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HomeMy WebLinkAbout20080730Vol I Status Conference.pdfORIGINAL .BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPROPRIATE DISPOSITION OF IDAHO POWER COMPANY iS S02 EMISSION PROCEEDS TO FUND AN ENERGY EDUCATION PROPOSAL ) ) CASE NO. IPC-E-08-11 ) ) ) STATUS CONFERENCE ) BEFORE COMMISSIONER JIM KEMPTON (Presiding) COMMISSIONER MARSHA SMITH COMMISSIONER MACK REDFORD . DATE:July 16, 2008 PLACE:Commission Hearing Room 472 West Washington Street Boise, Idaho en..J VOLUME I - Pages 1 - 70 .. . CSB REPORTING Constance S. Bucy, CSR No. 187 23876 Applewod Way * Wilder, Idaho 83676 (208) 890-5198 * (208) 337-4807 Email csb~heritagewifi.com . 10 11 12.13 14 15 16 17 18 19 20 21 . 25 1 APPEARANCES 2 3 For the Staff: 4 5 For Idaho Power: 6 7 8 9 For Office of Energy Resources: For State Dept. of Education: For Idaho Energy Education Proj ect: For Idaho Rural Council: For Idaho Conservation League: For Snake River Alliance: For Citizens Protecting Resources: 22 23 Also Present: 24 Mr. Donald Howell Deputy Attorney General 472 West Washington Boise, Idaho 83720-0074 Mr. Barton L. Kline Ms. Theresa Drake Idaho Power Company Post Office Box 70 Boise, Idaho 83707-0070 Mr. Paul Kj ellander Post Office Box 83720 Boise, Idaho 83720-0098 Mr. Tom Luna Post Office Box 82720 Boise, Idaho 83720-0027 Mr. Bill Chisholm 19073 East Highway 30 Buhl, Idaho 83316 Mr. Richard Carlson Post Office Box 21 Filer, Idaho 83328 Ms. Sara Cohen 710 North Sixth Street Boise, Idaho 83702 Mr. Ken Miller 5400 West Franklin Boise, Idaho 83705 Mr. Jim Sylva Post Office Box 115 Hansen, Idaho 83334 Alla Langston CSB REPORTING Wilder, Idaho 83676 APPEARANCES . . 20 21 22 23 24 . 25 1 EXHIBITS PAGE Marked 69 Admitted 69 Marked 69 Admitted 69 2 3 NUMBER DESCRIPTION 4 FOR THE IDAHO ENERGY EDUCATION PROJECT: 5 1 - Think! Energy Idaho, Professional Development Workshop 6 2 - Energy Acti vi ties Guides 7 8 9 10 11 12 13 14 15 16 17 18 19 CSB REPORTING Wilder, Idaho 83676 EXHIBITS .1 BOISE, IDAHO, WEDNESDAY, JULY 16, 2008, 1: 30 P. M. 2 3 4 COMMISSIONER KEMPTON: This is the date, 5 time and place. It is the -- I always have to look at 6 this -- the 16th of July, 2008, and it is the time and 7 place to conduct a status conference on Case No. 8 IPC-E-08-11, more specifically in the matter of the 9 appropriate distribution of Idaho Power Company IS 10 emission proceeds to fund an energy education proposal. 11 On my right is the President of the Idaho 12 PUC, Mack Redford. On my left is Marsha Smith, and just.13 by way of explanation, Marsha is the National Chairman of 14 all of the PUC's in the United States this year and I am 15 the Chairman for this status conference. I'm Jim 16 Kempton. 17 The proceedings in this case are being 18 conducted in accordance with Commission jurisdiction 19 under Title 61 Idaho Code and Commission Rules of 20 Procedure under IDAPA 31.01.01. As I mentioned, the 21 status conference will be recorded and that the 22 appearance of any interested party in attendance before 23 the Commission today is not restricted and there is no 24 designated lead party. The appearances, what I would.25 like for you to do as we go around the room, and I'll CSB REPORTING Wilder, Idaho 83676 1 COLLOQUY . . . 1 start with Don Howell for the Idaho PUC, is to give your 2 name and who you represent and if the recorder needs a 3 spelling on your first or last name, why, we i 11 take a 4 second and do that. Don, if you would lead off. 5 MR. HOWELL: Than k you, Mr. Cha i rman . My 6 name is Don Howell. I i m a Deputy Attorney General 7 representing the Commission Staff in this proceeding. 8 MS. COHEN: Thank you. My name is Sara 9 Cohen. I i m with the Idaho Conservation League. 10 MR. CARLSON: My name is Richard Carlson 11 wi th the Idaho Rural Council. 12 MR. CHISHOLM: My name is Bill Chisholm. 13 I'm the coordinator of the Idaho Energy Education 14 Project. 15 MR. MILLER: My name is Ken Miller. I 1m 16 with the Snake River Alliance. 17 MR. KJELLANDER: Paul Kjellander with the 18 Office of Energy Resources, and also with us is 19 Superintendent Tom Luna, the Superintendent of Public 20 Instruction in support of the proposal that we have 21 today. 22 MS. LANGSTON: I am Alla Langston, A-l~l-a 23 Langston, representing myself. I i ve done a lot of 24 proj ects, conservation proj ects, for private industries, 25 so I i m now curious how it i S done on the state level. CSB REPORTING Wilder, Idaho 83676 2 COLLOQUY . . . 1 MR. LUNA: Tom Luna, State Superintendent 2 of Public Instruction. 3 MR. KLINE: Bart Kline. I'm an attorney 4 appearing on behalf of Idaho Power Company. I i 11 let 5 Theresa introduce herself. 6 MS. DRAKE: I'm Theresa Drake. I 1m 7 manager of our customer relations and energy efficiency 8 department of Idaho Power. 9 COMMISSIONER KEMPTON: And would you give 10 us your name again? I missed it. 11 MS. DRAKE: Theresa Drake, T-h-e-r-e-s-a. 12 COMMISSIONER KEMPTON: Okay, anybody else? 13 Before we actually get going in this, what I want to do 14 is take a minute and go through a brief recap of where 15 we i ve been. We've changed case numbers on this 16 particular case historically, so I want to go back a ways 17 and recap this, if you i 11 bear with me, and I i 11 give you 18 a copy so that you have it. Okay, beginning with Case 19 No. IPC-E-07-18 which was an Idaho power rate case in 20 which the issue of possible distribution of sulfur 21 dioxide funds was discussed in terms of an amount that 22 could be made available for energy education in Idaho 23 schools that are served by Idaho Power and how that 24 program would be established, so in the matter of the 25 appropriate distribution of proceeds for the sale of CSB REPORTING Wilder, Idaho 83676 3 COLLOQUY . . . 1 Idaho Power Company's S02 emissions in CY 2007 which was 2 the official title under Case No. IPC-E-07-18, there was 3 an Order No. 30529 on April 14, 2008 where the Commission 4 addressed the Idaho Energy Education Proj ect proposal to 5 use 500,000 of the proceeds from the Idaho Power sale of 6 S02 allowances for energy education and associated 7 proj ect grants in schools served by Idaho Power Company. 8 Under the IEEP proposal, 250,000 would be dedicated to 9 classroom conservation and efficiency education and the 10 remaining half would be used for grants for renewable and 11 efficiency proj ects in participating schools. 12 The Commission found that classroom 13 instruction on energy conservation efficiency may be in 14 the public interest. No clarification was made regarding 15 the use of the term instruction, but neither should there 16 have been any presumption that the term related to 17 anything other than classroom conservation and efficiency 18 education and/or grants for renewable and efficiency 19 proj ects. 20 IEEP was directed to provide the 21 Commission with additional information regarding its 22 educational proposal such as a syllabus, curriculum, and 23 any arrangements it had made with school districts or 24 state agencies. 25 In the response to Order No. 30529, IEEP CSB REPORTING Wilder, Idaho 83676 4 COLLOQUY . . . 1 addressed both the 250,000 for education and the 250,000 2 for grant proj ects. Idaho Power responded by stating 3 that it would support use of a portion of the S02 4 allowance proceeds for energy efficiency education. 5 There were no other respondents. 6 In Order No. 30557 on 6/2/2008, the 7 Commission determined that additional work needed to be 8 accomplished before any energy-related education proposal 9 or specific projects could be endorsed by the Commission. 10 It was ordered that a status conference be convened in 11 approximately six weeks to allow IEEP and other 12 interested parties to advise Commission on their 13 respecti ve positions. 14 It was further ordered that Case No. 15 IPC-E-07-18 be closed, that new Case No. IPC-E-08-11 be 16 opened, which is the one we i re working under today, and 17 that the Commission would continue to reserve judgment on 18 the appropriate disposition of the 500,000 for energy 19 education purposes in schools served by Idaho Power 20 Company. 21 Under IPC-E-08-11 which I introduced this 22 morning or this afternoon as the first part of this 23 meeting, Order No. 30588 on July 1st, 2008 provided 24 Commission notice of the date, time and place for today's 25 status conference, framed the history of Case No. CSB REPORTING Wilder, Idaho 83676 5 COLLOQUY .1 IPC-E-08-11 in terms of Order Nos. 30529 and 30557 and 2 provided guidance on the purpose and conduct of today' s 3 status conference. 4 Specifically, this status conference is 5 convened with the understanding that IEEP and other 6 interested parties are to advise the Commission of 7 progress in relevant communications and stipulate whether 8 there is, or can be, a consensus organizational structure 9 that will support moving forward with the educational 10 proposal. 11 There is no designated lead party for the 12 status conference, and the Commission continues to.13 reserve judgment on the appropriate distribution of the 14 500,000 for energy education purposes. 15 Well, after setting the stage with that 16 history, I would like to add that it's the first time, to 17 my knowledge at least, that the Commission has moved into 18 an education purpose using funds, ratepayer funds, moved 19 from a rate case into the education process. It is a 20 little new to us, so consequently, the information that 21 you provide today will help us make a decision as to how 22 we move forward in either finally deciding to go forward 23 wi th the 500,000 for education purposes or to back away 24 from it and return the 500,000 to ratepayers..25 Just yesterday we received a proposal from CSB REPORTING Wilder, Idaho 83676 6 COLLOQUY . . . 1 the Office of Energy Resources. Some of you who may be 2 presenting today may not have seen that. I don i t know if 3 it has been provided to others that would be providing 4 testimony. How many have not seen that? 5 MR. CHISHOLM: I saw it today. 6 COMMI S S IONER KEMPTON: Ha ve you seen it 7 today? 8 MR. CHISHOLM: Just this afternoon when I 9 walked in here. 10 COMMISSIONER KEMPTON: Okay, what I'm 11 going to do before I go any further is to take a 12 ten-minute recess. Don, would you pass those out to -- 13 are they on the table over there? 14 MR. HOWELL: Yes, they are. 15 COMMISSIONER KEMPTON: Okay, I'm going to 16 take a ten-minute recess and the purpose is to allow time 17 to efficiently look at that paper so that no one is going 18 into this without having had a chance to review it. We 19 will get back to business at 10 minutes till.20 (Recess. ) 21 COMMISSIONER KEMPTON: If you'll come back 22 to order, the court reporter is now recording, so moving 23 forward, I would like to recommend from the Chair that 24 the presentation order start with IEEP and then probably 25 just go in the order of introductions. As a process, I CSB REPORTING Wilder, Idaho 83676 7 COLLOQUY .1 think it would work well to let whoever is presenting 2 finish a full presentation and then, again, going through 3 the order in which people signed up, we i 11 find if there 4 are any questions they would like to ask. We i 11 go 5 through that, through one complete repetition of 6 everybody here and if there 's additional discussion that 7 needs to take place, we i 11 just do that at the direction 8 of the Chair, so before we begin, are there any other 9 preliminary matters from anybody? 10 Okay, Mr. Chisholm, if you would like to 11 begin with your presentation. 12 MR. CHISHOLM: Mr. Chairman and Members of.13 the Commission, I appreciate the opportunity to be here 14 today and I'd like to start out with one of the 15 statements out of the 2007 energy plan that says in order 16 to protect and enhance Idaho's quality of life, it is 17 incumbent on all citizens to use Idaho i s precious natural 18 resources, including energy, in a wise and responsible 19 manner, and I know no better way to meet that goal than 20 through energy education, because we have to know what 21 the components are of energy, both on its consumption and 22 production side, in order to make wise decisions and I 23 know no better place to do that than in schools and that 24 was one of the reasons why I put the proposal on the.25 table in the first place. CSB REPORTING Wilder, Idaho 83676 8 COLLOQUY . . . 1 First off, I would li ke to note, really, 2 that this is ratepayer money, this portion we're talking 3 about is ratepayer money, and I believe it really is in a 4 sense public interest money. It i S not taxpayer money. 