Loading...
HomeMy WebLinkAbout20260313Direct Nesbitt.pdf RECEIVED MARCH 13, 2026 IDAHO PUBLIC UTILITIES COMMISSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR A ) DETERMINATION OF 2025 DEMAND- ) CASE NO. IPC-E-26-05 SIDE MANAGEMENT EXPENSES AS ) PRUDENTLY INCURRED. ) IDAHO POWER COMPANY DIRECT TESTIMONY OF QUENTIN NESBITT 1 Q. Please state your name, business address, and 2 present position with Idaho Power Company ("Idaho Power" or 3 "Company") . 4 A. My name is Quentin Nesbitt . My business 5 address is 1221 West Idaho Street, Boise, Idaho 83702 . I am 6 employed by Idaho Power as the Customer Relations and 7 Program Manager in the Customer Operations Department. 8 Q. Please describe your educational background. 9 A. I earned a Bachelor of Science degree in 10 Agricultural Engineering from the University of Idaho in 11 1989 and received my Professional Engineering license in 12 1992 . 13 Q. Please describe your work experience with 14 Idaho Power. 15 A. I began my employment with Idaho Power in 16 1991 as an Agricultural Representative in the Company' s 17 Energy Management Department where I was responsible for 18 providing customer service to irrigation and agricultural 19 customers . Later in 1991, I was promoted to an engineering 20 position where I provided technical support for Idaho Power 21 Agricultural Representatives . This involved Demand Side 22 Management ("DSM") program design and operation, pump 23 testing, new service requests, investigation of high bills, 24 and irrigation system evaluation and consultation. In 2002, NESBITT, DI 2 Idaho Power Company 1 the department was reorganized as the Customer Relations 2 Department, and I took on additional duties as the 3 Agricultural Customer Segment Advocate/Expert where I 4 coordinated Company activities that affected agricultural 5 customers . In October of 2014, I was promoted to Energy 6 Efficiency Program Leader and was responsible for 7 overseeing the Company' s Commercial and Industrial and 8 Irrigation DSM programs . In June of 2020, I became the 9 Customer Research and Analysis Leader and was responsible 10 for overseeing the Company' s analysis and reporting of all 11 DSM programs . In December of 2023, I was promoted to my 12 current position as Customer Relations and Program Manager. 13 Q. What is the purpose of your testimony in this 14 case? 15 A. The purpose of my testimony is to present the 16 Company' s request for a determination that $37, 876, 413 of 17 DSM expenses for the acquisition of demand-side resources 18 in 2025 was prudently incurred. This amount includes 19 $28, 936, 689 funded in 2025 by the Idaho Energy Efficiency 20 Rider ("Rider") and $8, 939, 724 of demand response program 21 incentive payments funded through base rates and tracked 22 annually through the Power Cost Adjustment ("PCA") . 23 My testimony will : (1) provide a review of 2025 DSM 24 program performance, (2) discuss 2025 DSM expenses and NESBITT, DI 3 Idaho Power Company 1 adjustments, (3) provide an overview of the cost- 2 effectiveness results for 2025, (4) review program 3 evaluation efforts, and (5) describe the input stakeholders 4 provided during the year. 5 Q. Are you sponsoring any exhibits? 6 A. Yes . I am sponsoring the following exhibits : Exhibit Description Exhibit No. 1 2025 Idaho DSM Expenses and Adjustments for Prudence Filing Exhibit No. 2 2025 Cost-Effectiveness Summary by Program, Sector, and Portfolio Exhibit No . 3 DSM Evaluation Plan 7 I . 2025 DSM PROGRAM PERFORMANCE 8 Q. What is Idaho Power' s focus when evaluating 9 program performance? 10 A. Idaho Power takes its responsibility of 11 prudently managing customer-funded DSM activities 12 seriously, and the Company believes it is important to 13 provide its customers with the maximum value from these 14 activities . The Company' s actions in 2025, and the content 15 of the Demand-Side Management 2025 Annual Report ("DSM 2025 16 Annual Report") , Attachment 1 to the Application filed in 17 this proceeding, demonstrate the conscientious work and 18 decisions Idaho Power employees make to prudently use 19 customers' funds when supporting DSM activities . NESBITT, DI 4 Idaho Power Company 1 Q. Please provide an overview of Idaho Power' s 2 DSM activities in 2025 . 3 A. On a system-wide basis, Idaho Power offered a 4 broad portfolio of energy efficiency and demand response 5 programs available to all customer segments, and the 6 Company also participated in market transformation efforts 7 through the Northwest Energy Efficiency Alliance ("NEEA") . 8 The Company also offered several educational and behavioral 9 initiatives including the Residential Energy Efficiency 10 Education Initiative, the School and Campus Cohorts, and 11 the Industrial Energy Efficiency Cohort. 12 The Company leveraged its Energy Efficiency Advisory 13 Group ("EEAG") to solicit input and feedback on ways to 14 identify opportunities to increase program effectiveness, 15 delivery, and marketing. A summary of Idaho Power' s 2025 16 DSM programs is provided in Table 1 below. 17 18 19 20 21 22 23 24 NESBITT, DI 5 Idaho Power Company 1 Table 1 . 2025 DSM Programs by Sector, Operational Type, 2 and Location Program by Sector Operational Type State Residential A/C Cool Credit............................................................. Demand Response ID/OR Educational Distributions............................................... Energy Efficiency ID/OR Heating&Cooling Efficiency Program.......................... Energy Efficiency ID/OR Home Energy Audit....................................................... Energy Efficiency ID Home Energy Report Program...................................... Energy Efficiency ID/OR Low-Income Energy Efficiency Education..................... Energy Efficiency ID Multifamily Energy Efficiency Program.......................... Energy Efficiency ID/OR Oregon Residential Energy Conservation Program...... Energy Efficiency OR Rebate Advantage........................................................ Energy Efficiency ID/OR Residential New Construction Program........................ Energy Efficiency ID Weatherization Assistance for Qualified Customers (Idaho) Energy Efficiency ID Weatherization Assistance for Qualified Customers (Oregon) Energy Efficiency OR Weatherization Solutions for Eligible Customers........... Energy Efficiency ID Commercial/Industrial C&I New Construction................................................... Energy Efficiency ID/OR C&I Retrofits.................................................................. Energy Efficiency ID/OR Custom Projects............................................................ Energy Efficiency ID/OR Flex Peak Program ....................................................... Demand Response ID/OR Oregon Commercial Audit............................................. Energy Efficiency OR Small Business Lighting Program ................................ Energy Efficiency ID/OR Irrigation Irrigation Efficiency Rewards......................................... Energy Efficiency ID/OR Irrigation Peak Rewards................................................ Demand Response ID/OR All Sectors Northwest Energy Efficiency Alliance............................ Market Transformation ID/OR 3 4 Table 1 illustrates the broad availability of 5 programs offered by Idaho Power to its customers in energy 6 efficiency, demand response, and market transformation. 7 Moreover, Idaho Power' s energy efficiency portfolio was 8 cost-effective, resulting in a 1 . 70 benefit/cost ratio when 9 evaluated from a Utility Cost Test ("UCT") perspective, a 10 1 . 37 benefit/cost ratio when evaluated from a Total NESBITT, DI 6 Idaho Power Company 1 Resource Cost ("TRC") test perspective, and a 1 . 78 2 benefit/cost ratio when evaluated from a Participant Cost 3 Test ("PCT") perspective. 4 Attachment 1 to the Application, the DSM 2025 Annual 5 Report, provides details for each program, which include : a 6 program description, 2025 performance results, program 7 activities, cost-effectiveness ratios, marketing 8 activities, customer education and satisfaction, upcoming 9 2026 plans, and evaluation results when applicable . Also 10 included in Attachment 1 are: Supplement 1 : Cost 11 Effectiveness ("Supplement 1") , which provides detailed 12 cost-effectiveness data by program and measure, and 13 Supplement 2: Evaluation ("Supplement 2") , which provides 14 copies of the Company' s evaluations and reports conducted 15 in 2025 . 16 Energy Efficiency 17 Q. What level of incremental annual energy 18 efficiency savings was achieved in 2025? 19 A. On a system-wide basis, Idaho Power achieved 20 153, 099 megawatt-hours ("MWh") of incremental annual energy 21 efficiency savings in 2025 . This value includes 125, 392 MWh 22 from Idaho Power' s energy efficiency programs and an NESBITT, DI 7 Idaho Power Company 1 estimated 27, 707 MWhl of energy efficiency market 2 transformation savings through NEEA initiatives . Chart 1 3 below shows the incremental annual energy efficiency 4 savings in MWh from 2005 to the current year. Also shown in 5 this chart are the total energy efficiency expenses for 6 each year in millions of dollars . 7 Chart 1 . Incremental Annual Energy Efficiency Savings 8 (MWh) and Energy Efficiency Expenses ($ millions) 2005-2025 9 hL"Fw harp Sari(YYYf�) 5aa � z+M.� 535 s � � c 0 M _ J 2M6 2W 2M9 2M 2M 2M M7 2M 2M 2M 2625 10 11 Note: 2025 NEEA market-transformation savings are estimated. 12 Q. Did Idaho Power meet the energy efficiency 13 targets included in its 2023 Integrated Resource Plan 14 ("IRP") ? 15 A. Yes . In 2025, Idaho Power achieved 17 . 5 16 average megawatts ("aMW") of incremental energy efficiency 17 savings, including NEEA estimated energy savings, which 1 Because Idaho Power will not receive final 2025 savings from NEEA until the second quarter 2026, the NEEA-attributable savings is an estimate provided to Idaho Power by NEEA. NESBITT, DI 8 Idaho Power Company 1 exceeded the economic technical achievable potential 2 included in the 2023 IRP of 12 . 8 aMW. The 2025 savings 3 represent enough energy to power approximately 14, 000 4 average homes in Idaho Power' s service area for one year. 5 Q. How did the 2025 DSM program year compare to 6 2024 for energy efficiency? 7 A. In the 2025 program year, several of the 8 Company' s energy efficiency-related DSM programs 9 outperformed their savings and participation as compared to 10 the 2024 program year . 11 Overall energy efficiency portfolio savings 12 increased by 7, 689 MWh year-over-year compared to 2024, and 13 all sectors saw an increase in savings in 2025 . The overall 14 increase in savings can largely be attributed to the 15 Commercial and Industrial ("C&I") Retrofits Program and the 16 Residential Home Energy Reports Program. Specifically, the 17 C&I Retrofits Program increased its total savings by 7, 513 18 MWh, with an increase in total projects of 53, and the Home 19 Energy Reports Program began sending additional reports to 20 a new treatment group consisting of 32, 048 recipients for a 21 total of 100, 875 homes receiving home energy reports in 22 2025, resulting in an increase in total savings of 1, 911 23 MWh. NESBITT, DI 9 Idaho Power Company 1 Q. Does the Company engage in customer education 2 and outreach activities for which it cannot quantify or 3 report savings? 4 A. Yes . The Company engages in significant 5 educational awareness activities and marketing efforts that 6 are likely to result in energy savings experienced by 7 customers but are not quantified or claimed as part of 8 Idaho Power' s annual savings . These efforts are designed to 9 reach all customer segments and are more fully explained 10 throughout the DSM 2025 Annual Report. In 2025, this 11 included activities such as : holding virtual and in-person 12 technical trainings and workshops with customers, producing 13 the Energy@Work and Irrigation newsletters, participating 14 in several different types of agricultural shows, hosting 15 or participating in vendor workshops promoting irrigation 16 system efficiency, sharing residential energy efficiency 17 guides that showcased behavioral changes to save energy, 18 attending other outreach activities such as home shows to 19 discuss energy efficiency with customers one-on-one, and 20 supporting the Integrated Design Lab. 21 Demand Response 22 Q. What level of capacity was available from 23 Idaho Power' s demand response programs in 2025? 24 A. The total available capacity ("maximum 25 potential demand reduction") of Idaho Power' s three demand NESBITT, DI 10 Idaho Power Company 1 response programs (Residential A/C Cool Credit, C&I Flex 2 Peak, and Irrigation Peak Rewards) was approximately 328 3 megawatts ("MW") . This value represents the total enrolled 4 MW from participants adjusted for an expected maximum 5 realization rate. 6 Q. What level of non-coincident demand reduction 7 was provided in 2025? 8 A. The Company' s demand response programs 9 provided actual non-coincident demand reduction of 161 MW 10 during the 2025 program season. 11 Chart 2 below reflects the annual maximum potential 12 demand reduction and maximum actual demand reduction in MW 13 since 2005 and the associated annual expenses in millions 14 of dollars . 