modpro.app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION DBA AVISTA UTILITIES—WASHINGTON WATER POWER DIVISION REQUESTING APPROVAL OF PROPOSAL REVISIONS AND CHANGES TO ITS SCHEDULE 90 ELECTRIC ENERGY EFFICIENCY PROGRAMS—IDAHO TARIFF. )
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) CASE NO. AVU-E-99-4

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/ PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on July 2, 1999, Avista Corporation dba Avista Utilities—Washington Water Power Division (Avista; Company) filed a complete revision of its Schedule 90 Electric Energy Efficiency Programs tariff with the Idaho Public Utilities Commission (Commission). The stated purposes of this tariff revision are: (1) to allow the Company to change its energy efficiency focus from specific technologies to various customer segments; (2) to modify and add to the list of available products and services; (3) to replace measure-specific customer incentives with a somewhat simpler table of incentives based on technology type and customer pay-back period; and (4) to allow greater management flexibility in spending the energy efficiency funds collected from customers through its energy surcharges and Schedule 91. One of the results of these proposed changes is that the number of tariff sheets in Schedule 90 are reduced by two-thirds, from 18 pages to 6 pages, even while increasing the number and type of technologies offered.
The Company believes that providing a wide range of efficiency measures to each of ten customer segments rather than continuing to offer specific technologies in a fragmented manner to individual customer classes “will enhance energy efficiency promotion in an equitable and effective manner.” Customer segments are groups of customers defined by common characteristics such as facilities and energy usage. The customer segments identified are agriculture, education, food service, health care, hospitality, limited income, manufacturing/ public works, office, residential and retail. All customers buying electricity under the various customer class rate schedules would be eligible for efficiency measures under one or more customer segments.
This filing modifies Schedule 90 existing products and services and adds several new efficiency measures of which two have not traditionally been included in utility demand side management (DSM) programs: (1) Assistive Technologies for physically or mentally challenged customers to improve the safety and efficiency of their electricity usage, and (2) Distributed Renewable Energy resources (based on solar, wind and geothermal) to be owned by customers and that would displace Company generated electricity load.
This filing replaces measure-specific customer incentives and project caps with a single, somewhat simpler table of incentives and caps. Most customer incentives would be capped at 50% of project costs, but new technologies, including Distributed Renewable Energy, would have a higher cap at 75% of project costs. Within the caps, specific incentives are disaggregated by three broad measure types and three pay-back periods. The Company states that new technologies and longer pay-back periods require higher incentives. The proposed incentive amounts range from a low of $.01 per first year kWh saved for fuel conversion projects with a customer pay-back between 24 and 48 months to a high of $.14 per kWh saved for new technology projects with at least a 72 month customer pay-back.
Increased management, budgetary flexibility can be achieved, the Company contends, by replacing existing annual caps for the various measures with guidelines that show an “expected” distribution of expenditures over broad categories. Avista says the budget is “intended to have some flexibility based upon the relative opportunities and successes in each program, customer segment or technology.” The categories and their expected shares of funding are as follows: Commercial and Industrial classes would get 50%; Residential (regular and limited income) customers would get 20%; Regional efforts such as the Northwest Energy Efficiency Alliance would get 20%; and Site-Specific Service Agreements, primarily industrial and commercial, would get 10%.
The Company proposes no change in its overall cost-effectiveness evaluation standards. There is no revenue or rate change associated with this filing. The funding for programs is provided through Schedule 91. The Company acknowledges that it remains responsible for achieving and demonstrating through monitoring and evaluation, the cost-effective reduction of kilowatt hours based on the revenues obtained from Schedule 91.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. AVU-E-99-4. The Commission has preliminarily determined that the public interest may not require a hearing to consider the issues presented and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. AVU-E-99-4 is Friday, August 20, 1999. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. AVU-E-99-4 should be mailed to the Commission and the Company at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 THOMAS D. DUKICH
MANAGER RATES AND TARIFF ADMIN
AVISTA UTILITIES—WASHINGTON WATER POWER DIVISION
PO BOX 3727
SPOKANE, WA 99220
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. AVU-E-99-4 can be reviewed at the Commission’s office and at the Idaho offices of Avista Corporation dba Avista Utilities—Washington Water Power Division during regular business hours.
DATED at Boise, Idaho this day of July 1999.

Myrna J. Walters
Commission Secretary

vld/N:AVU-E-99-4_sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE 1

Office of the Secretary
Service Date
July 29, 1999