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HomeMy WebLinkAbout20230713IPC to Staff 12-19.pdf MEGAN GOICOECHEA ALLEN Corporate Counsel mgoicoecheaallen@idahopower.com July 13, 2023 Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-23-10 In the Matter of the Application of Idaho Power Company for a Determination of 2022 Demand-Side Management Expenses as Prudently Incurred Dear Ms. Noriyuki: Attached for electronic filing is Idaho Power Company’s Response to the Second Production Request of the Commission Staff in the above matter. A confidential attachment will be sent via encrypted email to the parties who have signed the Protective Agreement. Please treat the confidential documents in accordance with the Protective Agreement. Due to the voluminous nature of non-confidential information provided in response to data requests in this case, the Company is posting the attachments to these requests to the secure FTP site to allow parties to view the requested information remotely. The login information for the FTP site will be provided to all parties, through email. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Megan Goicoechea Allen MGA:cd Enclosures RECEIVED Thursday, July 13, 2023 2:09:12 PM IDAHO PUBLIC UTILITIES COMMISSION CERTIFICATE OF ATTORNEY ASSERTION THAT INFORMATION CONTAINED IN AN IDAHO PUBLIC UTILITIES COMMISSION FILING IS PROTECTED FROM PUBLIC INSPECTION Application of Idaho Power Company for Determination of 2022 Demand-Side Management Expenses as Prudently Incurred Case No. IPC-E-23-10 The undersigned attorney, in accordance with Commission Rules of Procedure 67, believes that the attachment in response to Request No. 19 to Idaho Power Company’s Response to the Second Production Request of the Commission Staff to Idaho Power Company, dated July 13, 2023, may contain information that Idaho Power Company or a third party claims constitutes trade secrets and/or confidential business records of a private enterprise required by law to be submitted to or inspected by a public agency as described in Idaho Code § 74-101, et seq., and § 48-801, et seq., or is otherwise protected from public disclosure and as such is exempt from public inspection, examination, or copying. DATED this 13th day of July 2023. Megan Goicoechea Allen Counsel for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 1 MEGAN GOICOECHEA ALLEN (ISB No. 7623) LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2664 Facsimile: (208) 388-6936 mgoicoecheaallen@idahopower.com lnordstrom@idahopower.com Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR A DETERMINATION OF 2022 DEMAND-SIDE MANAGEMENT EXPENSES AS PRUDENTLY INCURRED. ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-10 IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to the Second Production Request of the Commission Staff (“Commission” or “Staff”) to Idaho Power Company dated June 22, 2023, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 2 STAFF REQUEST FOR PRODUCTION NO. 12: Please provide a breakdown of the Education Distributions costs and savings by offering (i.e., nightlight giveaways, student energy efficiency kits, welcome kits). If applicable, please describe the factor or factors driving the $627,935 increase in education distribution expenses between 2021 and 2022. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 12: The following table is a breakdown of the Educational Distribution costs and kilowatt-hour (“kWh”) savings by offering for 2022. Offering Savings Expenses Admin N/A $15,516 Nightlights 71,040 kWh $9,683 Student Energy Efficiency Kits 2,349,312 kWh $601,074 Welcome Kits 1,321,602 kWh $460,540 Total 3,741,954 kWh $1,086,813 The difference in the Educational Distribution costs between 2021 and 2022 are largely due to the timing of when expenses were incurred as well as increased participation in the program. The expenses associated with Student Energy Efficiency Kit (“SEEK”) increased by approximately $434,500 between program years 2021 and 2022. For school year 2021-2022, Idaho Power selected a new kit vendor, and it took additional time to develop the new curriculum, materials, communications with the teachers, and marketing materials for the offering. This resulted in the offering for the 2021-2022 school year beginning 6 to 8 weeks later than usual and nearly 86 percent of the total charges for the 2021-2022 school year being incurred in the 2022 budget year since many activities were pushed to the spring of 2022. Also, the 2021-2022 school year was a school year with IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 3 increased classroom activities coming out of the COVID-19 pandemic which resulted in increased SEEK participation. With the 2022-2023 school year, teachers were more familiar with the new vendor and processes and kits began shipping early in September 2022. This resulted in 60 percent of the total expenses for the 2022-2023 school year falling into the 2022 budget year, which is more in line with previous years under the old vendor. The expenses associated with the Welcome Kits increased by approximately $170,400 between program years 2021 and 2022. In 2022, the Welcome Kits were modified to include four 1100- lumen light-emitting diode (“LED”) bulbs and two LED nightlights. This was a change from the previous kit configuration of four 800-lumen LED bulbs and one LED nightlight. In August and November 2021, Idaho Power presented the Energy Efficiency Advisory Group (“EEAG”) four different kit configuration options. The priorities considered were maximizing customer experience, minimizing annual costs, maximizing savings, and maximizing cost-effectiveness. Due to feedback from EEAG and the higher savings associated with the 1100-lumen bulb (4.8 kWh) versus the 800-lumen bulb (0.85 kWh), the Welcome Kits were modified for 2022. With higher savings associated with each kit, more dollars were assigned to the Educational Distribution program while the remaining dollars were assigned to the Residential Energy Efficiency Education Initiative. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 4 STAFF REQUEST FOR PRODUCTION NO. 13: Please provide the following for Commercial Energy Savings Kits: a. The contract end date for the current Commercial Energy Saving Kit vendor. b. Of the customers that received a kit in 2021, how many customers participated in other Commercial Energy Efficiency programs in 2021 and 2022. c. Of the customers that received a kit in 2022, how many customers participated in other Commercial Energy Efficiency programs in 2022 and 2023. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 13: a. The contract end date for the Commercial Energy Saving Kit vendor was June 30, 2023. b. Of the nine hundred and six (906) customers who received a kit in 2021, forty-nine (49) participated in another Commercial Energy Efficiency program in 2021 or 2022. c. Of the three hundred and thirty-four (334) customers who received a kit in 2022, eleven (11) participated in another Commercial Energy Efficiency program in 2022 or year-to-date 2023. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 5 STAFF REQUEST FOR PRODUCTION NO. 14: Of the 88 new construction projects in 2022, please provide a breakdown of projects delayed by labor shortages or supply chain issues. If possible, please identify the equipment or materials creating the supply chain delays. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 14: Architects, engineers, construction managers, and owners often discussed in general their experience with labor shortages and supply chain delays, however the New Construction program does not track the reasons for project delays. Projects that have significant delays are likely not represented in the eighty-eight (88) projects paid in 2022 due to the long design and construction phases that can encompass multiple years. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 6 STAFF REQUEST FOR PRODUCTION NO. 15: Please explain the differences and trends between the 2021 and 2022 new construction projects that contributed to the 57 percent increase in savings between years. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 15: New construction projects have long design and construction phases that can encompass multiple years from initial design to final construction completion. Total savings reported for new construction projects can vary significantly year over year because savings are only reported once the project is completed and the final application and supporting documentation are received, reviewed, approved, and the incentive is paid. One or two large projects completed in a specific reporting year can result in a much higher savings amount that particular year compared to another year when there are fewer large projects completed. The five largest projects in the 2022 reporting year had a total savings amount of 20,895 megawatt-hours (“MWh”). The five largest projects in the 2021 reporting year had a savings total of 10,138 MWh, which is about half the amount compared to 2022. It is typical to have some reporting years that are larger than others due to the long design and construction phases of new construction projects. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 7 . STAFF REQUEST FOR PRODUCTION NO. 16: Please provide a breakdown of new construction participation in each of the TRM measures for 2021 and 2022. Please note the 2021 participation before and after the TRM updates on June 15, 2021. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 16: The table below shows a breakdown of the new construction participation in each of the TRM measures for 2021 and 2022. Additionally, new construction projects may have long construction timelines and take years to complete. Each project must submit a preliminary application prior to project completion and a final payment application after project completion. The counts below illustrate the number of measures that qualified for an incentive under the current program design launched on June 15, 2021 and the number of measures under the previous program design. Program Year 2021 Program Year 2022 Measure Pre App Submitted before June 15, 2021 Pre App Submitted after June 15, 2021 2021 Total Pre App Submitted before June 15, 2021 Pre App Submitted after June 15, 2021 2022 Total Air Compressor Variable Speed Drives 15 0 15 2 11 13 Air Side Economizer 3 0 3 7 2 9 Dairy Vacuum Pump Variable Speed Drive 1 0 1 0 1 1 Daylight Photo Controls 1 0 1 3 0 3 Direct Evaporative Coolers 1 0 1 0 0 0 Efficient AC & HP Units 26 2 28 