15 Chart 2 . Maximum Potential Demand Reduction (MW) and Demand 16 Response Expenses ($ millions) 2005-2025 M__ , dnUmd �11111dkilw �ein�d a� OMMW FMP�Oq® 256 2W ! £ 2M S6 3 so MEN ■ s a 17 18 Q. How did the 2025 DSM program year compare to 19 2024 for demand response? NESBITT, DI 11 Idaho Power Company 1 A. The total demand response portfolio increased 2 its available capacity from 323 MW in 2024 to 328 MW in 3 2025 . The Irrigation Peak Rewards demand response program 4 increased its total participating service points by 185 . 5 The actual non-coincident demand reduction was 161 MW in 6 2025 compared to 257 MW in 2024 . This decrease was 7 primarily due to a milder summer across the Company' s 8 service area and the Company' s Load Serving Operations 9 Group utilizing the flexibility of the five irrigation 10 participant groups based on system need. Specifically, the 11 Residential A/C Cool Credit program had a maximum cycling 12 rate of 55 percent in 2025 compared to 65 percent in 2024, 13 the C&I Flex Peak program had a maximum realization rate of 14 71 percent in 2025 compared to 85 percent in 2024, and the 15 Irrigation Peak Rewards program simultaneously dispatched a 16 maximum of three out of five groups in 2025 compared to 17 four out of four groups in 2024 . 18 II . 2025 DSM EXPENSES AND ADJUSTMENTS 19 Q. What amount of DSM expenses is the Company 20 requesting the Idaho Public Utilities Commission 21 ("Commission") find were prudently incurred? 22 A. In the delivery of energy efficiency, demand 23 response, and market transformation programs, Idaho Power 24 expended $28, 936, 689 of Rider funds and paid $8, 939, 724 in 25 demand response program incentives, for a total of NESBITT, DI 12 Idaho Power Company 1 $37, 876, 413 spent on demand-side resource acquisition in 2 2025 . Idaho Power requests that the 2025 Rider-funded DSM 3 expenses, and the 2025 demand response program incentives 4 recovered through base rates and tracked through the PCA, 5 be reviewed together for a prudence determination. Exhibit 6 No . 1 to my testimony, 2025 Idaho DSM Expenses and 7 Adjustments for Prudence Filing, shows a breakout of these 8 expenses by program, customer sector, and funding source . 9 Q. Please compare the dollar amounts in Exhibit 10 No . 1 to your testimony with Appendix 2, 2025 DSM expenses 11 by funding source (dollars) , of the DSM 2025 Annual Report. 12 A. For clarity and ease of understanding, Exhibit 13 No . 1 ties to Appendix 2, which is found on page 174 of the 14 DSM 2025 Annual Report. The first column of Appendix 2 15 labeled "Idaho Rider" and the column of Exhibit No. 1 16 labeled "Idaho Rider" match at the row labeled "Total DSM 17 Expense" in Exhibit No. 1 and "Grand Total" in Appendix 2 18 in the amount of $28, 945, 938 . All values in Exhibit No. 1 19 represent DSM expenses for the Idaho service area only. 20 Three prior year-end accounting adjustments and three 21 current year-end accounting adjustments were necessary to 22 accurately arrive at the total 2025 expenses for purposes 23 of the prudence determination. These six adjustments, 24 listed in Exhibit No. 1 under the "Adjustments" section, 25 comprise three prior year-end accounting adjustments for NESBITT, DI 13 Idaho Power Company 1 Home Energy Audit, Rebate Advantage, and Irrigation Peak 2 Rewards, and three current year-end accounting adjustments 3 for Home Energy Audit, Residential New Construction 4 Program, and Residential Energy Efficiency Conservation 5 Overhead. 6 Q. Please describe the prior year-end accounting 7 adjustments included in Exhibit No. 1 . 8 A. The first adjustment of $5, 383 is related to 9 expenses associated with the Home Energy Audit program that 10 should have been charged to the Idaho Rider rather than 11 Operations and Maintenance ("O&M") in 2024 . The correction 12 to add the expense to the Idaho Rider was made in 2025 and 13 therefore $5, 383 needs to be subtracted from the 2025 14 prudence request because it was already deemed prudent by 15 the Commission in 2024 . 16 The second adjustment of $5, 523 is related to 17 expenses associated with the Rebate Advantage program that 18 should have been charged to the Idaho Rider, rather than 19 0&M in 2024 . The correction to add the expense to the Idaho 20 Rider was made in 2025 and therefore $5, 523 needs to be 21 subtracted from the 2025 prudence request because it was 22 already deemed prudent by the Commission in 2024 . 23 The third adjustment of $2, 278 is related to 24 expenses associated with the Irrigation Peak Rewards 25 program that should have been charged to O&M rather than NESBITT, DI 14 Idaho Power Company 1 the Idaho Rider in 2024 . The correction to reduce Idaho 2 Rider expenses was made in 2025, and therefore $2, 278 needs 3 to be added back to avoid understating the 2025 prudence 4 request. 5 Q. Please describe the current year-end 6 accounting adjustments included in Exhibit No. 1 . 7 A. Three accounting adjustments for 2025 were 8 identified through Idaho Power' s annual review of DSM 9 expenses and the corrections were made after the 2025 year- 10 end financial books were closed. 11 The first adjustment results in a reduction of $244 12 associated with the Home Energy Audit program where the 13 expenses were initially charged to the Idaho Rider instead 14 of the Oregon Rider. 15 The second adjustment results in an addition of $346 16 associated with the Residential New Construction program 17 where the expenses were initially charged to the Oregon 18 Rider instead of the Idaho Rider. 19 The third adjustment results in a reduction of $723 20 associated with the Residential Energy Efficiency program 21 where the expenses were initially charged to the Idaho 22 Rider instead of the Oregon Rider. 23 Q. What was the year-end 2025 balance of the 24 Rider? NESBITT, DI 15 Idaho Power Company 1 A. The Rider account balance on December 31, 2 2025, had a positive balance of $13, 365, 262, indicating it 3 had collected this amount in advance of funding energy 4 efficiency programs . Table 2 below shows the January 2025 5 beginning balance, funding plus accrued interest, expenses, 6 and the ending balance as of December 31, 2025 . 7 Table 2 . Idaho Energy Efficiency Rider (January-December 8 2025) Idaho Energy Efficiency Rider 2025 Beginning Balance $ 7,570,508 2025 Funding plus Accrued Interest as of 12/31/25 34,740,692 Total 2025 Funds 42,311,200 2025 Expenses as of 12/31/25 (28,945,938) Ending Balance as of 12/31/25 $ 13,365,262 9 10 III . 2025 COST-EFFECTIVENESS OVERVIEW 11 Q. What is Idaho Power' s overall goal when it 12 comes to DSM cost-effectiveness tests? 