20060712IPC to Staff 48-73.pdf

REQUEST NO. 48: Will there be any tax benefits related to construction
of the Evander Andrews plant? If so, please describe.
RESPONSE TO REQUEST NO. 48: Certain parts of the project may
qualify as exempt from Idaho sales tax as pollution control equipment (Idaho Code
Section 63-3622x). It has not been determined what portion of the construction cost
may be exempt , but the Company intends to work closely with the contractor to identify
any equipment that may qualify for the exemption.
The response to this request was prepared by Randall R. Henderson , Business
Analyst Power Supply Reporting, Idaho Power Company, in consultation with Barton L.
Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 49: Please describe any contractual (market) products
that may be available that could provide capacity and energy comparable , or nearly
comparable , to that which would be provided in the first five years of the Evander
Andrews plant. Please provide the current price for these products and identify the
source from which the prices have been obtained. Please discuss how the Evander
Andrews plant would be different, better, or worse than such products.
RESPONSE TO REQUEST NO. 49: The commonly traded liquid
products consist of flat blocks of heavy load and light load energy traded at a hub such
as Mid Columbia or Palo Verde. To move these energy products to Idaho Power
system typically requires the use of multiple transmission paths. The price for those
products is detailed in the response to Request No. 50.
It may be possible to purchase a custom-made product from a marketer that
provides structured products. The most similar product would be a daily call option , or a
heat rate option , that would allow Idaho Power to call on energy with a price based upon
a fixed heat rate multiplied by the price of natural gas. Both of these products would
provide for a heavy load block of energy to be delivered at a liquid hub such as Mid
Columbia, requiring Idaho Power to move energy across multiple transmission paths
which involve seasonal congestion risk. A bank such as Morgan Stanley or marketing
company such as Sempra would be the primary provider of these types of products.
Because these products provide a significant amount of optionality, they carry a
significant premium to fixed priced term products, as well as credit exposure to the
selling party. Idaho Power does not have any existing quotes for this type of product.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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Evander Andrews provides a number of benefits compared to these products. It
is located near the load center and , therefore , does not require transmission over
congested paths. It does not involve credit exposure to a third party. It allows Idaho
Power to generate energy over select super peak hours as opposed to purchasing a
sixteen hour block of energy to more closely fit its load requirements. It allows Idaho
Power to call on the energy with very little advance notice when faced with unexpected
loss of generation or higher than expected loads.
The response to this request was prepared by Dave Churchman
Manager, Power Supply Operations , Idaho Power Company, in consultation with Barton
L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 50: Please provide a summary of the average price
during each of the months since January 2006 of the Mid-C forward prices for the period
2006-2010 for firm heavy load hour products. Please describe the product(s) for which
the prices are representative and discuss how they differ from Idaho Power s stated
needs in its March 2005 RFP.
RESPONSE TO REQUEST NO. 50: The average Dow Jones index
heavy load price at Mid C for the first five months of the year is as follows: January,
$57.64; February, $51.39; March , $44.57; April , $23.96; May, $30.98, June was not
available at the time the response was prepared. According to estimates received from
TFS Energy, a Connecticut based electricity broker, on June 23 2006 the market prices
for the following periods were as follows: July 1 2006 to December 31 2006 - $57.00;
Calendar 2007 - $66.00; Calendar 2008 - $64.00; Calendar 2009 - $61.00; Calendar
2010 - $58.00.
These prices represent the price of heavy load energy delivered in a flat
block from Hour Ending 0700 PT - Hour Ending 2200 PT, Monday through Saturday,
excluding holidays. The delivery point for the energy is Mid Columbia. To deliver
energy from Mid Columbia to Idaho Power s load requires transmission across one or
more of the following systems: Bonneville Power, PacifiCorp, Avista, Northwestern, in
conjunction with transmission across Idaho Power s transmission system from the Hells
Canyon Complex to its load center. Because one or more of these paths are subject to
congestion, energy purchased at Mid Columbia cannot be used at all times to meet the
load requirements of Idaho Power.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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The response to this request was prepared by Dave Churchman
Manager, Power Supply Operations , Idaho Power Company, in consultation with Barton
L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 52: Please discuss any demand-side management
(DSM) alternatives considered as a means of minimizing or replacing the need for new
generation from the Evander Andrews plant. What action has Idaho Power taken to
attempt to identify, quantify and price DSM alternatives?
RESPONSE TO REQUEST NO. 52: The 2004 IRP identified a diverse
mix of resources that balance cost, risk and environmental concerns. The selected
portfolio of resources is composed of a variety of resource types including renewable
DSM programs, thermal and combined heat and power. The Evander Andrews plant
and six DSM resources combined fulfill a portion of the resource acquisition plan
proposed by the 2004 IRP.
The six DSM resources identified in the 2004 IRP include two demand
response programs and four energy efficiency programs each targeting summer peak
loads. The six DSM programs were designed with input from the Energy Efficiency
Advisory Group and were successfully implemented during 2005. Each of the DSM
programs primarily serves to reduce the need for future peaking generation beyond that
which was identified in the 2004 IRP. However, in the near-term , the programs can
reduce the frequency and duration of operation of the Evander Andrews plant.
The six DSM programs were identified through a comprehensive analysis
as part of the Company s 2004 IRP process. The DSM analysis process began with an
assessment of the potential for energy efficiency and demand response resources that
specifically target the summer peak loads within the Company s service area. The
assessment considered each of the Company s major customer classes: residential
commercial, industrial, and irrigation. The portion of the assessment that focused on the
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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residential and commercial customer classes was conducted by a third-party consultant
Quantum Consulting, Inc. The industrial and irrigation portion of the assessment was
completed by Idaho Power subject matter experts.
The assessment results served as the basis for several DSM program
options that were analyzed through a pre-screening process. During this portion of the
process the program designs were further refined and incentive levels were priced
against a set of supply-side alternative costs. Finally, the energy efficiency program
options were input into the Aurora Electric Market Model to determine how each option
impacts the Company s power supply costs are were subsequently selected on that
basis.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations, Idaho Power Company, in
consultation with Barton L. Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 53: Please provide complete program descriptions of
Idaho Power s DSM programs. Discuss the status of these programs including
participation levels, funding commitments and future expansion plans. Describe how
these programs reduce any of the peak load that would otherwise have to be satisfied
using the proposed Evander Andrews plant.
RESPONSE TO REQUEST NO. 53: The 2004 IRP identified a diverse
mix of resources that balance cost, risk and environmental concerns. The selected
portfolio of resources is composed of a variety of resource types including renewable
DSM programs, thermal and combined heat and power. The Evander Andrews plant
and the six DSM reserves fulfill a portion of the resource acquisition plan proposed in
the 2004 IRP.
The Company s Demand-Side Management 2005 Annual Report provides
the requested information related to DSM program activity in fulfillment of its portion of
the resource acquisition plan and is attached hereto as "Response to Request No. 53.
Each of the DSM programs detailed in the report helps the Company to reduce the need
for additional generation resources.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations, Idaho Power Company, in
consultation with Barton L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 54: Has Idaho Power considered any additional load
management programs , rate designs or other strategies that could reduce the
Company s peak load during those months and hours when the Evander Andrews plant
is expected to operate? If so, does the Company have any specific plans to introduce
such programs? Please provide copies of any reports , studies or analysis of any load
management programs considered.
RESPONSE TO REQUEST NO. 54: Yes. Based on the recommendation
of the 2004 IRP Advisory Council , the Company commissioned an expanded
assessment of DSM potential within the residential and commercial customer classes.
This assessment included resources that target summer peak loads in addition to base-
loads throughout the rest of the year. Quantum Consulting Inc. completed the Idaho
Power Demand-Side Management Potential Study in the fall of 2004 and the Company
filed the study with the Commission on December 15 , 2004 as a supplement to the
2004 IRP. The results of this study have provided guidance in the design of two DSM
retrofit programs for the commercial and residential customer classes which are
currently being analyzed as part of the Company s 2006 IRP. If selected, the two new
DSM programs will operate as base-load demand-side resources that will also have a
considerable impact on peak loads.
The Company continues to implement additional load management
strategies and explore new DSM opportunities. In April 2006, the Company filed for and
subsequently received approval to extend its Time-Of-Day and Energy Watch Pilot
Programs (Case No. IPC-06-05). Both of these programs utilize price signals to
motivate customers to use less energy during summer peak times. The two pricing pilot
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 25
programs will continue through the summer of 2006 in order to provide the Company
with additional information to better evaluate potential program impacts.
The Company has also assembled a working group that is currently
exploring possible enhancements to the current Irrigation Peak Rewards Program that
will result in additional peak load reduction. The working group includes representatives
from the Idaho Irrigation Pumpers Association , the Commission Staff, Idaho Power
irrigation customers and Company personnel. Any program enhancements will be filed
with the Commission in advance of the 2007 irrigation season.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations , Idaho Power Company, in
consultation with Barton L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 26
REQUEST NO. 55: Has the Company implemented all of the DSM
programs that have been identified as cost-effective in previous IRPs or studies of DSM
potential? If not , please list and describe each of the programs that have not been
implemented and explain why they have yet to be implemented. What are the potential
energy and capacity savings estimates associated with each of these programs?
RESPONSE TO REQUEST NO. 55: Yes. The six DSM programs
identified in the Company s 2004 IRP final resource portfolio were designed with input
from the Energy Efficiency Advisory Group and successfully implemented during 2005.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations, Idaho Power Company, in
consultation with Barton L. Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
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REQUEST NO. 60: Please provide a complete description of any actual
or proposed energy or capacity sales to any other parties from the Evander Andrews
plant. If no sales agreements have yet been made, does Idaho Power expect to make
them in the future?
RESPONSE TO REQUEST NO. 60: Idaho Power is not actively pursuing
any actual or proposed energy sales from the Evander Andrews plant at this time.
Please refer to the Response to Request No. 27.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations, Idaho Power Company, in
consultation with Barton L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 28
REQUEST NO. 62: Please discuss any plans Idaho Power has to issue
additional RFPs in the next five years. What would be the timing of the RFPs and what
type and size of resource would the Company be seeking?
RESPONSE TO REQUEST NO. 62: At present, Idaho Power does not
have definitive plans to issue any additional RFPs during the next 5 years. However
depending on the preferred portfolio selected in the 2006 IRP, the number of PURPA
projects developed on Idaho Power s system , and the outcome of the Geothermal RFP
it is possible that Idaho Power will issue additional RFPs for wind , geothermal or
combined-heat and power resources within the next five years. Idaho Power anticipates
that development work will continue for a future coal-fired resource; however, Idaho
Power does not anticipate using a traditional RFP process for this resource.
The response to this request was prepared by Karl E. Bokenkamp,
General Manager Power Supply Planning and Operations, Idaho Power Company, in
consultation with Barton L. Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 29
REQUEST NO. 63: Please provide an update on the status of the 2006
wind and geothermal RFPs.
RESPONSE TO REQUEST NO. 63: The 2006 geothermal RFP was
released on June 2 , 2006 with bids due no later than August 11 , 2006. It is currently
anticipated that the successful bidder will be identified in February 2007.
The response to this request was prepared by Tom Harvey, Fuels
Management Coordinator, Idaho Power Company, in consultation with Barton L. Kline
Senior Attorney, Idaho Power Company.
Idaho Power Company has concluded the Wind RFP selection process
and is initiating contract negotiations with the successful bidder. The Company
anticipates receiving energy from the wind project by the end of 2007.
The response to this request was prepared by Thomas A Noll, Ph.
Customer Load and Research Leader, Idaho Power Company, in consultation with
Barton L. Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 30
REQUEST NO. 64: Please provide all plans of Idaho Power relating to
financing construction of the Evander Andrews plant. Please describe how construction
of the Evander Andrews plant will be financed. Include a summary of the payment
schedule Idaho Power will follow. Also include an estimate of AFUDC and the analysis
supporting the statement "Such financing by the Company allows for a lower total cost
to customers than if Siemens were to finance the Project in a different manner." Said
direct testimony, page 20 , lines 1-4. Please provide copies of any financing
agreements.
RESPONSE TO REQUEST NO. 64: Idaho Power intends to fund the
construction of the Evander Andrews plant as part of its capital spending program. No
special financing arrangements, debt, or equity issuances are planned to specifically
fund the project. The Company plans to finance its capital spending program with a
combination of internally generated cash , debt and new equity, with a goal to maintain a
50/50 capital structure of debt and equity on the balance sheet. Idaho Power s secured
debt rates are generally more favorable than specific project or contractor financing.
The Company will make periodic milestone payments to the contractor as project
progress is made (see schedule below). Costs will be tracked through the Company
plant accounting system and AFUDC will accumulate on the overall work order
balance(s) in accordance with regulatory guidelines. The total AFUDC amount
anticipated to be capitalized to the project is approximately $3.1 million.
The response to this request was prepared by Randall R. Henderson , Business
Analyst Power Supply Reporting, Idaho Power Company, in consultation with Barton L.
Kline , Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 31
PAYMENT & CANCELLATION SCHEDULE
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July 1 , 2006
Aug 1 , 2006
Sept 1 , 2006
Oct 1 , 2006
Nov 1 , 2006
Dec 1 , 2006
Jan 1 , 2007
Feb 1 , 2007
Mar 1 2007
April 1 , 2007
May 1 , 2007
June 1 , 2007
July 1 , 2007
Aug 1 , 2007
Sept 1 , 2007
Oct 1 , 2007
Nov 1 , 2007
Dec 1 , 2007
Jan 1 , 2008
Feb 1 , 2008
Mar 1 , 2008
April 1 , 2008
June 1 , 2008
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Notice to Proceed
July 1 , 2006
Aug 1 , 2006
Sept 1 , 2006
Oct 1 , 2006
Nov 1 , 2006
Dec 1 , 2006
Engineering Kickoff
CT Equipment Arrangement Dwg
CTG MV Single Line Diagram
Major Equipment Foundation
Dwgs
CT Customer Pipe Connections &
DesiQn Parameters
Site Mobilization
5%(1)
15%
10%
10%
10%
. 'y:~~,
;li~~a
20%
25%
30%
35%
42%
52%
62%
72%
77%
81%
83%
85%
90%
93%
95%
99.
