20120629Application.pdf

Avista Corp. IDAHO- PUL
1411 East Mission P.O. Box 3727 UTILITIES
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
June 28, 2012
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise, Idaho 83720
Dear Ms. Jewell:
4vu-& -/2-03
Attached for filing with the Commission is an original and seven copies of the Company's
Application for proposed revisions to the following tariff sheets, IPUC No. 27:
Second Revision Sheet 190 Canceling
Third Revision Sheet 190A Canceling
Second Revision Sheet 190B Canceling
Fourth Revision Sheet 190C Canceling
Canceling First Revision Sheet 190D
First Revision Sheet 190
Revised Second Revision Sheet 190A
First Revision Sheet 190B
Third Revision Sheet 190C
The purpose of this filing is to revise associated terms and conditions, offered to customers under
Avista Tariff "Schedule 190" (Natural Gas Efficiency Programs). These programs are funded from
Schedule 191 (Energy Efficiency Rider Adjustment) revenues. The Company requests that this filing
be processed under the Commission's Modified Procedure rules.
Enclosed is a "Notice of Tariff Change" which will be posted to the Company's website coincident
with the date of this filing.
Please direct any questions on this matter to Bruce Folsom at [phone] or myself at (509) 495-
4975.
Sincerely,
Lin a Gervais
Manager, Regulatory Policy
State and Federal Regulation
Avista Utilities
509-495-4975
linda.gervaisavistacorp.com
Li
7U!? JUN, 29 AMH:02
DAVID J. MEYER r
VICE PRESIDENT AND CHIEF COUNSEL FOR UTLL OMMS
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA CORPORATION
P.O. BOX 3727
1411 EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone]
FACSIMILE: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. AVU-G-12-03
OF AVISTA CORPORATION TO REVISE )
NATURAL GAS EFFICIENCY PROGRAMS )
SCHEDULE 190 )
APPLICATION OF AVISTA CORPORATION

1 I. INTRODUCTION

2 Avista Corporation, doing business as Avista Utilities (hereinafter Avista or

3 Company), at 1411 East Mission Avenue, Spokane, Washington, respectfully proposes

4 revisions to Schedule 190, "Natural Gas Efficiency Programs." The purpose of this tariff

5 revision is to suspend the Company's natural gas demand-side management (DSM) programs

6
due to new natural gas avoided costs that have been released as part of Avista's Integrated

7 Resource Plan (IRP) process.

8 The Company requests that this filing be processed under the Commission's Modified

9 Procedure rules.

10 Communications in reference to this Application should be addressed to:
11
12
13
14
15
16
17
18
19
20
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC-13
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
Linda Gervais
Manager, Regulatory Policy
Avista Corporation
P.O. Box 3727
1411 E. Mission Avenue, MSC-29
Spokane, WA 99220-3727
Phone: [phone]
[e-mail]
21 II. BACKGROUND
22 The changing natural gas supply picture and resultant lower prices have resulted in
23 the decline of natural gas avoided costs. While this is good news for consumers of natural
24 gas, these lower avoided costs add new challenges to offering a comprehensive natural gas
25 DSM portfolio.
26 Avista identified last fall, as part of its annual DSM Business Planning process, the
27 need to monitor natural gas avoided costs to optimize, and maintain the cost-effectiveness of
28 its natural gas DSM portfolio. This optimization was further analyzed and discussed in a
Application of Avista Corporation Page 1
Case No. AVU-G-12

1 report entitled "Review of Prospects and Strategies for the 2012 Avista Regular Income

2 Natural Gas DSM Portfolio," dated February 2012. The analysis was based on a natural gas

3 avoided cost that was expected to be 25% lower than the existing avoided costs. Further, this

4 analysis concluded that a smaller menu of natural gas programs could and would be fielded

5 later in 2012. This however, changed with the release of avoided natural gas costs that are

6 now approximately 50% lower than the existing avoided costs. The effect of these lower

7 avoided costs is to render the natural gas energy efficiency portfolio programs to not be cost-

8 effective going forward. Avista's natural gas IRP is scheduled for release on August 31,

9
2012; standard practice is to re-file avoided costs thereafter. However, given that the

10
Company is aware of the lower avoided costs, we are opting to immediately begin the phase-

11 out of these programs, subject to existing contractual and outstanding offers of service.