13 A. Idaho Power strives to ensure that DSM funds 14 collected from customers are utilized to support the 15 pursuit of cost-effective energy efficiency and demand 16 response programs, with the limited exception of certain 17 policy considerations . This goal is achieved by applying a 18 multi-step process . Prior to the actual implementation of 19 energy efficiency or demand response programs, Idaho Power 20 performs a preliminary cost-effectiveness analysis to 21 assess whether a potential program design or measure will 22 be cost-effective from the perspective of customers as well NESBITT, DI 16 Idaho Power Company 1 as the Company. Idaho Power measures cost-effectiveness 2 under three tests : the UCT, the TRC test, and the PCT. A 3 review of each test allows for an economic assessment of 4 the life—cycle costs and benefits of a DSM investment from 5 the perspective of DSM program participants, Idaho Power, 6 and non-participating customers . 7 Idaho Power also reviews the cost-effectiveness 8 results for each program and measure on an annual basis to 9 determine whether a program should continue or be modified 10 so it remains cost-effective on an ongoing basis . If a 11 measure or program is identified as non-cost-effective, 12 Idaho Power seeks EEAG input before making its 13 determination on modifying, continuing, or discontinuing an 14 offering. 15 The cost-effectiveness test methodologies and 16 assumptions are described in more detail in the first pages 17 of Supplement 1, included in Attachment 1 to the 18 Application in this proceeding. 19 Q. Does Idaho Power believe its application of 20 the standard economic tests is consistent with Commission 21 directives? NESBITT, DI 17 Idaho Power Company 1 A. Yes . Idaho Power believes its application of 2 the three economic tests is consistent with prior 3 Commission directives, as described in Order No. 33365 :2 4 We thus find it reasonable for the Company to 5 continue screening potential programs using 6 each test as a guideline, and to advise us on 7 how the Company' s programs fare under each 8 test . When the Company ultimately seeks to 9 recover its prudent investment in such 10 programs, however, we believe the Company may 11 (but need not exclusively) emphasize the UCT- 12 and that test ' s focus on Company-controlled 13 benefits and costs—to argue whether the 14 programs were cost-effective . As always, the 15 Company ultimately must persuade us that its 16 program investments were prudent under the 17 totality of the circumstances . 18 19 Because Idaho Power must ultimately demonstrate to 20 the Commission that its program investments were prudent 21 under "the totality of the circumstances, " the Company 22 continues to evaluate performance from the three cost- 23 effectiveness test perspectives . 24 A. 2025 Cost-Effectiveness Results 25 Q. What were the results of the 2025 cost- 26 effectiveness analyses? 27 A. Exhibit No. 2 to my testimony, 2025 Cost- 28 Effectiveness Summary by Program, Sector, and Portfolio, 29 shows the results of the UCT, TRC test, and PCT for every 2 In the Matter of the Application of Idaho Power Company for a Determination of 2014 Demand-Side Management Expenditures as Prudently Incurred, Case No. IPC-E-15-06, Order No. 33365, p. 9-10 (Aug. 28, 2015) . NESBITT, DI 18 Idaho Power Company I energy efficiency program aggregated by sector and for the 2 overall portfolio. As shown in Table 3 below, the overall 3 DSM Portfolio achieved benefit/cost ratios greater than 1 . 0 4 for each of the three cost-effectiveness tests . All three 5 of the program sectors achieved benefit/cost ratios greater 6 than or equal to 1 . 0 from the UCT and PCT perspectives, and 7 only the Residential Sector had a TRC less than 1 . 0 . 8 Table 3 . 2025 Benefit/Cost by Sector & Portfolio Utility Cost Total Participant Sector Test (UCT) Resource Cost Cost Test (TRC) Test (PCT) Residential* 1 . 46 0 . 75 1 . 94 Commercial/Industrial 2 . 09 1 . 00 1 .28 Irrigation 1 . 61 2 . 69 2 . 81 Portfolio* 1 . 70 1 . 37 1 . 78 *Does not include Idaho and Oregon Weatherization Assistance for Qualified Customers Programs 9 Q. Did the Company quantify the Residential 10 Sector and DSM Portfolio cost-effectiveness, including the 11 costs and benefits of the Idaho and Oregon Weatherization 12 Assistance for Qualified Customers ("WAQC") programs? 13 A. Yes . Table 4 below shows the cost- 14 effectiveness of the Residential Sector and the Overall DSM 15 Portfolio with and without the Idaho and Oregon WAQC 16 programs included. 17 Table 4 . Residential and Portfolio Cost-Effectiveness with 18 and without WAQC Sector WAQC Not Included WAQC Included UCT TRC PCT UCT TRC PCT Residential 1 . 46 0 . 75 1 . 94 1 . 13 0 . 65 1 . 83 Portfolio 1 . 70 1 . 37 1 . 78 1 . 64 1 . 34 1 . 78 NESBITT, DI 19 Idaho Power Company 1 While the WAQC programs remain non-cost-effective 2 from an economic perspective, they provide real savings to 3 customers that would otherwise likely be unable to afford 4 to weatherize their homes . The WAQC programs offer health 5 and safety benefits to customers in need that are not 6 quantifiable through the economic tests . 7 Q. What assumptions were utilized to calculate 8 the sector and portfolio cost-effectiveness for 2025? 9 A. Idaho Power relies on research conducted by 10 third parties to obtain savings and cost assumptions for 11 various measures . The Company fixes savings assumptions 12 when budgets and goals are established for the next 13 calendar year unless codes and standards change, or program 14 updates necessitate a need to use updated savings . The 15 remaining inputs are obtained from the Company' s IRP 16 planning process . Because the 2023 IRP was the most 17 recently filed IRP at the time 2025 DSM program planning 18 occurred, Idaho Power used the avoided costs from the 2023 19 IRP in its 2025 program cost-effectiveness analysis . 20 To calculate the sector cost-effectiveness, Idaho 21 Power includes the benefits and costs associated with 22 programs that produce quantifiable energy savings . The 23 portfolio cost-effectiveness is the sum of all energy 24 efficiency activities, including those that do not have 25 savings associated with them, such as overhead expenses . NESBITT, DI 20 Idaho Power Company 1 Q. What are the cost-effectiveness results for 2 each of the Company' s DSM programs? 3 A. As reflected in Exhibit No. 2 to my testimony, 4 on an individual program basis, 10 of the 13 energy 5 efficiency programs offered in Idaho for which the Company 6 calculates cost-effectiveness had benefit/cost ratios 7 greater than 1 . 