20220902Application.pdf

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RECEIVET)
Avista Corp.
141I East Mission, P.O.Box3727
Spokane, Washington 99220 4500
Telephone [phone]
Toll Free 800-727-9170
AVU-G-22.0.7
September 2,2022
Jan Noriyuki, Secretary
Idaho Public Utilities Commission
ll33l W. ChindenBlvd
Building 8, Suite 201-A
Boise,ID 83714
RE: Avista Utilities Request To Increese Schedule 191, Energy Elliciency Rider
Adjustment
Dear Ms. Noriyuki:
In accordance with Idaho Code $$ 6l-501 and -507, and pursuant to Rule of Procedure
(RP) 53 (IDAPA 3 I .01 .01 .53), Avista Corporation, dba Avista Utilities (*Avista" or "Company'),
hereby submits for electronic filing with the Idaho Public Utilities Commission ("Commission")
its Application requesting approval to increase its natural gas tariff Schedule l9l, "Energy
Efficiency Rider Adjustment" rates, effective November 1,2022.
If you have any questions regarding this filing, please contact Ryan Finesilver, Manager of
Energy Effi ciency, at (509) 49 5 487 3 or ryan. fi nesi I ver@.avi stacom. com.
Sincerely
2022 SEP"2 At\4 11 04
ItiAtl() Pr.,BLlL
I,J I ILII IES COI\4I\4ISSION
/r/-fm%/,,,"
Jaime Majure
Regulatory Policy Analyst
DAVID J. MEYER, Esq.
Vice President and Chief Counsel
Regulatory & Governmental Affairs
Avista Corporation
141l E. Mission Avenue, MSC 27
P. O.Box3727
Spokane, Washington 99220
Telephone: [phone]
d avi d. meyerCrDavi st acorp. c orn
Attorney for Avista Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION FOR
APPROVAL TO INCREASE ITS ENERGY
EFFICIENCY TARIFF RIDER
ADruSTMENT SCHEDULE I9I
cAsE NO. AVU-G-2Z-]0,1
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APPLICATION OF AVISTA
In accordance with Idaho Code $61-502 and RP 052, Avista Corporation, dba Avista
Utilities ("Avista" or "Company"), at l4ll East Mission Avenue, Spokane, Washington, hereby
respectfully applies to the Idaho Public Utilities Commission ("Commission") for an order
authorizing Avista to increase to its natural gas tariff, I.P.U.C. No. 27, Schedule 191, "Energy
Effrciency Rider Adjustment" rates, effective November I,2022.
Avista's Schedule 191 tariff rider rate adjustment is designed to recover costs incurred by
the Company associated with providing energy efficiency services and programs to customers.
The tariff rider mechanism is intended to match future revenue with budgeted expenditures; to
ensure appropriate recovery, the mechanism includes a true-up feafure that reconciles the previous
periods' actual expenditures and collections. The purpose of this filing is to establish tariff riders
that are sufficient to fund the following twelve months' expenditures of the Company's Natural
Gas Energy Efficiency Progtam ("Program"), as well as amortize any tariff rider imbalance, thus
APPLICATION OF AVTSTA - I
minimizing the amount of future under- or over-collections. In this filing, Avista proposes to
increase billed natural gas rates by 3.0% through proposed revisions in Schedule l9l, with a
requested effective date of November l, 2022. The Company is filing another Application
simultaneously with this application related to purchased gas costs that would increase natural gas
revenues by approximately $11.2 million or 12.7%o effective November 1,2022. If both
applications are approved, the net change to natural gas revenue would be an increase of $13.8
million or l5.7Yo effective November 1,2022. The Company also requests that this frling be
processed under the Commission's Modified Procedure Rules (RP 201-204).
All communications, pleadings, and orders with respect to this Application should be
directed to:
David J. Meyer, Esq.
Vice President and Chief Counsel
Regulatory & Governmental Affairs
Avista Corp.
P. O.Box3727
l4l I E. Mission Avenue, MSC 27
Spokane, Washingto n 99220 -37 27
Telephone: [phone]
E-mail : david.meyer(eDavi stacorp.com
Patrick Ehrbar
Director of Regulatory Affairs
Avista Corp.
