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HomeMy WebLinkAbout20090805IPC to Staff 1-16.pdfesIDA~POR~ An IDACORP Company LISA D. NORDSTROM Senior Counsel August 4,2009 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-09-09 IN THE MA ITER OF THE APPLICA TlON OF IDAHO POWER COMPANY FOR A PRUDENCY DETERMINA TlON OF ENERGY EFFICIENCY RIDER FUNDS SPENT IN 2002-2007 Dear Ms. Jewell: Please find enclosed for filing an original and three (3) copies of Idaho Power Company's Response to the First Production Request of the Commission Staff in the above-referenced matter. Very truly yours, ~~Jf7¿~ Lisa D. Nordstrom LDN:csb Enclosures P.O. Box 70 (83707) 1221 W. Idaho St. Boise. 10 83702 LISA D. NORDSTROM (ISB No. 5733) BARTON L. KLINE (ISB No. 1526) Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 LNordstromßùidahopower.com BKlineßùidahopower.com RECEIVFn " ',p 2009 AUG -4 PM 4: 49 UT IDAHO PU81 Ii'tUTlES COMP,".f,~JS¡ON Attorneys for Idaho Power Company Street Address for Express Mail: 1221 West Idaho Street Boise, Idaho 83702 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) OF IDAHO POWER COMPANY FOR A ) PRUDENCY DETERMINATION OF ) ENERGY EFFICIENCY RIDER FUNDS ) SPENT IN 2002-2007. ) ) ) ) CASE NO. IPC-E-09-09 IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company ("Idaho Power" or "the Company"), and in response to the First Production Request of the Commission Staff to Idaho Power Company dated July 14, 2009, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY-1 REQUEST NO.1: Has Idaho Power calculated the benefit/cost ratio of its Irrigation Efficiency Rewards program from the perspective of program participants? If so, please provide such calculations and data sources. If not, why not? RESPONSE TO REQUEST NO.1: Because the inherent complexity can lead to misleading results, Idaho Power ("Company") does not calculate the benefit/cost ratio of its Irrigation Efficiency Rewards program ("Program") from the perspective of Program participants. Idaho Power primarily utilizes the Total Resource Cost ("TRC") and the Utilty Cost ("UC") tests in assessing the cost-effectiveness of its DSM programs. Idaho Power has developed most of its DSM programs through the Integrated Resource Planning ("IRP") process with input from Efficiency Advisory Group ("EEAG"). In the IRP process, Idaho Power assesses energy efficiency and demand response programs on an equal basis with supply-side resources. The "Electric Power Research Institute End Use Technical Assessment Guide" and the "California Standard Practice Manual" both identify the TRC test and the UC test as being similar to supply-side tests. See the "Electric Power Research Institute End Use Technical Assessment Guide," Volume 4 ("TAG"), page 1-16 and page 122 and the "California Standard Practice Manual," July 2002, page 21 and 24. Idaho Power acknowledges many of the inputs for the other cost-effectiveness test as important and uses the same or similar information in the design of its programs. The difficulty with the other tests is calculating or quantifying the inputs and interpreting their results. The TAG and the "California Standard Practice Manual" also indicate that all of these test (Le., societal, total resource, utility, participant, and nonparticipant) results are only as good as the inputs that are used to calculate them. The "Electric IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 Power Research Institute End Use Technical Assessment Guide" points out that ". . . these tests are based on quantifiable information. With the exception of the attempt to measure externalities for the societal test, all components are quantifiable." (Pages 1- 10). In reference to the Participant Test, the "California Standard Practice Manual" indicates: None of the Participant Test results (discounted payback, net present value, or benefit-cost ratio) accurately capture the complexities and diversity of customer decision-making processes for demand-side management investments. Until or unless more is known about customer attitudes and behavior, interpretations of Participant Test results continue to require considerable judgment. Idaho Power assesses the impact on participants in a multi-dimensional way. The Company presents programs through the EEAG, conducts customer research, considers bill impact of programs, and modifies programs through time, based on customer feedback. However, it is particularly difficult for Idaho Power to determine the cost- effectiveness of the Irrigation Efficiency program from the participant's perspective due to the following variables: determination of participants' non-energy benefits (reduced labor/improved yield/fuel costs), forecasting of electricity rates to determine bill impacts, frequency of crop rotations/service point "rotation," and forecast commodity prices. According to the TAG manual (page 1-13) the Participant Cost test is ". . . a measure for the average customer expected to participate." For the Irrigation Efficiency Rewards program and especially the Custom option of the Program, it is very difficult to define an average customer since each project is unique. The TAG manual also points out that "High program penetration rates are unlikely with low participant benefit-cost IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 ratios." The Irrigation Efficiency Rewards program has had a very high participation rate. For example, between 2003 and 2007, approximately 15 percent of Idaho Power's irrigation customers participated in Program. Idaho Power considers its irrigation customers to be very astute agri-business people and as such would not participate in the Irrigation Efficiency Rewards program if it was not cost-effective from their perspective. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 REQUEST NO.2: Of the 2,127 irrigation efficiency program projects completed from 2003 through 2007, how many does Idaho Power estimate would have been completed in the absence of IPC's program? RESPONSE TO REQUEST NO.2: Because the inherent complexity can lead to misleading results, Idaho Power ("Company") does not estimate how many of its Irrigation Efficiency Rewards program ("Program") projects would have been completed in the absence of the Program. Accounting for what is referred to as "free ridership" in the Irrigation Efficiency Rewards program is particularly difficult due to the fact that there are three major offerings of the Program which include: (1) the menu option, (2) custom option, and (3) new system option. There is a wide range of systems and equipment customers would install in absence of the Program. Another difficulty for estimating free ridership in the Energy Efficiency Rewards program is the uncertainty of a common baseline. Idaho Power uses historical energy use, if it exists, to estimate energy savings for projects. Although this is the case for the existing system and menu options, for the new system option, there is no existing baseline because there are no energy codes for irrigation equipment. Each new system project analysis accounts for what would have been installed as a standard irrigation system for a specific location that takes into account specific geographical and environmental conditions. It is likely that many of the Program participants installng new irrigation systems would have installed some kind of sprinkler system regardless of the Program. The application process in the Program is intended to ensure that projects are designed in the most efficient manner possible resulting in the highest achievable energy savings. If a net-to-gross ("NTG") factor of 0.8, which is typical for many programs, was applied to IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5 the energy savings estimated in the Program to account for free ridership, the Program would continue to be cost-effective. Also, information is not available to determine how many projects were completed outside the Program using energy efficient techniques advocated by the Company through its agricultural representatives and education programs. The Company does not claim any energy savings from this practice known as "free- drivership." Determining why customers participate or do not participate in a program when changing, installng, or improving irrigation systems is very difficult to determine. The questionable accuracy of any NTG factor applied to the energy savings of an energy efficiency program, particularly in the irrigation sector, leads to uncertainties in the application of these factors. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 REQUEST NO.3: At the top of page 6 of the Irrigation Efficiency Rewards program description included in Attachment 1, Energy Efficiency Rider Expense Documentation, is the statement that ". . . it is expected that Program participation wil likely be more constant going forward as many systems that were previously improved become eligible to participate in the Program again." a) Is repetitive participation in this program considered an aspect of program success? Please explain. b) Has Idaho Power investigated market transformation for irrigation efficiency? RESPONSE TO REQUEST NO.3: Idaho Power ("Company") considers repetitive participation by customers in the Irrigation Efficiency Rewards program ("Program") an aspect of program success. The menu option of the Program is based on the premise that irrigation system equipment wil wear out and need to be replaced in order to continue to operate efficiently. The Company believes that some irrigation customers would replace worn out equipment absent the Program, but the timing of when equipment would be replaced absent the Program is generally assumed to exceed the effcient life of the equipment offered in the Program. As stated in the Application, the Program is designed to incent customers to design and install systems and equipment that go above and beyond a standard irrigation system. The Program is also designed to provide a monetary incentive to motivate customers to install energy efficient irrigation systems and equipment on an ongoing basis in order to provide energy savings for the Company and its customers. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY-7 Because the inherent complexity can lead to misleading results, Idaho Power has not investigated market transformation, nor is the Company aware of any studies that have quantified market transformation in the irrigation sector. One of the goals of the Irrigation Efficiency Rewards program is to educate its irrigation customers on the benefits of energy efficient equipment and provide incentives to assist them in the timely installation of systems and equipment that provide energy savings. The Company believes that some customers have made it a more common practice to install energy efficient equipment on a regular basis. However, Idaho Power has not attempted to quantify this practice due to several variables that would be very difficult to access and expensive to determine. Aside from the complexities of evaluating the variables associated with business decisions made by irrigation customers, some of the variables required to determine market transformation include: the establishment of a uniform baseline in the irrigation sector when codes do not exist and environmental and geographical conditions vary widely, market transformation studies need to be completed at the market level rather than the program level, causality between the program and market changes, and long-term sustainability of energy efficient practices. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 REQUEST NO.4: Has any post-implementation evaluation (impact, process, or market effects) of Idaho Power's 2003-2007 Irrigation Efficiency Rewards program been completed beyond reviewing payments, summarizing data, and calculating cost- effectiveness based on assumed savings? If so, please provide such evaluation(s) and explain why the information was not previously provided. RESPONSE TO REQUEST NO.4: While no formal report is prepared, Idaho Power ("Company") assesses the impact and processes in the Irrigation Efficiency Rewards program ("Program") regularly. Through its constant review of impact and processes, Idaho Power regularly adjusts Program administrative techniques to improve its services to customers. Idaho Power employs eight staff members, of which a portion of their salaries is funded by the Idaho Energy Efficiency Rider, dedicated to servicing the irrigation class in energy efficiency programs, demand response programs, energy efficiency education, irrigation system design, and other agricultural irrigation system problems or questions. As stated in the Company's Response to Staff's Request NO.3, neither Idaho Power nor any regional organizations have done extensive market transformation studies regarding the Irrigation Efficiency Rewards program. As described in the Application, proposed projects under the Custom Options of the Program are evaluated using engineering analysis to determine the energy savings. In many cases, post installation energy usage is available and is used to verify the estimated savings calculations. For Projects initiated under the Menu Option, energy savings estimates are based on "deemed savings" from the Northwest Power and Conservation Council's Regional Technical Forum or the Bonnevile Power Administration, which are often derived from evaluated projects and programs. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -10 REQUEST NO.5: Idaho Power states that it "plans to conduct biling analyses of participants in the Irrigation Efficiency Rewards program" and pursue "exploration of opportunities to partner with other regional organizations to conduct an updated impact evaluation of the Program." Is it Idaho Power's position that these assertions are sufficient for the Commission to assess prudency of this program's $5.1 milion cost from 2003 through 2007? Please explain. RESPONSE TO REQUEST NO.5: The Idaho Public Utilties Commission ("Commission") should determine the expenses associated with the Irrigation Efficiency Rewards program ("Program") as reasonable and prudent based on the fact that, as stated in the Application, each measure in the menu option of the Program is cost- effective. The Program cost-effectiveness benefit/cost ratios stated in the Application are 3.78 from the Utilty Cost ("UC") perspective and 2.17 from the Total Resource Cost ("TRC") perspective. The Program life cost-effectiveness benefit/cost ratios calculated from actual expenses and savings shown in Appendix 4 of the Demand-Side Management 2008 Annual Report are 5.49 from the UC perspective and 1.64 from the TRC perspective. Additionally, the Company has conformed both in the spirit and the letter of Commission orders pertaining to demand-side management ("DSM") programs. Idaho Power formed an Energy Efficiency Advisory Group ("EEAG"). This advisory group is made up of a diverse membership that attempts to represent the interest of the various customer classes. The EEAG includes representative from the Idaho Public Utiities Commission Staff, the Oregon Public Utilities Commission Staff, representatives from IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPÀNY -11 the Industrial, Commercial, and Residential class as well as regional energy efficiency experts and representatives from the environmental community. The original design of this Program was vetted through the EEAG. Prior to launching the Program, the Company determined this Program to be cost-effective based on the best information available at the time of design and development. As described in the Application, assumptions used to calculate energy savings for each measure offered in the Program have been derived from various industry standards and reports and are verified by qualified irrgation experts within the Company. The Company has modified this Program through the years based on new information when made available. For example, the Company added the menu option to the Program which resulted in increased participation. Another change was an adjustment to incentives after the first year of the Program which also resulted in increased Program participation while maintaining cost-effectiveness. Program experience has provided Idaho Power with information to estimate energy savings from individual projects more accurately. Idaho Power reports on this Program to both the EEAG and the Commission through regular EEAG meetings and its annual DSM report. The Program has been developed and analyzed in a manner that justifies prudent expenses incurred by the Program. The Company has determined the Program to be cost-effective, has experienced very good participation, targets lost opportunity savings, and has provided significant energy savings over its life. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12 REQUEST NO.6: At the bottom of page 5 of the ENERGY STAR Lighting Program description included in Attachment 1, Energy Efficiency Rider Expense Documentation, is the statement that "A copy of this study was made available in Response No. 91 in IPUC Case No. IPC-E-08-10." The study referenced was contracted with KEMA in 2006 for a consumer lighting survey and it was not included on the list of studies provided by Idaho Power in its Response to Production Request 91. Please identify where in IPC's Response to Production Request 91 the results of this survey exist. RESPONSE TO REQUEST NO.6: In the Company's Response to Staffs Request No. 91, Idaho Power stated, "Due to limited copies, voluminous nature, or unavailabilty in electronic format, all other evaluations, surveys, etc., will be made available upon request in the discovery room at Idaho Power." A copy of the Consumer Lighting Study was made available during Staff's visit to the discovery room at Idaho Power on October 15, 2008. During that visit, Idaho Power's records indicate that Staff made a copy of portions of the Consumer Lighting Study. Recently, Idaho Power contacted KEMA for an electronic copy of the Consumer Lighting Study and it is included with this Response. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -13 REQUEST NO.7: At the bottom of page 6 of the Building Efficiency program description included in Attachment 1, Energy Efficiency Rider Expense Documentation, it is stated that evaluation results for four of 14 measures in this program will be available in 2009. Please describe how the evaluator or Idaho Power will adjust the program's benefit/cost calculations to reflect estimates of projects that would have been completed in the absence of the program? RESPONSE TO REQUEST NO.7: As stated in the Application, Idaho Power ("Company") contracted with the Integrated Design Laboratory ("IDL") to analyze and evaluate the measures in the Building Efficiency program ("Program") where energy savings are less certain or where Idaho Power would like site specific information. The work by IDL is not intended to provide information to adjust the Program's benefit/cost calculations using estimates of projects that would have been completed in the absence of the Program. Why customers participate or do not participate in a program when building a new facility or conducting a major remodel is very difficult to determine. In 1996, Idaho Power participated in a regional evaluation titled "Performance Measurement: Establishing Energy Impacts of Commercial New Construction Programs." In that study it was stated, "The key to reducing free ridership is knowing what the building industry will install on its own (the baseline) and providing incentives for going beyond the baseline. This concept sounds good but is nearly impossible to design and implement. There is a wide range of what customers would do in absence of the Program." Attachment No. 1 to the Application shows a utility benefit cost ratio ("UC ratio") of 4.31 and a total resource benefit cost ratio ("TRC ratio") of 3.43. Idaho Power's IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -14 Demand-Side Management 2008 Annual Report in Appendix 4 shows a UC ratio of 2.14 and a TRC ratio of 1.55 for all the actual expenses and savings incurred from 2004 through 2008. Considering these cost-effective measurements, the Program would stil be cost-effective even if a reasonable adjustment to the energy savings, such as 0.8, was quantified and applied to account for projects assumed would have been completed in absence of the Program. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -15 REQUEST NO.8: Given that there is not yet an evaluation of any measure for any year of the Building Efficiency program available for Commission review and that the evaluation results expected later this year will include only four of 14 measures in this program, on what basis does Idaho Power believe the Commission should find that Idaho Power's expenses of $1.3 millon from 2004 through 2007 were reasonable and prudent? RESPONSE TO REQUEST NO.8: The Idaho Public Utilties Commission ("Commission") should determine that the expenses associated with the Building Efficiency program ("Program") were reasonable and prudent based on the fact that the Program cost-effectiveness benefit/cost ratios stated in the Application are 1.99 from the Utility Cost ("UC") perspective and 1.65 from the Total Resource Cost ("TRC") perspective. The Program life cost-effectiveness benefit/cost ratios calculated from actual expenses and savings shown in Appendix 4 of the Demand-Side Management 2008 Annual Report are 2.14 from the UC perspective and 1.55 from the TRC perspective. Additionally, the Company has conformed both in the spirit and the letter of Commission orders pertaining to demand-side management ("DSM") programs. Idaho Power formed an Energy Efficiency Advisory Group ("EEAG"). This advisory group is made up of a diverse membership that attempts to represent the interest of the various customer classes. The EEAG includes representatives from the Idaho Public Utilties Commission Staff, the Public Utilty Commission of Oregon Staff, representatives from the Industrial, Commercial, and Residential class as well as regional energy effciency experts and representatives from the environmental community. Idaho Power reports IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -16 on this Program to both the EEAG and the Commission through regular EEAG meetings and its annual DSM report. The original design of this Program was vetted through the EEAG. The Company has determined this Program to be cost-effective based on the best information available at the time of design and development. As described in the Application, assumptions used to calculate energy savings for each measure offered in the Program have been derived from various industry standards and reports. The Company has modified this Program through the years based on new information when made available. In May 2007, Idaho Power contracted with K Energy to verify and adjust the energy savings assumptions for the Program. In 2008, Idaho Power adjusted the requirements for the Program's high performance and premium performance window measures to reflect Idaho's adoption of the International Energy Conservation Code ("IECC") 2006. Also in 2008, the size requirement for Air Side Economizers was adjusted to reflect the adopted IECC 2006. In 2009, Idaho Power replaced the premium effciency window measure with exterior window shading due to minimal participation for the premium windows. Also in 2009, The Company adjusted the calculation of incentives for demand control ventilation based on outside airflow controlled by a C02 sensor rather than unit rated airflow. Idaho Power has reasonably concluded that offering the Program is cost- effective and a prudent use of customer funded energy efficiency. The energy savings associated with the measures offered in the Program are based on estimated savings from other utility's programs and national or regional organizations such as the Regional Technical Forum ("RTF"). As explained in the Application, Idaho Power has proactively IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -17 identified measures where energy savings estimates are less certain and has taken steps to evaluate the savings from those measures. Given the likelihood of this Program's energy savings, Idaho Power takes great care and effort to manage energy efficiency funds wisely. Idaho Power evaluated only those four measures where energy savings claims are less certain. An alternative evaluation approach would be to consider very expensive building simulation modeling, which does not seem necessary at this time. The Company has determined the Program to be cost-effective, has experienced increasing participation, targets lost opportunity savings, and has provided significant energy savings over its life. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -18 REQUEST NO.9: What is the process by which IPC's manager of the Easy Upgrades program communicates concerns about measure lives or savings with IPC's manager of energy efficiency evaluation? RESPONSE TO REQUEST NO.9: If the Easy Upgrades program ("Program") manager has concerns about measure lives or savings, the Program manager would communicate those concerns directly to the energy efficiency evaluation team. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -19 REQUEST NO. 10: Has Idaho Power calculated the benefit/cost ratio of its Easy Upgrades program from the participant perspective? If so, please provide such calculations and data sources. If not, why not? RESPONSE TO REQUEST NO. 10: Because the inherent complexity can lead to misleading results, Idaho Power ("Company") does not calculate the benefit/cost ratio of its Easy Upgrades program ("Program") from the perspective of Program participants. Idaho Power primarily utilzes the Total Resource Cost ("TRC") and the Utility Cost ("UC") tests in assessing the cost-effectiveness of its DSM programs. Idaho Power has developed most of its DSM programs through the Integrated Resource Planning ("IRP") process with input from Efficiency Advisory Group ("EEAG"). In the IRP process, Idaho Power assesses energy efficiency and demand response programs on an equal basis with supply-side resources. The "Electric Power Research Institute End Use Technical Assessment Guide" and the "California Standard Practice Manual" both identify the TRC test and the UC test as being similar to supply-side tests. See the "Electric Power Research Institute End Use Technical Assessment Guide," Volume 4, page 1-16 and page 122 and the "California Standard Practice Manual," July 2002, page 21 and 24. Idaho Power acknowledges many of the inputs for the other cost-effectiveness test as important and uses the same or similar information in the design of its programs. The difficulty with the other tests is calculating or quantifying the inputs and interpreting their results. The "Electric Power Research Institute End Use Technical Assessment Guide" and the "California Standard Practice Manual" also indicate that all of these test (Le., societal, total resource, utiliy, participant, and nonparticipant) results are only as good as the inputs that are used to calculate them. The "Electric Power Research IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20 Institute End Use Technical Assessment Guide" points out that ". . . these tests are based on quantifiable information. With the exception of the attempt to measure externalities for the societal test, all components are quantifiable." (Pages 1-10). In reference to the Participant Test, the "California Standard Practice Manual" indicates: None of the Participant Test results (discounted payback, net present value, or benefit-cost ratio) accurately capture the complexities and diversity of customer decision-making processes for demand-side management investments. Until or unless more is known about customer attitudes and behavior, interpretations of Participant Test results continue to require considerable judgment. Idaho Power assesses the impact on participants in a multi-dimensional way. The Company presents programs through the EEAG, conducts customer research, considers bil impact of programs, and modifies programs through time, based on customer feedback. However, it is difficult for Idaho Power to determine the cost-effectiveness of the Easy Upgrades program from the participant perspective due to the following variables: determination of non-energy benefits, forecasting of electricity rates to determine bil impacts, and assumptions of business practices. The Company does provide a tool for commercial customers to estimate simple payback for projects applied for in the Program. This tool is provided to commercial customers to assist them in making a decision to participate in the Program. Along with simple payback in years, the calculator provides an estimated net return on investment for the customer. Idaho Power expects that its customers wil evaluate the benefits and costs associated with their projects and make a decision based on their own business modeL. Idaho Power considers its commercial customers astute business people and as such would not IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 21 participate it the Easy Upgrades program if it was not cost-effective from their perspective. According to the "Electric Power Research Institute End Use Technical Assessment Guide" ("TAG") manual (page 1-13) the Participant Cost test is ". . .a measure for the average customer expected to participate." For the Easy Upgrades program, it is very difficult to define an average customer since each project is unique and a wide variety of businesses participate in the Program with different levels of involvement. The TAG manual also points out that, "High program penetration rates are unlikely with low participant benefi-cost ratios." Since its beginning, the Easy Upgrades program has continued to increase participation at a rapid rate that is indicative of a high market acceptance rate. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 22 REQUEST NO. 11: Given that Idaho Power's first formal post-implementation evaluation of the Easy Upgrade Program is not planned until 2010, on what basis does Idaho Power believe the Commission should find that Idaho Power's expenses of $0.7 million from 2006 through 2007 were reasonable and prudent? RESPONSE TO REQUEST NO. 11: The Idaho Public Utilties Commission ("Commission") should determine that the expenses associated with the Easy Upgrades program ("Program") were reasonable and prudent based on the fact that the Program cost-effectiveness benefit/cost ratios stated in the Application are 3.54 from the Utilty Cost ("UC") perspective and 1.38 from the Total Resource Cost ("TRC") perspective. The Program life cost-effectiveness benefit/cost ratios calculated from actual expenses and savings shown in Appendix 4 of the Demand-Side Management 2008 Annual Report are 3.88 from the UC perspective and 1.21 from the TRC perspective. Additionally, the Company has conformed both in the spirit and the letter of Commission orders pertaining to demand-side management ("DSM") programs. Idaho Power formed an Energy Efficiency Advisory Group ("EEAG"). This advisory group is made up of a diverse membership that attempts to represent the interest of the various customer classes. The EEAG includes representation from the Idaho Public Utilities Commission Staff, the Public Utility Commission of Oregon Staff, representatives from the Industrial, Commercial, and Residential class as well as regional energy efficiency experts and representatives from the environmental community. The original design of this Program was vetted through the EEAG. It was the goal of the Company to develop a Program that provided a way for commercial customers to achieve energy efficiency through a simple process. Prior to IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 23 implementation, the Company determined this Program to be cost-effective based on the best information available at the time of design and development. The Company has modified this Program based on new information when made available. Some of these modifications included a review of the measures initially offered in the Program and adjusting the Program as necessary. As described in the Application, in 2008, Idaho Power reviewed the lighting measures offered in the Program and adjusted the categories for metal halide measures with minimum energy savings requirements to make certain the cost-effectiveness of those measures. Idaho Power reports on this Program to both the EEAG and the Commission through regular EEAG meetings and its annual DSM report. It is common that many DSM programs incur relatively high costs during their early years. It is expected that startup costs of DSM programs wil decline and will be a small component of the life-cycle costs of a program. Idaho Power launched the Easy Upgrades program in 2007. All the expenses for 2006 and many of the expenses for 2007 were dedicated to Program development costs. Idaho Power's 2008 Demand- Side Management Annual Report shows that Program participation has continued to grow, indicating a successful Program design and deployment. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 24 REQUEST NO. 12: At the top of page 5 of the AlC Cool Credit program description included in Attachment 1, Energy Efficiency Rider Expense Documentation, is the statement that "The AlC Cool Credit continues to perform as expected by the Company." Please explain how this statement aligns with participation growth rates that have been significantly and consistently below the Company's targeted/expected growth rates? RESPONSE TO REQUEST NO. 12: The purpose of the AlC Cool Credit program ("Program") offered by Idaho Power ("Company") is to reduce summer peak demand on the Company's electrical system. The load reduction capabilties of the Program have been evaluated on several occasions, as described in the Application, and the results indicate the Program has been successful in reducing summer peak demand. The Program is performing as expected as a cost-effective demand-side management ("DSM") resource. Idaho Power disagrees with the assumption in the Request that the growth rate for the AlC Cool Credit Program has been significantly and consistently below the Company's expected growth rate; in fact, since filing the Application in March, the Company has added 6,840 participants. With its current participation of approximately 30,000, Idaho Power believes the Program is ramping up to its targeted goal of 40,000 customers at a reasonable pace. When the Program was first developed, a forecast of participation was estimated based on the best information Idaho Power had at the time. As with any forecast assumption for a Program that wil run over several years, it is rational to expect that Program experience, economics, and market research over time provide improved IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 25 information for estimating future Program performance. The Program is performing as expected based on forecasted participation as presented in its Application in this case. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 26 REQUEST NO. 13: The "Program Analysis and Validation" and "Program Evaluation" sections of the AlC Cool Credit program description included in Attachment 1 and the three Summit Blue evaluations (provided in IPC's Response to Production Request 91 in IPC-E-08-10) describe how the program's peak load savings were calculated and verified and offer some insights into quality assurance and customer satisfaction. However, Idaho Power has not provided for Commission review any overall program evaluation (marketing and process, in addition to impact) that might explain: 1) why participation in the program consistently lags the Company's targets; 2) why invitations to participate are not more efficiently and more effectively targeted; 3) how the several program gliches were allowed to occur. Given the above, combined with the program's current lack of cost-effectiveness, on what basis does Idaho Power believe the Commission should find that Idaho Power's expenses of $2.4 millon from 2003 through 2007 were reasonable and prudent? RESPONSE TO REQUEST NO. 13: The Idaho Public Utilties Commission ("Commission") should determine that the expenses associated with the AlC Cool Credit program ("Program") were reasonable and prudent based on the fact that the Company has conformed both in the spirit and the letter of Commission orders pertaining to demand-side management ("DSM") programs. Idaho Power formed an Energy Efficiency Advisory Group ("EEAG"). This advisory group is made up of a diverse membership that attempts to represent the interest of the various customer classes. The EEAG includes representative from the Idaho Public Utilties Commission Staff, the Public Utility Commission of Oregon Staff, representatives from the Industrial, IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27 Commercial, and Residential class as well as regional energy effciency experts and representatives from the environmental community. The original design of this Program was supported by the EEAG. The Company has modified this Program through the years based on new information when made available. Some of these modifications include using load control switches rather than programmable thermostats and using switches that are compatible with automated metering infrastructure. Idaho Power reports on this program to both the EEAG and the Commission through regular EEAG meetings and its annual DSM report. In the case of the AlC Cool Credit program, the historical Program performance with respect to participation rates is reasonable and demonstrates the Program's success. Program participation estimates are more difficult to estimate when planning and developing programs than they are looking back in time when the participation rate is known. The participation forecast assumptions during AlC Cool Credit program development were reasonable based on the eligible market, estimates of penetration, and dropout rates. Participation continues to increase on an annual basis toward the targeted enrollment of 40,000 participants. Idaho Power disagrees with the assumption in the request that the AlC Cool Credit program lacks cost-effectiveness. This Program, like many demand response programs, incurs many costs at the beginning of its life cycle necessitating a longer view of cost-effectiveness. In Case No. IPC-E-04-27, the Company's original application to implement the Program, Idaho Power stated that the benefit-cost ratio from the Utility Cost perspective would be 1.07 by year ten and 1.42 over a 30-year operation period. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28 The Commission approved this filing in Order NO.29702 and stated in its order: We note that the Company has calculated a positive cost benefit ratio for the Program and expects it to be cost effective over its 30-year life. The Energy Efficiency Advisory Group also generally supported the Program. Consequently, we find that it is in the public interest for Idaho Power to implement its AC Program. Current analysis shows that by year twenty the program will have a benefit-cost ratio of 1.38 from the Utiliy Cost perspective and 2.73 from the Total Resource Cost perspective. The Company now anticipates the Program wil be cost-effective on an annual basis as early as year eight of the Program's life cycle. This is based on continual increased Program participation and the Company's efforts to manage costs efficiently. The Company also disagrees with the assumption contained in the Request that invitations to participate have not been efficiently and effectively targeted. Upon initial Program roll-out, the Program sought enrollment from all eligible customers as defined in Idaho Power Service Schedule 81. As participation in the Company's energy efficiency and demand response Programs has expanded, Idaho Power has acquired experience and tools to more accurately identify characteristics and demographics of participants. The Company reviewed AlC Cool Credit participants looking for trend that indicate attributes of Program participation. By identifying customer trends, Idaho Power wil more accurately target those customers who have not enrolled in the Program but have similar demographic information as Program participants. While marketing the Program, Idaho Power has utilzed various methods for attracting participants and has carefully tracked these efforts. For example, the Company initiated joint bill stuffers as recommended by the EEAG and has utilzed IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29 cause-related marketing techniques. It has been Idaho Power's experience that, where possible, directly mailed plain letters along with cards explaining frequently asked questions has been one of the more successful tools for attracting new participants to the Program. These are relatively inexpensive to produce. This marketing experience has enabled the Company to be more efficient in expanding Program participation. A Program of the magnitude of AlC Cool Credit is likely to experience some "glitches" along the way. However, the assumption in the Request that these are "allowed" to occur is incorrect. As described in the Application, the AlC Cool Credit program has experienced some issues. Idaho Power took appropriate steps to mitigate these issues, including having all costs reimbursed by the Program contractors. Idaho Power has used the experience to improve Program delivery and the Company is actively using its experience in operating this Program to prevent similar problems from occurring in the future. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 30 REQUEST NO. 14: The "Program Cost Effectiveness" section of the Heating and Cooling Efficiency program description included in Attachment 1, Energy Efficiency Rider Expense Documentation, explains that the program's lack of cost-effectiveness in 2006 and 2007 was due to startup costs that remained unexpectedly high and participation that was lower than expected. With program changes Idaho Power said it expected cost-effectiveness wil be achieved in 2009. Please explain the basis for the Commission to find that Idaho Power's expenses of $0.5 million from 2006 through 2007 were reasonable and prudent? RESPONSE TO REQUEST NO. 14: The Idaho Public Utilities Commission ("Commission") should determine that the expenses associated with the Heating and Cooling Efficiency program ("Program") were reasonable and prudent based on the fact that the Company has conformed both in the spirit and the letter of Commission orders pertaining to demand-side management ("DSM") programs. Idaho Power formed an Energy Efficiency Advisory Group ("EEAG"). This advisory group is made up of a diverse membership that attempts to represent the interest of the various customer classes. The EEAG includes representative from the Idaho Public Utilities Commission Staff, the Public Utilty Commission of Oregon Staff, representatives from the Industrial, Commercial, and Residential class as well as regional energy effciency experts and representatives from the environmental community. The original design of this Program was vetted through the EEAG. It was the goal of the Company to develop a Program that specifically targeted energy savings associated with heating and cooling equipment. The Program was designed to focus on moving the market toward higher quality equipment installations and training/educating IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 31 contractors to enhance energy efficiency, as opposed to a rebate only Program. The Company determined this Program to be cost-effective based on the best information available at the time of design and development. The Company has modified this Program based on new information when made available. Some of these modifications included a review of the measures initially offered in the Program and adjusting the Program as necessary. Idaho Power reports on this Program to both the EEAG and the Commission through regular EEAG meetings and its annual DSM report. DSM programs incur costs during their development and startup years. Typically, it is expected that startup costs would be a small component of the life-cycle costs of a program. However, in the case of the Heating and Cooling Efficiency program, it became evident that some of the startup costs associated with the Program were ongoing costs that would likely continue. Some of the high Program costs were associated with contractor training. After the Program began operating, it became apparent that because of installer turnover and the addition of new participating contractors, the training expenses would continue and become an ongoing expense. Additionally, the proportion of projects that included measures later to be found not cost- effective, coupled with lower than expected participation with measures that were highly cost-effective, resulted in a Program that did not pass cost-effectiveness tests as originally designed. Therefore, the Company analyzed the measures that would result in a cost- effective Program and initiated changes to ensure the program's cost-effectiveness. The Company communicated the cost-effectiveness issues to the EEAG and proposed the revised Program offering. With the EEAG's concurrence, Idaho Power adjusted the IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 32 Program and removed non cost-effective measures with the expectation the Program would provide cost-effective energy savings through the measures that were cost- effective. It is reasonable and prudent to adjust a program's offerings and expenses during the early implementation to maintain cost-effectiveness. When the Company initiates new programs, it makes estimates of costs, customer behavior, vendor behavior and energy efficiency levels with the best information at the time. Most of the current Company programs began in this fashion and show the Company's ability to successfully forecast and plan program deployments. However, even using the best available estimates, there can be unforeseen costs and market behaviors. Without the benefit (and the attendant delay) of using pilots for each new program, the Company should not be penalized when it initiates a new program that has all initial indicators of a cost-effective program - including the concurrence of EEAG - and yet those initial indicators do not materialize in the market. When it was discovered that the initial estimates were not being realized, the Company reacted to the situation and changed the Program to its current cost- effective state. The response to this Request was prepared by Pete Pengily, Customer Research and Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 33 REQUEST NO. 15: The table on page 2 of the Building Operator Training program description included in Attachment 1, Energy Effciency Rider Expense Documentation, includes benefit/cost (B/C) ratios of 8.31 from the utility perspective and 8.08 from the total resource cost perspective for this program's operation in 2003 and 2004. Under the "Program Development" heading, Idaho Power stated that this training program was terminated due to its resources being needed to develop the Custom Efficiency and Building Effciency programs. IPC's 2008 DSM Report shows these latter two programs having much lower purported B/C ratios than shown for the defunct Building Operator Training program. Please explain how it was prudent to end a more cost-effective program in order to use that program's resources for less cost-effective programs. RESPONSE TO REQUEST NO. 15: Ending the Building Operator Training program and shifting resources to developing the Custom Efficiency and Building Efficiency programs provided a better program portolio, acquired greater energy savings, and was a reasonable and prudent management decision. The Building Operator Training program ("Program") was essentially a niche program, offered to school and university customers in response to a time of tight school budgets. It was available only to a very narrow segment of the overall commercial customer segment. The Program was offered for two years and Company records show 104 customers participated, indicating a large portion of the eligible participants had either attended or had the opportunity to attend the training. Custom Efficiency and Building Efficiency programs are designed to be available to a broad customer base as well as to capture lost-opportunity energy efficiency in the IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 34 commercial and industrial new construction market segments. These programs provide a larger amount of energy savings over time than the Building Operator Training program. It was more efficient, logical, and prudent to utilze limited Rider resources for broader-based program offerings, including the Custom Efficiency and Building Efficiency programs. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, and Darlene Nemnich, Senior Pricing Analyst, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 35 REQUEST NO. 16: In the last paragraph of the first page (Page 11) of the Cost- Effectiveness description included in Attachment 1, Energy Efficiency Rider Expense Documentation, Idaho Power states that it relies on the Electric Power Research Institute End Use Technical Assessment Guide (TAG) and the California Standard Practice Manual to assess the cost-effectiveness of its DSM programs. Both of these cost-effectiveness guides state that the benefits of energy efficiency programs should be expressed as "net benefits," Le. excluding energy efficiency benefits that would have occurred in the absence of programs. Please list each of Idaho Power's programs with an indication of whether the benefit/cost ratio is calculated using net benefits or gross benefits. For those programs in which net benefits were used, provide a brief description of how net benefits were estimated. For those programs in which net benefits were not used, explain why not. RESPONSE TO REQUEST NO. 16: On February 18, 2009, Idaho Power ("Company") and the Idaho Public Utilties Commission Staff ("Staff') filed a Stipulation in Case No. IPC-E-08-10 regarding the prudency of a portion of expenses Idaho Power incurred from 2002-2007 funded by the Company's Energy Efficiency Rider ("Rider"). As a result of that filing, the Company filed Case No. IPC-E-09-09, seeking prudency determination of the balance of the Rider funded expenses incurred between 2002-2007 on the following programs or cost categories: Irrigation Efficiency Rewards ENERGY STAR(6 Lighting Building Efficiency Easy Upgrades AlC Cool Credit Heating and Cooling Efficiency Home Products (Appliance) Program Building Operator Training Indirect Program Expenditures IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 36 The Company interprets Staffs Request No. 16 to pertain to these nine programs or expense categories; however, the request is not applicable to the Indirect Program Expenditures category, since this category does not claim energy savings. Additionally, as a point of clarification, the "California Standard Practice Manual: Economic Analysis of Demand-Side Programs and Projects," July 2002, on page 27 states: The development and treatment of load impact estimates should distinguish between gross (Le., impacts expected from the installation of a particular device, measure, appliance) and net (impacts adjusted to account for what would have happened anyway, and therefore not attributable to the program). Load impacts for the Participants test should be based on gross, whereas for all other tests the use of net is appropriate. Gross and net program impact considerations should be applied to all types of demand-side management programs, although in some instances there may be no difference between gross and net. Idaho Power applies a net-to-gross ("NTG") ratio directly in the calculation of the benefit/cost ("B/C") ratios for the ENERGY STARlB Lighting, the Heating and Cooling Efficiency, and the Home Products programs. Demand reduction from the AlC Cool Credit program, like many demand response programs, is estimated from actual sample end use data logging and as such, has a realization rate captured in the analysis. Similarly, the Building Operator Training program estimated savings value already accounts for free ridership in its calculation method. The Company does not apply a NTG ratio in the calculation of the B/C ratios for the more complex Irrigation Efficiency Rewards, Building Efficiency, and Easy Upgrades programs. For these more complex programs with multiple measures, it is difficult to determine a simple NTG ratio. It is also difficult to quantify how many projects were IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 37 completed outside the Company's programs which were influenced by the energy efficient techniques advocated by the Company's energy efficiency and education programs. The Company does not claim any energy savings from this practice known as "free-drivership." Irrigation Efficiency Rewards: See the Company's Response to Staffs Request NO.2. ENERGY STAR~ Lighting: As stated in the Application, Idaho Power uses 32.8 kWh per compact fluorescent light ("CFL") bulb in its analysis for cost-effectiveness. This energy savings estimate is derived from regional analysis and accounts for a variety of factors. These factors include installation of CFL bulbs in a variety of lighting fixtures and bulbs that are purchased in Idaho Power's service territory but assumed to be installed by out-of- service participants. The actual calculation of the energy savings is derived from the Northwest Power and Conservation Council's Regional Technical Forum ("RTF") "deemed" annual site savings of 41 kWh at the customer level multiplied by a net-to- gross ("NTG") factor of 0.8. (Source: the Database for Energy Efficiency Resources ("DEER")). Building Effciency: See the Company's Response to Staff's Request NO.7. Easy Upgrades: Energy savings provided by the Easy Upgrades program are estimated using the best information on a case-by-case basis, similar to the Building Efficiency Program. The Company has based its energy savings estimates and cost-effectiveness analysis IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 38 for each measure offered through Easy Upgrades using conservative energy savings estimates from reliable resources, such as the Northwest Power and Conservation Council, the Regional Technical Forum ("RTF"), NEEA, E Source, the Database for Energy Efficiency Resources ("DEER"), the Energy Trust of Oregon ("ETO"), Bonneville Power Administration ("BPA"), third-party consultants, and other regional utilties. Most of these energy savings do not have NTG ratios applied. For each measure or groups of measures in the program free-ridership or NTG ratios can be viewed differently and as such, are difficult to determine with any certainty. AlC Cool Credit: Demand Response programs are unique from energy efficiency programs when adjusting for load reductions achieved when considering whether or not a participant would have contributed to load reduction in the absence of the Program. In the case of AlC Cool Credit, as described in the Application, the analysis described that was conducted by Summit Blue Consulting consisted of using a sample of participants whose air conditioning run-time was logged to estimate the load reduction per unit. The data used in the analysis represented the air conditioners that would have been on or off when load control events were initiated and consequently accounted for the net load reduction in the analysis. Heating and Cooling Effciency: The cost-effectiveness of the Heating and Cooling Efficiency program included the application of a NTG factor of 0.8 to the energy savings associated with the Program. (Source: the Database for Energy Efficiency Resources ("DEER")). IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 39 Appliance Program: The cost-effectiveness of the Appliance program included the application of a NTG factor of 0.8 to the energy savings associated with the Program. (Source: the Database for Energy Effciency Resources ("DEER")). Building Operator Training: Idaho Power did not explicitly use a NTG factor when calculating the program savings as described in the Energy Efficiency Rider Expense Documentation. However, the derivation of the 0.5 kWh/if savings assumption was cross validated by several studies. One of these studies used a control group of non-student operators when determining savings. Therefore, it is assumed that the 0.5 kWh/if value already accounts for free ridership in its calculation method. The response to this Request was prepared by Pete Pengilly, Customer Research and Analysis Leader, and Darlene Nemnich, Senior Pricing Analyst, Idaho Power Company, in consultation with Lisa D. Nordstrom, Senior Counsel, Idaho Power Company. DATED at Boise, Idaho, this 4th day of August 2009. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 40 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 4th day of August 2009 I served a true and correct copy of the IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Weldon B. Stutzman Deputy Attorney General Idaho Public Utilties Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 -2 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email Weldon.Stutzmancæpuc.idaho.gov ~JZlr~ iSÑÕ rd strom IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 41 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-09-09 IDAHO POWER COMPANY RESPONSE TO STAFF'S REQUEST NO.6 RECEIVF=tì..-';,,.., ZOD9 AUG -4 PM 4: 49 IDAHO PUPl ¡(" UTILITIES COM';¡¡Å SiON Consumer Lighting Study FINAL REPORT Prepared for Idaho Power Company Boise, Idaho Prepared by KEMA Inc. Oakland, California March 1, 2007 KEMA~ Table of Contents 1. Introduction ................. ......................... ........... ........................................1 1.1 Overview ................................................................................................................................... . 1 1.2 Organization of Report..... ............ ......... .... ........... .............. ..................... .... ......... ........ .............. 1 2. Approach. . .. .. . . . .. . . .,. . . .. . .. . . . . . . .. . .. . . . . .. .. . .. . .. . .. .. . . . . ... .. . .. .. . .. . ... . .. . . . . .. . . .. .. . .. . ... 1 3. CFL Awareness and Purchases .................... .........................................3 3.1 CFL Purchaser and Awareness Categories ............. ........ ........... ............... ........ ............. ............. 3 3.2 How Consumers Became Aware ofCFLs..................................................................................3 3.3 When CFL Purchases Have Occurred ........................................................................................4 3.4 Where CFLs Have Been Purchased............................................................................................5 4. CFL Disposition...................................................................................... 5 4.1 General Purchaser Statistics .......................................................................................................6 4.2 CFL Storage................................................................................................................................7 5. Satisfaction with CFLs............................................................................ 7 5.1 General Satisfaction.................................................................................................................... 7 5.2 Satisfaction with CFL Attrbutes ................................................................................................8 5.3 CFL to CFL Rep1acement...........................................................................................................8 5.3.1 Replacement Intentions .................................................................................................8 5.4 Incandescent to CFL Replacement .............................................................................................9 5.4.1 Replacement Intentions .................................................................................................9 5.4.2 Factors Affecting Incandescent to CFL Replacement Intentions ................................ 10 5.5 Factors Preventing Increased Satuation ofCFLs ....................................................................10 5.6 Best Features ofCFLs ..............................................................................................................11 6. Future CFL Purchases ......... ........ ......................... ... ............................12 6.1 Likelihood of CFL Purchases within a Year ............................................................................ 12 6.2 Reasons for Being Unlikely to Purchase CFLs ....... ...... ................. ........ ......... ................ ......... 13 6.3 Likelihood ofCFL Purchases within a Year ............................................................................14 6.4 Potential CFL Purchases Next year..... ........... ....... ........ ................ ... .... ..... ......... .... ....... .......... 14 7. Compact Fluorescent Fixtures..............................................................15 7.1 CF Fixture Awareness and Purchase..... ......... ......... ......... ......... ......... .... ..... ......... .................... 15 7.2 How Consumers Became Aware ofCF Fixtues...................................................................... 16 7.3 Reasons for CF Fixtue Puchase ............................................................................................. 17 7.4 CF Fixture Installation Locations .............. ......... .............. .... .................. ......... .......... ............... 17 7.5 Satisfaction with CF Fixtures ........ ...... ....... ......... ................. .......... ...... ......... ............. .......... .... 17 8. Summary of Findings...... ......................................... ...................... ....... 18 Appendix A. Survey Instrument................................................................ A-1 Appendix B. Sampling Details.................................................................. B-1 Appendix C. Banner Tables ..................................................................... C-1 Idaho Power Company Consumer Lighting Study February 23, 2007 KEMA~ Table of Contents List of Tables Table 1 IPC 2006 Consumer Survey Completes by Source ......................................................................... 2 Table 2 IPC 2006 Consumer Surey Completes by State....... ........ ...... ...... ....... ... .......... ............ .... ......... .....2 Table 3 Bulb Disposition for Purchaser Homes IPC and NEEA, 2006 ........................................................ 6 Table 4 CFL Purchase Statistics IPC and NEEA, 2006................................................................................6 Table 5 Storage Rates Among Promotional and Non-Promotional Purchasers IPC and NEEA 2006 .........7 Table 6 Satisfaction with Specific Bulb Attributes IPC and NEEA, 2006 ..... .......... .............. ...... .......... ..... 8 Table 7 Reasons for Being Unlikely to Purchase CFLs within the Next Year IPC and NEEA, 2006........ 13 Table 8 Source of First Awareness of CF Fixtures (Among Respondents Aware of CF Fixtures) IPC and NEEA, 2006 ........................................................................................................................................ 16 Table B-1 Population Distrbution and Sample Allocation by Strata Base NEEA Surveys................ ...B-3 Table B-2 Consumer Lighting Survey Purchaser Completes, Base NEEA Sureys Plus IPC Overs ample (total n=667) ...... ................................... .............. ................... ... ... .............. ... ............... ....B-3 List of Figures Figure 1 Consumer Awareness and Purchaser Categories IPC and NEEA 2006........................................ 3 Figure 2 How Consumers Became Aware of CFLs IPC and NEEA, 2006 ..... ......... ......... .... ...... ....... ..........4 Figure 3 Date of First CFL Purchase and Date of Most Recent CFL Purchase IPC 2006... .................. .......4 Figure 4 CFL Purchase Locations IPC 2006 ..... ............ ...... ......... ............. ......... .............. ......... ...... ........ ..... 5 Figure 5 General Satisfaction with CFLs IPC and NEEA 2006 ..... ............ ...... ...... ......... ......... ..... .............. 8 Figure 6 Likelihood of Replacing a CFL with a CFL Upon Burnout IPC and NEEA, 2006 ......................9 Figure 7 Likelihood of Replacing an Incandescent Bulb with a CFL upon Burnout IPC and NEEA, 2006 ..............................................................................................................................................................9 Figure 8 Factors Influencing Incandescent to CFL Replacement Likelihood Among Aware Respondents Who "Possibly Wil" Replace a Burned-out Incandescent with a CFL IPC and NEEA, 2006 .......... 10 Figure 9 Main Factor Preventing Increased Satuation of CFLs in Home Among Respondents with One or More Incandescent Bulbs Installed IPC, 2006.. .... ....... ..... ......... ..... ......... ......... .......... ......... ........ ....... 11 Figure 10 Best Featues ofCFLs IPC, 2006 ...............................................................................................11 Figure 11 Likelihood ofCFL Purchase within the Next Year IPC, 2006...................................................12 Figure 12 Combined Likelihood ofCFL Purchase within the Next Year by Segment IPC, 2006 .............15 Figue 13 Compact Fluorescent (CF) Fixture Awareness and Purchase IPC and NEEA, 2006.................15 Figue 14 Satisfaction with CF Fixtures (Among CF Fixtue Purchasers) IPC and NEEA 2006.............17 Figure B-1 MSAs East and West ofthe Cascades in the Four-State NEEA Region............................B-2 Idaho Power Company Consumer Lighting Study ii February 23, 2007 KEMAIl 1. Introduction 1.1 Overview This report presents results from the consumer lighting surveys conducted in October, 2006 in the Idaho Power Company (IPe) servce terrtory. The survey was conducted to obtain consumer information regarding awareness and purchasing behaviors for compact fluorescent lights (CFLs) and compact fluorescent (CF) fixtures. Under subcontract with KEMA, an experienced survey research firm conducted these sureys as part of a broader study of the region served by the Nortwest Energy Effciency Allance (NEEA; including Idaho, Montana, Oregon, and Washington). A total of 500 surveys were initially completed in NEEA's service area, which included 79 surveys in IPC service terrtory. An additional 167 surveys were completed in IPC's service tertory, bringing the total for IPC surveys to 246. Trained interewers conducted the sureys via telephone. The survey script is included as Appendix A. 1.2 Organization of Report In the next section of the report, we provide an overvew of our analysis approach. The remainder of the report is organized by the following topics: · CFL awareness and purchases; · Disposition ofCFLs in purchasers' homes; · Satisfaction with CFLs; · Future CFL purchase intentions; and · Summary of findings. 2. Approach The survey data analyzed for this study came from two distinct samples including the base NEEA surveys and the IPC oversample surveys. 1. Base NEEA Surveys. KEMA conducted the base NEEA surveys with a random strtified sample of households in Oregon, Washington, Montana, and Idaho in November 2006. We oversamp1ed non-metropolitan areas based on classification of counties as inside or outside of Metropolitan Statistical Areas (MSAs) 1, location east and west of the Cascades mountain range, and state. Five hundred surveys were completed in NEEA's serce area, of which 79 were in Idaho Power Company's servce terrtory. The NEEA data reported in this document is weighted so that results are representative of the Northwest residential population.2 i Metropolitan Statistical Areas (MSAs) are geographic entities defined by the U.S. Offce of Management and Budget, each of which contains a core urban area of at least 50,000 residents. MSAs consist of one or more counties and include the counties containing the core urban area as well as any adjacent counties that have a high degree of social and economic integration (as measured by commuting to work) with the urban core. For the most up-to-date lists ofMSAs and their component counties, see the US Census website at htt://ww .census.gov /population/ww /estimates/metrodef.html.2 Appendix B provides additional information on weighting for the NEEA survey and the sampling approach for both the base NEEA survey and IPC oversample surveys. Idaho Power Company Consumer Lighting Study February 23, 2007 KEMA~ 2. IPC Oversample Surveys. An additional 167 IPC surveys were conducted based on a simple random sample of households within the service tertory, bringing the total ofIPC surveys up to 246. Table 1 and Table 2 show the distrbution of the 246 completed sureys in IPC's service area by source (NEEA base surveys or IPC oversample) and by state.3 Table 1 IPC 2006 Consumer Survey Completes by Source Completed Surveys Source n % NEEA Base Surveys 79 28% IPC Oversample Surveys 167 72% Total 246 100% Table 2 IPC 2006 Consumer Survey Completes by State Completed Surveys State n % Idaho 244 99% Oreoon 2 1% Total 246 100% We analyzed the 2006 survey data to understand consumer awareness and purchasing behaviors in IPC's service terrtory. We also compared results of the IPC surveys with results from surveys conducted in the broader NEEA servce area where differences were meaningful and significant.4 One of the most important segmentations we used was a set of three mutually exclusive groups based upon respondent experience with CFLs. These groups were developed and used for prior surveys in NEEA's service area, and include: .Purchasers, which includes respondents who reported one more or more CFL purchases at any time; Aware Non-Purchasers, which includes respondents who indicated awareness ofCFLs but reported never having purchased any CFLs; and Unaware (Non-Purchasers), including respondents who reported no CFL purchases and had no awareness of CFLs prior to the surey. 5 . . Appendix C includes cross-tabulations for each surey question in banner format. 3 The two surveys completed in Oregon were from the base NEEA surveys. 4 All statistically significant results are at the 90 percent level of confidence unless otherwise stated in the text. 5 The survey script (see Appendix A) includes a brief description of CFLs that was read to respondents who were unaware of CFLs in an unprompted recall; this segment includes only those respondents who were stil unaware after hearing the CFL description. Idaho Power Company Consumer Lighting Study 2 February 23, 2007 3. CFL Awareness and Purchases This section begins with results on CFL purchaser and awareness categories, which were described above. Next we discuss how aware respondents first learned ofCFLs, when purchases occured, and where purchases occurred. Finally, an overview of purchaser statistics is provided. 3.1 CFL Purchaser and Awareness Categories Figure 1 compares the percentages of consumers who report awareness and purchase of CFLs in the 2006 consumer lighting study within both the IPC and NEEA serce areas. Although the difference is not statistically significant, the proportion of purchasers in NEEA's service area (67%) is greater than in IPC's serice area (58%). There is a statistically significant difference, however, in the proportion of aware non-purchasers in each service area: the proportion is higher in IPC's serice area than in NEEA's. One possible explanation for this difference is that NEEA's serice area includes a number of geographic areas (e.g., the Puget Sound area) in which CFL promotions have been active for many years. Figure 1 Consumer Awareness and Purchaser Categories IPC and NEEA 2006 IPC (n=246)NEEA(n=667) . Difference betwen IPC and NEEA Aware Non-Purchasers is statistically significant at the 90 percent level of confidence. 3.2 How Consumers Became Aware of CFLs When respondents aware of CFLs were asked how they first heard about CFLs, they mentioned noticing CFLs in stores more than any other source (39%; see Figure 2). The proportion of consumers who cited this source in IPC's service tertory is statistically significantly higher than the proporton in NEEA's service area (27%). The next most comIlon source of awareness among IPC customers was adverising; the proportion of respondents citing television, news, magazine, radio, or Interet advertisements as the source of first awareness was 34 percent. After advertising, IPC consumers cited word of mouth (19%) followed by information from their utility (8%). Idaho Power Company Consumer Lighting Study 3 February 23, 2007 K£JVAI! Figure 2 How Consumers Became Aware ofCFLs IPC and NEEA, 2006 Utility Noticed them in store Mi.rtising Word of mouth Sales person Oter 0%10%20%30%40%50% * Difference between IPC and NEEA is statistically significant at the 90 percent level of confidence. 3.3 When CFL Purchases Have Occurred Figure 3 below shows two distrbutions for CFL purchaser. The first colum of the series indicates the year in which CFLs were purchased for the firt time, and the second column the year in which CFLs were most recently purchased. As shown, nealy th-fours of purchasers bought CFLs in 2006 - and 28 percent bought them for the first time ever in 2006. Distrbutions are similar in NEEA's service area. Figure 3 Date of First CFL Purchase and Date of Most Recent CFL Purchase IPC 2006 1I~ First Purchase (n=137) II Most Recent Purchase (n=136) I80% 60% 40% 20% 0% Before 2001 2001-2004 2005 2006 Idaho Power Company Consumer Lighting Study 4 Febrnary 23, 2007 KEMA~ 3.4 Where CFLs Have Been Purchased As shown in Figure 4, just under half of ¡PC customers who have purchased CFLs reported that at least one of their past CFL purchases was made in a Do- It-Yourself (DIY) store such as Home Depot or Lowe's (45%). The next most common place where CFLs were purchased is mass merchandise stores such as K-Mart and Wal-Mar (23%), followed by warehouse stores such as Costco and Sam's Club (11 %) and hardware stores such as Ace and True Value (8%). Five percent more customers purchased CFLs in hardware stores in NEEA's serice area as a whole than in ¡PC's terrtory alone (13% and 8%, respectively); this difference is statistically significant. Figure 4 CFL Purchase Locations IPC 2006 DIY stores 45° Mass merchandise stores 23% Warehouse stores Hardware stores Supermarkets Lighting supply stores Pharmacy/Drug Stores Other 0%10%20%30%40%50% n=145. 4. CFL Disposition This section presents results on CFL installation, storage and removal for all CFLs that purchaser households have acquired over time. Table 3 compares ¡PC and NEEA disposition results. As of October 2006, purchaser households in ¡PC serice teritory had 7.4 CFLs curently installed on average, with an additional 4.6 CFLs in storage. The differences between ¡PC and NEEA service areas in the mean number of bulbs installed and in storage per purchaser household are statistically significant, with a greater number of installed and stored in ¡PC's service area than in the NEEA's service area as a whole. Idaho Power Company Consumer Lighting Study 5 Febrnary 23, 2007 KEMA~ All Purchasers IPC NEEA (n=142)(n=411\ Disposition of All Bulbs Ever Acquired Mean %Mean % Bulbs currently installed per purchaser home 7.4*53%6.3*68% Bulbs ever removed per purchaser home 2.1 15%0.4 4% Bulbs currently stored per purchaser home 4.6*33%2.6*28% Total number of bulbs ever acquired oer home 14.1 100%9.3 100% Purchaser base (% of total; IPC n=246; NEEA n=667)58%67% Table 3 Bulb Disposition for Purchaser Homes IPC and NEEA, 2006 . Differences between IPC and NEEA means are statistically significant at the 90 percent level of confidence. 4.1 General Purchaser Statistics Table 4 presents a summary of CFL purchase statistics among CFL purchasers surveyed in 2006 (in IPC and NEEA service areas). As shown, CFL purchaser in IPC's service terrtory have, on average, bought CFLs on approximately 5 occasions as of October, 2006. On average, IPC purchaser households bought 10 CFLs in 2006, a greater number than in NEEA's service area.6 IPC consumers recall paying about $4.30 per CFL during their most recent purchase (refer to Figue 3 for the distribution of the "most recent purchase")? Twenty-seven percent ofIPC CFL purchasers report having made their most recent CFL purchase during a promotion. All Purchasers IPC NEEAPurchase Statistics (n=142)(n=411) Mean number CFL ourchase occasions ever 4.8 4.4 Mean number CFLs ourchased in cast vear 10.0 6.4 Mean CFL price for individually-packed bulbs during most recent ourchase $4.30 $5.40 Promotion durina most recent ourchase 27%35% Table 4 CFL Purchase Statistics IPC and NEEA, 2006 6 This difference is not statistically significant at the 90 percent level of confidence. 7 In the 2005 and 2004 surveys in NEEA's service area, we specifically asked consumers to report the price they paid per bulb - but some may stil have provided the price per multi-pack of bulbs. In the 2006 survey we asked consumers to report separately on the per-package price for bulbs purchased singly and in multi-packs, but again we cannot be sure that respondents reported the distinction accurately. Self-reported consumer CFL price data is generally unreliable because of the multi-pack issue and the diffculty in accurately recallng prices for small purchases such as these. Idaho Power Company Consumer Lighting Study 6 Febrnary 23, 2007 4.2 CFL Storage Fifty-six percent of purchasers surveyed in IPC tertory in 2006 (32 percent of all respondents) report that they are storing one or more CFLs for use as spares. This proportion is similar to the proportion across all ofNEEA's service area. Purchasing CFLs during a promotion leads to a higher incidence of storage (Table 5). CFL storage rates are higher among purchasers whose most recent purchase occurred durng a promotion and those whose most recent purchase did not in both IPC's serice territory and NEEA's service area as a whole. The average number of bulbs in storage from the most recent CFL purchase is higher among promotional purchasers in IPC's service area (4.1 vs. 3.8) and in NEEA's servce area (2.2 vs. 1.4; a statistically significant difference). Table 5 Storage Rates Among Promotional and Non-Promotional Purchasers ¡PC and NEEA 2006 Most Recent Purchase During a Not During a Service Area Promotion Promotion IPC 64%56% NEEA 66%*52%* ipe Promo n=33; Non-Promo n=89. NEEA Promo n=114; Non-Promo n=253. . Differences betwen promotional and non-promotional purchasers are statistically significant. 