0 under the UCT. 8 It should be noted that the PCT ratios cannot be 9 calculated for programs that do not have a direct customer 10 cost, and the PCT is shown as "N/A" in Exhibit No. 2 for 11 those programs . The details of the other calculations are 12 found in Supplement 1 of the DSM 2025 Annual Report. 13 Q. How many measures did Idaho Power calculate 14 cost-effectiveness for within each energy efficiency 15 program it offers? 16 A. In 2025, Idaho Power evaluated the benefits 17 and costs of 319 measures . The results of these 18 calculations, along with measure assumption details and 19 source documentation, can be found in Supplement 1 to the 20 DSM 2025 Annual Report. 21 Q. How does Idaho Power address any individual 22 measures that are not cost-effective based on one or more 23 tests? 24 A. The cost and benefit values used in the 25 various analyses are based on markets, technologies, NESBITT, DI 21 Idaho Power Company 1 economic inputs, savings estimates, and cost estimates, 2 which can change over time. When a measure is identified as 3 non-cost-effective at a specific point in time, Idaho Power 4 first evaluates whether the inputs used in the calculations 5 are still applicable. Then the Company determines if the 6 measure parameters should be modified or if the measure 7 should be eliminated altogether. For additional detail on 8 measure analysis, please refer to Supplement 1 to the DSM 9 2025 Annual Report. 10 B. Non-Cost-Effective Programs 11 1 . Income Qualified Weatherization 12 Q. Please explain what drivers influence the 13 cost-effectiveness results for the Idaho WAQC and 14 Weatherization Solutions for Eligible Customers 15 ("Solutions") programs? 16 A. The Idaho WAQC and Solutions programs provide 17 real and substantial per home savings, but due to the costs 18 of comprehensive whole-house weatherization, it is 19 difficult for the value of the savings to outweigh the 20 costs . The weatherization services provided through the 21 Idaho WAQC program are consistent with the Idaho State 22 Weatherization Assistance Program guidelines, and both the 23 Idaho WAQC and Solutions programs are offered at no charge 24 to the participant. Please refer to pages 74 and 89 in the NESBITT, DI 22 Idaho Power Company 1 DSM 2025 Annual Report for the savings, costs, and the 2 number of homes weatherized in 2025 . 3 Q. Did the Company make changes to the programs 4 in 2025? 5 A. Yes . In November 2024 the Commission approved 6 through Order No. 36406 an increase of the maximum annual 7 average cost per dwelling weatherized from $6, 000 to 8 $8, 495 .3 This change was implemented beginning in 2025 and 9 allows Community Action Partnership ("CAP") agencies more 10 flexibility in spending their Idaho Power allotted funds . 11 While the Company does not expect this increase will 12 improve the overall cost-effectiveness of the program, it 13 will review changes in per home savings in future billing 14 analyses once sufficient usage history exists to identify 15 any impact. In addition, at the end of 2025, the re- 16 weatherization option offered under Idaho WAQC was closed. 17 Initiated in 2022, the re-weatherization option allowed for 18 the use of carryover funds to pay for up to 100 percent of 19 Heating Ventilation and Air Conditioning ("HVAC") upgrades 20 in homes that had previously been weatherized through Idaho 21 WAQC within a 14-year period and did not receive an HVAC 22 replacement. When implemented, the re-weatherization option 3 In the Matter of Idaho Power Company Tariff Advice In compliance with Order No. 36042 Related to Changes to Schedule 79 - Tariff Advice No. IPC-TAE-24-03, Case No. IPC-E-24-39, Order No. 36406 at 4 (Nov. 29, 2024) . NESBITT, DI 23 Idaho Power Company 1 was set to run until the earlier of carryover funds being 2 fully expended or the CAP agency contracts expiring at the 3 end of 2025 . 4 Q. Does Idaho Power have plans for further 5 modifications to the Idaho WAQC and Solutions programs? 6 A. Not at this time . While the Company has 7 identified that the programs are not cost-effective under 8 the UCT, unless the Commission directs otherwise, Idaho 9 Power intends to continue providing funding to local 10 Community Action Partnership agencies to offer the programs 11 to the Company' s limited-income customers on an ongoing 12 basis and will monitor how the increased maximum annual 13 average cost per dwelling weatherized impacts the program. 14 The Company will also continue to consult EEAG and the 15 weatherization managers who oversee the weatherization work 16 to look for ways to improve outreach and the cost- 17 effectiveness of these programs as opportunities are 18 available. 19 2 . Heating and Cooling Efficiency Program 20 Q. What were the cost-effectiveness results for 21 the Heating and Cooling Efficiency program? 22 A. As shown in Exhibit No. 2, the Heating and 23 Cooling Efficiency program achieved a UCT of 0 . 89 and a TRC 24 of 0 . 17 . NESBITT, DI 24 Idaho Power Company 1 Q. What was the primary contributor to the 2 program not being cost-effective? 3 A. In 2025, the Heating and Cooling Efficiency 4 program included $69, 035 in administrative expenses from 5 both a process and impact evaluation, representing about 22 6 percent of total HCE program administrative expenses for 7 2025 . Without the evaluation cost, the program would have 8 an UCT and TRC ratio of 1 . 02 and 0 . 18, respectively, which 9 is an improvement from the UCT perspective when compared to 10 2024 . 11 Q. Does Idaho Power expect the program to be 12 cost-effective going forward? 13 A. Based on the Company' s forecast analysis for 14 2026, coupled with the exclusion of the non-recurring 15 evaluation costs, it expects the program to be cost- 16 effective. If at any time during 2026 the Company no longer 17 expects the program to be cost-effective, it would explore 18 changes to improve the cost-effectiveness and discuss those 19 changes with EEAG. 20 C. Demand Response Cost-Effectiveness 21 Q. Does Idaho Power evaluate cost-effectiveness 22 for its three demand response programs? 23 A. Yes . The methodology approved in Order No . NESBITT, DI 25 Idaho Power Company 1 353364 is used to determine the cost-effectiveness of the 2 demand response programs and sets the maximum avoided cost 3 value . In accordance with the approved methodology, the 4 2025 cost-effectiveness threshold for demand response is 5 $64 . 03 per kilowatt ("kW") year. 6 Q. How was the $64 . 03 determined? 7 A. Using the approved method, the avoided cost 8 calculation for the demand response programs is as follows : 9 10 (Levelized Fixed Costs - Additional Benefits) 11 x Effective Load Carrying Capacity ("ELCC") of Annual 12 Demand Response Capacity Compared to Proxy Resource 13 = $ per kW year Demand Response Avoided Costs 14 15 Each of the three components have been updated and 16 are : 17 1 . From the 2023 IRP, the 2025 levelized fixed 18 cost value of a Simple-Cycle Combustion Turbine ("SCCT") 19 was determined to be $149 . 