20151028Application.pdf

Avista Corp.
1411 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
October 26,2015
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, ID 83720-0074
Dear Ms. Jewell:
Re: Avista Application No. AVU-G-l5 -_0 9
Dear Ms. Jewell:
Attached for filing with the Commission is an original and seven copies of the Company's
Application for proposed revisions to the following tariffsheets, IPUC No. 27:
Third Revision Sheet 190 Canceling Second Revision Sheet 190
Fourth Revision Sheet l90A Canceling Third Revision Sheet l90A
Third Revision Sheet l90B Canceling Second Revision Sheet l90B
Canceling Fourth Revision Sheet l90C
Eighth Revision Sheet 191 Canceling Seventh Revision Sheet l9l
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 progftrms are funded
from Schedule l9l (Energy Efficiency Rider Adjustment) revenues. The Company requests that
this filing be processed under the Commission's Modified Procedure rules.
Please direct any questions on this matter to Dan Johnson, Director, Energy Efficiency (509)
495-2807 or myself at [phone].
Sincerely,
Manager, Regulatory Policy
Avista Utilities
linda. [e-mail]
509-49s-4975
Attachements
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I DAVID J. MEYER2 VICE PRESIDENT AND CHIEF COUNSEL FOR3 REGULATORY AND GOVERNMENTAL AFFAIRS4 AVISTA CORPORATION5 P.O. BOX37276 1411 EAST MISSION AVENUE7 SPOKANE, WASHINGTON 99220.37278 TELEPHONE: (s09) 49s-43169 [e-mail]
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I I BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
12 IN THE MATTER OF THE APPLICATION )13 oF AVTSTA CORPORATTON FOR THE ) CASE NO. AVU-G-15-2314 REQUEST TO RESUME NATURAL GAS )ls EFFTCTENCY PROGRAMS SCHEDULE 190 & )16 INCREASE ITS ENERGY EFFICIENCY RIDER )17 ADJUSTMENT SCHEDULE 191 )
l8
19 I. INTRODUCTION
20 Avista Corporation, doing business as Avista Utilities (hereinafter Avista or Company),
2l at l4ll East Mission Avenue, Spokane, Washington, respectfully requests the proposed
22 revisions to Schedule 190, "Natural Gas Efficiency Programs" to resume natural gas energy
23 efficiency progrnms to residential (including low income), commercial and industrial natural gas
24 customers, and to increase Schedule 191 rates "Energy Efficiency Rider Adjustment" to fund the
25 programs. Programs will be offered through prescriptive rebates to customer segments for
26 eligible weatherization and high efficiency equipment measures as well as custom incentives for
27 non-residentialprojects.
The Company's taritr rider mechanism is designed to match future revenue with
budgeted expenditures. The purpose of this filing is to re-establish the tariff rider sufficient to
fund the following twelve months of DSM. In this filing, Avista proposes an estimated annual
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AVISTA SCI{EDULE 190 and 191 FILING PAGE I
revenue increase of approximately $1.25 million for natural gas Schedule 191, or an increase of
1.7% in overall billed rates.
3 The Company's2014 Natural Gas Integrated Resource Plan (IRP) established an estimate
4 of natural gas
5 ruCT)r metric
efficiency acquisition that was cost-effective relative to the Utility Cost Test
applied to the natural gas portfolio. The Company proposes, in this filing to
6 measure natural gas progams under the UCT because the acquisition achievable by use of this
7 metric is greater than that which would have been arrived at by use of the Total Resource Cost
S (TRC)2 metric. The 2016 achievable, and UCT cost-effective acquisition, was estimated at
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233,000 first year therm savings.
The Company requests that this filing be processed under the Commission's Modified
Procedure rules.
Communications in reference to this Application should be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Governmental Affairs
Avista Corporation
P.O.Box3727
1411 E. Mission Avenue, MSC-I3
Spokane, WA 99220-3727
Phone: [phone]
david. meyer@ avi stacorp. com
Linda Gervais
Manager, Regulatory Policy
Avista Corporation
P.O.Box3727
l4l I E. Mission Avenue, MSC-27
Spokane, WA 99220-3727
Phone: [phone]
linda. eervais@ avistacorp. com
I th. Utility Cost Test (UCT) includes only the costs and benefits that accrue to the utility or program
administrator. (Frequently, the UCT is referred to as the Program Administrator Test.) ln contrast to the TRC, the
UCT does not include costs or non-energy benefits to an individual customer. Accordingly, the UCT does not
introduce an internal bias against conservation programs or the need for studies to value non-energy benefits. The
UCT compares the utility's avoided cost of energy procurement and supply to the utility's cost of implementing
conservation programs.