P. O.Box3727
l4l1 E. Mission Avenue, MSC 27
Spokane, Washingto n 99220 -37 27
Telephone: [phone]
E-mail: patrick vlstacom.com
Avista Dockets (Electronic Only) - A vi staDockets (@av i stacorp. com
I. BACKGROUND
Avista's Schedule l9l funds the Program as described in the Company's Schedule 190.
All revenue derived through Schedule 191 is applied only to the provision of natural gas efficiency
services including programs offered by the Company directly, through designated contractors, or
as part of regional natural gas programs as well as evaluation, measurement, and verification
("EM&V"). These programs include, but are not limited to, behavioral programs, low-income
weatherization, Northwest Energy Efficiency Alliance (NEEA) participation, and provision of
APPLICATION OF AVISTA - 2
incentives for various energy efficiency measures such as appliances, compressed air, HVAC,
industrial, lighting, maintenance, motors, shell, and sustainable buildings. The Company's
programs are based on providing a financial incentive, or "rebate," for cost-effective efficiency
measures. While several metrics are applied to determine the costs and benefits of these programs,
the Total Resource Cost (TRC) test and the Utility Cost Test (UCT) are most often utilized for
purposes of determining cost-effectiveness and to provide insights into program effrcacy.rRatios
over 1.0 illustrate that benefits exceed costs.
As of July 31,2022, the current Schedule 191 tariff rider balance was approximately $2.1
million underfunded. Underfunded balances indicate that less tariff rider funding was collected
than actually needed to fund the ongoing Program operations. While the current rate is designed
to fund the Program by approximately $1.4 million annually, the actual expenses incurred during
2020 and 2021 rncreased by approximately 53Yo as compared to the 2019 Program year. The
primary reason for this increase was due to a higher level of conservation savings being achieved
in Idaho. The table below summarizes the overall spend and collections along with the evaluated
savings in each year.
Table No. 1
2019 2020 2021
Evaluated Savings
(Therms)216,962 352,548 300.000
Tarifffuder Collections $1.461.206 $1.382.684 $1.401.103
Proeram Exoenses $1.617.320 s2.482.2s8 $2.446.649
I The Total Resource Cost test measures the net costs of an energy efficiency progrirm as a resource option based on
the total costs of the program, including both the participants'and the utility's costs. Further, it includes the impact of
any quantifiable non-energy impacts that may be associated with the equipment installed. In comparison, the Utility
Cost Test measures the net costs of an energy effrciency program as a resource option based on the costs incurred only
by the program administrator (including incentive costs) and excluding any net costs incurred by the participant. The
benefits are similar to the TRC benefits, however, exclude non-energy impacts; costs are therefore defined more
na:rowly.
APPLICATION OF AVISTA - 3
The increase in expenses is proportionate with the higher participation levels in the Program. On
average, incentives paid to customers account for approximately 70-80o/o of the overall Program
cost.
TV. REOUEST FOR APPROVAL
Avista is proposing an increase in the rates and charges in Schedule 191, to become
effective November 1,2022. The estimated annual revenue change associated with this filing is an
annual increase of approximately $2.6 million for natural Schedule 191, or an increase of 3.0% in
overall billed rates. Residential customers using an average of 63 therms per month would see their
monthlybillsincreasefrom$62.06to$64.0l,anincreaseof$l.94permonth, or3.lYo.Attachment
A to this Application provides the corresponding workpapers and rate calculations for the revisions
to the Energy Efficiency Rider Adjustment described herein. Additionally, the proposed revisions
to tariff Schedule 191 are provided as Attachment B to this filing, including the proposed revisions
in legislative format per RP 121.
V. CUSTOMER NOTIFICATION
In conformance with RP 125, this Application will be brought to the attention of
the Company's customers by way of a Customer Notice, provided as Attachment C to this filing,
which will be included in customer's bills beginning in early September 2022 and run for a full
billing cycle. Notice will also be given simultaneously with the filing, by posting of the Application
to the Company's website at myavista.com.
VI. CONCLUSION
Avista hereby respectfully requests the Commission issue its Order finding the proposed
rates and charges in Schedule 191, attached to this Application as Attachment B, to be fair, just,
APPLICATION OF AVISTA - 4
reasonable and nondiscriminatory, and effective for natural gas senrice rendered ou and after
November 1,2022, with this Application processed under the Commission's Modified Procedure
nrles through the use of writtEn comments.