12 II. COST TEST ANALYSIS

13
Avista has scrutinized several scenarios in an attempt to ascertain if any reasonable

14 calculation of the DSM portfolio or modifications to the avoided cost would yield a portfolio

15 that is cost-effective under the Total Resource Cost (TRC) test. The major scenarios

16 included:
17

18 • The addition of a carbon cost adder for 2013-2019 (in addition to the carbon cost that

19 is incorporated into the avoided cost itself for 2020 and beyond);

20 • The inclusion of a natural gas distribution capacity cost value;

21 • The use of an interpretation of the TRC test on a gross (including all program

22 participants) rather than a net (based upon those participants who adopted the

23 measure due utility intervention) basis;

24 • Various alternative categorizations of net-to-gross ratios and realization rates by

25 program; and

26 • Different means of allocating non-incentive utility costs across programs.
27
Application of Avista Corporation Page 2
Case No. AVU-G-12

1
None of the scenarios tested above resulted in a portfolio that was projected to be

2 cost-effective under the TRC. Generally, the most optimistic scenarios led to benefit-to-cost

3 ratios in the low 0.70 range.

4
The Company remains committed to a continual re-evaluation of the prospects for the

5 natural gas DSM portfolio. Should natural gas costs, technologies or delivery methods

6 change in such a manner to allow for cost-effective opportunities in the future, the Company

7 will move to return all or portions of the natural gas DSM portfolio to the Company's overall

8 energy-efficiency strategy.

9
III. PROPOSED TRANSITION OF PROGRAMS

10
Regarding the procedure for suspending these programs, Avista has outstanding

11 contractual obligations and existing rebate offers in the marketplace. The accompanying

12 proposed tariff revision addresses the three natural gas DSM portfolios as follows:

13
Site Specific Programs:

14
Avista will honor all terms and conditions of contracts and agreements that are fully

15 executed prior to September 1, 2012. Natural gas energy efficiency projects, known

16 to Avista prior to September 1, 2012, but without fully executed contracts, will be

17
honored if Avista has already conducted an analysis of a proposed natural gas energy

18 efficiency measure. If the Company has not already conducted an analysis of a

19 proposed natural gas energy efficiency measure, customers seeking incentive funding

20 must submit an overview of the proposed natural gas energy efficiency project to the

21
Company in writing or via email by September 1, 2012. Projects must have material

22 documentation by October 15, 2012 and an energy efficiency agreement must be

23 signed by January 15, 2013.
24

25 Residential and Non-Residential Prescriptive Rebate Programs:

26
Qualifying customers in the Company's Residential and Non-Residential Prescriptive

27 Rebate Programs must send to Avista all required rebate forms and other required

28
documentation postmarked by November 1, 2012 to be eligible for payment. Any

29 requests postmarked after November 1, 2012 will be denied payment.
30

31 Limited Income Programs:

32 All existing 2012 Community Action Partnership contracts with natural gas

33
incentives will be honored. No additional natural gas measures will be funded

34 effective January 1, 2013.
35
Application of Avista Corporation Page 3
Case No. AVU-G-12

1 IV. CUSTOMER NOTIFICATION

2 Notice to the public of the proposed revisions, pursuant to IDAPA 31.21.02.102, will

3 be given simultaneously with the filing of this Application by posting a notice to the

4 Company's Website.

11 'AI Cox, 1tSti[s1X1

6 While low natural gas avoided costs causes natural gas DSM programs to no longer

7 be cost-effective, lower natural gas avoided costs causes the direct use of natural gas to be

8 more cost-effective. Thus, Avista will propose, in a future electric efficiency filing, that

9 incentives for conversion of end-use equipment from electricity to natural gas be increased.

10 This would have multiple customer benefits, including efficiency of fuel use, support of the

11 trade ally network, and keeping the efficiency message in the marketplace.

