20081124_2411.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: NOVEMBER 19, 2008

SUBJECT: IDAHO POWER’S PETITION REQUESTING APPROVAL OF
MODIFICATION OF IRRIGATION PEAK REWARDS PROGRAM,
CASE NO. IPC-E-08-23

On November 7, 2008, Idaho Power Company filed a Petition requesting
authorization to modify its Irrigation Peak Rewards Program consistent with the terms of a
Settlement Stipulation signed by the Company, the Idaho Irrigation Pumpers Association, Inc.
and Staff. The Stipulation calls for a new dispatchable interruption option to be added to the
Peak Rewards Program. This option will enable Idaho Power to dispatch service interruptions
remotely to specified irrigation pumps between the hours of 2 p.m. and 8 p.m. any weekday
during the irrigation season. The Stipulation also maintains the currently available timer
program as an option. Under this option, the Company installs a timer-based load control device
on the customer’s electrical panel controlling the irrigation pumps at the metered service point.
The timer is set to interrupt specified irrigation pumps on a designated weekday or days selected
by the customer. The Stipulation also calls for installation fees depending upon the size of the
irrigation system associated with a participating metered service point.
Not part of the Stipulation, the Company also filed direct testimony of its witness to
recommend recovering peak reward program expenses in the Company’s Power Cost
Adjustment (PCA) mechanism. The testimony suggests that in promoting cost-effective demand
side management (DSM) resources, the Commission should consider funding sources in addition
to the DSM rider funding approach. Apart from the terms of the Stipulation, the Company
DECISION MEMORANDUM 2
proposes that all of the peak reward program incentive related expenses be included in PCA
rates.
Idaho Power requests that its Petition be processed by Modified Procedure. Staff
recommends that the Company’s Petition to modify the Irrigation Peak Rewards Program and to
allow the Company to recover the costs of the program in its PCA be processed by Modified
Procedure with a 45-day comment period.
COMMISSION DECISION
Should Idaho Power’s Petition for authorization to modify the Irrigation Peak
Rewards Program and to allow the Company to recover the cost of the program in its PCA be
processed by Modified Procedure with a 45-day comment period?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-08-23_ws