73 per kW per year. 20 2 . From the 2023 IRP, to determine the 21 additional ancillary benefits provided by the SCCT compared 22 to demand response, an analysis was performed where demand 4In the Matter of Idaho Power Company's Application for Approval to Modify its Demand Response Programs, Case No. IPC-E-21-32, Order No. 35336, p. 9-10 (Mar. 4, 2022) . NESBITT, DI 26 Idaho Power Company 1 response was replaced with an equivalent SCCT and the fixed 2 costs of the SCCT were removed from the model . The result 3 of this analysis showed there were $1 . 66 in benefits 4 associated with the SCOT, this value is mainly driven by 5 market prices . 6 3 . The updated ELCC of approximately 323 MW of 7 demand response capacity compared to a SCOT utilizing 2023 8 IRP assumptions is 43 . 24 percent. 9 10 ($149. 73 - $1 . 66) * 43.24 0 = 11 $64. 03 per kW year Demand Response Avoided Cost 12 13 Additional details of the methodology are included 14 in Supplement 1 . 15 Q. What were the total and per kW costs of the 16 Company' s demand response programs? 17 A. In 2025, the system-wide cost of operating the 18 three demand response programs was approximately $10 . 8 19 million ($9 . 1 million of incentives and $1 . 7 million of 20 other costs) . The amounts attributable to the Idaho-only 21 jurisdiction were $10 . 5 million ($8 . 9 million of incentives 22 and $1 . 6 million of other costs) . Table 5 below shows the 23 2025 dollar per kW year costs for each program and the 24 overall demand response portfolio assuming the programs 25 were dispatched for the maximum 60 hours . Idaho Power NESBITT, DI 27 Idaho Power Company 1 estimates that if the three programs were dispatched for 2 the full 60 hours allowed, the total costs would have been 3 approximately $14 . 8 million on a system-wide basis . 4 Table 5 . Demand Response Program 2025 $ per kW year Program $ per kW year Residential A/C Cool Credit $53.22 C&I Flex Peak $26.75 Irrigation Peak Rewards $47 .03 Total Demand Response Portfolio $45.05 5 6 Q. Were the demand response programs cost- 7 effective? 8 A. Yes . All three of the Company' s demand 9 response programs, as well as the demand response 10 portfolio, had a cost per kW less than the 2025 threshold 11 of $64 . 03, meaning the programs and the portfolio were 12 cost-effective . 13 IV. EVALUATION ACTIVITY OVERVIEW 14 Q. What is the Company' s approach to DSM program 15 evaluation? 16 A. To ensure the ongoing cost-effectiveness of 17 programs through validation of energy savings and demand 18 reduction, and to guide the efficient management of its 19 programs, the Company utilizes evaluations conducted by 20 third-party contractors chosen through a competitive 21 bidding process . Idaho Power uses industry-standard 22 protocols, internal analyses, and regional and national 23 studies to inform its internal and external evaluation NESBITT, DI 28 Idaho Power Company 1 efforts . The Company has generally conducted impact 2 evaluations every three years, and conducts process 3 evaluations as needed for relatively new programs or when a 4 program has significant changes . Exhibit No. 3 to my 5 testimony includes the actual frequency of impact and 6 process evaluations from 2010 through a forecast for 2027 . 7 Supplement 2 to the DSM 2025 Annual Report provides 8 additional information regarding how Idaho Power evaluates 9 its programs . 10 Q. How does Idaho Power utilize the evaluations 11 described above? 12 A. Idaho Power uses the results of its 13 evaluations to inform decisions related to program 14 improvement, to compare processes to industry best 15 practices, and to benchmark and validate reported program 16 savings . 17 Q. What evaluation activities took place in 2025? 18 A. In addition to the annual cost-effectiveness 19 analyses that the Company conducts for each program, Idaho 20 Power contracted with several third-party evaluators to 21 conduct impact and process evaluations in 2025 . Evaluations 22 conducted by these evaluators were on the following 23 programs : 24 • Impact and process evaluations on the Heating and 25 Cooling Efficiency, New Construction, Retrofits, NESBITT, DI 29 Idaho Power Company 1 A/C Cool Credit, and Irrigation Peak Rewards 2 programs . 3 • Impact evaluation on the Home Energy Reports 4 Program. 5 • Evaluation of deemed savings potential for the 6 Home Energy Reports Program. 7 • Follow up evaluation to the prior impact 8 evaluation on the Residential New Construction 9 Program. 10 • Internal evaluations on Idaho and Oregon WAQC, 11 Solutions, A/C Cool Credit, C&I Flex Peak, and 12 Irrigation Peak Rewards programs . 13 The impact evaluations that were conducted in 2025 14 analyzed reported savings from the 2024 program year. 15 Realization rates were as follows : 16 • Heating and Cooling Efficiency: 90 . 7 percent . 17 • New Construction: 99 . 7 percent. 18 • Retrofits : 97 . 3 percent. 19 The final reports for these evaluations, and the 20 market effects evaluations conducted by NEEA, are included 21 in Supplement 2 to the DSM 2025 Annual Report. 22 Q. Does Idaho Power have a DSM program evaluation 23 plan for 2026-2027? 24 A. Yes . The evaluation plan is included as 25 Exhibit No. 3 to my testimony and is also included in NESBITT, DI 30 Idaho Power Company 1 Supplement 2 to the DSM 2025 Annual Report. In 2026, Idaho 2 Power' s evaluation plan includes the following third-party 3 evaluations : impact and process evaluations on the 4 Irrigation Efficiency Rewards and Flex Peak Programs . 5 V. STAKEHOLDER INPUT 6 Q. What is EEAG? 7 A. In 2002, Idaho Power formed EEAG to provide 8 input on enhancing existing DSM programs, recommending new 9 energy efficiency measures, and implementing energy 10 efficiency programs . Members include customer 11 representatives from residential, irrigation, commercial, 12 and industrial sectors as well as technical experts, 13 representatives for limited-income individuals, 14 environmental organizations, state agencies, county and 15 city governments, the Commission, and Idaho Power. 16 Q. What is the structure of EEAG meetings? 17 A. EEAG generally meets quarterly, and when 18 necessary additional meetings are held to address special 19 topics . The agenda during EEAG meetings is varied, but 20 typically includes program and project updates, new energy 21 efficiency program or measure proposals, marketing methods, 22 specific measure details including cost-effectiveness, the 23 status of energy efficiency expenses, and general 24 information on DSM issues . When appropriate, the Company NESBITT, DI 31 Idaho Power Company 1 invites experts to speak on evaluations, research, and 2 other topics of interest to enhance EEAG' s understanding. 