5 It i S not money that belongs to Idaho Power. It is the 6 ratepayer i s money. I believe they have a slightly 7 different interest in some of the energy decisions than 8 Idaho Power would, so I think it 1 S important that they be 9 included in the process. 10 In my original proposal, I asked to 11 propose a partnership that included Idaho Office of 12 Energy Resources, Idaho State Department of Education, 13 Idaho Power and Idaho Energy Education Proj ect to make 14 sure that it had that sort of ratepayer public interest 15 component in it and that's what I see as really is 16 missing. On June 9th, there was a meeting at the Idaho 17 Power headquarters of the Northwest Energy Efficiency 18 Alliance in which there was representatives of utilities 19 and various interests, including the design lab, Idaho 20 Power's efficiency department, different folks, and it 21 came up that you don't have to sell industry any more 22 energy efficiency, they know it. What is lacking is 23 really all the vendors and the technicians. An engineer 24 got up and said what is lacking is we don't really have 25 trained engineers. The architect said we don't really CSB REPORTING Wilder, Idaho 83676 9 COLLOQUY . . 1 have enough qualified lead educated architects and it 2 came up that we really need a K-12 sort of track that 3 will sort of get students interested in energy and move 4 them along and hopefully, move them on into the higher 5 education to make the decision. 6 I did the first soldier school's project 7 in Idaho. I was the coordinator of the first soldier 8 school i s proj ect partnered with Idaho Power and through 9 the green power proj ect and when we had the dedication of 10 that facility, Mark Bowen who is the Idaho vice president 11 of CH2M Hill was at the dedication and he said I would 12 expect I would find my future engineers, you know, coming 13 from a school that has you know, our soldier schools 14 that are thinking outside the box, so there's good reason 15 for the Public Utili ties Commission to be moving into and 16 looking at energy education as an important public 17 interest aspect of how the money, how this money is used 18 and hopefully, how some other future monies is used. 19 So today is the first day I saw what the 20 Idaho Office of Energy with this other partnership minus 21 the Idaho Energy Education proj ect proposed and I think 22 it i s got some serious shortcomings. There iS, like, 23 $160,000 out of $500,000 for administration. I think 24 that's way more than would be necessary. I really.25 foresaw a lot more of that money actually going into, the CSB REPORTING Wilder, Idaho 83676 10 COLLOQUY . . . 1 250,000 of the education component going into, education 2 and more of the $250,000 for student-driven projects. 3 One of the things I did after the 4 invol vement in the council for the soldier school i s 5 proj ect, one of the things -- one of the shortcomings I 6 saw in that particular proj ect was that it was an 7 adult-driven project. We had a good time putting that 8 proj ect together, but we didn't involve the students 9 enough in that proj ect, so it wasn't too long later 10 that -- I worked with Castleford quite a bit, but the 11 superintendent said we've got this greenhouse we got from 12 Albertson's and it i S a really great educational tool, but 13 it's costing us an arm and leg to heat that school and I 14 said okay, we i re going to do it different this time, so I 15 went to the school and one day I taught the students how 16 to assess that greenhouse, you know, where was it losing 17 energy, where you could stop energy loss, where you could 18 get energy sinks, heat sinks into that thing so that we 19 could cut the loss, and then I gave them information 20 where they could do some research and then came back at a 21 place for them to come up with a plan, and part of the 22 process, part of my involvement as an activist, I was 23 involved in a water transfer of (inaudible J and as part 24 of our settlement, I got some money for Castleford 25 School, so the dairy owner and myself signed a letter to CSB REPORTING Wilder, Idaho 83676 11 COLLOQUY . . . 1 the school board and said we want this money to get 2 invested. We don i t want it just merely spent, so that 3 money was then available for the students to implement 4 their plan in saving energy for that proj ect, so that's 5 what I see in terms of how this proj ect would go is that 6 you would train the teachers. You would have curriculum, 7 and then by the proposal put forth by Office of Energy 8 Resources and the Department of Ed, it sounds almost like 9 you have to reinvent the wheel to a certain extent, where 10 on June 9th when the Energy Efficiency Alliance was 11 meeting in Boise, over in Pocatello and Idaho Falls there 12 was an energy training the teachers, Think Energy Idaho 13 Professional Development, teacher training workshop, 14 Idaho, ISU continuing education credits available, energy 15 acti vi ties guides correlated to Idaho content standards 16 for science, technology, math, and social studies, so 17 that says to me that there doesn i t have to be as much 18 money going into administration as there is in this 19 proposal, and so at this juncture, I think that it would 20 really be incumbent upon this proposal to include the 21 Idaho Energy Education Project or some public interest 22 enti ty as a partner in this proj ect so that we could have 23 had the discussion. 24 I invited these people to participate. 25 The Department of Ed and actually Idaho Power both CSB REPORTING Wilder, Idaho 83676 12 COLLOQUY .1 assigned somebody to talk and I met with them and then 2 all of a sudden, for reasons beyond my comprehension, 3 that was pulled out, but we could have been six weeks 4 ahead with this proj ect right now, but I think that it's 5 really important, this proj ect is important. I don't 6 want to see this money just dissipate back into you 7 know, $500,000 back to the ratepayers is not going to be 8 significant, but $500,000 invested in energy education 9 could be very substantial, because you get the kids 10 thinking about energy education, it's going to go back 11 into the community. You're going to have a real impact 12 and I think it i S very, very important that these proj ects.13 heavily involve the students, that they have some 14 ownership, that they go in and they have an opportunity 15 to assess what's happening in their building or some 16 public entity in their community and have ownership in 17 the plan and then have the money there to facilitate that 18 proj ect becoming part of their community, saving energy 19 and saving money in a very important time, saving both, 20 so that's what I have to say for now. 21 I do have a fall-back position in terms of 22 if we can't if these other parties won't cooperate in 23 forming the partnership as I envisioned in the original 24 thing, then I have another al ternati ve as to how this.25 project can move forward with far less cost than $160,000 CSB REPORTING Wilder, Idaho 83676 13 COLLOQUY . . . 1 in administrative costs. 2 COMMISSIONER KEMPTON: Okay, thank you, 3 Mr. Chisholm. Would you provide those Idaho Falls papers 4 that you had for the record? 5 MR. CHISHOLM: I will, yeah. 6 COMMISSIONER KEMPTON: Marsha? 7 COMMISSIONER SMITH: I just had a 8 question. Thank you, Mr. Chisholm. I think it i S an 9 important thing, too, and one of your statements jarred 10 my mind about work force issues, which in the electric 11 industry, work force issues are a very big concern these 12 days. We don i t have enough qualified electrical 13 engineers, the utilities, and I know the Western 14 Electrici ty Coordinating Council which now has to run out 15 of reliability centers are always searching for qualified 16 people, but what it made me wonder is whether K-12 is the 17 right place to put our focus and maybe we'd get there 18 faster in terms of work force issues if we applied this 19 to higher ed and sponsored students to go into 20 engineering, electrical engineering, fields and nuclear 21 engineering fields and the fields where I think we are 22 most lacking right now, so I'd appreciate your response 23 to that. 24 MR. CHISHOLM: Well, I think that seeds 25 need to be planted and it takes some time that if you CSB REPORTING Wilder, Idaho 83676 14 COLLOQUY . . . 1 invested in $500,000 at the top end, it would be more of 2 a bubble, it would be a quick bubble, because it couldn't 3 do the kind of work; whereas, if you invested that money 4 in a longer term process -- I mean, I think both have to 5 happen somehow, but I don't think this $500,000 that 6 we're talking about at this juncture would do as much 7 good up there as it would starting to plant those seeds, 8 because I always look at energy. I started this Energy 9 Education Proj ect sort of as a response to the 10 (inaudible) plant because people were talking about being 11 against this one particular type of energy production and 12 I'm going, you have to talk about the whole issue. You 13 have to talk about the consumption side as well as the 14 production side, that the consumption side, if we're 15 trying to produce this level of consumption, i. e., last 16 week sometime Idaho Power, you know, maxxed out on its 17 peak load higher than it ever had before, so if you have 18 an educated public in terms of energy and really the 19 impacts, then I think that you'll see an impact on this 20 end of the thing and that will affect some of the drive 21 and need on the other side of the equation, so I really 22 see this energy education as a component for balancing 23 the equation and that it's not all a production-oriented 24 discussion, that consumption is as big a player or 25 actually the bigger player in this thing and it i s CSB REPORTING Wilder, Idaho 83676 15 COLLOQUY . . . 1 basically sort of been ignored. 2 COMMISSIONER SMITH: Thank you. 3 COMMISSIONER KEMPTON: Commissioner 4 Redford. 5 COMMISSIONER REDFORD: Yes, I have a 6 couple of questions. In addition to the very laudable 7 accomplishments and goals that you have talked about and 8 understanding that $500,000 in a program like this isn i t 9 that much, we Ire, of course, very interested in not only 10 the way the program will be directed, but also how the 11 proj ect elements will be funded. I've gone through the 12 records before me and have you submitted a pro forma 13 statement as to how this cost will be broken out as to 14 administration, training, so on and so forth? 15 All the things that you've said are great, 16 but I just want to know, at least from my standpoint, how 17 the buck is going to be spent. 18 MR. CHISHOLM: I haven't gotten it, but 19 it's actually in development. I've been talking to the 20 National Energy Foundation. I've been talking to the 21 people about the curriculum, how much the curriculum is 22 going to cost. I mean, basically the National Energy 23 Foundation has curricula that's broken down for the 24 elementary grades, the junior high and the high school 25 grades and those booklets are about $100 a booklet. CSB REPORTING Wilder, Idaho 83676 16 COLLOQUY . . . 1 There's 379 schools in the Idaho Power service area and 2 so I'm in the process of getting that all broken down, 3 but I don't believe that there has to be -- you know, the 4 administrati ve costs have to be as high as is in this 5 other proposal, that I think it can be -- the curriculum 6 is there and there are various teacher associations, the 7 Idaho Environmental Educators Association, there are 8 associations we can plug into, people already moving and 9 have interest in training in that that we can be plugging 10 into, so I think that we can shift more of the money into 11 actually getting to the curriculum and I will present 12 dollars, a dollar summation, to the puc. 13 COMMISSIONER REDFORD:You complained a 14 li ttle bit about the Office of Energy, their 15 administrati ve costs; yet, in your initial statement, you 16 provided that one-third of the cost would go to actually 17 teaching teachers and that's an administrative cost which 18 comes up to about 166,000. 19 MR. CHISHOLM: Well, I don't think 20 training the teachers has to be that much of the money. 21 COMMISSIONER REDFORD: Well, I'm just 22 going by what you said. 23 MR. CHISHOLM: That a third of the 24 200, OOO? 25 COMMISSIONER REDFORD:I thought it was a CSB REPORTING Wilder, Idaho 83676 17 COLLOQUY . . . 1 third of the 500 or is it 250? 