20170609IPC to Staff 13-19 .pdf

sm.
il l t;f 1:,rE 5
,'ij; iij I-g pil &:20
LISA D. NORDSTROM
Lead Counsel
I nordstrom@idah opower.com
June 9,2017
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-17-03
2016 Demand-Side Management Expenses - ldaho Power Company's
Response to the Second Production Request of the Commission Staff
Dear Ms. Hanian:
Enclosed forfiling in the above mafter please find an original and three (3) copies of
ldaho Power Company's Response to the Second Production Request of the Commission
Staff.
Very truly yours,
br-
Lisa D. Nordstrom
An IDACORP Company
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
1.,
(:,t_l r-'-t n
LDN:kkt
Enclosures
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
nll !'-'i f-;l ir !.'i
lnordstro .com
Attomey for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
DETERMINATION OF 2016 DEMAND.SIDE
MANAGEMENT EXPENSES AS
PRUDENTLY INCURRED
CASE NO. !PC-E-17-03
IDAHO POWER COMPANY'S
RESPONSE TO THE SECOND
PRODUCTION REQUEST OF
THE COMMISSION STAFF
COMES NOW, ldaho Power Company ("ldaho Powe/' or "Compory"), and in
response to the Second Production Request of the Commission Staff to ldaho Power
dated June 9,2017, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 1
)
)
)
)
)
)
)
)
REQUEST NO. 13: Please provide the number of switches for the A/C Cool
Credit program that the Company had in inventory on December 31,2015 and
December 31,2016.
RESPONSE TO REQUEST NO. 13: As of December 31 ,2015, the number of
new switches and used switches in working condition was approximately 5,233. The
number of new and used switches in working condition in inventory as of December 31,
2016, was approximately 2,873. The above-mentioned switch inventory is used in both
the A/C Cool Credit and the lnigation Peak Rewards programs.
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 SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 2
REQUEST NO. 14: Please provide the number of switches for the A/C Cool
Credit Program that the Company cunently has in inventory.
RESPONSE TO REQUEST NO. 14: As of May 24,2017, the cunent inventory is
approximately 2,675 new switches or used switches in good working condition. These
switches are used in the A/C Cool Credit and the lnigation Peak Rewards programs.
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 SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF.3
REQUEST NO. 15: Please provide the amount that is included in the
Company's Energy Efficiency Tariff Rider balance as of December 31,2016 for the A/C
Cool Credit switches.
RESPONSE TO REQUEST NO. 15: The Company has not purchased any A/C
Cool Credit switches since September 2012. Because they were expensed (through the
Energy Efficiency Tariff Rider) in the year they were purchased, there is no amount in
the cunent 2016 Demand-Side Management prudence request or in the Energy
Efficiency Tariff Rider balance as of December 31, 2016, associated with the A/C Cool
Credit switches.
The response to this Request is sponsored by Pete Pengilly, Customer Research
& Analysis Leader, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCT]ON REQUEST OF THE COMMISSION STAFF - 4
REQUEST NO. 16: Please provide the number of participants in the A/C Cool
Credit program for each month since the implementation of the program.
RESPONSE TO REQUEST NO. 16: Please see that attachment provided in
response to this request. Because the number of participants varies by day and the
exact number depends on the date the information was queried, A/C Cool Credit
participation by month will not exactly match the annual participants listed in the
Demand-Side Management 2016 Annual Report, Appendix 4, page 177. Also, please
note that the number of participants for June 2017 submitted in the Company's
response to Staffs Request No. 36 in Gase No. IPC-E-16-03, will not match the number
of participants in this response because in the 2016 response the June number of
participants was a partial month query.
The response to this Request is sponsored by Pete Pengilly, Customer Research
& Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 5
REQUEST NO. 17: Please provide a draft copy of the minutes from the May 3,
2017 Energy Efficiency Advisory Grcup meeting.
RESPONSE TO REQUEST NO. 17: Please see the attachment provided in
response to this request.
The response to this Request is sponsored by Pete Pengilly, Gustomer Research
& Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 6
REQUEST NO. 18: Please provide onsite access to the invoices and other
supporting documentation for the expenses charged to the Energy Efficiency Tariff
Rider listed on Confidential Attachments A-Q. lf the expense was for an incentive
payment, please include how the payment amount was calculated. For any expenses
that were a result of an allocation, please provide the allocation formula, the total
amount of the expense, and the results of the allocation including how all amounts were
booked.
RESPONSE TO REQUEST NO. 18: Onsite access to the confidential invoices
and other supporting documentation for the expenses identified in this request will be
provided. This information is available for the Idaho Public Utilities Commission Staff to
audit in accordance with Rule of Civi! Procedure 227 and ldaho Code S 61-610 at ldaho
Poweds headquarters upon signing a Protective agreement. Please contact Matt Larkin
at [phone]or Camilla McClusky at [phone] to anange an on-site audit. !n
addition to the backup documentation, notes will be provided for each item to explain
the allocation, if applicable, and any other pertinent information related to the charge.