2 Th. Totul Resource Cost Test (TRC) is designed to capture all of a conservation program's benefits and costs,
regardless of who pays for them. The TRC includes significant non-energy benefits that accrue to the utility and its
ratepayers. A properly calculated TRC will account for a variety of benefits, including the hedge value of risk
avoidance ("risk reduction value"), downward price pressure from reduced demand, the value of quantifiable non-
energy benefits, and a method for including non-energy benefits that are difficult to quantiff. A major concern with
the TRC is that it typically includes the full costs, but not the full benefits to customers because the risk reduction
value of conservation and many non-energy benefits are difficult to quantiff. This introduces a potential bias in the
TRC against conservation programs.
AVISTA SCHEDULE 190 and 191 FILING PAGE 2
II.BACKGROUND
2 ln 2012, due to the changing natural gas supply picture and resultant lower prices that
3 resulted in the decline of natural gas avoided costs, the Company filed, and the Commission
4 approved the suspension of its natural gas progams. Therefore, Avista's Idaho Schedule 191
5 was reduced to $0.00/therm for every rate class due to difficulty in achieving a meaningful cost-
6 effective natural gas portfolio according to the Net Total Resource Cost (TRC) cost-effectiveness
7 test.
8 The Company has remained committed to a continual re-evaluation of the prospects for
9 the natural gas DSM portfolio. During each annual business planning cycle an assessment of the
l0 viability of offering a natural gas portfolio is done.
11 For the same reasons as explained above, the Company filed to suspend its natural gas
12 programs in its Washington and Oregon jurisdictions as well. The Oregon Commission requested
13 the Company continue its natural gas DSM programs, and in Washington the Commission
14 determined that it was not advisable for Avista to discontinue its natural gas conservation
15 programs without evaluating the pros and cons of the TRC and the UCT.
16 After much discussion with the Washington Commission Staff and other interested
17 stakeholders, it was decided that the Company would use the UCT for purposes of evaluating
l8 cost-effectiveness of its natural gas programs, with the exception of low-income progftrms.
19 During 2015, Avista began its evaluation of the current composition and components of
20 natural gas avoided costs and compared them with other regional and national utilities. The
2I research and proposed additions to Avista's avoided cost were presented to the Company's DSM
22 Advisory Group for feedback in August 2015 in order to seek advice if there were other future
23 avoided cost analyses the Company should perform. The Idaho Commission Staff suggested that
AVISTA SCI{EDULE 190 and 191 FILING PAGE 3
1 the Company do further analysis on the value that conservation provides in deferring natural gas
2 capacity projects. Given the limited timing for the delivery of the Company's 2016 draft business
3 plan, this analysis has not yet been included.
4 Finally, recent proceedings in Idaho resulted in Idaho Commission guidance emphasizing
5 the value of the UCT.
6
7 III. Avoided Cost Methodoloey:
8 Unlike electric avoided costs which have the Northwest Power and Conservation Council
9 methodology as a foundation for utilities to follow, natural gas avoided costs do not have a
10 central regional entity to reference, and thus leads to a large degree of variability between
11 utilities. Historically, Avista has only included the value from the weighted average forward
12 price curves from the market hubs, the variable portion of transmission costs from market to gate
13 stations, and the regional conservation preference credit. Avista has differentiated between the
14 value of "annual" therm savings and "winter" therm savings to account for the seasonal
15 differences between market prices however, much of the actual difference is muted from the
16 ability to buy and store natural gas during the historically lower priced summer months for use
17 during historically higher priced winter months.
18 While there are certainly a large number of components that various utilities use as part
19 of their natural gas avoided cost, Avista presented three changes to the Advisory Group for the
20 2016 Business Plan.
2l First, Avista locks in enough firm transmission capacity for a peak day and thus has very
22 little variable natural gas transmission costs, approximately 0.lYo of total retail cost. This does
23 not accurately represent all of the costs of transporting gas from wellhead to the customer meter.