2 MR. CHISHOLM: It 1 S a third of the 250,000 3 would go to teacher training, so basically I see the 4 classroom portion, the $250,000 is a classroom, teacher 5 training, curriculum part of the package and then the 6 proj ects, the proj ects themselves, are hopefully out of 7 that. You get teachers and students who are interested, 8 they apply for grants, they do an assessment in their 9 school, they come up with the math, they apply for grants 10 and then that $250,000 that's for proj ects is then 11 granted to the school to implement the project, so that's 12 about $80,000 for the teacher training, and the 13 curriculum figures I've got, you know, getting the 14 booklets and everything is about $40,000. 15 COMMISSIONER REDFORD:Well, in addition 16 to being public employees, we're also business people and 17 I for one could not in good conscious award or direct 18 this money to go anywhere until I have an absolute penny 19 by penny pro forma statement as to where it's going to go 20 and I just can't -- I mean, this overall thing just 21 doesn't do anything for me. 22 MR. CHISHOLM: I concur. I mean, I think 23 what we're talking about is development of a program. In 24 the initial phase, I said I think this money should be 25 invested in energy education and then the next process CSB REPORTING Wilder, Idaho 83676 18 COLLOQUY . . . 1 came down to more detail about how that would happen and 2 if the people I invited to partner would have partnered, 3 i think we would have had at this exact moment, we would 4 have been a little further down the process, but it is 5 coming together and I certainly agree. I think you don't 6 want to say okay, here's a blank check. I mean, okay, 7 I'LL actually move into my al ternati ve thing is that 8 if -- I mean, I think it i S really important that there be 9 a partnership and my preferred partnership would be the 10 original partnership that I proposed and if somehow that 11 didn't happen, then what I would propose is that there be 12 an Idaho energy trust established, something like you 13 have the telecommunications thing for the Universal 14 Service Fund, something like that, that there would be a 15 fund set up that would control that money and that the 16 thing would be -- money would be distributed as, for 17 instance, the curriculum bill comes in and then we go 18 okay, the curriculum has gone out to the school, the 19 letters of invitation have gone out to the school 20 districts, to individual schools, teachers working 21 through the teacher associations, so I see that there is 22 an al ternati ve and I think when you make the decision 23 that you do need to have all the pieces of the puzzle 24 laid before you. 25 COMMISSIONER REDFORD: Right. Well, our CSB REPORTING Wilder, Idaho 83676 19 COLLOQUY . . . 1 Order came out on April 14th and I believe we invited all 2 the participants or anyone to come forward with some sort 3 of a plan and I think this is an important program and 4 speed is a thing that we need to address and it i S been 5 four months now and we haven't received anything. I 6 don i t have anything further. 7 COMMISSIONER KEMPTON: Any other 8 questions? Okay, thank you, Mr. Chisholm. I'm going to 9 reorder slightly from what I said early on the order of 10 presentations. I i m going to get the big four, so to 11 speak. Bill, you've done yours, so Director Kjellander, 12 would you present, please? 13 MR. KJELLANDER: Thank you, Mr. Chairman 14 and Members of the Commission. I appreciate the 15 opportuni ty to meet before you today. First of all, I do 16 appreciate the enthusiasm that was exhibited by the 17 previous presenter, and I also recognize that without 18 having knowledge of the presentation prior to today, it's 19 very difficult for him to provide an analysis of what it 20 does or doesn i t do, but with regard to questions or 21 concerns about the Office of Energy Resources and its 22 involvement in this case, I think I'd like to just 23 clarify that up front before I move forward with the 24 specifics of the proposal. 25 The OER was not a party to the original CSB REPORTING Wilder, Idaho 83676 20 COLLOQUY . . . 1 S02 case as an intervenor and, quite realistically, if we 2 look at the order that created the OER, there would be no 3 reason for the OER to have played that role, so when this 4 grew out of that specific case and we received an inquiry 5 from someone who was involved in another modified 6 procedure, it seemed fairly inappropriate for the Office 7 of Energy Resources to engage itself and interfere in a 8 matter before the Public Utilities Commission, because, 9 in essence, being the Governor's Office of Energy 10 Resources, that would be equivalent to the Governor 11 coming in and then being engaged in a process where it 12 wasn i t invited. 13 We do believe, however, that the Order 14 that created this status conference workshop opened that 15 door for us and at that point, then we began to develop a 16 partnership with both Idaho Power and with the 17 Superintendent of Public Instruction for the Department 18 of Education to present a program and project proposal 19 that we fully believe meets the intent of the orders that 20 we reviewed in relationship to the S02 case, which was 21 the origins of the half million dollars that are in 22 question today, so with that said, then, I would like to 23 move forward with at least the proposal that we have here 24 today and afford an opportunity for some of the other 25 parties that are involved with our proposal to comment as CSB REPORTING Wilder, Idaho 83676 21 COLLOQUY . . . 1 they see fit in relationship to support for this specific 2 venture. 3 What we have in front of you is a very 4 short proposal, including a brief budget outline, that is 5 created with the intent that the Idaho Office of Energy 6 Resources would be the lead agency in a proj ect going 7 forward. What we believe we have is a good relationship 8 and partnership now with Idaho Power Company and with the 9 Idaho Department of Education which provides a level of 10 establishing accountability which we believe is essential 11 to ensuring the revenues of this proj ect are used for the 12 intended purpose and can withstand any audit review. The 13 Department of Education and the Office of Energy 14 Resources are fully subj ect to audits from the state 15 level, so any proj ect, any funding we had would go 16 through that full scrutiny, similarly to the way in which 17 the Idaho Public Utilities Commission is engaged in audit 18 review. 19 Outside of that, with Idaho Power 20 Company's involvement here, clearly, not only do they 21 have independent audits in relationship to their business 22 environment, but also through the oversight that the 23 Commission brings to the table, so we do believe that 24 this collaborative effort will provide the certainty that 25 I believe has been articulated that the Commission would CSB REPORTING Wilder, Idaho 83676 22 COLLOQUY . . . 1 like to see with regards to the fair and reasonable and 2 just use of those funds for the intended purposes 3 outlined. 4 Specifically, this proposal establishes 5 the OER as the lead agency for an energy education 6 project and intends to utilize the S02 proceeds of half a 7 million dollars that were referenced in Case No. 8 IPC-E-08-11. The project has two main thrusts: an 9 energy efficiency curriculum component and an enhanced 10 energy efficiency funding element. Both efforts we 11 believe are consistent with the scope of the IPUC IS 12 recent orders. 13 As a brief overview, the energy efficiency 14 curriculum component has two distinct phases. The first 15 phase identifies teachers who will work with the 16 Department of Education to identify a curriculum, adjust 17 it to meet Idaho's needs, and utilize it in the 18 classroom. It i s the intent to look at existing 19 curriculum without having to reinvent the wheel and to 20 adapt that to meet the Idaho standards that the 21 Department of Education could outline more fully in 22 reference to the fact that not all curriculum is created 23 that will meet the standards for the State of Idaho, so 24 there would be the need for some adaptation. 25 Under the first stage of the curriculum CSB REPORTING Wilder, Idaho 83676 23 COLLOQUY .1 development component, they would identify the actual age 2 group in which they would move forward with this 3 curriculum, identify the curriculum, and then identify 4 two teachers that would be used to help develop the 5 curriculum, adapt it and then utilize it in the classroom 6 so that we can gain more firsthand information and 7 understand what further needs to be adapted in 8 relationship to that curriculum. From that point, then, 9 the knowledge gained from that first initial phase of the 10 pilot proj ect would be used to help adapt the 11 train-the-trainer component. 12 The train-the-trainer component is.13 outlined in the proposal we have. It's an established 14 element in many education curriculum developments and is 15 used throughout the nation. More information could be 16 provided on that by the Superintendent of Public 17 Instruction if you so choose to have more detail, so at 18 that point, then, we would have teachers that would be 19 trained to use a curriculum. Without that training 20 component, a curriculum is of no value. A curriculum by 21 itself without trained educators who know how to utilize 22 it simply will have no benefit in the classroom, so 23 that's why that is such a key component moving forward, 24 and, again, that would focus in large part on energy.25 efficiency. CSB REPORTING Wilder, Idaho 83676 24 COLLOQUY . . . 1 The second piece of the proposal looks 2 more fully at trying to develop a direct cash incentive 3 that would be on top of those incentives already 4 available to schools through Idaho Power Company. We 5 look at a target amount of about $185,000 that, again, 6 could be used for additional incentives. In talking with 7 schools, the Superintendent of Education and others 8 invol ved directly with schools, the biggest problem they 9 have with deploying energy efficiency and even trying to 10 take advantage of some of those incentives that exist 11 today is the lack of capital and without additional 12 capi tal, the cost effectiveness of it simply isn't wi thin 13 their budgets and trying to find that money is a 14 difficul t venture, so an additional incentive could 15 certainly help kick start some of the incentive packets 16 that are already there and immediately begin to deploy 17 more energy efficiency in schools wi thin Idaho Power IS 18 service terri tory, and, again, since this money was 19 generated through S02 funds directly tied to Idaho Power 20 Company i s terri tory, the proj ect scope for this venture 21 would be limited to Idaho Power's territory. 22 That said, we would hope that we could 23 come up with a model that may well be utilized should any 24 other funding come forward to look not just at Idaho 25 Power i S terri tory in the future, but look at Avista and CSB REPORTING Wilder, Idaho 83676 25 COLLOQUY . . . 1 Rocky Mountain Power as well as potentially with some of 2 the publics and munis that exist wi thin the state. We 3 believe that we could come with up with a model that is 4 extraordinary and would indeed be with the intent of the 5 orders that were issued by the Idaho Public Utilities 6 Commission. 7 As a final point, when we look at the 8 marketing component and the cash that is set aside for 9 that, we then met with Idaho Power again to talk about 10 their Idaho Power Solar 4R Schools venture, and we met 11 with Boise State University in relationship to their wind 12 for schools project and while we don't identify specific 13 money for those proj ects to try to deploy them in the 14 schools, we do think that if we have some money for 15 marketing to reach those schools that we ought to find 16 many of the other projects that exist like that within 17 their service terri tory included in that marketing 18 program so that schools have better access to knowing 19 what is available and we certainly would want to get the 20 biggest bank for the buck as we move forward with this 21 venture, so, again, I think what we bring to the table 22 today is an established relationship with educators who 23 understand the Idaho education system, with the utility 24 and with the Office of Energy Resources who already has 25 contacts with the schools in relationship to energy CSB REPORTING Wilder, Idaho 83676 26 COLLOQUY . . . 