The response to this Request is sponsored by Pete Pengilly, Gustomer Research
and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REOUEST OF THE COMMISSION STAFF - 7
REQUEST NO. 19: Please prcvide the Company's policies with regard to
employee usage of the Gompany OneCards.
RESPONSE TO REQUEST NO. 19: Please see the attached Pwchasing Card
Standard which is a guideline for the use of the Compan/s purchasing cards.
The response to this Request is sponsored by Randy Mills, Finance Team
Leader, ldaho Power Company.
DATED at Boise, ldaho, this th day of June 2017.
.NO
Attomey for ldaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 8
CERTIFIGATE OF SERVICE
I HEREBY CERTIFY that on the th day of June 2017 I served a true and conect
copy of IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF 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 est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustrial Customers of ldaho Power
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 27h Street (83702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hil! Road
Boise, ldaho 83703
CAPAI
Brad M. Purdy
CAPAI
2019 N. 17th Street
Boise, ldaho 83702
ldaho lrrigation Pumpers Association,
lnc.
Eric L. Olsen
ECHO HAWK & OLSEN, PLLC
505 Pershing Avenue, Suite 100
P.O. Box 6119
Pocatello, ldaho 83205
_Hand Delivered
_U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
_Hand Delivered
_U.S. Mai!
_Overnight Mail
_FAXX Emai! [e-mail]
_Hand Delivered
_U.S. Mail
_Ovemight Mail
_FAXX Email [e-mail]
_Hand Delivered
_U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
_ Hand Delivered
_U.S. Mail
_ Ovemight Mail_ FAXX Emai! [e-mail]
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF - 9
Anthony Yankel
12700 Lake Avenue, Unit 2505
Lakeurcod, Ohio 41OT
_ Hand Delivered
_U.S. Mail_ Ovembht Mai!
_ FA)(X Email [e-mail]
6
Assistant
IDAHO POWER COMPANYS RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF.lO
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPG.E.17.O3
IDAHO POWER COMPANY
ATTACHMENT
RESPONSE TO STAFF'S
REQUEST NO. 16
Month/Year Count
Jun-04 422
Jul-04 428
Aue-04 422
Sep-04 418
Oct-04 4to
Nov-04 409
Dec-04 408
Jan-05 406
Feb-05 405
Mar-05 400
Apr-05 39s
May-05 801
Jun-05 1,309
Jul-05 1,639
Aug-05 !,9U
Sep-05 1,891
1,890Oct-05
Nov-05 1,938
Dec-05 L,992
Jan-06 2,O27
Feb-06 2,L23
Mar-06 2,222
Apr-06 2,412
May-05 3,355
Jun-06 4,242
Jul-05 4,833
Aug-06 5,529
Sep-06 5,711
Oct-06 6,085
Nov-05 6,365
Dec-05 5,659
Jan-07 7,OBL
Feb-07 7,4L9
Mar-07 7,786
Apr-07 8,728
May-07 9,786
Jun-07 10,368
Jul-07 11,090
Aug-07 LL,952
12,45LSep-07
Oct-07 L2,985
Nov-07 13,498
Dec-07 13,830
Month/Year fount
Jan-08 14,532
Feb-08 15,360
Mar{8 t6,270
Apr-08 17,917
May-08 L9,507
Jun-08 2L,069
Jul-08 22,405
Aug-08 22,82L
Sep-08 23,L77
Oct-08 23,507
Nov-08 23,655
Dec-08 23,888
Jan-09 24,493
Feb-09 25,L73
Mar-09 25,989
Apr-09 26,87L
May-09 27,863
Jun-09 29,362
Ju!-09 30,631
Aug-09 31,259
Sep-09 31,580
Oct-09 3L,670
Nov-09 3L,79t
Dec-09 3,-,837
Jan-10 32,L37
Feb-10 32,492
Mar-10 32,858
Apr-10 33,130
May-10 33,333
Jun-10 33,810
Jul-10 34,24t
Aug-10 34,543
Sep-10 34,486
Oct-10 34,342
Nov-10 34,2L9
Dec-10 34,L18
Jan-11 34,140
Feb-11 34,232
Mar-11 34,393
Apr-11 34,609
May-11 35,287
Jun-11 36,223
Ju!-11 36,689
Month/Year Count
Aug-11 36,851
Sep-11 36,734
Oct-11 36,540
Nov-11 36,524
Dec-11 36,535
Jan-12 36,632
Feb-12 36,7L5
Mar-12 36,8t7
Apr-12 36,894
May-12 35,839
Jun-12 36,906
lul-L2 35,873
Aug-12 36,439
Sep-12 35,916
Oct-12 35,500