100%
July 1 , 2007
CT Power Block Foundation
Excavation Complete
CT Foundation Complete
CT and Generator on Site
10%
10%
15%
20%
25%
30%
35%
45%
55%
65%
75%
85%
95%
100%
100%
100%
100%
100%
100%
100%
100%
(1) In the event Purchaser has paid Contractor for the generator step-up transformer per Appendix Q prior to Sept 1
Set CT and Generator Complete
Control Building Structure
Complete
CT Enclosure Complete
First Turning Gear
First Fire & Synchronization
Provisional Acceptance
2006, then the Sept 1 20065% payment shall reflect the advance Appendix Q payment of $700,000. Therefore
Final Acceptance
Purchaser shall be invoiced on Sept 1 2006 a total of 5% of the Purchase Price less $700,000.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 32
REQUEST NO. 65: Does any financing arrangement of Idaho Power
depend on the acceptance of the Idaho Public Utilities Commission s (IPUC) approval of
Idaho Power s Application to rate base the plant? If so, provide a copy of the pertinent
document.
RESPONSE TO REQUEST NO. 65: No financing arrangement is
dependent on I PUC approval.
The response to this request was prepared by Randall R. Henderson
Business Analyst Power Supply Reporting, Idaho Power Company, in consultation with
Barton L. Kline, Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 33
REQUEST NO. 68: Please provide an update on the status of the
negotiation with the cogenerator referred to on page 6, lines 17-20 of Greg Said's direct
testimony. How much capacity and energy does Idaho Power expect will be made
available if the contract with the cogenerator is executed? If the contract is executed
how will it change Idaho Power s load resource balance and need for power?
RESPONSE TO REQUEST NO. 68:
Negotiations continue between Idaho Power and this proposed
cogeneration project. The project has proposed sizes ranging from 35 MW up to 110
MW for this project coupled with continuous 24 hour-a-day operations or fully
dispatchable operations.
Both Idaho Power and the proposed project have expended significant
effort in these negotiations. However, at this time it would be premature to speculate on
the final outcome of these negotiations and the actual impact the resource may have on
Idaho Power s energy needs.
The response to this request was prepared by Randy C. Allphin, CSPP
Contract Administrator, Idaho Power Company, in consultation with Barton L. Kline
Senior Attorney, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 34
REQUEST NO. 73: Please quantify the anticipated economies of
centralizing operations and using the present staff at the Evander Andrews site to
operate the new plant. Please describe and quantify any other operational benefits of
locating the plant at the Evander Andrews site near Evander Andrews site to the sites
contained in other bids.
RESPONSE TO REQUEST NO. 73: The Company anticipates operating
the new plant without significant additional labor expenses. Approximately $450 000
per year in labor costs can be avoided if the plant is built at Evander Andrews or
Bennett Mountain rather than a new site. Also, it is estimated that an additional
$150 000 per year in other fixed non-labor operating costs can be avoided by expanding
operations at an existing facility. These estimates were derived from actual Danskin
operating costs for 2004 and 2005.
The response to this request was prepared by Randall R. Henderson
Business Analyst Power Supply Reporting, Idaho Power Company, in consultation with
Barton L. Kline , Senior Attorney, Idaho Power Company.
DATED at Boise , Idaho , this 11 th day of July 2006.
(fi.
MONICA B. MOEN
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF Page 35
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 11 th day of July, 2006, I served a true and
correct copy of the within and foregoing IDAHO POWER COMPANY'S RESPONSE TO
THE FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon the following
named parties by the method indicated below, and addressed to the following:
Commission Staff --.L Hand Delivered
Donovan Walker US. Mail
Deputy Attorney General Overnight Mail
Idaho Public Utilities Commission FAX
472 W. Washington (83702)Email: Donovan.walker(g)puc.idaho.gov
O. Box 83720
Boise, Idaho 83720-0074
Industrial Customers of Idaho Power Hand Delivered
Peter J. Richardson, Esq.US. Mail
Richardson & O'Leary Overnight Mail
515 N. nib Street FAX
O. Box 7218 Email: peter(g)richardsonandoleary.com
Boise, Idaho 83702
Don Reading
Ben Johnson Associates Hand Delivered
6070 Hill Road US. Mail
Boise, Idaho 83702 Overnight Mail
FAX
Email: dreading(g)mindspring.com
Mountain View Power, Inc.Hand Delivered
Ronald L. Williams US. Mail
Williams Bradbury, P.Overnight Mail
O. Box 2128 FAX
Boise, Idaho 83701 Email: ron
(g)
willi amsbradbury.com
Robert D. Looper, President Hand Deli vered
Mountain View Power, Inc.US. Mail
1015 W. Hays Street Overnight Mail
Boise, Idaho 83702 FAX
Email: rlooper(g)spellc.com
c3-
Monica B. Moen
CERTIFICATE OF SERVICE , Page
IDAHO POWER COMPANY
CASE NO. IPC-O6-
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF
RESPONSE TO
REQUEST NO. 45
Response to Request No. 45
The information requested is CONFIDENTIAL and
is not provided to Mountain View Power
IDAHO POWER COMPANY
CASE NO. IPC-O6-
FIRST PRODUCTION REQUEST
OF COMMISSION STAFF
RESPONSE TO
REQUEST NO. 53
(0,
An IDACORP Company
Demand-Side Management
2005 Annual Report
An IDACORP Company
To request additional copies
Please write or call
Bradford Snow
Idaho Power Company
O. Box 70
Boise , 10 83707
[phone]
Printed on recycled paper
Revised April 11 , 2006
Idaho Power Company Demand-Side Management
TABLE OF CONTENTS
Table of Contents......................................................................................................................................... i
List of Tables .............................................................................................................................................. ii
List of Figures..................................................... ........................................................................................ ii
List of Appendices ...................................................................................................................................... ii
Glossary of Terms............................................... ....................................................................................... iii
Executive Summary .....................................................................................................................................
DSM Expenditures and Funding......................................................................................................
Customer Satisfaction ......................................................................................................................
Demand Response Programs .......................................................................................................................
ResidentiaL............................................................................................................................................. 7
AlC Cool Credit...............................................................................................................................
Irrigation ................................................................................................................................................
Irrigation Peak Rewards...................................................................................................................
Energy Efficiency Programs ..................................................................................,...................................
ResidentiaL...........................................................................................................................................
Energy House Calls........................................................................................................................
ENERGY STARQi) Homes Northwest............................................................................................
Oregon Residential Weatherization ..................................................................... ..........................
Rebate Advantage......................................................................................................................... .
Savings with a Twist......................................................................................................................
Weatherization Assistance for Qualified Customers.................................................................... .
Commercial..........................................................................................................................................
Commercial Building Efficiency ...................................................................................................
Oregon Commercial Audit............................................................................................................
Oregon School Efficiency..............................................................................................................
Industrial..............................................................................................................................................
Industrial Efficiency.. .................................................................................................................... .
Irrigation........................................................................................................................................... ...
Irrigation Efficiency Rewards........................................................................................................
Market Transformation................................................................... .............
............................ ................ ..
Northwest Energy Efficiency Alliance ..........................................................................................
Other Programs and Activities...................................................................................................................
Annual Report 2005 Page i
Demand-Side Management Idaho Power Company
Building Operator Training............................................................................................................
Commercial and Residential Education Initiatives........................................................................43
Distribution Efficiency Initiative ...................................................................................................43
Other Conservation and Renewable Discount Expenses...............................................................44
Small Project/Education Fund .......................................................................................................44
Energy Efficiency Advisory Group ...........................................................................................................
EEAG Program Recommendations ...............................................................................................
General EEAG Recommendations ................................................................................................
Table 1.
Table 2.
Table 3.
Table 4.
Table 5.
Table 6.
Table 7.
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Figure 6.
Appendix 1.
Appendix 2.
Appendix 3.
Appendix 4.
LIST OF TABLES
2005 DSM Energy Impact .........................................................................................................
2005 DSM Expenses and Energy Impact..................................................................................
Energy House Calls 2005 Activity and Energy Savings Summary......................................... 14
Rebate Advantage 2005 Activity and Energy Savings Summary ...........................................
Weatherization Assistance 2005 Year-End Expenses........................................................... ..
Weatherization Assistance 2005 Year-End Energy Savings ...................................................
Irrigation Efficiency Menu Incentive Options.........................................................................
LIST OF FIGURES
2005 Program Expense "".""""""""""""""""".""""""""'"...................................................
Customers' Perception of IPC Conservation Efforts............ ...................... ............................ ...
Demand Response 2005 Program Expense........................................................ .......................
Energy Efficiency 2005 Program Expense................ ...................................
..........................
.11
Market Transformation 2005 Program Expense.......... ........
........ ................................. .......... .
Other 2005 Program Expense ..................................................................................................41
LIST OF ApPENDICES
Idaho Rider, Oregon Rider and BP A Account Balances ...................................................
2005 DSM Expenses by Funding Source ..........................................................................
2005 DSM Program Activity.............................................................................................
Financial Factors for DSM-2006 IRP ............................................................................ .
Page ii Annual Report 2005
Idaho Power Company Demand-Side Management
GLOSSARY OF TERMS
AlC-Air Conditioning
Alliance-Northwest Energy Efficiency Alliance
AMR-Advanced Meter Reading
BETC-Business Energy Tax Credit
BP A-Bonneville Power Administration
CAP-Community Action Partnership
C&RD-Conservation and Renewable Discount Program
CFL-Compact Fluorescent Lamp
eRe-Conservation Rate Credit
DSM-Demand-Side Management
EEAG-Energy Efficiency Advisory Group
HV AC-Heating Ventilation and Air Conditioning
HVR-Home Voltage Regulator
IED- Idaho Energy Division
IPC- Idaho Power Company
IPUC-Idaho Public Utilities Commission
IRP-Integrated Resource Plan
kW-Kilowatt
Wh- Kilowatt - hour
LIWA-Low Income Weatherization Assistance
MW -Megawatt
MWa-Megawatt average
MWh- Megawatt - hour
NEEM-Northwest Energy Efficiency Manufactured Homes
O&M-Operations and Maintenance
ODOE-Oregon Department of Energy
OPUC-Oregon Public Utility Commission
PTCS-Performance Tested Comfort Systems
Rider-Energy Efficiency Rider
Volt
Annual Report 2005 Page iii
Demand-Side Management Idaho Power Company
Page iv Annual Report 2005
Idaho Power Company Demand-Side Management
EXECUTIVE SUMMARY
Idaho Power Company (IPe) develops and
implements programs to help manage energy
demand. The two primary objectives of these
Demand-Side Management (DSM) programs
are to:
Acquire cost -effective resources in order
to more efficiently meet the electrical
systems needs, and to
Provide Idaho Power customers with
programs and information to help them
manage their energy and demand use
and lower their bills.
Idaho Power achieves these objectives through
the development and implementation of
programs with specific energy, economic, and
customer objectives. Under the DSM umbrella
these programs fall into four categories:
Demand Response, Energy Efficiency, Market
Transformation, and Other Programs and
Activities.
Idaho Power relies on the input from the Energy
Efficiency Advisory Group (EEAG) to provide
customer and public interest review of DSM
programs. Formed in 2002 and meeting several
times annually, the EEAG currently consists of
12 members representing a cross-section of
customer segments including residential
industrial, commercial, irrigation, elderly,
low-income, and environmental interests as well
as members representing the Public Utility
Commissions of Idaho and Oregon and Idaho
Power. In addition to the EEAG, Idaho Power
solicits further customer input through
stakeholder groups in the industrial, irrigation
and commercial customer segments.
During 2005, the Idaho Public Utilities
Commission (IPUe) approved Idaho Power
request (Case No. IPC-04-29) to increase the
Energy Efficiency Rider (Idaho Rider) from
5% to 1.5% of base rate revenues. This
funding increase became effective on June 1
2005. In July 2005, Idaho Power filed a request
with the Oregon Public Utility Commission
(OPUC) to implement an Energy Efficiency
Rider (Oregon Rider) identical to that approved
in Idaho in the Oregon service area. The OPUC
approved Idaho Power s request in August
2005. Since that time, Idaho Power has received
approval from the OPUC to implement the
Industrial Efficiency, Oregon School Efficiency,
Irrigation Peak Rewards, Irrigation Efficiency
Rewards, and Commercial Building Efficiency
programs in Oregon.
The year 2005 marked the first year of a
renewal agreement to fund the Northwest
Energy Efficiency Alliance (Alliance) for the
next five years (2005-2009). The Alliance
efforts in the Pacific Northwest impact Idaho
Power s customers by providing
behind-the-scenes market changes as well as
structural support to Idaho Power local Market
Transformation programs. Idaho Power
continues to leverage the support provided by
the Alliance in the development and marketing
of local programs, resulting in efficiencies of
program implementation.
In October 2005, Idaho Power began its fifth
year of a five-year agreement with the
Bonneville Power Administration (BP A)
through the Conservation and Renewable
Discount (C&RD) program. Idaho Power
operates several programs with the C&RD
funding including Energy House Calls and
Rebate Advantage. The BP A has introduced a
replacement program called the Conservation
Rate Credit (CRC) program available from
2007 -2009 and Idaho Power will be eligible for
early participation.