1 efficiency, and we also bring an added layer of 2 accountabili ty that I believe is needed and required to 3 serve in the public interest as it relates to the 4 deployment of funds identified in this proj ect. 5 COMMISSIONER KEMPTON: Thank you, Director 6 Kj ellander. I have some questions. Actually, they 7 will -- they're addressed to you at this point in time, 8 but they'll also migrate downstream to the following 9 presenters as well. I think Mr. Chisholm brought up a 10 real good point in the costs associated with some of this 11 and, for example, without going into detail right now, 12 but just as a surface observation, in the administration 13 side with .80 FTE for two years, that i s 1,664 hours per 14 .80 FTE and apparently, there's just one here, but it's 15 for two years. One has to ask exactly how a person would 16 be used like that and how much of that money could be 17 conserved if as a matter of fact the administration cost 18 wasn't that high. There i s also a term train-the-trainer 19 models utilize curriculum coordinators to both train and 20 support educators, and I guess my question is what would 21 a curriculum coordinator know about energy efficiency 22 programs and how would he pass on that knowledge in 23 training and supporting educators? I mean, the language 24 is there, but I don't see a curriculum coordinator 25 necessarily being an expert or having the knowledge that CSB REPORTING Wilder, Idaho 83676 27 COLLOQUY . . . 1 it would take to move forward and train and support 2 educators. 3 The 500,000 in my mind is not something 4 that should be used to supplant the education budget and 5 so I'm looking forward to Superintendent Luna 's 6 presentation in a minute, because I would like to know 7 what kind of an interface you intend in what you 8 presented here in moving from a curriculum which 9 apparently can be developed with the assistance of 10 outside programs, the National Energy Foundation, NEEA, 11 others, where I don i t think that we necessarily need to, 12 as has been mentioned before, reinvent the wheel if those 13 things are already there, there are core classrooms that 14 you need to adapt them to the Idaho way of doing 15 business. I'm not so sure that the presentation so far 16 has been convincing that we really are looking at the 17 efficiencies that outside organizations may already have 18 in place and could be adopted and thereby reducing some 19 of the costs in the program. 20 On the one hand, half a million dollars is 21 qui te a bit of money. On the other hand, when you get to 22 expending it, it can go out the window really fast and I 23 know we preach on that, it's just that it's not a whole 24 lot of money and there's no provision for recurring 25 dollars, so consequently, it's a one-time thing and what CSB REPORTING Wilder, Idaho 83676 28 COLLOQUY . . . 1 you're left with when the money is gone is the basis for 2 the program from that point forward and you would hope 3 that it doesn It just simply stop there because we haven i t 4 built the inertia and the momentum to move that forward. 5 I think rather than developing more 6 questions along that same line, I would simply ask two 7 questions. No.1, do you see an ability in using the 8 organizations that you have brought together in your 9 proposal and hopefully, input from IEEP because I don i t 10 think in this case that the experience of others that 11 have participated in these kinds of programs should be 12 lost to discussions among all the relevant parties who 13 are interested in the potential for the $500,000, so 14 that i s the first question. 15 The second question is if you have the 16 organizational structure to do this, can we put it 17 together in a time period that will allow it to be 18 implemented without going clear over into 2009 before you 19 see anything going on in the classrooms? 20 MR. KJELLANDER: Mr. Chairman, I i 11 take 21 the last question first and again, I'll allow 22 Superintendent Luna to elaborate as he'd like to. In 23 looking at curriculum development, the reality of that is 24 unless you have people trained and ready to roll in how 25 to use the curriculum, the curriculum identified if CSB REPORTING Wilder, Idaho 83676 29 COLLOQUY . . . 1 modified to meet Idaho standards, you can't use it in the 2 classroom in an effective way unless you find the 3 appropriate incentives as well to get the teachers there 4 and to make sure that the schools are motivated to 5 utilize it, it simply won't get utilized and so we need 6 to make sure that the time is right and that the material 7 is appropriate and makes sense going forward. 8 What we don i t want is a failed proj ect in 9 the area of the energy education component. The energy 10 efficiency component is one we i re looking at as one year 11 because that's something we get out there and get it done 12 now and have direct results to report back, but the 13 curriculum piece of it isn't something you just throw 14 together and quite realistically, when you look at the 15 type of training that needs to go in for instructors to 16 use that, you can't really put it together in that quick 17 time line. Even if a plan had been proposed in April of 18 this year that was fully funded, I think that the time 19 line to even try and get a curriculum identified and 20 modified with the intent that you could use it by the 21 beginning of January would be aggressive and perhaps 22 impossible, but I'll leave the remainder of any comments 23 in association with that to someone who is far better at 24 understanding the needs of education and teachers and the 25 classrooms than myself. CSB REPORTING Wilder, Idaho 83676 30 COLLOQUY . . . 1 COMMISSIONER KEMPTON: Okay, Commissioner 2 Smith. 3 COMMISSIONER SMITH: Thank you so much. I 4 want to talk a minute about the portion for the 5 efficiency project and let 1 s see, I noticed that in the 6 IEEP' s response that was filed with the Commission on 7 April 28th, they had suggested that the proj ect monies 8 could be used either in participating schools or in some 9 project in the local community that was in need of such a 10 project, so I wondered under your proposal, is there any 11 flexibility to use it for anything other than a school 12 building? 13 MR. KJELLANDER: Mr. Chairman and 14 Commissioner, at this point we were looking primarily at 15 schools to be the beneficiaries of this proj ect since it 16 was an education piece. Just to kind of illustrate a few 17 points that we heard from some of the Governor's 18 Capital-for a-Day event, when educators there come to 19 talk about the problems they're facing, they know that 20 they need to do energy efficiency. They know that they 21 need to help reduce their bills and they i ve seen what i s 22 happened to them in the way of transportation costs, but 23 the reality is that they just don i t have the capital to 24 match projects or to even put up their share for some of 25 the existing incentives, so we thought with this specific CSB REPORTING Wilder, Idaho 83676 31 COLLOQUY . . . 1 proposal that this was a tremendous avenue and 2 opportuni ty to aggressively pursue energy efficiency in 3 those school buildings and to leverage some of this 4 addi tional cash incentives, some of the existing cash 5 incentives that exist through Idaho Power Company with 6 the belief that we could help bust down some of those 7 barriers with access to this funding and genuinely get 8 the kind of energy efficiency we all want to get, which 9 is that which is immediate, quick and cost effective and 10 ul timately helps us look at potentially having some 11 non-wire alternatives as being a result of those efforts 12 and so that i s why we targeted the schools because we 13 think it's an opportunity, too, to begin talking about 14 some of the other potential opportunities for schools 15 once they get hooked. 16 There i s going to be a big proj ect that is 17 going to be a ribbon cutting next week in Caldwell with 18 some performance contracting they did there for public 19 schools in energy efficiency that our office was involved 20 with. We i re always involved with schools in trying to 21 work with them in relationship to deploy energy 22 efficiency in the most cost effective manner to live 23 within their own budgets. This could be another avenue 24 to get into that forum and talk more about some of those 25 other options so that when they get hooked on the reality CSB REPORTING Wilder, Idaho 83676 32 COLLOQUY . . . 1 that energy efficiency really can mean cost savings for 2 them or at least an ability to contain those rising costs 3 that we all know are coming down the horizon that we have 4 a group of people that now can look to us in a sense of 5 some additional credibility and trust going forward. 6 COMMISSIONER SMITH: So that was a no? 7 MR. KJELLANDER: Okay. 8 COMMISSIONER SMITH: With regard to the 9 educational part of the proj ect, I need clarification. I 10 got confused. In your proposal, you talk about the 11 National Energy Education Development or NEED project and 12 when Mr. Chisholm spoke, he spoke about the Idaho Energy 13 Education Proj ect. Is the Idaho Energy Education 14 Proj ect, is that the same -- and the National Energy 15 Foundation, are these like three different organizations 16 and entities that pass like ships in the night doing 17 similar things but never really coordinating and, if so, 18 what i s the best one to get on board with? 19 MR. KJELLANDER: Commissioner, that i s 20 really the intent of this phase of the project is to 21 identify which one makes the most sense and that we can 22 pull up and adapt the easiest for Idaho. It i S a lot like 23 many of the organizations that exist within the 24 regulatory front, all the acronyms that are out there. 25 Many of them end up doing the same thing and wouldn i tit CSB REPORTING Wilder, Idaho 83676 33 COLLOQUY . . 1 be nice for someone to assess which one really was the 2 best and which one you wanted to get behind and work 3 forward with and that i s what we intend to do with this is 4 go through and evaluate some of those. 5 That i s why this first phase, to pull two 6 teachers in to help us identify that curriculum and then 7 to actually use it in the classroom, I think, is 8 extraordinarily significant before we move to that next 9 training component with a broader number of educators is 10 to clearly get to that issue, because there i s a lot out 11 there. There may be the potential to meld some of them. 12 There may be an ability to take one off and use it just 13 as is, but we need to do some additional evaluation, 14 because when you talk to the people that are marketing 15 them, it's their business, of course, everyone has the 16 best, we'd like to weed through that and through Scott 17 Smi th, I i 11 refer to him as the science guy at the 18 Department of Education, we i ve already got a tremendous 19 level of expertise through him to help us get into that 20 and assess that very issue in much more granularity. 21 COMMISSIONER SMITH: And finally, if I 22 could do one more, I have the same question to you as I 23 gave to Mr. Chisholm, if our work force issues are 24 imminent, which they are given, I think, maybe up to 40.25 percent of the trained people in this industry are going CSB REPORTING Wilder, Idaho 83676 34 COLLOQUY . . . 1 to retire in the next five to ten years, would we be 2 better looking at higher education as opposed to K-12? 3 MR. KJELLANDER: Madam Chairman and 4 Members of the Commission, I mean, we talk about the 5 graying work force, I hate to look in the mirror in the 6 morning because I see it. The effort with education can 7 go a lot of different directions and with the amount of 8 money here, I think we have to realistically look at what 9 could be done. Certainly, there could be a target to 10 higher ed. There are people already working on that. In 11 fact, we i ve begun working directly with a small business 12 center over at Boise State Uni versi ty to look at a 13 combined grant project that would actually create from 14 their pool of students a group of people who can actually 15 go out to do energy efficiency audits in buildings and so 16 those efforts are occurring, but we look at the long 17 term, I think if we can get in and touch the hearts and 18 minds of those young people, and in my perspective and 19 granted, we haven i t targeted an age group yet, I 1m 20 looking at fourth, fifth and sixth graders and get them 21 exci ted about the fact that there could be careers in 22 energy. 