20210730Application.pdf

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Avista Corp.
141 I East Mission P.O. Box3727
Spokane. Washingto n 99220-37 27
Telephone [phone]
Toll Free 800-727-9170
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Re:
Jnly 30,2021
State of Idaho
Idaho Public Utilities Commission
11331W. ChindenBlvd
Bldg 8 Suite 201-A
Boise,lD 83714
Attention: Ms. Jan Noriyuki, Secretary
Case No. AVII-E-21-11
Energy Efficiency Rate Adjustment Filing of Avista Corporation
Dear Commission Secretary:
In accordance with Case No. GNR-U-20-01, Order No. 34602, which suspends the requirement to file
physical copies, the Company has attached for electronic filing with the Commission the following
revised tariff sheet:
Twelfth Revision Sheet 91 canceling Eleventh Revision Sheet 91
Enclosed for filing with the Commission is Avista Corporation's dba Avista Utilities ("Avista or
the Company") Application requesting approval of changes to the Company's Energy Efficiency
Tariff Schedule 91.
Electronic versions of the Company's filing were emailed to the Commission, and the Service List,
on July 30,2021.
Please direct any questions regarding this filing to Marcus Garbarino at [phone] or Joe
Miller at [phone].
Sincerely,
/s/ Patrick Ehrbar
Patrick Ehrbar
Director of Regulatory Aftairs
Enclosures
1 DAVID J. MEYER
2 VICE PRESIDENT AND CHIEF COTINSEL FOR
3 REGULATORY AND GOVERNMENTAL AFFAIRS4 AVISTA CORPORATION5 I4I I E. MISSION AVENUE6 P. O.BOX37277 SPOKANE, WASHINGTON 992208 PHONE: [phone], FAX: (509) 49s-88s19 david.rneyer@,avistacorp.com
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR THE
REQUEST TO DECREASE ITS ENERGY
EFFICIENCY RIDER ADJUSTMENT
CASE NO. AVU-8,-21- II
APPLICATION OF
AVISTA CORPORATION
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I. INTRODUCTION
In accordance with Idaho Code $61-502 ard RP 052, Avista Corporation, doing
business as Avista Utilities (hereinafter "Avista" or "Company"), at 1411 East Mission
Avenue, Spokane, Washington, respectfully makes application to the Idaho Public Utilities
Commission ("Commission") for an order authoizing Avista to decrease its electric
Schedule 91 "Energy Efficiency Rider Adjustment" rates effective October 1,202I.
Avista's Schedule 9l is tariff rider rate adjustment designed to recover costs
incurred by the Company associated with providing energy efficiency services and
programs to customers. The tariff rider mechanism is designed to match future revenue
with budgeted expenditures; to ensure appropriate recovery, the mechanism includes a
true-up feature that reconciles the previous periods' actual expenditures and collections.
AVISTA'S SCHEDULE 91 RATE ADruSTMENT FTLING PAGE 1
I The purpose of this filing is to establish tariff riders that are sufficient to fund the following
2 twelve months of Energy EfEciency expenditures, as well as amortize any tariff rider
3 imbalance, thus minimizing the amount of future under- or over-collections. In this filing,
4 Avista proposes to decrease billed electric rates by 2.2o/o through proposed revisions in
5 Schedule 91, with a requested effective date of October l, 2021. The Company also
6 requests that this filing be processed under the Commission's Modified Procedure Rules
7 (RP 201-204).
