Attach29_IPCE0113_O.N.28839.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE INVESTIGATION OF INCREASED DEMAND-SIDE MANAGEMENT PROGRAMS AND THE FUNDING OF THOSE PROGRAMS FOR IDAHO POWER COMPANY. )
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) CASE NO. IPC-E-01-13

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

ORDER NO. 28839

In Order No. 28722 issued May 1, 2001, the Commission directed Idaho Power Company to file a comprehensive demand-side management (DSM) plan. DSM is a term commonly used to describe various measures that conserve energy, reduce demand peaks, and/or increase the efficient use of electricity. The Order required the Company to file a “comprehensive DSM program by August 1, 2001 that details program structure, potential conservation measures to pursue and funding options that include a tariff rider.” Order No. 28722 at 21. On July 31, 2001, Idaho Power submitted its DSM Application. In this Order and Notice, the Commission seeks public comments regarding Idaho Power’s proposed DSM program.
NOTICE OF APPLICATION
In its Application, the Company reports that it expended almost $1.4 million for conservation and energy efficiency programs in the year 2000 and anticipates funding over $2.25 million in energy efficiency programs in 2001. These existing programs include the funding of “weatherization” projects for low-income customers and Idaho Power’s participation in the market transformation efforts sponsored by the Northwest Energy Efficiency Alliance (NEEA) in addition to education efforts, Project Share and the Green Energy Purchase Program. See Order No. 28333. Idaho Power’s low-income residential weatherization funds are used by various community action agencies for measures that typically include adding insulation, adding or replacing storm windows and doors, installing weather stripping, wrapping heating/cooling ducts, insulating water heaters, etc.
YOU ARE HEREBY NOTIFIED that the Company proposes a list of potential new conservation measures for each of its major customer classes. For residential customers, these measures include distributing discount coupons to purchase compact fluorescent lamp (CFL) bulbs. Replacing incandescent light bulbs with CFLs represents a potential energy saving of 60-70% per bulb. In addition, the Company would offer Energy Star appliance incentives; rebates for the purchase of high efficiency air conditioners and heat pumps; buy-down the financing for weatherization programs; duct sealing; improved energy conservation measures for new construction; and low-income assistance enhancements. Application at Appendix 3.
YOU ARE FURTHER NOTIFIED that the Company has identified several conservation measures for its commercial and industrial customers. These DSM measures include CFL bulb coupons, deploying “Vending Miser” technology, reduced air movement (RAM) incentives, LED traffic lighting incentives, waste water aerators incentives (BacGen), building “tune-up” programs, lighting acceleration programs, small retrofit programs, and projects customized to individual customers.
YOU ARE FURTHER NOTIFIED that for irrigation customers, Idaho Power recommends improving existing DSM measures and implementing new DSM improvements. The Company identified five new conservation measures including using 15 psi irrigation nozzles, 40 x 40 riser spacing, float control nozzles, pump efficiencies, and variable speed drives on moving irrigation systems.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes spending $150,000 per year as its contribution to the Pacific Northwest Public Mobilization Campaign.
YOU ARE FURTHER NOTIFIED that, as proposed by Idaho Power, the total cost of implementing these potential DSM or conservation measures is approximately $2.8 million. The Company estimates that these DSM projects would conserve approximately 47,000 megawatt hours per year (MWha). The Company notes that not all of the listed programs could be implemented with the assumed size and program design. Appendix 3 at 1.
YOU ARE FURTHER NOTIFIED that based on a survey of its customers Idaho Power says that while most of its customers support the concept of utilities offering DSM programs, over half of the survey respondents did not want to pay slightly higher rates to fund these programs.
YOU ARE FURTHER NOTIFIED that Idaho Power believes that a tariff “rider” or surcharge would be appropriate to recover the expenses of these programs. It believes a rider would provide energy efficiencies while eliminating budgeting concerns and regulatory risk. Application at 6. The Company proposed a two-year rider that would generate approximately $2.6 million in annual revenue or approximately 0.5% of its operating revenues. Id. at 8. The average residential monthly bill would increase by approximately 28 cents ($0.28). Implementing these programs would increase the Company’s total spending on DSM, low-income bill assistance, customer education, and “green” energy to approximately 1.0% of total revenues, as compared to the Northwest investor-owned utility average of 0.7% and Avista Corporation’s recently approved average of 1.95%. Id. at 7-8.
YOU ARE FURTHER NOTIFIED that the Company also recommends the creation of a “Energy Efficiency Advisory Group” whose primary purpose would be to advise the Company on new conservation measures, revisions to existing conservation measures, prioritization of various DSM projects, and to assist with DSM program evaluation. The Company suggests that this advisory group be made of community members, Commission Staff, Company employees, and technology specialists. The Company would then review the DSM measures recommended by the advisory group but would, itself, make the final decision on all programs. Id. at 11.
MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the Company has complied with the DSM filing requirement of Order No. 28722. The Commission finds that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure, IDAPA 31.01.01.201 through -.204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on Idaho Power’s DSM Application may file a written comment in support or opposition with the Commission within twenty-one (21) days from the date of this Notice. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically request a hearing in their written comments. Written comments concerning this application shall be mailed to the Commission and the Applicant at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 LARRY RIPLEY
SENIOR ATTORNEY
BETSY GALTNEY
REGULATORY AFFAIRS REPRESENTATIVE
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707
Email: [e-mail]
[e-mail]

