20220729Application.pdf

,littsta
Avista Corp.
l4l I East Mission, P.O.Box3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
Jiuly 29,2022
JanNoriyuki, Secretary
Idaho Public Utilities Commission
11331 W. ChindenBlvd
Building 8, Suite 201-A
Boise, ID 83714 Avt-r- E- 2-2-- o?
RE: Avista Utilities Request To Decrease Schedule 91, Enerry Efficiency Rider
Adjustment
Dear Ms. Noriyuki:
ln accordance with Idaho Code $$ 6l-501 and -507, and pursuant to Rule of Procedure
(RP) 53 (IDAPA 31.01.01.53), Avista Corporation, dba Avista Utilities ("Avista" or "Company"),
hereby submits for electonic filing with the Idaho Public Utilities Commission ("Commission")
its Application requesting approval to decrease its electric tariff Schedule 91, "Energy Efficiency
Rider Adjustmenf ' rates, effective October 1, 2022.
Ifyou have any questions regarding this filing, please contact Ryan Finesilver, Manager of
Energy Efficiency, at (5 09) 49 5 487 3 or ryan. fi nesilver@avistacom. com.
Sincerely,
/t/.,/r*r-!T/"*
Jaime Majure
Regulatory Policy Analyst
DAVID J. MEYER" Esq.
Vice President and Chief Counsel
Regulatory & Governmental Affairs
Avista Corporation
141I E. Mission Avenue, MSC 27
P. O.Box3727
Spokane, Washington 99220
Telephone: [phone]
dav i d. m eyer(@ av i stacorp. com
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR
APPROVAL TO DECREASE ITS ENERGY
EFFICIENCY TARIFF RIDER
ADruSTMENT SCHEDULE 91
cAsE NO. AVU-E,-Z2- 01
APPLICATION OF AVISTA
)
)
)
)
)
)
In accordance with Idaho Code $61-502 and RP 052, Avista Corporation, dba Avista
Utilities ("Avista" or "Company"), at l4l I East Mission Avenue, Spokane, Washington, hereby
respectfully applies to the Idaho Public Utilities Commission ("Commission") for an order
authorizing Avista to decrease to its electric tarifl I.P.U.C. No. 28, Schedule 91, "Energy
Efficiency Rider Adjustment" rates, effective October 1,2022.
Avista's Schedule 91 is tariff rider rate adjustment is designed to recover costs incurred by
the Company associated with providing energy efficiency services and programs to customers.
The tariff rider mechanism is intended 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. The purpose of this filing is to establish tariffriders
that are sufficient to fund the following twelve months' expenditures of the Company's Electric
Energy Efficiency Program, as well as amortize any tariff rider imbalance, thus minimizing the
APPLICATION OF AVISTA - I
amount of future under- or over-collections. ln this filing, Avista proposes to decrease billed
electric rates by 1.6% through proposed revisions in Schedule 91, with a requested effective date
of October l, 2022. The Company also requests that this filing be processed under the
Commission's Modified Procedure Rules (RP 201-204).
All communications, pleadings, and orders with respect to this Application should be
directed to:
David J. Meyer, Esq,
Vice President and Chief Counsel
Regulatory & Governmental Affairs
Avista Corp.
P. O.Box3727
1411 E. Mission Avenue, MSC 27
Spokane, Washington 99220-37 27
Telephone: [phone]
E-mail: david.meyer(Eavistacorp.com
Patrick Ehrbar
Director of Regulatory Affairs
Avista Corp.
P.O.Box3727
I4ll E. Mission Avenue, MSC 27
Spokane, Washington 99220-37 27
Telephone: [phone]
E-mail : [e-mail]
Avista Dockets (Electronic Only) - [e-mail]
I. BACKGROITND
Avista's Schedule 9l funds the Electric Energy Efficiency Programs as described in the
Company's Schedule 90. All revenue derived through Schedule 91 is applied only to the provision
of electric efficiency services including programs offered by the Company directly, through
designated contractors, or as part ofregional 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 measures such as appliances, compressed air,
HVAC, industrial,lighting, maintenance, motors, shell, and sustainable buildings. The Company's
programs are based on providing a financial incentive, or "rebate," for cost-effective efficiency
measures. While several metrics are applied to determine the costs and benefits of these progftrms,
APPLICATION OF AVISTA - 2
the Total Resource Cost (TRC) test and the Utility Cost Test (UCT) are most often utilized for
purposes of determining cost-effectiveness and to provide insights into program efficacy.l Ratios
over 1.0 illustrate that benefits exceed costs.
As of June 30,2022, the current Schedule 9l (electric) tariffrider balance was nearly $4.9
million overfunded. Overfunded balances indicate that more tariff rider funding was collected than
actually needed to fund the ongoing Energy Efficiency Program operations. This overfunded
balance was driven by two main factors, as described below.
First, the current rate was designed to recover a significant underfunded balance resulting
from the 2016 and 2017 program years. During this period, the Company's Energy Efficiency
Program achieved conservation savings of 88,3 l9 MWh, which exceeded its lntegrated Resource
Plan (IRP) target of 22,399 MWh by 394o/o. This overachievement resulted in an underfunded
balance of approximately $9.6 million by December 31, 2017. With the balance now overfunded
by nearly $4.9 million, as stated above, it is clear that the current rate has been successful at
recovering the underfunded balance caused by the 2016-2017 program years. Without the large,
underfunded balance present, however, the current rate is no longer consistent with the forecasted
funding needs of Avista's Energy Efficiency Program.