Program Performance
In 2005, DSM programs at Idaho Power
continued to grow and to show steady
improvement in customer satisfaction. The six
programs identified for implementation in the
2004 Integrated Resource Plan (IRP) were in
Annual Report 2005 Page 1
Demand-Side Management Idaho Power Company
place and operating by the end of 2005. The two
Demand Response programs, Irrigation Peak
Rewards and A/C Cool Credit, resulted in a
reduction of summer peak demand of over
43 MW. The four Energy Efficiency programs
Industrial Efficiency, Commercial Building
Efficiency, ENERGY STAR(B) Homes
Northwest, and Irrigation Efficiency Rewards
resulted in annual savings of 13 946 MWh.
In addition to the IRP programs, during 2005
Idaho Power operated several other Energy
Efficiency programs targeting residential
customers: Weatherization Assistance for
Qualified Customers (previously known as Low
Income Weatherization Assistance program, or
LIW A), Energy House Calls, Rebate
Advantage, and Oregon Residential
Weatherization. And, in late summer, Idaho
Power decided to join the regional Savings with
a Twist program, sponsored by BP A, to provide
Idaho Power customers with low-priced
compact fluorescent light (CFL) bulbs in local
retail stores. These five residential energy
efficiency programs added savings of 6 756
annual MWh in 2005.
Idaho Power continues to realize significant
Market Transformation benefits through Idaho
Power s partnership with the Alliance, who
estimates 20 054 annual MWh were saved in
Idaho Power s service area in 2005.
Finally, Idaho Power was able to participate in a
few small demonstration projects and education
opportunities with an estimated 512 annual
MWh savings.
Table 1 shows the 2005 annual energy savings
or summer peak reduction associated with each
of the DSM program categories. The energy
impact totals 41 267 MWh of energy savings
and 43 MW of summer peak demand reduction.
Note that, unless otherwise noted, all energy
statistics presented in this report are net of
transmission line losses. Also, free rider impact
has been included when a formal program
evaluation was conducted, or when regional
deemed savings values were used.
Table 1.2005 DSM Energy Impact
MWh Peak MW
Demand Response .......................
Energy Efficiency.......................... 20,702
Market Transformation .................. 20,054
Other Programs and Activities....... 512
Total 2005 41 267
DSM Expenditures
and Funding
Funding for DSM programs comes from the
Idaho Rider, Oregon Rider, BPA C&RD
program, and Idaho Power s base rates. The
total DSM expenses from these sources,
including costs for administration and overhead
were over $6.7 million in 2005.
Table 2 provides a breakout of the 2005
expenses for the major funding and expense
categories.
Table 2.2005 DSM Expenses and Energy Impact
MWh
SavingsExpenses
Idaho Rider Funded .................
Oregon Rider Funded ..............
BPA Funded.............................
Other DSM O&M ......................
Total 2005
$4,533,878
$31,473
$612,486
$1,523,136
$6,700,973
034
008
259
967
267
Another way to view the 2005 DSM program
expenditures is to look at direct program
expenses versus non-direct program
expenditures. Direct program expenses include
customer incentives and direct administration
costs. Non-direct program expenses include
administrative costs not directly attributable to a
program. Figure 1 shows direct program
expenditures by program categories: Demand
Response, Energy Efficiency, Market
Transformation, and Other Programs and
Activities.
Page 2 Annual Report 2005
Idaho Power Company Demand-Side Management
Figure 1. 2005 Program Expense
34.
56.
Demand Response .............................
Energy Efficiency................................
Market Transformation ........................
Other Programs and Activities.............
Total Direct Program Expense
222 344
$3,673,7 44
$476,891
$150,370
$6,523,349
Administration and Overhead.............. $177,624
Total 2005 $6,700,973
Customer Satisfaction
Customer satisfaction is an important element of
the DSM programs at Idaho Power. Customer
input from a variety of sources, including the
company's customer satisfaction surveys , helps
to shape program structure and marketing
strategy. Recent survey results show steady
improvement across years in the percent of
customers whose needs are met with energy
conservation.
Figure 2 shows the bi-quarterly growth in the
number of customers indicating their needs are
met or exceeded regarding Idaho Power
encouraging energy conservation with Idaho
Power customers.
As Figure 2 shows, customers' positive
perception of Idaho Power s conservation
efforts has increased by over 20% since 2003.
Figure 2. Customers' Perception of IPC
Conservation Efforts
50%
40%
30%
20%
10%
2003 2004 2005200520032004
The report s presentation outline is structured
around each of the functional DSM areas
(Demand Response, Energy Efficiency, Market
Transformation, and Other Programs and
Activities). Within each functional area, where
more than one customer segment is served, the
programs are segregated by the customer
segments (residential, commercial, industrial,
and irrigation), respectively.
The program write-ups are presented with an
overview of operations and results, including
highlights for the year, customer participation
and satisfaction, energy/demand impact, and
plans for 2006. Please note that energy and
expense data have been rounded to the nearest
whole unit.
The appendices following the program
discussion provide additional detailed program
activity and performance data.
This DSM Annual Report has been prepared in
response to the IPUe's Order No. 29419 and in
response to the OPUC's Order No. 89-507.
Annual Report 2005 Page 3
Demand-Side Management Idaho Power Company
Page 4 Annual Report 2005
Idaho Power Company
DEMAND
RESPONSE PROGRAMS
DSM Demand Response initiatives are designed
to use control devices to provide a means by
which the operation of a consumer s end-use
equipment may be modified to alter the
maximum demand. The goal of DSM Demand
Response at Idaho Power is to reduce the
summer peak demand periods and thus
minimize the need for providing higher cost
supply-side alternatives such as gas turbine
generation or open market electricity purchases.
The Demand Response programs at Idaho
Power are comprised of AIC Cool Credit and
Irrigation Peak Rewards. These two programs
have their genesis in the 2002 and 2004 IRP
efforts in which future peak summer resource
deficiencies were identified.
In developing effective programs for reducing
peak summer demand, Idaho Power targeted
irrigation customers using high horsepower
pumps and residential customers using central
air conditioning. Both of these customer
segments are characterized by large summer
use, and together represent approximately 60%
of peak summer demand.
The unique aspect of these programs is found in
the ability to ensure load reduction through
time-related mechanical controls.
Demand-Side Management
In the case of irrigation, control is achieved
through the use of programmed timers to switch
irrigation pumps off at predetermined times.
Residential air conditioning units are
dynamically controlled through wireless
communication to specifically addressed air
conditioning compressor switches, capable of
cycling each unit off at the appropriate time.
Both programs have proven successful and are
continuing to evolve and increase the number of
participants. Irrigation Peak Rewards is adding
new customers in Idaho and is looking forward
to its first Oregon customer in 2006. A/C Cool
Credit completed its first full year of a five-year
implementation ramp in 2005.
The following pages provide a detailed
description of the programs' 2005 operations
results, and general plans for 2006.
Figure 3 provides a breakout of 2005 expenses
and the relative ranking for these programs as a
percentage of the total DSM expense.
Figure 3. Demand Response 2005 Program Expense
%of
Demand Response Programs Expense All DSM
AIC Cool Credit ........................... $754,062 11.
Irrigation Peak Rewards.............. $1.468,282 22.
Total $2 222 344 34.
III Demand Response...................... 34.
Energy Efficiency......................... 56.
Market Transformation ................ 7.
Other Programs and Activities..... 2.
Annual Report 2005 Page 5
Demand-Side Management Idaho Power Company
Page 6 Annual Report 2005
Idaho Power Company
DEMAND RESPONSE
AIC Cool Credit
Description
AlC Cool Credit is a voluntary program for
residential customers. The program enables
Idaho Power to directly address summer
peaking requirements by reducing air
conditioning load demand at critical high
demand periods in the summer. Presently, the
program is available only in Idaho.
Control of the air conditioning units is achieved
through the installation of individual
radio-controlled switches on customer
equipment and is cycled on and off using a
predetermined schedule.
After two summers of pilot operations, Idaho
Power completed the first year of full
operational implementation of radio-controlled
switches in 2005 in Ada and Canyon counties in
Idaho. The program will be fully implemented
in 2009. The year 2005 also marked the
inception of a pilot program using power line
carrier communications for direct load control
participants in the Emmett Valley (Emmett)
region of Idaho.
Demand-Side Management
Results
2005 Highlights
Implementation of the program name
change from "AlC Cool Comfort" to
AlC Cool Credit" in order to emphasize
the incentive attribute of the program.
Developed new partnerships with
subcontractors to accommodate program
growth and to improve productivity.
Integrated the program into existing
customer billing and service systems and
departments by making modifications to
the Idaho Power Customer Information
System, Advanced Meter Reading
(AMR) system, and the corporate data
warehouse. Software was modified and
processes developed to enable timely,
secure, and regular data transfer between
these systems and the central program
database maintained by the company
equipment installation vendor
Honeywell Utility Solutions.
Customer service was also fully
integrated with Honeywell's telephone
desk; customer service representatives
from both Idaho Power and Honeywell
Utility Solutions were trained to be
knowledgeable regarding program
details, direct phone transfer capability,
and notification of all cycling events.
Twenty load control events were
initiated between June 15 and
August 19, 2005.
Participation
Overall marketing results were above typical
response rates for this type of program. The
response rate in the Treasure Valley was 7.8%,
which was similar to results obtained in the
2004 pilot program. The response rate for
Emmett was somewhat lower at 5.0%.
Annual Report 2005 Page 7
Demand~Side Management Idaho Power Company
Total installations as of August 25, 2005 were
369. Of this total, 170 installations were for
customers in Emmett utilizing the AMR system.
Demand Impact
The demand effects of this program have been
relatively stable over the past two years. On
average , Idaho Power can expect 1.16 kW
demand reduction per participating household
per hour over the course of a cycling event.
Aside from significant per-unit peak impact, the
energy impact of cycling is relatively small.
Analysis shows that kWh decreases, on average
by 1.97 kWh per participant, due to cycling.
Thus, cycling appears to shift some usage from
cycling hours to non-cycling hours as expected.
The net effect on kWh clearly depends upon the
cycling percentage and the outside temperature
during the control event.
An issue of note occurred in November 2005
when it was discovered that the switch for
cycling the air conditioning units had been
installed using the low-voltage rather than the
high-voltage connection to the switches
originally planned for; however, the change was
not conveyed to the operations and monitoring
team. Thus, during operation , the system
heartbeat" signal from the cycling apparatus
was falsely indicating to the Idaho Power
operations team that the system was operational.
The result of this issue was that all customer
units using the AMR equipment were not cycled
during the 2005 cooling season. Upon
discovery, of the wiring method, Idaho Power
re-programmed the system software to
recognize the low-voltage side and make the
units operational.
Customer Satisfaction
Installations began in May, coinciding with the
onset of direct mail campaigns. Rates were
approximately 5%. A follow-up reminder was
sent to about half of the previously targeted
group. This second solicitation generated a very
large response that boosted overall rates to 9%
by late June.
By July 20 it was apparent that a large backlog
of installations remained. On July 22 , a letter
was sent to all customers waiting for installation
explaining the backlog and confirming
installation within the month of August.
In order to better manage the high response
rates, Idaho Power has developed an enhanced
Customer Service Plan to aid in ensuring that
customer expectations and the processes for
servicing the customer are in place. The Plan
focuses on communication and it includes 24
hour access for customers.
Plan for 2006
The AlC Cool Credit program matured
significantly in 2005, as many manual processes
were automated, marketing messages were
refined, and error checking was strengthened.
As a result, installation plans for 2006 are being
revised to accelerate the previously planned
target of 2 000 additional installations. The new
target range is 5 000-000 additional
installations.
Obtaining adequate control equipment,
implementing timely marketing campaigns, and
refining installation and customer care
procedures are critical yet attainable tasks that
Idaho Power is committed to in meeting the
demand reduction goals of this program.
Page 8 Annual Report 2005
Idaho Power Company
DEMAND RESPONSE
Irrigation Peak Rewards
Description
The Irrigation Peak Rewards program was
developed as a pilot program in the summer of
2004 and expanded to a system-wide program in
late 2005. The program was developed after
selection through the 2004 IRP process.
The voluntary program targets irrigation
customers with pumps of 100 horsepower or
greater with an objective of reducing peak
electrical load during summer weekday
afternoons by providing control over load
demand.
The program utilizes electronic time-activated
switches to turn off pumps of participating
irrigation customers during predetermined
intervals.
Voluntary participants select one of three
different interruption options for the months of
June, July, and August. A demand credit
incentive from Idaho Power is associated with
each of the options. Electronic timers are
programmed to turn off irrigation pumps during
predetermined time periods associated with the
chosen option. The following demand credit
Demand-Side Management
options and associated demand credit incentives
were available to customers for 2005:
One weekday per week, 4 p.8 p.
$2.01 per kW demand.
. Two weekdays per week, 4 p.8 p.
$2.52 per kW demand.
Three weekdays per week, 4 p.8 p.
$2.76 per kW demand.
The incentive amount credited to customers is
calculated for each metered service point and
the credit applied to monthly billing.
Results
2005 Highlights
Successful region-wide implementation
occurred following the pilot program.
Approval for operation in Oregon in fall
2005.
Peak energy savings amounted to
323 kW.
Final report "Irrigation Peak
Rewards submitted to IPUC
December 1 , 2005.
High satisfaction ratings: the majority of
customers enrolled in the 2005 program
indicated that they were satisfied and
would re-enroll in the program in the
future.
Implementation of the program name
change from "Irrigation Peak Clipping
to "Irrigation Peak Rewards" to better
reflect the incentive attributes to the
target market.
Annual Report 2005 Page 9
Demand-Side Management
Participation
The year 2005 was the first full year of the
program after a successful one-year pilot in
2004. Participation rates from a service point
perspective (a customer may have more than
one metered service point) show the program
achieved 23.4% participation (894 service
points out of 3,820 eligible service points).
From a customer perspective, 254 customers, or
22.8% of the 1 112 eligible customers, chose to
participate.
For 2005, all of the present service points were
in Idaho.