AVISTA SCHEDULE 190 and l9l FILING PAGE 4
1 The Company believes that the demand portion of Schedule 150 is a more accurate
2 representation of the total costs to deliver natural gas from the wellhead to the customer meter,
3 and therefore, that should be a component of the natural gas avoided cost calculation. Since the
4 electric forward market prices are based off of the Mid-C market hub, a $2.694{Wh long term
5 firm wheeling charge was proposed to the Advisory Group and is being included in the electric
6 avoided costs.
7 Second, there are a range of carbon cost assumptions for the future from $0/metric ton to
8 at least $220lmetric ton and potentially higher. The Northwest Power and Conservation Council
9 for the 7th Power Plan is expected to use the EPA 3% discount rate assumption which currently
10 stands at $40/metric ton and ramps to $47lmetric ton in2020. Since carbon dioxide is a direct
11 byproduct of natural gas combustion and uncertain regulation in the future, the Company
12 believed that it would be appropriate to include a conservative figure to account for an uncertain
13 future. Avista presented a $l0/metric ton starting in 2020 with a 3oh awr.ual escalation to its
14 Advisory Group.
15 Third, there are a range of discount rates that utilities use to measure the cost-
16 effectiveness of conservation among the different cost-effectiveness tests. During the review of
17 the many different approaches and rationales for the different discount rates, the Company
18 decided that its Weighted Average Cost of Capital (WACC) is still the appropriate discount rate,
19 but the tax benefits of debt financing as well as an inflation adjustment should be included in any
20 discounting rate. Moving from a nominal WACC to a real WACC was presented to the DSM
2l Advisory Group as well.
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AVISTA SCI{EDULE 190 and l9l FILING PAGE 5
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IV. Appropriate Measure of Cost Effectiveness
Historically, the TRC has been the primary tool to measure cost-effectiveness with
additional attention paid to the perspectives provided by the UCT, Participant Cost Test (PCT)
and Ratepayer Impact Measurement (RIM). However, given that the components of the TRC
attempt to address an overall benefit cost analysis this comparison does have a disconnect in that
the benefits are primarily based off of the utilities' avoided costs, which do benefit customers,
but the costs are primarily driven by the cost the customer's pay for the individual conservation
measure. When Avista filed to suspend natural gas programs based upon the difficulty in
delivering a cost-effective portfolio according to the Net TRC in Washington, the Commission
and Commission Staff encouraged Avista to use the UCT as the measure of prudent utility
spending for the company's natural gas programs.
Avista is also very appreciative of the work the Idaho Commission Staff did to provide a
draft revised Memorandum of Understanding earlier this year and was encouraged by the
increased focus on the UCT as a measurement of cost-effectiveness. In addition in the IPUC's
recent Order 33365 the Commission stated:
"When the Company ultimately seeks to recover its prudent investment in such
programs, however, we believe the Company may (but need not exclusively)
emphasize the UCT-and that test's focus on Company-controlled benefits and costs-
to argue whether the programs were cost-effective."
The Company will continue to report the multiple cost-effectiveness tests (TRC, UCT,
PCT & zuM), however will emphasize the UCT as a basis for prudency and reinstating our
natural gas conservation programs.
AVISTA SCHEDULE 190 and l9l FILING PAGE 6
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V. Foundational Data
The analysis for this revision to Schedule 191 is based upon the Washington Natural Gas
Portfolio of Avista's Draft 2016 DSM Business Plan. The draft business plan expects the
Washington natural gas portfolio to have a UCT of 2.02 and a TRC of 0.93. Below is a list of
programs and their cost-effectiveness tests for 2016.
Table 1: Washington Natural Gas Proerams Cost-Effectiveness.
Therms TRC UCT PCT RIM
WA LI
Web Tstat
Prescriptive Res
SSSS (Simple Steps, Smart
Savinss)
23,012
5,387
252,68L
1L,274
1.52
0.47
0.90
1.05
0.83
1,56
2.49
4.44
NA
1.08
5.34
2.L5
0.31
0.41
0.2t
0.s0
Residential
NonRes HVAC
NonRes Shell
Food Service Equipment
Site Specific
SMB
269,342
29,L57
6,051
23,488
181,305
3s,298
0.90
2.26
1.09
1.80
o.78
2.38
2.49
3.74
t.74
2.06
L.75
2.07
5.L7 0.27
8.10 0.49
4.25 0.42
12.30 0.44
2.t3 0.42
NA 0.48
cll
WA NG TOTAL
275,299
544,64L
0.93
0.91
1.89
2.20
2.72
4.29
0.43
0.27
wA NG TOTAL wLt 567,553 0.93 2.O2 4.58 0.27
AVISTA SCI{EDULE 190 and 191 FILING PAGE 7
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VI. Schedule 190
As part of the proposed reinstatement, Avista plans to revise Schedule 190 to provide
customers with a levelized incentive of $3.00 per first year therm savings for any project with a
simple payback less than 15 years and capped at70Yo of the project cost. The Company believes
that there is an opportunity to streamline the incentive approach to increase acquisition through
increased customer and vendor engagement and program understanding.