12 The Company requests a revision to Schedule 190 to suspend natural gas demand-

13 side management (DSM) programs due to new natural gas avoided costs that have been

14 released as part of Avista's Integrated Resource Plan (IRP) process.

15 WHEREFORE Applicant respectfully requests the Commission approve the

16 proposed revisions to Schedule 190 attached to this Application, and effective for service

17 rendered on and after September 1, 2012, with this application being processed under

18 Modified Procedure.
19
20
21
22
23
24
Application of Avista Corporation Page 4
Case No. AVU-G-12
DATED at Spokane, Washington, this 28th day of June, 2012.
2
3 AVISTA CORPORATION
4
5
6 By 14 'A4
7 David J. Meyer
8 Vice President and Chief Counsel for
9 Regulatory and Governmental Affairs
Application of Avista Corporation Page 5
Case No. AVU-G-12
STATE OF WASHINGTON)
ss
County of Spokane )
Kelly 0. Norwood, being duly sworn, on oath deposes and says:
That he is the Vice President, State and Federal Regulation of Avista Corporation;
That he has read the foregoing Application, knows the contents thereof, and believes the
same to be true.
'7r 6./t/,kfOV)
Kelly 0. Norwood
Subscribed and sworn to before me this 28th day of June, 2012.
%II 111111,
L
:0 .0 NOTARY
\ PUBUC :
OP
, leg,
Notary Public in and for the State
Washington, residing in Spokane
Application of Avista Corporation
Case No. AVU-G-12
Second Revision Sheet 190A
Canceling
I.P.U.C. No. 27 First Revision Sheet 190A
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 190
NATURAL GAS EFFICIENCY PROGRAMS
IDAHO
1. AVAILABILITY
Effective Seotember 1. 2012. natural aas efficiency oroarams, incentives and
rebates are available only for projects that meet the following conditions:
A. Site Specific Programs:
1)Customer has an existing contract with Avista - the Company will honor
all terms and conditions of contracts and agreements that were fully
executed prior to September 1, 2012. Such contracts and agreements
must be signed by both the Company and the customer.
2)Natural gas energy efficiency projects, proposed by the customer to
Avista prior to September 1, 2012, but without fully executed contracts,
will be honored by the Company under the following conditions:
i.The Company has already conducted an analysis of a proposed
natural gas energy efficiency measure. If the Company has not
already conducted an analysis of a proposed natural gas energy
efficiency measure, customers seeking incentive funding will
submit on overview of their proposed natural gas energy efficiency
project to the Company in writing or via email by September 1,
2012.
ii.All material documentation required for Avista to conduct an
analysis to determine energy efficiency savings and potential
incentive funding must be received by the Company by October
15, 2012. The Company has the sole discretion to determine if
such documentation is sufficient for analysis, and if the
documentation is not sufficient, will reject the project from
incentive funding consideration.
iii.Customers who wish to proceed with any natural gas energy
efficiency measure which has been evaluated by the Company
subject to the terms and conditions of this tariff must sign an
energy efficiency agreement with the Company by January 15,
2013.
iv.Customers must complete any contracted projects by January 15,
2014, unless otherwise agreed to in certain contracts executed
prior to September 1. 2012
B. Residential and Non-Residential Prescriptive Rebate Programs: Qualifying
customers in the Company's Residential and Non-Residential Prescriptive
Rebate Programs must send to Avista all required rebate forms and other
required documentation postmarked by November 1, 2012 to be eligible for
Payment. Any requests received after November 1, 2012 will not be eligible for
Payment.
.r..4 I.,, • A ,ie,+,
4c€t-Third_Revision Sheet 190A
Canceling
I.P.U.C. No.27 Orioin3l Revised Second Revision Sheet 190A 190
AVISTA CORPORATION
dibla Avista Utilities
SCHEDULE 190— continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
C. Limited Income Programs: All existing 2012 Community Action Partnership
contracts with natural gas incentives will be honored. No additional natural gas
measures will be funded effective January 1, 2013.
The services described herein are available to qualifying residential, commercial,
and industrial, retail natural gas distribution customers of Avista Corporation for the
purpose of promoting the efficient use of natural gas. Customers receiving natural gas
