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HomeMy WebLinkAbout20250303INT to Staff 8-21.pdf RECEIVED March 3, 2025 IDAHO PUBLIC UTILITIES COMMISSION Preston N. Carter, ISB No. 8462 Morgan D. Goodin, ISB No. 11184 GIVENS PURSLEY LLP 601 West Bannock Street P.O. Box 2720 Boise, Idaho 83701-2720 (208) 388-1200 prestoncarter@givenspursley.com morgangoodin@givenspursley.com 18813504.1 [14168.18] Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION Case No. INT-G-24-05 OF INTERMOUNTAIN GAS COMPANY FOR A DETERMINATION OF 2023 INTERMOUNTAIN GAS COMPANY'S ENERGY EFFICIENCY EXPENSES AS RESPONSE TO THE SECOND PRODUCTION PRUDENTLY INCURRED AND REQUEST OF COMMISSION STAFF APPROVAL OF RATE SCHEDULE EE-RS In response to the Second Production Request of the Commission Staff to Intermountain Gas Company("Intermountain Gas" or"Company") dated February 10, 2025, Intermountain Gas submits the following responses. Confidential responses and documents are subject to the protective agreement in this case, and are available for download using a password-protected link that will be provided separately by email. The password will be provided in a separate email. Dated: March 3, 2025. GIVENS PURSLEY LLP By Is/Preston N. Carter Preston N. Carter Givens Pursley LLP Attorneys for Intermountain Gas Company RESPONSES TO STAFF'S SECOND PRODUCTION REQUEST PAGE I OF 2 CERTIFICATE OF SERVICE I hereby certify that on March 3, 2025, I caused to be served a true and correct copy of the foregoing document to the person(s) listed below by the method indicated: Monica Barrios-Sanchez ® Email Commission Secretary ❑ U.S. Mail Idaho Public Utilities Commission ❑ Fax P.O. Box 83720 ❑ Hand Delivery Boise, Idaho 83720-0074 monica.barriossanchez(d_puc.idaho.gov secretgagpuc.Idaho.gov /s/Preston N. Carter Preston N. Carter RESPONSES TO STAFF'S SECOND PRODUCTION REQUEST PAGE 2 OF 2 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 8: Please provide the Energy Efficiency Program Impact Evaluation Guide referenced in the Application in footnote 4. RESPONSE NO. 8: The Impact Evaluation Guide referenced in the Application in footnote 4 is included as the file "INT-G-24-05-PR 8—SEE Action Energy Efficiency Program Impact Evaluation Guide." This guide was provided to the Company by IPUC Staff during initial discussions on best practices as the Intermountain Energy Efficiency Program was being established. INT-G-24-05 IPUC Staff PR 8 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 9: Please explain how the proposed deemed savings approach for evaluations better reflects actual savings on the Company's system more than a savings value informed by billing analysis. RESPONSE NO. 9: The proposed deemed savings approach for evaluations provides a transparent method for evaluation that is determined at the time of program planning. However, the Company understands the deemed savings value should incorporate billing analysis results when billing analysis is feasible. The Company's Technical Reference Manual (TRM) is based on guidance from ADM Associates, Inc. The process for determining how to savings values is outlined in a memorandum prepared by ADM Associates, Inc. and included as "CONFIDENTIAL - INT-G- 24-05 PR 9_TRM Update": "If a billing analysis completed during impact evaluation displays statistically significant results, the billing analysis results would therefore represent the actual observable energy savings demonstrated by the IGC customers who installed the measure, and therefore is more accurate than the assumed deemed savings and its assumptions. However, the TRH deemed savings units and its assumptions stand as a unit energy savings source in the case billing analysis is infeasible. If a billing analysis is infeasible, likely due to low participation, or lack of statistical significance, the engineering algorithms will be used to estimate savings. This provides the company with a secondary method for estimating verified savings should billing analysis be infeasible for a given measure. In the case of the Company's residential program, the storage tank water heater, combi boiler, boiler, and tankless water heater did not have enough participation to enable a statistically significant billing analysis in the current evaluation, so savings were verified via savings methods as discussed in detail in Supplement 1 to the 2023 Annual Report. INT-G-24-05 IPUC Staff PR 9 Page 1 of 3 The furnace and smart thermostat measures did have enough data to perform a statistically significant billing analysis. The Company, in collaboration with the Evaluator, reviewed the resulting billing analysis in comparison to the unit energy savings (UES)values provided by the Regional Technical Forum (RTF). Because the billing analysis results were relatively close to the UES values, the Company chose to use the RTF values for the 95 and 97% efficient furnaces in a weighted rebate based on actual participation data from the EM&V study. In the last