V[. CustomerExperience
Avista's natural gas customers in Idaho have expressed frustration and confusion to DSM
staff multiple times about why Avista choose to suspend natural gas conservation programs.
There have been many lost-opportunity instances where standard efficiency equipment has been
installed during the absence of the Idaho natural gas conservation programs. The Company looks
forward to reengaging the Idaho natural gas customers and encouraging them to choose energy
efficient options.
V[I. Proposed 2016 Budeet
The Company estimates in Table No. 2 below that the future acquisition from
conservation progrirms will be approximately 230,000 therms of conservation during 2016.
AVISTA SC}DDULE 190 and 191 FILING PAGE 8
I
2
Table No.2: Estimated 2016Idaho Natural Gas Budeet
2016 ldaho Natural Gas
Portfolio
Total incentives 5690,000
Total labor 5335,000
Total non-labor / non-
incentive S5o,ooo
NEEA Gas (lD Portion) 5778,782
Natural Gas CPA 550,000
Total budget SL,243,782
6
7 rx. REQUEST FOR APPROVAL
8 Avista respectfully requests the Commission approve the proposed increase in rates and
9 charges in Schedule 191. The estimated annual revenue change associated with this filing is an
10 increase of approximately $I.25 million for natural gas Schedule 191, or an increase of L7%oin
I I overall billed rates to be effective January I, 2016. The proposed rate increase will have an
12 average monthly bill impact of $1.1 1 to residential natural gas customers using 6l therms.
13 X. CUSTOMER NOTIFICATION
14 Notice to the public of the proposed rates and charges, pursuant to IDAPA 31.21.02.102,
15 will be given simultaneously with the filing, by posting a notice at each of the Company's
16 district offices in Idaho, which is attached as Attachment A. Notice of proposed rates will also
17 be given to all Idaho customers by individual bill insert. The proposed effective date is January
18 1,20t6.
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AVISTA SCHEDULE 190 and 191 FILING PAGE 9
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XI. CONCLUSION
WHEREFORE, Applicant respectfully requests the Commission issue its Order
finding the proposed programs in Schedule 190 and the rates and charges in Schedule 191,
attached to this Application as Attachment A and B respectively, to be fair, just, reasonable and
nondiscriminatory, and effective for natural gas service rendered on and after January 1,2016,
with this application being processed under Modified Procedure.
DATED at Spokane, Washington, this 26thday of October 2015.
AVISTA CORPORATION
Kelly O. Norwood,
Vice President, State and Federal Regulation
By
AVISTA SCI{EDULE 190 and l9l FILING PAGE IO
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VERIFICATION
STATE OF WASHINGTON
County ofSpokane
Kelly Norwood, being first duly swom, on oath deposes and says: that he is the
Vice President of State and Federal Regulation 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 26n day of October 20l5,by KellyNorwood.
Commission Expires:
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PUBLIC in and for the State of
Washington, residing at Spokane.