Second, the COVID-l9 pandemic continues to impact utility efficiency programs, with
lower levels of throughput lingering in the majority of Avista's Energy Efficiency Program
offerings. 1n2020 and202l, business closures and social distancing requirements resulted in less-
I The Total Resource Cost test measures the net costs of an energy efficiency 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. [n comparison, the Utility
Cost Test measures the net costs ofan energy efficiency program as a resource option based on the costs incurred only
by the program administrator (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 therefore defined more
narrowly.
APPLICATION OF AVISTA - 3
than-anticipated Energy Efficiency Program expenditures. While Avista expects its throughput
and associated expenditures to increase in the future, it remains unseen if the lost participation
from customers in Energy Efficiency Programs during 2}2}-22willbe realizedin lateryears.
Therefore, the Company is proposing to decrease rates collected in Schedule 91 to bring
the forecasted tariff balance close to $0 by September 30,2025; this approach will provide an
appropriate level of funding for Avista's Energy Efficiency Program for the next thirty-six months
and minimize the continued overcollection of tariff rider funds over this three-year period. By
extending the collection period over a longer period of time, the Company is attempting to align
the collection of revenue in Schedule 91 more closely with the annual Energy Efficiency Program
budget, thus minimizing the future m1s impact to customers.
ry. REOUEST FOR APPROVAL
Avista is proposing a decrease in the rates and charges in Schedule 91, to become effective
October 1,2022. The estimated annual revenue change associated with this filing is an annual
decrease of approximately $3.6 million for electric Schedule 91, or a decrease of l.4o/o in overall
billed rates. Residential customers using an average of 892 kilowatt-hours per month would see
their monthly bills decrease from $86.00 to $84.82, a d@rease of $1.17 per month, or l.4Yo.
Attachment A to this Application provides the corresponding workpapers and rate calculations for
the revisions to the Energy Efficiency Rider Adjustment described herein. Additionally, the
proposed revisions to tariffSchedule 9l are provided as Attachment B to this filing, including the
proposed revisions in legislative format per RP 121.
V. CUSTOMER NOTIFICATION
ln conformance with RP 125, this Application will be brought to the attention of
the Company's customers by way of a Customer Notice, provided as Attachment C to this filing,
APPLICATION OF AVISTA. 4
which will be included in customer's bills beginning in early August 2022 alotdrun for a full billing
cycle. Notice will also be given simultaneously with the filing, by posting of the Application to
the Company's website at myavista.com.
VI. CONCLUSION
Avista hereby respectfully requests the Commission issue its Order finding the proposed
rates and charges in Schedule 91, attached to this Application as Attachment B, to be fair, just,
reasonable and nondiscriminatory, and effective for electric service rendered on and after October
L, 2022, with this Application processed under the Commissionos Modified Procedure rules
through the use of written comments.
DATED this 296 day of July 2022.
Respectfully submitted
Avista Utilities
By:/s/ David Mever
David J. Meyer, Vice President and Chief
Counsel for Regulatory and Govenrmental Affairs
APPLICATION OF AVISTA - 5
AVISTA UTILITIES
2022
Idaho Electric
Schedule 91
DSM Rate Adjustment Filing
Case No. AVU-E-Z2-}q
Proposed Tariffs
July 29,2022
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
0.263 I per kWh
0.2311 per kWh
0.255 I per kWh
1.039 I per kWh
Schedule 25
Schedule 25P
Schedule 31 &32
0.147 p per kWh
0.132 $ per kWh
0.256 d 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 29,2022 Effective October 1,2022
l.P.U.C. No.28
lssued by
By
Twelfth Revision Sheet 91
Canceling
Eleventh Revision Sheet 91 91
Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs
AV]STA CORPORATION
d/b/a Avista Utilities
SCHEDULE 91
ENERGY EFFIC!ENCY RIDER ADJUSTMENT . IDAHO
APPLICABLE:
To Customers in the Strate 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
ffi I per kWh
9,4271 per kWh
034o I per kWhffi I per kWh
Schedule 25
Schedule 25P
Schedule 31 &32
0*lg I per kWh
O*eg l per kWhre 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.
lssued July 31 ,2017 Effective October 1, 2017
Eleventh ReMsion Sheet 91
Canceling
Tenth Revision Sheet 91 91I.P.U.C. No.28
lssued by Avista Utilities
"4/^.,j'',o.Nonrood,Vice.President,State&FederalRegulation
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 al!
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
0.263 I per kWh
0.2311 per kWh
0.255 I per kWh
1.039 d per kWh
Schedule 25
Schedule 25P
Schedule 31 & 32
0.1471 per kWh
0.132 0 per kWh
0.256 d 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 29,2022 Effective October1,2022
l.P.U.C. No.28
lssued by
By
Twelfth Revision Sheet 91
Canceling
Eleventh Revision Sheet 91 91
Avista Utilities
Patrick Ehrbar, Director of Regulatory Affairs