20110926Application for Funding.pdf

Benjamin J. Otto ISB No. 8292
710 N 6th Street
Boise,ID 83701
Ph: [phone] x 12
Fax: (208) 344~0344
bottoCPidahoconservation .org
Attorney for Idao Conservtion League
RECEiVED
2011 SEP 26 A~l 8: 40
BEFORE TH IDAHO PUBliC UTIUTES COMMISSION
IN TH MAlTR OF THE
APPliCATION OF A VISTA
CORPORATION DBA A VISTA
UTIliTIES FOR AUTHORIT TO
INCREASE ITS RATES AND
CHARGES FOR ELECTRIC AND
NAUTRL GAS SERVICE IN IDAHO
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CASE NO. AVU-E-ll-OI
A VU-G-ll-OI
APPLICATION FOR
INTERVENOR FUNING
COMES NOW, the Idaho Conservation League ("ICL"), pursuant to Idao Code § 61-617A and
IDAPA 31.01.01.161-165 with the following application for intervenor fuding. On Augut 5,
2011, in Order No 32317, the Commission granted ICL's intervenor status.
I. Idaho Code § 61-617A and IDAPA Rule 31.01.01.161 Requirement
A vista Corporation, doing business as A vista Utilties, is a regulated public utilty with
gross Idaho intrastate, anual revenues exceeding thee milion, five hundred thousand dollar
($3,500,000.00).
II. IDAPA Rule 31.01.01.162 Requirements
1. Itemized list of Expenses
The attched Exhibit A is an itemized list of expenses incured by ICL in this proceeding.
2. Statement of Proposed Findings
The parties entered into a stipulation and settlement of this case on August 26,2011. ICL
signed the stipulation and believes the Commission should approve it. This application for
ICL Application for Intervenor Funding 1 September 23,2011
intervenor fuding is to support ICL's efforts is preparng for the case and paricipating in the
settlement negotiations. Durng these negotiations, ICL argued for settlement terms unique to
the PUC Staff and other parties. ICL specifically argued for several terms that appear in the
stipulation including: withdrawing Avista's request to decrease the energy efficiency rider in
A VU-E-11-02, an agreement to discuss the merits of inclining or declining block rates for
service schedules 11, 21, 25 and 31 prior to the next general rate case, and limiting the residential
service charge increase to $0.25 for both electrc and gas customers. In addition, ICL argued
against terms proposed by A vista that do not appear in the stipulation -- the proposed energy
effciency load adjustment, and decreasing the natual gas effciency tariff riders. Finally,ICL
joined the other customer groups and Staff in limiting the overall revenue requirement. Section 5
of this application explains how these positions differed from the Staff.
3. Statement Showing Costs
ICL requests $ 3,625 in intervenor fuding, as shown in Exhibit A, only for attorney's
fees. Both the hourly rate and hour expended are reasonable for this complex case. ICL's
attorney biling rate is below the curent range for other intervening parties to account for his
fewer years of experience.
4. Explanation of Cost Statement
ICL is a nonprofit organization supported solely through charitable donations from
foundations and our members. In this proceeding, ICL represents its member and supporters
who are ratepayers of A vista, as well as those who have an interest in promoting energy
efficiency throughout Idaho. To provide consistent, professional, and impactful advocacy for
our members and supporters ICL has shifted its budgeting to dedicate a full-time, highly trained
ICL Application for Intervenor Funding 2 September 23,2011
staff member to energy issues. The cost of employing and training this staff member is a
significant financial commitment in a time of diffcult fudrising. Because chartable
contributions are inherently unstable, the availabilty of intervenor fuding is essential for ICL to
paricipate in these in proceedings.
5. Statement of Difference
The stipulation both includes and omits terms ICL argued for and against that are distinct
from the Staff s positions or where not addressed by the Staff.
ICL argued against a proposal to reduce the electrc efficiency rider to offset the rate
increase. Our basis for this position, that rider fuding should only be tied to effciency
potential, is distinct from the Staff position that the reduction was so small that the benefit to
customers of rate stabilty overrode the need to reduce fuding. As a result, the stipulation
includes Avista's commitment to withdraw their request to reduce the electrcal effciency rider
filed in Case A VU-E-11-02. While the result is the same, ICL provided a distinct arguent that
influenced this outcome.
At one point the paries considered a reduction in the natual gas effciency rider as a
means to offset the gas rate increase. Staff initially supported this term arguing that the proposed
reduction would leave suffcient fuding for effciency. ICL rejected the notion of using rider
fuding to offset rate increases and argued the issue should be addressed in the curent separate
case A VU-G-11-03, a process that did in fact occur. The stipulation describes a potential
reduction in the gas efficiency rider as "ilustrative" and not par of the stipulation.
ICL also argued against two proposed terms that did not appear in the stipulation.
