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HomeMy WebLinkAbout20060913IPC to ICIP 31-45.pdfIDAHO POWER ~E \ V ED O. BOX 70 -'--' ---~- BOISE ld 4: 56An IDACORP Company UUD Monica B. Moen Attorney II \0 t~ 4 () I-'U GL.i(~ UTIUfISS- cmM~\iSSI0N September 12, 2006 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P. O. Box 83720 Boise , Idaho 83720-0074 Re:Case No. IPC-06- Idaho Power Company s Response to the Third Production Request of the Industrial Customers of Idaho Power Dear Ms. Jewell: Please find enclosed for filing an original and two (2) copies of Idaho Power Company s Response to the Third Production Request of the Industrial Customers of Idaho Power regarding the above-referenced matter. I would appreciate it if you would return a stamped copy of this transmittal letter to me in the enclosed self-addressed stamped envelope. Very truly yours Monica B. Moen MBM:sh Enclosures Telephone (208) 388-2692 Fax (208) 388-6936, E-mail MMoenfWidahopower.com BARTON L. KLINE ISB #1526 MONICA B. MOEN ISB #5734 Idaho Power Company O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 RECEIVED 200n SEP \ 2 PM 4: IDtHO \;'UdL..IC UTILlT\ES COiAM\SSION Attorney for Idaho Power Company Street Address for Express Mail 1221 West Idaho Street Boise , Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR THE RATE BASING OF THE EV ANDER ANDREWS POWERPLANT. CASE NO. IPC-06- IDAHO POWER COMPANY' RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER COMES NOW, Idaho Power Company ("Idaho Power" or "the Company and, in response to the Third Production Request of the Industrial Customers of Idaho Power to Idaho Power Company dated August 15 , 2006, herewith submits the following information. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 31: In response to ICIP's Production Request No., Idaho Power stated Given the competitiveness of the pricing in the Bennett Mountain RFP, Idaho Power was able to acquire the incremental 85 MW of capacity (173 MW-88 MW = 85 MW) at an extremely competitive price providing additional generation at minimal cost while improving reliability for customers. Please explain how the "additional generation" acquired , above the 88 MW called for in the 2004 IRP , will change IPC's projected need for future resources as set forth in the 2004 IRP? For example, will the additional generation acquired obviate the need for any specific RFPs that were called for in the 2004 IRP? RESPONSE TO REQUEST NO. 31: The additional peaking capacity acquired above the 88 MW called for in the 2004 IRP will allow Idaho Power to defer the timing of future resources required to serve peak-hour loads. Although Idaho Power does not typically assign or correlate changes in its resource plan to specific changes in inputs such as load forecast, PURPA generation forecast, Snake River base flows , or resource additions (or losses), the summation of these types of changes are considered in total in the 2006 IRP. The summation of changes considered in the 2006 IRP, including the 85 MW of additional peaking capacity provided by the larger Evander Andrews combustion turbine , have allowed several of the resources selected in the 2004 IRP to be deferred. First, the 100 MW geothermal resource originally planned to be online in 2008 in the 2004 IRP has been reduced to 50 MW and the online date deferred until 2009. Second the 62 MW combustion turbine/distributed generation/market purchase resource originally planned to be online in 2010 in the 2004 IRP has been eliminated altogether IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 2 although market purchases are still anticipated in the 2006 IRP. Finally, the 12 MW of CHP resources originally planned to be online in 2007 in the 2004 IRP have been deferred until 2010. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen, Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 3 REQUEST FOR PRODUCTION NO. 32: In response to ICIP Production Request No., Idaho Power stated that ". . . by incorporating a range of sizes in the RFP and ultimately selecting a 173 MW combustion turbine , Idaho Power has an opportunity to defer additional generation resources in future resource plans. .." Please provide a copy of all resource plans in which Idaho Power has deferred, or would defer additional generation due to the proposed Evander Andrews plant's having more generation capabilities than the 88 MW called for in the 2004 IRP. Also, please provide a description of how the additional generation (above the 88 MW) called for in the 2004 IRP) will affect Idaho Power s projected resource needs in the future. If possible, please describe the types of resources that will be deferred due to the additional generation. RESPONSE TO REQUEST NO. 32: The IRP Advisory Council (IRPAC) Draft of Idaho Power's 2006 IRP is attached hereto as "Response to Request No. 32. Please refer to the Company s Response to Request No. 31 for a description of how the additional capacity (above 88 MW) of the Evander Andrews project, along with the other changes incorporated in the 2006 IRP , have affected Idaho Power s future resource needs. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen , Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 4 REQUEST FOR PRODUCTION NO. 33: In response to ICIP Production Request No. 18 , Idaho Power stated that , if the Commission denied Idaho Power s request for a certificate of public convenience and necessity for the Evander Andrews plant, one option it would most likely pursue would be "utilizing diesel or temporary gensets." Please describe what diesel or temporary gensets IPC could use, and provide copies of any studies or documentation regarding the costs of those resources. RESPONSE TO REQUEST NO. 33: One type of diesel generating set that Idaho Power could use is a reciprocating engine genset similar to the Caterpillar mobile gensets used during the energy crisis of 2001. Another possible alternative is using transportable combustion turbine-based gensets similar to Pratt & Whitney Swiftpac 25T (25 MW), Swiftpac 50 (50 MW) or its Mobilepac (25 MW). Caterpillar also offers the XQ5200 Mobile Turbine , a 5.2 MW combustion turbine genset on a rental basis. Idaho Power has no recent cost studies on these generation alternatives. Information on these resource alternatives is available on Pratt & Whitney s and Caterpillar s websites. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen, Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 5 REQUEST FOR PRODUCTION NO. 34: Please describe any cap that Idaho Power has placed on its spending for Demand Side Management programs. there are any caps placed on Demand Site Management programs , please explain how the Company determines such cap if the program has proven to be cost-effective (having a savings in energy costs that is greater than the cost of the program). RESPONSE TO REQUEST NO. 34: Idaho Power has no spending caps on Demand Side Management programs. The primary source of funding for Demand Side Management programs is provided pursuant to Schedule 91 , Energy Efficiency Rider (Rider) approved by the Idaho Public Utilities Commission and the Oregon Public Utility Commission. The budgeted funding levels for each program are based upon anticipated expenditures associated with achieving the energy savings and demand reduction levels identified in the 2004 Integrated Resource Plan and administered with guidance from the Energy Efficiency Advisory Group. The Bonneville Power Administration (BPA) also provides funds for some of Idaho Power s Demand Side Management programs. Funding levels for these programs are established by the BPA. Through its base rates, Idaho Power provides internal funding for the Weatherization for Qualified Customers Program (WAQC formerly known as Low Income Weatherization Assistance , or LlWA, and other expenses that are not provided for within the Rider. Idaho Power s WAQC funding requirements are based upon historically determined levels and state agency budgeting needs. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 6 The response to this request was prepared by Theresa Drake, Manager Customer Relations and Research , Idaho Power Company, in consultation with Monica Moen, Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 7 REQUEST FOR PRODUCTION NO. 35: Please provide copies of all budgets and supporting work papers for Idaho Power s DSM programs over the past five years. RESPONSE TO REQUEST NO. 35: Attached hereto as "Response to Request No. 35" is information related to budget estimates as presented to the Energy Efficiency Advisory Group (EEAG). The various formats of presentations have evolved throughout the past few years based on suggestions made by EEAG members. The response to this request was prepared by Theresa Drake , Manager Customer Relations and Research , in consultation with Monica Moen , Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 8 REQUEST FOR PRODUCTION NO. 36: Please provide any analyses conducted by Idaho Power into how the transmission that will be required to bring the Evander Andrews output to load will affect the Company s loads and resources. RESPONSE TO REQUEST NO. 36: The transmission required to bring the Evander Andrews output to load will have no effect on the Company s loads and resources. The response to this request was prepared by Roger Grim , System Planning Engineer, Idaho Power Company, in consultation with Monica Moen , Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 9 REQUEST FOR PRODUCTION NO. 37: In Idaho Power s Response to Staff's Request No. 81 , Idaho Power provided a copy of the Company s 2003 evaluation manual for the peaking resource RFP. Page 29 of that document sets forth a "Cogen and Small