distribution service provided under special contract and/or customers receiving natural
gas services not specified under Tariff Schedule 191 (Natural Gas Efficiency Rider
Adjustment) are not eligible for services contained in this schedule unless specifically
stated in such contract or other service agreement. The Company may provide partial
funding for the installation of natural gas efficiency measures and may provide other
services to customers for the purpose of identification and implementation of cost
effective natural gas efficiency measures as described in this schedule. Facilities-based
services are available to owners of facilities, and also may be provided to tenants who
have obtained appropriate owner consent.
Assistance provided under this schedule is limited to end uses where natural gas is
or would be the energy source and to measures which increase the efficient use of
natural gas. Assistance may take the form of monetary incentives or non monetary
inoentives, as further defined within this tariff. The acquisition of resources is cost
effective as defined by a Total Resource Cost test (TRC) as a portfolio. Customer
participation under this schedule shall be based on eligibility requirements contained
herein.
2 ELIGIBLE CUSTOMER SEGMENTS
All customers in all customer segments to whom this tariff is available are eligible for
participation in natural gas efficiency programs developed in compliance with this tariff.
The broad availability of this tariff does not preclude the Company from targeting
measures, markets and customer segments as part of an overall effort to increase the
cost effectiveness and access to the benefits of natural gas efficiency.
As,.ê., I
Second Revision Sheet 190A
Canceling
I.P.U.C. No.27 First Revision Sheet 190A 190A
AVISTA CORPORATION
d/bla Avista Utilities
SCHEDULE 190— continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
3.MEASURES
Only natural gas efficiency measures with verifiable energy savings are eligible for
assistance. Measure eligibility may not necessarily apply to all customer segments. Final
determination of applicable measures will be made by the Company.
Market transformation ventures will be considered eligible for funding to the extent
that they improve the adoption of natural gas efficiency measures that are not fully
accepted in the marketplace. These market transformation efforts may include efforts
funded through regional alliancoc or other similar opportunities.
4.FUNDING AND NONMONETARY ASSISTANCE
4.1 Funding
The incentives specified below are provided by the Company to promote the best
use of natural gas resources. Incentives are based upon the simple payback of the
measure prior to the application of an incentive, as calculated by Company staff and
based upon standardized measure cost(s). These incentive tiers apply to measures with
energy savings at the current energy rates lasting 10 years or longer that meet or
exceed current manufacturing and energy codes and/or industry standard practices that
are applicable to the project. Simple payback is defined as the capital cost of the project
divided by the energy savings at the current energy rates per year. Capital cost included
in the calculation is the portion associated with the energy saving portion of the project
only. The incentives for qualifying projects as detailed in Section 1 (Availability) shall be
as follows:
Measures Simple Pay-Back Period Incentive Level
(dollarslfirst year therm saved)
(Minimum measure life of 10
years)
Natural Gas Efficiency 1 to under 2 years 2.00
2 to under 4 years 2.50
4 t under 6 years 3.00
6 to under 13 years 3.50
13 years and Over 0.00
1, 2010 Effective January 1, 2011
Advice No.
by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
Second Revision Sheet 190A
Canceling
I.P.U.C. No.27 First Revision Sheet 190A 190A
AVISTA CORPORATION
d/b/a Avista Utilities
Incentives in which the tier structure applies will be capped at 50% of the incremental
project cost with the exception of the following that may be capped at a maximum of
100% of the measure cost:
Issued November 1, 2010 uary 1,
Advice No.
Issued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
F4&t-Second_Revision Sheet 190B
Canceling
l.P.U.C. No.27 First Revision Original Sheet 190B
AVISTA CORPORATION
d/b/a Avista Utilities

4.1.1 Energy efficiency programs delivered by community action agencies
contracted by the Company to serve Limited Income or vulnerable
customer segments including agency administrative fees and health
and human safety measures;