couple of weeks, the Company has become aware that the RTF has updated their savings estimates for furnace measures. Based on this information, the Company believes it will be appropriate to discuss this new information with Commission Staff and adjust the furnace rebate proposal accordingly. Although the billing analysis results for the smart thermostat were actually slightly higher than the RTF values, the Company again chose to use the RTF value. For the Whole Home rebates, the Company is proposing to use the RTF New Homes Protocol, which is modeled savings, as the deemed savings. The Whole Home new construction measures were evaluated using modeling in the 2024 EM&V impact evaluation. Although the Evaluators attempted to conduct a billing analysis, the Evaluators suggested that evaluating new construction projects using billing analysis is not an approved best practice. In Supplement 1 to the 2023 Annual Report, pages 28 through 32, the Evaluator outlines the reasons billing analysis is not the appropriate evaluation method. For convenience, the summary of the four concerns with using billing analysis for residential new construction is included below. The Evaluator provides detail on each of these concerns in Supplement 1,pages 28 through 32. 1. Other Idaho Utilities: Other Idaho utilities evaluate their residential new construction programs through energy modeling software, in line with the methods completed in Section 4.1.5. INT-G-24-05 IPUC Staff PR 9 Page 2 of 3 2. RTF New Homes Protocol: The Regional Technical Forum has published a"New Homes Protocol", which stipulates that residential new construction programs are evaluated through energy modeling software. 3. Lack of Randomized Control Trial: Billing analysis with matched control groups are unable to eliminate bias in control group creation due to lack of randomization 4. Further Increased Bias: Further bias is introduced in control group creation due to lack of pre-period consumption data and occupancy data for the program and non-program homes. INT-G-24-05 IPUC Staff PR 9 Page 3 of 3 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 10: Please explain how the proposed deemed savings approach for evaluations allows for adjustments to the assumed savings value in the future to better reflect actual savings on the Company's system. RESPONSE NO. 10: In the file "CONFIDENTIAL - INT-G-24-05 PR 9—TRM Update", Evaluators have provided a recommended cycle of planning, evaluation, and updates, including recommended frequency for evaluation and TRM updates. This means that based on the proposed evaluation plan included on INT-G-24-05, Exhibit No. 1, Page 22, the program would undergo an EM&V impact evaluation with a resulting TRM review and update that would incorporate the results of the evaluation in 2027. It is the Company's intent to update the TRM with results from each EM&V impact evaluation. The TRM may also need to be updated if there are changes to any of the resources upon which the TRM is broadly based. One example of this process is the very recent Regional Technical Forum update for furnaces that is discussed further in the Response to Production Request No. 9. Topics of Interest Recommendation Program planning approach ADM recommends that for future program planning, for deemed savings Intermountain Gas Company utilize the estimated measure-level savings presented in the Technical Reference Manual as reasonable deemed, prescriptive savings INT-G-24-05 IPUC Staff PR 10 Page 1 of 2 Future evaluations Once a timeline of activities is approved by the methodology for validating Commission, ADM recommends the impact evaluation deemed savings from independently verify the deemed savings established in Technical Reference Manual the TRM using primary project-level details and/or facility consumption data and methodology aligns with the four options provided in the Department of Energy IPMVP Cadence of impact evaluation ADM recommends Intermountain Gas Company and Technical Reference complete an impact evaluation report of its Residential Manual update activities and Commercial Program every one to two years, and a TRM update aligning TRM assumptions to impact evaluation results every two to four years INT-G-24-05 IPUC Staff PR 10 Page 2 of 2 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 11: Please explain how the Company will"align evaluation practices"when each peer utility maintains evaluation practices that are not aligned. RESPONSE NO. 11: By proposing the use of a Technical Reference Manual (TRM) in this proceeding, the Company is attempting to align its practices with the way other utilities in Idaho use TRM deemed savings in program planning, verify program-level savings,update TRM assumptions, and plan the cadence of each of the previous activities mentioned. The "CONFIDENTIAL - INT-G-24-05 PR 9—TRM Update"provides recommendations for improvement of the Intermountain Gas Energy Efficiency Program based on aligning with