140919_AVUprudencyreview.pdf

Case No. AVU-E-14-07 and AVU-G-14-02, Order No. 33131
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Commission begins prudency review
of Avista electric, gas conservation programs

BOISE (Sept. 19, 2014) – Avista Utilities is seeking a determination from the Idaho Public
Utilities Commission that $7.63 million it spent during 2013 on electric and natural gas
efficiency programs was prudently incurred.

Money spent on electric and gas conservation programs must be shown to be cost-effective in
order to be funded by the Energy Efficiency Rider paid by Avista’s customers. Residential
customers currently pay 0.245 cents per kilowatt-hour for the programs. The prudency review
will not impact rates.

All three of Idaho’s major investor-owned utilities have “efficiency riders” that pay for programs
to incent either the efficient use of electricity or reduce demand on a utility’s generation
system. The programs must pass multiple cost efficiency tests that demonstrate that the
savings realized are greater than the programs’ costs. Further, the programs must benefit all
customers, not just those who participate in them.

Avista claims it energy efficiency savings for 2013 were 25,899 megawatt-hours, well over its
target of 19,009 MWh. Reduced demand on its system is 122 average megawatts. Company-
sponsored conservation is reducing retail loads by 10.6%, Avista claims. Its gas savings are
51,722 terms.

About 64% of the $7.63 million Avista spent on electric and gas conservation programs was paid
out to customers in direct benefits, primarily for installation of electric or gas efficient
appliances. Some of the energy efficiency programs include installation of high-efficiency heat
pumps, ductless heat pumps and water heaters; ceiling, attic and floor insulation; compact-
fluorescent lighting exchange programs, refrigerator and freezer recycling, home energy audits
and low-income weatherization assistance.

Avista contracted with a third-party, Cadmus, to evaluate, measure and verify the utility’s
conservation programs.

Parties who wish to intervene in the commission’s prudency review for the purpose of
presenting evidence or cross-examining parties must do so by Oct. 2. Later, the commission
will announce comment deadlines for individual customers who want to comment.

To read documents related to this case, including Avista’s 2013 Demand-Side Management
Report, go to www.puc.idaho.gov and click on “Open Cases” under the Electric heading and
scroll down to Case No. AVU-E-14-07. For the report, click on “Folsom Exhibit 1, DSM Report.”

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