AVISTA SCI{EDLJLE 190 and 191 FILING PAGE 1I
Schedule 190
Strike
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 190
NATURAL GAS EFFICIENCY PROGRAMS
!DAHO
1. AVAILABILITY
iene
@ 1) Custemer has an existing eentraet with Avista the Cempany will hener
nvista prier te Sept
will be henered by the CemBany under the fellewing eenditiene:i, fne eempany nas a
effieieney measure; eustemers seeking ineentiv+ funding will
pre4*
i
15, 2012, The Cempany has the sele diseretien te determine if
deeumentatien is net suffieient; will rejeet the prejeet frem
iii. eustemere whe w
effieieney measur+ whieh has been evaluated by the Cempany
ign--an
M
iv, eustemers must
@B. Residential and Nen Resider*ial Preseriptive Rebate Pregrams: Qualifying
eustemers in the eempany's Residential and Nen Residential Preseriptive
Rebate Pregrams must send te Avista all required rebate ferms and ether
payment, nny regues
paymen+
Seeen4Revision Sheet 1 90
Canceling
First Revision Sheet 190
Corporation
Kelly Norwood, Vice-President, State and Federal Regulation
Third Revision Sheet 190A
Canceling
Re'risedSeeend Revision Sheet 1 90A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATUML GAS EFFICIENCY PROGRAMS - ]DAHO
C, timited lneeme Pregrame: All exieting 2012 Gemmunity Aetien Partnerehip
The serviees deseribed herein are available te qualifying residential' eemmereial;
purpese ef premeting
ga€- servioes net specif
Mustment) are net e
funding fer the installatien ef natural gas effieieney measures and may previde ether
effeetive naturat gao
e
er weuld be the energy seuree and te measures whieh inerease the effieient use ef
req*imr+
2, ELIGIBLE CUSTOMER SEGMENTS
All customers in all customer segments to whom this tariff is available are eligible for
participation in naturalgas efficiency programs developed in compliance with this tariff.
lssued by
By
Corporation
Kelly Nonivood, Vice-President, State and Federal Regulation
l.P.U.C. No.27
Seeen4Revision Sheet 1 90B
Canceling
First Revision Sheet 1908
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGMMS - 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. lncentives 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 lncentive Level
(dollars/first year therm saved)
(Minimum measure life of 10
vear.sl
NaturalGas Efficiency {-te-unCer+-years 2Sg
2+e+nd€+4-Ye€+c 2SO
4 te under 6 years 3.o0
6+e-underlS+ea+s 3.50
13 yeare and Over 0€o
lneentives in whieh the tier strueture applies will be eapped aL50% ef the ineremental
prejeet eest with the exeeptien ef the fellewing that may be eapped at a maximum ef
100% ef the measure eest:
4.1.1
4.1.2
Energy efficiency programs delivered by community action agencies
contracted by the Company to serve Limited lncome or vulnerable
customer segments including agency administrative fees and health
and human safety measures;
Low-cost natural gas efficiency measures with demonstrable energy
savings (e.9. rooftop unit service);
lssued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
AVISTA
dlbla
CORPORATION
Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS . IDAHO
Programs or services supporting or enhancing local, regional or
nationa! natural gas efficiency market transformation efforts.
4.1.3
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,
ln 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.
l.P.U.C. No.27
lssued by
By
Feurth Revision Sheet 190C
Canceling
Third Revision Sheet 190C
Avista Corporation
Kelly Norwood, Vice-President, State and Federal Regulation
Schedule 190
[Jnderline
l.P.U.C. No. 27
Third Revision Sheet 190
Canceling
Second Revision Sheet 190
AVISTA CORPORATION
dba Avista Utilities
SCHEDULE 190
NATURAL GAS EFFIC]ENCY PROGRAMS
IDAHO
1. AVAILABILITY
The services described herein are available to qualifvinq residential,
commercial. and industrial. retail natural qas distribution customers of Avista
Corporation for the purpose of promotino the efficient use of natural oas. Customers
receivinq natural qas distribution service provided under special contract and/or
customers receivinq natural qas services not specified under Tariff Schedule 191
(Natural Gas Efficiencv Rider Adiustment) are not elioible for services contained in
this schedule unless specificallv stated in such contract or other service aoreement.
The Company may provide oartial fundino for the installation of natural gas efficiency
measures and mav provide other services to customers for the purpose of
identification and implementation of cost effective natural qas 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 obtain€d apprgpriate owner
consent.
Assistance provided under this schedule is limited to end uses where natural
oas is or would be the enerqv source and to measures which increase the efficient
use of natural qas. Assistance mav take the form of monetary incentives or non-
monetarv incentives. as further defined within this tariff. The acquisition of resources
is cost-effective as defined bv a Utilitv Cost Test (UCT) as a portfolio. Customer
participation under this schedule shall be based on eliqibilitv requirements contained
herein.
ELIG!BLE 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.