DATED this 2"d day of September 2WL
Respectfirlly submitte4
AvistaUtilities
By:/slDwid Mey.er
David J. Meyer, Vice hesident and Chief
Cotrnsel for Regulatory and Govornmental Atrairs
APPLICATION OF AVISTA. 5
AVISTA UTILITIES
Case No. AV[J-G-22-01
ATTACHMENT668"
Proposed Tariff Sheets
l.P.U.C. No.27
lssued by
By
Ninth Revision Sheet 191
Canceling
Revision Sheet 191
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
Schedule 111 & 112
Schedule 131 & 132
$0.04903 per Therm
$0.02626 per Therm
$0.02626 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 158.
lssued
September 2,2022 November 1,2022
Effective
Avista Utilities
Patrick Ehrbar - Director of Regulatory Affairs
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 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 sha!! 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 annua! 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
Schedule 111 & 112
Schedule 131 & 132
$O'0{€{8 per Therm
$0S0978 per Therm
$0S9978 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 158.
October 26,2015 January 1,2016
lssued Effective
Avista Utilities
By Kelly O. Norwood, Vice President, State and Federal Regulation
l.P.U.C. No.27
lssued by
By
Ninth Revision Sheet 191
Canceling
hth Revision Sheet 191
AVISTA CORPORATION
d/b/a Avista Utilities
SCHEDULE 191
ENERGY EFFICIENCY RIDER ADJUSTMENT - IDAHO
APPL]CABLE:
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 individua! rate schedules are to be increased by
the following amounts:
Schedule 101
Schedule 111 & 112
Schedule 131 & 132
$0.04903 per Therm
$0.02626 per Therm
$0.02626 per Therm
SPECIAL TERMS AND CONDITIONS:
Service under this schedule is subject to the Rules and Regulations
contained in this tariff.
The above Rate is subject to increases as set forth in Tax Adjustment
Schedule 158.
September 2,2022 November 1,2022
Effectivelssued
Utilities
Patrick Ehrbar - Director of Regulatory Affairs
AVISTA UTILITIES
Case No. AV[J-G-22-01
EXHIBIT "C"
Copy of Customer Notice and Press Release
Important Notice for Idaho Customers DRAFT
(September 2022)
Avista has filed two rate adjustment requests with the Idaho Public Utilities Commission (Commission),
that if approved, are designed to increase overall natural gas revenue by approximately $13.8 million or
15.7% effective Nov. l, 2022.T\ese filings have no impact on Avista's sarnings.
The first adjustment is related to the annual Purchased Gas Cost Adjustnent (PGA) filing. The PGA is
filed each year to balance the actual cost of wholesale natural gas purchased by Avista to serve customers
with the amount included in rates. This includes the natural gas commodity cost as well as the cost to
transport natural gas on interstate pipelines to Avista's local distribution system. The increase is primarily
driven by the increase in wholesale natural gas costs that were higher than the level included in rates during
the past year. If approved, Avista's request is designed to increase annual natural gas revanues by
approximately $ll.Z million or 12.7o/o.
The second filing is the natural gas Energy Efliciency filing. The energy effrciency adjustment is related to
the funding of Avista's natural gas energy efficiency programs. This adjusfinent aligns the amount that is
collected in customer rates with the actual costs to run and deliver the programs. Avista's energy effrciency
programs are designed to provide a financial incentive or rebate for cost-effective energy efficiency
measures. The Commission approves the amount of funding forthese importantprograms through aportion
of energy rates. The rate increase proposed reflects the higher level of funding needed to operate the
programs in the coming years. If approved, Avista's request is designed to increase natural gas revenues by
approximately $2.6 million or 3.0Vo.
Customer Bills
Natural Gas
If the natural gas PGA and the Energy Efficiency filings are approved, residential natural gas customers in
Idaho using an average of 63 therms per month would see their monthly bills increase from $61.30 to
$70.52, an increase of $9.22 per month, or approximately 15.0o/o. The proposed natural gas rate changes
would be effective Nov. l, 2022.