Demand Impact
In 2005, the program produced substantial and
measurable impacts on peak demand. Over the
course of the summer, the program produced an
average load reduction of 23.8 MW with an
average of 26.9 MW load reduction in the
month of July. The maximum load reduction
occurred during the second half of June when an
estimated 40.3 MW reduction was achieved
representing 134% of the IRP goal of 30 MW of
peak savings.
Customer Satisfaction
A customer satisfaction survey was
administered in the fall of 2005. Respondents
represented 58% of the participating customers.
Idaho Power Company
This survey showed that 89% of respondents
were satisfied with the program. Ninety-six
percent (96%) stated that they probably would
or definitely would participate in the program
again. Moreover, 88% indicated that they would
be very likely or somewhat likely to recommend
the program to another irrigation customer.
Seventy-six percent (76%) indicated that the
incentive was what initially persuaded them to
participate in the program.
Plan for 2006
The growth goals of the program for 2006 are:
Enroll 1 000 eligible metered service
points in Idaho and Oregon.
Achieve an average of 30 MW load
reduction for the month of July.
Continue program evaluation and
refinement through customers, the
EEAG, other groups, and individuals.
Idaho Power strives to improve customer
satisfaction and evaluate the program for
effectiveness and look for areas of improvement
for Idaho Power s irrigation customers.
Page 10 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY
EFFICIENCY PROGRAMS
DSM Energy Efficiency initiatives are
applicable to all of Idaho Power customer
segments including residential, irrigation
commercial, and industrial. Program funding is
provided by Idaho and Oregon Riders as well as
the BP A and through Idaho Power O&M funds.
A common theme of Energy Efficiency
programs is their focus on identifying
significant segments within the customer base
where prevalent energy practices can be
modified to deliver desired energy savings.
Opportunity areas span a wide range including
the application of new technologies in all
customer segments in heating, cooling, and
lighting; in the design of new processes and
procedures to reduce energy consumption for
various tasks and industries; and improved
methods for the way new and existing homes
and commercial buildings are designed for
energy use.
Five programs were added or substantially
redesigned for 2005. The following pages
provide descriptions for each of the programs in
the Energy Efficiency sector. Each program
write-up provides program descriptions,
highlights, and accomplishments for the year.
Plans for responding to the challenges and
opportunities identified in 2005 are presented as
well.
Figure 4 provides a breakout of 2005 expenses
and the relative ranking for these programs as a
percent of the total DSM expense. The figure
shows that the Energy Efficiency programs
received over 50% of the resources within the
2005 DSM portfolio.
Figure 4. Energy Efficiency 2005 Program Expense
Energy Efficiency Programs
Energy House C"alls.............................
ENERGY STAR Homes Northwest....
Oregon Residential Weatherization .....
Rebate Advantage...............................
Savings with a Twist ............................
Weatherization Assistance ..................
Commercial Building Efficiency...........
Oregon Commercial Audit ...................
Oregon School Efficiency....................
Industrial Efficiency..............................
Irrigation Efficiency Rewards ...............
Total
%of
Expense All DSM
$375,610 5.
$253 105 3.$612 0.
$46,173 0.
$73,152 1.
$1,446,835 22.
$194 066 3.$5,450 0.$86 0.
$1,128,076 17.
$150,577 2.
673,744 56.
1"11 Demand Response...................... 34.
Energy Efficiency......................... 56.
1"11 Market Transformation ................ 7.
Other Programs and Activities ..... 2.
Annual Report 2005 Page 11
Demand-Side Management Idaho Power Company
Page 12 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Energy House Calls
Summary 2005
Description
Idaho Power launched a pilot program in
October 2002 to evaluate the viability of
providing duct sealing and additional efficiency
measures to Idaho Power customers living in
manufactured homes. Upon successful
completion of the pilot program, Idaho Power
rolled the program out to the entire service area
in 2003. At that time the program was renamed
Energy House Calls for Manufactured Homes
(formerly known as Manufactured Home
Energy Checkups). The program is funded by
the BP A through its C&RD funding program.
BP A funds cover the participant costs and
include the following services and products:
Duct testing and sealing according to
Performance Tested Comfort System
(PTCS) specifications endorsed by the
BPA
Three compact fluorescent light bulbs
. Two furnace filters along with
replacement instructions
Hot water heater temperature test for
proper setting
Energy efficiency educational materials
for manufactured home occupants
The program is managed under contract by Ecos
Consulting in partnership with Delta- T Inc.
both of whom have experience in managing and
providing duct sealing service programs. Ecos
and Delta- T coordinate local weatherization and
energy efficiency service providers to market
and perform the services. Quality assurance is
provided by third-party audits in compliance
with the BPA's C&RD guidelines.
Results
2005 Highlights
The year 2005 was the third full year of
operation for this program. The program
garnered energy savings throughout the year and
earned the company credits in the BPA's C&RD
program through September 2005, at which time
Idaho Power completed its obligations to the
BP A under the terms of the funding agreement.
Subsequently, for the last three months of the
year, Idaho Power continued to fund the
program in order to ensure continuity prior to
the transition from the C&RD program to
BPA's new funding program (CRC) beginning
in 2006.
Participation
Participation in this program was lower in 2005
than in the prior year. This was due primarily to
a focused effort toward recruiting rural
customers and those who live in colder climates.
This focus represented a departure from the
initial program target segment of Idaho Power
customers concentrated in communities of
manufactured homes. The shift in focus to
decentralized rural manufactured housing units
required increased marketing effort and travel
time per housing unit.
Annual Report 2005 Page 13
Demand-Side Management Idaho Power Company
Energy Impact
The primary source of savings from the program
came from increasing the efficiency of the
heating system through improving heated air
delivery from the furnace through the duct
system. Improved delivery through the duct
system also provides energy savings associated
with cooled air where applicable.
The installation of three CFL units into high
lighting use areas provides additional energy
savings.
The furnace filter and water temperature
evaluation services provided by the program are
designed to educate the occupants on
maintaining energy efficient practices in the
future. The energy impact of these measures are
not quantified nor included in the total energy
impact of the program. Table 3 summarizes
2005 program service activity for Idaho and
Oregon customers.
Table 3.Energy House Calis 2005 Activity and
Energy Savings Summary
Idaho Oregon Total
Activity
Test Only......................
Test and Seal...............836 851
Total Duct Measures 874 891
CFL Bulbs.....................595 646
Furnace Filters..............627 653
Water Temperature
(Average)......................119 111 230
Total Other Measures 341 188 529
Energy Savings kWh........ 1,749,792 25,978 1,775,770
Customer Satisfaction
During the program s pilot and early years
customer surveys provided feedback useful to
program implementation. As the program has
matured, customer surveys indicated
consistently high satisfaction. Idaho Power
receives many unsolicited responses from
customers praising the services and thanking
Idaho Power for the positive results of the
program. Thus, for 2005, direct customer
surveys were not undertaken.
Plan for 2006
Beginning in February 2006, program funding
will come from the BP A's CRC program. The
CRC guidelines dictate a focus on homes with
higher potential BP A credits. Available housing
units with such credits are concentrated in Twin
Falls, Pocatello , and mountain communities in
Idaho and Oregon.
The Energy House Calls program will retain its
current management and operations model
within the BP A funding guidelines.
Page 14 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
ENERGY STAR(8)
Homes Northwest
Program Overview
, '
" '0
Gustgf11~r"Segr:n$llt":. 'Resi
Tatget ClJstomes , Reside
Program
, ,j;:.
;.. March
Prograrn fv1a(1ager ..: Celeste
Summary 2005
Description
The ENERGY STAR(B) Homes Northwest
Program is a regionally coordinated initiative
supported in partnership between the Idaho
Power, the Alliance, and the Idaho Energy
Division in support of improved construction
practices of single-family homes. The energy
goal of the program is to provide homes that are
30% more energy efficient than those built to
standard Idaho residential code.
Idaho Power s energy focus for the program is
to reduce future peak summer demand by
increasing the efficiency of residential building
envelope construction practices and increasing
efficiency of summer air conditioning use.
The primary market activities and incentives
that Idaho Power provides through the program
are the following:
Consumer marketing communications
conveying the benefits of ENERGY
ST AR(B) homes
A $750 incentive per qualifying home to
participating builders
Program management services to
coordinate the local partnerships
between Idaho Power, builders, and real
estate service providers
Results
2005 Highlights
Increase of 450% over 2004 in the
number of certified homes (from 44 to
203)
Increased builder participation from 32
to 63, including two high-volume
builders (60 to 125 homes per year)
Implemented quarterly realtor training
sessions
Conducted builder breakfast events in
Twin Falls and Pocatello
Sponsored 11 Parade homes in Ada
Canyon, and Bannock counties
Completion of a marketing
communication program that included
bill stuffers, print ads in real estate
tabloids , public relations events, and a
new Internet marketing campaign using
Google keyword advertising
Updated home inspection forms to
ensure energy savings verification
Participation
While builder participation rates were on target
the number of completed housing units fell short
of the 2005 goal of 465 homes. However, the
number of homes under construction at the end
of the year exceeded 200, boding well for 2006.
For 2005, over 95% of the ENERGY ST AR(B)
Annual Report 2005 Page 15
Demand-Side Management
homes completed were built in the Treasure
Valley area. The program s market share in
2005 was approximately 2% of the total 10 500
homes built that year. A long-term goal of 20%
ENERGY STAR(B) homes of all new homes built
in the area has been established.
Energy Impact
While there is considerable variation in each
home due primarily to interior square footage,
the average energy savings from an ENERGY
ST AR(B) home with central air conditioning in
the Treasure Valley provides 2 078 kWh
savings and 2 kW demand savings.
Customer Satisfaction
To date, no comprehensive customer
satisfaction evaluations have been undertaken
for this program by Idaho Power. However
unsolicited customer feedback has been
overwhelmingly positive as homeowners
compare the comfort, quality, and energy bills
from their homes with their neighbors
' .
Plan for 2006
The year 2006 will focus on improving builder
productivity in ENERGY ST AR(B) techniques
and improving timeliness in quality assurance
inspections for home certification.
Builder training efforts include increasing the
number of classes and targeting high-volume
builders to integrate and standardize their
techniques with this program.
Idaho Power is working with the Idaho Energy
Division to identify constraints and implement
process improvements to decrease the time
between builder completion, inspection, and
certification.
Idaho Power Company
Idaho Power has set a goal of 629 certified
homes for 2006. Overall, Idaho Power expects
that the original targets for the program are
achievable.
The real estate market continues to maintain the
construction pace of 2005, and dozens of new
subdivisions are planned for 2006 in the
Treasure Valley. Localjurisdictions and utility
companies are challenged to provide critical
development services allowing these projects to
move forward. In addition to these challenges
inclement winter weather has resulted in delays
in original subdivision completion timelines.
Therefore , in order to meet the aggressive goal
for 2006 , Idaho Power is undertaking the
following activities:
Coordinate large consumer marketing
campaigns with the Alliance.
Increase the number of realtor training
sessions from two in 2005 to seven in
2006.
Sponsor more builder and subcontractor
training sessions as they develop.
Increase market reach and effectiveness
by working with the Alliance to target
builders who are " champions " of the
benefits of ENERGY ST AR(B) building
techniques.
Develop a comprehensive strategy for
signing an agreement with Treasure
Valley's largest homebuilder to become
an ENERGY ST AR(B) builder.
Expand into the Oregon service area.
Page 16 Annual Report 2005
Idaho Power Company
ENERGY EFFICIENCY
Oregon Residential
Weatherization
Summary 2005
Description
As required by Oregon statutes, Idaho Power
offers free energy audits for electrically heated
homes of customers within the Oregon service
area. Upon request an Idaho Power
representative visits the home to analyze it for
energy efficiency and an estimate of cost and
savings for specific measures is given to the
customer. Idaho Power offers financial
assistance for a portion of the cost of
weatherization measures either as a cash
incentive or with a low-interest loan.
Results
2005 Highlights
Seventeen home energy audits for
Oregon customers were completed in
2005.
Demand-Side Management
Six payments totaling $612.02 were
granted for the year.
Total kWh savings of7,927.
Participation
Four customers participated in six
weatherization projects, including one triplex.
Energy Impact
Ceiling Insulation......
Doors .......................
Windows .........."......
Total
kWh
Savings
950
149
828
927
Customer Satisfaction
The Oregon Residential Weatherization
program has been in operation for many years.
Anecdotally, customer satisfaction remains high
due to consistent local presence in the area.
Plan for 2006
Continue this program for 2006.
Evaluate potential for integrating
program into design of expanded
residential efficiency program.
Annual Report 2005 Page 17
Demand-Side Management Idaho Power Company
Page 18 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Rebate Advantage
Summary 2005
Description
In 2003, Idaho Power launched a program to
encourage manufactured home buyers to
purchase energy-efficient Super Good Cents or
ENERGY ST ARCID homes. The program
formerly called Energy Efficient Manufactured
Home Incentives, was renamed Rebate
Advantage at the start of 2004.
The goal of the program is to help buyers
purchase energy efficient manufactured homes
through incentives and by encouraging
salespeople to promote the benefits of energy
efficiency.
Customers who purchase a Super Good
Cents/ENERGY ST ARCID home and site it in
Idaho Power s service area are eligible for a
$300 rebate. In addition, the salesperson
receives a $75 incentive for each qualified home
sold. The program is funded through BPA'
C&RD funds.
Quality control and energy efficiency
specifications for establishing qualified homes
are established by the Northwest Energy
Efficiency Manufactured Homes (NEEM)
program. NEEM is a consortium of
manufacturers and state energy offices in the
Northwest. In addition to specifications and
quality control, NEEM tracks the production
and on-site performance of Super Good Cents or
ENERGY ST ARCID homes.
Results
2005 Highlights
Program funding from BP A generated BP
credits through September 2005. In order to
maintain continuity and stability in the offering
to the marketplace, Idaho Power provided
support for the program until the BPA's new
funding program (CRe) was available.