the process followed by other Idaho utilities. If the assessment of the Evaluator is incorrect, the Company would like to collaboratively work with Commission Staff to edit the document which the Company hopes will form the basis of a procedure document going forward. INT-G-24-05 IPUC Staff PR 11 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 12: Please provide the 2023 CPA participation forecast for each of the Residential and Commercial measures in excel format. RESPONSE NO. 12: In the attached file, "CONFIDENTIAL_INT-G-24-05-PR 12—Measure Inputs Database", column Y is the `Baseline Initial Saturation," and column Z is the "Efficient Measure Initial Saturation" field. These two columns represent how much of the building stock has already adopted the efficient level of the technology(versus the portion that has the baseline and thus is available to adopt the efficient measures). To use the residential furnace measure as an example, the assumption is that 18.9% of households already have a 95 AFUE or better furnace, meaning that 81.1% of the stock is at the baseline of 80 AFUE or below and remains available to contribute to savings potential. INT-G-24-05 IPUC Staff PR 12 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE No. INT-24-05 RESPONSE TO PRODUCTION REQUEST NO. 12 CONFIDENTIAL ATTACHMENT PROVIDED UNDER SEPARATE COVER INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 13: Please explain how the Company incorporated past evaluation results into the new Technical Resource Manual ("TRM"). Additionally, please answer the following questions: a. Please specify if and how the results of the 2020 EM&V (i.e.,billing analysis and simulation analysis) were used to inform the deemed savings amounts; and b. Please specify if and how the results of the 2024 EM&V (i.e.,billing analysis and deemed savings analysis)were used to inform the deemed savings amounts. RESPONSE NO. 13: The Company used the results of the 2020 EM&V to redesign the rebates that were studied in that analysis. Those redesigned rebates were implemented in April 2021. The 2024 EM&V analysis was performed on the rebates implemented in 2021.Although the Company provided both EM&V studies to the Evaluator that developed the IGC Technical Reference Manual (TRM), the most applicable data is the most recent, so the data from the 2024 EM&V was used to inform deemed savings in the TRM. a. The results of the 2020 EM&V(i.e., billing analysis and simulation analysis)were not used to inform the deemed savings amounts in the IGC TRM. Based on the recommendation from the Evaluator, a prior evaluation would only be used to inform future savings if updated evaluation of a rebate was not feasible and could not be performed. In that case a prior evaluation could be used. b. The Company used the results of the 2024 EM&V to inform the development of the TRM. In the case of the storage tank water heater, combi boiler, boiler, and tankless INT-G-24-05 IPUC Staff PR 13 Page 1 of 3 water heater there was not enough participation to enable a statistically significant billing analysis in the current evaluation, so savings were verified via savings methods as discussed in detail in Supplement 1 to the 2023 Annual Report. These measures relied on the recommendations from the 2024 EM&V to develop deemed savings numbers in the TRM. The furnace and smart thermostat measures did have enough data to perform a statistically significant billing analysis. The Company, in collaboration with the Evaluator, reviewed the resulting billing analysis in comparison to the unit energy savings (UES) values provided by the Regional Technical Forum(RTF). Because the billing analysis results were relatively close to the UES values, the Company chose to use the RTF values for the 95 and 97% efficient furnaces in a weighted rebate based on actual participation data from the EM&V study. In the last couple of weeks, the Company has become aware that the RTF has updated their savings estimates for furnace measures. Based on this information, the Company believes it will be appropriate to discuss this new information with Commission Staff and adjust the furnace rebate proposal accordingly. Although the billing analysis results for the smart thermostat were slightly higher than the RTF UES values, the Company chose to use the RTF value for deemed savings. For the Whole Home rebates, the Company is proposing to use the RTF New Homes Protocol, which is modeled savings, as the deemed savings. The Whole Home new construction measures were evaluated using modeling in the 2024 EM&V impact evaluation. Although the Evaluators attempted to conduct a billing analysis, the Evaluators suggested that evaluating new construction projects using billing analysis is INT-G-24-05 IPUC Staff PR 13 Page 2 of 3 not an approved best practice. The TRM relies on the findings of the 2024 EM&V study as the basis for using the RTF New Homes Protocol as the deemed savings. INT-G-24-05 IPUC Staff PR 13 Page 