20120719Attach ICL 4 -2.pdf

Date: May 9, 2012
To: Don Jones, Jr.
From: Aaron Jenniges and Andy Eiden
Re: Idaho FinAnswer Express 2012-2014 Cost-Effectiveness

The tables below present the cost-effectiveness findings of the Idaho FinAnswer Express
program based on projected 2012, 2013, and 2014 costs and savings estimates provided by PacifiCorp in a spreadsheet entitled “ID CE inputs 4-26-2012 3 + DLJ adds for RR NTG and
measure life 042712.xlsx”. The Utility discount rate is from the 2011 PacifiCorp Integrated
Resource Plan.
Cost-effectiveness was tested using the 2011 IRP medium 69% east system load factor
decrement. Table 1 lists modeling inputs, and Table 2 shows the annual cost and savings information provided by PacifiCorp. Table 3 provides measure lives (from 2011 annual report
cost-effectiveness analyses) for each bundle, provided by PacifiCorp, as well as realization rates
and net-to-gross ratio for each bundle’s savings values (from the 2006-2008 program
evaluation). Table 4 outlines the administrative costs.
Overall, the FinAnswer Express program is cost-effective from four of the five standard cost-benefit tests. It does not pass the RIM test. Cost-effectiveness results for the entire program and
each measure group are provided starting in Table 5. Results are shown for the 2012, 2013, and
2014 program years combined.
ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012 Page 2
Table 1: FinAnswer Express Inputs
Parameter Value
Discount Rate 7.17%
Commercial line loss 9.326%
Industrial line Loss 9.055%
Commercial energy rate ($/kWh)1
2012 $0.0800
2013 $0.0815
2014 $0.0829
Industrial energy rate ($/kWh)2
2012 $0.0572
2013 $0.0582
2014 $0.0593

1 The 2011 commercial energy rate is $0.0786 / kWh. The 2011 rate is escalated by 1.8% (inflation rate from 2011 IRP) annually to estimate 2012-2014 rates.

2 The 2011 industrial energy rate is $0.0562 / kWh. The 2011 rate is escalated by 1.8% (inflation rate from 2011
IRP) annually to estimate 2012-2014 rates.
ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012
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Table 2: FinAnswer Express Annual Costs and Savings by Year and Measure Type
FinAnswer Express Gross kWh Gross KW Participant
End Use Savings Savings Incentives Incremental Cost
2012
Appliances 4,306 0 $700 $1,634 Compressed Air 39,600 3 $5,980 $25,082 Envelope 9,507 2 $3,806 $8,783 Farm Equipment 20,400 4 $2,872 $7,217 Food Service 92,603 22 $13,475 $27,245 HVAC 131,303 34 $22,775 $83,668 Irrigation 0 0 $0 $0 Lighting Equipment 1,230,869 137 $47,782 $271,922 Motors 351,965 4 $21,504 $61,279 Office Equipment 3,182 0 $287 $412 Non Trade-Ally 188,373 35 $23,961 $47,093 2012 Total 2,072,108 241 $143,143 $534,335
2013
Appliances 4,306 0 $700 $1,634 Compressed Air 79,200 7 $11,959 $50,164 Envelope 10,748 2 $4,267 $9,922 Farm Equipment 40,800 7 $5,745 $14,434 Food Service 123,983 30 $19,038 $36,838 HVAC 148,727 38 $25,285 $92,553 Irrigation 0 0 $0 $0 Lighting Equipment 1,307,799 146 $50,769 $288,917 Motors 432,517 4 $26,513 $75,547 Office Equipment 3,668 0 $308 $448 Non Trade-Ally 215,175 40 $27,370 $53,794 2013 Total 2,366,922 274 $171,953 $624,250
2014
Appliances 5,304 0 $850 $2,004 Compressed Air 88,030 8 $13,293 $55,757 Envelope 12,096 3 $4,881 $11,130 Farm Equipment 45,350 8 $6,385 $16,043 Food Service 127,383 30 $19,838 $36,255 HVAC 168,678 44 $30,920 $109,946 Irrigation 0 0 $0 $0 Lighting Equipment 1,000,081 112 $38,823 $220,937 Motors 510,856 5 $31,341 $89,434 Office Equipment 4,154 0 $329 $484 Non Trade-Ally 196,193 36 $24,956 $49,048 2014 Total 2,158,125 247 $171,615 $591,039
All Years
Appliances 13,916 1 $2,250 $5,272 Compressed Air 206,830 18 $31,231 $131,003 Envelope 32,351 7 $12,954 $29,835 Farm Equipment 106,550 19 $15,002 $37,694 Food Service 343,968 82 $52,350 $100,338 HVAC 448,707 116 $78,980 $286,166 Irrigation 0 0 $0 $0 Lighting Equipment 3,538,749 395 $137,375 $781,776 Motors 1,295,338 13 $79,357 $226,260 Office Equipment 11,004 1 $924 $1,344 Non Trade-Ally 599,741 111 $76,288 $149,935 All Years Total 6,597,154 762 $486,710 $1,749,623

ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012
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Table 3: FinAnswer Express Measure Lives, Realization Rates, and NTG by Measure Type
Measure Realization Net-to-
End Use Life Rate Gross
Appliances 12 0.96 0.76
Compressed Air 12 0.96 0.76
Envelope 12 0.96 0.76
Farm Equipment 12 0.96 0.76
Food Service 12 0.96 0.76
HVAC 12 0.96 0.76
Irrigation 12 0.96 0.76
Lighting Equipment 12 0.96 0.76
Motors 12 0.96 0.76
Office Equipment 12 0.96 0.76
Non Trade-Ally 12 0.96 0.76

Table 4: Program Costs
Year
Third Party Program Delivery Services Incentives Design and Program development Evaluation Marketing Utility Labor
Engineering + Lighting inspections Total
2012 $190,694 $143,143 $20,000 $196,650 $30,000 $65,000 $80,000 $725,487
2013 $211,177 $171,953 $20,000 $10,000 $30,000 $65,000 $80,000 $588,129
2014 $191,561 $171,615 $20,000 $95,851 $30,000 $65,000 $80,000 $654,027
Total $593,432 $486,710 $60,000 $302,501 $90,000 $195,000 $240,000 $1,967,643

ID PAC-E-12-11
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Don Jones, Jr. May 9, 2012
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Table 5: FinAnswer Express Cost Effectiveness, All Years, Entire Program
FinAnswer Express - Entire Program East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0635 $2,630,578 $4,301,764 $1,671,186 1.635
Total Resource Cost Test (TRC) No Adder 0.0635 $2,630,578 $3,910,695 $1,280,117 1.487
Utility Cost Test (UCT) 0.0445 $1,843,710 $3,910,695 $2,066,985 2.121
Rate Impact Test (RIM) $5,154,993 $3,910,695 ($1,244,298) 0.759
Participant Cost Test (PCT) $1,631,420 $4,809,963 $3,178,543 2.948
Lifecycle Revenue Impacts ($/kWh) $0.000035916
Discounted Participant Payback (years) 3.59

Table 6: FinAnswer Express Cost Effectiveness, All Years, Appliance Measures
FinAnswer Express - Appliances East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder 0.0428 $3,727 $8,651 $4,924 2.321
Total Resource Cost Test (TRC) No Adder 0.0428 $3,727 $7,865 $4,138 2.110
Utility Cost Test (UCT) 0.0240 $2,093 $7,865 $5,771 3.757
Rate Impact Test (RIM) $9,164 $7,865 ($1,299) 0.858
Participant Cost Test (PCT) $4,904 $11,396 $6,493 2.324
Lifecycle Revenue Impacts ($/kWh) $0.000000037
Discounted Participant Payback (years) 3.97

Table 7: FinAnswer Express Cost Effectiveness, All Years, Compressed Air Measures
FinAnswer Express – Compressed Air East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder 0.0717 $91,531 $125,560 $34,028 1.372
Total Resource Cost Test (TRC) No Adder 0.0717 $91,531 $114,145 $22,614 1.247
Utility Cost Test (UCT) 0.0225 $28,712 $114,145 $85,433 3.976
Rate Impact Test (RIM) $103,213 $114,145 $10,932 1.106
Participant Cost Test (PCT) $120,436 $126,740 $6,304 1.052
Lifecycle Revenue Impacts ($/kWh) ($0.000000316)
Discounted Participant Payback (years) 12.23
ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012
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Table 8: FinAnswer Express Cost Effectiveness, All Years, Envelope Measures
FinAnswer Express - Envelope East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder 0.1042 $21,076 $21,238 $162 1.008
Total Resource Cost Test (TRC) No Adder 0.1042 $21,076 $19,307 ($1,769) 0.916
Utility Cost Test (UCT) 0.0595 $12,037 $19,307 $7,270 1.604
Rate Impact Test (RIM) $28,436 $19,307 ($9,129) 0.679
Participant Cost Test (PCT) $27,732 $33,615 $5,883 1.212
Lifecycle Revenue Impacts ($/kWh) $0.000000264
Discounted Participant Payback (years) 8.99