The net effect, on an annual revenue basis, for the requested natural gas rate changes by rate schedule are:
General Service - Schedule l0l
Large General Service - Schedules lll & ll2
Transportation Service - Schedule 146
Overall
ts.0%
18.3%
0.0%
t5.7%
Rate Application Procedure
The Company's applications are proposals, subject to public review and a Commission decision. Copies of
the applications are available for public review at the offices of both the Commission and Avista, and on
the Commission's website (www.puc.idaho.eov). Customers may file with the Commission written
comments related to the Company's filings. Customers may also subscribe to the Commission's RSS feed
(http://www.puc.idaho.eov/rssfeeds/rss.htm) to receive periodic updates via e-mail about the case. Copies
of rate filings are also available on our website, www.myavista.com/rates.
If you would like to submit comments on the proposed rate change, you can do so by going to the
Commission website or mailing comments to:
Idaho Public Utilities Commission
P.O. Box 83720
Boise,ID 83720-0074
Avista offers a number ofprograms and serrriccs to hclp orstomcrs mqtrege their cnorgy use and costs. Visit
www.myavista.com for information ou theoo progrsms which inchlde Comfort trvel Billing, bill payment
options, automatod payment servicc, assietance programs, conservation tips, sod eugy efficicncy rcbates.
AVA5/I4i
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Contact:
Media: Casey Fielder (509) 4954916 [e-mail]
lnvestors : Stacey Wenz (509) 4954 1 7 1, stacev.wenz@avistacoro. com
Avista 2417 Media Access (509) 4954174
Avista Makes Price Adjustment Requests in Washington and ldaho
Overall changes in electric and natural gas pdces would be effective November 1, 2022
SPOKANE, Wash. September2,2022,4:05 p.m. PST: Avista (NYSE: AVA) has made annual
rate adjustment filings with the utility commissions in Washington and ldaho that, if approved, will
result in an increase in electric and natural gas rates in Washington and natura! gas rates in ldaho,
effective November 1, 2022
Washlngton Electrlc Adf ustment Fillngs
Two electric adjustments were filed, that if approved, are designed to change overall electric
revenues as follows:
1. Wildfire Expense Balancing: increase of approximately $5.1 million or 0.9%2. Residential Exchange Program: decrease of approximately $0.2 million or 0.1o/o
Washington Natural Gas Adiustment Flllng
The natural gas adjustment request is the annual naturalgas Purchased Gas Cost Adjustment. lf
approved, Avista's request is designed to increase overall naturalgas revenues by approximately
$25.0 million or 12.3o/o.
ldaho Natural Gas Adfustment Flllngs
Two natural gas adjustments were filed, that if approved, are designed to change overall natural
gas revenues as follows:1. Purchased Gas Cost Adjustment: increase of approximately $11.2 million or 12.7o/o
2. Natural Gas Energy Efficiency: increase of approximately $2.6 million or 3.0%
Purchased Gas Cost Adjustment (PGA) - Washington and ldaho Natural Gas
PGA requests are typically filed annually to balance the actual cost of wholesale natural gas
purchased by Avista to serve customers with the amount presently included in customer's rates.
Avista does not make a profit on, or markup, the wholesale cost of natural gas; PGAs ensure
customers pay what Avista pays, dollar for dollar, only at a more predictable and stable rate
throughout the year. About 55o/o ol an Avista natura! gas custome/s bill is the combined cost of
purchasing naturalgas on the wholesale market and transporting it to Avista's system.
This rate adjustment is driven primarily by higher wholesale natural gas prices. Since the last
annual PGA filings were made in2021, the price of wholesale natural gas increased with dramatic
sustained increases beginning in late March 2022, with prices reaching levels not seen in over 13
years.
Wildfire Balancing - Washington Electric
The Wildfire Expense Balancing account tracks the difference in wildfire expenses incuned by
Avista to address the growing frequency of extreme and dangerous wildfires in Avista's service
territory to the base level of expense approved by the Commission. The difference is rebated to
or collected from customers annually. The rate increase proposed today reflects the higher level
of expense incurred above the approved amount.