Power Forecast (aMW)." Please provide a copy of the Company s current "Cogen and Small Power Forecast (aMW)." If one is not available, please fully explain why, and how the Company s decisions with regard to the 2005 RFP took into account the generation the Company would receive from Cogen and Small Power Producers. RESPONSE TO REQUEST NO. 37: Please refer to the document attached hereto as "Response to Request for Production No. 37. The response to this request was prepared by Randy C. Allphin, CSPP Contract Administrator, Idaho Power Company, in consultation with Monica Moen Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page 1 0 REQUEST FOR PRODUCTION NO. 38: With regard to the "Cogen and Small Power Forecast (aMW)" referred to above in Request for Production No. 40 (sic 37), please explain fully why the document shows no increase in Cogen and Small Power generation after 2004. Additionally, please explain whether the Company forecasts any increase in Cogen and Small Power generation after 2006 and beyond. RESPONSE TO REQUEST NO. 38: The Cogen and Small Power Production (CSPP) forecast is revised , at a minimum, annually. Because Idaho Power has no control over the development and operation of CSPP projects, forecasting of the actual energy output and monthly shape of the energy delivery from these facilities is very difficult. In fact, in the case new CSPP resources under contract with Idaho Power but not yet constructed , the actual online dates of these projects tend to vary tremendously from their estimated online dates which makes it virtually impossible to depend on any generation from these projects until such time as they have actually come online and established some monthly generation history. As a result, the Company only includes the estimated output from projects with signed and IPUC- approved agreements in the CSPP forecast at the time the forecast is prepared. Idaho Power currently has over 200 MW of nameplate rating of new CSPP projects under contract that have not yet been constructed. The majority of these projects are wind projects. Thus, after applying an optimistic capacity factor of 30% to this 200 MW of nameplate rating, the amount of generation anticipated from these resources is approximately 60 MW on an annual average basis. The majority of these projects estimate online dates in late 2007. Thus, in the current forecast provided in response to Request No. 37, the additional generation IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page is forecasted to appear in calendar year 2008. However, it is important to note that since Idaho Power has no control over the construction or operation of these or any additional PURPA projects , this forecast will most likely change numerous times prior to these projects coming online and after actual operation history has been established for these projects. The response to this request was prepared by Randy C. Allphin , CSPP Contract Administrator, Idaho Power Company, in consultation with Monica Moen Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 39: With regard to the "Cogen and Small Power Forecast (aMW)" referred to above in Request for Production No. 40 (sic 37), please explain why the 2005 RFP evaluation manual did not contain a similar chart or forecast. RESPONSE TO REQUEST NO. 39: Please refer to the Company Response to Request No. 81 propounded by the IPUC Staff in this matter. The response to this request was prepared by F. Gregory Hall , Principal Engineer, Idaho Power Company, in consultation with Monica Moen, Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 40: In response to ICIP Request for Production No. 18, Idaho Power describes five alternatives for meeting peak demand that it would consider if the Commission denies its request for a certificate of public convenience and necessity for the Evander Andrews plant. Please describe what efforts the Company has made to determine the costs of those alternatives and any estimates the Company has developed of the costs for implementing these alternatives instead of constructing the Evander Andrews plant. RESPONSE TO REQUEST NO. 40: The Company has not performed a detailed analysis of the costs associated with the five alternatives described in ICIP Request for Production No. 18. Preliminary estimates are available for a couple of the alternatives. Alternative 1 - Additional firm east side purchases. Idaho Power has priced , but has not executed , any additional firm east side purchases for heavy load hours in July 2007. On September 5 2006 , the Mid-C to Four Corners price spread for firm heavy load energy was $16 to $17/MWh. The higher Four Corners price is representative of the premium Idaho Power may have to pay for an east side purchase. In addition to the premium relative to Mid-C pricing, the cost to purchase energy on Idaho Power s east side may require an additional expenditure of $5 - $7 to compensate for the cost of transmission between Four Corners and Idaho Power s east side interconnections. Alternative 2 - Increase transmission system import capacity. Several alternatives to increase import capacity were investigated in the 2006 IRP. Pages 57 through 62 of the Draft 2006 IRP (IRPAC Draft) discuss these transmission projects. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page Preliminary cost estimates (prepared by Power Engineers) range from $10.8 million to reconductor the Lolo to Oxbow line to $282 million for the Bridger to Midpoint 500 kV upgrade. These upgrades were not originally envisioned as alternatives to replace the new Evander Andrews combustion turbine. However, if the certificate of public convenience and necessity for the Evander Andrews plant is denied, the projects identified in the 2006 IRP are the type of longer-term transmission upgrades that Idaho Power would consider to increase import capability. Idaho Power has submitted long- term firm transmission requests to NorthWestern Energy, BPA , Avista, PacifiCorp and Idaho Power. These requests establish a position in the transmission providers' queue and initiate the process of determining system impacts and preparation of more detailed cost estimates. However, with the exception of the Lolo to Oxbow reconductoring project , Idaho Power does not consider these transmission upgrades a near-term alternative due to construction lead-time. Alternative 3 - Expand irrigation peak rewards program. Idaho Power is currently planning changes to the Irrigation Peak Rewards Program. The Company anticipates filing those proposed changes with the I PUC later this month. The proposed program modifications are expected to result in an additional 4.5 MW (including losses) of cost-effective load reduction during the Company s summer peak. A revised Demand Credit structure and a reduced horsepower limit are the modifications largely expected to drive the additional load reduction. Under the revised Demand Credit structure , it is expected that approximately 13% of the customers currently IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page participating with a one day Interruption Option will shift to a two or three day Interruption Option. The revised Demand Credit structure and the reduced horsepower limit are also expected to improve customer satisfaction among program participants. In the Company s survey of 2005 program participants , the most frequently recommended improvement to the program was an increase to the Demand Credits. Improvements in customer satisfaction is also anticipated among those customers with cumulative horsepower between 75 and 99 that have wanted to participate in the program in past years , but were not eligible. In addition , the Company is considering a shift in the interruption period from 4:00 p.m. to 8:00 p.m. to 3:00 p.m. to 7:00 p.m. The Company is currently surveying participants concerning their preferences with respect to timing of daily interruption periods. Changing the interruption period may increase program participant satisfaction and possibly increase program participation. It is anticipated that these changes will increase spending on this program by approximately $300 000 per year. Alternative 4 - Advertising messages. No efforts to determine costs. Alternative 5 - Add temporary gensets. No efforts to determine costs. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen , Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 41: Please explain what assumptions the Company is making for the future regarding the Conservation Reserve Enhancement Program (CREP program), through which farmlands will be set aside , and irrigation pumps turned off. Specifically, please describe any assumptions the Company is making regarding decreased peak power requirements as compared to what they would be without the CREP program. Please explain whether these assumptions affected the Company s decisions with regard to the 2005 RFP or (the) Evander Andrews power plant. RESPONSE TO REQUEST NO. 41: For planning purposes, Idaho Power has not incorporated any specific assumptions in the 2006 IRP regarding the Conservation Reserve Enhancement Program (CREP). On January 9 , 2006 , Idaho Power announced that it selected a Siemens Power Generation , Inc. proposal to build a 170-megawatt combustion turbine at the utility s Evander Andrews Power Complex north of Mountain Home, Idaho. CREP was announced four months later in May of 2006. The CREP announcement had no effect on the Company s decision regarding the 2005 RFP or the Evander Andrews plant. In a more recent forecast, Idaho Power has incorporated an annual energy reduction over the next 15 years (2007 through 2021) of approximately 4% because of CREP. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen , Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 42: Please explain why the 2005 RFP did not include a power purchase option. RESPONSE TO REQUEST NO. 42: Idaho Power needs an additional peaking resource internal to its system. If a third party developer builds a generation resource specifically to serve Idaho Power s peaking needs, the developer will likely attempt to recover most , if not all , of the resource s fixed costs and all of the resource s variable costs of operation via the power purchase agreement (PPA), plus a profit. In addition, Idaho Power would likely incur financial costs associated with the debt imputed by rating agencies because of the power purchase agreement. Based on Idaho Power s experience and judgment , in this instance, a PPA is not as cost effective as simply owning the resource. Furthermore , since Idaho Power already has an established combustion turbine facility and experienced personnel , operations and maintenance efficiencies and economies are possible. Another reason a power purchase alternative was not included in the 2005 RFP is the potential restrictions on operational flexibility. A power purchase agreement might impose limitations on Idaho Power s ability to operate the resource whenever necessary to meet system needs. With a utility owned resource, Idaho Power has greater control over these issues. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen , Attorney II , Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 43: Please provide any long-term transmission planning documents the Company has developed that support any claim by the Company that it was planning on building any of the transmission facilities that will be required to bring the proposed Evander Andrews plant output to load regardless of whether the Evander Andrews plant was built. RESPONSE TO REQUEST NO. 43: Idaho Power has made no claim that it was planning on building any of the transmission facilities that will be required to bring the proposed Evander Andrews plant output to load regardless of whether the Evander Andrews plant was built. The transmission facilities are required as a result of the proposal to construct an additional peaking resource at the Evander Andrews Power Complex. Without that proposed new facility, the associated transmission facilities to accommodate that project would not be constructed. As a result , Idaho Power has no documents supporting that claim. The response to this request was prepared by Roger Grim , System Planning Engineer, Idaho Power Company, in consultation with Monica Moen, Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 44: Please clarify whether Idaho Power has a signed contract to receive the natural gas necessary to run the proposed Evander Andrews plant. If , please provide a copy of the contract, and any other documentation or description required to determine the terms of the contract, including duration and price. If not, please describe what arrangements will be necessary to secure the required natural gas. RESPONSE TO REQUEST NO. 44: Idaho Power has credit and contractual enabling agreements in place which provide the Company the flexibility to purchase either physical gas or a financial product to lock in a fixed price for future periods. The Company also has physical transport and storage capabilities which allow Idaho Power to purchase gas on a daily basis at Sumas for delivery to the Evander Andrews power plant. When the decision to hedge and run Evander Andrews is made , Idaho Power will evaluate all economic alternatives and pursue the most cost-effective strategy. Historically, seasonal purchases of gas have been obtained through the solicitation of several gas providers through a written RFP process while daily gas purchases have been obtained at the Sumas daily index price through an ongoing arrangement with a third party. The response to this request was prepared by Dave Churchman Manager, Power Supply Operations , Idaho Power Company, in consultation with Monica Moen , Attorney Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page REQUEST FOR PRODUCTION NO. 45: Please provide any documents or research that Idaho Power has which evaluates or relates to the potential for industrial combined heat and power projects in the Treasure Valley. RESPONSE TO REQUEST NO. 45: Idaho Power has had informal discussions with at least one customer and formal discussions with two customers. Idaho Power considers these discussions and any associated documents confidential customer information. The response to this request was prepared by Karl E. Bokenkamp, General Manager Power Supply Operations and Planning, Idaho Power Company, in consultation with Monica Moen, Attorney II , Idaho Power Company. DATED at Boise , Idaho, this 1ih day of September 2006. (fi. MONICA B. MOEN Attorney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER Page CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 1th day of September 2006 , I served a true and correct copy of the within and foregoing IDAHO POWER COMPANY'S RESPONSE TO THE THIRD PRODUCTION REQUEST OF INDUSTRIAL CUSTOMERS OF IDAHO POWER upon the following named parties by the method indicated below, and addressed to the following: Commission Staff -1L Hand Delivered Donovan Walker US. Mail Deputy Attorney General Overnight Mail Idaho Public Utilities Commission FAX 472 W. Washington (83702)--.2L Email Donovan. walker(g)puc.idaho.gov O. Box 83720 Boise, Idaho 83720-0074 Industrial Customers of Idaho Power Hand Delivered Peter 1. Richardson, Esq.US. Mail Richardson & O'Leary Overnight Mail 515 N. th Street FAX O. Box 7218 Email peter(g)richardsonandolearv.com Boise, Idaho 83702 Don Reading Hand Delivered Ben Johnson Associates -1L US. Mail 6070 Hill Road Overnight Mail Boise, Idaho 83702 FAX Email dreading(g)mindst,:ning.com Monica B. Moen CERTIFICATE OF SERVICE , Page IDAHO POWER COMPANY CASE NO. IPC-O6- FIRST PRODUCTION REQUEST OF INDUSTRIAL CUSTOMERS RESPONSE TO REQUEST NO. 32 CASE NO. IPC-O6- IDAHO POWER CO. RESPONSE TO ICIP' PRODUCTION REQUEST NO. 32 IS A DRAFT COpy OF ITS 2006 IRP , WHICH WAS NOT SCANNED IDAHO POWER COMPANY CASE NO. IPC-O6- THIRD PRODUCTION REQUEST OF INDUSTRIAL CUSTOMERS RESPONSE TO REQUEST NO. 35 Idaho Power Company 2006 DSM Expenditure Budget Idaho and Oregon Territories Preliminary 2006 ktucilQUd et ' , ,:.."".,.,."".. Residential Energy House Calls................................................................. : $ Rebate Advantage................................................................... ENERGY STAR Homes...... ............... ........... ............. .............. AC Cool Credit (KW) 1............................................................ : Weatherization Assistance..... ....... .............. ............................ : Oregon Res. Weatherization 78.............................................. Irrigation Efficiency Rewards.......... .................. .......... ............ ....... ......... : Efficiency Rewards Ag Rep Labor....................................... Peak Rewards (kW)................................................................ : Commercial & Industrial Building Efficiency.................................................................... School Efficiency..................................................................... Industrial Efficiency.................................................................. Oregon Audit Schedule 82....................................................... Other Budget Items NEEA (Idaho) .......................................................................... NEEA (Oregon) ........ ..... ........... ..... ................. ......... """'" ....... EEAG Meetings...................................................................... : Small Project/Education Funds ............................................... DSM Analysis & Accounting ................................................... : Residential Education Initiative ............................................... Commercial Education Initiative ............................................. : Commercial Retrofit ................................................................ Residential Retrofit ................................................................. : Distribution Efficiency Initiative ............................................... : Other Conservation & Renewable Discounts (C&RD ) ........... Solar for Schools..................................................................... : Total Budget ......................................................................: $ 2/2/06 EEAG2006BudgetandGoais dfs 322,891 344 868,130 589,558 1 ,358,493 000 638,648 204,600 393,850 540,661 22,002 728,315 000 976,200 48,892 2,400 25,000 655,852 114 783 35,001 260 921 210,752 20,000 739 40,000 175,032 DS M C o n s o l i d a t e d P e t ... r m a n c e Re p o r t Fo r t h e P e r i o d J a n u a r y t o A p r i l , 2 0 0 6 (3 3 % of y e a r ) YT D Ac t u a l ~: 7 ' ~h . ; ' n ~; ' ,Bu d g e t ;: ~ m e r c i a l Bu i l d i n g E f f i c i e n c y ( N e w C o n s t r u c t i o n ) 11 , 30 ~= f ~ ~i ~ ~: i ~ : " i! ~ 1 i t ;~ J J ' ~!! ; ; \ ~~ i f ' i 1 ' i i y.~ i ;~ ~ : ; ~ ~ :~ ~ / o f/ : 1 ~~ P - ' ~~ t ~ 2~ / Ai d e r Co m m e r c i a l R e t r o f i t (E x i s t i n g C o n s t r u c t i o n ) 0 $ 5 , 44 2 ' $2 6 0 92 1 Ai d e r Or e g o n C o m m e r c i a l A u d i t , S c h . 