23 By the time I was in college, I kind of 24 already knew what direction I wanted to go and what 25 directions I wasn't going to consider, but when I was CSB REPORTING Wilder, Idaho 83676 35 COLLOQUY .1 younger, that i s when I formulated those ideas and I 2 think, again, if we can get and inculcate into the young 3 hearts a desire to move into that direction, that might 4 be a great place to be instead of waiting until maybe 5 they i ve already made their decision going forward. 6 COMMISSIONER KEMPTON: Director 7 Kj ellander, another question because maybe we're getting 8 a distinction in what we i re actually looking at in terms 9 of "education" and what I i m speaking to specifically is 10 the distinction between education for school building 11 conservation and efficiency and K-12 education for future 12 knowledge in an energy constrained world. I mean,.13 there's two separate things here. One is the K-12 level 14 as a pure education process that leads on into their 15 future lives and their knowledge of what's going on now 16 and the other is to build efficiencies into school 17 buildings that currently exist or we i re talking about 18 going as far as building standards what would be used in 19 future construction, so is there a division in terms of 20 the proposal that you made here? Are you separating it 21 into roughly those two kinds of categories or are you 22 not? 23 MR. KJELLANDER: Mr. Chairman, if we look 24 purely on the focus of education, there is clearly a.25 classroom education piece and then there i s actually that CSB REPORTING Wilder, Idaho 83676 36 COLLOQUY . . . 1 educating the educators from the energy efficiency side 2 and the administrators of those school buildings; letting 3 them know what i s out there today that they need to be 4 taking advantage of and what better way than to help 5 introduce them to those incentives that are there and 6 actually help them deploy that in their schools so that 7 when they go to their patrons for that next bonding issue 8 down the road and need to get a building, there i s no 9 question as to whether or not they're going to be 10 building energy efficient buildings. That i s going to be 11 a piece of it. They're going to be sold on it and that 12 piece of education, I think, can be a huge part of this. 13 Once they recognize the value of it, there won i t be the 14 need to pass legislation down the road that mandates that 15 they utilize a certain standard in going forward. It 16 will be a cost effective thing that they're aware of 17 because they i ve been educated through this process, so I 18 see those as being two very distinct, different types of 19 educational components but certainly very related and, 20 again, very rooted in the essence of what education is. 21 COMMISSIONER KEMPTON: Commissioner 22 Redford. 23 COMMISSIONER REDFORD: Again, we only have 24 $500,000 and we all I'm sure agree that that's not an end 25 to all ends as far as education and so on. What I 'm CSB REPORTING Wilder, Idaho 83676 37 COLLOQUY . . . 1 hearing you say, and correct me, please, if I'm wrong, is 2 that this is really seed money to get curriculums 3 established to go out through the state, to make sure 4 that the teachers have utilization of a curriculum and to 5 the extent the monies we can offer to begin the program 6 of teaching the students at a certain level and you 're 7 not suggesting, are you, that we go out and start 8 programs and projects and all those various things, that 9 this is really a seed, a dollar one type of program and 10 one that, frankly, I hope that i s what you're saying. 11 MR. KJELLANDER: Mr. Chairman and 12 Commissioner Redford, the answer is yes. I'm learning 13 from Commissioner Smith, yes. 14 COMMISSIONER REDFORD: Thank you. 15 COMMISSIONER KEMPTON: If there i s no 16 objection, I'm going to do this a little differently. 17 Instead of questions at this point other than what the 18 Commission has asked, I i m going to go to the other two 19 presenters so that we i ve got a solid base of people 20 presenting and then we i 11 come back in with the questions 21 so that we can direct them, because we i re getting 22 piecemeal questions coming in to individual presenters 23 and we probably need the whole schmeer out here to see 24 where we are. 25 Superintendent Luna, would you present, CSB REPORTING Wilder, Idaho 83676 38 COLLOQUY . . . 1 please? 2 MR. LUNA: Thank you, Mr. Chairman and 3 Members of the Commission, I suspect if we could just 4 learn to harness the energy of our first and second 5 graders we wouldn i t have this issue before us today, but 6 we have yet been unable to do that. I want to thank you 7 for giving me the opportunity to be here today and to 8 speak to you a bit about the importance of increasing 9 energy efficiency programs in our schools and 10 implementing energy efficiency curriculum that will teach 11 Idaho students how to be wise stewards of energy and wise 12 consumers of our precious energy resources. This is a 13 timely discussion. Having attended some of the 14 Governor's Capi tal-for-a-Day and being in schools for 15 those meetings, we i ve had superintendents and other 16 school administrators stand up and talk about the 17 increased cost of energy and what that's doing to their 18 precious education dollars and so this is timely. 19 This program that i s been developed with 20 the Idaho Office of Energy Resources and Idaho Power 21 Company will assist our schools in the short term and the 22 long term. $500,000 is a lot of money, but it is a 23 finite amount of money and so it's important that we 24 focus those dollars in the best way to make sure that we 25 get the best return on that expenditure and that CSB REPORTING Wilder, Idaho 83676 39 COLLOQUY . . . 1 investment. In the short term, the program will help 2 save our schools money, there iS just no doubt. Education 3 dollars are precious and when I travel across the state, 4 I hear from people on both sides of the political aisle 5 and from all walks of life that believe that education 6 should be adequately funded, but I hear very few people 7 say we i re not spending enough money on energy, we're not 8 spending enough money on administration or we're not 9 spending enough money on bussing or transportation. What 10 they're saying is we're not spending enough money in the 11 classroom and I agree with them. 12 What this proposal would do would help 13 free up precious education dollars that are being spent 14 outside the classroom and make them available to be spent 15 in the classroom on important tools for education, things 16 like textbooks, classroom supplies and materials, 17 remediation for students who struggle, opportunities for 18 those students who are advanced. Every dollar that we 19 spend outside of the classroom is obviously $1.00 that is 20 not being spent on those important needs and so this is a 21 program that is a great way for us as a state to increase 22 the awareness of the incentive programs that schools have 23 available to them and also great ways for our schools to 24 learn the simple, best practices for conserving energy, 25 as simply as turning off their computers at night. CSB REPORTING Wilder, Idaho 83676 40 COLLOQUY . . . 1 At one of the schools we were visiting, 2 Paul took the opportunity to explain to them the money 3 they could save by putting an apparatus on each one of 4 their vending machines. These kinds of energy saving 5 ideas in the short term will be an immediate benefit to 6 our schools. In the long term, Idaho students will 7 ul timately benefit. Not only will this program have 8 schools dedicate more money to the classroom where it i s 9 needed the most, but this program also has an educational 10 component that will teach Idaho students important 11 lessons about energy efficiency. 12 My staff at the State Department of 13 Education will work with the Office of Energy Resources 14 and the Idaho Power Company to develop a curriculum that 15 meets Idaho content standards and teaches students the 16 importance of conserving energy, and why is this an 17 important lesson for students? Because if we teach 18 students at an early age, they will not struggle to 19 conserve energy later in life. It will be natural to 20 them. An example I would ask you to consider is that of 21 seat belts. It took about a generation, but because of 22 the focus of using seat belts, we have raised a 23 generation of children and now teenagers and moving into 24 adulthood that it's just second nature for them to use a 25 seat belt. I'm not there yet and so I'm reminded by my CSB REPORTING Wilder, Idaho 83676 41 COLLOQUY . . . 1 kids and grandkids to put on my seat belt, but because 2 we've educated a generation in the wise use of seat 3 bel ts, it's second nature to them and that's the 4 long-term value of this. 5 Now, the other benefit long term to 6 children that's been addressed here is it will open up 7 the world of energy to them and as we struggle to help 8 students see the relevance of math and science when they 9 get into middle school and high school, opening up the 10 world of energy to them, they will begin to realize the 11 relevance of the math and science they're learning and it 12 will encourage many of them to become more proficient in 13 those subj ect matters so that when they get to college, 14 Commissioner Smith, they i 11 have the skills to pursue 15 that career. Today too many of our students graduate 16 from high school and even if they were to choose once 17 they get about college to pursue a career in energy, 18 unfortunately, too many of them do not have the science 19 and math skills to take advantage of that desire. 20 I'll also remind you, I guess you know 21 this, but I'll just state that the ratepayers are also 22 the beneficiaries of this proposal, because they are the 23 same ones who fund our schools on a daily basis and the 24 more efficient use of tax dollars in our schools is more 25 efficient use of ratepayers i dollars that they're either CSB REPORTING Wilder, Idaho 83676 42 COLLOQUY . . . 1 paying in energy costs or to fund our schools. 2 We have developed a plan to develop this 3 curriculum through the 2008-2009 school year so that it 4 will then be implemented in 2010. That's a time line 5 that we've stated, but if the desire is there, I'm 6 convinced it's a time line that can be moved if that's 7 the desire in order to get this curriculum into the 8 schools. January would be very difficult, Mr. Chairman, 9 but it's not out of reason in my mind to think that we 10 could have something going by the beginning of the 11 following school year or the 2009 school year. 12 I'm confident that this program will make 13 a great difference in schools throughout Idaho and 14 develop a model that will encourage more public utility 15 companies to get involved in public education in a 16 similar way and so I urge your expeditious support of 17 this program which will incentivize our schools to save 18 money at the administrative level and teach our children 19 how they can become more energy efficient throughout 20 their lifetime. Thank you. 21 COMMISSIONER KEMPTON: Thank you, 22 Superintendent Luna. 23 Mr. Kline, Idaho Power. 24 MR. KLINE: Thank you, Mr. Chairman. 25 We're not going to make a prepared statement today. I CSB REPORTING Wilder, Idaho 83676 43 COLLOQUY . . . 1 think Idaho Power views its role in this process as being 2 a supporting role. To the extent that the Commission 3 provides us with some direction as to how we should go, 4 that's certainly what we will support. That being said, 5 as you probably know, I'll say it again, I'm sure you 6 already know it, Idaho Power does have a number of 7 programs that it i S currently operating in the schools and 8 as part of the education process. We do have employees 9 that go to the schools, that make presentations in the 10 classroom regarding utility matters, safety, generation, 11 and they also talk about energy efficiency as a part of 12 those presentations. 13 We also, of course, provide energy 14 efficiency programs that schools can take advantage of to 15 increase the efficiency of schools, and based on our 16 discussions with the Office of Energy Resources, I think 17 Idaho Power is very comfortable that what we are 18 currently doing will fit very well with the goals that we 19 have discussed with the Office of Energy Resources and 20 we're very comfortable that the Office of Energy 21 Resources can provide the coordination, I think, that we 22 need to dovetail what we i re currently doing, the programs 23 that we're currently operating, with what others are 24 doing and hopefully, that coordination can make it more 25 efficient and economically beneficial for everyone. CSB REPORTING Wilder, Idaho 83676 44 COLLOQUY . . . 