4.1.2 Low-cost natural gas efficiency measures with demonstrable energy
savings (e.g. rooftop unit service);
issued September 30, 2008 Effective October 1, 2008
Advice No. 08 01 G
Issued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
econd Revision Sheet 190B
Canceling
I.P.U.C. No.27 First Revision Original Sheet 190B
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
4.1.2
4.1.3 Programs or services supporting or enhancing local, regional or
national natural gas efficiency market transformation efforts.
Avista Corporation will actively pursue natural gas efficiency opportunities that may
not fit within the prescribed services and simple pay-back periods described in this tariff.
In these circumstances the customer and Avista Corporation will enter into a site specific
services agreement.
lTi fl v-i vz.-iu,j.y-
UtflIWIJt ThUJ I EI1UM
WI TJI!WI1I!I I IIJ
By Kelly Norwood, Vice President, State and Federal Regulation
Second Revision Sheet 190C
Canceling
I.P.U.C. No.27 First Sheet 190C 190C
AVISTA CORPORATION
dlb/a Avista Utilities
SCHEDULE 180 continued
NATURAL GAS EFFICIENCY PROGRAMS IDAHO
4.2.4. Technical Assistance financial or other analysis may consist of engineering,
provided to the customer by or under the direction of, Avista Corporation
staff. This may take the form of design reviews, product demonstrations,
third party bid evaluations, facility audits, measurement and evaluation
analysis or other forms technical that addresses the cost

of assistance
effectiveness, technical characteristics of customer applicability or end use
alternatives.
5.BUDGET & REPORTING
The natural gas efficiency programs defined within this tariff will be funded by
surcharges levied within Schedule 191. The Company will manage these programs to
obtain resources that are cost-effective from a Total Resource Cost perspective and
achievable through utility intervention. Schedule 191 will be reviewed annually and
revised as necessary to provide adequate funding for natural gas efficiency efforts.
6.OPTIONAL HIGH ANNUAL LOAD FACTOR LARGE GENERAL SERVICE
PROGRAM

Customers receiving natural Schedules 131 and 132 with cost gas service under
effective natural gas efficiency projects aro eligible to respond to the Company's
Request for Proposals (RFP). The RFP will be developed jointly with
representative Customers and the Northwest Industrial Gas Users (NWIGU). The RFP
will be available for release no later than April 1, 2001 and annually thereafter.
Natural savings are to be calculated standard engineering and gas using practices,
with operations schedules documented by the Customer. The Company will review
natural gas savings calculations, and recervec the right to modify energy savings
estimates. Actual savings may be trued based installation energy use up on post
monitoring. Further details will be provided in the RFP.
Funding is available directly to the Customer customer verification of upon receipt of
completed installation, The Company will fund using the cost cost effective projects,
effectiveness standards to determine the savings, such that the value of natural gas
Company's incentive the Total Resource Cost teet Project satisfies (TRC) as a portfolio.
funding willbe up to will .. from the Schedule of conservation revenues collected
131 and 12__;z ustomers under Schedule 191 this Tariff the for which this of over period
Schedule is in effect, the Company's to this Annual minus cost administer program.
incentive amounts for this be to the Company's annual budget for

