20090731notice_of_application_order_no_30870.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
July 31, 2009
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR
AUTHORITY TO INCREASE ITS TARIFF
SCHEDULES 91 AND 191 - ENERGY
EFFICIENCY PUBLIC PURPOSE RIDER
ADJUSTMENTS
CASE NOS. A VU-09-
VU-09-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF
COMMENT/PROTEST DEADLINE
INTERLOCUTORY
ORDER NO. 30870
YOU ARE HEREBY NOTIFIED that on June 30, 2009, Avista Corporation dba
Avista Utilities (A vista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) requesting approval of an increase to tariff Schedules 91 and 191
rates, Energy Efficiency Public Purpose Rider Adjustment. Schedules 91 and 191 are designed
to recover the costs incurred by the Company associated with providing electric and natural gas
energy efficiency services to customers. The proposed increase in Schedules 91 and 191 rates
the Company contends, is necessary to continue to fund ongoing electric and natural gas
efficiency programs consistent with the Company s most recent electric and natural gas
integrated resource plans (IRPs). It will also serve to amortize a deficiency balance within the
electric and natural gas efficiency tariff riders resulting from the Company s response to higher
than expected customer demand for services. Also included in the Company s filing are
proposed procedural modifications to reduce the likelihood of significant positive or negative
balances in the future.
The Commission by this Interlocutory Order authorizes the proposed increases in
Schedules 91 and 191 Energy Efficiency Public Purpose Rider Adjustments for an August 1
2009, effective date to coincide with other rate changes occurring on that date and establishes a
procedural schedule for investigation and comments.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
Electric Schedule
The proposed net increase above current rates by servIce schedule for electric
customers is as follows:
Residential Service-Schedule 1
General Service-Schedules 11 & 12
Large General Service-Schedules 21 & 22
Extra Large General Service-Schedule 25
Potlatch-Schedule 25P
Pumping Service-Schedules 31 & 32
73%
73%
73%
73%
73%
73%
The proposed 2.73% increase in the existing efficiency tariff is equivalent to a $1.77 a month
increase for a residential customer using an average 1 000 kilowatt hours per month.
Natural Gas Schedule 191
The proposed net increase above rates authorized for an August 1 , 2009, effective
date by service schedule for natural gas customers is as follows:
General Service- Firm-Schedule 101
(Residential & Small Commercial)
Large General Service Firm-Schedules 111 & 112
Interruptible Service-Schedules 131 & 132
1.01 %
1.01 %
1.01 %
The proposed 1.01 % increase in the existing energy efficiency tariff for natural gas customers is
equivalent to a $0.90 per month increase for residential customers using 65 therms per month.
As reflected in the Company s Application, customers continue to look to Avista
DSM programs for assistance in responding to increased retail electric and natural gas prices.
Existing and planned programmatic expenditures are exceeding tariff rider revenues. As of the
close of May 2009, Avista s electric DSM tariff rider balance for Idaho is a negative $2 361 178
and the natural gas DSM tariff rider balance for Idaho is a negative $1 036 753. The proposed
tariff rider increase is estimated to eliminate this current negative balance by the end of 20 1 0 and
to fund estimated future expenditures. The proposed increase in the DSM surcharge is
approximately 2.73% at present electric rates and 1.01 % at present natural gas rates.
Schedules 91 and 191 funds support DSM programs described in Schedules 90 and
190. These programs include but are not limited to the following measures:
. Appliance Measures
. Compressed Air Measures
HV AC Measures
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
. Induscrial Measures
. Lighting Measures
. Maintenance Measures
. Motors Measures
. Renewable Technologies
. Northwest Energy Efficiency Alliance Participation
. Shell Measures
. Sustainable Building Measures
The Company s DSM programs are based on providing financial incentives, or
rebates " for cost-effective efficiency measures installed by customers with a simple payback of
greater than one year. This includes more than 300 measures that are packaged into more than
30 programs for customer convenience.
A vista has long encouraged the direct use of natural gas by its electric customers.
The Company is continuing this effort with residential rebates for the conversion of electric-to-
natural-gas space and water heat loads as well as a broad program for any non-residential
electric-to-natural-gas conversions meeting specified criteria for relative British Thermal Unit
(BTU) efficiency. The cost-effective potential for these measures has been incorporated into
Avista s IRP effort and is contained within the identified acquisition goal. Avista s residential
programs include high efficiency equipment, electric-to-natural-gas conversions, compact
florescent lights (CFLs), "second" refrigerator recycling, weatherization and rooftop dampers, as
well as providing educational assistance through various community events.
