20181214Decision Memo.pdf

DECISION MEMORAI\DUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SEAN COSTELLO
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 11,2018
SUBJECT:IN THE MATTER OF THE APPLICATION OF AVISTA CORPORATION
FOR A DETERMINATION OF 2014-2017 NATURAL GAS ENERGY
EFFICIENCY EXPENSES AS PRUDENTLY INCURRED; CASE NO.
AVU-G-18-08
On November 16, 2018, Avista Corporation ("Avista" or "Company") filed an
Application requesting the Commission make a determination that the Company's natural gas
energy efficiency expenditures from January 1,2014, through December 31,2017, were
prudently incurred.
THE APPLICATION
The Company states that it spent $2,899,525 on natural gas energy efficiency
measures from January 1,2014, to December 31,2017. Application at l. The Company reports
that 54oh, or $1,567 ,707 , of its total expenditures were paid to customers in direct incentives. 1d.
at 5. The Company reports that its energy efficiency portfolio achieved a Utility Cost Test ratio
of 1.45 in 2016 and 2.35 in2017. Id. at7-8. The Company reports that its natural gas energy
efficiency programs saved 535,449 therms, on a gross basis, from January l, 2016, through
December 31,2017. Id. at 8-9. Avista also reports that its natural gas energy efficiency
programs exceeded the Company's 2016 and 2017 Integrated Resource Planning (IRP) target(s).
Id. at9.
The Company hired a third party to conduct an impact evaluation in order to "provide
an accurate summary of the gross energy and demand savings attributable to Avista's Energy
Efficiency portfolio." Id. at 10. The Company provided a copy of the evaluation with its
DECISION MEMORANDUM I
Application as well as copies of its 2016 and2017 Idaho Annual Conservation Reports. Id. at l0
and see Exhibits I -3.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Intervention Deadline, with an intervention deadline set for 2l days after service of the Notice.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Intervention
Deadline that establishes an intervention deadline set for 21 days after service of the Notice?
(tu
Sean Costello
Deputy Attorney General
I:\Legal\GAS\AVU-G-18-08\N4EMOS\AVUGl808 dec memo sc.doc
2DECISION MEMORANDUM