program will subject
energy efficiency Further be in the RFP. The programs. provisions will provided
Company, at its option, may inspect installations prior to payments of the funding.
Issued September 30, 2008 Effective October 1, 2008
Advice No. 08-01-G
Issued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
4st-Fourth_Revision Sheet 4O190C
Canceling
LP.U.C. No.27 Original Third Revision Sheet 1-QQ1.0 190D
AVISTA CORPORATION
d/b/a Avista Utilities
! fflJ )) WL1IJ *L114U LflI fl1!W tLJf UJJJrILI I1j $Jr]j*j]
7 . General Rules and Provisions
Service under this schedule is subject to the General Rules and Provisions
contained in this tariff and is limited to facilities receiving natural gas service from the
Company.
All installations and equipment must comply with all local code and permit
requirements applicable and be properly inspected, if required, by appropriate
agencies.
The Company may establish specifications regarding any natural gas efficiency
measures and modifications to be effected under this schedule and may conduct
inspections to insure that such specifications are met.
I..., I
Second Revision Sheet 190
Canceling
I P U C No 27 First Revision Sheet 190
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 190
NATURAL GAS EFFICIENCY PROGRAMS
IDAHO
1. AVAILABILITY
Effective September 1, 2012, natural gas efficiency programs, incentives and
rebates are available only for projects that meet the following conditions:
A. Site Specific Programs:
1)Customer has an existing contract with Avista - the Company will honor
all terms and conditions of contracts and agreements that were fully
executed prior to September 1, 2012. Such contracts and agreements
must be signed by both the Company and the customer.
2)Natural gas energy efficiency projects, proposed by the customer to
Avista prior to September 1, 2012, but without fully executed contracts,
will be honored by the Company under the following conditions:
i.The Company has already conducted an analysis of a proposed
natural gas energy efficiency measure. If the company has not
already conducted an analysis of a proposed natural gas energy
efficiency measure, customers seeking incentive funding will
submit on overview of their proposed natural gas energy efficiency
project to the Company in writing or via email by September 1,
2012.
ii.All material documentation required for Avista to conduct an
analysis to determine energy efficiency savings and potential
incentive funding must be received by the Company by October
15, 2012. The Company has the sole discretion to determine if
such documentation is sufficient for analysis, and if the
documentation is not sufficient, will reject the project from
incentive funding consideration.
iii.Customers who wish to proceed with any natural gas energy
efficiency measure which has been evaluated by the Company
subject to the terms and conditions of this tariff must sign an
energy efficiency agreement with the Company by January 15,
2013.
iv.Customers must complete any contracted projects by January 15,
2014, unless otherwise agreed to in certain contracts executed
prior to September 1, 2012
B. Residential and Non-Residential Prescriptive Rebate Programs: Qualifying
customers in the Company's Residential and Non-Residential Prescriptive
Rebate Programs must send to Avista all required rebate forms and other
required documentation postmarked by November 1, 2012 to be eligible for
payment. Any requests received after November 1, 2012 will not be eligible for
payment.
By .. f Kelly Norwood, Vice-President, State and Federal Regulation
: t/Øt
Third Revision Sheet 190A
Canceling
I.P.U.C. No.27 Revised Second Revision Sheet 190A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
C. Limited Income Programs: All existing 201.2 Community Action Partnership
contracts with natural gas incentives will be honored. No additional natural gas
measures will be funded effective January 1, 2013.
The services described herein are available to qualifying residential, commercial,
and industrial, retail natural gas distribution customers of Avista Corporation for the
purpose of promoting the efficient use of natural gas. Customers receiving natural gas
distribution service provided under special contract and/or customers receiving natural
gas services not specified under Tariff Schedule 191 (Natural Gas Efficiency Rider
Adjustment) are not eligible for services contained in this schedule unless specifically
stated in such contract or other service agreement. The Company may provide partial
funding for the installation of natural gas efficiency measures and may provide other
services to customers for the purpose of identification and implementation of cost
effective natural gas efficiency measures as described in this schedule. Facilities-based
services are available to owners of facilities, and also may be provided to tenants who
have obtained appropriate owner consent.
Assistance provided under this schedule is limited to end uses where natural gas is
or would be the energy source and to measures which increase the efficient use of
natural gas. Customer participation under this schedule shall be based on eligibility
requirements contained herein.
2. ELIGIBLE CUSTOMER SEGMENTS
All customers in all customer segments to whom this tariff is available are eligible for
participation in natural gas efficiency programs developed in compliance with this tariff.
June
By .. Kelly Norwood, Vice-President, State and Federal Regulation A4
Second Revision Sheet 190B
LP.U.C. No.27 First
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 -continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
3.MEASURES
Only natural gas efficiency measures with verifiable energy savings are eligible for
assistance. Measure eligibility may not necessarily apply to all customer segments. Final
determination of applicable measures will be made by the Company.
4.FUNDING AND NONMONETARY ASSISTANCE
4.1 Funding
The incentives specified below are provided by the Company to promote the best
use of natural gas resources. Incentives are based upon the simple payback of the
measure prior to the application of an incentive, as calculated by Company , staff and
based upon standardized measure cost(s). These incentive tiers apply to measures with
energy savings at the current energy rates lasting 10 years or longer that meet or
exceed current manufacturing and energy codes and/or industry standard practices that
are applicable to the project. Simple payback is defined as the capital cost of the project
divided by the energy savings at the current energy rates per year. Capital cost included
in the calculation is the portion associated with the energy saving portion of the project
only. The incentives for qualifying projects as detailed in Section 1 (Availability) shall be
as follows:
Measures Simple Pay-Back Period Incentive Level
(dollars/first year therm saved)
(Minimum measure life of 10
years
Natural Gas Efficiency 1 to under 2 years 2.00
2 to under 4 years 2.50
4 to under 6 years 3.00
6 to under 13 years 3.50
13 years and Over 0.00
Incentives in which the tier structure applies will be capped at 50% of the incremental
project cost with the exception of the following that may be capped at a maximum of
100% of the measure cost:

