20160414IPC to Staff 1-10.pdf

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An IDACORP Company
RECE IVE D
2016 APR lt+ PH
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
April 14, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-16-02
2016-2017 Fixed Cost Adjustment - ldaho Power Company's Response to
the First Production Request of the Commission Staff
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and three (3) copies of ldaho
Power Company's Response to the First Production Request of the Commission Staff
("Staff') to ldaho Power Company.
Also, enclosed are four (4) copies each of non-confidential and confidential disks
containing information responsive to Staffs production requests. Please handle the
confidential information in accordance with the Protective Agreement executed in this
matter.
Sincerely,
Xr-frt4^*+r*
Lisa D. Nordstrom-
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Enclosures
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LISA D. NORDSTROM (lSB No. 5733)
Idaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rd strom @ ida hopowe r. co m
Attomeys for ldaho Power Company
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO IMPLEMENT FIXED
COST ADJUSTMENT RATES FOR
ELECTRIC SERVICE FROM JUNE 1,
2016, THROUGH MAY 31, 2017.
REC E IVT D
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CASE NO. !PC-E-16-02
IDAHO POWER COMPANY'S
RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO
POWER COMPANY
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
COMES NOW, ldaho Power Company ("ldaho Powe/' or "Compatry"), and in
response to the First Production Request of the Commission Staff ("Staff') to ldaho
Power Company dated March 31,2016, 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: Please provide workpapers in executable format showing the
calculation of weather normalized sales. lnclude al! statistical analysis and
assumptions.
RESPONSE TO REQUEST NO. 1: The Company's historical weather
normalization and energy forecast models entail large amounts of data found in
disparate and numerous executable software applications. ldaho Power's primary and
third-party data sources are compiled into multiple Oracle Express databases, which
occupy approximately 800 megabytes of disk space. Regression modeling and
development of the final energy sales figures occurs primarily in MetrixND and Oracle
Express. The executable files associated with data and modeling require specific
database engine and application software, without which the files would be unusable.
Consequently, ldaho Power has attached to this response al! related files that can
reasonably be provided in an executable and informative format, but is unable to
provide the complete working models. To review the models in their entirety, please
contact Doug Jones at [phone] or Camilla McClusky at [phone] to
arrange a time for review at the Company's corporate headquarters.
H ISTORICAL WEATHER NORMALIZATION
Attachment 1 provided on the non-confidential CD provides an overview of the
Company's weather normalization methodology and a detailed description of the
weather adjustment process. Confidentia! Attachments 2 through 5 include the
descriptive statistics and predictive accuracy for each of the four regression models
used to weather-adjust residential and commercial sales. The tabs in Attachments 2
through 5 contain the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2
Tab Name Description
Data H istorical/forecast data bv variable
Con Conelation between variables
Coef Coefficients and associated descriotive statistics for each variable
MStat Descriotive statistics for entire model
En Actualdependent variable, predicted value, and residual
Confidential Attachment 6 illustrates the application of the methodology for
calendar year 2015 using the weather normalization process detailed in Attachment 1,
utilizing the coefficients calculated in the four regression models detailed in Confidential
Attachments 2 through 5. Within this spreadsheet, daily weather is transformed into
daily heating and cooling degree days ("HDD" and "CDD') for each city described in
Attachment 1. HDD and CDD are then weighted by the number of cycles being read
each day and summed over the billing month start and end dates. Next, each city is
weighted by the number of customers (residentia! or commercial) in each operating area
of the Company to anive at actual weighted monthly HDD and CDD. The difference
between the actual monthly HDD/CDD and the 30-year normal HDD/CDD, times the
weather coefficient(s) for a given month, times the electric space heat saturation (or
central air-conditioning saturation in summer), times the number of customers results in
a monthly weather adjustment. The adjustment is added to actual sales to determine
weather-adjusted sales. The commercial models do not use space heat or air-
conditioning saturation in those calculations.
Attachment 7 contains a variable key with a description of each coded variable
contained in the historical weather normalization models.
The response to this Request is sponsored by Zach Harris, Regulatory Analyst,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST NO. 2: Please provide the workpapers illustrating the calculation of
the FCA defenal amount for each month, using both actual sales and weather
normalized sales in executable format.
RESPONSE TO REQUEST NO. 2: Please see the attached Excel file. The tab
"Monthly FCA Calculation Actual" calculates the monthly Fixed Cost Adjustment ("FCA')
deferral using actua! billed sales. The tab "Monthly FCA Calculation Weathe/'
calculates what the monthly FCA deferral would have been using weather normalized
sales. The calculations do not include interest. The other tabs are the data inputs used
to calculate the FCA deferral balance. Because the FCA is an annual mechanism that
is ultimately calculated and determined using customer counts and billed energy sales
data for the entire calendar year, the sum of the monthly estimates may not equal the
annual amount.