Nov-12 35,379
Dec-12 35,224
Jan-13 34,873
Feb-13 34,638
Mar-13 34,465
Apr-13 34,223
May-13 33,9L4
Jun-13 33,49L
Jul-13 33,143
Aug-13 32,758
Sep-13 32,432
Oct-13 32,L25
Nov-13 3L,875
Dec-13 3L,692
Jan-14 3L,522
Feb-14 3L,L79
Mar-14 31,028
Apr-14 30,926
May-14 30,836
Jun-14 30,7L6
Jul-14 30,463
Aug-14 29,9L6
Sep-14 29,767
Oct-14 29,820
Nov-14 29,785
Dec-14 29,878
Jan-15 30,093
30,26LFeb-15
Modrfear
Mar-15 30,494
Apr-15 30,613
May-15 30,615
Jun-15 30,299
Jul-15 29,757
Aue-15 29,4t2
Sep-15 29,257
Oct-15 29,026
Nov-15 28,84L
Dec-15 28,707
Jan-16 28,730
Feb-16 28,842
Mar-15 28,895
Apr-16 28,906
May-15 28,96t
Jun-16 28,891
Jun-16 29,160
Jul-15 28,970
Aue-15 28,845
Sep-16 28,623
Oct-16 28,561
Nov-16 28,425
Dec-15 28,275
Jan-L7 28,233
Feb-17 28,130
Mar-L7 28,150
Apr-17 28,tO7
May-17 27,982
in Response to Staff Request No. 35, Case No. IPC-E-16-03
rtial Month query
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
GASE NO. IPC-E-17-03
IDAHO POWER COMPANY
ATTACHMENT
RESPONSE TO STAFF'S
REQUEST NO. 17
Energy Elliciency Advisory Group (EEAG)
Notes dated *3-2017
Prcsent:
Pete Pengilly'-ldaho Power
Jim Hall-Bodybuilding.com
Connie Aschenbrenner-ldaho Power
Stacey Donohue-ldaho Public Utilities Commission
Diego Rivas-Northwest Energy Coalition
Not Present:
Kent Hanway-CSHQA
Don Strickler-Simplot
Ken Robinett+South Central Comm. Action Partnership
John Chatburn-Office of Energy Resources
Guests and Presenters*:
Quentin Nesbitt*-ldaho Power
Billie McWinn*-ldaho Power
Shelley Martin-ldaho Power
Dan Axness-ldaho Power
Catherine Chertudi{ity of Boise
TamiWhit+ldaho Power
Chellie Jensen-ldaho Power
Gary Grayson-ldaho Power
Dan Johnson-Avista
Bryan Wewers-ldaho Power
Cheryl Paoli-ldaho Power
Bill Shawver'-ldaho Power
Sheree Willhite'ldaho Power
Steve Hubble-City of Boise
Lynn Tominaga-lrrigation Pumpers Association
Randy Thorn-ldaho Power
Ben Otto-ldaho Conservation League
Nadine Hanhan (on phonelPublic Utility
Commission of Oregon
Sid Enruin-ldaho lnigation Pumpers Association
Tina Jayaweera-Northwest Power & Conservation
Council
Cory Reaf=ldaho Power
Theresa Drak+ldaho Power
Rob Ord-ldaho Power
Stace Campbell-McCain Foods
Becky Andersohn-ldaho Power
Mindi Shodeen-ldaho Power
Peter Richardson-lndustrial Customers of ldaho Power
Todd GreenwelFldaho Power
Zeke VanHooser-ldaho Power
Becky Arte-Howell-ldaho Power
Jill Simpson-ldaho Power
Denise Humphreys-ldaho Power
Donn English-ldaho Public Utilities Commission
Joe Bonocore-Bonocore Technology Partners
Don Reading-lndustrial Customers of ldaho Power
Bridget Kester-Applied Energy Group (on phone)
Note Takers:
Shawn Lovewell (ldaho Power) with Kathy Yi(ldaho Power)
Meeting Facilitator: Rosemary Curtin
Meeting Convened at 9:30am
Rosemary started the meeting with introduction of members and guests. Connie Aschenbrenner was introduced as
the new member of EEAG that will be replacing Tami White. There were no comm€nts or questions on the
February notes. Pete explained the two financial documents that were sent to EEAG members prior to the
meeting; Appendix I and the 2017 DSM Actual Expenses and Preliminary Energy Savings by Program.
Appendix I had to be modified due to the timing of Idatro Power's eamings release. An updated version will be
sent out next week. The expenses by program and year to date savings will be covered in more detail during the
Program Planning presentation by Billie and Quentin and there is also time set aside for ope,n discussion at the
end of the meeting.
