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HomeMy WebLinkAbout20250616Comments.pdf RECEIVED June 16, 2025 JAYME B. SULLIVAN IDAHO PUBLIC BOISE CITY ATTORNEY UTILITIES COMMISSION Ed Jewell ISB No. 10446 Jessica Harrison ISB No. 9768 Deputy City Attorneys BOISE CITY ATTORNEY'S OFFICE 150 N. Capitol Blvd. P.O. Box 500 Boise, ID 83701-0500 Telephone: (208) 608-7950 Facsimile: (208) 384-4454 Email: BoiseCityAttorneykeityofboise.org ei ewell(ae,cityofboise.org jharrisonncityofboise.org Attorneys for Intervenor BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF INTERMOUNTAIN GAS COMPANY'S APPLICATION FOR Case No. INT-G-24-05 DETERMINATION OF 2023 ENERGY EFFICIENCY EXPENSES AS PRUDENTLY CITY OF BOISE CITY'S INCURRED COMMENTS The city of Boise City ("City") submits these formal comments on the application submitted by Intermountain Gas Company ("Intermountain Gas") for a determination of 2023 energy efficiency program expenses as prudently incurred. Boise City,pursuant to Rule 203 of the Commission's Rules of Procedure, IDAPA 31.01.01.203, and pursuant to the Notice of Modified Procedure, Order No. 36495, issued by the Commission on March 10, 2025, hereby submits its formal written comments and states as follows: SUMMARY The City appreciates Intermountain Gas's continued investment in energy efficiency initiatives and recognizes the importance of maintaining and expanding access to cost-effective, equitable energy efficiency programs.In particular,the City acknowledges Intermountain Gas's CITY OF BOISE CITY'S COMMENTS 1 implementation of the Evaluation,Measurement, and Verification(EM&V) study that includes a billing analysis, as directed by prior Commission orders. The 2023 report reflects increased participation, with 6.9% more residential rebates issued than in 2022. However, the City remains concerned about the high proportion of incentives applied to new construction projects as well as the discrepancy in cost-effectiveness of the portfolio with regard to a deemed-savings or billing impact analysis. The City urges continued attention to balancing program delivery between new builds and existing homes, particularly those occupied by low-income households. IMPACT OF NEW CONSTRUCTION PROJECTS As in the 2022 prudency filing, a substantial percentage of residential rebates and associated savings are from new construction. In 2023 this was —30% (Calculations based on Application, Attachment 1). While improved natural gas efficiency benefits all customers, the City believes the Commission should provide assurance that existing ratepayer revenues don't over-incentivize efficiency measures in new construction, as new construction does not immediately benefit existing ratepayers and savings can only be estimated until otherwise verified. The City urges Intermountain Gas to continue to find ways to reach the existing customer base,particularly lower-income customers. COST-EFFECTIVENESS The City recognizes the effort Intermountain Gas has made to address the billing impact concerns raised in INT-G-23-06, the 2022 energy efficiency prudency determination. The City also appreciates the continuous review process through which deemed savings are compared against claimed savings to ensure accurate savings and cost-effectiveness calculations. Upon reviewing the findings of the updated EM&V,the City does not have any further comments and CITY OF BOISE CITY'S COMMENTS 2 is supportive of the deemed-savings approach recommended by the evaluator for the time being, in the absence of more robust data for a billing impact approach to energy savings, and with the caveat that differences in the evaluation approach are made transparent (see comments below). The City is particularly focused on the impact of energy efficiency programs on customer affordability. Cost-effectiveness according to deemed savings was 1.2 for the entire portfolio but dropped to 0.9 when using the impact evaluation approach outlined in the EM&V study of the residential portion(Application Attachment 1,page 1). This disparity between the evaluated energy savings and the deemed energy savings raises questions about the allocation of program funds to ensure incentives are driving actual reductions in energy consumption. The City commends Intermountain Gas on its continued improvement of the savings measurement method, while urging movement toward the method outlined in the EM&V which relies more on actual—measured—savings. Additionally, as the measurement methods continue to evolve, the energy efficiency programs should be continually evaluated for cost-effectiveness and adjusted accordingly. Of note, the cost-effectiveness for the commercial rebates portion remained the same at 0.9 with both evaluation methods. CONTINUED EFFICIENCY OFFERINGS The City continues to recommend the Company evaluate and present a behavioral energy efficiency program offering to its Energy Efficiency Savings Committee for future implementation. A behavior-change focused offering could lead to significant savings without the traditional overhead expenses or customer costs associated with current equipment replacement rebates. The City also looks forward to the Company's continued evaluation of do- it-yourself weatherization kits that could increase customer awareness of energy efficiency program offerings and deliver savings to low-income customers. CITY OF BOISE CITY'S COMMENTS 3 Along the same lines as the weatherization kits, the City of Boise would also like to recommend that Intermountain Gas continue to look for other cost-effective ways to include low-income customers who may not otherwise be able to participate in a rebate program. RECOMMENDATIONS As stated above, the City appreciates the variety of offerings, and the efforts undertaken in continuing to refine the evaluated savings. The City respectfully recommends that the Commission direct Intermountain Gas to maintain and publish clear savings calculation differences between new construction and retrofit projects, particularly in calculating therm savings and incentive cost-effectiveness. While much improved, the City supports the continued refinement of billing analysis methodologies, especially for programs with primarily existing construction, where data would be available (i.e. evaluated savings approach). Lastly, the City encourages Intermountain Gas to implement specific strategies to increase low-income customer participation in energy efficiency programs. Dated this 16th day of June 2025 Ede ll, Deputy City Attorney CITY OF BOISE CITY'S COMMENTS 4 CERTIFICATE OF SERVICE I hereby certify that I have on this 16th day of June 2025 served the foregoing documents on all parties of record as follows: Monica Barrios-Sanchez ❑ U.S. Mail Commission Secretary ❑ Personal Delivery Idaho Public Utilities Commission ❑ Facsimile 11331 W. Chinden Blvd., Ste. 201-A 0 Electronic Boise, ID 83714 ❑ Other: secretgakpuc.idaho._og_v Chris Burdin ❑ U.S. Mail Deputy Attorney General ❑ Personal Delivery Idaho Public Utilities Commission ❑ Facsimile 11331 W. Chinden Blvd., Ste. 201-A 0 Electronic Boise, ID 83714 ❑ Other: chris.burdinkpuc.idaho.gov Lori A. Blattner ❑ U.S. Mail Director—Regulatory Affairs ❑ Personal Delivery Intermountain Gas Company ❑ Facsimile PO Box 7608 Q Electronic Boise, ID 83707 ❑ Other: lori.blattner(a),int ag s.com igcre ug latory(kint ag s.com Preston N. Carter ❑ U.S. Mail Givens Pursley LLP ❑ Personal Delivery 601 W. Bannock St. ❑ Facsimile Boise, ID 83702 Q Electronic prestoncarterk ig venspursley.com ❑ Other: morgan og odinkgivenspursley.com stephaniewkgivenspursle, Michelle Steel, Paralegal CITY OF BOISE CITY'S COMMENTS 5