1 Certainly, we're available to answer any 2 questions that the Commissioners may have regarding what 3 role we might play. 4 COMMISSIONER KEMPTON: Mr. Kline, the 5 programs that you have are very good programs and in this 6 coordination process, would you see your involvement in 7 defining the curriculum and input from Idaho Power into 8 that curriculum process so that perhaps some of your 9 programs could actually be expanded where they would 10 appear to be more efficient or to be addressing the needs 11 of the students K-12? 12 MR. KLINE: Well, certainly Idaho Power is 13 an electric utility. We're not a school, we're not 14 teachers, but to the extent that we can provide perhaps 15 expertise, perhaps resources, those are the kinds of 16 things that we see that Idaho Power would bring to a 17 program like this one. 18 COMMISSIONER KEMPTON: You have a working 19 program right now that already is in the school and has 20 merit because it is there and it is obviously providing 21 some benefit or the schools would have rejected them and 22 so it would look to me like that it would be advantageous 23 for Idaho Power to be at least a part of the planning 24 process in the curriculum. 25 MR. KLINE: Following the lead of Mr. CSB REPORTING Wilder, Idaho 83676 45 COLLOQUY .1 Kjellander, the answer is yes. 2 COMMI S S IONER KEMPTON: Than k you. 3 Commissioner Smith? Commissioner Redford? 4 COMMISSIONER REDFORD: No questions. 5 COMMISSIONER KEMPTON: I'm going to go 6 through the list so that we can get everybody on board. 7 If you have a question at the time you're doing your 8 presentation for any of the panelists, simply indicate as 9 you're going through your presentation that you have that 10 question and who you would like to address it to, and as 11 soon as you've finished presenting, we'll have your 12 question addressed, so Ms. Sara Cohen..13 MS. COHEN: Thank you, Commissioners. I 14 actually do not have a presentation, but I do have a 15 question. If I may, I'd like to address it to whoever, 16 I'll put it on the table. On Task 2 in the proposal that 17 was presented by Mr. Kj ellander, it discusses the energy 18 efficiency proj ects in relation to the schools 19 themselves. Mr. Luna mentioned that this would also 20 include identifying areas in which the schools can 21 increase their energy efficiency on the ground; in other 22 words, turning off lights, turning off computers and that 23 sorts of thing , although I don't see that necessarily 24 described in this proposal and I do think if you'll.25 pardon the adage, it's kind of a give a man a fish, you CSB REPORTING Wilder, Idaho 83676 46 COLLOQUY . . . 1 feed him for a day, you know, teach a man to fish, you 2 feed him for a lifetime. I mean, we can provide schools 3 wi th cash incentives to increase their energy efficiency, 4 but it may be beneficial at the same time to provide them 5 wi th the education on the administration/operations side 6 on how they can directly reduce their operation and 7 maintenance costs, so my question is, is that going to be 8 a part of Task 2 as was hinted at by Mr. Luna or will it 9 primarily be just cash incentives? 10 COMMISSIONER KEMPTON: Mr. Kj ellander? 11 MR. KJELLANDER: Mr. Chairman, first, I'd 12 just like to note that Superintendent Luna needs to leave 13 at 3: 00 and unfortunately, I have a Fish and Game meeting 14 that I need to be leaving for. 15 COMMISSIONER KEMPTON: You better answer 16 the question quick. 17 MR. KJELLANDER: So that was where we were 18 headed. 19 MR. KLINE: It's about fishing. 20 MR. KJELLANDER: First, let me add to the 21 thing about teach a man to fish, let's talk about get the 22 energy efficiency today and you get to count on it for a 23 lifetime, so I think that i s really another key component 24 to look at going forward. That to me is extraordinarily 25 important. We have people on staff today, when you look CSB REPORTING Wilder, Idaho 83676 47 COLLOQUY . . . 1 at our administrative component of this, that they can 2 get out and can help look at identifying some of those 3 energy audit areas where we can do those improvements and 4 the utility as part of their incentive program has that 5 available as well, so we're going to take advantage of 6 those resources to get out there and work with people 7 internally so that folks on the ground understand what it 8 is that's there in the building, depending on what they 9 use or what cash incentives they take advantage of and 10 what they additionally use to deploy. Maybe they're 11 looking at specific metering devices that they want to 12 put into the building to continue to monitor how they're 13 using their energy. You have to have somebody trained on 14 that going forward so you're going to get that 15 educational piece as well. 16 Not following all of your question, but 17 I i m sure it was a great question, the other piece I would 18 add is that I do agree that if you can get people to 19 understand the value and through that there will be an 20 education tie-in, they're going to go out and do more. 21 The minute that they get that first bill back that shows 22 that reduced cost and they do the math on the payback, 23 they i re going to be educated very quickly. You will have 24 taught them to fish because they're going to see what 25 that cash value is for themselves going ahead in looking CSB REPORTING Wilder, Idaho 83676 48 COLLOQUY . . 1 at the general fund budget. You do it at your home, I do 2 it at mine. That's why you probably have CFL' s allover 3 your house, as do I. 4 COMMISSIONER KEMPTON: Mr. Carlson, I 5 think I'll work through questions given the limited time 6 of the presenters, so if you have a question, please feel 7 free to ask it. 8 MR. CARLSON: Mr. Chairman, I didn i t have 9 a question, but I had some comments. I don't have a 10 presentation either. 11 COMMISSIONER KEMPTON: Let me just get 12 through questions here right now because I'm going to 13 lose some of our presenters here briefly. Mr. Chisholm? 14 MR. CHISHOLM: Well, I guess the question 15 I would have is my proposal is that these energy 16 efficiency proj ects were really student driven, that you 17 had the students involved. It's not just an 18 administrati ve process that okay, we need energy 19 efficiency, that you actually involve as part of the 20 educational process the students in the assessment of the 21 school's efficiency and its deficiency and them 22 participating in any the plans so that you really not 23 only have you had a classroom experience in education, 24 but you also actually had a proj ect educational.25 experience. I think that deepens the educational process CSB REPORTING Wilder, Idaho 83676 49 COLLOQUY . . . 1 and gives ownership to the students. 2 COMMISSIONER KEMPTON: Is that a question? 3 MR. CHISHOLM: My question is how does 4 your project -- it seems like it 1 S more aimed at just the 5 energy efficiency in the schools. 6 MR. KJELLANDER: Mr. Chairman and 7 Mr. Chisholm, the first things that we would look at, 8 we'd look at ways in which they provide interaction with 9 students and those would include proj ects, I would 10 assume, going forward. Any curriculum that simply 11 preaches at someone, the sage on the stage, that i s been 12 ruled out for quite awhile. We don i t even use that at 13 the uni versi ty level anymore and that's a blessing, so as 14 we look at these curriculums, they i re going to be 15 encouraged to engage and interact and certainly that will 16 be a piece of it going forward, and I'll yield to 17 Superintendent Luna for some comments as well. 18 MR. LUNA: Mr. Chairman, Mr. Chisholm, I 19 think Paul said basically what I would say. I think it's 20 just a given that the development of the curriculum and 21 the kind of curriculums that we develop today are much 22 student participation-type learning acti vi ties and the 23 development of the curriculum and those ideas and those 24 projects would be part of the curriculum that teachers 25 would be trained in and then go back to the schools and CSB REPORTING Wilder, Idaho 83676 50 COLLOQUY . . 21 1 use. We already do it in technology. When we teach 2 students about technology, we begin to use -- many of 3 those students actually provide computer support in our 4 schools. It's that hands-on type of an approach. 5 As I said in my comments, 500,000 is a lot 6 of money, but it is a finite amount and so if we look at 7 the best place in a focused approach, I think that this 8 proposal does that. I'm always concerned about a shotgun 9 approach where there i s a lot of good ideas. Sometimes we 10 have to make a choice between two good things and choose 11 the better one and I think this proposal represents the 12 better part of the ideas we've heard as we considered how 13 to move forward with the monies that were available. 14 COMMISSIONER KEMPTON: Mr. Miller, 15 questions? 16 MR. MILLER: No, Mr. Chairman, I have no 17 questions. Just some comments, but it can wait. 18 COMMISSIONER KEMPTON: Ms. Langston? 19 MS. LANGSTON: Same here. I have some 20 comments. It can wait. COMMISSIONER KEMPTON: Any there other 22 questions from anybody for our presenters? 23 MR. HOWELL: Mr. Chairman, Staff has a 24 couple of questions, but in the interest of time, it may.25 be more efficient for us to engage in some CSB REPORTING Wilder, Idaho 83676 51 COLLOQUY . . 1 interrogatories either with the OER or the Department of 2 Education to get at some of our technical questions. 3 COMMISSIONER KEMPTON: We've got a couple 4 of minutes, Mr. Howell, why don't you pick one of those 5 and let's see where it goes. 6 MR. HOWELL: Sure. On the Task 2 dealing 7 wi th the proj ect efficiencies, the proposal noted that 8 there are about 355 buildings. The Staff was wondering 9 if there's a breakdown between how many of those 10 buildings are portable buildings, in other words, like 11 temporary buildings, like single wides, double wides in 12 an effort to try to figure out what would be an efficient 13 usage or maybe a limitation on efficiency monies. 14 COMMISSIONER KEMPTON: Superintendent 15 Luna? 16 MR. LUNA: Mr. Chairman, I believe what 17 you i re looking at is the number of schools in those 62 18 districts and the footprint can be different. It can be 19 one school with a number of portables. It could be one 20 school, but it's made up of a number of different wings. 21 We can get you that information, but I believe what 22 you're looking at is in those 62 school districts we have 23 355 schools. 24.25 MR. HOWELL: Following up, then, Mr. Chairman, in the estimated costs it had approximately CSB REPORTING Wilder, Idaho 83676 52 COLLOQUY . . . 1 $14,000 in marketing. We were wondering what entity 2 would do the marketing and how that marketing proposal or 3 process would differ from the efficiency programs 4 administered by Idaho Power with schools. 5 COMMISSIONER KEMPTON: Superintendent 6 Luna? 7 MR. LUNA: I'm going to yield to Paul if 8 thatl s okay. 9 COMMISSIONER KEMPTON: Director 10 Kjellander. 11 COMMISSIONER KJELLANDER: Mr. Chairman and 12 Mr. Howell, it would be in addition to the efforts that 13 are already occurring with Idaho Power and it would go 14 well beyond what those efforts are in working directly 15 with the schools. The marketing, while not completely 16 mapped out, would go far beyond just getting into some of 17 the publications that the schools have, but actually the 18 marketing would be on-si te visits, discussions, attending 19 various conferences that are tied to that to ensure that 20 the message is there and that access is there and then 21 also coordinating the efforts that we have with the 22 Department of Education, the utility and the Office of 23 Energy Resources to ensure that you can go to a central 24 website and find that material and actually have the 25 applications available for proj ects that you might be CSB REPORTING Wilder, Idaho 83676 53 COLLOQUY .1 moving forward with, but it would be in addition to, but 2 also coordinating and not losing sight of what's there 3 but to build upon it and to, again, I think take 4 advantage of some opportunities that getting into those 5 forums would bring us which is to promote some of the 6 other energy efficiency education projects that exist 7 today, but most notably, the new one that was awarded to 8 Boise State Uni versi ty for wind in schools and to work 9 with them and make sure that that gets more deployment, a 10 very hands-on proj ect they developed and also to again 11 look at other opportunities to help expand some of the 12 projects that Idaho Power has with solar in the schools,.13 so I think it can be in addition to that, but certainly 14 also promoting what is available through incentives and 15 also the curriculum itself. That would include a piece 16 of the marketing tied to the curriculum as well, so it 17 wouldn i t just be broken down to the actual energy 18 efficiency itself. 