9:48 am-Program Planning-Billie McWinn and Quentin Nesbitt
Billie started her presentation by recogrrizing the work that the program specialist and engineers put into these
programs. She pointed out the poster boards arorurd the room that Idaho Power used to engage customers in a
text-to-win contest during Treefort as a part of the residential educatiorr initiative. There were about 100
participants that took part. Billie provided information and updates for the thermostatic shower valves (TSV), heat
pump waterheatos (HPWH) and home enerryreports (HER).Quentin spoke to the group about commercial
energy efficiency kits and the new Customer Solutions Advisor (CSA) positions.
ln the near-term, the TSV will be included in direct install programs when appropriate. In the long-term,
they will be included in the Energy Saving Kits.
Billie provided information regardingheat pump hot waterheaters, including ttre history of these units in
the Pacific Northwest, cost effectiveness, and considerations. She asked EEAG for their comments on
whether Idaho Power should add this measure to its residential portfolio.
Participating customers will begin receiving I{ER in July or August. At this time, only Idaho customers
will be eligible and Idaho Power expects ap,proximately 15,000 to 20000 people will be included in the
pilot.
Due to the success of the Energy Saving Kits forresidential customers, the company is researching a
similar idea for small conrmercial customers. The cost effectiveness options are being reviewed and the
company would like feedback and ideas from EEAG on what types of iterrs to include in the kits.
Quentin updated the group on the new Customer Solutions Advisor positions, what their role in the
company will be and that some of their time will be charged to the Enerry Efficiency Rider.
There were questions and comments around the TIPWH and how to market these to the consumer; planned
purchase vs. emergencypurchase. Education will be key for contractors on the benefits of FIPWH's, product
availability, and proper installation considerations and protocols. NEEA has convened a regional strategy for
consumer products and the HPWH are a priority product being focused on. The general regional consensus is that
2017 will be a turning year for these units. The federal water heater standards are expected to change in 2021 with
an expectation of more consumer adoption of HPWH. There was discussion around making sure that an incentive
arnount will actually drive a customer toward purchasing a [{PWH. There was also a comment that Idaho Power
should consider parfrrering with the local gas company to jointly offer enerry efficiency programs. Feedback on
the small commercial energy kits focused on having kit categories depending on the type of business that requests
one. For instance, a restaurant might get a sprayer but an office might get a smart strip. A suggestion was made to
include stickers or clings to rernind people to tum machines and lights offand there was another suggestion to
have the kits customizable. Generally, the group seemed pleased that ldaho Power is looking into additional ways
to engage the small business customer.
a
a
a
a
2
11:10 am-2016 Residential End-Use Study-Kathy Yi
Kathy provided highlights of the 2016 residential end use study. She rerninded members that with this survey,
while the company believes the questions are sfaight forward; it does not imply or predict how customers
interpret the questions. A copy of this report is included in the DSM Annual Report-Supplernent 2. The following
key points were presented:
o The most recent studies were completed in 1994, 2004, and 2010.
The largest difference between the 2010 survey and the 2016 surrrcy is how it was distributed to
participants. The survey in 2010 was proportional in the different regions, 2016's was disproportional
and then weighted the results after. In the 2016 surey, Idaho Power followed the vendor's
recommendation and increased the sample size due to timing, holidays and the presidential election.
The content of the 2016 survey was similar to the 2010 survey with only a few differences. Questions
about LEDs, smart thermostats, and program participation were added for 2016.
a
a
11:41 am-2017 Demand Response Preview{uentin Nesbitt
Quentin provided the history of demand response from 2004-2016 along with current status of all three programs;
A/C Cool Credit, Flex Peak and lrrigation Peak Rewards. The following key points were presented:
Approximately 96% of the devices for Irrigation Peak Rewards were replaced last winter due to changing
to AMI dwices.
The Flex Peak program has 5 new sites enrolled fq 2017. The auto enrollment option has worked very
well. This program tends to experience a higher realization rate than what is nominated.
The A/C Cool Credit prograrnhas experienced a small drop in participation levels due to customers
moving.
There were questions and comments regarding the number of A/C Cool Credit switches remaining in inventory,
why we are not marketing to get additional customers to participate in the A/C Cool Credit program, and if Idaho
Power will be providing some sort ofreal time data tool to Flex Peak participants. Quentin answered that we are
continuing to follow the demand response seftlement with regards to marketing the A/C Cool Credit Program and
that the company is working on purchasing software to help make large customer int€r/al metering data more
readily available to customers online.
12:05 Lunch
Catherine Chertudi, former EEAG member, was acknowledged for her participation on the board and presented
her an appreciation gift recogrrizing her years ofservice.
3
12:50 Meettng Reconvened
12:50 pm-Cost-Effectiveness Methods Review-Pete Pengilly
Pete presented a sunmary of the different cost-effectiveness tests, a cost-effectiveness example for lighting
explained what cost-effectiveness is and some of the myths. The following key points were presented:
o Net present value is the idea that the value of a dollar today is worth more than its value tomorrow.