3 of 3 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 14: Please explain how future evaluation results will be included into the new TRM. RESPONSE NO. 14: Based on Evaluator guidance provided in the file "CONFIDENTIAL - INT-G-24-05 PR 9—TRM Update", the Company will update the TRM following an EM&V impact evaluation. Page 7 of the above referenced document walks through an example of how the TRM would be updated. An excerpt from page 7 is provided below. Once the evaluation is completed and verified savings are completed by a third party evaluator, the evaluator may suggest that IGC update the TRM to align with the results of the impact evaluation. If the measure is already included in the TRH, this may be suggested in the case that the evaluator references more up to date engineering algorithm assumptions, such as an update in the RTF workbooks, an update on EFLH assumptions, or if a billing analysis was completed, which more accurately reflects actual observed energy savings on the IGC system. IGC may then request the TRH to be updated using the impact evaluation results. Whether or not the TRM is officially updated to reflect the impact evaluation results, which requires additional budgeting, contracting, and time, IGC may choose to select the impact evaluation result savings per unit for future program year claimed savings or choose to select the current TRH savings per unit for future program year claimed savings. This decision may be informed by the magnitude of discrepancy found between the impact evaluation resulting savings value and the TRH deemed savings value, typically a discrepancy equal to or more than 10%. It is important, however, that IGC track and reference the impact evaluation report or TRM section selected to identify unit-level claimed savings for the measure,for example, in a workbook,for each measure type rebated in the program year. It is important that the Commission is able to assess whether the source of the claimed savings value is reasonable to use. The prior year impact evaluation report and the TRH are both reasonable sources for claimed savings. IGC may then start planning the next program year cycle and expected savings for each measure. From here, the process starts again. INT-G-24-05 IPUC Staff PR 14 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 15: Please explain how frequently the Company plans to update its TRM. RESPONSE NO. 15: In the application in this case, Exhibit No. 1, Page 22, the Company provided a proposed evaluation plan for 2025 —2028. As illustrated in that plan, the Company plans to conduct an EM&V impact evaluation on the program in 2027 to review the program changes implemented in 2025. At the conclusion of the EM&V impact evaluation, the TRM would be reviewed and any necessary updates incorporated. INT-G-24-05 IPUC Staff PR 15 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 16: Page 25 of the 2023 Annual Report states the Company had contracted with the Integrated Design lab to develop a commercial customer survey. Please answer the following questions: a. Please provide the timeframe of when survey was conducted; b. Please explain if the survey has been completed. If so,please explain when the Company received the survey and how the Company used the results of the survey; and c. Please identify commercial program actions/adjustments made that are supported by the results of the survey. RESPONSE NO. 16: The Company Response to the questions related to the commercial customer survey are as follows: a. Commercial customers were invited to take the survey three separate times in 2024: • Week of August 6, 2024 - Postcards were mailed to 500 commercial customers. • Week of September 24—A total of 8,769 emails were sent to commercial customers who opt in to receiving email on topics related to energy efficiency. • Month of November— 16,000 commercial customers received a bill insert with their paper bill. INT-G-24-05 IPUC Staff PR 16 Page 1 of 3 b. The 2024 survey effort is complete. The Company received 1 response to the August outreach, 32 responses in September, and 1 response in November. The most important use of the survey results has been to begin building a database that identifies the building operator/facilities manager and their contact information, enabling the Company to send out relevant, customized communications to those that make energy-use related decisions rather than the accounts payable teams. "C% 1 1 Let's Work Together: Calling all facilities managers! t.rt' 8aand recrra'b o.-s° n7 we want to"n how to better s"your business by hesp r, you save"toney and energy.Stan beiam to take ou,survey .t t r e pft card as a thank you for you,tirne! 