MEASURES
Only natural gas efficiency measures with verifiable energy savings are
eligible for assistance. Measure eligibility may not necessarily apply to all customer
segments. Finaldetermination of applicable measures will be made by the Company.
lssued October 26, 2015 Effective Januarv 1. 2016
lssued by Avista Corporal
By Kelly Noruvood, Vice-President, State and Federal Regulation
l.P.U.C. No.27
Fourth Revision Sheet 190A
Canceling
Third Second Revision Sheet 190A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
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. lncentives 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 lncentive Level
(dollars/first year therm saved)
(Minimum measure Iife of 10
veansl
NaturalGas Efficiency Under 15 vears 3.00
Over 15 vears 0.00
All proiects will be capped at 70% of incremental proiect cost based upon the
above tiers. lncentives for efficiencv measures within the followinq cateoories shall
not exceed 100% of the proiect cost:
4.1.1 Energy efficiency programs delivered by community action agencies
contracted by the Company to serve Limited lncome or vulnerable
customer segments including agency administrative fees and health
and human safety measures;
Low-cost natural gas efficiency measures with demonstrable energy
savings (e.9. rooftop unit service);
4.1.2
lssued October 26, 2015 Effective January 1, 2016
lssued Corporation
By Kelly Nonrood, Vice-President, State and Federal Regulation
l.P.U.C. No.27
Third Revision Sheet 1908
Canceling
Second Revision Sheet 190B
AVISTA CORPORATION
d/b/a Avista Utilities
4.1.3
4.1.4
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS. IDAHO
Programs or services supporting or enhancing local, regional or
national natural gas efficiency market transformation efforts.
Prescriptive proorams are ouided bv the tvpical application of that
measure in accordance with the previouslv defined incentive
structure. lncentive levels for these proqrams are based on market
conditions at the time of the proqram desion and are not dependent
on actual proiect cost relative to incentive caps. lncentives shall not
exceed proiect costs.
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.
ln 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.
lssued October 26. 2015 Effective January 1. 2016
lssued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
l.P.U.C. No.27
lssued by
By
Fourth Revision Sheet 190C
Canceling
Third Revision Sheet 190C
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGRAMS - IDAHO
,***Delgte sheet 1 90c***********************
Avista Corporation
Kelly Nonrood, Vice-President, State and Federal Regulation
Schedule 190
Clean
AVISTA CORPORATION
dba Avista Utilities
1.
SCHEDULE 190
NATUML GAS EFFICIENCY PROGRAMS
IDAHO
AVAILABILITY
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
incentives, as further defined within this tariff. The acquisition of resources is cost-
effective as defined by a Utility Cost Test (UCT) as a portfolio. Customer
participation under this schedule shall be based on eligibility requirements contained
herein.
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.
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.
2.
3.
ive January 1, 2016
lssued by
By
Third Revision Sheet 190
Canceling
Second Revision Sheet 190
Avista Corporation
Kelly Nonrood, Vice-President, State and Federal Regulation
No.27
Fourth Revision Sheet 190A
Canceling
Third Second Revision Sheet 190A
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE '190 - continued
NATUML GAS EFFICIENCY PROGRAMS - IDAHO
4. FUNDING AND NONMONETARY ASSISTANGE
4.1 Funding
The incentives specified below are provided by the Company to promote the best
use of natural gas resources. lncentives 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 lncentive Level
(dollars/first year therm saved)
(Minimum measure life of 10
vearc)
NaturalGas Efficiency Under 15 years 3.00
Over 15 vears 0.00
All projects will be capped at 70o/o of incremental project cost based upon the
above tiers. lncentives for efficiency measures within the following categories shall
not exceed 10Oo/o ofthe project cost:
4.1.1
4.1.2
Energy efficiency programs delivered by community action agencies
contracted by the Company to serve Limited lncome or vulnerable
customer segments including agency administrative fees and health
and human safety measures;
Low-cost natural gas efficiency measures with demonstrable energy
savings (e.9. rooftop unit service);
ive January 1,2016
lssued by
By
Avista Corporation
Kelly Norwood, Vice-President, State and Federal Regulation
l.P.U.C. No.27
Third Revision Sheet 190B
Canceling
Second Revision Sheet 190B
AVISTA CORPORATION
d/b/a Avista Utilities
4.1.3
4.1.4
SCHEDULE 190 - continued
NATURAL GAS EFFICIENCY PROGMMS - IDAHO
Programs or services supporting or enhancing local, regional or
national natural gas efficiency market transformation efforts.
Prescriptive programs are guided by the typical application of that
measure in accordance with the previously defined incentive
structure. lncentive levels for these programs are based on market
conditions at the time of the program design and are not dependent
on actual project cost relative to incentive caps. lncentives shall not
exceed project costs.