The Participant Cost Test (PCT) looks at the benefits from a participants point ofview, that is, will it
make sense for the customer to participate from a payback perspective. The Utility Cost Test (UCT) lools
at the costs and benefits from the utility's perspective, and the Total Resource Cost Test (TRC) looks at
the costs and benefits from the point of view of all customers (hth participants and non-participants).
Cost-effectiveness tests are not an exact science. All utilities calculate cost-effectiveness differently.
Idaho Power uses all three cost-effectiveness test when evaluating prognms.
There were questions and discussion regarding quantiffing non-energy benefits and the benefits of using all three
tests in regards to programs. The DSM Annual Report-Supplement I has all of the cost effectiveness information
for each program. The company was complimented on its hard work in putting this information together.
lz26pm-2016 Energy Efliciency Potential Study-{ory Read & Bridget Kester (AEG)
Cory highlighted the results of the overall enerry efficiency potential shrdy along with the top measures for
residential, commercial, industrial, and irrigation custorner segments. The following key points were presented:
Bridget explained that ttre baseline forecast is what the load would be if there were no more programs.
Codes and standards are taken in to account. Ralistic achievable potential is what Idaho Power can
achieve.
Technical potential is if all technologies are adopted. Economic potential is calculated using Idatro
Powers avoided costs.
a
a
a
a
a
a The differences between economic and achievable are based on mmp rates from the Northwest Power and
Conservation Council (Council). The factors that determine ramp rates use the 2015 actual program
results along with the 7ft Plan Council ramp rates and look at how many of those measures are being
turned over. Then compared what the ramp rate shows vs. what Idaho Power is achieving.
a For this potential study, just the TRC was used. Once program planning begins, however, the other cost-
effectiveness tests are used.
There were questions and discussion around ramp rate order of operation, why CFLs are still part of the measure
list for residential customers, commissioning and retro-commissioning for commercial customers and if Idaho
Power has done any pilot progrcms around Low Elevation SprinHer Application (LESA).
2 :50 pm-Program Marketing-Bill Shawver
Bill informed the group that as of Monday May I't, his department will now be called Corporate Communications
and Marketing. He updated the group on the spring campaigrr arfiZignal, a new media intellige'nce tool being
used by his departnent. The following points were presented:
4
o Customers have indicated that Connections is the most effective communication channel in regards to the
spring ad campaigl The animation for this ad campaign was updated this year and will run again in the
fall.
Earned media is very important to Idaho Power because it is based on the company's reputation and
relationships with news outlets and there is no cost associated with it.
Zignal is a new media intelligence tool that provides real time data every l0 seconds on what is being said
about the company in traditional media and social media. The tool was dernonsfiated to the group. There
was question and discussion around how to use Zignal to promote energy effrciency. This could be used
as a way to engage customers. Since this tool is reacting to the stories in the media and who is talking
about thern, it could be used as a way to respond to complaints in a more targeted way. The company will
need to target its audience based on whether or not they are on the internet. Target marketing could be
another way to use this and to see how effective a marketing campaign actually is.
a
a
3 :30 pm-WrapUp/Discussion
There was some firther discussion on agenda flexibility and
up topics and work collaboratively to resolve any issues that
how these meetings are the forum in which to bring
arise.
Appreciated the forward look of new prograrn measures, the presentations by Pete and Cory, and Bill.
Also appreciated the flexibility to override the agenda.
Like the forward look and the end use and potential studies.
Appreciate all the members of EEAG. The cornpany wanted to make this meeting more educational rather
than just progarn reporting. In reply to an earlier comment about financial information, the company will
be able to discuss this in the future, but was just a timing issue. The company will look into having ftre
Division of Building Safety provide a presentation on building codes.
Enjoyed being able to attend this meeting in person. Glad the company is looking into HPWH. It would
be nice to see the company do a pilot progam on LESA and discuss Sfrategic Energy Management
(SEM) more.
4:00 Meeting Adjoumed
a
a
a
5
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPG-E-17-03
IDAHO POWER COMPANY
ATTACHMENT
RESPONSE TO STAFF'S
REQUEST NO. 19
ldaho Power Purchasing Card Standard
Table of Contents
Purchasing Card Standard
l. Introduction
2. Compliance
I
I
I
I3. Objectives
7. Disputed Charges...... ..........4
8. Documentation Requirements............. ......................4
9. Descriptions................. ........5
10. Reconciliation of Monthly Statements.. .....................5
ll. ReviewandApproval of Expenditures........... ...........5
!,L
TEEcG*r,o
lnternalUse Only Page iVersion 7.0
The online version ofthis standard supeBed€s any prln(ed v€rsions.
Purchasing Gard Standard ldaho Poupr
!,t-
rtrE'c(grldo
This page left blank intentionally.
