Idaho Public Utilities Commission conducting prudency review of Avista efficiency programs

The Idaho Public Utilities Commission (PUC) recently began a prudency review of Avista Utilities’ energy efficiency programs in 2016 and 2017.

Avista spent approximately $23 million on the programs. The PUC must determine that the money spent on the programs was prudently incurred to be funded through the Energy Efficiency Rider paid by Avista customers.

If the commission finds that the programs were not cost-effective, the expenses are supported by shareholders, rather than ratepayers.

Residential customers pay 0.395 cents per kilowatt-hour used for the programs, which are referred to as Demand Side Management (DSM).

The programs must pass several tests designed to determine whether the savings realized is greater than the cost of the programs. They also must benefit all customers, not just those that participate in them.

According to Avista, its efficiency and conservation programs saved approximately 38,149 megawatt-hours (MWh) in 2016, and 42,223 MWh in 2017. The company’s two-year goal was 22,399 MWh.

Of the $22,719,204 spent on the programs, Avista paid 74 percent to Idaho customers in direct incentives such as rebates, home energy audits and low-income weatherization assistance, according to the company.

Avista contracted with a third party, Nexant, to evaluate, measure and verify its DSM programs.

Parties who wish to intervene in the prudency review, to present evidence or cross-examine parties, must do so by Jan. 2, 2019. The PUC is currently accepting comments, and no deadline has been set.