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HomeMy WebLinkAbout20260127Tariff Advice No. IPC-TAE-26-01.pdf qN IQAHO R® RILEY MALONEY Regulatory Policy and Strategy Leader RECEIVED rmaloney(a)idahopower.com January 27, 2026 IDAHO PUBLIC UTILITIES COMMISSION VIA ELECTRONIC FILING January 27, 2026 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Tariff Advice No. IPC-TAE-26-01 Modifications to Schedule 79, Weatherization Assistance for Qualified Customers Dear Commission Secretary: Idaho Power Company ("Idaho Power" or"Company") hereby submits its proposed update to Schedule 79, Weatherization Assistance for Qualified Customers ("Schedule 79"), removing references to its re-weatherization option effective March 1, 2026. The following tariff sheet identifies the proposed modification: Second Revised Sheet No. 79-1 Cancelling First Revised Sheet No. 79-1 BACKGROUND Idaho Power initially offered its Low-income Weatherization Assistance ("LIWA") program in 1989 in conjunction with the State of Idaho's Weatherization Assistance Program. Through the LIWA program, the Company provided supplementary funding to state designated Community Action Partnership ("CAP") agencies for the weatherization of homes occupied by qualified low-income customers as well as buildings occupied by qualified non-profit organizations. The program was renamed Weatherization Assistance for Qualified Customers ("WAQC") in 2005. The WAQC program has gone through several changes since its inception in 1989. Of note, and as a result of Order No. 29505 (issued in Case No. IPC-E-03-13), the Idaho Public Utilities Commission ("Commission") directed the Company to carry forward to the 1221 W. Idaho St(83702) P.O. Box 70 Boise, ID 83707 Idaho Public Utilities Commission Commission Secretary Page 2 of 4 January 27,2026 following year any unpaid funds.' Through cases filed in 2007, 2011, and 2012, the Commission reviewed the carryover provisions and reaffirmed this program element.2 In 2022, recognizing the need to address the growing amount of carryover funds that had accumulated3 as the result of the COVID-19 pandemic, supply chain limitations, and labor shortages, the Company, in Case No. IPC-E-22-15, proposed to modify the WAQC program to include a re-weatherization option. Under the re-weatherization option, the Company proposed to use carryover funds to pay for up to 100 percent of HVAC upgrades in homes that had previously been weatherized through WAQC (within a rolling 14-year period) and did not receive an HVAC replacement. In Order No. 35583, the Commission approved the addition of re-weatherization to the WAQC program until carryover funds ran out or until the CAP agency contracts ended in 2025.4 In 2024, Idaho Power filed Tariff Advice IPC-TAE-24-03 in compliance with Order No. 36042, issued by the Commission in Case No. IPC-E-23-11, which approved a Stipulation and Settlement that moved the existing obligation of funding $1.2 million for WAQC from the Company's base rate revenue requirement to recovery through the Idaho Energy Efficiency Rider ("Rider"). The Stipulation and Settlement also established a requirement for the Company to work with Commission Staff and CAP agencies to develop implementation and ongoing administration details for both the WAQC and low- income education programs.5 As a result of those stakeholder discussions, the Company proposed several programmatic changes. These changes included eliminating future carryover of program funds and modifying the re-weatherization option to allow upgrades to other electric equipment necessary for completing HVAC upgrades currently allowed under the option. The Commission approved these aspects of the Company's proposal ' In the Matter of the Application of Idaho Power Company for Authority to Increase its Rates and Charges for Electric Service to Electric Customers in the State of Idaho, Case No. IPC-E-03-13, Order No. 29505 at 32 (May 25, 2004). 2 In the Matter of the Joint Application of Community Action Partnership Association of Idaho, Inc. and Idaho Power Company for the Authority to Continue the Present Funding Level for Weatherization Assistance as Authorized by Order No. 29505, Case No. IPC-E-07-09, Order No. 30350 at 4 (Jun. 15, 2007). In the Matter of the Application of Idaho Power Company for Authority to Increase it Rates at Charges for Electric Service to its Customers in the State of Idaho, Case No. IPC-E-11-08, Order No. 32426 at 36 (Dec. 30, 2011). In the Matter of the Commission's Inquiry into the Cost-Effectiveness and Funding of Low-Income Weatherization Programs and Energy Conservation Programs for Electric Utilities, GNR-E-12-01, Order No. 32788 at 9 (Apr. 12, 2013). 3 At the time of filing carryover funds had accumulated to $870,985. 4 In the Matter of Idaho Power Company's Application for Authority to Modify Schedule 79— Weatherization Assistance for Qualified Customers, Case No IPC-E-22-15, Order No. 35583 at 4 (Nov. 4, 2022). 