Attch48_IPCE0113_112101_PressRelease.doc

Case No. IPC-E-01-13
Order No. 28894
IDAHO PUBLIC UTILITIES COMMISSION
NEWS RELEASE
For Immediate Release / Nov. 21, 2001
Contact: Gene Fadness [phone]

Commission orders conservation program, delays surcharge
BOISE – The Idaho Public Utilities Commission is directing Idaho Power Co. to implement conservation programs in time for this winter's heating season, but is directing the company to use existing resources to cover the costs of the short-term programs. The company had requested a two-year surcharge to fund the programs.
The programs, called demand side management programs, include financial incentives to residential customers such as compact fluorescent bulb coupons, Energy Star appliance incentives, high efficiency air conditioner and heat pump rebates, weatherization loans and low-income assistance. Similar programs are also proposed for industrial and irrigation customers. Demand-side management programs are intended to conserve energy, reduce power use at peak times and increase the efficient use of electricity.
Idaho Power asked that a two-year tariff rider be added to customer bills to generate $2.6 million to fund the programs. The rider would have resulted in an increase to the average residential bill of about 28 cents a month.
The commission decided not to grant the rider at this time. "Given the large rate increases authorized already this year, the commission is reluctant to raise rates any further by implementing a tariff rider at this time, even to fund a worthy endeavor such as this," the commissioners said.
Commissioners noted that due to extremely low water conditions and unusually high wholesale power costs, Idaho Power's residential rates have increased a combined average of 31 percent in the last seven months. Had demand-side management programs such as those proposed now been in place during the last year, they "may have reduced power supply costs and the subsequent increases in Idaho Power's rate," the commissioners said.
The commission directed the company to use the $43,000 a month it gets from the Bonneville Power Administration's Conservation and Renewable Discount to fund the programs. Any expenses beyond that credit can be included in the company's power cost adjustment it will file next spring.
The commission directed the company to immediately do three things:
Distribute an informational packet to customers who use more than 2,000 kWh a month and to those who qualify for low-income assistance. The packet should provide customers with effective tools to reduce their electric consumption and inform them of existing programs such as the Home Energy Audit.
Expand its Home Energy Audit program. At the customer's request, an Idaho Power delivery service representative will visit the customer's home and identify areas of inefficiency and recommend concrete ways to reduce the electric bill.
Implement an in-house residential weatherization program and enhance its funding to the existing low-income weatherization assistance program.

The commission said it intends to revisit funding for a comprehensive, long-term demand-side management program when Idaho Power submits is power cost adjustment application next spring.
To recommend longer-term DSM measures, the commission ordered Idaho Power to form an Energy Efficiency Advisory Group with a diverse membership, including consumers representing various customer classes, such as residential and industrial.
The commission wants the advisory group to consider implementing time-of-use metering pilot program. The meters would allow customers to gauge their power use by the hour and adjust it accordingly.
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