Participation
Participation in the program was fairly steady
throughout the year and similar in volume to
past years. Participants typically are from small
rural towns in Idaho Power s service area. The
geographic reach of this program is noteworthy
as seen in Table 4 in which Oregon homes
represent over 10% of the total homes rebated.
Approximately one-third of all manufactured
home dealers with sales in Idaho Power
service area are participating in this program.
Table 4.Rebate Advantage 2005 Activity and
Energy Savings Summary
Idaho Oregon Total
Activity
Homes...........................
Towns with
Homes Sited ..............
Counties with
Homes Sited ..............
Salespeople(l) ...............
Dealers(l)
.......................
Manufacturers(l) ............
Energy Savings kWh......... 279,971 32,340 312,311
(1) Some sales groups sell in both Idaho and Oregon.
Totals reflect unique instances only.
Annual Report 2005 Page 19
Demand-Side Management
Energy Impact
Savings in this program are largely due to
improvements in the shell of the home, resulting
in more efficient use of heating and cooling
energy use. Manufacturers have some flexibility
in how they achieve a more efficient shell
however a common attribute of all homes in the
program is a sealed duct delivery system.
Energy savings for the year are estimated to be
312 311 kWh.
While the program focus is on overall energy
efficiency, peak impacts from reduced air
conditioning can be attributed to the program.
Customer Satisfaction
In discussions with salespeople, it is clear that
they appreciate having this tool to work with
customers to buy the energy efficient package
for their new home. Anecdotally, customer input
indicates an appreciation of the incentive and
benefits of energy efficient manufactured
homes.
Idaho Power Company
Plan for 2006
In 2006 , ENERGY ST ARC& qualified
manufactured homes will be eligible to receive a
tax credit under the 2005 Federal Energy Policy
Act. Discussions are under way with regional
partners to evaluate approaches to leverage this
credit to the benefit of the program.
Operationally, the program will continue
similarly to 2005. It will be funded, as of
February 2006, by the BPA's CRC program.
Marketing plans include a spring campaign to
increase customer and sales staff awareness and
understanding of the features of an energy
efficient home.
Page 20 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Savings with a Twist
Overview
Description
Idaho Power joined the Northwest ENERGY
ST ARQ\) Consumer Products program in a
region-wide compact fluorescent light (CFL)
bulb promotion. The Savings with a Twist
program was designed to highlight attractive
promotional pricing and to focus consumer
attention toward action to change out
incandescent bulbs with energy efficient CFL
units.
The primary target market of the program is the
residential customer base. The primary goals of
the program were the following:
Build continued awareness of the
efficiency and benefits of CFL lighting.
Highlight recent improvements in
lighting technology and quality.
Continue to build market penetration.
Capture incremental energy savings in
residential lighting use.
The regional span of the program provided
additional efficiency and effectiveness through
coordinated advertising and retailer planning.
Marketing included regional advertising and
retailer communication including newspapers
mailings, and in-store point of sale collateral.
Retailer participation included both large and
small companies in hardware, drug, grocery,
and discount store channels throughout the
Idaho Power service area.
Idaho Power s participation included funding of
$1.25 per-bulb sold (up to 108 193 bulbs).
These funds covered a buy-down paid to
manufacturers and program administrative
costs. The buy-down reduced in-store prices to
as low as $0.99 per bulb.
The program was sponsored jointly by the
Alliance, the BP A, and local utilities.
Administration of the program, including
auditing sales records is being provided by
Portland Energy Conservation, Inc. (PECI) on
behalf of all of the regionally participating
utilities.
Results
2005 Highlights
Results from consumer participation are very
promising and indicate that continued
promotional efforts are effective in driving
changes in residential lighting applications.
The promotion was originally planned to end in
December 2005; however, due to product
availability constraints from manufacturers, the
program extended into the first quarter of 2006.
The supply shortfalls inhibited restocking and
created marketing problems for the program.
Due to the extended implementation , complete
results of the program will not be available until
Annual Report 2005 Page 21
Demand-Side Management Idaho Power Company
summer of 2006. As of the close of 2005, Idaho
Power verified the sale of, and paid the subsidy
, 35,008 CFL units.
Participation
Participating manufacturers included Greenlite
General Electric, Feit Electric, TCP, and
Sylvania.
Participating retailers included Home Depot,
Fred Meyer, Albertsons , K-Mart, Lowe
Costco, True Value, Grover , and M.H. King.
While not part of the primary target audience for
this program, small commercial customers were
likely participants in the program as the retailers
serve this customer segment.
Bulbs promoted by the Savings with a Twist
program were available to Idaho Power
customers in Idaho through participating
retailers. A limited number of bulbs outside
Idaho Power s service area were included in the
program to capture customers who shopped
outside of the Idaho Power service area.
Program totals are adjusted for bulbs sold to
out -of-service participants.
Energy Impact
The energy impact of the program is derived
through guidance from Northwest Power and
Conservation Council. The guidance calls for
derivation of savings based upon the difference
between incandescent bulbs and CFL bulb
replacement and adjusted for variable impacts
due to regional differences including heating
impact, market saturation rates, and lighting
usage profiles. Idaho Power will continue to
monitor these variables.
For the 2005 program, Idaho Power has
determined that the energy savings factor is
39.6 kWh per bulb.
Customer Satisfaction
Surveys of retailers indicate that the Savings
with a Twist promotion delivered unanticipated
rates of consumer purchases. Many retailers
reported selling out of bulbs within hours of
stocking displays. Other stores successfully
reordered the product and sold more bulbs than
originally anticipated.
Plan for 2006
The BP A is presently evaluating the 2005
program. Initial indications of the regional
impact are promising and expectations are that
the BP A will sponsor another CFL promotional
event in the fall of 2006. Idaho Power will
re-evaluate the program design prior to
committing to participation in 2006.
Page 22 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Weatherization Assistance
for Qualified Customers
Description
The Weatherization Assistance for Qualified
Customers (WAQC) previously referred to as
the Low Income Weatherization Assistance
(LIW A) program provides funding for the
installation of cost -effective weatherization
measures in qualified owner occupied and rental
homes that are electrically heated. These
enhancements enable low-income families to
maintain a comfortable home environment
while helping save energy and money otherwise
spent on heating and cooling.
The program is modeled after U.S. Department
of Energy programs. In Idaho, the programs are
managed through Health and Welfare offices
and in Oregon by Housing and Community
Services.
Idaho Power administers the W AQC program
by allocating funds based on U.S. Census data
of household income and by qualified customer
distribution in the Idaho Power service area.
The funds are distributed to local Community
Action Partnership (CAP) agencies located in
Idaho Power s service area. The CAP agencies
coordinate the specific tasks through trained
weatherization crews and contractors.
Results
2005 Highlights
Idaho Power funded a varying
percentage of the 593 home
weatherization projects for electrically
heated homes for qualified customers in
Idaho and Oregon.
Five non-profit agency projects
representing clientele with special needs
received weatherization improvements
funded 100% by Idaho Power.
Participation
Eight CAP agencies participated in the program
in 2005. Five of the eight are located in Idaho
and three in Oregon. Two of the Oregon
agencies were new to the program in 2005.
Their participation improved access to the
program by small Oregon communities within
the service area.
Energy Impact
On average, each customer served by the
program is estimated to save over 5 500 kWh
annually.
Weatherization improvements are designed to
impact both energy and living quality by:
Reducing energy costs for qualified
customers by increasing the efficiency of
their homes.
Making services available at no cost to
qualifying applicants who rent or own
their homes.
Improving indoor environmental and
livability quality through improvements
Annual Report 2005 Page 23
Demand-Side Management Idaho Power Company
such as insulation augmentation
improving weather striping, and sealing
air leaks to make a home, apartment, or
manufactured home more comfortable.
Customer Satisfaction
Consumers are educated on weatherization and
energy saving practices in conjunction with a
weatherization audit. An energy calculator and
energy saving tips sheet is provided along with a
satisfaction survey at the completion of each
project. The surveys are returned to the
originating CAP agency.
In 2005, 97% of all weatherization assistance
customers reported that their homes were more
comfortable due to the program.
2005 Summary
Table 5 shows the expenses for the program by
CAP agency and non-profit organizations for
Idaho and Oregon.
Table 6 shows the annual energy savings from
the efforts of the program in 2005 totaling
273 590 kWh.
Plan for 2006
Idaho Power intends to maintain the pace of
implementation for this program. The 2006
goals include:
Weatherization projects for 584 homes
Weatherization projects for six
non-profit agencies
Energy savings of 3 317 000 kWh
Table 5.Weatherization Assistance 2005
Year-End Expenses
2005
Projects Expenses
108 $237,578
287 $701 048
$12,788
103 $175,501
$116,087
565 $1,243,001
$35,260
$1,290
266
$38,816
593 $1,281 817
$54 382
$54,382
598 336 199
$110,636
$1,446,835Total Program Expense...
Table 6.Weatherization Assistance 2005
Year-End Energy Savings
kWh Savings for 2005
CAP Agencies
CCOA....................................
EI-AOA..................................
EISSA....................................
SCCAP..................................
SEICAA.................................
ID Total..............................
MCOA-OR.............................
HCSCS-OR...........................
CCNO-OR.............................
OR Total.............................
Total CAP Agencies
.....
Non-Profit Projects
Non-Profits ID........................
Non-Profits OR......................
Total Non-Profit
............
Total kWh Savings ...........
819,212
580,650
33,214
317,165
267 579
017 820
302
304
673
279
112,099
161.491
161,491
273 590
Page 24 Annual Report 2005
IPC Payments
CAP Agencies
CCOA ................................
EI-ADA...............................
EISSA................................
SCCAP ..............................
SEICAA..............................
10 Total...........................
MCOA-OR..........................
HCSCS-OR........................
CCNO-OR..........................
OR Total.........................
Total CAP Agencies..............
Non-Profit Projects
Non-Profits 10 ....................
Non-Profits OR...................
Total Non-Profit.....................
TotaliPC Payments .........
IPC Administration..................
Idaho Power Company
ENERGY EFFICIENCY
Commercial
Building Efficiency
Summary 2005
Description
The Commercial Building Efficiency program
targets those commercial customers involved in
significant construction projects to which
energy efficient technologies and methods can
be applied.
The program was designed in late 2004 and was
launched in the spring of 2005.
Operationally, the program focuses on offering
a "menu" of interior lighting and cooling
efficiency options and associated incentives.
The incentive structure includes bonuses for
commissioning the project to ensure that the
systems perform as designed.
A "Custom Projects" option is also available for
efficiency projects targeted at building system
components such as refrigeration systems.
Program marketing plans are executed through
enlisting architects, engineers, and other local
design professionals to include program benefits
into the designs for Idaho Power s targeted
Demand-Side Management
commercial customers. Marketing
communication programs also reach out to
building developers, building officials , and
Idaho Power field staff.
Through this program, Idaho Power is a primary
sponsor of the Boise Integrated Design Lab
which provides technical assistance to local
architects and designers.
Results
2005 Highlights
New program design unveiled in
mid-April 2005 to large audiences of
customers and stakeholders. Media
coverage included prominent articles in
the Idaho Statesman the Idaho Business
Review and various industry-focused
newsletters.
Implemented a strategic advertising
campaign with full page ads in the Idaho
Business Review, and the Building
Owners and Managers Association
(BOMA)-Boise newsletter.
Conducted a wide reaching
communications program including
presentations to:
BOMA
Rotary Club
American Society of Heating,
Refrigerating and Air-Conditioning
Engineers (ASHRAE) Conference
International Society of Healthcare
Engineering conference
Created a monthly electronic update for
local designers, developers, building
Annual Report 2005 Page 25
Demand-Side Management Idaho Power Company
officials, and key customers to keep
them informed about program offerings.
Coordinated efforts with the Alliance
BetterBricks initiative: sponsoring their
2005 Idaho awards, participating in their
training sessions, and working with their
Integrated Design Lab in Boise.
Developed program to encourage timely
filing applications by offering a year -end
bonus (Green Building Wall Calendar)
for all applications received by
December 15, 2005.
Exceeded program goals of 100 kW
peak demand reduction and
389 000 kWh/yr energy savings.
Expansion of program offering into
Oregon.
Participation
The 12 projects completed for the year involved
fewer customers than initially anticipated.
However, the projects completed were of a
much larger scope than expected.
Energy Impact
In its initial year, the Commercial Building
Efficiency program exceeded its goals for both
energy savings (kWh/yr) and demand reduction
(kW). Both were achieved with much lower
incentive payouts than expected enhancing the
program s cost effectiveness.
Customer Satisfaction
Post -participation satisfaction surveys show
fully 83% of participants strongly agreed that
they received" excellent service and value from
Idaho Power.
One participant added a survey comment that
said
, "
Very helpful. Wonderful program.
Plan for 2006
With the approved expansion of the Commercial
Building Efficiency program into Idaho Power
service area in Oregon, plans include an
expanded marketing effort to increase
awareness.
The "Custom Projects" option will be expanded
beyond its pilot offering of 2005 to expand the
target market.
The current program is scheduled to run through
2006. Prior to the end of the year Idaho Power
will conduct evaluation reviews including input
from representative stakeholders and integrate
modifications and improvements into the
program offering for 2007.
Page 26 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Oregon Commercial Audit
Summary 2005
Description
The Oregon Commercial Audit program is a
statutory program available to all Oregon
commercial customers offering a free energy
audit for their commercial buildings.
The purpose of the program is to identify
opportunities for commercial building owners to
achieve energy savings. The program offering
includes evaluation (energy audit) and
educational services.
The primary vehicle for communicating the
program benefits and offer to the target market
is through an annual mailing to each customer.
New to the communication for 2005 was an
offer for the customer to receive Idaho Power
publication Saving Energy Dollars which
provides valuable information regarding typical
improvement areas and projects for saving
energy use and reducing expenses.