5. Satisfaction with CFLs This section describes several indicators of satisfaction with CFLs: · General satisfaction with CFLs; · Satisfaction with CFL attrbutes; · Likelihood of CFL to CFL replacement; and · Best features of CFLs. 5.1 General Satisfaction Survey respondents were asked to indicate their level of general satisfaction with CFLs on a ten-point scale, with 1 being "not at all satisfied" and 10 being "ver satisfied." Approximately 86 percent ofCFL purchasers are at least somewhat satisfied with CFLs in IPC's serice terrtory (Figure 5). The mea CFL satisfaction rating among purchasers within IPC's service tertory is 8.0, the same as in NEEA's service area as a whole for 2006. Idaho Power Company Consumer Lighting Study 7 February 23, 2007 Figure 5 General Satisfaction with CFLs ¡PC and NEEA 2006 il Very Satisfied (9-10) II Satisfied (6-8) o Somewhat Dissatisfied (3-5) o Dissatisfied (1-2) IPC (n=139) NEEA(n=401) 0%20%40%60%80%100% 5.2 Satisfaction with CFL Attributes The 2006 survey asked purchasers to rate their satisfaction with specific CFL attbutes on a 1 to 5 scale, with 1 being "not at all satisfied" and 5 being ''ver satisfied". These ratings are moderate to high, with length oflife and light fixtue fit receivig the highest mean ratings in IPC's serce terrtory (4.5 each; see Table 6). Results in NEEA's terrtory alone have not changed significantly since 2004. There are no statistically significant differences in satisfaction with CFL attrbutes betwee IPC and NEEA. Mean Rating All Purchasers ¡PC NEEABulb Attribute (n=142)(n=217) How lona they last 4.5 4.5 Liaht fixture fit 4.5 4.5 Color of liaht 4.2 4.0 Briahtness of Iiaht 4.1 4.0 Liaht up time 3.9 4.2 Appearance in Fixtures 3.7 3.9 Table 6 Satisfaction with Specific Bulb Attributes ¡PC and NEEA, 2006 1 =Not at all Satisfied, 5=Very Satisfied 5.3 CFL to CFL Replacement 5.3.1 Replacement Intentions Figue 6 shows the changes over time in CFL to CFL replacement intentions. We asked CFL purchasers how likely they would be to replace a CFL that has burned out with another CFL on a 5 point scale, with 1 meaning "not at all likely" and 5 meaning "very likely". Currently, 83 percent ofCFL purchasers in Idaho Power Company Consumer Lighting Study 8 February 23, 2007 IPC's serice tertory say they are very likely (a "5" rating) to replace CFLs with CFLs compared with 75 percent in NEEA's entire service area; this difference is statistically significant. Figure 6 Likelihood of Replacing a CFL with a CFL Upon Burnout IPC and NEEA, 2006 1~I 5 - Very Likely 114 0 3 0 2 111 - Not at all Likely I NEEA (n=343) IPC (n=115) 0%20%40%60%80%100% 5.4 Incandescent to CFL Replacement 5.4.1 Replacement Intentions We asked all survey respondents who are aware of CFLs how wiling they would be to replace an incandescent bulb that has burned out with a CFL. Not surprisingly as shown in Figure 7, CFL purchasers are more likely than aware non-purchasers to replace incandescent bulbs with CFLs - with about one- third saying they "definitely wil" and another 41 percent saying they "possibly wilL." There are no significant differences in the distribution of responses between IPC's service area and NEEA's. Figure 7 Likelihood of Replacing an Incandescent Bulb with a CFL upon Burnout IPC and NEEA, 2006* NEEA Purchasers (n=410) IPC Purchasers (n=214) 0%20%40%60%80%100% . Results do not total 100% because some respondents have no CFLs installed in their homes (12% of IPC respondents and 10% of NEEA respondents). As we would expect, CFL-to-CFL replacement intentions and incandescent-to-CFL replacement intentions are correlated. Ninety-seven of respondents who indicated that they "definitely wil" replace an incandescent with a CFL upon burnout indicated also that they are "ver likely" to replace a burned-out CFL with a new CFL (likelihood rating of 5). Idaho Power Company Consumer Lighting Study 9 February 23, 2007 KEMA~ 5.4.2 Factors Affectig Incandescent to CFL Replacement Intentions Respondents who indicated that they "Possibly Wil" replace an incandescent bulb with a CFL upon burnout (see Figue 7) were prompted as to whether their decision would depend on a number of different factors. When prompted, more than two-thirds in ¡PC serice tertory said that their decision would depend on whether they had incandescent bulbs in storage (69%), a statistically significantly higher proportion than in NEEA's service area as a whole (54%), indicating that perhaps a greater proportion of ¡PC customers are storing incandescents than the general population in the Northwest. The second most frequently cited reason in both ¡PC and NEEA tertories was the room in which the bulb would be located (63%; see Figure 8). Figure 8 Factors Influencing Incandescent to CFL Replacement Likelihood Among Aware Respondents Who "Possibly Wil" Replace a Burned-out Incandescent with a CFL IPC and NEEA, 2006* CFL price Incandescents in storage 69%t Location (room) CFLs in storage .IPC (n=84) II NEEA(n=246) Hours of use 0%20%40%60%80%100% * The influence of "CFLs in storage" was asked only of respondents with CFLs in storage; IPC n = 29 and NEEA n = 83. 5.5 Factors Preventing Increased Saturation of CFLs We asked respondents who had one or more incandescent bulbs installed in their homes to indicate the main factor preventing them from increasing the number of CFLs installed in their homes (Figure 9). The most common response was waiting for incandescent bulbs to burn out (24%). Nineteen percent indicated that CFL price was the main factor. There are no significant differences in the distribution of responses between ¡PC's serice area and NEEA's. Idaho Power Company Consumer Lighting Study 10 February 23, 2007 Figure 9 Main Factor Preventing Increased Saturation of CFLs in Home Among Respondents with One or More Incandescent Bulbs Installed IPC,2006 Don't know 27% Waiting for incandescent bulbs to burn out CFL price (too expensive) CFLs aren't bright enough Need 3-way bulbs Don't like the way CFLs fit in fixtures 0%5%10%15%20%25%30% n = 207. 5.6 Best Features of CFLs Figure 10 shows purchaser opinions regarding the best features of CFLs. The most commonly cited feature was CFLs lasting longer (57%), followed by saving or conserving energy (35%). There are no significant differences in the distrbution of responses between ¡PC's servce area and NEEA's. Figure 10 Best Features of CFLs IPC,2006*t Lasts longer before burning out Saves/conservs energy Reduces electricity bill/saves money Works better/is higher quality Resource conservtion benefits Other 0% 10% 20% 30% 40% 50% 60% * Question allowed multiple responses; results may not total 100%. t Question Wording: "In general, what are the best features of CFLs?" Idaho Power Company Consumer Lighting Study i i February 23, 2007 KEMA* 6. Future CFL Purchases This section presents results on stated future CFL purchase intentions - for both purchasers and non- purchasers. These results are forward-looking and wil help forecast the purchaser base for 2007. The three population segments that were introduced at the beginning of the report (Purchaser, Aware Non- Purchaser, and Unaware) are used throughout this section. 6.1 Likelihood of CFL Purchases within a Year Figure 1 i shows the distrbution of responses to the question, "How likely are you to purchase any CFLs in the next year?" Respondents used a scale from 1 to 5 with 1 meaning "not at all likely" and 5 meaning "very likely." Respondents who were unaware ofCFLs prior to the survey were first read a description of CFLs prior to being asked this question (and are refered to in subsequent figues as "informed unaware"). 8 As shown, responses differ across the thee segments, with purchasers (not surrisingly) being the most likely to intend to buy CFLs in 2007. The mean likelihood rating among Purchasers (3.9) is statistically significantly higher than the mean rating among Aware Non-Purchasers (2.2). Aware non- purchasers are the least likely to purchase CFLs within the next year. There are no meaningful differences in likelihood between IPC and NEEA. Figure 11 Likelihood of CFL Purchase within the Next Year ¡PC, 2006 III 5 - Very Likely 114 i: 3 i: 2 II 1 - Not at all Likely I Mean Purchasers (n=139)3.9* Aware Non Purchasers (n=69) Informed Unaware (n=30) 2.2* 3.3 0%20%40%60%80%100% . Differences between groups are statistically significant at the 90 percent level of confidence. t Difference between Purchasers and other groups is statistically significant at the 90 percent level of confidence. 8 The description is as follows: "CFLs use two-thirds less energy than a stadard bulb, and last up to 1 0 times as long. Some styles of CFLs are available for $2 or less - and they are about the same size and color as a standard bulb and can be installed in almost any fixture where you would put a stadard bulb. They can be purchased at the same places you purchase standard bulbs, including some drg and grocery stores. CFLs save about $30 in electricity costs over the life of the bulb. By using less energy, CFLs also help the environment." Idaho Power Company Consumer Lighting Study 12 Febrnary 23, 2007 6.2 Reasons for Being Unlikely to Purchase CFLs Respondents who reported that they were unlikely to purchase CFLs within the next year (ratings of 1 or 2 on the same 5-point scale; see Figure 11 above) were asked to explain their reasons for being unlikely. The most common reason cited by IPC Purchasers is that they are storing bulbs and thus do not need any more (51 %t The most commonly-cited reason among IPC Aware Non-Purchasers is that CFLs are too expensive (29%). As shown in Table 7 below, there are statistically significant differences between respondent groups within IPC's service terrtory and between IPC and NEEA service terrtories. Within IPC's service terrtory: . A greater proportion of Purchasers cite bulb storage as a reason for being unlikely to purchase CFLs within the next year than Aware Non-Purchasers. . A lower proportion of Purchasers cite CFL price than Aware Non-Purchasers. . A lower proportion of Purchasers are not interested in CFLs than Aware Non-Purchasers. Note that bulb storage among CFL Purchasers may include both CFLs and incandescents, while Non- Purchasers could only have incandescents in storage. These results are statistically significant at the 90 percent level of confidence. Table 7 Reasons for Being Unlikely to Purchase CFLs within the Next Year fPC and NEEA, 2006** more Reason 39 Purchasers 53% 4% 8%15% 6% 29%t 2% 2% 2% 0% 6%0% 48 129 ht 9% 6% 33% 1% 1% Don't know enou h about them to decide Not interested Hard to find 0%2% n 102 * Question allowed multiple responses; results may not total 100%. Results for "Informed Unaware" not shown because n is too small (n=8). :jShaded cells indicate statistically significant differences betwen ipe and NEEA data at the 90 percent level of confidence. t Differences between Purchasers and Aware Non-Purchasers are statistically significant at the 90 percent level of confidence. 9 This percentage may include both incandescent bulbs and CFLs. Idaho Power Company Consumer Lighting Study 13 February 23, 2007 KEMA. 6.3 Likelihood of CFL Purchases within a Year Given Additional Information To gauge whether lack of current information was impacting stated future CFL purchase intentions among those already aware ofCFLs, we read a CFL market descriptionlO to aware respondents who reported that they were unlikely to purchase CFLs within the next year (ratings of 1 and 2 on a 5 point scale where 1 means "not at all likely" and 5 means "ver likely") - the "Initially Unlikely" respondents. Then we asked these respondents whether they were more likely to purchase CFLs after hearing the description. Fift percent of IPC respondents reported that they were more likely to purchase CFLs after hearing the description and 44 percent were not more likely (the remainder said "don't know"). These results indicate that a lack of knowledge about the CFL market and the benefits of CFLs may affect the potential for future CFL purchases. These results are statistically similar to results in NEEA's serice terrtory as a whole. 6.4 Potential CFL Purchases Next Year We categorized each surey respondent based on his or her stated likelihood of buying CFLs in the next year - after hearing the CFL market description. Thus, these results represent the upper limit on CFL purchases in 2007 - since not every one who intends to buy CFLs wil, and current CFL market information wil not reach all potential purchasers. The categories are as follows: · Holdouts: consumers who have never purchased CFLs and report no intention of doing so within the next year; · Potential new purchaser: consumers who have not purchased CFLs in the past but who indicated that they are likely to do so within the next year; · Purchasers with no intent to purchase in the next year: past CFL purchasers who have no intent to purchase CFLs again within the next year; and · Purchasers with intent to purchase in the next yea: past CFL purchasers who intend to purchase CFLs again within the next year. Figure 12 shows the distrbution of survey respondents by the above categories based on 2006 results in IPC and NEEA service terrtories. Seventy-five percent of the IPC population (including past CFL purchasers and new CFL purchasers) is likely to purchase CFLs within the next year. These results are statistically similar to those in NEEA's entire serice area. 10 CFLs use two-thirds less energy than a standard bulb, and last up to 10 times as long. Some styles of CFLs are available for $2 or less - and they are about the same size and color as a standard bulb and can be installed in almost any fixture where you would put a standard bulb. They can be purchased at the same places you purchase standard bulbs, including some drg and grocery stores. CFLs save about $30 in electricity costs over the life of the bulb. By using less energy, CFLs also help the environment. Idaho Power Company Consumer Lighting Study 14 February 23,2007 Figure 12 Combined Likelihood of CFL Purchase within the Next Year by Segment ¡PC, 2006 IPC (n=246) NEE (n=667) II No prior purchase; likely to purchase wlin next year II Purchasers wIno intent to purchase in next year o Purchasers with intent to purchase in next year o No prior purchase; no intent to purchase in next year 7. Compact Fluorescent Fixtures New survey questions were added in 2006 to address awareness and purchase of compact fluorescent (CF) fixtures, also known as ENERGY STAR light fixtures. Unlike standard incandescent light fixtures that use screw-based bulbs, compact fluorescent fixtures use special pin-based CFLs that plug into the fixtures. 7.1 CF Fixture Awareness and Purchase Figure 13 shows the distrbution of surey respondents by awareness and purchases of CF fixtues. Twenty-nine percent of IPC customers are aware of CF fixtures Ii, and 9 percent have purchased one or more of them. 12 Five percent of CF fixture purchasers report purchasing one or more fixtures during a sale or promotion. As one would expect, CF fixture awareness and purchase is positively correlated with CFL awareness and purchase. There are no statistically meaningful differences in CF fixture awareness and purchase rates between IPC and NEEA serice areas. i 1 Respondents were asked the following to determine awareness of CF fixtures: "Most regular light fixtures use bulbs that screw in, but compact fluorescent fixtures use special pin-based CFLs that plug in. Pin-based bulbs don't have a screw base like other light bulbs. Compact fluorescent fixtures are also called Energy Star light fixtures. Have you heard of them?" 12 It is possible that CF fixture awareness and purchase rates may be over-reported in both IPC's servce territory and NEEA's servce area as a whole, as the potential for confusion exists between dedicated CF fixtures and fixtures that accept screw-based CFLs. Caution should be taken when interpreting survey results for CF fixtures. Idaho Power Company Consumer Lighting Study is February 23, 2007 KEMAi! Figure 13 Compact Fluorescent (CF) Fixture Awareness and Purchase ¡PC and NEEA, 2006 IPC (n=246) NEEA (n=667) 0%20%40%60%80%100% 7.2 How Consumers Became Aware of CF Fixtures As shown in Table 8, 37 percent ofIPC respondents who are aware ofCF fixtues reported that they first noticed them in a store or saw an in-store display. The second most frequently cited source of awareness was word of mouth (25%), followed by television adverisements (10% each). There are no statistically significant differences in awareness sources between IPC's and NEEA's service areas. Table 8 Source of First Awareness of CF Fixtures (Among Respondents Aware of CF Fixtures) ¡PC and NEEA, 2006 % of Aware of CF Fixtures Source IPC NEEA Noticed them in store 37%38% Word of mouth 25%24% Television advertisements 10%7% MaQazine advertisements 9%11% Utility (bill insert or mailinQ)5%11% Newspaper stories or ads 5%4% Salesoerson in store 3%3% Other 3%1% Consumer Reoorts 2%2% Enerav Star website 2%2% Radio 2%.:1% n 70 176 Idaho Power Company Consumer Lighting Study 16 February 23, 2007 7.3 Reasons for CF Fixture Purchase Fort-one percent ofIPC CF fixture purchasers cite energy savings/energy conseration as a reason for choosing CF fixtures over "regular" fixtures that use screw-based light bulbs. Only 15 percent of NEE A CF fixture purchasers cited the same reason; this difference is statistically significant (but at the 85 percent level of confidence). IPC CF purchasers also indicated choosing CF fixtures because of product quality (18%) and to reduce their electric bils (18%). There are no other significant differences between IPC and NEEA data. 7.4 CF Fixture Installation Locations The living room was the most popular fixture installation location among IPC CF fixture purchasers, followed by home offces and kitchens. Other rooms cited by IPC customer include bathrooms, bedrooms, dining rooms, hallways, and closets. 