8 Communications in reference to this Application should be addressed to:
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David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory & Govemmental Affairs
Avista Corporation
P.O.Box3727
l4ll E. Mission Avenue, MSC-I0
Spokane, WA 99220-3727
Phone: [phone]
d avid. meyer(rD a vi stacorp. com
Patrick Ehrbar
Director of Regulatory Affairs
Avista Corporation
P.O.Box3727
1411 E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
pat. ehrbar@avistacorp. corn
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Dockets@Avistacorp. com
II. BACKGROUND
Avista's Schedule 91 funds the Electric Energy Efficiency Programs as described
in the Company's Schedule 90. All Schedule 91 revenue is applied only to the provision
of electric efficiency services including programs offered by the Company directly,
through designated contractors, or as part of regional electric programs as well as
evaluation, measurement, and verification ("EM&V"). These programs include, but are not
limited to, behavioral programs,low-income weatherization,Northwest Energy Efficiency
Alliance (NEEA) participation, and provision of incentives for various energy efficiency
AVISTA'S SCHEDULE 9I RATE ADruSTMENT FILTNG PAGE 2
I measures such as appliances, compressed air, HVAC, industrial, lighting, maintenance,
2 motors, shell, and sustainable buildings. The Company's programs are based on providing
3 a financial incentive, or "rebate," for cost-effective efficiency measures. While several
4 metrics are applied to determine the costs and benefits of these programs, the Total
5 Resource Cost (TRC) test and the Utility Cost Test (UCT) are most often utilized for
6 purposes of determining cost-effectiveness and to provide insights into program efEcacy.l
7 Ratios over 1.0 illustrate that benefits exceed costs.
8 As of June 30, 2021, the current Schedule 9l (electric) tariff rider balance was
9 nearly $ 1.6 million overfunded. Overfunded balances indicate that more tariffrider funding
l0 was collected than actually needed to fund the ongoing Energy EfEciency operations. This
1l overfunded balance was driven by two main factors, as described below.
12 First, the current rate was designed to recover a significant underfunded balance
13 resulting from the 2016-2017 program years. During this period, the Company's Energy
14 Efficiency Program achieved conservation savings of 88,319 MWh, which exceeded its
15 Integrated Resource Plan (IRP) target of 22,399 MWh by 394%. This overachievement
16 resulted in an underfunded balance of approximately $9.6 million by December 3 l, 2017 .
17 With the balance now ovelfunded by nearly $1.6 million, as stated above, it is clear that
18 the current rate has been successful at recovering the underfunded balance caused by the
I The Total Resource Cost test measures the net costs of a demand-side management program as a resource
option based on the total costs of the program, including both the participants' and the utility's costs. Further,
it includes the impact of any quantifiable non-energy impacts that may be associated with the equipment
installed. The Utility Cost Test measures the net costs of a demand-side management pro$am as a resource
option based on the costs incurred by the program administator (including incentive costs) and excluding
any net costs incurred by the participant. The benefits are similar to the TRC benefits, however, exclude non-
energy impacts. Costs are defined more narrowly.
AVISTA'S SCHEDULE 9I RATE ADJUSTMENT FILING PAGE 3
I 2016-2017 program years. Without the large underfunded balance present, however, the
2 current rate is no longer consistent with the forecasted funding needs of Avista's Energy
3 Efficiency Program.
4 Second, the COVID-I9 pandemic continues to impact utility efficiency programs,
5 with lower levels of throughput lingering in the majority of Avista's Energy EfEciency
6 Program offerings. 1n2020 and202l,business closures and social distancing requirements
7 resulted in less-than-anticipated Enerry Efficiency Program expenditures. While Avista
8 expects its throughput, and associated expenditures, to increase in the future, it remains
9 unseen if the lost participation from customers in Energy Efficiency Programs during 2020
10 will be realized in later years.
1l Therefore, the Company is proposing to decrease rates collected in Schedule 9l to
12 bring the forecasted tariff balance close to $0 by September 30,2024; this approach will
13 provide an appropriate level of funding for Avista's Energy Efficiency Programs for the
14 next thirty-six months and minimize the continued overcollection of tariffrider funds over
15 this three-year period. By extending the collection period over a longer period of time, the
16 Company is attempting to more closely align the collection of revenue in Schedule 9l with
17 the annual Energy Efficiency Program budget, thus minimizing the future rate impact to
18 customers.