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. ln 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.
Effective January 1,2016
lssued by Avista Utilities
By Kelly Norwood, Vice President, State and Federal Regulation
Schedule 19 I
Strike
Seventh Revision
Substitute Sixth Revision
Sheet 191
Canceling
Sheet 191
CORPORATION
Avista Utilities
AVISTA
dlbla
SCHEDULE 191
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas
service available. This Energy Efficiency Rider or Rate Adjustment shall be
applicable to all retail customers taking service under Schedules 101, 111, 112,
131, and 132. This Rate Adjustment, is designed to recover costs incurred by the
Company associated with providing energy efficiency services and programs to
customers. The Company may, at its discretion to match revenue under this
schedule with demand for services under Schedule 190, reduce or increase this
charge on an annual basis. Any change in this charge is subject to Commission
approval and its review of the previous year expenditures under Schedule 190 and
determinations with regard to any revenue carry forward, and prospective budget
on an annual basis. Any annual expenditures exceeding annual collections when
combined with any carry forward budget surplus shall be at the Company's risk of
future recovery.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 101 $0SO00g per Therm
Schedule 111 & 112 $0S0009 per Therm
Schedule 131 & 132 $0,00000 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject
contained in this tariff.
The above Rate is subject to increases
Schedule 158.
to the Rules and Regulations
as set forth in Tax Adjustment
October 1,2012
lssued by
By
Avista Utilities
Kelly O. Norwood, Vice President, State and Federal Regulation
Schedule l9l
IJnderline
l.P.U.C. No.27
Eighth Revision Sheet 191
Canceling
Seventh Revision Sheet 191
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 191
ENERGY EFFICIENCY R!DER ADJUSTMENT. !DAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas
service available. This Energy Efficiency Rider or Rate Adjustment shall be
applicable to all retail customers taking service under Schedules 101, 111, 112,
131, and 132. This Rate Adjustment, is designed to recover costs incurred by the
Company associated with providing energy efficiency services and programs to
customers. The Company may, at its discretion to match revenue under this
schedule with demand for services under Schedule 190, reduce or increase this
charge on an annual basis. Any change in this charge is subject to Commission
approval and its review of the previous year expenditures under Schedule 190 and
determinations with regard to any revenue carry forward, and prospective budget
on an annual basis. Any annual expenditures exceeding annual collections when
combined with any carry forward budget surplus shall be at the Company's risk of
future recovery.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 101 $0.01818 per Therm
Schedule 111 & 112 $0.00978 per Therm
Schedule 131 & 132 $0.00978 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules
contained in this tariff.
and Regulations
Tax AdjustmentThe above Rate is subject to increases
Schedule 158.
forth
lssued Effective
October 26,2015 January 1,2016
lssued by Avista Utilities
By Kelly O. Norwood, Vice President, State and Federal Regulation
Schedule 19 I
Clean
l.P.U.C. No.27
Eighth Revision Sheet 191
Canceling
Seventh Revision Sheet 191
lssued by Avista Utilities
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 191
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPLICABLE:
To Customers in the State of ldaho where the Company has natural gas
service available. This Energy Efficiency Rider or Rate Adjustment shall be
applicable to all retail customers taking service under Schedules 101, 111, 112,
131, and 132. This Rate Adjustment, is designed to recover costs incurred by the
Company associated with providing energy efficiency services and programs to
customers. The Company may, at its discretion to match revenue under this
schedule with demand for services under Schedule 190, reduce or increase this
charge on an annual basis. Any change in this charge is subject to Commission
approval and its review of the previous year expenditures under Schedule 190 and
determinations with regard to any revenue carry forward, and prospective budget
on an annual basis. Any annual expenditures exceeding annual collections when
combined with any carry forward budget surplus shall be at the Company's risk of
future recovery.
MONTHLY RATE:
The energy charges of the individual rate schedules are to be increased by
the following amounts:
Schedule 101 $0.01818 per Therm
Schedule 111 & 112 $0.00978 per Therm
Schedule 131 & 132 $0.00978 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the
contained in this tariff.
The above Rate is subject to increases
Schedule 158.
Rules and Regulations
forth in Tax Adjustmentset
lssued Effective
October 26,2015 January 1,2016
By Kelly O. Norwood, Vice President, State and Federal Regulation