 83714 Avista Corporation
1411 E.Mission Avenue,MSC-27
Spokane,WA 99220-3727
E-Mail:
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 .Click the "Consumers"tab then click
the "Case Comment or Question Form"and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
necessary,by no later than twenty-eight (28)days from the service date of this Notice.
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 a formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application of the Company be processed by
Modified Procedure,Rule 201-204 (IDAPA 31.01.01.201-.204).Persons interested in submitting
written comments must do so by twenty-one (21)days from the service date of this Notice.The
Company may file reply comments by no later than twenty-eight(28)days from the service date
of this Notice.
IT IS FURTHER ORDERED that the proposed effective date for the revisions to the
Program are suspended for a period of thirty (30)days plus five (5)months from the proposed
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ORDER NO.34505 5
effective date of January 1,2020,unless the Commission issues an earlier Order accepting,
rejecting,or modifying Avista's Application.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day of 10
December 2019.
intfkJÈLI ANDER,PRESIDENT
KRI8 ÌNE RAPER,COlÀÑÏSSIONER
ER AÑDEPXÒN,OÙÑÏTST R
ATTES ·
Diane M.Hanian
Commission Secretary
I:\Legal\ELECTRIC\AVU-E-19-12\AVUE1912_nteapp mod proc jh.doex
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ORDER NO.34505 6