Program funding is through the Oregon Rider.
Results
A successful mailing resulted in 36 return
inquiries for audits and 27 requests for Saving
Energy Dollars booklets.
Energy Impact
As an education-only program, the audit does
not develop measurable energy savings since
there is no requirement for the participant to
implement projects identified by the audit.
Customer Satisfaction
Idaho Power continues to look for new ways to
increase the reach of this program. Due to the
relatively low response rates for the audit
feature, Idaho Power believes that the response
to the booklet offering by 27 customers was a
positive indicator in further satisfying the
program needs of this customer base.
Plan for 2006
Idaho Power is evaluating the potential for
synergy between the Oregon Commercial Audit
Program offerings and the recently approved
2006 expansion of the Commercial Building
Efficiency Program into Oregon. Options
include adding Building Efficiency Program
information into the annual Commercial Audit
mailing.
Annual Report 2005 Page 27
Demand-Side Management Idaho Power Company
Page 28 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Oregon School Efficiency
Summary 2005
Description
The Oregon School Efficiency program is a new
initiative designed to operate in close
conjunction with the Oregon Department of
Energy (ODOE) in energy efficiency upgrades
for Oregon public schools.
Idaho Power s participation in the program
provides an effective and efficient vehicle to
augment the school building energy
improvement projects by offering an incentive
and a potential tax benefit.
By virtue of the ODOE' s prior development of
an energy efficiency program targeted at
schools, program infrastructure for marketing
and operations are in place. Idaho Power
partnership in the program provides a low-cost
augmentation to the customer benefits available
through the program.
The program reflects Idaho Power s first
commercial retrofit for energy savings since the
early 1990s.
Idaho Power s participation in the program
includes:
Evaluation of proposals and project
plans (previously developed by
prospective participants and
pre-screened by the ODOE) for
cost/benefit viability
Approval of incentive payment to
schools of $0.10 per kWh saved by the
completed project
. On a trial basis, approval of additional
incentive benefits in the form of passing
through to the school Business Energy
Tax Credits (BETC) generated by Idaho
Power through this program
It should be noted that Idaho Power is
evaluating the viability of continuing the BETC
pass though for this program.
Results
2005 Highlights
. OPUC approval of the School Efficiency
program (Schedule 88) on August 31
2005.
Idaho Power/ODOE joint presentation to
the school Superintendents at the
Malheur County Education Service
October monthly meeting.
Direct mail announcement describing
Idaho Power s participation and the
program benefits and procedures to the
14 public K -12 school district
superintendents in October 2005.
Completion of energy measures by the
first school in late 2005. (Incentive
payment and energy savings will be
realized in 2006.
Annual Report 2005 Page 29
Demand-Side Management Idaho Power Company
Participation
Idaho Power s target for this program is the 14
public school districts ' 60 buildings located in
Idaho Power s Oregon service area.
Plan for 2006
Payment to the school of the first
completed project will be promoted
through the local media (February 2006).
Participation is expected to be high based on
high initial interest and the prospects for high
energy efficiency returns and lower operating
budgets.
. A second School Efficiency project was
completed in early 2006 and four others
are in active development.
Energy Impact
Although several projects are in process , none
were finalized in 2005. Associated energy
savings will be recognized upon incentive
payment in 2006.
Idaho Power is planning to use its
experience with this program to help
formulate future commercial incentive
programs for existing building retrofits.
Customer Satisfaction
Idaho Power will evaluate customer satisfaction
with this new program. As one of the first
energy efficiency programs offered by Idaho
Power in Oregon, customers are expected to
respond positively.
Page 30 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Industrial Efficiency
Summary 2005
Description
The Industrial Efficiency program was selected
for implementation in the 2004 IRP process.
The program is offered to large commercial and
industrial customers of Idaho Power in both
Idaho and Oregon.
The program targets the acquisition of peak kW
and kWh savings from efficiency projects at
customer sites through evaluation of existing
facilities.
Operationally, the program provides the
following:
Training and basic education on energy
efficiency
Auditing services for project
identification and evaluation
Financial incentives for project
implementation
The program is marketed to approximately 300
qualifying customers in Idaho and Oregon who
have a Basic Load Capacity of 500 kW or more.
Upon indication of interest, customers initiate
an application process which includes:
Identifying potential projects applicable
to their facilities
Providing sufficient information to Idaho
Power to establish a basis for viable
conservation projects
Finalizing application with terms and
conditions of each party s obligations
Idaho Power conducts on-site power monitoring
and data collection where practical to verify
information from the application process to
ensure kW and kWh savings are obtainable and
within program guidelines.
Due to customer processes in project approval
budgeting, and implementation processes,
complex projects may take as long as two years
to complete.
Results
2005 Highlights
Stakeholder meetings were held with industrial
customers, the EEAG, IPUC representatives,
and Idaho Power representatives late in 2004 to
review the program. Recommendations for
program changes developed from these
meetings include:
Simplification of the incentive
calculations
Expansion and improvement of the
scope of the auditing services aspects of
the program
Annual Report 2005 Page 31
Demand-Side Management Idaho Power Company
Elimination of the one-year minimum
payback requirements
Approval for program expansion into
Oregon for 2006
Creation of "self-directed" accounts for
Schedule 19 and special contract
customers
These changes were presented to the EEAG in
january 2005. The program was widely
accepted by the large commercial and industrial
customers in 2005.
Participation
Twenty-four different projects were completed
among 12 companies at 19 separate locations in
Idaho.
Idaho Power also increased activity in energy
auditing and education in 2005. Over 30
walk-through energy audits were performed by
company personnel during the year. In addition
a total of 16 initial scoping studies were
performed by independent energy service
companies. These scoping studies lead to the
completion of three detailed studies in 2005.
Customer training and education was another
factor in the overwhelming success of the
program in 2005. A total of eight workshops
were sponsored by Idaho Power. These
workshops were hosted in conjunction with the
Alliance, Washington State University, the u.S.
Department of Energy, and the Idaho Energy
Division. Approximately 260 customers
participated in these workshops.
Energy Impact
The IRP goal was set at 8 500 MWh for 2005.
Actual savings achieved were 12 017 MWh.
Approximately 64% of the total energy savings
were achieved through building controls,
re-commissioning refrigeration condenser
upgrades, and lighting retrofitting.
Customer Satisfaction
This program has been particularly well
received with Idaho Power s large commercial
and industrial customers as evidenced by the
high levels of interest and participation rates.
Plan for 2006
Energy targets for 2006 are 8 500 MWh for
Idaho and Oregon.
A second round of stakeholder meetings is
currently being planned in early 2006.
Discussions will focus on additional
improvements to the Industrial Efficiency
program.
Page 32 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
Irrigation Efficiency Rewards
Summary 2005
Description
The Irrigation Efficiency Rewards program was
originally developed following selection by the
2004 IRP process. It was designed to improve
the energy efficiency of irrigation customers in
Idaho Power s service area. The program
provides a wide range of financial incentives
and educational programs designed to serve the
diversity of irrigator needs.
The incentive programs are designed to
encourage energy efficiency of irrigation
systems by offering a wide range of options to
irrigation systems in the service area. These
options cover minor and major system
improvements. In order to meet the needs of
such a wide range of systems, two separate
options were developed. For older, less efficient
systems, the "Custom Incentive Option
provides for component upgrades and
large-scale improvements. For systems where
small or maintenance upgrades will provide
energy savings, the "Menu Incentive Option" is
offered.
Specifics for each of these two incentive
alternatives are as follows:
Custom Incentive Option
Based on irrigation system upgrade orreplacement.
Measures kWh and KW savings and
total project cost.
For system replacement, incentives are
the lesser of:
$0.25 per kWh saved or
10% of total project cost.
For system upgrade , incentives are the
lesser of:
Greater of $0.25 per annual kWh
saved or $450 per kW, or
75% of total project cost.
Menu Incentive Option
Based on specific component
replacement.
Paid on predetermined average kWh
savings per component.
See detail of Menu Incentive options in
Table 7.
Annual Report 2005 Page 33
Demand-Side Management Idaho Power Company
Table 7.Irrigation Efficiency Menu Incentive
Options
Per Unit
Equipment and Measures Incentive Savings
New flow-contra I-type nozzles
replacing existing brass
nozzles...................................$1.20 kWh/yr
New brass nozzles replacing
existing worn nozzles.............$0.20 kWh/yr
Rebuilt or new brass impact
sprinklers replacing
existing nozzles .....................$3.40 kWh/yr
New rotating-type sprinklers
or low-pressure pivot
sprinkler heads ......................$3.40 kWh/yr
New low-pressure regulators.....$5.40 kWh/yr
New gaskets for existing
wheel lines, hand lines,
valve openers, riser caps .......$1.30 kWh/yr
New gaskets for existing
portable lines .........................$3.30 kWh/yr
New wheel line hubs (if
applicable) .............................$12.40 kWh/yr
New wheel line low pressure
drains.....................................$0.30 kWh/yr
Complete pivot $9.
package .................................per outlet 100 kWh/yr
Pipe Joint repair of leaking $8.
lines .......................................per joint 60 kWh/yr
Program Operations
Each proposal for a system or component
modification are reviewed and analyzed by an
Idaho Power Agricultural Representative to
determine and verify savings relative to menu
options.
Idaho Power Agricultural Representatives also
provide energy audits to customers to evaluate
potential program savings.
In addition to incentives, the program provides
significant educational and training
opportunities for irrigation customers. Idaho
Power Agricultural Representatives sponsor
coordinate, and participate in educational
workshops for irrigation customers. The
workshops provide customers with expert
information and education across the service
area.
Idaho Power Agricultural Representatives also
engage agricultural irrigation equipment dealers
in training sessions to increase awareness and
product knowledge to promote the program
throughout the irrigation equipment distribution
channel.
Marketing communication efforts providing
awareness of the program include direct
mailing, advertisements in agricultural
publications, and attendance at agricultural trade
shows in the Idaho Power service area.
To participate in the program the customer must
identify a project on their system, provide
sufficient information indicating the viability of
the conservation project, complete an
application, and enter into and incentive
agreement with Idaho Power.
Results
2005 Highlights
Completion of stakeholder input process
for evaluation and integration into new
program design including increased
options, higher incentive caps, and
higher overall incentive payments.
Development and rollout of new
program design including the Custom
and Menu Incentive Options in fall
2005.
Increased staffing levels by an additional
two Agricultural Representatives to meet
additional field support.
Approval by the OPUC for
implementation starting in 2006.
Participation
The program is available to all agricultural
irrigation customers. Each customer can
evaluate the benefits of the options the program
makes available and improvement projects can
Page 34 Annual Report 2005
Idaho Power Company Demand-Side Management
range from very large to very small. In 2005, 38
payments were made to irrigation customers, 22
of which were incentives under the old program
incentive structure and 16 were participants
under the new Menu Incentive. Incentives paid
to customers in 2005 totaled $78 873.
Energy Impact
The energy impact of the program comes from
efficiency in irrigation energy use in the
summer months. This efficiency of energy use
will impact loads during both peak and
non-peak periods. Savings for 2005:
Summer peak savings of 401 kW
Summer energy savings of
012 883 kWh
Customer Satisfaction
The issue of high energy bills has been a
recurring theme in Idaho Power irrigation
customer satisfaction surveys. The Irrigation
Efficiency Rewards program is designed to
improve customer satisfaction by helping them
find ways to reduce their energy bills through
efficiency. In addition to financial incentives to
reduce bills, the program provides assessment
services through its auditing process. The
educational aspect of the program provides a
broad sharing of state of the art knowledge and
best practices. These services are available to all
customers in this customer rate class.
In as much as modifications to the program
were driven by customer needs, Idaho Power
expects to see improvements in customer
satisfaction from the program. Idaho Power will
continue to monitor customer satisfaction in
relation to the program offerings.
Plan for 2006
In anticipation of the increased participation
rates, the program energy savings goals for 2006
have been increased to 2.6 MW and
200 MWh.
A Program Specialist will be added to the staff
to aid in building customer awareness
understanding, and participation. Additional
areas of support will include project
administration and coordination to improve
implementation time and general
responsiveness.
Annual Report 2005 Page 35
Demand-Side Management Idaho Power Company
Page 36 Annual Report 2005
Idaho Power Company Demand-Side Management
MARKET TRANSFORMATION
Market Transformation is a method of achieving
energy savings through engaging and
influencing large national and regional
organizations who are gatekeepers to decisions
that impact energy usage in products, processes
and procedures affecting electrical power
consumption.
Such benefits are achieved by Idaho Power
participation in the Alliance along with a
consortium of other utilities throughout the
Pacific Northwest to provide large-scale market
transformation services.
The Market Transformation model is designed
to return energy savings that would otherwise be
unreachable individually by virtue of pooling
resources into a single organization that is solely
focused on large-scale programs.
Activities include industry design standards
materials sourcing, advertising, process
methodology, and others.
Many of the DSM programs implemented in
Idaho Power s service area have their genesis in
Alliance activity, including ENERGY ST AR(B)
Homes Northwest, Savings with a Twist, and
certain aspects of Commercial Building
Efficiency.
The following pages describe Idaho Power
relationship with the Alliance, the activities and
accomplishments of 2005, and the benefits and
costs associated with the Market Transformation
activities in the past year.
Figure 5 provides a breakout of 2005 expenses
for Market Transformation activities in the
DSM portfolio.
Figure 5. Market Transformation 2005 Program Expense
%of
Market Transformation Program Expense All DSM
Alliance........................................... $476,891 7.
Total $476,891 7.
Demand Response...................... 34.
Energy Efficiency......................... 56.
Market Transformation ................ 7.
Other Programs and Activities ..... 2.