7.5 Satisfaction with CF Fixtures CF fixtue purchasers were asked to rate their satisfaction with the fixtures on a scale of 1 to 10 with 1 being "not at all satisfied" and 10 being "ver satisfied." The average rating among CF fixtue purchasers in both IPC and NEEA servce areas was 8.1, indicating a high level of satisfaction among fixture purchasers region-wide. Approximately 81 percent ofIPC CF fixture purchasers gave a satisfaction rating of 6 or higher (Figure 14). Figure 14 Satisfaction with CF Fixtures (Among CF Fixture Purchasers) IPC and NEEA 2006 II Very Satisfied II Satisfied 0 Somewhat Dissatisfied 0 Dissatisfied(9-10) (6-8) (3-5) (1-2) % oflPC Purchasers (n=17) % of NEE A Purchasers (n=55) 0%20%40%60%80%100% Idaho Power Company Consumer Lighting Study 17 February 23, 2007 KEMA. 8. Summary of Findings CFL awareness is similar in IPC's and NEEA's servce areas, but IPC consumers' CFL purchase rate lags behind the purchase rate of NEEA consumers as a whole. . Eighty-seven percent of IPC customers are aware of CFLs, as are 88 percent of NEE A consumers. A statistically significantly higher proportion of aware consumers in IPC' s service area are non-purchasers as compared with NEEA's service area. . Although the purchaser base is smaller in IPC's serce terrtory than in the NEEA region as a whole (58 and 67 percent, respectively), IPC customers have statistically significantly higher installation and storage rates than NEEA consumer as a group. In-store displays and advertsements are relatively successful in informing IPC consumers about CFLs and CF fixtures. . Thirt-nine percent of IPC consumers cited noticing CFLs in stores or noticing in-store displays or advertising as their source of first awareness of CFLs, compared with only 27 percent of consumers in NEEA's servce area, a statistically significant difference. . Approximately 37 percent ofIPC consumers indicated that they first became aware ofCF fixtures when they noticed them in stores or noticed an in-store display or advertisement. The average number of CFLs in storage among IPC customers may pose a challenge to increasing CFL saturation within IPC households. . IPC households have approximately 7.4 bulbs installed, on average. Assuming that Nortwest households have approximately 40 sockets per home 13 , only 19 percent of sockets currently have CFLs installed - even though CFL purchasers in IPC's service area are storing an average of 4.6 CFLs per household. IPC CFL purchasers are storing 2 additional bulbs per household (on average) in comparison with CFL purchasers in the broader NEEA serice area (4.6 and 2.6 bulbs, respectively; a statistically significant difference). . More than half (5 1%) of IPC CFL Puchasers who are unlikely to purchase CFLs within the next year indicated that they are unlikely because they are storing CFLs. This proportion is similarly high region-wide. Increasing CFL purchases from 2006 levels may depend on CFL promotions and prices in 2007. . Thee-fourts ofIPC customers say they wil buy CFLs next year (75%). The actual purchase rate in 2007 wil depend on what happens to CFL prices after promotions end and whether CFL awareness continues to increase. There is evidence from the 2005 and 2006 NEEA surveys that when CFLs are sold at low promotional prices, consumers wil buy them even when they have concerns about them and are not all that motivated by their energy savings potentiaL. This effect likely contributed to favorable purchase intentions for 2007 within IPC's service terrtory. 13 A 2005 study found that California households have, on average, 41 sockets in which CFLs could be installed (RL W Analytics, 2005. "2005 California Statewide Residential Lighting And Appliance Effciency Saturation Study." Prepared for California's Investor Owned Utilities (San Diego Gas and Electric, Southern California Gas Company, Southern California Edison, and Pacific Gas and Electric). Published August 23,2005.). Idaho Power Company Consumer Lighting Study 18 February 23, 2007 · More than one-quarter of consumers who are aware non-purchasers who are unlikely to purchase CFLs within the next year cite high CFL prices as a reason. Approximately thirteen percent of the population in IPC's service territory may not buy CFLs next year (or ever), regardless of price. . Most of this segment is comprised of non-purchasers, who - even once made aware of and informed about the current market for CFLs - are not interested in buying them. Purchasing barrers for this group include: · Happy with/accustomed to what I have now (36%); · Have a lot of bulbs on hand/don't need any (9%); · They are too costly (at $2 or less each - 9%); and · Need more information (9%). Idaho Power Company Consumer Lighting Study 19 February 23, 2007 A. Appendix A Consumer Lighting Survey Instrument KEMAt Idaho Power Company Consumer Lighting Study A-I February 15, 2007 Hello, my name is callng on behalf of the Northwest Energy Efficiency Allance. We're conducting a study among households on home lighting preferences. so. May I please speak to the person who does most of the shopping for your household? ¡CONTINUE OR ARRANGE FOR CALLBACK) IF NECESSARY: I want to assure you that this is NOT a sales call and that the information that you provide will be kept strictly confidentiaL. This wil only take about 15 minutes of your time. IF NECESSARY: The NORTHWEST ENERGY EFFICIENCY ALLIANCE is a non-profit organization, which funds projects that encourage energy effciency in the Northwest. Its Board of Directors has representatives from utilties, environmental groups, regulatory agencies, and energy-related private businesses. For more information you can visit the website at ww.nwalliance.org. ¡NEEA MPER2 SURVEY QUESTION NUMBERS IN RED BRACKETS) AWARENESS A 1 Have you ever heard of compact fluorescent light bulbs or CFLs? ¡S11 1 Yes -+ GO TO PURCHASES, A3 2 No 8 (Don't Know) 9 (Refused) A2 Compact fluorescent light bulbs, or CFLs, are small fluorescent bulbs that fit in regular ¡S21 light bulb sockets. CFLs look different than standard bulbs. They are otten made out of thin tubes of glass bent into loops. Have you ever heard of them? 1 Yes 2 No 8 (Don't Know) 9 (Refused) -+GO TO CFL DESCRIPTION, FO -+THANK & TERMINATE INTERVIEW -+THANK & TERMINATE INTERVIEW PURCHASES A3 Have you ever purchased any CFLs? 1 Yes 2 No -+ GO TO EXPANDING CFL INSTALLATIONS, E1 8 (Don't Know) -+ GO TO EXPANDING CFL INSTALLATIONS, E1 9 (Refused) -+ GO TO COMPACT FLUORESCENT FIXTURES, XO Idaho Power Company Consumer Lighting Study A-2 February 15, 2007 KEMA. P1 On how many separate occasions have you purchased them? (Q1) Enter # (PROBE FOR BEST ESTIMATE) 99 (Don't know) P2 Now, thinking back over the past year, how many CFLs have you purchased? If a (Q3) package contained more than one bulb, count each bulb separately.Enter # (PROBE FOR BEST ESTIMATE) o (None) 99 (Don't know) DISPOSITION P3a Do you currently have any CFLs installed in your home? (Q7a) 1 Yes2 No -+ GO TO P4a 8 (Don't know) -+ GO TO P4a 9 (Refused) -+ GO TO P4a P3b How many CFLs are installed? (Q7b) Enter # (PROBE FOR BEST ESTIMATE) 88 (Don't know) 99 (Refused) P4a Are you storing any for use as spares or to be installed at a later date? 1 Yes2 No -+ GO TO P5a 8 (Don't know) -+ GO TO P5a 9 (Refused) -+ GO TO P5a P4b How many CFLs are you storing? (Qab) Enter # (PROBE FOR BEST ESTIMATE) 88 (Don't know) 99 (Refused) P5a Have you had any CFLs that you installed but later removed and did not use elsewhere in your home? 1 Yes2 No -+ GO TO P7 8 (Don't know) -+ GO TO P7 9 (Refused) -+ GO TO P7 P5b How many CFLs did you remove? (Qeb) Enter # (PROBE FOR BEST ESTIMATE) 88 (Don't know) 99 (Refused) Idaho Power Company Consumer Lighting Study A-3 February 15, 2007 P6b How did you dispose of the bulbs you removed? (DO NOT READ) (Accept multiples) 1 Threw them away/threw them in trash 2 Returned them to the utility 3 Returned them to the store 4 Took them to recycling center 77 Other (specify) 88 (Don't know) 99 (Refused) P7 Can you recall how you first became aware of CFLs? _ iaG) (DO NOT READ) (Accept multiples) 1 Noticed them in store or saw in-store display/sale/point of purchase materials 2 Television 3 Internet 4 Newspaper 5 Magazines 6 Radio 7 Word of mouth (friends, family, neighbor, colleague) 8 Sales person 9 Consumer Reports 10 ENERGY STARiB Program website 11 Utility (bill insert or mailing) e.g., Northwestern Energy, Puget Sound, Snohomish County Public Utility District, Portland General Electric (PGE), Pacificorp 12 Announcement by governor or other government official 13 Received CFL for free in the mail 14 Received CFL coupon in the mail 77 Other (specify) 88 (Don't know) 99 (Refused) P8 When did you first become aware of CFLs? Would you say it was... 1 This fall (if needed: this past September, October, or November) 2 Within the last year 3 Less than two years ago 4 Less than five years ago 5 Less than 10 years ago, or 6 More than 10 years ago? 8 (Don't Know) 9 (Refused) FIRST PURCHASE P9 When was the first time you purchased them? Would you say it was... ia2) 1 This fall (if needed: this past September, October, or November) 2 Within the last year 3 Less than two years ago 4 Less than five years ago 5 Less than 10 years ago, or 6 More than 10 years ago? 8 (Don't Know) 9 (Refused) Idaho Power Company Consumer Lighting Study A-4 Febroary 15, 2007 KEMAi MOST RECENT PURCHASE M1 When was your most recent CFL purchase? Would you say it was... 1 This fall (if needed: this past September, October, or November) 2 Within the last year 3 Less than two years ago 4 Less than five years ago 5 Less than 10 years ago, or 6 More than 10 years ago? 8 (Don't Know) 9 (Refused) M2 Thinking about your most recent CFL purchase, how many did you buy? If a package contained more than one bulb, count each one separately. Enter # (PROBE FOR BEST ESTIMATE) o (None) 99 (Don't know) M3 (Q8c_1J a. How many of those CFLs did you install in your home? Enter # installed in home (PROBE FOR BEST ESTIMATE) o (None) -+ GO TO M3b 88 (Don't know) 99 (Refused) a1. Did you install any of them in a home offce? (NOTE: If respondent says home office is in a living room or bedroom and not a distinct room, do not code as home office.)1 Yes2 No 88 (Don't Know) 99 (Refused) -+ GO TO M3b -+ GO TO M3b -+ GO TO M3b a2. (If yes) How many? (IF NEEDED: How many of the CFLs from your most recent purchase.) Enter # installed in home offce (PROBE FOR BEST ESTIMATE) (NOTE: M3a2 is a subset of M3a) a3. Approximately how many hours per week would you say the CFL(s) in your home offce is (are) switched on? Enter # hours each switched on (PROBE FOR BEST ESTIMATE) b. Stil thinking about your most recent purchase, did you install any of these CFLsin . a business location (other than a home office)? 1 Yes2 No -+ GO TO M4 88 (Don't know) -+ GO TO M4 99 (Refused) -+ GO TO M4 c. How many? (IF NEEDED: How many did you install in a business location?) Enter # installed in business (PROBE FOR BEST ESTIMATE) 88 (Don't know) 99 (Refused) Idaho Power Company Consumer Lighting Study A-5 February 15, 2007 KENlAiJ d. What type of business? Would you say... 1 Office, (Interviewer: confirm not a home office) 2 Grocery or convenience store, 3 Other type of retail store, 4 Restaurant or bar, 4 Health care, 5 Hotel or motel, or 6 Warehouse? 77 Other (specify) 88 (Don't know) 99 (Refused) M4 Thinking about your most recent CFL purchase, how many of the CFLs you bought (08c_2Jdid you store to install later? Enter # stored (PROBE FOR BEST ESTIMATE) 88 (Don't know) 99 (Refused) M5 (IF M3a + M3c + M4 ~ M2, ASK M5 - ELSE SKIP TO MO) What did you do with the other CFLs you purchased most recently? (If necessary: "Of the (M2) CFLs you purchased, you said you installed (M3a + M3c) and stored (M4). What did you do with the other (M2 - M3a - M3c - M4)?") (DO NOT READ) (Accept multiples) 1 They burned out 2 Used them in a vacation home 3 Gave them away 4 Misplaced them 7 Other (specify) 8 (Don't know) 9 (Refused) MO (IF M3a + M3c + M4 ;: M2, ASK MO - ELSE SKIP TO M6) Of the (M2) CFLs you purchased, you said you installed (M3a + M3c) and stored (M4). Would you like to revise one of these numbers? IF YES, recode responses to M2, M3a, M3b, and/or M4 appropriately. M6 Where did you purchase CFLs most recently? (041 (DO NOT READ) (Accept multiples) 1 Home center (Home Depot, Lowe's, D & B Supply, Lumbermen's) 2 Discount or mass merchandise store (Wal-Mart, K-Mart, Target, Fred Meyer, M.H. King, Shopko, Swains) 3 Buying clubs (Costco or Sam's Club) 4 Hardware stores (ACE, TrueValue, Do it Best, Do it Center) (PROBE FOR STORE NAME: IF HOME CENTER OR LISTED IN RESPONSE 1, RECODE AS RESPONSE 1) 5 Supermarket, food store (Albertson's, Winco Foods) 6 Drug store (Bartell, Bi-Mart, Hi-School Pharmacy, Longs, Osco Drug, Rite Aid, Walgreens) 7 Lighting supply store, lighting showroom 8 Mail Order Catalog 9 Over the Internet 10 Home Energy Show 77 Other (specify) 88 (Don't know) 99 (Refused) Idaho Power Company Consumer Lighting Study A-6 February 15, 2007 KfMA* M7 Was there a special promotion or sale on CFLs at the store when you bought them most (Q5b) recently? 1 Yes 2 No 8 (Don't know) 9 (Refused) M8 Thinking about your most recent purchase, did you buy CFLs packaged individually, in multi- packs, or both? 1 Bought individually packaged CFLs only2 Bought CFL multi-packs only + GO TO M9b 3 Bought both8 (Don't know) + GO TO M9a9 (Refused) + GO TO M9a M9a IF M8 = 3 READ: ¡Q20j For the CFLs packaged individuatly, much did you pay PER BULB during your most recent purchase? ELSE IF M8 = 1, 8, or 9 READ: How much did you pay PER BULB for your CFLs during your most recent purchase? IF M7 = 1, 8, or 9, READ: Please tell me the promotion or sale price that you paid PER BULB. And if you used a rebate or coupon, tell me the price of the bulb after the rebate or coupon. ENTER $ XX (dollars) 88 (Don't know) 99 (Refused) M9b IF M8 '# 2 or 3, SKIP TO S1. How many CFLs were in each of the multi-packs you purchased most recently? 