19 III. REOUEST FOR RELIEF
20 Avista is proposing a decrease in the rates and charges in Schedule 91, to become
2l effective October | , 2021 . The estimated annual revenue change associated with this filing
22 is an annual decrease of approximately $5.6 million for electric Schedule 91, or a decrease
23 of 2.2% in overall billed rates. Residential customers using an average of 892 kilowatt-
AVISTA'S SCHEDULE 91 RATE ADruSTMENT FILING PAGE 4
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I hours per month would see their monthly bills decrease from $85.63 to $83.77, a decrease
2 of $ l.86 per month, or 2.2o/o. Attachment A to this Application provides the corresponding
3 workpapers and rate calculations for the revisions to the Energy Efficiency Rider
4 Adjustment described herein. Additionally, the proposed revisions to tariffSchedule 9l are
5 provided as Attachment B to this filing, including the proposed revisions in legislative
6 format per RP 121.
TV. CUSTOMERNOTIFICATION
8 In conformance with RP 125, this Application will be brought to the attention of
9 the Company's customers by way of a Customer Notice, provided as Attachment C to this
l0 filing, which will be included in customer's bills beginning in early August 2021 andrun
11 for a full billing cycle. Notice will also be given simultaneously with the filing, by posting
12 of the Application to the Company's website at myavista.com.
t3 V. CONCLUSION
14 The Company respectfully requests the Commission issue its Order finding the
15 proposed rates and charges in Schedule 91, attached to this Application as Attachment B,
16 to be fair, just, reasonable and nondiscriminatory, and effective for electric service rendered
17 on and after October 1,202I, with this Application processed under the Commission's
l8 Modified Procedure rules through the use of written comments.
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AVISTA'S SCHEDULE 9I RATE ADJUSTMENT FILING PAGE 5
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Dated at Spokane, Washington this 30e day of July 202t.
AVISTA CORPORATION
ls/ DavidJ. MeverBY
DavidJ. Meyer
VicePresident and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
AYISTA'S SCHEDULE 91 RATE ADruSTMENT FILING PAGE 6
LP.U.C. No.28
Twelfth Revision Sheet 91
Canceling
Eleventh Revision Sheet 91
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shall be applicable to all
retail customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incuned by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 1
Schedule 11 & 12
Schedule 21 &22
Schedules 41 - 49
0.185 S per kWh Schedule 25
0.179 I per kWh Schedule 25P
0.168 I per kWh Schedule 31 & 32
0.723 0 per kWh
O.1O2 0 per kWh
0.093 I per kWh
0.179 $ per kWh
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 30, 2021 Effective October 1,2O2'l
By
Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
Eleventh Revision Sheet 91
Canceling
Tenth Revision Sheet 91 91l.P.U.C. No.28
lssued by
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY RIDER ADJUSTMENT. IDAHO
APPL!CABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shall be applicable to al!
retai! customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incurred by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individua! rate schedules are to be increased by
the following amounts:
Schedule 1
Schedule 11 & 12
Schedule 21 &22
Schedules 41 - 49
03951 per kWh
e42?- l per kWh
034o I per kWhM I per kWh
Schedule 25
Schedule 25P
Schedule 31 & 32
0*lg I per kWh
O*eg l per kWh
O€eG l per kWh
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
lssued July 31 ,2017 Effective October1,2017
By I Kelly O. Norwood, Vice-President, State & Federal Regulation
rualn"=d
l.P.U.C. No.28
lssued by
By
Twelfth Revision Sheet 91
Canceling
Eleventh Revision Sheet 91 91
ities
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFICIENCY RIDER ADJUSTMENT . IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has electric service
available. This Energy Efficiency Rider or Rate Adjustment shall be applicable to all
retail customers for charges for electric energy sold and to the flat rate charges for
Company-owned or Customer-owned Street Lighting and Area Lighting Service.
This Rate Adjustment is designed to recover costs incurred by the Company
associated with providing energy efficiency services and programs to customers.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 1
Schedule 11 & 12
Schedule 21 &22
Schedules 41 - 49
0.185 I per kWh
0.179 d per kWh
0.168 I per kWh
0.7231 per kWh
Schedule 25
Schedule 25P
Schedule 31 &32
0.102 S per kWh
0.093 I per kWh
0.179 I per kWh
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 58.
Effective October 1, 2021lssued July 30,2021
Patrick Ehrbar, Director of Regulatory Affairs