Market
Transformation
Annual Report 2005 Page 37
Demand-Side Management Idaho Power Company
Page 38 Annual Report 2005
Idaho Power Company Demand-Side Management
MARKET TRANSFORMATION
Northwest Energy
Efficiency Alliance
Idaho Power accomplishes market
transformation programs in Idaho Power
service area through membership and
coordinated activities with the Alliance. The
Alliance is a regional group whose mission is to
catalyze the Northwest marketplace to embrace
energy-efficient products and services.
Industrial Alliance
Activities in Idaho
In Idaho, the Alliance focuses on selecting
specific food-processing customers to provide
support for management assessment and
planning tools as well technical assistance in
motors, pumps , and compressed air systems.
Because Idaho Power s customers make up a
significant portion of the region
food-processing load, focused effort is being
made to select Idaho Power customers for
demonstration sites. It is anticipated that in the
next six months these customers' sites will be
announced.
Underwritten by the Alliance in 2005, Idaho
Power attracted many of the regional industrial
technical training and technical workshops to
Idaho.
And as described in the following pages, Idaho
Power is participating in the Distribution
Efficiency Initiative of the Alliance.
Commercial Alliance
Activities in Idaho
In 2005, the Alliance launched a new
Commercial Sector Initiative with the primary
objectives of targeting the hospital and grocery
sectors as well as development of integrated
design products and services. In Idaho, the
Alliance increased support of the Boise
Integrated Design Lab and BetterBricks
trainings and workshops. This included
sponsoring the 2nd Annual BetterBricks Awards
which was very successful. Also , Boise was the
demonstration site of a Desert CoolAire HV AC
unit installed in the early winter 2005.
The Idaho Power Buildings Efficiency program
is strategically designed to leverage the
BetterBricks and Boise Integrated Design Lab
offerings.
Residential Alliance
Activities in Idaho
The Alliance has two primary programs in the
residential sector-ENERGY ST AR(ID Homes
Northwest and Consumer Products. Idaho
Power is one of the leading regional partners in
the ENERGY ST AR(ID Homes Northwest
program, providing many of the newer
marketing tools such as the ENERGY ST AR(ID
video and the Google search path. Idaho Power
also was a partner with the Alliance in the
Savings with a Twist CFL program. Both of
these programs were reviewed in the previous
section.
Other Alliance Activities in Idaho
In 2005 , the Alliance initiated a new homes
construction survey to monitor the building
characteristics of new residential building stock
in the region. Idaho Power has chosen to pay for
an additional over-sample in the Treasure
Valley in order to obtain statistically valid data
for energy efficiency features of new homes in
this area. Preliminary data will be provided
mid-2006.
The Alliance continues to provide energy code
support to jurisdictions in Idaho. This will help
provide the technical and practical support
needed when the state evaluates adopting the
2006 International Energy Code.
Annual Report 2005 Page 39
Demand-Side Management Idaho Power Company
Each year the Alliance underwrites the Idaho
Energy Conference through a contract with
Association of Idaho Cities. The Alliance
continues to provide general information
support to the region by funding the Energy
Ideas Clearinghouse and ConWeb.
Alliance Funding Review
In 2005, Idaho Power began the first year of the
2005-2009 contract and funding agreement with
the Alliance. Idaho Power funds approximately
$1.3 million per year to the Alliance to
implement market transformation programs in
Idaho Power s service area. Idaho Power had on
account a $1.9 million credit with the Alliance
at the beginning of 2005 and chose to apply that
money to the 1st and 2nd 2005 quarterly
payments. Concurrently, Idaho Power requested
that it be allowed to pay for future Alliance
payments through the Idaho and Oregon DSM
Riders. In Order No. 29784 the IPUC allowed
funding in this manner. The OPUC
subsequently allowed future funding for the
Alliance in the Oregon DSM Rider through
Advice No. 05-03. Idaho Power spread the
remaining $1.4 million credit across the rest of
the 2005-2009 contract time period. This was to
attempt to reduce the rate swing impacts on
Idaho Power customers.
In 2005, Idaho Power paid $476,890 to the
Alliance on ajurisdictional basis. Idaho s share
of the payments was $440 619 (95%) and
Oregon s was $36,271 (5%). These amounts
reflect only payments for the 3rd and 4th
quarters, because the payments due the first two
quarters were covered by the credit balance
accrued at the end of 2004. These amounts do
not include other costs to participate in the
Alliance , such as employees ' time and travel
that were absorbed by the company.
Preliminary estimates reported by the Alliance
indicate that Idaho Power s share of regional
market transformation MWh savings for 2005 is
054 which is 2.29 MWa. Idaho Power relies
on the Alliance to report the energy savings and
other benefits of the Alliance s regional
portfolio of initiatives.
For further information about the Alliance visit
their Web site at www.nwalliance.org.
Page 40 Annual Report 2005
Idaho Power Company
OTHER PROGRAMS
AND ACTIVITIES
Other Programs and Activities represent a wide
range of small projects that are outside of the
purview of the other DSM programs.
These programs can cover virtually any type of
project within the scope of the DSM mission at
Idaho Power including small demonstration
projects of new technologies, supporting
education opportunities in DSM in the service
Demand-Side Management
area, development of new educational
initiatives, and general support for the overall
DSM effort.
Small by nature but valuable nonetheless , brief
overviews of each of these 2005 Idaho Power
projects are provided on the following pages.
Figure 6 provides a breakout of 2005 expenses
and the relative ranking for these programs as a
percent of the total DSM expense.
Figure 6. Other 2005 Program Expense
Other
Other Programs and Activities
Building Operator Training ...............
Commercial Education Initiative ......
Distribution Efficiency Initiative ........
Other C&RD ....................................
Residential Education Initiative........
Small Project/Education Funds........
Total
%of
Expense All DSM
$1,750
$3,497
$21 552
$101 177
$7,498
$14,896
$150,370
Demand Response...................... 34.
Energy Efficiency......................... 56.
Market Transformation ................ 7.
Other Programs and Activities ..... 2.
Annual Report 2005 Page 41
Demand-Side Management Idaho Power Company
Page 42 Annual Report 2005
Idaho Power Company Demand-Side Management
OTHER PROGRAMS
AND ACTIVITIES
Building Operator Training
The training program that was formerly held in
Boise and exclusive to school building operators
was expanded to Pocatello and opened to
building operators from institutional facilities in
2005. Scholarships were offered and seven
building operators were trained. These people
were responsible for 868 333 square feet of
buildings. Energy savings for building operator
certification is based on an Alliance evaluation
that shows 0.5 kWh/square foot/year. This
resulted in estimated savings of 434 167 annual
kWh.
Commercial and Residential
Education Initiatives
These two education-oriented initiatives were in
the pre-formulation stage during 2005.
The goal of these initiatives is to identify the
general education needs of these groups and to
gather information and develop educational
materials that are complementary to the existing
programs in the Residential and Commercial
sectors.
The year 2006 will see these initiatives
developed and implemented to meet the
comprehensive customer education needs for
energy issues within the Idaho Power service
area.
Distribution
Efficiency Initiative
Substation Pilot
Demonstration Project
The Alliance is conducting a Pilot
Demonstration project with 10 Northwest
utilities, both public and private, to determine
efficient ways to design and operate distribution
feeders. The goal is to achieve energy savings
by limiting the primary distribution system
voltage drop to 4V to 5V and operate the feeder
voltage in the lower bandwidth of the acceptable
voltage range, which is 126V to 114V to the
customer meter. In addition, using line drop
compensation settings in the substation voltage
regulators will help reduce the average feeder
voltage during off-peak periods. The study
anticipates that the average system voltage can
be reduced by 3-5% and the expected energy
savings will be from 1-3% on average. The
Pilot Demonstration study will help determine
the energy savings on the utility side of the
meter and the energy savings for the customers.
Load Research Project
The Alliance is conducting a residential load
survey project at 500 locations with 10
Northwest utilities, both public and private, to
determine a relationship between the utility
service voltage and the demand and energy
consumed by residential customers. The study
will use a Home Voltage Regulator (HVR)
manufactured by MicroPlanet to adjust the
service entrance voltage of the resident and
recording meter will document the voltage,
demand, and energy usage. The HVR will
operate at normal utility voltage for 24 hours
and then switch to regulate the service entrance
voltage to 115V for the next 24 hours, toggling
day on and day off of a one-year period. The
voltage and energy relationship will be
compared between the control days and the non-
control days to determine the change in service
entrance voltage and demand and energy used
by the residential customer. An in-home survey
will be conducted to determine end use load
types, such as electric heating, air conditioning
cooling, type of lights, and other energy related
information. A sample design was developed by
RL W, Inc. to determine the sample size and the
strata to determine if different end use load
types have a unique energy to voltage
relationship.
Annual Report 2005 Page 43
Demand-Side Management
2005 Highlights
Sixty HVRs have been installed in
Southern Idaho. Distribution line
regulators have been installed on a Boise
substation feeder in preparation for
reducing the substation operating
voltage.
If the pilot demonstration and load
research are successful, a saving of
3% per feeder is anticipated.
The HVRs have produced some
interference with AM radio and
television channel 2. These interference
issues have not been resolved by the
manufacture, so the HVR has been
removed. The research meter connection
to the customer phone line has produced
undesirable phone interference.
Plan for 2006
The substation pilot demonstration project will
be expanded during 2006 and the remaining
HVRs will be installed. Preliminary study
results should be available by the end of 2006.
Other Conservation
and Renewa ble
Discount Expenses
In addition to general BPA C&RD general
support expenses, in 2005 Idaho Power
provided funding through the C &RD to the
Regional Technical Forum (RTF) in the amount
of $25 000. The RTF serves as a regional
resource for energy conservation, focusing on
savings estimates and technical standards. The
RTF's work is in the public domain and Idaho
Power frequently consults with the RTF to
support Idaho Power DSM evaluations.
Idaho Power Company
Small Project/Education Fund
Cool Trol
Idaho Power participated in a demonstration for
the field-testing of CoolTrol, a new retail
refrigeration system control technology.
Two CoolTrol systems were installed as
demonstration projects in the Boise
metropolitan area during 2005. Idaho Power
paid $9 570 (the hardware cost of one system).
The total project cost was $21 430.
Expected total energy savings from these two
systems is approximately 64 000 kWh/yr Gust
less than 10% of total store energy use). Early
performance results are on track to meet the
initial savings estimate. The system is under
evaluation by the retailer for potential territorial
expansion.
Habitat for Humanity
Air Conditioning Unit
In 2005 , Idaho Power contributed $2 844 from
rider funds toward the incremental cost of a
high-efficiency heat pump at a newly
constructed single-family home in Caldwell
Idaho. This was the first ENERGY ST AR(ID
certified home constructed by the Canyon
County Habitat for Humanity. The installed unit
was a 2-ton, York "Olympian" 14 SEER,
0 HSPF.
This unit, along with the other efficiencies
provided within the ENERGY STAR(ID
guidelines is expected to provide about
000 kWh of energy savings and 1.7 kW
demand savings over a similar code-built home
with a 10 SEER, 6.8 HSPF heat pump.
Page 44 Annual Report 2005
Idaho Power Company Demand-Side Management
Residential Education Support
During 2005, Idaho Power provided funding for
several general education opportunities in Idaho
Power s service area. Idaho Power was a
sponsor and helped organize the Sustainability
in the Inland Northwest Conference, and also
provided funding for the City of Boise
Community Energy Efficiency Workshop.
Annual Report 2005 Page 45
Demand-Side Management Idaho Power Company
Page 46 Annual Report 2005
Idaho Power Company Demand-Side Management
ENERGY EFFICIENCY
ADVISORY GROUP
The EEAG was formed in May 2002 to provide
input on formulating, implementing, and
evaluating energy efficiency and demand
reduction programs that are funded by the
Riders in Idaho and Oregon. The EEAG
currently consists of 12 members from across
Idaho Power s service area and the Northwest.
Members represent a cross-section of customers
including residential, industrial, commercial,
irrigation, the elderly, low income, state
agencies, the environment, the public utility
commissions, and representatives from Idaho
Power.
In 2005 , the EEAG met three times, on
January 28, April 20, and August 17. In the
meetings, Idaho Power provided a status of the
DSM Riders ' (both Idaho and Oregon) funding
and expenses, provided updates on ongoing
programs and projects, requested
recommendations on new program proposals
and provided information to the group on DSM
issues.
Customer representative members of EEAG are
generally asked to serve for a three-year term.
The 2005 April meeting marked three years
since the group was formed, so eight of the
original members rotated off the group. Rotating
the customer representatives provides an
opportunity for Idaho Power to get diverse
customer input and provides the opportunity for
more of our customers to provide input. In order
to make the working group more manageable,
the number of representatives for each of the
four customer segments was reduced from two
to one per segment. Four new customer
representatives have been or are being added to
the group. Also, a member representing the
OPUC was added in August coincident with the
implementation of the Rider in Oregon. Meeting
minutes and other meeting materials are
provided to all EEAG members and are
available upon request.
One of the primary functions of the EEAG in
2005 was to review the six major DSM
programs selected for implementation in the
2004 IRP. The programs presented to the EEAG
for review throughout 2005 were each in
various stages of implementation. For example
Commercial Building Efficiency was introduced
to the EEAG for the first time AlC Cool Credit
and Irrigation Peak Rewards were both pilot
programs in 2004 that were expanded to full
programs in 2005, Industrial Efficiency and
Irrigation Efficiency Rewards were existing
programs that received major program
enhancements in 2005, and the sixth program
ENERGY STAR(ID Homes Northwest, is an
ongoing program with no major changes
planned in 2006. Finally, the EEAG reviewed
presentations about the expansion of DSM
programs into Idaho Power s Oregon service
area and the subsequent Rider funding proposal
in Oregon.
EEAG Program
Recommendations
The following section provides a review of the
input provided to Idaho Power by the EEAG
regarding major program implementation and
operational issues in 2005. Please note that all
DSM programs the company is operating have
been reviewed by EEAG; however, only those
suggestions where substantial changes or
modifications to the program were received
have been included below.