19 20 COMMISSIONER KEMPTON: Mr. Howell. MR. HOWELL: On page 1 of your 21 introductory overview letter, you discuss the National 22 Energy Education Development proj ect and in the middle of 23 the third paragraph down it says, "NEED also provides 24 each state with a budget for implementing the project.25 statewide," and I'm wondering whether Idaho has received CSB REPORTING Wilder, Idaho 83676 54 COLLOQUY .1 any budgetary dollars and, if so, where those dollars 2 reside. 3 MR. KJELLAN DER : And Mr. Cha i rman and 4 Mr. Howell, that's a question that quite honestly I 5 haven't done any investigation with NEED. Scott Smith 6 from the Department of Education has worked with them 7 closely and in lieu of giving you an answer that would be 8 subj ect to check, I i 11 simply say that would probably be 9 a question best addressed to Scott. He has more 10 knowledge there. 11 MR. HOWELL: My direction, Mr. Chairman, 12 is more or less to determine where we might be able to.13 bring more efficiencies out of the proposal, especially 14 if the NEED curricula looks good to the curriculum 15 evaluators. 16 COMMISSIONER KEMPTON: I think we're going 17 to have to let our presenters go and I think those other 18 questions, technical or otherwise, can be addressed by 19 separate correspondence, so we'll plan to do that. 20 Superintendent Luna and Director Kj ellander, thank both 21 of you for taking the time to come over and present to 22 us. It was very informative and in advance of a final 23 decision today, I think probably there will be additional 24 correspondence on this and possibly another status.25 conference, but very probably the Commission will move CSB REPORTING Wilder, Idaho 83676 55 COLLOQUY . . 1 forward on a modified procedure which would invite more 2 technical information coming in, possibly a hearing under 3 that procedure and a chance for anybody and everybody to 4 participate in the process of being an intervenor or to 5 be a party to decisions the Commission would make under 6 modified procedure. Thank you. 7 MR. KJELLANDER: Thank you, 8 Mr. Chairman. 9 MR. LUNA: Thank you, Mr. Chairman. 10 COMMISSIONER KEMPTON: Mr. Sylva, would 11 you take one of the chairs that's being vacated, please? 12 While Mr. Sylva is doing that, I'll only introduce him as 13 a party that came up after we had already done the 14 introductions and he has a written comment he wants to 15 make on behalf of Citizens Protecting Resources and in a 16 minute I'll allow him to do that, but first I want to 17 come back. Sara, have you finished all of your 18 presentation, then? 19 MS. COHEN: Yes, thank you, 20 Mr. Chairman. 21 COMMISSIONER KEMPTON: Okay, Mr. Carlson, 22 if you would like to present then, please. 23 MR. CARLSON: Yes, thank you, Mr. Chairman 24 and fellow Commissioners, my name is Rich Carlson here on.25 behalf of the Idaho Rural Council. Our organization CSB REPORTING Wilder, Idaho 83676 56 COLLOQUY filed written comments in support of the initial IEEP.1 2 plan some time ago for several reasons. Many of our 3 members are now grandparents who realize that there are 4 big changes occurring on the energy front. Our 5 grandchildren are facing great challenges, but also have 6 great opportunities. 7 I'm going to read just a short paragraph 8 from a website that an affiliate organization of ours has 9 put out. In 2006, energy efficiency generated more than 10 8 million new jobs in the American economy. For the most 11 part, these are not jobs that can be out sourced or 12 exported, but instead rely on skilled labor, carpenters,.13 plumbers, welders, electricians, sheet metal workers, and 14 certified weatherization technicians. More than 50 15 percent of these jobs were in the manufacturing center 16 wi th additional large numbers in the construction and 17 recycling centers. By pursuing an aggressive public 18 policy agenda, and I want to emphasize that word 19 aggressive public policy agenda to echo Mr. Kj ellander' s 20 use of that word, by pursuing an aggressive public policy 21 agenda to address climate change and energy security at 22 every level of government, energy efficiency jobs would 23 grow from over 8 million in 2006 to over 32 million in 24 the year 2030, so we see great opportunities for our.25 grandchildren. CSB REPORTING Wilder, Idaho 83676 57 COLLOQUY . . . 1 We would expect great dividends from both 2 sides of the proj ect as originally proposed in the IEEP. 3 We would hope like introducing computers into the 4 classroom in the 1990s, putting hands-on projects into 5 the schools like was proposed would give Idaho students a 6 head start facing, you know, the challenges and 7 opportunities that we are facing now. I would say that 8 I've only had since the time this started to go through 9 the proposal from the Governor's office, but I have three 10 basic off-the-seat-of-my-pants comments about it, and I 11 don't mean to disparage their proposal. I'm just 12 thrilled that we're here talking about energy education 13 and there doesn i t seem to be much debate that we need 14 energy education in our K-12 schools, but nevertheless, I 15 have three criticisms of it. 16 No.1, a venture like this really does 17 need public participation. This is ratepayer money and 18 we think it's important to have public participation 19 along the lines Mr. Chisholm proposed in the IEEP and 20 that's not part of the Governor's office proposal. 21 Mr. Chisholm, and we've known him for some time and 22 participated in the solar for schools proj ect along with 23 him and supported it to some degree, has some experience 24 and has been an advocate for ratepayers and public 25 interest for a long time, has a long record with that. CSB REPORTING Wilder, Idaho 83676 58 COLLOQUY . . . 1 The second criticism is that, and this has 2 been said already before, I think, or commented on, that 3 this proposal seems to underestimate how far along the 4 development of energy education curriculum already is, 5 and it looks like this proposal from the Governor's 6 office proposes spending too much on administration and 7 training; and thirdly, the lack of the hands-on 8 participation by school children. You may not believe 9 this, but I have a grandson who 's 11 years old and 10 al though I may look very young, I do have a grandchild 11 who's 11 years old and he would love to get his hands on 12 a solar panel or a wind turbine. He is able to absorb 13 technical stuff, and I'm sure you've all seen this, just 14 like a sponge and our organization believes that that's a 15 really critical part of what was originally proposed in 16 the IEEP rather than as the Governor's office has 17 proposed giving some break to the school districts who do 18 have a high energy budget burden. 19 We think it i S critical that young people 20 have that hands-on exposure, direct exposure, to 21 renewable energy technology and also, hopefully, someday 22 will be telling their parents like our parents told us 23 turn down the thermostat, turn the light down, close the 24 door, it's cold outside, we're wasting heat. You know, 25 we think that the hands-on experience and the proj ects CSB REPORTING Wilder, Idaho 83676 59 COLLOQUY . . . 1 that were proposed by the IEEP will generate that level 2 of commitment and interest by the children who are going 3 to be facing these big challenges quicker than some 4 reduction in a school district budget that may not have 5 any impact whatsoever on the school children. We think 6 the hands-on part of the project as proposed is critical, 7 so that's all. Thank you. 8 COMMISSIONER KEMPTON: Thank you. Well, 9 in relation to your comments and the comment that 10 Superintendent Luna made about harnessing the energy of 11 K-12, I would have visions of us purchasing numerous 12 numbers of treadmills and generating an output there that 13 would be measurable. Thank you very much. 14 Ken Miller. 15 MR. MILLER: Thank you, Mr. Chairman. My 16 name is Ken Miller. I'm with the Snake River Alliance 17 and I appreciate the opportunity to be before you this 18 afternoon. The Alliance was a strong supporter of the 19 Commission's decision to dedicate the $500,000 to 20 education, energy education, and we would hope that 21 regardless of how this turns out that that money does 22 stay in an education component of some form. We are also 23 are strongly supporting the Idaho Energy Education 24 Proj ect 's proposal. I think we all have stipulated that 25 the need to have enhanced energy education curricula is CSB REPORTING Wi lder , Idaho 83676 60 COLLOQUY . . . 1 significant and I think both the OER proposal as well as 2 the IEEP proposal are laudable in that they are shooting 3 for those same goals. I do think that the Idaho Energy 4 Education Project's proposal would be preferable simply 5 because it does include a much smaller amount of overhead 6 and administrative costs in developing the curriculum. 7 The Education Proj ect had also proposed a 8 concept that we support and that was to dedicate the 9 other $250,000 towards some projects, some hands-on 10 projects, and Mr. Carlson has just pointed out and as 11 you've heard from others, it's our belief that as we've 12 seen through the solar for schools and wind for schools, 13 particularly at Skyline High school over in Idaho Falls, 14 we i ve seen these projects engender a great deal of 15 enthusiasm and energy among the students and I really 16 think that kind of an investment will last far longer 17 than the one year that would normally be contemplated. 18 As the Chairman has pointed out, these are not recurring 19 funds barring another sulfur dioxide sale and a similar 20 outcome in another proceeding, but we do think that the 21 concept of setting aside half of this money for energy 22 proj ects and I think Mr. Chisholm's proposal was to cap 23 those at perhaps $12,500 apiece which would allow for 24 approximately 20 projects, these are the kinds of things 25 that will get students very involved. CSB REPORTING Wilder, Idaho 83676 61 COLLOQUY .1 It also, I think, would create a situation 2 where you have more buy-in and commitment from the 3 grantees, from those who would be securing the grants, 4 because I would presume that they would have an 5 investment at stake as well. Finally, with regard to the 6 Task 2 from the Office of Energy Resources, I don't know 7 specifically the kinds of programs that Idaho Power 8 provides to the schools, but I know that they 're 9 significant. Idaho Power has, as the Chairman has 10 pointed out, an exemplary energy efficiency program. It 11 has grown significantly over the past couple of years and 12 it will continue to grow thanks in part, at least, to the.13 energy efficiency writer and other proposals. I know 14 that the Company's efficiency programs and their staffing 15 have increased and their dedication, I think, has 16 increased to these programs. 17 I would -- I'm just not convinced that 18 this money needs to be spent to provide what is in great 19 part a service or at least a program that currently 20 exists. The Idaho legislature last year or last session 21 considered a green building program for schools and this 22 was for new schools and the concern was that as the state 23 has taken on the O&M component for school spending and 24 energy spending in schools continues to skyrocket that.25 the state has a vested interest in helping the schools CSB REPORTING Wilder, Idaho 83676 62 COLLOQUY . . . 1 reduce their energy cost, certainly for new schools, but 2 what we're talking about here primarily, I think, are 3 existing schools and it would be my view that perhaps 4 given that this is, I think, a function that the state 5 has to ensure that the schools are safe and energy 6 efficient that that would be something that the 7 legislature might consider as opposed to a use for this 8 money, and then just as I said, just in closing, we 9 really would encourage that the Commission regardless of 10 how this turns out continue to dedicate this money toward 11 energy education and energy in the schools. 