1 1 CFL (CLARIFY: I'm referring to the CFLs you purchased recently that had more than one bulb per package) 2 2 CFLs 3 3 CFLs 4 4 CFLs 6 6 CFLs 7 Other (specify) 8 (Don't know) 9 (Refused) M9c How much did you pay for each multi-pack? IF M7 = 1, 8, or 9, READ: Please tell me the promotion or sale price that you paid per multi-pack. And if you used a rebate or coupon, tell me the price of the multi-pack after the rebate or coupon. IF NECESSARY: I'm referring to the price per package, not the price per CFL. ENTER $ XX (dollars) 88 (Don't know) 99 (Refused) Idaho Power Company Consumer Lighting Study A-7 February 15, 2007 SATISFACTION (MOST RECENT PURCHASE) S1 Thinking about all of the CFLs you recently purchased, how satisfied are you with them? fO î 11 Use a scale of 1 to 10, where 1 means you are "not at all satisfied" and 10 means you are "very satisfied". Not at all Satisfied 1 2 3 4 5 6 7 8 9 Very Satisfied 10 (Don't know) 88 (Refused) 99 S2 (ROTATE. Ask 3 items from a - g per respondent.) Now, using a scale of 1 to 5, f0121 where 1 means you are "not at all satisfied" and 5 means you are "very satisfied", how would you rate the compact fluorescent bulbs you have recently purchased in terms of... . a. The color of the light they provide? b. The brightness of the light they provide? c. The amount of time they take to light up? d. The way they fit into light fixtures? e. The way they look in light fixtures? f. How long they last before burning out? (FOR THE SECOND AND THIRD ITEM in rotation, add, "On that same scale, how satisfied are you with..." before reading item.) Not at all satisfied 1 2 3 4 Very Satisfied 5 (Don't know) 8 (Refused) 9 S2b1 IF S2b oe 3 ASK: Are they too bright, or not bright enough? 1 Too bright 2 Not bright enough 8 (Don't Know) 1 (Refused) S3 In general, what are the best features of CFLs?_ (M101 (DO NOT READ) (Accept multiples) 1 Lasts longer before burning out 2 Saves money / reduces electricity bil 3 Saves/conserves energy/electricity 4 Resource conservation benefits / better for environment / "green" 5 It works better/ is higher quality 77 Other (specify) 88 (Don't know) 99 (Refused) IF P3a = 1 THEN CONTINUE ELSE, SKIP TO E1 Idaho Power Company Consumer Lighting Study A-8 February J 5, 2007 CFL / CFL REPLACEMENT S4 IF P3b = 1 THEN READ: When the CFL now installed burns out, how likely are you to replace it with another CFL? Use a scale of 1 to 5, where 1 means you are "not at all likely" and 5 means you are "very likely." ELSE IF P3b ;: 1 THEN READ: When the CFLs now installed burn out, how likely are you to replace them with other CFLs? Use a scale of 1 to 5, where 1 means you are "not at all likely" and 5 means you are "very likely." 5 (Don't know) 8 (Refused)Not at all likely1 2 Very Likely 3 4 9 S5 IF S4 -c 3 THEN ASK: (F5b) Why do you say that? (RECORD VERBATIM.) 88 (Don't know) 99 (Refused) E1 When one of the incandescent bulbs you have installed now burns out, would you say you... (READ LIST)1 Will definitely replace it with a CFL, ~ SKIP TO E3a 2 Will possibly replace it with a CFL, or 3 Will definitely not replace it with a CFL? o DO NOT READ: No incandescent bulbs installed in home ~ SKIP TO F1 8 (Don't know) 9 (Refused) E2 Does whether or not you would replace a burned-out incandescent with a CFL depend on... (ROTATE A THROUGH E) a. the room in which the bulb would be located? b. how often you would use the bulb? c. the price of CFLs? d. whether you have incandescent bulbs in storage? e. (SKIP IF M4 = 0, 88, or 99) whether you have CFLs in storage? 1 Yes 2 No 8 (Don't know) 9 (Refused) f. Is there anything else that might affect your decision to replace a particular burned-out incandescent bulb with a CFL? (RECORD VERBATIM) E3a What is the main factor preventing you from increasing the number of CFLs you currently have installed in your home?_ (DO NOT READ) (Accept only one response.) (Use E3b response list) Idaho Power Company Consumer Lighting Study A-9 February J 5, 2007 E3b Anything else? (DO NOT READ) (Accept multiples) 1 Waiting for incandescent bulbs to burn out 2 Storing incandescent bulbs 3 Operating hours -- don't use the other bulbs/lamps enough 4 CFLs are too expensive/cost too much 5 Need dimmable bulbs / can't get dimmable CFLs / can't use CFLs with dimmer switches 6 Need 3-way bulbs / can't get 3-way CFLs / can't use CFLs in my 3-way fixtures / when I use regular CFLs in my 3-way fixtures they don't work 7 Don't like the way CFLs look in fixtures 8 Don't like the way CFLs fit in fixtures 9 CFLs aren't bright enough 10 CFL light color isn't what I wanUisn't right 11 CFLs take too long to light up 88 (Don't know) 99 (Refused) AWARE RESPONDENTS ONLY F1 IF A2 = 2, SKIP TO FO. How likely are you to purchase any CFLs in the next year? Use j a scale of 1 to 5 where 1 means you are 'Not at all likely' and 5 means you are 'very likely'. Not at all likely1 2 5 (Don't know) 8 (Refused)Very Likely 3 4 9 F2a IF F1 ;: 3, SKIP TO FO. Why are you unlikely to purchase CFLs in the next year?_ (F2ajlf answer = "i am storing a bunch/bought a multi-pack so I don't need any more" SKIP TO FO. F2b Are there any other reasons? (VERBATIM. Record first mention.) (Accept multiples) CFL DESCRIPTION - ALL RESPONDENTS FO IF A2 = 2 (UNAWARE) READ: I'm going to describe compact fluorescent bulbs or CFLs to you so I can ask you a few more questions about whether or not you would consider buying them in the near future. ELSE (AWARE) READ: Before i ask the next question, I want to tell you a few things about CFLs that you may not be aware of. (IF RESPONDENT INTERRUPTS DESCRIPTION TO SAY THEY ALREADY KNOW THIS INFORMATION, SAY "We have to make sure everyone hears the same description - please bear with me for just a moment.") CFLs use two-thirds less energy than a standard bulb, and last up to 10 times as long. Some styles of CFLs are available for $2 or less - and they are about the same size and color as a standard bulb and can be installed in almost any fixture where you would put a standard bulb. They can be purchased at the same places you purchase standard bulbs, including some drug and grocery stores. CFLs save about $30 in electricity costs over the life of the bulb. By using less energy, CFLs also help the environment. F3 IF A2 = 2 (UNAWARE), SKIP TO F4. Now that you've heard my description, would you say that... Idaho Power Company Consumer Lighting Study A-10 February J 5, 2007 1 You are now more likely to purchase CFLs than before you heard thedescription, or ~ SKIP TO F5 2 You are not more likely to purchase CFLs than before you heard the description? ~ SKIP TO XO8 (Don't know) ~ SKIP TO XO9 (Refused) ~ SKIP TO XO F4 Now that you've heard my description, please tell me how likely you'd be to purchase (UF1J CFLs in the next year. Please use the same 1 to 5 scale as before, where 1 means you are 'Not at all likely' and 5 means you are 'very likely'. 1 Not at all likely 2 2 3 3 ~ SKIP TO XO 4 4 ~ SKIP TO XO5 Very Likely ~ SKIP TO XO8 (Don't Know) ~ SKIP TO XO9 (Refused) ~ SKIP TO XO F4a Why do you say that? _ (RECORD VERBATIM) 88 (Don't know) 99 (Refused) ~ SKIP TO XO F5 What changed your mind to make you say you're now likely to buy a CFL in the next bj year? Prompt, if needed: What new information did I tell you about CFLs that changed your mind? (RECORD VERBATIM. ACCEPT ONLY ONE RESPONSE.) Anything else? (RECORD VERBATIM. ACCEPT MULTIPLES.) AWARE RESPONDENTS ONLY XO I'd now like to ask you a few questions about compact fluorescent fixtures. X1 Most regular light fixtures use bulbs that screw in, but compact fluorescent fixtures use special pin-based CFLs that plug in. Pin-based bulbs don't have a screw base like other light bulbs. Compact fluorescent fixtures are also called Energy Star light fixtures. Have you heard of them? 1 Yes2 No ~ SKIP TO DO 8 (Don't know) ~ SKIP TO DO 9 (Refused) ~ SKIP TO DO Idaho Power Company Consumer Lighting Study A- i i February J 5, 2007 X2 Can you recall how you first became aware of these fixtures? _ IF NECESSARY: compact fluorescent fixture or Energy Star fixture. (DO NOT READ) (Accept multiples) 3 Noticed them in store or saw in-store display/sale/point of purchase materials 4 Television 5 Internet 6 Newspaper 7 Magazines 8 Radio 9 Word of mouth (friends, family, neighbor, colleague) 10 Sales person 11 Consumer Reports 12 ENERGY STAR(ß Program website 13 Utility (bil insert or mailing) e.g., Northwestern Energy, Puget Sound, Pacificorp, Snohomish County Public Utility District, Portland General Electric (PGE) 14 Announcement by governor or other government official 15 Received CFL for free in the mail 16 Received CFL coupon in the mail 77 Other (specify) 88 (Don't know) 99 (Refused) X3 Have you ever purchased one of these fixtures? IF NECESSARY: compact fluorescent fixture or Energy Star fixture. 1 Yes2 No -+ SKIP TO DO 8 (Don't know) -+ SKIP TO DO 9 (Refused) -+ SKIP TO DO X4 Thinking about your most recent compact fluorescent fixture purchase, why did you choose it over a "regulat' fixture that uses screw-based bulbs? (DO NOT READ) (Accept multiples)1 Reduce electricity bill 2 Save/conserve energy 3 Remodeling room(s) / remodeling the home 4 Extra cost for compact fluorescent fixture was minimal 5 Energy savings worth the extra up-front cost, acceptable payback 6 Cost savings worth the extra up-front cost, acceptable payback 7 It is the "right thing to do" (environmental/resource conservation benefits) 8 Product works better/is higher quality 9 Like to have new, high-tech products 10 Salesperson convinced me it was the best choice 11 To redeem a coupon 12 Friends/family suggested I purchase compact fluorescent fixtures 13 To try them out 14 It was on sale 77 Other (specify) 88 (Don't know) 99 (Refused) Idaho Power Company Consumer Lighting Study A-12 February 15, 2007 KEJVA¡J X5 In which room in your home did you install the fixture(s)? (DO NOT READ) (Accept multiples) 1 Kitchen 2 Bathroom 3 Bedroom 4 Living Room 5 Dining Room 6 Basement 7 Hallway 8 Closet 9 Home office 10 Did not install fixtures at all 11 Did not install in home (probe: where did you install the fixture(s)?)77 Other (specify) 88 (Don't know) 99 (Refused) X6a Was there a special promotion or sale at the store when you bought it (them)? 1 Yes 2 No + SKIP TO X7 8 (Don't know) + SKIP TO X7 9 (Refused) + SKIP TO X7 X6b Was the promotion related to the fixture's energy saving benefits or was it a regular store sale? 1 Energy-related promotion 2 Store sale 8 (Don't know) 9 (Refused) X7 How satisfied are you with the fixture(s)? Use a scale of 1 to 10, where 1 means you are "not at all satisfied" and 10 means you are "very satisfied". Not at all Satisfied 1 2 3 4 5 6 9 Very Satisfied 10 (Don't know) 88 (Refused) 7 8 99 DO Before we finish, I have just a few more questions about your household to make sure we're getting a representative sample of residents. D1 What type of home do you live in? (READ LIST) 1 Mobile home 2 Single-family (attached or detached) 3 Apartment 4 Condo 7 (Other) 8 (Don't know) 9 (Refused) Idaho Power Company Consumer Lighting Study A-13 February 15, 2007 D2 Do you own your home or do you rent? 1 Own 2 Rent 8 (Don't know) 9 (Refused) D3 Including yourself, how many people live in your home? 1 one 2 two 3 three 4 four 5 five6 six 7 seven or more 8 (Don't know) 9 (Refused) D4 Which of the following best describes your educational background? (READ LIST) 1 Some high school 2 High school graduate 3 Trade or technical school 4 Some college 5 College graduate 6 Some graduate school 7 Graduate degree 8 (Don't know) 9 (Refused) D5 IF D3 =1, READ: "Which of the following best describes your age group?" (OMIT "5 and undet') ELSE READ: For each of the following age groups, how many people, including yourself, usually live in this home? (ONCE TOTAL PEOPLE IN D5 = D3, SKIP REMAINING AGE GROUPS AND GO TO D6.) Number of People Usually Living In This Homeo 1 2 3 4 5 6 7 Over 7 6-18 35-54 and over D6 Lastly, which of the following categories contains your annual household income from all sources in 2005 before taxes? (READ LIST) 1 Less than $20,000 per year 2 $20,000 to $49,000 3 $50,000 to $74,000 4 $75,000 to $99,000 5 $100,000 or more 8 (Don't know) 9 (Refused) Idaho Power Company Consumer Lighting Study A-14 Febrnary 15, 2007 KEMA~ WO Those are all the questions I have for you. Thank you very much for your time and opinions. RECORD GENDER 1 Male 2 Female Idaho Power Company Consumer Lighting Study A-I5 February 15, 2007 B. Appendix B Sampling Details Idaho Power Company Consumer Lighting Study B-1 February 232007 KEMAi B.I Sampling The base NEEA surveys were conducted by telephone with a random sample of households in Oregon, Washington, Montana, and Idao in November 2006. The sample size was 500 and we oversampled non- metropolitan areas based on their location West or East of the Cascades and metropolitan statistical area (MSA)14 designation (inside or outside of an MSA). Because we were also concered with yielding results we could analyze by state, we took into account state as well and developed sub-stratification to ensure suffcient sample for Idaho and Montana. As a result, we have 3 primary strata plus sub- stratification for 2 of the primary strata, yielding 5 total strata: 1) MSAs West of the Cascades 2) MSAs East of the Cascades a) Washington (there are no Oregon MSAs East of the Cascades) b) Idaho and Montana 3) Non-MSAs (both East and West of the Cascades) a) Washington and Oregon b) Idaho and Montana Figure B-1 below is a map ilustrating the distribution of MSAs across the Northwest region. Counties shown in yellow are MSAs east of the Cascades ("MSAE") and in blue, west of the Cascades ("MSA W"). Figure B-1 MSAs East and West of the Cascades in the Four-State NEEA Region MSAEI/MSAW 14 Metropolitan Statistical Areas (MSAs) are geographic entities defined by the U.S. Offce of Management and Budget, each of which contains a core urban area of at least 50,000 residents. MSAs consist of one or more counties and include the counties containing the core urban area as well as any adjacent counties that have a high degree of social and economic integration (as measured by commuting to work) with the urban core. For the most up-to-date lists ofMSAs and their component counties, see the US Census website at http://www .census.gov/population/www /estImates/metrodef.html. Idaho Power Company Consumer Lighting Study B-2 Febrnary 232007 Table B-1 shows the population distrbution within NEEA's servce area as well as the allocation of the 500 base NEEA surveys (number and percentage) by the 5 strata and sub-strata identified above. Table B-1 Population Distribution and Sample Allocation by Strata Base NEEA Surveys Population Sample Allocation fNEEA Service Areal fBase NEEA Survevsl Strata and Sub-Strata N %n % (1) MSA West 6,834,643 57%150 30% (2) MSA East (a) Washington 867,990 7%50 10% (b) Idaho! Montana 779,648 6%100 20% (3) Non-MSA (a) Washington! Oregon 2,063,869 17%100 20% (b) Idaho! Montana 1,532,850 13%100 20% Total 12,079,000 100%500 100% After the 500 base NEEA surveys were completed (according to the sample allocation shown in Table B- 1 above), we conducted 167 additional surveys in the Idaho Power Company's (IPC's) service terrtory. Table B-2 shows the final distribution of the 667 surveys. Table B-2 Consumer Lighting Survey Purchaser Completes, Base NEEA Surveys Plus IPC Oversample (total n=667) Completed Surveys Strata and Sub-Strata n % (1) MSA West 150 22% 2) MSA East (a) Washington 50 7% (b) Idaho! Montana 196 29% (3) Non-MSA (a) Washington! Oregon 100 15% (b) Idaho! Montana 171 26% Total 667 100% B.2 Weighting IPC Surveys. The total 246 IPC surveys included 79 from the base NEEA surveys and the 167 oversample surveys. Results for IPC are not weighted because the surveys were conducted with a simple random sample of customers in IPC's serice terrtory with no oversampling for any subgroup within the population. NEEA Surveys. After the 500 base surveys were completed, we added the 167 IPC overample surveys for a total of 667 surveys within NEEA's service area. Table B-2 shows the distrbution of completed Idaho Power Company Consumer Lighting Study B-3 February 232007 surveys by the 5 sample strata and substrata. We then post-weighted the data so that Non-Metro respondents, Idaho/Montaa respondents, and IPC respondents were not over-represented in the results based on the distrbution of the population with NEEA's serce area as shown in Table B-1. The data presented from the total 667 sureys thus accurately reflects the distrbution of the population. Idaho Power Company Consumer Lighting Study B-4 February 232007 KEMAf§ C. Appendix C Idaho Power Company Consumer Lighting Survey Banner Tables Idaho Power Company Consumer Lighting Study C-l Febniary 23, 2007