20130930Application.pdf

Avista Corp.
141 1 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 8OO-727-917O
September 27,2013
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
Dear Ms. Jewell:
Re: Avista Application No. AVU-E-13 -frand AVU-G-I3 -_qL
Dear Ms. Jewell:
Enclosed for filing with the Commission is an original and seven (7) copies of Avista
Corporation, doing business as Avista Utilities application, supporting testimony and exhibits
requesting that the Commission find that the Company's electric and natural gas energy
efficiency expenditures from January l, 2010 through December 31, 2012 were prudently
incurred.
The Confidential Appendices to Mr. Chris Drake's Exhibit No. 2, Schedule 2 has been placed in
a separate sealed envelope.
Please direct any questions on this matter to Bruce Folsom, Director, Energy Effrciency at (509)
495-8706 or myself at [phone].
Sincerely,
Z,r"j.,rr4rr*rrb
Mandger, Regulatory Policy
Avista Utilities
linda. gervais@avistacorp. com
sa9-495-4975
Enclosures
I DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY AND GOVERNMENTAL AFFAIRS4 AVISTA CORPORATION5 P.O. BOX37276 I4I I EAST MISSION AVENUE7 SPOKANE, WASHINGTON 99220-37278 TELEPHONE: (s09) 49s-43169 [e-mail]
! . ^- i1 I
ir.-- -j -'
?iltr sf P 3c
ii'rrl"ill"lr:., ..
Ll'i !*: I 7
:,ri.;...:
l0
ll
t2
l3
t4
l5
t6
t7
l8
t9
20
BEFORE THE IDAHO
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR A
FINDING OF PRUDENCE FOR 2OIO.2OI2
EXPENDITURES ASSOCIATED WITH
PROVIDING ELECTRIC AND NATURAL GAS
ENERGY EFFICIENCY SERVICE IN THE
STATE OF IDAHO
PUBLIC UTILITIES COMMISSION
CASE NO. AVU-E$- O q
CASE NO. AVU-C-|3- 6L
2t
22
23
24
I. INTRODUCTION
Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
at l4ll East Mission Avenue, Spokane, Washington, respectfully requests that the Commission
issue a finding that Avista's electric and natural gas energy efficiency expenditures from January
1,2010 through December 31,2012 were prudently incurred.
25 Beginning in 1995, Avista has requested a finding of prudence for prior period cost
26 recovery of energy efficiency expenditures at the time of general rate case filings. This process
27 occurred as an outcome of how Avista's Demand Side Management (DSM) Tariff Rider was
28 established. As the country's first system benefit charge for conservation, several "legacy"
29 protocols were adopted, including the scope and timing of cost-recovery. However, over time,
30 reviewing energy efficiency issues in general rate cases did not provide the level of focus desired
AVISTA APPLICATION PAGE I
I by parties to these proceedings. Discussions with Commission Staff and Avista's Energy
2 Efficiency Advisory Group have led to requesting a finding of prudence, and examination of
3 associated issues, in a stand-alone case as presented herein.
4 The Company requests that this filing be processed under the Commission's Modified
5 Procedure rules.
Communications in reference to this Application should be addressed to:
7
8
9
l0
11
t2
l3
t4
15
t6
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Governmental Af[airs
Avista Corporation
P.O.Box3727
l4ll E. Mission Avenue, MSC-13
Spokane, WA 99220-3727
Phone: [phone]
david.meyer@ avistacorp. com
Linda Gervais
Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
141I E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
linda. eervais@avistacorp. com
t7
18
t9
20
2t
22
23
24
II. BACKGROUNI)
The Company's programs are based on providing a financial incentive, or "rebate," for
cost-effective efficiency measures with a simple payback of greater than one year and up to
thirteen years. This includes approximately 300 measures that are packaged into about 30
progftrms for customer convenience.
Avista's residential programs include high efficiency equipment, electric to natural gas
conversions, Compact Fluorescent Lamps (CFLs), "second" refrigerator recycling,
weatherization, as well as providing educational assistance through various community events.
For non-residential customers, in addition to prescriptive (or "standard offer") progftrms,
Avista oflers site-specific (or customized) services. The site-specific program provides
25
26
AVISTA APPLICATION PAGE 2
I incentives on any cost-effective commercial and industrial energy efficiency measure with a
2 simple financial payback exceeding one year, up to thirteen years. This is implemented through
3 site analyses, customized diagnoses, and incentives determined for savings generated specific to
4 customers'premises.
