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HomeMy WebLinkAbout20231221IPC to Staff 7-12.pdf MEGAN GOICOECHEA ALLEN Corporate Counsel mgoicoecheaallen@idahopower.com December 21, 2023 Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, Idaho 83714 Re: Case No. IPC-E-23-24 Application for Modifications to the Company’s Commercial & Industrial Demand Response Program, Schedule 82 Dear Commission Secretary: Attached for electronic filing is Idaho Power Company’s Response to the Second Production Request of the Commission Staff in the above-entitled matter. If you have any questions about the attached documents, please do not hesitate to contact me. Sincerely, Megan Goicoechea Allen MGA:sg Enclosures RECEIVED 2023 DECEMBER 21, 2023 2:57PM IDAHO PUBLIC UTILITIES COMMISSION IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 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 IDAHO POWER COMPANY’S APPLICATION FOR MODIFICATIONS TO THE COMPANY’S COMMERCIAL & INDUSTRIAL DEMAND RESPONSE PROGRAM, SCHEDULE 82 ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-24 IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company (“Idaho Power” or “Company”), and in response to the Second Production Request of the Commission Staff (“Commission” or “Staff”) dated November 30, 2023, herewith submits the following information: IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2 REQUEST FOR PRODUCTION NO. 7: Please describe the maximum possible advanced notice participants can receive under the advance notification option. Please describe how the Company will determine this lead time when evaluating potential participants. RESPONSE TO REQUEST FOR PRODUCTION NO. 7: The Company has initially aligned on providing advance notification in the 8 AM to 9 AM hour on the day of an event. Therefore, the maximum possible advanced notification would be between 7 and 12 hours depending on the event start time. The Company believes keeping the advance notification consistent for all customers that elect and qualify to participate will ensure consistent program operations, execution, and customer experience for participants. 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 TO IDAHO POWER COMPANY - 3 REQUEST FOR PRODUCTION NO. 8: Please describe what additional risks the advance notification presents in terms of the reliability of the associated load reduction. Please describe what options the Company would consider as part of its case-by-case evaluation to mitigate these risks. RESPONSE TO REQUEST FOR PRODUCTION NO. 8: Idaho Power proposes offering the advance notification option to attract very large customers where the advance notice would make it easier for them to participate, provide more reliable load reduction, and align more with their facility’s needs and operations. In evaluating the advance notification option, which included discussions with customers, Idaho Power does not believe there are additional risks in obtaining reliable load reduction from qualifying customers. The Company believes the proposal would help provide more reliable load reduction, and that the additional time provided by the advance notification option will make it easier for qualifying customers to reliably meet their nominations when demand response events are called. 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 TO IDAHO POWER COMPANY - 4 REQUEST FOR PRODUCTION NO. 9: Please explain if the Company considered a different incentive structure for the proposed advanced notification option. If so, please provide the details and documentation. RESPONSE TO REQUEST FOR PRODUCTION NO. 9: As described below in Response to Request for Production No. 10, the Company will evaluate potential participants based on certain criteria and whether the option is in the customer’s best interest. The Company does not view advance notification as a new option in terms of the hours a customer would participate. It is only new in terms of when qualifying customers would receive notice a demand response event was occurring. Because the hours in which customers are participating are not changing, the Company believes the value of the load reduction does not change. Therefore, Idaho Power did not evaluate or consider a different incentive structure for the proposed advance notification option. 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 TO IDAHO POWER COMPANY - 5 REQUEST FOR PRODUCTION NO. 10: Please explain any other criteria and metrics the Company will consider when evaluating potential advance notification option participants. RESPONSE TO REQUEST FOR PRODUCTION NO. 10: For customers that desire to pursue the advance notification option, the Company will evaluate these potential large customers (3 MW or more) on a case-by-case basis to determine if their load profiles and/or operations would warrant advance notification. The size and shape of a customer’s load profile will be the main factor considered; a large customer with a consistent load profile/shape and/or a very flat load would likely be a good candidate for the advance notification option. Other factors that will be analyzed on a case-by-case basis include the customer’s history participating in the Flex Peak Program (“Program"), the customer’s operating practices, and whether the customer has other sites participating in the Program that could be considered under the Program’s Aggregated Option. The Company will also discuss with the customer in detail on how the baseline and incentive calculations work, the weekly nomination process, and discuss the incentive impacts for not providing their nominated load reduction before determining if the advance notification option would be in the customer’s best interest. 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 TO IDAHO POWER COMPANY - 6 REQUEST FOR PRODUCTION NO. 11: For each participant listed in Attachment 1 to the Company's response to Staff Production Request No. 1, please provide the nominated and actual load reduction for each event called in the 2022 demand response season. RESPONSE TO REQUEST FOR PRODUCTION NO. 11: Please see the Attachment provided for this response. The response to this Request is sponsored by Quentin Nesbitt, Customer Research & Analysis Leader, Idaho Power Company. REQUEST FOR PRODUCTION NO. 12: The data provided in response to Production Request No. 1 suggests that the majority of participants do not adjust their nominations on a weekly basis. Please explain how the Company encourages participants to actively manage their nomination and load reduction performance. RESPONSE TO REQUEST FOR PRODUCTION NO. 12: Idaho Power sends out load reduction performance data to participants after every event. This data includes each participating service location’s nomination, its achieved load reduction, and a graph showing the load along with the calculated baseline over the course of the event. It is not the Company’s goal to incentivize customers to change their nomination on a weekly basis. Rather, the Company’s goal has been to try and find a consistent nomination amount that works for the customer while also providing flexibility for a customer to adjust their nomination or opt out of a week if needed. Following an event, the Program Specialist identifies participants that had poor performance in meeting their nomination, and then an Energy Advisor engages with each of these customers to discuss any nomination adjustments or identify ways a customer could reduce load given their current operations. The Company also provides engineering support to help customers identify load reduction opportunities. 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 TO IDAHO POWER COMPANY - 7 IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8 DATED at Boise, Idaho, this 21st day of December 2023. MEGAN GOICOECHEA ALLEN Attorney for Idaho Power Company IDAHO POWER COMPANY’S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 21st day of December 2023, I served a true and correct Idaho Power Company’s Response to the Second 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 Adam Triplett 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 Adam.Triplett@puc.idaho.gov Stacy Gust, Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-24 IDAHO POWER COMPANY REQUEST NO. 11 ATTACHMENT NO. 1 SEE ATTACHED SPREADSHEET