Residential Exchange Program - Washington Electric
The Residential Exchange Program provides a share of the benefits of the federal Columbia River
power system to the residential and small farm customers of the investor-owned utilities in the
Pacific Northwest, including Avista. Avista applies the benefits it receives, which typicallyfluctuate
from year to year, to customers as a credit in their monthly electric rates. Due to fluctuations in
usage, Avista rebated to customers a level of benefits that was slightly lower than the !eve! of
benefits received from BPA. Through this filing Avista is seeking to slightly increase the level of
benefits provided to qualiffing customers in order to return the under-rebated balance.
Energy Efficiency Adlustment - ldaho Natural Gas
The energy efficiency adjustment !s related to the funding of Avista's natura! gas energy efficiency
programs. This adjustment aligns the amount that is collected in customer rates with the actual
costs to run and deliver the programs. Avista's energy efficiency programs are designed to
provide a financial incentive or rebate for cosheffective energy efficiency measures. The
Commission approves the amount of funding for these important programs through a portion of
energy rates. The rate increase proposed reflects the higher level of funding needed to operate
the programs in the coming years.
Electric Gustomer Bills
Washington: !f approved, residential electric customers in Washington using an average of 932
kilowatt hours per month would see their monthly bills change from $85.07 to $85.87, an increase
of $0.80 per month, or approximately 0.9%.
lf approved, residential electric customers would see the following rate adjustments:
Residential Service - Schedule 1 & 2
GeneralService - Schedules 11 & 12
Large General Service - Schedules2l &22
Extra Large General Service - Schedule 25 &251
Pumping Service - Schedules 31 & 32
Street & Area Lights - Schedules 4148
Overall
0.9o/o
0.9%
0.9o/o
0.9%
0.9o/o
0.9%
0.9%
Natural Gas Gustomer Bills
Washlngton: !f approved, residential natural oas customers using an average of 67 therms per
month would see their monthly bills change from $72.66 to $81.59, an increase of $8.93 per
month, or approximately 12.3o/o.
The percentage change varies by rate schedule and is dependent upon how much energy
customers on the respective rate schedules use. lf approved, natural gas customers would see
the following rate adjustments:
ldaho: lf approved, residential natural qas customers using an average of 63 therms per month
would see their monthly bills change from $61.30 to $70.52, an increase of $9.22 per month, or
approximately 15.0%.
The percentage change varies by rate schedule and is dependent upon how much energy
customers on the respective rate schedules use. lf approved, natura! gas customers would see
the following rate adjustments:
General Service - Schedule 101 & 102
Large Genera! Service - Schedule 111 & 112
lnterruptible Sales Service - Schedule 131 & 132
Transportation Service - Schedule 146
Overall
General Service - Schedule 101
Large General Service - Schedule 111 & 112
lnterruptible Sales Service - Schedule 131 & 132
Transportation Service - Schedule 146
Overall
12.1%
14.4o/o
3.5o/o
0.Oo/o
12.3o/o
15.0o/o
18.3o/o
0.0o/o
0.0o/o
15.7o/o
To help customers proactively manage their energy use, Avista offers services to those who may
need and qualifies for assistance in managing their energy bills such as comfort level bi!!ing,
payment arrangements and special circumstantial refenals to area agencies and churches for
help with housing, utilities, medical assistance and other needs. Avista also provides funding for
energy assistance programs which are administered through community action agencies.
Energy efficiency and outreach programs are also offered which include rebates and incentives
as well as tips and resources to help customers manage their energy use and energy bills.
Customers can leam more at www.mvavista.com.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of
energy as well as other energy-related businesses. Avista Utilities is our operating division that
provides electric service to 408,000 customers and naturalgas to 375,000 customers. Our
service territory covers 30,000 square miles in eastem Washington, northern ldaho and parts of
southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary
that, through its subsidiary AEL&P, provides retail electric service to 17,000 customers in the
city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol "AVA". For
more information about Avista, please visit Wislqgs-gp.com.
This news release contains forward-looking statements regarding the company's cunent
expectations. Forward-looking statements are all statements other than historicalfacts. Such
statements speak only as of the date of the news release and are subject to a variety of risks
and uncertainties, many of which are beyond the company's control, which could cause actual
results to differ materially from the expectations. These risks and uncertainties include, in
addition to those discussed herein, all of the factors discussed in the company's and the
Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and its Annual Report on
Form 10-K for the year ended Dec. 31 ,2021
Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation
SOURCE: Avista Corporation
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