For non-residential customers, in addition to prescriptive programs, Avista offers
site-specific" programs. Site-specific programs are customized to the customer premise. The
site-specific offering provides incentives on commercial and industrial energy efficiency
measures with a simple financial payback exceeding one year. This is implemented through site
analysis, customized diagnosis, and incentives determined for savings generated by the
customers' premise or process.
customers include:
Commercial and industrial programs available to A vista
. Energy Smart Commercial Refrigeration
. Lighting and Controls
. Commercial Food Service Equipment
. Building Retro-commissioning
. Premium Efficiency Motors
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
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INTERLOCUTORY ORDER NO. 30870
. Power Management for Personal Computer (PC) Networks
LEED Certification, Commercial HV AC Variable Frequency Drives (VFDs)
. Refrigerated Warehouses
. Vending Machine Controllers
. Demand Controlled Ventilation
. Side-stream Filtration
. Steam Trap Replacement and Repair
. Multi-family Development
. LED Traffic Signals
. Electric-to-Natural-Gas Water Heater Conversions
. Commercial Clothes Washers
In addition to Avista s prescriptive and site-specific programs, the Company funds
and participates in the activities of the Northwest Energy Efficiency Alliance (NEEA). NEEA
focuses on using a regional approach to obtain electric efficiency through the transformation of
markets for efficiency measures and services. An example of NEEA-sponsored programs that
benefit A vista customers is decreasing the cost of CFLs and high efficiency appliances by
working through manufacturers. For some measures, a large scale, cross-utility approach is the
most cost-effective means to achieve energy efficiency savings. This approach is particularly
effective for markets composed of large numbers of smaller usage homogenous consumers, such
as the residential and small commercial markets. The results from NEEA programs are reported
in March of the following year. For 2008 , Avista s portion of the regional savings from NEEA
programs amounted to 2.1 aMW or more than 18 million kWh.
Effective October 1 , 2008, in Order No. 30647 in Docket Nos. A VU-08-01 and
A VU-08-, $465 000 was directed to Idaho electric and natural gas low-income customers
and $25 000 was provided to Idaho Consumer Assistance Program (CAP) agencies for the
purpose of underwriting agency personnel assisting in low-income outreach and conservation
education.The low-income weatherization portfolio represents approximately 8% of the
Company s total energy efficiency budget.
A vista also actively participated in the energy affordability workshops in Case No.
GNR-08-01.In that case, workshop participants are exploring ways to address energy
affordability and the difficulties some customers experience in paying their energy bills. A vista
supports the Commission s Order No. 30724 in that case and favors legislation that would allow
utilities to propose "programs, policies and rates" that may assist low-income customers in their
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
efforts to pay energy bills. The Commission specifically identified Avista s Low Income Rate
Assistance Program (LIRAP), as a means to provide funds to help low income residents in
Washington and Oregon pay their energy bills. The LIRAP program (if implemented in Idaho)
would allow A vista to collect, through a small monthly charge to all customers, additional
dollars that would be directed to customers least able to pay their energy bills. The local
community action agencies that are already in place would administer these dollars. The
Company is committed to working with the Commission Staff and interested parties to support
this legislation in 2010.
Stakeholder EnrolimentslRevised Procedures
The Company has regularly convened a stakeholders' forum known as the External
Energy Efficiency Board (Triple E). These meetings have included customer representatives
Commission Staff members, and individuals from the environmental communities. These
stakeholder meetings review the Company s program offerings as well as the underlying cost-
effectiveness tests and results. The programs have been cost-effective from both a Total
Resource Cost (TRC) and Program Administrator Cost Test (PACT) (formally known as the
utility cost test) (UCT)) perspective. The increased funding requested in the Company s filing
will continue to be subject to the cost-effectiveness test prescribed by the Commission.
To reduce the likelihood of significant positive or negative balances in the future
A vista proposes that a schedule be established for the revision of the DSM components of
Schedules 91 and 191. A vista proposes to file on or before February 15th of each year to revise
the DSM portions of the Schedule 91 and 191 tariff rider mechanisms to establish tariff riders
that are sufficient to fund the following twelve months of DSM as well as amortizing any tariff
rider imbalance. It is understood that discussions with interested parties may, from time to time
lead to modifications of this process in the event that the projected change to the tariff rider is
very small or when changes to the period of time that an imbalance is to be recovered are
deemed appropriate.
Further, Avista commits to circulate drafts of any tariff revision affecting the
Company s DSM portfolio to its Triple E board at least 30 days prior to filing said revision.
A vista also proposes to provide the Triple E board with a quarterly report on the Schedule 91 and
191 tariff rider balances. Triple E board members will receive an e-mail alert if either of these
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
balances exceeds 20% of the forecasted annual revenue, either positive or negative, at any
month-end. A vista has not and does not currently earn any interest upon any positive (customer
owes shareholder) balance in the tariff rider. Avista will complete and circulate an analysis of
the results in the prior calendar year to the board by March 31 st of each year.