Persons desiring to submit comments via e-mail may do so by accessing the Commission’s homepage located at www.puc.state.id.us under the “Comments and Questions” icon. Once at the “Comments and Questions” icon, fill in the case number as it appears on the front of this document, and enter your comments. These comments should also be sent to the Applicant at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that those parties to Case Nos. IPC-E-01-7 and IPCE-01-11 that wish to participate in this matter as parties should notify the Commission Secretary no later than fourteen (14) days after the date of this Notice of their desire to participate as parties. The Commission Secretary shall then prepare a service list for this case.
YOU ARE FURTHER NOTIFIED that the Application filed with the Commission is available for public inspection during regular business hours at the Commission offices.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
IT IS HEREBY ORDERED that this matter be processed under our rules of Modified Procedure. IDAPA 31.01.01.201-204. Persons interested in commenting in this matter may do so by filing comments with the Commission Secretary no later than 21 days from the date of this Notice and Order.
IT IS FURTHER ORDERED that parties to Case Nos. IPC-E-01-7 and IPC-E-01-11 that wish to be parties in this case notify the Commission Secretary by letter no later than 14 days from the date of this Notice and Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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Although CFLs cost more than incandescent bulbs, they last 10-15 times as long. Source: U.S. Dept. of Energy, www.eren.doe.gov/erec/factsheets/eelight.

“Energy Star” is a voluntary labeling program designed to identify and promote energy-efficient products. The program was introduced by the U.S. Environmental Protection Agency in 1992 as a means of reducing carbon dioxide emissions. Energy Star label applies to new homes, building products, residential heating and cooling equipment, major household appliances, office equipment, lighting, consumer electronics, and other products. For more information on Energy Star see www.epa.gov/nrgystar.

“Vending Miser” is a device used with refrigerated indoor vending machines. The device reduces both lighting and regulates the refrigeration condenser. Using the device with each refrigerated vending machine is estimated to save 1,200 kWh annually per machine. With an estimated 2,300 vending machines, it would result in an energy savings of approximately 2,760,000 kWh per year. See Application at Appendix 3.

“RAM” refers to the conservation of energy by reducing unnecessary air movement or unnecessary pressure buildup in buildings. Conservation measures in this area include discontinuance of restrictive duct dampers and matching fan speed for optimal energy savings. See Application at Appendix 3.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28839 1

Office of the Secretary
Service Date
August 30, 2001