3 Q. How did Idaho Power solicit guidance from EEAG 4 during the 2025 program year? 5 A. In 2025, the Company held four EEAG meetings 6 in Idaho, two in person with a virtual option and two 7 virtually. During these meetings, Idaho Power discussed and 8 requested recommendations on a broad range of DSM issues . 9 While a comprehensive list of the topics Idaho Power worked 10 with EEAG on for development, design, marketing, or input 11 are included in the DSM 2025 Annual Report, a few of the 12 items are highlighted as follows : 13 • Residential Home Energy Reports : As a result of 14 Order No. 36331 issued in Case No IPC-E-24-11, 15 the Company presented to EEAG alternative ways 16 to validate savings for the Home Energy Reports 17 program that would allow all customers to 18 participate in the program. An Impact 19 evaluation was completed in 2025, as well as an 20 additional evaluation to determine deemed 21 savings potential . The Company will use the 22 results of the deemed savings potential 23 evaluation to evaluate alternative methods and 24 will continue to bring the information to EEAG 25 for feedback in 2026 . NESBITT, DI 32 Idaho Power Company 1 • Rebate Advantage: Faced with changes in savings 2 reported from the Regional Technical Forum due 3 to regional market transformation indicators, 4 the Company shared with EEAG that the program 5 would no longer be cost-effective going forward 6 and sought feedback on whether to suspend or 7 discontinue the program entirely. Idaho Power 8 received general support to suspend the program 9 beginning January 1, 2026, and to monitor 10 market conditions for changes that might make 11 an efficient manufactured homes program cost- 12 effective in the future. 13 • Idaho WAQC Re-weatherization: Idaho Power 14 sought input on whether to close the re- 15 weatherization option at the end of 2025 or 16 extend it until carryover funds were fully 17 expended. At the August EEAG meeting, the 18 Company presented on results from the re- 19 weatherization efforts, current carryover 20 balances and projections for re-weatherization 21 opportunities . While some members indicated 22 support to leave the option available, after 23 updating EEAG at the November meeting that the 24 carryover balances had decreased substantially 25 since the August meeting and were nearly NESBITT, DI 33 Idaho Power Company 1 depleted, it was determined that the option 2 would be closed out at the end of 2025 . 3 • Multifamily and Commercial New Construction - 4 Whole Building Approach: Based on other 5 regional utilities' experience that show 6 increased savings with a whole building 7 approach, there is the potential for a large 8 volume of savings in Idaho Power' s service area 9 for multifamily and commercial buildings that 10 the Company' s prescriptive program (s) have not 11 yet been able to capture, therefore the Company 12 explored a multifamily and commercial new 13 construction whole building approach with EEAG. 14 Under this approach, a third party implementor 15 works with the construction company and design 16 team to influence and encourage high efficiency 17 design and capture additional interactive 18 savings for the whole building. Based on 19 feedback from EEAG, the Company plans to launch 20 this offering in 2026 . 21 • Retrofits and New Construction - Midstream 22 Approach: Looking to increase participation in 23 retrofits and new construction non-lighting 24 measures, the Company explored a midstream 25 program approach with EEAG. A midstream program NESBITT, DI 34 Idaho Power Company 1 is different than the Company' s traditional 2 downstream programs in that it focuses on the 3 distributers and retailers instead of the end- 4 users . The incentives flow through at this 5 higher level of the supply chain to influence 6 distributors and retailers to stock and promote 7 energy efficient products . This in turn helps 8 increase the market share and availability of 9 energy efficient products making them more 10 accessible. Based on feedback from EEAG, the 11 Company plans to launch this program in 2026 . 12 • Baseline Assumptions : In most cases, the 13 Company has traditionally avoided claiming 14 heating savings or incenting customers to 15 install efficient electric equipment for new 16 construction where natural gas is available, or 17 for retrofits when customers have existing 18 natural gas equipment to avoid incentivizing 19 fuel switching. However, the Company has seen 20 an increase in commercial and industrial 21 customers pursuing electric options . Given 22 customers' shifting motivations and practices, 23 the Company explored opportunities with EEAG to 24 incent those customers to install more 25 efficient electric options compared to what NESBITT, DI 35 Idaho Power Company 1 electric options might otherwise be installed, 2 even where natural gas is available or 3 currently in use. 4 • NEEA Marketplace Pilot: NEEA is launching an 5 online marketplace pilot that would provide 6 customers a streamlined online platform to 7 explore energy efficient appliances and 8 equipment. The marketplace pilot allows 9 utilities to join at different funding levels 10 to receive varying levels of options and 11 benefits such as utility branding, allowing for 12 customers to apply for utility rebates directly 13 through the marketplace, and control over 14 product categories shown. The Company sought 15 feedback from EEAG about whether Idaho Power 16 should participate in the pilot, and at what 17 level . 18 VI . CONCLUSION 19 Q. Do you believe that the information contained 20 in this testimony and attached exhibits supports a prudence 21 determination for 2025 DSM expenses? 22 A. Yes . Based on the DSM 2025 Annual Report, the 23 testimony set forth above, and the attached exhibits, Idaho 24 Power respectfully requests the Commission determine that NESBITT, DI 36 Idaho Power Company 1 $37, 876, 413 was prudently incurred for the acquisition of 2 demand-side resources in 2025 . 3 Q. Does this conclude your testimony? 4 A. Yes, it does . NESBITT, DI 37 Idaho Power Company 1 ATTESTATION OF TESTIMONY 2 3 STATE OF IDAHO ) 4 ) ss . 5 County of Ada ) 6 7 I, Quentin Nesbitt, having been duly sworn to 8 testify truthfully, and based upon my personal knowledge, 9 state the following: 10 I am employed by Idaho Power Company as the Customer 11 Relations and Program Manager in the Customer Operations 12 Department and am competent to be a witness in this 13 proceeding. 