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HomeMy WebLinkAbout20201230Notice_of_Applications_Order_No_34879.pdfNOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 34879 1 Office of the Secretary Service Date December 30, 2020 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF AVISTA’S APPLICATIONS FOR A PRUDENCY DETERMINATION FOR ITS 2018-2019 ELECTRIC AND GAS ENERGY EFFICIENCY EXPENDITURES ) ) ) ) ) ) ) ) ) CASE NO. AVU-E-20-13 AVU-G-20-08 NOTICE OF APPLICATIONS NOTICE OF INTERVENTION DEADLINE ORDER NO. 34879 On November 25, 2020, Avista Corporation dba Avista Utilities (“Company”) filed two Applications, each requesting the Commission issue an order finding that the Company’s electric or gas energy efficiency expenditures from January 1, 2018 through December 31, 2019 (“2018/2019”) were prudently incurred (referred to collectively as the “Applications”). The Applications summarize the Company’s energy efficiency activities and their cost effectiveness. The Applications include the Company’s 2018 and 2019 Annual Conservation Reports and the 2019 Idaho Research and Development Report. The Applications also include the 2018/2019 process and impact evaluation reports of the Company’s electric and gas energy efficiency programs. The Company requests that the Applications be processed by Modified Procedure. At the December 15, 2020 Decision Meeting, Staff recommended the Commission process the Applications together and establish a 21-day intervention deadline. We find that processing these cases together is reasonable and will be an efficient use of resources for any parties wishing to join. If circumstances change and the issues diverge, we can consider bifurcating the cases at that time. Consequently, we now issue this Notice of Applications and Notice of Intervention Deadline establishing a 21-day intervention deadline for interested parties. NOTICE OF APPLICATIONS YOU ARE HEREBY NOTIFIED that the Company requests a prudency determination for $15,309,862 incurred in 2018/2019 for its electric energy efficiency programs portfolio (“Electric Programs”). $10,021,973 was paid directly to customers. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 34879 2 YOU ARE FURTHER NOTIFIED that in 2018/2019, the Company’s Electric Programs achieved 55,036 megawatt-hours (“MWhs”) of savings.1 YOU ARE FURTHER NOTIFIED that the Company’s Electric Programs had an underfunded balance of $9,574,630 on December 31, 2017.2 On December 31, 2019 the underfunded balance had been reduced to $4,375,287. YOU ARE FURTHER NOTIFIED that the Company measures the cost effectiveness of its Electric Programs using the Utility Cost Test (“UCT”), Total Resource Cost (“TRC”), Participant Cost Test, and Ratepayer Impact Test. The 2018 UCT and TRC ratios for the Company’s Electric Programs were 2.66 and 2.07, respectively. The 2019 UCT and TRC ratios for the Company’s Electric Programs were 2.39 and 1.95, respectively. YOU ARE FURTHER NOTIFIED that the Company exceeded its energy efficiency targets set in its Integrated Resource Plan (“IRP”) for both 2018 and 2019. In 2018, the Company achieved 29,805 MWhs of electric savings, 160% of the IRP target. In 2019, the Company achieved 25,231 MWhs of electric savings, 144% of the IRP target. YOU ARE FURTHER NOTIFIED that its 2018/2019 third-party process and impact evaluations concluded the Company’s Idaho Electric Programs cost-effectively saved 55,036 MWhs. The purpose of the evaluations is to accurately summarize the energy savings attributable to the Company’s Electric Programs (impact) and to identify any improvements needed to increase effectiveness and efficiency (process). YOU ARE FURTHER NOTIFIED that the Company requests a prudency determination for $2,896,986 incurred in 2018/2019 for its natural gas energy efficiency programs portfolio (“Gas Programs”). $2,263,689 was paid directly to customers. YOU ARE FURTHER NOTIFIED that in 2018/2019 the Company’s Gas Programs achieved 464,718 therms of savings. YOU ARE FURTHER NOTIFIED that the Gas Programs had an overfunded balance of $180,889 on December 31, 2017. On December 31, 2019 the overfunded balance had been reduced to $78,073. 1 This is exclusive of the 8,817 MWhs of Northwest Energy Efficiency Alliance savings. 2 The underfunding was addressed by Order No. 33897 in Case No. AVU-E-17-06, which authorized increasing schedule 91 rates on October 1, 2017. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 34879 3 YOU ARE FURTHER NOTIFIED that the Company reports its Gas Programs achieved a 2.12 UCT ratio in 2018 and 1.50 UCT ratio in 2019—both years exceeding the Company’s target of a UCT greater than 1.0. YOU ARE FURTHER NOTIFIED that in 2018, the Company saved 247,756 therms of gas, 101% of the IRP target. In 2019, the Company saved 216,962 therms of gas, 68% of the IRP target. YOU ARE FURTHER NOTIFIED that its 2018/2019 third-party process and impact evaluations concluded the Company’s Idaho Gas Programs cost effectively saved 464,718 therms of gas. YOU ARE FURTHER NOTIFIED that the Company’s Applications and exhibits are available for public inspection during regular business hours at the Commission’s office. The Applications are also available on the Commission’s web site at www.puc.idaho.gov. Click on the “ELECTRIC” or “GAS” tab, select “Open Cases” and then locate and click on the case number as shown on the front of this document. YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code. The Commission may enter any final order consistent with its authority under Title 61. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted under the Commission’s Rules of Procedure, IDAPA 31.01.01.000, et seq. NOTICE OF INTERVENTION DEADLINE YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to obtain parties’ rights of participation must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and .073. Persons who wish to intervene as a party must file a Petition to Intervene within 21 days from the service date of this Order. Persons desiring to present their views without parties' rights of participation are not required to intervene and may present their comments without prior notification to the Commission or the parties. YOU ARE FURTHER NOTIFIED that after the intervention deadline runs, the Commission Secretary will issue a Notice of Parties. Staff then will informally confer with the parties about scheduling for this case. NOTICE OF APPLICATION NOTICE OF INTERVENTION DEADLINE ORDER NO. 34879 4 O R D E R IT IS HEREBY ORDERED that persons desiring to intervene for the purpose of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission, pursuant to Rules 72 and 73, IDAPA 31.01.01.72-73, within 21 days from the service date of this Order. IT IS FURTHER ORDERED that after the Commission Secretary issues a Notice of Parties, Staff will informally confer with the parties about an appropriate schedule. IT IS FURTHER ORDERED that parties continue to comply with Order No. 34781, issued September 17, 2020. All pleadings should be filed with the Commission electronically and shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between parties should also be accomplished electronically. Voluminous discovery-related documents may be filed and served on CD-ROM or a USB flash drive. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th day of December 2020. PAUL KJELLANDER, PRESIDENT KRISTINE RAPER, COMMISSIONER ERIC ANDERSON, COMMISSIONER ATTEST: Jan Noriyuki Commission Secretary I:\Legal\ELECTRIC\AVUE2013AVUG2008\Orders\AVUE2013AVUG2008_Ntc App Int_dh.docx