4.1.1 Energy efficiency programs delivered by community action agencies
contracted by the Company to serve Limited Income or vulnerable
customer segments including agency administrative fees and health
and human safety measures;

4.1.2 Low-cost natural gas efficiency measures with demonstrable energy
savings (e.g. rooftop unit service);
vista Utilities
Norvod, Vice President, State and Federal Regulation
,tJ,- :
Fourth Revision Sheet 190C
Canceling
I P U C No 27 Third Revision Sheet 190C
AVISTA CORPORATION
dibla Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
4.1.3 Programs or services supporting or enhancing local, regional or
national natural gas efficiency market transformation efforts.
Avista Corporation will actively pursue natural gas efficiency opportunities that may
not fit within the prescribed services and simple pay-back periods described in this tariff.
In these circumstances the customer and Avista Corporation will enter into a site specific
services agreement.
5.BUDGET & REPORTING
The natural gas efficiency programs defined within this tariff will be funded by
surcharges levied within Schedule 191. The Company will manage these programs to
obtain resources that are cost-effective from a Total Resource Cost perspective and
achievable through utility intervention. Schedule 191 will be reviewed annually and
revised as necessary to provide adequate funding for natural gas efficiency efforts.
6.General Rules and Provisions
Service under this schedule is subject to the General Rules and Provisions
contained in this tariff and is limited to facilities receiving natural gas service from the
Company.
All installations and equipment must comply with all local code and permit
requirements applicable and be properly inspected, if required, by appropriate
agencies.
The Company may establish specifications regarding any natural gas efficiency
measures and modifications to be effected under this schedule and may conduct
inspections to insure that such specifications are met.
By w- / Kelly Norwood, Vice-President, State and Federal Regulation
AVISTA CORPORATION
dba Avista Utilities
NOTICE OF TARIFF CHANGE
(Idaho Natural Gas Service)
Notice is hereby given that the "Sheets" listed below of Tariffs I.P.U.C. No. 27, covering natural
gas service, have been filed with the Idaho Public Utilities Commission (IPUC) in Idaho.
Second Revision Sheet 190 Canceling First Revision Sheet 190
Third Revision Sheet 190A Canceling Revised Second Revision Sheet 190A
Second Revision Sheet 190B Canceling First Revision Sheet 190B
Fourth Revision Sheet 190C Canceling Third Revision Sheet 190C
Canceling First Revision Sheet 190D
The purpose of this filing is to revise associated terms and conditions, offered to customers under
Avista Tariff "Schedule 190" (Natural Gas Efficiency Programs). These programs are funded from
Schedule 191 (Energy Efficiency Rider Adjustment) revenues.
Copies of the proposed tariff changes are available for inspection in the Company's offices and on
the Company website at http://www.avistautilities.comlservices/energypricing/Pages/default.aspx .
The Company will provide notice to customers with the first bill after the change becomes effective.
Issue Date: June 28, 2012
Keep Posted Until: September 1, 2012