5 In addition to Avista's prescriptive and site-specific programs, the Company helps fund
6 the activities of the Northwest Energy Efficiency Alliance (NEEA). NEEA focuses on using a
7 regional approach to obtain electric efficiency through the transformation of markets for
8 efficiency measures and services. These programs bring resource acquisition opportunities to
9 Avista that would otherwise be either unachievable or more costly in the absence of regional
l0 cooperation.
ll The Company provided approximately $700,000 for low-income weathenzationin2012
12 and an additional $50,000 for conservation education in Idaho. This program is administered by
13 the local community action agencies in our Idaho service territory.
14 The Company has regularly convened stakeholder meetings to gain input from customer
15 representatives, Commission staff members, and individuals from the environmental
16 communities. In these stakeholder meetings the Company's program offerings are reviewed as
17 well as the underlying cost-effectiveness tests and results. The Company continues to appreciate
18 the time and input provided by Avista's stakeholders.
19 III. TARGETS AND RESULTS
20 The results of Avista's energy efficiency programs continue to exceed the targets
2l established as part of this IRP process. The Company's expenditure of tariff rider revenue has
22 been reasonable and prudent. A portfolio of programs covering all customer classes has been
23 offered with total savings of over 109,100 MWh and 950,822 therms during January l, 2010
AVISTA APPLICATION PAGE 3
I through December 31, 2012. This represents 190% of the Company's IRP target of 57,289
2 MWh for this period. A l3-year levelized total resource cost per saved megawatt hour of $36.55
3 has been achieved. The 2l year levelized total resource cost per saved therm has averaged $1.13
4 a therm.
5 The Tariff Rider funded programs have been very successful. Participating customers
6 have benefited through lower bills. Non-participating customers have benefited from the
7 Company having acquired lower cost resources as well as maintaining the energy efficiency
8 message and infrastructure for the benefit of our service territory.
9 IV. COMPANY WITNESS INTRODUCTION
10 Company witness Mr. Bruce Folsom provides an overview of the Company's recent
I I Idaho DSM portfolio results and expenditures for electric and natural gas efficiency programs.
12 He also provides documentation demonstrating that Avista's expenditures for electric and natural
13 gas efficiency programs have been prudently incurred. More specifically, he addresses Avista's
14 involvement with the Northwest Energy Efficiency Alliance (NEEA), the Company's proposal in
15 a concurrently-filed cas"' for university research and development, the status of the Company's
16 suspended natural gas DSM programs, overall evaluation by Avista's third-party contractor
17 ("Cadmus"), and opportunities presented for stakeholder involvement.
18 Company witness Mr. Chris Drake describes Avista's energy efficiency program
19 offerings available to Idaho customers and program management perspectives. Mr. Drake also
20 responds to Evaluation, Measurement and Verification (EM&V) findings and Cadmus
2l recommendations specific to implementation issues.
22 Lastly, Company witness Ms. Lori Hermanson addresses the cost-effectiveness of Idaho
I Case No. AVU-E-13-08 "Application to Fund Selected Research and Development Efficiency Projects."
AVISTA APPLICATION PAGE 4
I
2
DSM progftrms offered in20l0-2012, and sponsors evaluation studies.
V. CONCLUSION
WHEREFORE, Applicant respectfully requests the Commission issue its Order
finding that the Company's electric and natural gas energy efficiency expenditures from January
l, 2010 through December 31, 2012 were prudently incurred, with this application being
processed under Modified Procedure.
DATED at Spokane, Washington, this 2Tstday of September,2}l3.
AVISTA CORPORATION
Vice President and Chief Counsel of
Regulatory & Governmental Affairs
J
4
5
6
7
8
9
l0
ll
t2
AVISTA APPLICATION PAGE 5
I
2
J
4
5
6
7
8
9
l0ll
t2
l3
t4
15
t6
t7
18
t9
20
2t
22
23
24
25
26
VERIFICATION
STATE OF WASHINGTON )
)
County of Spokane )
David J. Meyer, being fust duly sworn, on oath deposes and says: that he is the
Vice President and Chief Counsel of Regulatory & Govemmental Affairs for Avista Utilities;
that he has read the above and foregoing Application, knows the contents thereof, and believes
the same to be true.
SIGNED AND SWORN to before me this 27't day of September 20l3,by David Meyer.
$,:::k"4i,;N Commission Expires:
AVISTA APPLICATION PAGE 6