5 In the Matter of the Application for Idaho Power Company for Authority to Increase Rates and Charges for Electric Service in the State of Idaho and for Associated Regulatory Accounting Treatment, Case No. IPC-E-23-11, Stipulation and Settlement at 7 (Oct. 27, 2023). Idaho Public Utilities Commission Commission Secretary Page 3 of 4 January 27,2026 in Order No. 36406.6 With these changes to the accumulation of carryover funds and the re- weatherization option, CAP agencies were able to spend down a majority of the accumulated carryover funds, resulting in a carryover balance of only $22,657 remaining as of the end of 2025. Recognizing the minimal carryover balance remaining, CAP agencies' agreements with the Company allowing for the use of carryover funds for re- weatherization purposes were not renewed prior to their expiration on December 31, 2025. Instead, the remaining $22,657 in carryover funds will be spent on standard weatherization measures under WAQC until exhausted.7 STAKEHOLDER ENGAGEMENT Because WAQC's re-weatherization option was set to expire at the end of 2025, the Company sought feedback on the option's future from its Energy Efficiency Advisory Group (TEAG") during its August 14, 2025, meeting due to the carryover balance totaling approximately $200,000 at the time. Specifically, the Company asked its EEAG members whether the re-weatherization option should be extended beyond 2025 to allow for additional time to spend down the carryover balance or sunset as originally contemplated within the Company's application.$ While the Company's EEAG members generally expressed support at the time for extending the re-weatherization option, the Company committed to continue monitoring the carryover balance and provide an update at its November 2025 EEAG meeting prior to making any programmatic decisions. At its November 11, 2025, EEAG meeting, the Company provided an update to its EEAG members that the carryover balance had decreased to $75,000 and that the Company anticipated such balance to continue decreasing throughout the remainder of the year. As a result of the carryover balance significantly decreasing in the latter half of 2025, and the fact any carryover funds remaining at the end of 2025 could be used for standard weatherization measures until fully spent, the Company proposed to let the re- weatherization option expire at the end of 2025. No EEAG members in attendance expressed concern with respect to the Company's proposed approach. 6 In the Matter of Idaho Power Company's Tariff Advice in Compliance with Order No. 23042 Related to Changes to Schedule 79, Case No. IPC-E-24-39, Order No. 36406 (Nov. 29, 2024). All $22,657 in remaining carryover funds is currently allocated to one CAP agency, South Eastern Idaho Community Action Partnership ("SEICAP"). Although carryover funds are intended to be spent prior to Rider funds, the actual spend down of carryover will be dependent on how many projects SEICAP has. 8 In the Matter of Idaho Power Company's Application for Authority to Modify Schedule 79— Weatherization Assistance for Qualified Customers, Case No IPC-E-22-15, Application Attachment 2 at 1 (May 4, 2022). Idaho Public Utilities Commission Commission Secretary Page 4 of 4 January 27, 2026 PROPOSED TARIFF CHANGES With the expiration of the re-weatherization option, the Company is proposing to update Schedule 79 to avoid potential customer confusion and reflect that re- weatherization is no longer available. Accordingly, the Company is proposing to delete all references to re-weatherization contained in the "Qualifying Dwellings" section of Schedule 79. CONCLUSION The Company respectfully requests the Commission issue an order approving the proposed changes to Schedule 79, effective March 1, 2026, to reflect the expiration of the re-weatherization option within WAQC. If you have any questions regarding this filing, please contact Regulatory Analyst Mary Alice Taylor at (208) 388-5645 or mtaylor(a)idahopower.com. Very truly yours, Riley Maloney Regulatory Policy and Strategy Leader RM:sg Enclosures Idaho Power Company Second Revised Sheet No. 79-1 Cancels I.P.U.C. No. 30, Tariff No. 101 First Revised Sheet No. 79-1 SCHEDULE 79 WEATHERIZATION ASSISTANCE FOR QUALIFIED CUSTOMERS AVAILABILITY Funding under this schedule is available to state designated Community Action Partnership (CAP) agencies throughout the Company's service area within the State of Idaho participating in the State of Idaho Weatherization Assistance Program administered by the Idaho Department of Health and Welfare. Funding under this schedule is subject to the provisions of the signed Agreement between the individual CAP agencies and the Company. APPLICABILITY Funding under this schedule is applicable to qualifying energy conservation measures installed in single- and multi-family residential dwellings, including mobile homes, which are electrically heated (Qualifying Dwellings). Funding is also applicable to qualifying energy conservation measures installed in buildings which are occupied by private, non-profit organizations which serve primarily low-income clientele, and which have obtained a 501(c)(3) tax exempt status (Qualifying Buildings). Energy conservation measures