20100309notice_of_application_order_no_31017.pdf

Office of the Secretary
Service Date
March 9, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR
AUTHORITY TO INCREASE ITS
SCHEDULE 191 - ENERGY EFFICIENCY
(PUBLIC PURPOSE) RIDER ADJUSTMENT
NOTICE OF APPLICATION
CASE NO. AVU-10-
ORDER NO. 31017
Gas Demand-Side Management (DSM)
YOU ARE HEREBY NOTIFIED that on February 16, 2010, Avista Corporation dba
Avista Utilities (Avista; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) requesting a $1.6 million (2.6%) increase in the Company s natural
gas Schedule 191 - Energy Efficiency (Public Purpose) Rider Adjustment.The Rider
Adjustment is designed to recover costs incurred by the Company associated with providing
natural gas energy efficiency services and programs to retail customers taking service under
Schedules 101 , 111 & 112 and 131 & 132. The proposed effective date is April 1 , 2010.
As reflected in the Company s Application, the proposed increase is necessary to
continue to fund ongoing natural gas efficiency programs consistent with A vista s most recent
Natural Gas Integrated Resource Plan (IRP). It will also serve to amortize a deficiency balance
($1 375,435 end of January 2010) resulting from the Company s response to higher than
expected customer demand for services. The proposed increase in revenues for DSM will not
increase or decrease the earnings of the Company. The proposed rate will have an average
monthly bill impact to residential customers using 66 therms of $1.52.
The 2009 natural gas savings target for Idaho and Washington was 1.6 million
therms. Over 2 million therms were saved. Customers look to the Company s DSM programs
for assistance in responding to increased natural gas prices. Existing and planned programmatic
expenditures by the Company are exceeding tariff rider revenues.
Schedules 91 (electric) and 191 (gas) public purpose funds support DSM programs
described in Company tariff Schedules 90 and 190. These programs include but are not limited
to the following measures:
NOTICE OF APPLICATION
ORDER NO. 31017
. Appliance Measures
. Compressed Air Measures
HV AC Measures
. Industrial Measures
. Lighting Measures
. Maintenance Measures
. Motors Measures
. Renewable Technologies
. Northwest Energy Efficiency Alliance Participation
. Shell Measures
. Sustainable Building Measures
The Company's programs are based on providing a financial incentive or rebate'for cost-effective
efficiency measures installed by customers with a simple payback of greater than one year. This
includes more than 300 measures packaged into over 30 programs.
A vista reports that it 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 A vistas IRP effort and is contained within the identified acquisition goal.
A vistas 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 educational assistance provided through various community events.
In addition to prescriptive programs, A vista offers "site-specific' programs for non-
residential customers. 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. Commercial and industrial programs available to A vista customers include:
. Energy Smart Commercial Refrigeration
. Lighting and Controls
. Commercial Food Service Equipment
. Building Retro-commissioning
. Premium Efficiency Motors
. Power Management for Personal Computer (PC) Networks
NOTICE OF APPLICA nON
ORDER NO. 31017
. 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 A vistas 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. Historically, Avista has received approximately
1 aMW of savings in its service territory from NEEA programs.
The Company provided $1.9 million for low-income weatherization in 2009 in Idaho
and Washington. Effective October 1 , 2008, in Order No. 30647 in Case Nos. A VU-09-
and A VU-09-, $465 000 was directed to Idaho electric and natural gas low-income
customers and $25 000 was provided to Idaho (CAP) agencies for the purpose of underwriting
agency personnel assisting in low-income outreach and conservation education. The low-income
weatherization portfolio of the Company represents approximately 6.3% of its total energy
efficiency budget excluding utility support.
A vista reports that it is in the process of enhancing its evaluation, measurement and
verification (EM&V) protocols. EM&V includes "impact
" "
process
" "
cost " and "market"
analyses. The Company plans to initiate a collaborative beginning in March 2010 to review
EM&V issues and will provide a report to the Commission on or before September 1 , 2010.
That report will describe A vistas enhanced EM& V protocols.
As reflected in its Application, the Company's energy efficiency programs are being
used by its customers at unprecedented levels. Customer participation continues to exceed
current funding. The Company's proposed Schedule 191 increase trues-up its natural gas tariff
rider to a level to meet customer demand and reduce existing negative balances, while providing
funding for future energy efficiency programs. Energy efficiency, the Company contends
remains the lowest cost new resource and all customers benefit by its acquisition.
NOTICE OF APPLICA nON
ORDER NO. 31017
The energy charges of the individual natural gas rate schedules under the Company
Application are to be increased by the following amounts:
Schedule 101
(General Service)
Schedules 111 & 112
(Large General Service)
Schedules 131 & 132
(Interruptible Service)
Existing Pro osed
$0.03458 $0.05762 per therm
$0.03045 $0.05038 per therm
$0.02552 $0.04020 per therm
Electric DSM
Current projections of the Company indicate that the existing electric energy
efficiency tariff rider Schedule 91 may lead to a small negative balance of approximately
$600 000 at the close of 20 I 0 based upon the current budget. This number, the Company
contends, is minor relative to the potential variation in customer demand caused by weather and
other factors beyond the Company s control. Therefore, Avista is proposing to retain the
existing electric Schedule 91 tariff rider rates. A vista s 2009 local energy efficiency savings
were over 82 million kilowatt hours (kWh) (approximately 9.4 aMW) or 143% of the
Company s IRP non-regional efficiency target goal for Idaho and Washington in 2009 (57.
million kWh). As of the close of January 2010, Avista s electric DSM tariff rider balance for
Idaho was a negative $2,417 322.
After reviewing the Application in Case No. A VU-lO-, the Commission makes
the following findings of fact and conclusions oflaw and enters its Order as follows:
FINDINGS OF FACT
A vista Corporation dba A vista Utilities has submitted a proposed increase in its
Schedule 191 - Energy Efficiency (Public Purpose) Rider for natural gas service in Idaho and
has requested an April 1 , 2010 effective date.
The Commission will be unable to consider the Company s Application before the
proposed effective date of April 1 , 2010, because of other demands on the Commission s time
and the time of its Staff. The Application is of sufficient importance to require the
Commission s investigation of the reasonableness of the proposed increase.
NOTICE OF APPLICATION
ORDER NO. 31017
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over A vista Corporation dba
Avista Utilities and its Application in Case No. A VU-lO-02 pursuant to Idaho Code, Title 61
and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has authority under Idaho Code ~~ 61-622 and 61-623 to suspend
the rates which are the subject of this Application for a period of thirty (30) days plus five (5)
months from the proposed effective date of April 1 , 2010.
It is necessary to suspend the proposed rates for a period of thirty (30) days plus five
(5) months from April 1 , 2010 , to allow the Commission sufficient time for Commission Staff to
complete its investigation and to consider and determine the evidence and issues presented in this
Application.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED that the proposed increase in the Company s natural gas Schedule 191 -
Energy Efficiency (Public Purpose) Rider in Case No. AVU-10-02 should be, and hereby is
suspended for a period of thirty (30) days plus five (5) months from April 1 , 2010, or until such
earlier time as the Commission enters an Order accepting, rejecting or modifying the Application
in this matter.
NOTICE OF APPLICATION
ORDER NO. 31017
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of March 2010.
. KEMPTON
, ~
PRES ENT
tJ~
MARSHA H. SMITH, COMMISSIONER
~~
S1h
MACK A. REDFORD, COMMISSIONER
ATTEST:
$p~~
Je D. Jewel
Commission Secretary
bls/O:A VU-I 0-
NOTICE OF APPLICATION
ORDER NO. 31017