The response to this Request is sponsored by Zach Hanis, Regulatory Analyst,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY.4
REQUEST NO. 3: Please prcvide the number of new customers for each month
ol 2015.
RESPONSE TO REQUEST NO. 3: Please see the attached Excelfile containing
the monthly customer counts for the residential and small general service customer
classes that were used to determine the monthly FCA defena! calculation included in
the Company's response to Data Request No. 2.
The response to this Request is sponsored by Zach Hanis, Regulatory Analyst,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
REQUEST NO. 4: PIease provide the average number of residentia! and sma!!
commercial customers per year for each year beginning with the year the base was set.
RESPONSE TO REQUEST NO. 4: Please see the attached Excelfile containing
the average customer counts used to determine the annual FCA defena! for the
corresponding years.
The response to this Request is sponsored by Zach Harris, Regulatory Analyst,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6
REQUEST NO. 5: Please provide the monthly sales forecast for the 2015 -
2016 FCA year for the residential and small commercial classes.
RESPONSE TO REQUEST NO. 5: Please see the attached Excel file which
provides the monthly sales forecast for the 2015 - 2016 FCA year for the residential
and small commercial classes.
The response to this Request is sponsored by Zach Harris, Regulatory Analysts,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REOUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7
REQUEST NO. 6: Please provide the monthly sales forecast for the 2016 -
2017 FCA year for the residential and small commercial classes.
RESPONSE TO REQUEST NO. 6: Please see the attached Excel file which
provides the monthly sales forecast for the 2016 - 2017 FCA year for the residentia!
and small commercial classes.
The response to this Request is sponsored by Zach Harris, Regulatory Analysts,
ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8
REQUEST NO. 7: Please provide the energy savings acquired through ldaho
Powe/s residential energy efficiency program offerings in 2015.
RESPONSE TO REQUEST NO. 7: Annua! quantifiable energy savings from
ldaho Power's residential energy efficiency programs for 2015 were 23,818,916
kilowatt-hours (.kwh") for the ldaho jurisdiction as reported in the Demand-Side
Management 2015 Annual Report, Appendix 5 found on page 176.
Market transformation savings from residential programs and initiatives
administered by the Northwest Energy Efficiency Alliance ("NEEA") are estimated each
year by NEEA. For 2015, NEEA estimates the system-wide residential savings to be
18,045,600 kwh of which ldaho Power estimates 95 percent or 17 ,143,320 kWh to have
occurred in the ldaho jurisdiction.
The response to this Request is sponsored by Pete Pengilly, Customer Research
and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9
REQUEST NO. 8: Please provide the energy savings acquired through Idaho
Powe/s smal! commercial energy efficiency program offerings in 2015.
RESPONSE TO REQUEST NO. 8: Annual quantffiable energy savings from
ldaho Power's small commercial customers (Rate Schedule 7) through its commercial
energy efficiency programs tor 2015 were 1,276,371 kWh for the ldaho jurisdiction.
Market transformation savings from commercia! programs and initiatives
administered by the NEEA are estimated each year by NEEA. For 2015, NEEA
estimates the system wide commercial savings to be 3,066,000 kWh of which ldaho
Power estimates 95 percent or 2,912,700 kwh to have occurred in the ldaho
jurisdiction. ldaho Power is unable distinguish the small commercial savings from the
large commercial savings.
The response to this Request is sponsored by Pete Pengilly, Customer Research
and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1O
REQUEST NO. 9: Please provide the cumulative energy savings acquired
through ldaho Powe/s residential energy efficiency program offerings since the base
was set. Please provide all supporting workpapers in executable format.
RESPONSE TO REQUEST NO. 9: Please see the attached Excel file. Please
note that the NEEA residential savings lor 2015 are preliminary. The savings allocated
to the ldaho jurisdiction are estimates.
The response to this Request is sponsored by Pete Pengilly, Customer Research
and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11
REQUEST NO. 10: Please provide the cumulative energy savings acquired
through ldaho Powe/s small commercia! energy efficiency program offerings since the
base was set. Please provide all supporting workpapers in executable format.
RESPONSE TO REQUEST NO. 10: Please see the attached Excel file. Please
note that the 2015 NEEA commercial savings are preliminary. While the NEEA reports
savings for commercial customers, ldaho Power is unable to distinguish the savings for
small commercial customers frcm large commercia! customers.
The response to this Request is sponsored by Pete Pengilly, Customer Research
and Analysis Leader, ldaho Power Company.
DATED at Boise, Idaho, this 14h day of April 2016.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 12
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 14h day of Apri! 2016 t served a true and
conect copy of 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
Daphne Huang
Deputy Attomey General
ldaho Public Utilities Commission
472 W esl Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
ldaho Gonservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street
Boise, ldaho 83702
X Hand Delivered
U.S. Mail
Overnight Mail
daphne.huang@puc. idaho.oov
_Hand DeliveredX U.S. Mail
Overnight Mai!
FAXX Emai! [e-mail]
FAX
Email
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13