20131002WACOG Report.pdf

Avista Corp.
1411 East Mission P.O.Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
VIA - Electronic Mail
October 2,2013
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
Statehouse Mail
W. 472 Washington Street
Boise,Idaho 83720
Re: Case No. AVU-G-12-03 and AVU-G-12-O6
Dear Ms. Jewell:
Pursuant to Commission Order No. 32650, Avista Corporation, doing business as Avista
Utilities (hereinafter Avista or Company), respectfully provides an update to the Commission on
the Company's weighted average cost of gas (WACOG) as it relates to its natural gas energy
efficiency programs.
Avista compared the average of the two most recent quarterly WACOG with the
WACOG at the time of the suspension of the Company's Idatro natural gas (Schedule 190)
efficiency programsl. This is used as an indicator for when natural gas avoided costs may reach
a level where natural gas demand side management (DSM) might be offered in Idatro cost-
effectively and that a deeper discussion with the Company's Energy Efficiency Advisory Group
may be warranted.
The current average of the two most recent quarterly WACOG, $0.36715 per therm, is
approximately 957o of WACOG prevailing at the time of the suspension of the natural gas DSM
portfolio. Based on initial analysis of the natural gas portfolio, Avista believes that when the
I Effective October l,2Ol2.
two-quarter average WACOG reaches l50Vo of the prevailing WACOG at the time of suspension
of Idaho Schedule 190, it would be an appropriate time for further discussion with the
Company's Energy Efficiency Advisory Group. Avista will continue to monitor the WACOG
and appropriately update the Commission.
Please direct any questions on this matter to Bruce Folsom, Director, Energy Efficiency
at [phone] or myself at [phone].
Sincerely,
ltlLindafremittll
Linda Gervais
Manager, Regulatory Policy
Avista Utilities
509-495-4975
I inda. gervai s @ avistacorp.com
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