12 Thank you, Mr. Chairman. 13 COMMISSIONER KEMPTON: Thank you, 14 Mr. Miller. Ms. Langston. 15 MS. LANGSTON: I have to make a 16 disclaimer, it's my very first time at this type of 17 conference or any public hearing and it's a blessing and 18 a curse. The curse is that I don't know the procedures. 19 I didn't know how to address you guys that are on 20 stage. 21 COMMISSIONER KEMPTON: It's informal. All 22 you have to do is speak. 23 MS. LANGSTON: I have to learn all this, 24 so forgive me if I screw up addressing you improperly, 25 but the blessing over this is that in presenting myself, CSB REPORTING Wilder, Idaho 83676 63 COLLOQUY . . . 1 I don't have any stake at any of the organizations, so I 2 can look at this as a pool of money available and if it 3 was my money, how would I spend it. As I said before, I 4 have a lot of experience in private industry in energy 5 conservation projects, so my view is more business kind 6 of view. Where can I get the best return on investment. 7 I have $500,000. Which project I think would return the 8 most money to me and under this proposal, granted, I only 9 got ita half an hour before this meeting, but it's not 10 complicated proposal. I kind of agree with the first 11 part of this proposal. I think we do need to educate our 12 kids and that brief moment I spent talking to Idaho Power 13 people, I'm impressed what they're doing in schools 14 already and apparently, there are other programs 15 available with the curriculum established which we can at 16 least look at, so I'm very comfortable going to school 17 and spending some of this money, I call it, brainwashing 18 our kids so that when they grow up, it's already 19 established in their head. Consideration is the key. 20 The only kind of point here is the amount 21 of money, allocation of the money, in the administration 22 fees. Again, being a business person, to me, it i S a big 23 amount on overhead, but there's no explanation where this 24 money goes, so I'll just leave it alone. The case itself 25 is very honorable. I would li ke for Idaho Power to be CSB REPORTING Wilder, Idaho 83676 64 COLLOQUY . . . 1 more involved because what they are doing already is 2 probably quite a lot of what's proposed to be done and 3 they have experience and they've worked for many years, 4 so apparently, they are doing something right, so that's 5 all about the first piece. 6 The second piece, again, asking if it was 7 my money, what would I do and especially reading the 8 sentence that some incentive programs are already 9 available from Idaho Power, I would probably not spend 10 the money on the second portion of this proposal. I like 11 the idea, again, this is just one person view, I like the 12 idea of higher education investment. I think BSU 13 probably has quite a few proj ects going on already where 14 they are dying for funds, energy conservation projects. 15 I don i t know much about it, but just hearing that there 16 are some free energy audits, just to put some money in 17 that would be great. I think it's great to influence our 18 students to move towards the direction of, I don't know 19 if there are such things, energy conservation engineering 20 or anything like this, but towards that direction, so if 21 it was my money, to conclude my speech, I would probably 22 invest it with BSU or U of I, higher education, to either 23 give them the money as a grant or sponsor energy 24 conservation teams or research at the uni versi ties or 25 encourage them to develop that energy audit program, CSB REPORTING Wilder, Idaho 83676 65 COLLOQUY . . 1 anything. Again, second part of this proposal besides 2 that I'm not too crazy about giving addi tional incentives 3 to school, I don't like that administration portion fee 4 again. 5 You look at this, between the first 6 proj ect and the second proj ect, that i s more than 30 7 percent of the total amount is on administration. What 8 exactly are we going to be doing with this money? 9 Anyway, so that i s about it, but again, it's just one 10 person's opinion and this is the very first try, so 11 forgive me if I said something which disagrees with 12 you. 13 COMMISSIONER KEMPTON: Thank you. Could 14 you tell me where your background is in terms of energy 15 conservation and energy resources? 16 MS. LANGSTON: My degree, actually have 17 double engineering degree with facilitation and power 18 generation, but most of my life has been spent on energy 19 conservation projects for Boise Cascade Corporation. I 20 also spent a lot of time doing proj ects focusing on 21 energy and raw materials for the company, so now I 1m 22 retired and I have time to participate in meetings like 23 this. .24 25 COMMISSIONER KEMPTON: Thank you for being here. CSB REPORTING Wilder, Idaho 83676 66 COLLOQUY . 10 1 MS. LANGSTON: Thanks. 2 COMMISSIONER KEMPTON: Mr. Sylva, it's 3 been a long day for you and then you don't have a very 4 long statement, would you care to -- let me explain, I 5 think I did before, that Mr. Sylva came in late. We're 6 not running by formal rules, so even though we didn i t 7 introduce him originally in the appearances, it i s 8 perfectly appropriate for him to go ahead and 9 participate, so Mr. Sylva. MR. SYLVA: Thank you. I appreciate this 11 opportunity. I would like to wear two hats, if I may. 12 One is I i d like to read a statement from Citizens.13 Protecting Resources and I would also like to make a 14 personal comment, if I may. The Citizens Protecting 15 Resources fully and unequivocally supports Idaho 16 Education Project's changing conservation efficiency and 17 renewable energy resources and most important, the shift 18 in our mode of thinking such practices must be our first 19 consideration in obtaining the ultimate goal of a 20 sustainable energy policy and environmentally secure 21 future. Citizens Protecting Resources is a citizens 22 group based in Magic Valley, members from Twin Falls 23 County, Lincoln County and Jerome, primarily. That i s the 24 end of my CPR statement..25 Personally, I view energy conservation in CSB REPORTING Wilder, Idaho 83676 67 COLLOQUY . . . 1 a broader view of climate change and the future of the 2 earth, frankly, and I find thinking about that that it's 3 really going to require a paradigm shift in the way we 4 view everything, and from what I've heard so far tonight, 5 I think what i s going on here today is the state is really 6 trying to pullout the greatest asset that we have in 7 this room and that i s the mind of Bill Chisholm and to 8 push him out of this seems short-sighted in my opinion. 9 The reason I think Idaho Power can work well with the 10 state is they both gain their ideas from the same person, 11 that i s Bill Chisholm. Bill started the project at the 12 school in Castleford which Idaho Power joined up with, so 13 it's easy to see why they think they can dovetail well 14 wi th the state since the genesis is the same source. I 15 just thought it was important to expose the elements in 16 the room. Thank you. 17 COMMI S S IONER KEMPTON: Than k you, 18 Mr. Sylva. Any questions by any of the presenters? Any 19 questions? 20 COMMISSIONER REDFORD: No. 21 COMMISSIONER KEMPTON: The Commission has 22 heard all of the presentations and the diverse inputs 23 from various groups, organizations and self-interests, 24 personal interests. This is a difficult issue for us, 25 because, as I said, when we began this process here CSB REPORTING Wilder, Idaho 83676 68 COLLOQUY . . 20 21 22 23 24.25 1 today, it i S something new for the Commission and we 2 expected diverse testimony as to what would be the best 3 way to go forward. We won't make any decisions here 4 today. We'll take this information under advisement and 5 we will have separate discussions in the Commission on 6 this, discussions with Staff, discussions among ourselves 7 and decide the next course of action. As I said in the 8 very beginning, we still reserve the discretion as a 9 Commission in deciding whether the $500,000 will go to 10 education processes or whether it will go back to 11 ratepayers. 12 Having said that, I think there i s nothing 13 else to add, so this session will be closed as of this 14 time. 15 (IEEP Exhibit Nos. 1 & 2 were marked and 16 admi tted into evidence.) 17 (The Status Conference adjourned at 18 3:25 p.m.) 19 CSB REPORTING Wilder, Idaho 83676 69 COLLOQUY . . 20 21 22 23 24.25 1 AUTHENTICATION 2 3 4 This is to certify that the foregoing 5 proceedings held in the matter of the appropriate 6 disposi tion of Idaho Power Company's S02 emission 7 proceeds to fund an energy education proposal, commencing 8 at 1:30 p.m., on Wednesday, July 16, 2008, at the 9 Commission Hearing Room, 472 West Washington, Boise, 10 Idaho, is a true and correct transcript of said 11 proceedings and the original thereof for the file of the 12 Commission. 13 14 15 16 COr'Sfdwß- .:~(((i¿í CONSTANCE S. BUCY Certified Shorthand Reporter #l87 17 18 19 ",\\111'1/"\,\ E '",'..\c S h ii"~ . q, 1'" ......ß- ~ \\,'\\Ulllti "V /,.,.:: ~ ..,,,\~ A b"iii " ~ :: '? ~.... ,\ " 1"...... '. ';..~~O )--- -=ot., %::::O?Cõ U~:::: ~ A E::~ \, Uß\." /~ ::~;. ~l'l"llll "............ ~ - ...::: ..., rS IhiiH\\'\\'- ~ y ....~'iii 1'4TE Of'\ ,,,,--'1,1 . \\\\1/1/11\\\\1\ CSB REPORTING Wilder, Idaho 83676 70 AUTHENTICATION c..&ii..ii..ii".~&'ii..ii'....ii.jiii.¡jii~; -:a: YliIN I(! 1m!I. ENERGY ')... .~. .~..iL_ ........ II t tf¡~Ii..t."f ., ..... = PROFESSIONAL DEVELOPMENT = t. . TEACHER TRAINING WORKSHOP . . .8 THINK! ø TALK! _TAKE ENERGY ACTION! .. .. .... ..h:..un:....,. ...... ,...y' ......:..:.... uV....IKSh.... .io" K ,,. ,.,.. .,.....O..s .... UL I ii~ 11\,"¡Ut: IVVV-UU II Ullllll~ Y'VI I VfJ I I - I L CU U\"U I I _ ,! r----- J~2=3:2ÕÕ------------ J~9:10, 2oos-----l ! .. : Idaho State Univerity ¡Idaho Falls Idaho Stae Univerity ¡ Pocatello: .. .: GtE Building OR Roy F. Oiristenn Building : -=.: Room 211 Room 108 :. ,t L_~770 ;~Fat;~~_______:77p::II~___j Ii :'°ERKSh HOP OUTCOIOtMES: ..' n ance you energy i eracy .. .. . Participate in hands-on activities . . Receive free classroom materials .. . Explore energy career opportunities for students .. . Enjoy an energy industry field experience ii · Integrate energy into your lesson plans ... . Earn 1-2 ISU~ continuing education credits (optional) .. How to ..egister: -= : ri.; Contad Ellen a~~~:~~~~i~rgy Foundation .. \ .' $20 ~i:0Mar:=:d-:u~:ble) t'.~.f ~=\~. WORKSHOP CO~~~:::~Y:.; 't: PROVIDED BY :.NATIONAL ¡..!:=..- o:~~~:gIT50N ..m(j ,l.L~,...,",.,.~,~...!':C...~,"._ ... ... .. .........~'_..__.:l\.OP...OP..øø..OP...ø...Oø...Oø...OP.¡; ":,",;::t,j~-ro:';;;:",,'~:C;~::C_'T-;~:i;;Y;'.7)_;¡-(-;'S17iF'~èiP-~:r~c:i;,;q0_t:~?,S':2:;~'7t!';~L,;~,è~~:::':r~:-"~_Ä; - - '''1,,_ ,.,:-,',-:'"".;;O:"::"f:::F?T,:":-:i "::-:':-:.;."o't';~'0'.''::_t;:-','';J;;.c;:''':;.'e~,:'r2-;,'''.''£",,,:,;:7':-' ,X' "'-'~"""':2:::ir::,::-':;' ';;7'c-';-~'''; ~ -----",'-- ...-- "-"--',"';;":C,:C:.;:,::\,'-'O'-'T "--';"-"~';d'~~3:?§':C"i:L'F ;,:d_-_:,;~_d':;!-'" - - ..t'"'d_:i7~-:;:;:, ';D';':,?_"~J-"j;"Dt'::;Xi FREE MATERIALS PRgVIDED Grade-leel aassrom Poser Set Grade-leel aasrom Ene Activities Guide Oasro Eneist Set . Energ Action Oillen aassrom Set $20 Gift Certificae for aassroom Supplies Think! Ene Toteb ISU Continuing Education Credits Available '.2 credits $50 per credit Payable first day of class EXHIBIT N( .~.¡ÇFP MEALS, SNACKS AND FIELD TRIP TRANSPORTATION PROVIDED CLASROOM LAB SUPPLIES AND ESTEC TECHNICAL SUPPORT AVAILABLE UPON REQUEST . THINK! ø TALK! _TAKE ENERGY ACTION! According to the U.S. Department of Labor, at least 30 percent of the existing workforce will be eligible for retirement in five yeors. By 2012, the utility sector will have an esma 10,000 iobs that will remain unfiled... will your students have an interest in these jobs? IDAPOR ¿")! . w..'::::;)'"~ r:~çlflfQRP ..~EnterPllfllt' lor PrrlMtrill ~1.WIl:Gl~M""(iSlìì~ i;"srn-. ,11; lü lihio ~io¡¡o'1o: bbor::Qr; This program was funded in part by a grant awarded under the President's Community-Based Job Training Grants, as implemented by the u.s. Department of Labor's Employment and Training Administration and by the Advanced Technological Education program at the National Science Foundation under Grant No. DUE-0703169. An equal opportunity employer/program. Auxiliary aids, and services are available upon request to individuals with disabilities.