6 4 10 Efficient Chillers 3 0 3 0 1 1 Efficient Condensers 0 0 0 0 1 1 Efficient Laundry Machines 0 0 0 1 0 1 Efficient VRF Units 3 0 3 3 1 4 Energy Management Control Systems 5 0 5 4 1 5 Energy Star Commercial Dishwasher 1 0 1 1 1 ENERGY STAR Ice Machine >=200 lbs/day 0 0 0 0 1 1 IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 8 Continued Program Year 2021 Program Year 2022 Measure Pre App Submitted before June 15, 2021 Pre App Submitted after June 15, 2021 2021 Total Pre App Submitted before June 15, 2021 Pre App Submitted after June 15, 2021 2022 Total Energy Star U/C Dishwasher 1 0 1 0 0 0 Evaporative Pre-coolers on air cooled condensers (refrig) 0 0 0 0 1 1 Exterior Light Load Reduction 38 2 40 21 15 36 High Efficiency Battery Charger 0 0 0 0 1 1 High Efficiency Exit Signs 30 3 33 14 13 27 High Volume Low Speed Fan 4 0 4 0 1 1 HVAC Variable Speed Drives 5 0 5 5 1 6 Interior Light Load Reduction 61 8 69 30 25 55 Kitchen Hood VSD 2 0 2 3 0 3 Low Pressure Drop Filter 0 0 0 2 2 4 Network Lighting Controls (Interior) 0 0 0 0 3 3 No Loss Condensate Drain 4 0 4 1 5 6 Occupancy Sensors 12 1 13 5 6 11 Onion/Potato Shed VSD 4 3 7 3 9 12 Reflective Roof Treatment 9 0 9 12 6 18 Refrigerated Compressed Air Dryer 5 0 5 2 9 11 Refrigerator Strip Curtains 1 0 1 0 0 0 Grand Total 235 19 254 125 120 245 The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 9 STAFF REQUEST FOR PRODUCTION NO. 17: Please provide the amount of labor expenses charged to the Idaho DSM tariff rider for 2022. Please include the number of Full Time Equivalent positions funded by the rider. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 17: Please see the table below for the 2022 Idaho Power demand-side management (“DSM”) labor expenses and full-time equivalent employees: The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. Year DSM FTEs Maximum Allowed Labor Expense Actual Labor Expense Labor Expense (Over)/Under the 2 percent Cap Labor Expense Charged to Tariff Rider 2022 24.14 $3,831,085 $3,392,286 ($11,201) $3,381,085 IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 10 STAFF REQUEST FOR PRODUCTION NO. 18: For promotional and marketing items in 2022, please answer the following: a. Please explain what items the Company claims energy efficiency savings on. b. Please explain sources the Company used to quantify these savings. c. Please send copies of all advertisements the Company paid for in 2022. Including, but not limited to, the 2022 Boise Hawks Sponsorship Package (Audit Selection 60 in AR #2), and the Program Advertisement for the Idaho Shakespeare Festival (Audit Selection 61 in AR #2), and any radio or magazine/newspaper advertisements. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 18: a. Idaho Power does not claim energy savings on promotional and marketing items. Giveaway items for which the Company does claim energy savings fall under the Educational Distributions program. These giveaway items include LED night lights, Welcome Kits, and Student Energy Efficiency Kits. b. As described on pages 44-45 of the Demand-Side Management 2022 Annual Report, Idaho Power uses a variety of savings sources for the giveaway items such as the Regional Technical Forum, third party evaluators, and calculated savings based on survey information. The specific source of savings information can be found on page 16 of Supplement 1: Cost-Effectiveness. c. Please see the attachments provided for this response for copies of all advertisements, along with copies of the Boise Hawks Sponsorship ads and the Idaho Shakespeare Festival print ad. Due to the voluminous nature of the request, the advertisements/attachments have been provided through the Company’s FTP site. Please note there are numerous copies of print and digital ads as many different IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 11 sizes are needed for various publications. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 12 STAFF REQUEST FOR PRODUCTION NO. 19: Please provide a numbered list of all custom projects completed in 2022 with a brief description of the project, the project costs, and the project savings. RESPONSE TO STAFF’S REQUEST FOR PRODUCTION NO. 19: Please see the Confidential attachment provided for this response. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. Respectfully submitted this 13th day of July 2023. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF - 13 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 13th day of July 2023, I served a true and correct 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 Claire Sharp Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg No. 8 Suite 201-A (83714) PO Box 83720 Boise, ID 83720-0074 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email claire.sharp@puc.idaho.gov Ed Jewell Deputy City Attorney Boise City Attorney’s Office 150 N. Capitol Blvd. P.O. Box 500 Boise, ID 83701-500 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email ejewell@cityofboise.org dearly@cityofboise.org boisecityattorney@cityofboise.org Wil Gehl Energy Program Manager Boise City Dept. of Public Works 150 N. Capitol Blvd. P.O. Box 500 Boise, ID 83701-500 Hand Delivered U.S. Mail Overnight Mail FAX FTP Site X Email wgehl@cityofboise.org Christy Davenport Legal Administrative Assistant