82 0 6 $0 $6 , O O Q 0 % Al d e r Or e o n S c h o o l E f f i c i e n c 10 ' $7 , 84 6 $ 2 2 , 00 2 36 % Co m m e r c i a l T o t a l 1 2 0 , 57 3 8 2 9 , 58 4 15 % Se c t o r / F u n d i n g Re s i d e n t i a l Ai d e r AC C o o l C r e d i t ( 1 ) , (3 ) SP A En e r g y H o u s e C a l l s Al d e r En e r g y S t a r H o m e s N o r t h w e s t Ai d e r Or e g o n R e s i d e n t i a l W e a t h e r i z a t i o n , S c h . SP A Re b a t e A d v a n t a g e Ai d e r Re s i d e n t i a l R e t r o ( E x i s t i n g C o n s t r u c t i o n ) Al d e r 20 0 5 S a v i n g s W i t h A T w i s t ( 2 ) IP C / S P A We a t h e r i z a t i o n A s s i s t a n c e W A O C Re s i d e n t i a l T o t a l Bu d g e t $5 4 $ ; 6 3 3 ' $1 ; 3 7 8 ; 2 1 1 40 % 87 ; 2 3 7 ~4 3 , 62 7 25 % $1 2 8 , \) 7 6 $a 6 8 . , 15 % $5 , 00 0 $1 0 ; 6 9 2 $6 4 , 34 4 17 % $2 1 0 , 75 2 $3 8 , 73 5 59 0 Ih o m e s f $3 3 9 , 93 6 $1 ; 3 5 8 , 40 0 25 % 15 0 , 31 1 22 8 55 7 27 % 27 2 13 9 27 4 , 29 6 82 8 , 59 1 18 1 , 90 0 50 0 38 2 , 90 5 33 % 13 % 66 , 35 5 17 % 51 2 ; 9 9 7 97 8 . 25 5 10 4 , 04 2 3, 2 7 1 , 00 0 67 2 , 89 6 47 % 71 , 92 5 ii ; O 2 i 20 0 , 00 0 99 6 : 7 0 0 18 % In d u s t r i a l Aid e r ~4 1 ! ~ ~ 50 9 '" 3 7 % $1 , 39 3 , 85 0 21 8 35 9 13 8 % Ai d e r Ir r i g a t i o n E f f i c i e n c y Ir r i q a t i o n P e a k R e w a r d s 1 3 08 4 31 , 00 1 32 , 08 5 Ir r i g a t i o n T o t a l Ot h e r SP A Co m m e r c i a l E d u c a t i o n I n i t i a t i v e Di s t r i b u t i o n E f f i c i e n c y I n i t i a t i v e ( D E I ) Sm a l l P r o j e c V E d u c a t i o n F u n d s No r t h w e s t E n e r g y E f f i c i e n c y A l l i a n c e Ot h e r C & R D Re s i d e n t i a l E d u c a t i o n I n i t i a t i v e So l a r f o r S c h o o l s $3 5 , 00 1 $2 0 , 00 0 $2 5 ; 0 0 0 $1 , 02 5 ' 09 2 $4 2 , 73 9 ' $1 1 4 , 78 3 $4 0 ; 0 0 0 30 2 , 61 5 66 % 46 % 71 % Ald e r Ai d e r Ai d e r SP A SP A SP A Oi i i e r T o t a l 40 % To t a l S e c t o r s Ot h e r I P C F u n d e d P r o j e c t a n d A n a l y s i s L a b o r Mi s c . A c c o u n t i n g E n t r i e s To t a l D S M E x p e n s e 33 , 21 5 3 9 , 50 3 11 , 27 7 , 30 9 2 1 , 20 7 , 59 6 22 % 23 % (1 ) E x p e n s e i n c l u d e s $ 2 8 7 56 1 i n c o r r e c t l y b o o k e d t o p r o g r a m ( r e v e r s a l i n M a y ) (2 ) P r o g r a m b u d g e t e d i n 2 0 0 5 . O n l y 2 0 0 6 a c t i v i t y s h o w n (3 ) K W a c t u a l s d e r i v e d f r o m s u b s c r i b e r s y t d EE A G - J u l y , 2 0 0 6 53 4 26 4 32 0 10 0 1 23 % 33 % 13 % 17 % 11 2 94 i 93 3 30 % 19 % 2'5 2 36 % 31 % . ' En e r g y E f f i c i e n c y A d v i s o r y G r o u p R e p o r t : DS M P r o g r a m P e r f o r m a n c e R e p o r t Fo r t h e P e r i o d J a n u a r y to De c e m b e r , 2 0 0 5 Pr e l i m i n a r y N u m b e r s Pr o g r a m d o l l a r t o t a l s e x c l u d e p r o g r a m s u p p o r t l a b o r Pr o g r a m s i n c l u d e o n l y t h o s e w i t h m e a s u r a b l e kW h ' S a v i n Pe a k k W S a v i n s Se c t o r Pr o g r a m Ac t u a l Ta r g e t Ac t u a l Bu d e t Bu d g e t Ac t u a l Ta r g e t Ta r g e t Ac t u a l Ta r g e t Ta r g e t Re s i d e n t i a l Ri d e r AC C o o l C r e d i t 36 9 00 0 $7 1 8 , 06 4 $6 4 3 , 92 4 11 2 % 74 8 32 0 11 8 % Ri d e r En e r g y S t a r H o m e s N o r t h w e s t 20 3 h o m e s 46 5 h o m e s $2 4 7 07 3 $5 0 6 , 72 4 49 % 42 1 83 4 95 2 92 5 44 % 57 4 31 6 44 % Ri d e r Sa v i n g s w i t h a T w i s t 35 , 00 8 b u l b s 10 8 , 19 3 b u l b s $7 3 , 15 6 33 5 54 8 12 0 , 93 9 11 0 4 % 15 2 . 29 % Ri d e r Or e g o n R e s i d e n t i a l W e a t h e r i z a t i o n , S c h . $3 5 1 $6 , 00 0 39 8 5, 0 0 0 48 % BP A En e r g y H o u s e C a l l s 89 1 83 1 $3 7 5 46 9 $3 9 5 , 26 6 95 % 77 5 , 73 7 33 5 , 63 6 13 3 % 20 3 . 15 2 BP A Re b a t e A d v a n t a g e 14 5 $4 6 , 11 7 $7 6 , 34 6 60 % 31 2 , 31 1 45 9 , 28 7 68 % 36 . BP A / R a t e s We a t h e r i z a t i o n A s s i s t a n c e 59 8 60 0 50 4 , 71 6 64 4 , 00 8 92 % 29 2 , 96 0 45 0 , 00 0 95 % 37 6 . 39 4 Re s i d e n t i a l T o t a l 96 4 , 94 6 27 2 , 26 8 91 % 14 0 , 78 8 32 3 , 78 7 11 3 % 08 9 24 8 96 % Co m m e r c i a l Rid e r Co m m e r c i a l B u i l d i n g E f f i c i e n c y $1 8 6 , 29 4 $3 1 0 , 25 2 60 % 49 8 , 28 9 34 6 , 00 0 14 4 % 16 3 10 0 16 3 % Ri d e r Sc h o o l B u i l d i n g O p e r a t o r T r a i n i n g 75 0 37 5 , 00 0 27 1 Ri d e r Or e g o n C o m m e r c i a l A u d i t , S c h . $2 , 97 5 $6 , 00 0 50 % Ri d e r Or e Q O n S c h o o l E f f i c i e n c v $8 6 Co m m e r c i a l T o t a l 19 1 10 5 31 6 , 25 2 60 % 87 3 28 9 34 6 00 0 83 0 % 43 4 10 0 43 4 % In d u s t r i a l Ri d e r In d u s t r i a l E f f i c i e n c y $1 , 12 7 94 8 $1 , 66 9 , 4 2 2 68 % 12 , 01 6 , 67 8 8, 4 0 0 , 00 0 1 1 4 3 % 1, 4 0 0 20 0 1 1 1 7 % In d u s t r i a l E f f i c i e n c y T o t a l 12 7 94 8 1 , 66 9 , 42 2 68 % 01 6 , 67 8 40 0 , 00 0 14 3 % 40 0 20 0 11 7 % Ir r i g a t i o n 69 9 , ~1 6 0 % Rid e r Ir r i g a t i o n E f f i c i e n c y ( 2 ) 80 s . p ( 2 ) $1 0 3 82 3 $9 3 4 , 50 5 11 % 01 2 88 3 40 1 ~1 4 7 % Rid e r Ir r i Q a t i o n P e a k R e w a r d s 89 4 10 0 0 s , 43 5 , 57 7 $1 , 4 2 4 , 