Version 6.0
The online wrslon of this standad cuper*d* any ptlnEd uErlions.
Page ii Internal Use Only
ldaho Power Purchasing Card Standard
Purchasing Card Standard
1 lntroduction
a) ldatro Power Company (IPC) purchasing cards (Pcard) are issued to ernployees to
facilitate prccurcment of services and materials necessary to conduct IPC business.
b) PCards will be issued to only those employees who have demonstrated a need to
purchase goods and services. In addition to the Purchasing Cmd Standard,
leaders are encouraged to understand PCard guidelines to further assist in
understanding appropriate business purposes.
c) IPC employees shall not use company PCards for non-business purposes.
d) IPC managers and leaders shall be responsible for reviewing and approving
PCard expenditures in compliance with the Purchasing Card Standard.
e) The Purchasing Cord Standard is authorized by the Pructtrement and
Contracting Policy.
2. Gompliance
a) To the extent this standard applies to an employee's performance of work for
the company, such employee must comply with this Purchasing Card Stondard.
Any employee who fails to do so may be subject to disciplinary actions, which may
include, among others, termination of employment.
b) Employees unable to exercise good business judgment in the usage of their PCard
will forfeit the use of their PCard privileges.
c) The vice president (VP), corporate controller, and chief accounting officer (CAO)
is the designated oversight ofticer for the Purchasing Card Standard and is
responsible for compliance monitoring, necessary training, and annual review of the
P urchas ing C ard St andud.
d) PCard administrators, Accounts Payable, Audit Services, and others may review
PCard expenditures for compliance with the Purchasing Card Standard.
3. Objectives
a) The Purchasing Card Standard provides IPC employees with defined processes
for use of PCards. The processes will include appropriate expenditures and
out-of-pocket reimbursement for employee expenses and reyiew and approval
of expenditurcs and reimbursements.
Version 7.0
The online rrersion of this standad supersedes any printed \rersiorB.
:1...,.
lnternal Use Only Page 1 of E
Purchasing Card Standard ldaho Power
4. lssuance of Pcards
a) Employee eligibility for a PCard is determined by business need and whether the
employee will meet the expected total minimum spend of S1,000 within a three-year
period. Upon renewal of the card, usually within three years from issuance, the past
expense totals will be reviewed. If the spcnd is less than $1,000, the employee's
approver and/or business unit officerA/P may be required to detcrmine if the card
should be renewed. If the approver believes that not having a PCard will create
business inefficiencies or undue hardship to an employee who has not met the
$1,0m minimum, the approver is responsible to request a hardship exemption to
justify the issuance or continued use of a PCard. The request must be approved by
the business unit's VP. The following criteria shall be considered:
(l) Charges on the Pcard can be assigned to a specialist in the department who can
purchase for all employees within thc department for things, such as office
supplies, conference registrations, airline tickets, etc., to cut down on the
number of cards issued to employees.
(2) A valid purpose must exist for the PCard to be issued. For example
(a) An employee is regularly away from his/ler o{fice or work location and
needs to purchase materials, meals, or lodging.
(b) An employee's job requires travel on IPC business and he/she needs to
pay for those expenses.
(3) PCards are issued to employees with specific, single-transaction and monthly
credit limits in accordance with the disbursement authority limits approved for
their position. Access the Pwchosing Card Resaurce Mam&l on the Spillway
for additional details on establishing limits.
b) Non-employees or contract workers (CW) shall not be issued a PCard.
5. Appropriate Expenditures
a) Employee questions on the appropriate use of the PCard are best handled in advance
of the expenditurc with a discussion with the employee's manager or a leader within
hiVher area.
b) IPC employees shall refer to the Pwthastng Card Resource Manual or job aids for
specific guidance on current approved types ofexpenditures.
6. lnappropriate Expenditures
a) Any non-business-related expenditure shall be considered inappropriate.
Supervisors or managerc shall determine if an expenditurt is inappropriate
and rcquire the employee to rcimburse IPC. The personal charges feature in
Version 7.0
The online version of this standard supersedes any printed versions.
Page 2 of 8 lntemal Use Only
ldaho Pourer Purchasing Card Standard
the Wells Fargo system can be used to reimburse the company by deducting
the personal charge from the employee's personal checking/savings account.
Using the PCard for personal expenses is not permitted.
b) Some expenditures may be business related but inappropriate for payment on the
PCard. These types of expenditurcs may result in suspension of the user's PCard.
Repeated violations may result in employee discipline, which may include,
.rmong others, termination of employment.
c) Examples of inappropriate expenditures include, but are not limited to,
the following:
(l) Personal entertainment, such as concefts, plays, and movies. Movie tickets may
be purchased as long as the purchase is associated to an Excellence Award for a
given employee or group of employees.
@ Bar tabs for alcoholic beverages, unless purchased by an IPC officer or the
expenditure is preapproved by the employee's next-level manager, director,
or oflicer.