The protocols described above, the Company contends, will manage the balances of
the tariff rider mechanism and ensure that sufficient funding is available for the completion of
programmatic measures. The reasons that the tariff rider balances have been negative are
because Avista has acquired, and will continue to acquire, cost-effective energy-efficiency
resources as an important component of its overall resource portfolio. This includes meeting
customer demand for energy efficiency financial rebates in advance of tariff rider recovery.
The estimated annual revenue change associated with the Company s filing is
approximately $5.4 million for electric and $1 million for natural gas, or an increase of 2.73%
and 1.0% respectively. An increase in the energy efficiency tariff has no impact on Company
earnIngs.
A vista requests that the Commission issue its Order finding the proposed rates and
charges in Schedules 91 and 191 to be fair, just and reasonable and nondiscriminatory, and
effective for electric and natural gas service rendered on and after August 1 , 2009. The
Company requests that its Application be processed under Modified Procedure, i., by written
submission rather than by hearing. Reference Commission Rules of Procedure IDAP A
31.01.01.201-204.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case Nos. A VU-09-06 and
A VU-09-04. Avista in these cases proposes an increase in the funding of its electric and gas
energy efficiency riders for DSM programs (tariff Schedules 91 (electric) and 191 (natural gas)).
The Company also proposes procedural modifications to address imbalances in funding and
program expenditures. The Company in its filing contends that its program expenditures for
both electric and gas have exceeded the revenue generated by the au thorized Schedule 91
(electric) and 191 (natural gas) Energy Efficiency Rider Adjustments and carries a negative
balance for both electric and gas. The Commission notes that the Company s filing and
proposed effective date coincides with the August 1 , 2009, rate changes authorized by the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
Commission in Avista rate Case Nos. A VU-E/G-09-01 (Order No. 30856) and BPA Credit Tariff
Advice 98. To minimize the number of rate changes, to take advantage of the offsetting electric
BP A residential and small farm credit (Tariff Advice 98) and to permit recovery of Schedule
and 191 imbalances the Commission finds it reasonable by Interlocutory Order to authorize
implementation of the proposed increase in the Company s electric Schedule 91 and natural gas
Schedule 191 Energy Efficiency Public Purpose Rider Adjustments for an August 1 , 2009
effective date. We will revisit the Company s proposal following a procedural schedule adopted
herein for investigation and comments.
MODIFIED PROCEDURE
The Commission has preliminarily determined that the public interest regarding the
Company s filings in Case Nos. A VU-09-06 and A VU-09-04 may not require a formal
hearing to consider the issues presented and that issues raised by the Application may be
processed under Modified Procedure, i., by written submission rather than by hearing.
Reference Commission Rules of Procedure, IDAP A 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 IDAP A
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 Nos. A VU-09-06 and A VU-09-04 is Friday, August 28, 2009. Persons desiring a
hearing must specifically request a hearing in their written protest or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the matter on its merits and may
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 based on the written positions before it. Reference IDAP A
31.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
YOU ARE FURTHER NOTIFIED that written comments concerning Case Nos.
A VU-09-06 and A VU-09-04 should be mailed to the Commission and Avista at the
addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
David J. Meyer, Esq.
Vice President and Chief Counsel
for Regulatory & Governmental Affairs
Avista Corporation
PO Box 3727
1411 E. Mission Avenue, MSC-
Spokane, WA 99220-3727
E-mail: david.meyercg?avistacorp.com472 W. Washington Street
Boise, ID 83702-5918
Kelly Norwood
Vice President - State & Federal Regulation
A vista Corporation
PO Box 3727
1411 E. Mission Avenue, MSC- 7
Spokane, W A 99220-3727
E-mail: kel1v.norwoodcg?avistacorp.com
All comments should contain the case caption and case numbers 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 www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case numbers as they appear on the front of this
document. These comments must also be sent to Avista at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Application in Case Nos. A VU-09-
and A VU-09-04 may be viewed at www.puc.idaho.gov by clicking on "File Room" and
Electric Cases" or "Gas Cases " or can be viewed during regular business hours at the Idaho
Public Utilities Commission, 472 W. Washington Street, Boise, Idaho and at the Idaho business
offices of A vista.
ORDER
In consideration of the foregoing and as more particularly described above, the
Commission by Interlocutory Order does hereby authorize implementation of the foregoing
increases to the Company s tariff Schedules 91 (electric) and 191 (natural gas) Energy Efficiency
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE
INTERLOCUTORY ORDER NO. 30870
Public Purpose Rider Adjustments for an effective date of August 1 , 2009. The Company is
directed to file conforming tariffs.
IT IS FURTHER ORDERED and the Commission does hereby adopt the procedural
scheduling set forth above.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
s-t
day of July 2009.~d~/
. KEMPTON, P IDENT
MARSHA H. SMITH, COMMISSIONER
~4~
MACK A. REDFORD, COM ISSIONER
ATTEST:
~~e
ission Secretary
bls/O:A VU-09-06 A VU-09-04 sw
NOTICE OF APPLICATION
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