11 you are hawt trouble accessong the survey.or have any othef questions"o'ea""'a"Us Scan tM OR code to umt the survey hoW Dons for6et to opt m to Enerp.E1hctettcy _ e n"updetet to—elve~Mf aaWg;up$ Ac s ✓W more Wo6rrn.rgW" on c. While the 2024 survey effort is complete, the company intends to continue to use the survey as a data collection method to learn what kind of equipment commercial customers are using, identifying customers pursuing energy efficient projects, as well as a guide for conversations with customers about their equipment, gas usage, upcoming projects, and interest in energy efficiency. The survey method will provide a uniform framework for collecting the same data points from customers. The new Commerical Analyst will use the information collected by the survey to speak with the correct contact for the commercial customers, for lead generation, and for identifying those customers that are interested in learning about energy efficiency and pursuing energy savings options. Data from the survey will also help the Company craft more relvant outreach messaging. The Company also acknowleges that while the INT-G-24-05 IPUC Staff PR 16 Page 2 of 3 intention of the survey was to be thorough, the length of the survey may have been a barrier to particiation and will explore ways to pare back the survey to only the most essential questions to encourage more participation. INT-G-24-05 IPUC Staff PR 16 Page 3 of 3 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 17: For the Smart Thermostat measure,please explain how the Company will verify the new requirements of the smart thermostat(i.e. Learning Based Schedule, on-board motion occupancy, automatic HVAC reduction when home is unoccupied) are enabled after the customer's rebate application is submitted. RESPONSE NO. 17: The Company intends to have a list of qualifying models that meet the new requirements outlined in the Technical Reference Manual, which will be available for customers to reference when purchasing a smart thermostat. In addition, the Company will confirm the model number for thermostats submitted for rebate meet the new requirements prior to payout of the rebate. The Company will also provide additional information on the application to raise awareness that not utilizing these settings can impact a customer's energy savings similar to messaging used by other Idaho utilities that offer a smart thermostat incentive. INT-G-24-05 IPUC Staff PR 17 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 18: On Page 22 of its Application, the Company states that it is planning to "pull the allocation of one FTE work of labor funding from the Energy Services Representatives ("ESR") allocation and use that funding to add a full time Energy Efficiency Analyst("EEA") in 2025." On Page 11 of the Application the Company states "ESRs engage in business development for both the residential and commercial sector and also promote the relevant energy efficiency program to customers."Please answer the following questions: a. Please explain how the current ESR labor costs are recovered(i.e., base rates, residential rider, commercial rider). b. Please explain what recovery mechanisms the new ESR and EEA labor expenses will be allocated to. c. Please explain how the new division of responsibilities will impact the balances of the Company's residential and commercial EE riders. Please describe the different responsibilities between an EEA and an ESR positions. d. Please provide comparison of the wage scales for the EEA and the ESR positions. e. On Page 22 of its Application, the Company states that ESRs are currently promoting both residential and commercial programs. Additionally, the new EEA and ESR maintain similar roles. Please provide additional detail regarding how the Company expects the new EEA position will help grow the Commercial Program. INT-G-24-05 IPUC Staff PR 18 Page 1 of 4 RESPONSE NO. 18: The Company Response to Request No. 18 is as follows: a. Through the end of 2024, 20% of the ESR labor expense was charged to the Energy Efficiency Program with 18% allocated to the residential program and 2% allocated to the commercial program. The remaining 80% of all ESR labor was recovered through base rates. Through 2024, there were 10 ESRs distributed throughout the Company's service territory and each of them spent 20% of their time on energy efficiency promotions (or the equivalent of 2 FTEs). b. At the end of 2024, 1 ESR took another position with the Company. The Energy Efficiency Program was also in the middle of a commercial program EM&V with one of the main goals being to determine ways to improve participation. As the Application outlines on Page 22,beginning in 2025 the Company eliminated one FTE worth of ESR labor being charged to the Energy Efficiency Rider. Going forward, only 10% of ESR labor will be charged to the Energy Efficiency Residential Rider, while 90% of the remaining ESR labor will be charged to base rates. To provide more specialized outreach for the Commercial Energy Efficiency Program, the Company has hired an Energy Efficiency Analyst with the dedicated job of providing outreach to commercial customers. c. In 2025, the percentage of ESR labor charged to the energy efficiency