(3)
(4)
(5)
(6)
(7)
Car washes for personal car.
Parking or traffic tickets.
Spa (i.e., massages, facials, manicures, etc.).
Perconal items, such as wearing apparel, toiletries, newspapers, magazines,
and other private reading material. Exception to apparel is for
company-authorized FR (Fire Resistent) clothing through [PC's
authorized vendor.
(8) Prescription protective eyewear-this is covered under the Msion Service Plan
(VSP) and should not be charged to a PCard. rr'isit the Safety page ofthe
Human Resources (HR) website for more information on personal protective
equipment (PPE).
(9) Airline, hotel and rental car upgrades are not permitted unless required for
business necessity as determined by management. Additional documentation
may be required to demonstrate why the upgrade was necessary from a
business standpoint.
(10) Valet parking.
(l l) Lottery tickets except when purchased for, or in conjunction with,
an Excellence Award.
Barbers and hairdressers.
:t.t
lnternalUse Only Page 3 of 8Version 7.0
The online veBion of this standard supersedes arry printed veBions.
Purchasing Card Standard ldaho Power
7
8
(12) Any merchant, product or service normally considered to be an inappropriate
use of IPC funds, or is in violation of the Codc of Business Con&tct.
(13) Capital equipment (computers, offrce furniture, etc.). There are some
exceptions to this rule. Consult the Supply Chain department or the PCard
administrator for further guidance. Proper accounting ofthese types of
purchases is critical.
(14) Items purchased for inventory (without prior approval from the
Materials manager.)
(15) Fuel for IPC vehicles when a fleet fuel card is available.
(16) Multiple charges on the same day to the same vendor that total more than the
employee's single purchase limit (this could be considered as trying to go
around this Purchasing Canl Stailord1.
(17) Procwement of services requircs an authorized executed contract per the
Prccuring Goods and Service Standard, unless covered by the Procurement
S e lf- Se m i c e Guide I ine s.
Disputed Charges
a) Employees are rcquired to dispute any charges that have been wrongfutly applied to
their bank statement. Refer to the Purchasing Card Resource Mmtual for the specific
process to dispute a charge.
Documentation Requirements
a) All original receipts are required to provide valid proof of purchase and shall be
provided for reconciliation purposes, with the exception of meal rcceipts less than
$25. If an original is lost and another receipt cannot be obtained, lrpe "lost receipf'
in the description field online. In the case of a meal charge with multiple people
participating in the meal, all participants shall be listed in the description field in
Wells Fargo or, if not enough space is available, Iist the people participating on a
separate list and include in the reconciliation envelope. Refer to the Purchasing Card
Resource Manual.
b) Documentation shall be considered any form of hard copy receipt from a business
where an expense was incuned. Types of receipts include rcceipts provided by a
"bricks and mortar" establishment or may,be hard copies of receipts printed on a
printer from an intemet company. Examples include hotel receipts; car rental
receipts; or receipts printed from online businesses, such as Amazon,
Southwest Airlines, Pink Elephant etc.
Note: A packing list is not considered adequate documentation.
Version 7.0
The online version ofthis standard supersedes arry printed versions.
Page 4 of I lnternalUse Only
ldaho Power Purchasing Card Standard
9. Descriptions
a) Descriptions must accompany any receipt and/or expense incurred by a cardholder.
A description needs to address the what, where, when, or why of an expense.
Descriptions need to be in compliance with IRS Publication 463 (Travel,
Entertainment, Gift & Car Expenses) Section 5.0 (Record keeping).
b) Examples of valid descriptions can be found in the Purchasing Cord
Resource Mamtal.
c) Use ofa wod< order shall not be considered an adequate description.
10. Reconciliation of Monthly Statements
a) Each employee shall reconcile hiVher monthly PCard statements during the
reconciliation period of each calendar month. Refer to the PCard Calendar for
more information.
b) Employees using the weekly out-of-pocket reimburcement process will reconcile
their expenses weekly if reimbursement was deposited into their personal account
c) A complete reconciliation shall include a copy of the bank statement printed by the
employee in the Wells Fargo system, all receipts, and a reconciliation envelope.
A completed reconciliation packet shall be sent to the Accounts Payable departrnent
no later than the l5th of each calendar month (unless delayed due to a holiday)
for the standard PCard program and weekly if the employee has out-of-pocket
expenses each week. Refer to the PCard Calendar for more information.
d) Receipts shall accompany each expenditure and include an explanation ifthe
expenditure is not self-explanatory. Meal rcceipts shall include a business purpose
and a listing of the individuals who partook in the meal. Refer to the Purchosing
Card Resource Manual for meals for further examples of properly completed
mealreceipts.
e) The supervisor or manager of a terminated employee, an employee on short-term
disability (STD), or a newly retired employee shall be responsible for completing all
reconciliations for that employee. A reconciler may be set up to reconcile an
employee's charges by contacting the PCard administrator.