Commercial Building
Efficiency Program
Idaho Power presented proposals to the EEAG
during the January and April meetings to
implement a program targeted to the
commercial building sector. This program
launched in the spring of 2005, is available to
commercial customers building new facilities or
planning major renovations. The program
encourages customers to build new buildings
with specific components that would make the
Annual Report 2005 Page 47
Demand-Side Management Idaho Power Company
building more energy efficient than current code
and reduce summer peak. The EEAG had the
following guidance:
decision was widely reported to program
participants, the local design
community, and Idaho Power sfield
staff.
Because the initial budget appeared
small , and it was thought there might be
pent-up demand for this program, there
were concerns that the original budget
was inadequate.
It was suggested that information
regarding the payback for various
measures be included in the marketing
material.
Idaho Power s budget for this program
was taken from the IRP approved
expenditure stream. If it appeared that
demand for the program necessitated
more funding, Idaho Power was
prepared to shift additional funding to
this program.
Paybacks for most technologies vary
widely depending on operating hours
and the cost of the system being
installed. Idaho Power decided, at this
time, not to provide a payback number
for each measure since it may not have
much meaning to the customer.
A suggestion was made to distribute
brochures about this program at the
county permit offices and to involve the
Boise State University (BSU)
construction management school.Idaho Power provided two Green
Building wall calendars (featuring
attractive photos of us. Leadership in
Energy and Environmental Design
(LEED) gold and platinum projects) for
everyone who submitted their final
application by December 15th. The
intent of the free calendar was to
encourage customers to apply by the end
of the year. Two copies were provided
one for the owner and one to share with
a key person on his/her design team.
Several members suggested that the
company consider incentive "bonuses
for early adopters.
Idaho Power has placed program
brochures at several of the county permit
offices where there is a lot of
construction growth. Idaho Power
coordinated with BSU's Center for
Professional Development getting
program stories added to their monthly
newsletter and added the program head
for their Center for Construction
Technology to the monthly electronic
Building Efficiency Update.
Several members suggested including a
commissioning option in the program
list of measures.
Because the program was offering
incentives for several newer measures,
the basic design of the program was to
make the initial offering valid only
through the end of 2005. There was a
concern that the transition to 2006 might
not be smooth.
Idaho Power has included
commissioning as a measure in the
program. The program offers an
additional incentive of as much as
000 for whole building
commissioning and less for system
specific commissioning.
Idaho Power did decide in early fourth
quarter 2005 to extend the same
incentive structure though 2006. That
Page 48 Annual Report 2005
Idaho Power Company Demand-Side Management
It was suggested that Idaho Power
provide clarity where there may be
crossover between the commercial and
industrial programs.
The program eligibility is clear except
for a few large commercial customers
that qualify for both programs. Idaho
Power decided to allow customers to
choose which program they wish to
participate in but after that point they
are not eligible for the other program.
This process has worked fairly well thus
far.
Generally the EEAG group was supportive of
the final design of the Commercial Building
Efficiency program and thought it had high
potential for significant participation because it
was simple and straightforward for customers to
participate.
Irrigation Peak Rewards
During the April 2005 EEAG meeting, Idaho
Power presented the details of the Irrigation
Peak Rewards program. The company had
conducted a pilot of this program in 2004 with
input from the EEAG. The program structure
presented at the meeting was for the full rollout
structure to be implemented in the summer of
2005. This program was one of six selected for
implementation in the 2004 IRP.
It was suggested that Idaho Power might
want to survey the customers to
determine the reasons why they did or
did not participate in the pilot program.
As part of the year-end program review
Idaho Power did survey customers on
this question. Please see Irrigation Peak
Rewards, Final Report, December
2005 for the survey findings.
It was suggested that more flexibility in
the program would be an improvement
from the customer s perspective.
Idaho Power designed three options with
the intent to provide flexibility while
reducing the probability of free
ridership. Also, Idaho Power wanted to
keep the program simple for the first
year, with the idea that additional
options could be included at a later time
if deemed appropriate.
The EEAG group was supportive of the final
design of the Irrigation Peak Rewards program.
Irrigation Efficiency Rewards
Idaho Power presented a proposal to the EEAG
during the August meeting to redesign the
program available to the irrigation sector and to
rename the program Irrigation Efficiency
Rewards. This program, which was selected by
the 2004 IRP, provides incentives to make
irrigation systems more efficient. The EEAG
had the following guidance:
It was noted that irrigation dealers are
often considered local experts in
irrigation system design. It was
suggested that Idaho Power incorporate
local dealers into the program delivery
mechanism.
Idaho Power, through the field
Agriculture Representatives, has
educated most of the dealers on program
specifics and plans to work closely with
these important program partners in the
future.
There was a discussion on how to
capture the energy efficiency potential of
dairies.
The irrigation systems of dairy farms are
eligible for the Irrigation Efficiency
Annual Report 2005 Page 49
Demand-Side Management Idaho Power Company
Rewards program. Energy savings
opportunities for the non-irrigation load
of dairies will be evaluated in the
commercial efficiency program area.
The group unanimously supported proceeding
with the program and provided further
suggestions including evaluating alternative
energy sources, focusing on customer
satisfaction, and ensuring that the program has
strong marketing support.
Oregon School Efficiency Program
During the August 2005 meeting. Idaho Power
discussed the program structure for a new
program offering in Oregon. the Oregon School
Efficiency Program. This program partners with
the ODOE audit and evaluation program.
The EEAG suggested that the
program try to align with school budget
and operating cycles.
Idaho Power has designed this program
to be flexible so that schools with long
planning horizons can participate.
There were questions from the group
regarding what programs other Oregon
utilities are offering to schools.
Idaho Power will review this
information as the company proceeds
forward.
Savings with a Twist
During the August 2005 EEAG meeting, Idaho
Power presented program details regarding
participation in a region-wide CFL promotion
program. This program was available to all
electric utilities in the Pacific Northwest during
the fall months.
Suggestions were made for possible
marketing efforts including media
outreach and radio shows, Habitat for
Humanity, and Spanish ads.
A marketing plan including print and
radio ads was executed for this program.
There were questions on Idaho
Power providing Vending Miser and
refrigerator efficiency programs.
Programs like these for existing
customers were not selected by the 2004
IRP, nor was there a turnkey option
available to Idaho Power. The Savings
with a Twist program was considered
because it was offered turnkey and
would be easy and relatively inexpensive
to implement.
The EEAG gave general support to proceed
with this program.
General EEAG
Recommendations
EEAG members had a few suggestions for how
the group could be more effective with the time
and information available.
A member commented that even though
financial and energy savings information
is provided at the meetings it would be
helpful to include this data in future
minutes.
Idaho Power is evaluating how to best
provide this information in a timely
manner to the EEAG.
It was suggested that data be put out on
the Web site or that all handouts be
posted for members to access online. It
was also suggested that any handouts
that are e-mailed be in PDF format.
Those suggestions will be considered.
Page 50 Annual Report 2005
Idaho Power Company Demand-Side Management
Appendix 1.Idaho Rider, Oregon Rider and BPA Account Balances
Total Funding and Accrued Interest May 2002-December 2004 ............
2005 Funding plus Accrued Interest........................................................
Funding through 2005
Total Expense-Inception through December 2004................................
2005 Expenses .......................................................................................
Total Rider Expenses.....................................................................
2005 Year-End Balance
$ 6,909,186.
$ 5,866,997.
$ 12,776,183.
$ (2,095,464.83)
$ (4,533,878.06)
$ (6,629,342.89)
$ 6,146,840.
Qr~gpl"I' ~!1ergy Efficiel1(:y
Total Funding and Accrued Interest Beginning Balance (August 2005) ..
2005 Funding plus Accrued Interest........................................................
Funding through 2005
Total Rider Expenses.....................................................................
2005 Year-End Balance
141 089.
105,217.
246,307.
(31.472.83)
214 834.
BPJ:\f=undin!:j ,
Total Funding and Accrued Interest October 2001-2004........................
2005 Funding plus Accrued Interest........................................................
Funding through 2005
Total Expense-Inception through December 2004................................
2005 Expenses .......................................................................................
Total Expenses...............................................................................
2005 Year-End Balance
$ 1,735,594.
$ 530,186.
$ 2 265,780.
$ (1,479,628.70)
(612,48608)
$ (2,092,114.78)
173 666.
Annual Report 2005 Page 51
Demand-Side Management Idaho Power Company
Appendix 2.2005 DSM Expenses by Funding Source (Dollars)
Rider
BPA IPC
Sector/Program Idaho Oregon Funded O&M Total Program
Demand Response
Residential
A/C Cool Credit............................................718,066 35,996 754,062
Irrigation
Irrigation Peak Rewards...............................1,435,581 32,700 1,468,282
Demand Response Total 153,647 68,696 222 344
Energy Efficiency
Residential
Energy House C~lIs
"""""""""""""""""'"
375,346 265 375 610
ENERGY STAR Homes Northwest............247,071 034 253,105
Oregon Residential Weatherization .............351 261 612
Rebate Advantage
""""""""""""""""""'"
45,993 180 46,173
Savings with a Twist
""""""""""""""""""
73,152 73,152
Weatherization Assistance...........................736 370,099 1,446,835
Commercial
Commercial Building Efficiency....................186,290 776 194 066
Oregon Commercial Audit............................975 2,475 5,450
Oregon School Efficiency.............................
Industrial
Industrial Efficiency......................................125,470 2,486 120 128,076
Irrigation
Irrigation Efficiency Rewards .......................103,823 754 150,577
Energy Efficiency Total 1,735,807 898 498,075 1,433,964 673,744
Market Transformation
Alliance .............................................".........441,409 23,231 250 476,891
Market Transformation Total 441,409 231 12,250 476,891
Other Programs and Activities
Residential
Residential Education Initiative .................."128 370 7,498
Commercial
Building Operator Training ...........................1,7 50 750
Commercial Education Initiative...................3,497 3,497
Other
Distribution Efficiency Initiative ....................15,470 082 21,552
Other C&RD Expenses ................................101,065 112 101 177
Small Project/Education Funds....................14,896 14,896
Other Programs and Activities Total 116 111,690 564 150,370
Indirect Program Expense
DSM Analysis and Accounting.....................158,577 266 661 162 504
EEAG Meetings ...........................................174 191
Special Accounting Entries ..........................11,148 721 13,929
Indirect Program Expense 170 899 344 721 661 177 624
Totals $4 533 878 $31,473 $612,486 523 136 700,973
Page 52 Annual Report 2005
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Demand-Side Management Idaho Power Company
Appendix 4.Financial Factors for DSM-2006 IRP
Initial Data
Composite income tax rate
Property tax %
Deferred tax switch (true/false)
39,10%
41.00%
TRUE
Discountin
Nominal
Escalation
Real
Revenue Requirements
Deferred tax rate
Tax life (yrs)
Declining balance rate (DBR)
Tax timing (months in 1 st yr)
Inputs in white
Adjust-
ment
Factor
03588
03000
00570
Weiqht Cost
Pre-tax PosHax
651% 3.441%000% 0.000%
11.250% 11.250%
35%
100%
Capital
Debt
Preferred
Common
50.538%
000%
49.462%
100.000%
Tax Factors
Capital Recovery Factor Conversion Factor
(CRF)Nominal
Amount per Year with Nominal to30-
Present Value of $1 to Real Nominal
Nominal Real
1+8 1+C E+D F,
96537 96537 035875 035875 000000 364716
86503 89202 536186 528537 985735 1,345248
70345 78150 369898 359518 971940 326422
3.48480 63531 286960 275080 958600 308216
21297 4.45487 237362 224473 945701 290613
89158 24156 204433 190783 933230 273594
52400 99670 181028 166758 921173 257140
00000 72155 163576 148775 909518 241233
66263 7.41733 150091 134819 898251 225857
17450 08521 139383 123683 887361 210995
65153 72630 130693 " 4596 876836 1 . 1 96631
09609 9,34167 123516 107047 866664 182750
51039 93236 117503 100681 856834 1 .169335
89649 10.49937 112404 095244 847336 156372
25631
" .
04363 108034 090550 838158 143848
59164 1 1 .56606 104257 086460 829292 131748
90414 12.06754 100968 082867 820726 120058
10.19537 12.54890 098084 079688 812452 108766
10.46678 13.01096 095540 076858 804459 1 .097858
10.71972 13.45448 093286 074325 796740 087323
'1.17512 14.28888 089485 069984 782085 067323
11,57063 15.05769 086426 066411 768420 048675
11.74843 15.41913 085118 064855 761939 039830
11.91413 15.76607 083934 063427 755682 031291
12.21247 16.41876 081884 060906 743812 015092
12.47157 17.02015 080182 058754 732753 000000
12.69660 17.57426 078761 056901 722454 985945
12.97990 18,32484 077042 054571 708323 966659
13.20920 18.98868 075705 052663 695635 949344
13.33723 19.38805 074978 051578 687910 938801
13.44843 19.75603 074358 050617 680725 928996
13.58842 20.25448 073592 049372 670884 915567
13.70172 20.69533 072984 048320 662068 903535
13.76499 20.96055 072648 047709 656709 896222
Present Value Factor (PVF) for n years = Adjustment Factor x (1 - ((1 + Rate) " on)) + Rate
Real Discount Rate = ((1 + Nominal Rate) + (1 + Escalation Rate)) - 1
Nominal Adjustment Factor = (1 + Nominal Rate) " Nominal Timing Factor
Escalation Adjustment Factor = (1 + Escalation Rate) " Escalation Timing Factor
Real Adjustment Factor = Nominal Adjustment Factor + Escalation Adjustment Factor
For timing factors, use 0 for end of period (ordinary annuity), 1 for beginning of period (annuity due), and 0.5 for midpoint.
updated February 2006
Page 54 Annual Report 2005