28 0 10 1 % 40 , 32 3 00 0 13 4 % Ir r i g a t i o n T o t a l 93 2 08 0 53 9 , 40 0 35 8 , 78 5 65 % 01 2 88 3 69 9 , 00 0 60 % 40 , 72 4 85 0 13 2 % Ot h e r Rid e r Dis t r i b u t i o n E f f i c i e n c y I n i t i a t i v e ( D E I ) $1 5 , 46 9 $1 0 0 , 00 0 15 % TB D Rid e r Sm a l l P r o j e c t / E d u c a t i o n f u n d s $1 4 89 7 $2 5 , 00 0 60 % 10 0 Rid e r No r t h w e s t E n e r Q V E f f i c i e n c v A l l i a n c e $4 6 4 , 62 8 $4 9 2 32 0 94 % TB D Ot h e r T o t a l 49 4 99 4 61 7 32 0 80 % 64 , 10 0 II P r o g r a m s . k W a v e r a g e ( k W a ) . T a r g e t v a l u e s f o r p e a k h a v e b e e n , de r i v e d f o r c o m p a r i s o n p u r p o s e s (1 ) W e a t h e r i z a t i o n A s s i s t a n c e n u m b e r i n c l u d e s c a r r y o v e r f r o m 2 0 0 4 (2 ) I r r i g a t i o n E f f i c i e n c y R e w a r d s A c t u l s i n c l u d e s $ 3 0 88 1 f r o m I r r i g a t i o n E f f i c i e n c y P r o g r a m Ir r i g a t i o n E f f i c i e n c y P a r t i c i p a n t s a r e m e a s u r e d i n s e r v i c e p o i n t s ( s . 23 , 10 7 73 8 64 7 co m p i l e d J a n 2 0 0 6 , B L S ... DS M R i d e r F u n d s : 59 2 04 9 99 9 , 98 5 $3 , 59 2 03 4 $6 1 2 54 1 61 2 , 52 6 20 4 57 5 59 1 72 0 $6 , 79 6 29 5 EN E R G Y S T A R N e w R e s . Co n s t . $1 8 3 $1 8 3 $3 1 31 7 $3 1 50 0 $3 1 50 0 $2 0 0 , 00 0 $2 3 1 50 0 $8 8 70 0 $8 8 70 0 (a ) $1 9 5 91 3 $1 9 5 91 3 $3 4 08 7 $2 3 0 00 0 $2 3 0 00 0 $4 9 1 30 0 $7 2 1 30 0 (b ) 78 8 78 8 78 8 $7 , 78 8 78 8 $2 3 8 6 7 9 $3 0 5 6 8 3 $5 4 4 36 2 $3 0 5 68 3 $5 4 4 , 36 2 $5 4 4 36 2 $3 7 08 4 $3 7 08 4 $5 0 , 25 0 $8 7 33 4 $8 7 33 4 $8 7 33 4 Co m m e r c i a l E f f i c i e n c P r o r a m s $2 0 0 , 00 0 $2 0 0 , 00 0 $2 0 0 00 0 $5 5 0 , 00 0 $7 5 0 , 00 0 Ai r C a r e + P i l o t $6 1 4 $6 1 4 $2 4 38 6 $2 5 , 00 0 $2 5 00 0 $2 5 00 0 In d u s t r i a l In d u s t r i a l E f f i c i e n c Pr o r a m $1 5 0 , 00 0 $1 5 0 , 00 0 $1 5 0 0 0 0 $5 0 0 0 0 0 $6 5 0 0 0 0 Ir r i g a t i o n 50 3 50 3 $1 9 6 , 4 9 7 $2 0 0 00 0 $2 0 0 00 0 $3 0 0 0 0 0 $5 0 0 00 0 $2 5 0 , 00 0 $2 5 0 00 0 EE A G M e e t i n g s 89 7 48 4 38 0 30 0 78 4 $6 , 68 0 00 0 $1 0 68 0 Ot h e r Sm a l l P r o j e c U E d u c a t i o n F u n d s $1 0 4 50 1 $1 0 4 50 1 $1 0 4 , 50 1 $1 0 3 66 9 $2 0 8 , 17 0 (c ) DS M P e a k R e d u c t i o n S t u d y $7 5 , 00 0 $7 5 00 0 $7 5 00 0 $7 5 , 00 0 DS M A n a l s i s & A c c o u n t i n $1 9 89 4 $1 9 , 89 4 $3 0 10 6 $5 0 , 00 0 $5 0 , 00 0 $1 2 5 00 0 $1 7 5 00 0 To t a l P r o g r a m C o s t s $2 4 0 , 57 6 $5 7 3 14 6 $8 1 3 , 72 2 $8 9 8 , 4 4 4 $1 , 4 7 1 58 9 71 2 , 16 6 61 2 66 9 $4 , 32 4 , 83 5 Ac c o u n t ( 2 5 4 2 0 1 ) B a l a n c e 35 1 , 4 7 3 42 6 84 0 $2 , 77 8 , 31 2 ($ 2 8 5 90 3 ) 14 0 93 7 $2 , 49 2 , 40 9 ($ 2 0 , 94 9 ) $2 , 47 1 , 46 0 (a ) P e n d i n g a p p r o v a l , f u n d i n g f o r t h e A C C y c l i n g O L C S w i t c h P i l o t w i l l c o m e f r o m t h e A C C y c l i n g P i l o t b u d g e t d e s c r i b e d i n n o t e ( b ) . (b ) R e c e i v e d ( P U C o r d e r M a r c h 1 7 . $ 8 1 0 00 0 i s f o r 2 0 0 3 20 0 4 p r o g r a m c o s t s . (c ) S m a l l P r o j e c t ! E d u c a t i o n F u n d i s 4 % o f O S M R e v e n u e ( A c c r u a l s t a r t d a t e o f J a n , 0 1 , 2 0 0 3 ) OS M R i d e r ( a c c o u n t 2 5 4 2 0 1 ) T E T 1 0 / 2 2 / 2 0 0 3 Idaho Power Energy Efficiency Rider Program Activity Actual and Projected for 2004 Year to Date Projected 1 st Quarter Year End 2004 2004 Idaho Ener Efficienc Rider Rider Funding 591 021 $ 2 760 000 enditures Residential ENERGY STAR Homes Northwest 212 245 000 AC Cycling Pilot (Therm. & Switch)053 313 000 Commercial Commercial Efficiency Programs (Proposed)254 000 School Building Operator Training 969 000 Air Care+ Pilot Industrial Industrial Efficiency Program 797 465 000 Irrigation Irrigation Efficiency Program 551 224 000 Irrigation Peak Clipping 519 295 000 Other Programs In Development (Proposed)520 000 DSM Peak Reduction Study 000 Distribution Efficiency Initiative (DEI)125 000 EEAG Meetings 852 000 Small Project! Education Funds 276 000 DSM Analysis & Accounting 126 116 000 Total Expenditures 162,425 $ 2 768 072 Net increase (decrease) in balance 428 595 072) Rider balance at beginning of period $ 3 273 891 $ 3 273 891 Rider balance at end of period $ 3 702,487 $ 3 265 819 IDAHO POWER COMPANY CASE NO. IPC-O6- THIRD PRODUCTION REQUEST OF INDUSTRIAL CUSTOMERS RESPONSE TO REQUEST NO. 37 # '",,"ll) QOCl)W 'C\i '" 'W, 0 Nc:\I(O,...o::tNO ,I.()' '0'1. W o::t O"'t, "'" NC,QN' N'C'?(O;o::tN CO 0 at ,C') ,C')NLc)'~;L&Q)'UfN "'" ~ , ci'O:r~Nd'IJ)""'co.,C~h('lCNc.Q "'"010 C') ,CDM ('\/ r-.c , , 0'1 ('1) "'""'" o::t ""' C'CS.. ~ ~;~,~ ~~ ~ ;...' ' CN ..... N ' C') C,Q CD CD o::t C') N N ..... ' W' 0 ;0 W' 0 0 0 0 0 0 tI)- zt. 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