14 I declare under penalty of perjury of the laws of 15 the state of Idaho that the foregoing pre-filed testimony 16 and exhibits are true and correct to the best of my 17 information and belief. 18 DATED this 13th day of March 2026 . 19 20 21 Quentin Nesbitt 22 SUBSCRIBED AND SWORN to before me this 13th day of 23 March 2026 . 24 &Dd-- 2 5 T HRKTY LYN DAVENPORT NgA-y Vubl1c State of Idah]2026 26 C«nmi»ionNumibei 52970Notary Public for Idaho 27 MYcnnrnis-onExpkvsSep To, Residing at Ada County Idaho 28 My commission expires : 09/10/2026 NESBITT, DI 38 Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-26-05 IDAHO POWER COMPANY NESBITT, DI TESTIMONY EXHIBIT NO. 1 Exhibit 1 2025 Idaho DSM Expenses and Adjustments for Prudence Filing Demand Response Sector/Program Idaho Rider Program Incentives Total Recorded in PCA Energy Efficiency Residential A/C Cool Credit 744,318 325,079 1,069,397 Educational Distributions 812,932 - 812,932 Heating and Cooling Efficiency Program 384,961 384,961 Home Energy Audit 115,931 115,931 Home Energy Report Program 767,603 767,603 Low-Income Energy Efficiency Education 119,804 119,804 Multifamily Energy Efficiency Program 458,832 458,832 Rebate Advantage 156,688 156,688 Residential New Construction Program 199,938 199,938 Weatherization Assistance for Qualified Customers(Idaho) 771,466 771,466 Weatherization Solutions for Eligible Customers 148,132 148,132 Commercial/Industrial - - Commercial and Industrial Energy Efficiency Program C&I New Construction 2,570,978 2,570,978 C&I Retrofits 4,712,883 4,712,883 Custom Projects 9,350,459 - 9,350,459 Flex Peak Program 8,844 466,126 474,970 Small Business Lighting Program 265,234 - 265,234 Irrigation - - Irrigation Efficiency Rewards 1,764,797 - 1,764,797 Irrigation Peak Rewards 522,112 8,148,519 8,670,631 Energy Efficiency/Demand Response Total 23,875,912 8,939,724 32,815,636 Market Transformation Northwest Energy Efficiency Alliance 3,239,863 - 3,239,863 Market Transformation Total 3,239,863 3,239,863 Other Programs and Activities Commercial/Industrial Energy Efficiency Overhead 191,565 191,565 Energy Efficiency Direct Program Overhead 29,522 29,522 Residential Energy Efficiency Education Initiative 204,664 204,664 Residential Energy Efficiency Overhead 961,805 961,805 Other Programs and Activities Total 1,387,556 - 1,387,556 Indirect Program Expenses Energy Efficiency Accounting&Analysis 440,027 440,027 Energy Efficiency Advisory Group 2,240 2,240 Special Accounting Entries 340 340 Indirect Program Expenses Total 442,606 442,606 Total DSM Expense 28,945,938 8,939,724 37,8859661 Adjustments Prior year-end accounting adjustments: Home Energy Audit(a) (5,383) (5,383) Rebate Advantage(a) (5,523) (5,523) Irrigation Peak Rewards(b) 2,278 2,278 Current year-end accounting adjustments: Home Energy Audit(c) (244) (244) Residential New Construction Program(d) 346 346 Residential Energy Efficiency Overhead(c) (723) (723) 2025 Prudence Filing Total $ 28,936,689 $ 8,939,724 $ 37,876,413 (a)2024 Idaho Rider expense initially charged to O&M.The correction was made in 2025. (b)2024 O&M expense initially charged to the Idaho Rider The correction was made in 2025. (c)2025 Oregon Rider expense initially charged to the Idaho Rider,correction planned for 2026. (d)2025 Idaho Rider expense initially charged to the Oregon Rider,correction planned for 2026. Exhibit No.1 Case No.IPC-E-26-05 Q.Nesbitt,IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-26-05 IDAHO POWER COMPANY NESBITT, DI TESTIMONY EXHIBIT NO. 2 2025 Cost-Effectiveness Summary by Program, Sector, and Portfolio 2025 Benefit/Cost Tests Utility Cost Test Total Resource Cost Participant Cost Program/Sector (UCT) (TRC) (PCT) Educational Distributions 2.27 2.62 N/A Heating & Cooling Efficiency Program 0.89 0.17 0.41 Home Energy Reports 1.42 1.56 N/A Multifamily Energy Efficiency Program 2.60 0.72 1.41 Rebate Advantage 1.27 0.51 1.73 Residential New Construction 1.03 1.55 5.60 Weatherization Assistance for Qualified Customers (Idaho) 0.13 0.22 N/A Weatherization Assistance for Qualified Customers (Oregon) 0.08 0.32 N/A Weatherization Solutions for Eligible Customers 0.13 0.20 N/A Residential Energy Efficiency Sector 1.46 0.75 1.94 Commercial and Industrial Energy Efficiency Program C&I Custom Projects 2.16 0.80 0.96 C&I New Construction 2.15 2.14 3.14 C&I Retrofits 2.00 1.10 1.45 Small Business Lighting 1.04 1.29 2.23 Commercial/Industrial Energy Efficiency Sector 2.09 1.00 1.28 Irrigation Efficiency 1.61 2.69 2.81 Irrigation Energy Efficiency Sector 1.61 2.69 2.81 Energy Efficiency Portfolio 1.70 1.37 1.78 1 Residential sector cost-effectiveness excludes WAQC benefits and costs. If included, the UCT, TRC, and PCT would be 1.13, 0.65 and 1.83, respectively. 2 Portfolio cost-effectiveness excludes WAQC benefits and costs. If included, the UCT, TRC, and PCT would be 1.64, 1.34 and 1.78, respectively. Exhibit No. 2 Case No. IPC-E-26-05 Q. Nesbitt, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-26-05 IDAHO POWER COMPANY NESBITT, DI TESTIMONY EXHIBIT NO. 3 Customer Relations and Energy Efficiency 2026-2027 Program Evaluation Plan 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015t 2014 2013 2012 2011 2010 Residential Energy Efficiency Programs Educational Distributions I I/P Energy House Calls I/P I P Heating&Cooling Efficiency Program I/P I/P I/P P I P Home Energy Audit I/P I P Home Energy Reports Program 1/0 1 P Multifamily Direct Install Program I/P Multifamily Energy Efficiency Program I/P Rebate Advantage I/P I I/P I Residential New Construction Program I/P OI I/P Shade Tree Project I O P Weatherization Assistance for Qualified Customers Idaho and Oregon) O LEE O P I Weatherization Solutions for Eligible Customers O O O P I Commercial/Industrial Energy Efficiency Programs Commercial Energy-Saving Kits I/P C&I Custom Projects I/P UP 1/P I P I/P I P C&I New Construction I/P I/P I P I I P C&I Retrofits I/P UP I P I P I P Small Business Direct-Install P Small Business Lighting I/P Irrigation Energy Efficiency Programs Irrigation Efficiency Rewards I/P I I/P I/P P/O I/P P Demand-Response Programs A/C Cool Credit O O I/P/0 O O O 1 O 1 O O 1 1 1 O P O Flex Peak Program O 1 I/P/O 1 O O O O 1/0 O O O O 1/0 1/0 P/O O Irrigation Peak Rewards O 1 O 1 I/P/O O O O 1/0 O O O O O 1/0 O O O 'Enerav efficiencv nroorams evaluated in 2015 have since been eliminated or combined into another Droaram. Evaluation TVDe: I=Impact.P=Process.O=Other Program not active Exhibit No. 3 Case No. IPC-E-26-05 Q. Nesbitt, IPC Page 1 of 1