BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA Application of NEVADA POWER COMPANY d/b/a NV Energy and SIERRA PACIFIC POWER COMPANY d/b/a NV Energy, seeking approval to add 1,001 MW of renewable power purchase agreements and 100 MW of energy storage Docket No. 18-06___ capacity, among other items, as part of their joint 2019-2038 integrated resource plan, for the three year Action Plan period 2019-2021, and the Energy Supply Plan period 2019-2021 VOLUME 3 OF 18 TESTIMONY DESCRIPTION PAGE NUMBER TESTIMONY Anita L. Hart 2 Robert R. Oliver 54 Marc D. Reyes 68 Patricia Rodriguez 91 Ingrid Rohmund 103 Joseph Sinobio 126 David Ulozas 132 Sachin Verma 185 ANITA L. HART Page 2 of 198 1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA 2 Nevada Power Company d/b/a NV Energy Sierra Pacific Power Company d/b/a NV Energy 3 2018 Joint Integrated Resource Plan (2019-2038) 4 Docket No. 18-06_____ 5 PREPARED DIRECT TESTIMONY OF 6 Anita Hart 7 8 I. INTRODUCTION AND PURPOSE OF TESTIMONY 9 1. Q. PLEASE STATE YOUR NAME, OCCUPATION, BUSINESS 10 ADDRESS AND PARTY FOR WHOM YOU ARE FILING 11 TESTIMONY. 12 A. My name is Anita L. Hart. My current position is Director, Demand Side 13 Management, for Nevada Power Company d/b/a NV Energy (“Nevada d/b/a NV Energy 14 Power”) and Sierra Pacific Power Company d/b/a NV Energy (“Sierra” Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 together with Nevada Power, the “Companies”). My business address is 16 6226 West Sahara Avenue in Las Vegas, Nevada. I am filing testimony on 17 behalf of the Companies. 18 19 2. Q. PLEASE DESCRIBE YOUR BACKGROUND AND EXPERIENCE 20 IN THE UTILITY INDUSTRY. 21 A. My professional experience includes 25 years in the utility industry and I 22 have a Master of Arts in Economics with an emphasis in Public Utility 23 Regulation. I have worked for the Companies since 2008. In addition to 24 Hart - IRP DIRECT 1 Page 3 of 198 1 Director and Consultant Staff positions in the Demand Side Management 2 organization, I was also assigned to the resource planning organization in 3 the role of Manager of Gas Transportation Planning. In that role I was 4 responsible for the planning and analysis of natural gas transportation 5 needs and ensuring sufficient supply to the generation fleet and Sierra’s 6 natural gas customers. 7 8 Prior to joining the Companies, I was employed as the Manager of 9 Demand Side Management and Market Research at Southwest Gas 10 Corporation (“SWG”). Over a span of 15 years my key responsibilities at 11 SWG included: 1) resource planning and demand forecast modeling and 12 analysis; 2) development and maintenance of tariffs, applications, and 13 filings before three state regulatory agencies, consistent with regulatory, d/b/a NV Energy 14 legal and company requirements; 3) development, approval, Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 implementation and management of demand side management (“DSM” or 16 conservation and energy efficiency “CEE”) and low-income programs; 17 and 4) market research. More details regarding my background and 18 experience are provided in Exhibit Hart-Direct-1. 19 20 3. Q. PLEASE DESCRIBE YOUR RESPONSIBILITIES AS DIRECTOR, 21 DEMAND SIDE MANAGEMENT. 22 23 24 Hart - IRP DIRECT 2 Page 4 of 198 1 A. As the Director of Demand Side Management I am responsible for the 2 development, analysis and implementation of a cost-effective portfolio of 3 electric and natural gas DSM and CEE programs. 4 5 4. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC 6 UTILITIES COMMISSION OF NEVADA (“COMMISSION”)? 7 A. Yes, I have testified in several proceedings before the Commission, in 8 addition to the California Public Utilities Commission and the Arizona 9 Corporation Commission. Most recently I provided testimony addressing 10 demand side issues before this Commission in Docket Nos. 17-06043 and 11 17-06044. 12 13 5. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? d/b/a NV Energy 14 A. My testimony describes and summarizes the Companies’ joint DSM Plan (the Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 “DSM Plan”). The DSM Plan provides the results of the 2017 program year, 16 a status update on the 2018 program year, and documents the analysis used 17 by the Companies to develop a new joint DSM Plan for the three year Action 18 Plan period 2019-2021. The DSM Plan is built around a portfolio of programs 19 that is cost-effective at the plan level, that allocates at least 5 percent of the 20 budget for low income customers, and results in annual energy savings of at 21 least 1.1 percent of the statewide (Nevada Power and Sierra combined) 22 weather normalized retail sales forecast. Also included with the DSM Plan 23 are Measurement and Verification (“M&V”) reports for the 2017 program 24 Hart - IRP DIRECT 3 Page 5 of 198 1 year, for which the Companies’ seek approval. Together with Mr. Robert 2 Oliver, I sponsor the M&V reports contained in Technical Appendices DSM- 3 5 through DSM-20. In addition, together with Ms. Rohmund, I support the 4 Market Potential Study contained in Technical Appendix DSM-21. I sponsor 5 and support all parts of the DSM Plan not sponsored or supported by 6 witnesses Mr. Oliver and Ms. Rohmund. 7 8 Also related to the DSM Plan, I support the Companies’ request that the 9 Commission find that the Companies have complied with Directives 10 paragraph 6 of the Commission’s Order dated December 23, 2016 in 11 consolidated Docket Nos. 16-07007 and 16-07001. 12 13 6. Q. ARE YOU SPONSORING ANY EXHIBITS? d/b/a NV Energy 14 A. Yes. I am sponsoring the following exhibits: Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 Exhibit Hart-Direct-1 Statement of Qualifications 16 Exhibit Hart-Direct-2 2017 DSM Program Results 17 Exhibit Hart-Direct-3 2019-2021 DSM Plan Targets 18 19 7. Q. PLEASE PROVIDE AN OVERVIEW OF YOUR TESTIMONY. 20 A. Section II of my testimony, discusses the 2017 program year results. 21 Section III, provides an overview of Senate Bill 150 (“SB 150”) and 22 Assembly Bill 223 (“AB 223”) adopted in 2017. Section IV, describes the 23 process of developing a Demand Side Plan. Section V, summarizes the 24 Hart - IRP DIRECT 4 Page 6 of 198 1 DSM Plan and discusses enhancements the Companies have made in this 2 filing to the portfolio of programs. Finally, in Section VI, I address 3 compliance items and directives. 4 5 SECTION II: SUMMARY OF PROGRAM YEAR 2017 RESULTS 6 8. Q PLEASE SUMMARIZE THE PERFORMANCE OF NEVADA 7 POWER’S DSM PORTFOLIO FOR 2017. 8 A. At Nevada Power, the portfolio of DSM programs delivered in 2017 9 achieved a total resource cost (“TRC”) benefit to cost ratio of 2.30 and 10 will provide more than $97 million dollars of net benefits to customers 11 over the lives of the measures installed. Nevada Power surpassed its 12 energy savings targets but fell slightly short of its demand savings targets. 13 Expenditures remained within the approved budget. Total verified energy d/b/a NV Energy 14 savings for the 2017 program were 191,057,956 kWh (129.4 percent of Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 the target of 147,597,000 kWh). The demand savings totaled 247,720 kW 16 (94.8 percent of the target of 261,426 kW). Total DSM portfolio 17 expenditures were $39,390,297 (91.6 percent of the budget of 18 $43,000,000, includes recaptured funds1). 19 20 21 22 1 “Recaptured funds” refers to prorated rebates that were provided to NRS Chapter 704B customers 23 Wynn and MGM during 2017, and that as a condition of their authorization to transition to Distribution Service Only status were required to be refunded to retail customers. 24 Hart - IRP DIRECT 5 Page 7 of 198 1 Notable among the program results were the savings achieved through the 2 Commercial Services program, Schools program and the Commercial 3 Demand Response – Manage program. Each of these programs 4 significantly exceeded its targeted energy savings for 2017. Residential 5 Air Conditioning, Residential Demand Response – Manage, Residential 6 Demand Response – Build and Commercial Demand Response - Build 7 programs fell short of targeted energy savings. 8 9 Table DSM-4A, 2017 Financial Results, and Table DSM-5A, 2017 10 Demand and Energy Savings Results, found in Section 2 of the DSM 11 Narrative in this filing provides the performance for the portfolio in 12 aggregate and for each program at Nevada Power. A more detailed 13 description and analysis of the performance of each program in 2017 is d/b/a NV Energy 14 included in the program data sheet for each program provided in Sections Nevada Power Company Company Power Nevada and Sierra Pacific Power Company and Sierra Pacific Power Company 15 5 through 7 and in the M&V Reports for each program provided in 16 Technical Appendix Items DSM-5 through DSM-20. 17 18 As explained in Sections 5 through 7, the performance and results for each 19 program at Nevada Power in 2017 were evaluated and became a key input 20 for the design of the programs proposed for implementation in the 2019- 21 2021 Action Plan period.