20090406_2523.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: APRIL 1, 2009

SUBJECT: CASE NO. IPC-E-09-05
IDAHO POWER’S APPLICATION TO INCREASE THE ENERGY
EFFICIENCY RIDER

On March 13, 2009, Idaho Power Company filed an Application for Commission
approval of an increase to its Energy Efficiency Rider, Tariff Schedule 91, from 2.5% to 4.75%
of base revenues effective June 1, 2009. The Energy Efficiency Rider is a Commission-
approved means for Idaho Power to raise funds to support its demand-side management (DSM)
or conservation programs. The Rider initially approved in 2002 was a $.30 per month charge to
residential customers and a cents-per-kilowatt hour charge for all other customer classes, and
provided approximately $2.6 million annually for DSM programs. In 2004, the Commission
approved an increase in the Rider to 1.5% of base revenue applied uniformly to all customer
classes. In 2008, the Commission approved an increase in the Rider to 2.5% of base revenue,
effective June 1, 2008, which collects approximately $17.4 million per year for Idaho Power’s
DSM programs.
The Company’s Application states that its expected DSM program expenditures for
2009 will be $29,668,429. The Company alleges that if the Rider is not increased as proposed,
the deficit balance in the Rider funded account is expected to grow to $16.2 million by year-end
2009. If the Rider is increased to 4.75% of base revenues, Idaho Power expects the Rider to
collect approximately $33 million per year.
Idaho Power requests that its Application to increase the Energy Efficiency Rider
from 2.5% to 4.75% of base revenue be processed by Modified Procedure. Staff recommends
DECISION MEMORANDUM 2
that the Commission issue a Notice of Application and Notice of Modified Procedure to establish
a comment period and process Idaho Power’s Application.
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Modified
Procedure to process Idaho Power’s Application for an increase in the Energy Efficiency Rider?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-09-05_ws