installed in Qualifying Dwellings and Qualifying Buildings must meet the specifications of the State of Idaho Weatherization Assistance Program. GRANTS TO AGENCIES The Company will determine the amount of annual grant funds available to each participating CAP agency each year in accordance with the provisions of the Agreement. Funds will be distributed to a participating CAP agency upon demonstration by the agency that qualifying conservation measures have been installed in a Qualifying Dwelling or Qualifying Building. Grant funds made available to a CAP agency but not distributed to that agency during the current year may be invoiced within 60 days after year end for those services provided within the prior year. In addition to weatherization funds, the Company will provide to each CAP agency an administrative payment equal to 10 percent of the portion funded by the Company for each Qualifying Dwelling or Qualifying Building for which weatherization was completed with the assistance of Company funds. Qualifying Dwellings: The Company grant funds may be used to fund up to 85 percent of the total cost of qualifying conservation measures installed in a Qualifying Dwelling provided at least 15 percent of the total cost of qualifying conservation measures is funded by the Department of Energy. Qualifying Buildings: The Company grant funds may be used to fund the installation of weatherization measures in Qualifying Buildings in accordance with the provisions of the Agreement. The Company provided funds may be used to fund up to 100 percent of the total cost of qualifying conservation measures installed in Qualifying Buildings. IDAHO Issued by IDAHO POWER COMPANY Issued —January 27, 2026 Timothy E. Tatum, Vice President, Regulatory Affairs Effective — March 1, 2026 1221 West Idaho Street, Boise, Idaho Advice No. 26-01 Idaho Power Company Forst Second Revised Sheet No. 79-1 Cancels I.P.U.C. No. 30, Tariff No. 101 94g+ral-First Revised Sheet No. 79-1 SCHEDULE 79 WEATHERIZATION ASSISTANCE FOR QUALIFIED CUSTOMERS AVAILABILITY Funding under this schedule is available to state designated Community Action Partnership (CAP) agencies throughout the Company's service area within the State of Idaho participating in the State of Idaho Weatherization Assistance Program administered by the Idaho Department of Health and Welfare. Funding under this schedule is subject to the provisions of the signed Agreement between the individual CAP agencies and the Company. APPLICABILITY Funding under this schedule is applicable to qualifying energy conservation measures installed in single- and multi-family residential dwellings, including mobile homes, which are electrically heated (Qualifying Dwellings). Funding is also applicable to qualifying energy conservation measures installed in buildings which are occupied by private, non-profit organizations which serve primarily low-income clientele, and which have obtained a 501(c)(3) tax exempt status (Qualifying Buildings). Energy conservation measures installed in Qualifying Dwellings and Qualifying Buildings must meet the specifications of the State of Idaho Weatherization Assistance Program. GRANTS TO AGENCIES The Company will determine the amount of annual grant funds available to each participating CAP agency each year in accordance with the provisions of the Agreement. Funds will be distributed to a participating CAP agency upon demonstration by the agency that qualifying conservation measures have been installed in a Qualifying Dwelling or Qualifying Building. Grant funds made available to a CAP agency but not distributed to that agency during the current year may be invoiced within 60 days after year end for those services provided within the prior year. In addition to weatherization funds, the Company will provide to each CAP agency an administrative payment equal to 10 percent of the portion funded by the Company for each Qualifying Dwelling or Qualifying Building for which weatherization was completed with the assistance of Company funds. Qualifying Dwellings: The Company grant funds may be used to fund up to 85 percent of the total cost of qualifying conservation measures installed in a Qualifying Dwelling provided at least 15 percent of the total cost of qualifying conservation measures is funded by the Department of Energy, applies to hernes that we- t­v­ ly weatherized URder Schedule 79 within a relling 14 year peried. derneStiG water heaters, or upgrades to ether equipment used for heat'Rg veRtilatieR, air GeRdit'OR'ng eF water heating Qualifying Buildings: The Company grant funds may be used to fund the installation of weatherization measures in Qualifying Buildings in accordance with the provisions of the Agreement. The Company provided funds may be used to fund up to 100 percent of the total cost of qualifying conservation measures installed in Qualifying Buildings. IDAHO Issued by IDAHO POWER COMPANY Issued per Order No. 36406 —January 27, 2026 Timothy E. Tatum, Vice President, Regulatory Affairs Effective—_z ecemberT224March 1, 2026 1221 West Idaho Street, Boise, Idaho Advice No. 26-01