rider will be reduced from 20%to 10%. ESRs will continue to promote the Residential Energy Efficiency Program. The 10%reduction of the ESR labor expenses will shift from an ESR labor expense and will instead fund one full time Commercial Energy Efficiency Analyst that will work solely on promoting the Commercial Program. INT-G-24-05 IPUC Staff PR 18 Page 2 of 4 Going forward, ESRs will only be responsible for promoting the Residential Program. This change will reduce labor charged to the Residential Energy Efficiency Rider and increase the labor charged to the Commercial Energy Efficiency Rider. The full ESR job descriptions are provided in the Response to Production Request No. 3, in the folder"CONFIDENTIAL - INT-G-24-05 PR 3 JOB DESCRIP BENEFITS_COMPENSATION". The relevant descriptions are "CONFIDENTIAL Energy Services Representative" and "CONFIDENTIAL Energy Services Representative, Sr.". In summary the ESRs are responsible for meeting with prospective customers to negotiate line extensions and in those conversations promoting the Energy Efficiency Program. They are also responsible for maintaining close contact with existing customers, local builders, developers, trade allies, businesses, economic and community development organizations and Chamber of Commerce groups. They also participate in events and present informational programs to groups and organizations. The full EEA job descriptions are provided in the Response to Production Request No. 3, in the folder"CONFIDENTIAL - INT-G-24-05 PR 3 JOB DESCRIP BENEFITS_COMPENSATION". The relevant descriptions are "CONFIDENTIAL Energy Efficiency Analyst I-III" and"CONFIDENTIAL Energy Efficiency Analyst, Sr.". In summary the EEA is responsible for assisting with the tactical implementation of the Company's Energy Efficiency Program. The particular duties of the "Outreach"EEA include development and execution of the annual outreach strategy and comprehensive campaigns, building relationships with industry partners, and maintaining detailed tracking and reporting of outreach activities. INT-G-24-05 IPUC Staff PR 18 Page 3 of 4 d. The wage scales for ESRs and EEAs are provided in the Response to Production Request No. 3, in the folder"CONFIDENTIAL - INT-G-24-05 PR 3—JOB DESCRIP BENEFITS_COMPENSATION", file "CONFIDENTIAL Job Summary". The Company would be happy to walk through these confidential files during an in person meeting with Staff. e. At the time of the application, ESRs were promoting both residential and commercial programs. As of 2025 that has changed and ESRs are only responsible for promoting the Residential Energy Efficiency Program. If they see a commercial opportunity, they can refer that to the new Commercial Energy Efficiency Analyst. The new Commercial Energy Efficiency Analyst will be 100% dedicated to commercial energy efficiency outreach, education, and awareness. While methods like bill inserts,bill inserts and emails have been successful methods of reaching residential customers, it has not been successful for commercial customers. Residential gas equipment is uniform while commercial is not and in fact varies a great deal. One size fits all communications are not working to reach our diversified commercial customer base. The ability to have more one-on-one contact with the Company's commercial customers in addition to having a person dedicated to creating more customized communications should make outreach efforts to this diverse customer class more effective. The Company believes an energy efficiency analyst dedicated 100%to this effort, in conjunction with a more robust offering will help grow the commercial program. INT-G-24-05 IPUC Staff PR 18 Page 4 of 4 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Min Park/Kathy Wold REQUEST NO. 19: Please provide any forecasts the Company has for future gas prices. Please provide the Company's avoided costs approved in the most recent IRP with the new forecasted gas priced imputed. RESPONSE NO. 49: Please see the file "CONFIDENTIAL - INT-G-24-05-PR 19 Avoided Cost". An updated natural gas commodity forecast can be found on the worksheet"COMMODITY COST". The resulting levelized avoided cost per therm is provided on the worksheet"LEVELIZED AVOIDED COST"in column"I". Inflation rate, transport costs and discount rates were also updated. INT-G-24-05 IPUC Staff PR 19 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE No. INT-24-05 RESPONSE TO PRODUCTION REQUEST NO. 19 CONFIDENTIAL ATTACHMENT PROVIDED UNDER SEPARATE COVER INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 20: On Page 9 of the Application, the Company states, "The 2025 internal audit plan is currently under development and a biannual Energy Efficiency Program has been proposed to the planning committee." Please provide copies of any proposals and presentations made to the planning committee regarding the internal audits and schedules,whether it be a power point presentation, or a written recommendation, or