11. Review and Approval of Expenditures
a) Officers, managers, and leaders shall review and approve all PCard expenses from
their direct reports, Approvers that review and approve expenses shall be held
accountable for the expenses they approved when expenses are reported each month
via the reconciliation process. During the approver periods in the Wells Fargo
system, the approvers shall review for the usage ofcorrect accounting codes
*:tn
Internal Use Only Page 5 of EVersion 7.0
The online version of this standard supersedes any printed verslons.
Purchasing Card Standard ldaho Power
and required business purpose. Each business unit VP shall have ultimate
accountability for the expenses that roll up to their respective business unit.
inapprupriaie exp€nses discovere<i during the review process may be denied,
resulting in the employee paying for those expenses from his/her personal checking
or savings accounts during the review process.
b) Officers, managers, and leaders that review and approve PCard expenses shall have
those reviews and approvals completed during the approvers'time frame,
which varies each month and is detailed on the PCard Calendar.
c) Employees can reconcile their charges anytime during the month, but will have
to complete the reconciliation within the appropriate timeframe, as indicated on the
PCard Calendar. Two days after the charge goes through Vis4 charges will be in the
Wells Fargo system to reconcile.
d) Approvers shall monitor PCard stfi-6f:pocket expenses to ensurE there are no
duplicate entries for company reimbursement.
e) Employees cannot approve their own charges or expenses in the Wells Fargo system.
This rule allows for improved cash controls and impnrved security.
12. Terminated Employees
a) Immediatetermination:
(l) The manager or leader must contact the PCard administrator so the card can be
deactivated, regardless ofwho has physical possession ofthe card.
(2) The manager or leader must make a diligent attempt to rctrieve the PCard and
all receipts prior to the employee leaving IPC property.
(3) The manager or leader must make sure there are no outstanding out-of-pocket
expenses.
b) Advance notice of termination (retirement or resignation):
(l) Managers or leaders shall retrieve the employee's PCard as soon as notice of
termination is received.
@ Managers and leaders are to notifr the PCard administrator so the PCard can
be terminated.
(3) The manager or leader may destroy the card as long as the PCard administrator
has been notified.
Version 7.0
The online version of this standard sup€rsedes any printed versions.
Page 6 of I lnternal Use Only
ldaho Power Purchasino Card Standard
13. Lost, Stolen, or Fraudulent use of the Pcard
a) lmmediately report lost or stolen FCards to Wells Fargo Bank. Call l-800-932-0036
or l-800-Visa9ll (24-7). Also contact the PCard administrator at388-2499.
b) Employees are responsible for immediately reporting any fraudulent charges they see
on their PCard statement. Employees are required to call Wells Fargo at
l-800-932-0036 or l-800-Visa9ll Q+-l) to report these charges. Also contact the
PtCard administrator at 388-2499.
14. Gontact lnformation
Heather James, ext.2499, CHQ-7, Finance Department
Frank Mattem, ext.5930, CHQ-7, Finance Department
15. Definitions
Purchasing Card (PCardfThe Idaho PowerCompany (IPC) purchasing card (Visa).
Purrchasing Card (PCard) Administrator-The individual responsible for all phases ofthe
administration of the PCard from issuance to elimination.
PCard Calendar-A l2-month calendar created by the administrator that details the cardholder
reconciliation period, the approval period, and when the envelope containing receipts is due into
Accounts Payable.
Services-Purchases with a labor component performed by a third party to support ldaho Power
Company (IPC) business operations. Services can meet a wide range ofneeds (i.e., construction,
repairs, maintenance, consulting, etc.) and can be performed on-site at IPC facilities, off-site at
supplier's facilities, or at other locations.
Version 7.0
TIE qnline \rerslon of this stiandard supersdB any printed versions.
1'L($
E'clt,rtJa
lnternal Use Only Page 7 of 8
Purchasing Card Standard ldaho Power
16. ReviedRevision History
Review Date Revlgions Revlewed By
01t11t10
07to1t't1
05114t12
08to2t13
w14t14
wn7n5
08/15/16
Standard was adopted.
Annual review uas completed, standad updated, and apprcved. Version 2.0
Annual rcview was completed, standard updated. and approved. Version 3.0
Annual review was completed, standard updaEd, and approved. Version 4.0
Annual revieri, was completed, standard updated, and approved. Version 5.0
Annual rcviewwas completed, standard updated, and approved. Version 6.0
Annual review was completed; no changes needed. Version 7.0
Steve Keen
Ken Peters€n
Ken Petersen
SEve Keen
E'Ltgt,sL(E+fa
Version 7.0
TfE online veBion of this standad supercede any printed versions.
Page E of I lntemalUse Only