Avista's direct testimony included a new Energy Effciency Load Adjustment. Durng
negotiations, Staff initially expressed interest in a settlement term establishing a process to
ICL Application for Intervenor Funding 3 September 23,2011
review this proposal though a separte proceeding, similar to the process used for Idaho Power's
fixed cost adjustment. ICL argued against this mechanism as a poor policy choice to address
disincentives for the company to invest in energy efficiency and urged the parties to reject the
mechanism outrght.
Finally, ICL is the only par that addressed rate design issues. Avista's general service
and irrgation rate schedules all include declining block rates for the energy charge component.
ICL believes declining blocks do not send a conservation signal and thus should be changed. To
address this issue ICL exacted a commitment to review the merits of these rate designs in the
fortcoming cost of service workshops. For residential customers, A vista's direct testimony
requested an increase in the service charge of$1.00 for both electrc and gas. ICL is the only
par who addressed this issue and reduced the increase to only $0.25.
6. Statement of Recommendation
ICL's positions, reflected by terms both included and excluded from the stipulation,
address issues germane to all of Avista's customers. Since every customer pays the energy
effciency riders, the level affects every customer. Likewise, the proposed energy effciency load
adjustment would have affected the overall revenue requirement, an issue that affects every
customer. ICL is the only part who addressed rate design issues. The stipulation includes
adjustments to the residential service charge that has an immediate impact, as well as
commitments to review the rate designs for all other classes before the next rate case.
7. Statement Showing Class of Customer
ICL's has individual member and supporters are residential customers of Avista in Idaho.
ICL Application for Intervenor Funding 4 September 23,2011
WHEREFORE, ICL respectfully requests the Commission grt this application.
DATED this 23rd day of September 2011.
ICL Application for Intervenor Funding
Re~fuY ::
Benjamin J. Otto
On behalf of the Idao Conservtion Leage
5 September 23,2011
EXHIT A
Attorney Fees for Benjamin J. Otto - Total: $3,625
29 Hour at $125 per hour
7/30/11 Initial review of Avista testimony to identify 1:45
issues
8/1/11 Review policy context, rate of retur, and 0:45
financial testimony
8/2/11 Review power costs and cost of servce 1:15
testimony
8/3/11 Create discovery log, process Staff request #2 0:30
8/3/11 Review A vista 2011 IRP re: load growth, power 2:30
supply, and DSM issues
8/8/31 Review testimony on rate design and energy 1:45
efficiency load adjustment
8/8/31 Review Avista Dockets in Washigton re:3:30
decoupling and energy efficiency load
adjustment
8/9/11 Prepare case outline and materials for 2:30
settlement
8/10/11 Prepare case outline and materials for 1:45
settlement
8/16/11 Discovery log: process Staff thid request and 1:00
Avista's responses
8/16/11 Prepare for settlement 1:30
8/17/11 Settlement negotiations 6:00
8/23/11 Review stipulation and conf with other paries 0:30
re: I CL position
8/24/11 Conf with Avista re stipulation terms 0:30
8/24/11 Review stipulation and provide edits 0:30
8/25/11 Review final stipulation and submit signature 0:30
9/23/11 Prepare application for intervenor fundig 2:15
ICL Application for Intervenor Funding 6 September 23,2011
CERTIFICATE OF SERVICE
I hereby certify that on this 23rd day of September 2011, I delivered tre and
correct copies of the foregoing APPLICATION FOR INRVENOR FUNING to the
following persons via the method of service noted:
US MAIL:
Jean Jewell
Commission Secretar (Origial and seven copies provided)
Idao Public Utilties Commission
427 W. Washington St.
Boise, ID 83702-5983
Electronic Mai:
A vita
David J. Meyer, Esq.
Vice President & Chief Counsel,
Reguatory and Government Affai
A vista Corporation
P.O. Box 3727
1411 E. Mission Ave.
Spokane, WA 99220-3727
DavidmeyerCavistacorp.com
Clearwater Paper
Peter J. Richardson
Gregory M. Adas
Richardson & O'lear, PLLC
515 N. 27th Street
Boise, ID 83702
peterCrichardsonan dolear.com
gregCrichardson an dolear. com
Kelly Norwood
Vice President - State and Federal
Reguation
A vista Corporation
P.O. Box 3727
1411 E. Mission Ave.
Spokane, WA 99220-3727
Kelly.norwoodCPavistacorp.com
Idaho Forest Group
Dean J. Miler
McDevitt & Miler, LLP
P.O. Box 2564
Boise, ID 83701
joeCPmcdevitt -miler. com
CAPAI
Brad M. Purdy
Attorney At Law
2019 N. 17th st
Boise, Id 83702
bmpurdyChotmai.com
isif; -i,
Benjamin J. Otto
Certificate of Service September 23,2011