other. RESPONSE NO. 20: As the Company noted in the Response to Request No. 2, the MDUR Audit Committee approved the 2025 Internal Auditing Plan which includes an audit of the Intermountain Energy Efficiency Program. Below is an excerpt from the meeting agenda held on February 12, 2025. February Audit Meeting 02 12 2025 01 30 Phi-05 00 Pld 5.2 Report on Internal Auditing/Review Kelhe Erhardt and approve 2025 Internal Audit Plan INT-G-24-05 IPUC Staff PR 20 Page 1 of 1 INTERMOUNTAIN GAS COMPANY CASE INT-G-24-05 SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF Preparer/Sponsoring Witness: Kathy Wold/Kathy Wold REQUEST NO. 21: On Page 11 of the Application, the Company states, "in 2023 the Company implemented an internal software application for rebate processing called Enterprise Rebate Application ("ERA"). Also on Page 12 of the Application, the Company states, "In 2024,the Company is also replacing the third-party online application with an internal product that allows customers to access the rebate application from their online customer account."Please answer the following questions about these programs: a. Please provide the total expense to date for building and implementing each of these products. b. Please explain what recovery mechanisms the expenses for each product are allocated to and the treatment of those expenses within that/those mechanisms. Please provide estimates for the labor expense the Company forecasts they will save from each of these products. c. The Company state that the ERA was implemented in 2023, but on Page 8 of the Application the Company also states: "the impacts of this implementation are not seen in the data under review in this filing."Please explain why no impacts from the ERA implementation were identified in 2023. RESPONSE NO. 21: The Enterprise Rebate Application("ERA") is comprised of two parts 1)the internal component, EE Rebates, and 2)the customer facing component, the customer webapp. EE Rebates was implemented in 2023, while the customer webapp was not implemented until 2024. INT-G-24-05 IPUC Staff PR 21 Page 1 of 3 a. No expenses for ERA were booked to the energy efficiency rider account. Existing company software was modified to accommodate energy efficiency workflows. A system used for issuing customer refunds was modified to enable it to be used to also pay customer rebates for the EE Rebates portion of ERA. The customer self-serve portal was modified to include pages for customers to apply for rebates which created the customer webapp. Work on ERA was done using internal resources which are already embedded in the Company's base rates. b. No expenses for ERA maintenance or operations expenses will be booked to the rider account. Work on ERA is being done using internal resources which are already embedded in the Company's base rates. The intent of ERA is to improve internal processes and data security going forward. While there will be some efficiency gains, so far those have allowed the Company to stay current with the rebate processing volumes without the need to bring in temporary processing assistance. The Company believes that encouraging customers to use the self- service customer webapp will continue to provide efficiencies over manual rebate input that will allow for some continued program growth without the need for incremental rebate processing staffing going forward. One of the harder to quantity benefits, is the data security. The implementation of EE Rebates transferred rebate processing to a more secure data storage option and eliminated the use of an excel spreadsheet for data tracking. The customer webapp replaced the use of a third-party software for the transmission of sensitive customer information and transferred this process to the Company's secure site and infrastructure protected behind customer accounts. INT-G-24-05 IPUC Staff PR 21 Page 2 of 3 c. As discussed earlier, ERA is a rebate processing system that consists of several components: the internal component, EE Rebates, and the customer facing component, the customer webapp. EE Rebates was implemented in the spring of 2023, and the customer webapp was implemented in the spring of 2024. In order to migrate to EE Rebates, the Company paused rebate processing for approximately one month, creating a considerable rebate processing queue. Although significant testing was conducted prior to implementation, time was spent on data validation to ensure the system was working as expected. The same is true for the implementation of the customer web app. This prudency filing only covers the implementation of the internal facing part of ERA, EE Rebates, which occurred in 2023. The significant post-implementation validation and catching up on the backlog created by the pause in rebate processing meant the full benefit of EE Rebates was not realized in 2023. The same was true for the implementation of the external facing customer webapp during 2024. INT-G-24-05 IPUC Staff PR 21 Page 3 of 3