Table 9: FinAnswer Express Cost Effectiveness, All Years, Farm Equipment Measures
FinAnswer Express – Farm Equipment East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0401 $26,337 $74,153 $47,817 2.816
Total Resource Cost Test (TRC) No Adder 0.0401 $26,337 $67,412 $41,075 2.560
Utility Cost Test (UCT) 0.0210 $13,792 $67,412 $53,620 4.888
Rate Impact Test (RIM) $52,172 $67,412 $15,240 1.292
Participant Cost Test (PCT) $34,654 $64,292 $29,638 1.855
Lifecycle Revenue Impacts ($/kWh) ($0.000000440)
Discounted Participant Payback (years) 5.33

Table 10: FinAnswer Express Cost Effectiveness, All Years, Food Service Measures
FinAnswer Express – Food Service East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder 0.0330 $70,820 $211,991 $141,171 2.993
Total Resource Cost Test (TRC) No Adder 0.0330 $70,820 $192,719 $121,899 2.721
Utility Cost Test (UCT) 0.0226 $48,511 $192,719 $144,208 3.973
Rate Impact Test (RIM) $222,996 $192,719 ($30,277) 0.864
Participant Cost Test (PCT) $93,184 $278,097 $184,913 2.984
Lifecycle Revenue Impacts ($/kWh) $0.000000874
Discounted Participant Payback (years) 2.95

ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012
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Table 11: FinAnswer Express Cost Effectiveness, All Years, HVAC Measures
FinAnswer Express - HVAC East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder 0.0720 $201,974 $294,535 $92,561 1.458
Total Resource Cost Test (TRC) No Adder 0.0720 $201,974 $267,759 $65,785 1.326
Utility Cost Test (UCT) 0.0261 $73,289 $267,759 $194,470 3.653
Rate Impact Test (RIM) $300,709 $267,759 ($32,950) 0.890
Participant Cost Test (PCT) $265,755 $372,526 $106,771 1.402
Lifecycle Revenue Impacts ($/kWh) $0.000000951
Discounted Participant Payback (years) 7.90

Table 12: FinAnswer Express Cost Effectiveness, All Years, Irrigation Measures
FinAnswer Express - Irrigation East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder $0.000 $0 $0 $0 NA
Total Resource Cost Test (TRC) No Adder $0.000 $0 $0 $0 NA
Utility Cost Test (UCT) $0.000 $0 $0 $0 NA
Rate Impact Test (RIM) $0 $0 $0 NA
Participant Cost Test (PCT) $0 $0 $0 NA
Lifecycle Revenue Impacts ($/kWh) $0.00000000
Discounted Participant Payback (years) NA

Table 13: FinAnswer Express Cost Effectiveness, All Years, Lighting Measures
FinAnswer Express – Lighting Equipment East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0250 $557,744 $2,317,599 $1,759,855 4.155
Total Resource Cost Test (TRC) No Adder 0.0250 $557,744 $2,106,908 $1,549,164 3.778
Utility Cost Test (UCT) 0.0058 $128,957 $2,106,908 $1,977,951 16.338
Rate Impact Test (RIM) $1,936,166 $2,106,908 $170,743 1.088
Participant Cost Test (PCT) $733,873 $2,506,863 $1,772,990 3.416
Lifecycle Revenue Impacts ($/kWh) ($0.000004928)
Discounted Participant Payback (years) 3.35

ID PAC-E-12-11
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Don Jones, Jr.
May 9, 2012
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Table 14: FinAnswer Express Cost Effectiveness, All Years, Motors Measures
FinAnswer Express - Motors East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0197 $159,326 $849,303 $689,978 5.331
Total Resource Cost Test (TRC) No Adder 0.0197 $159,326 $772,094 $612,768 4.846
Utility Cost Test (UCT) 0.0091 $73,530 $772,094 $698,564 10.500
Rate Impact Test (RIM) $728,714 $772,094 $43,380 1.060
Participant Cost Test (PCT) $209,639 $935,614 $725,975 4.463
Lifecycle Revenue Impacts ($/kWh) ($0.000001252)
Discounted Participant Payback (years) 2.68

Table 15: FinAnswer Express Cost Effectiveness, All Years, Office Equipment Measures
FinAnswer Express – Office Equipment East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0138 $951 $6,837 $5,886 7.188
Total Resource Cost Test (TRC) No Adder 0.0138 $951 $6,215 $5,264 6.535
Utility Cost Test (UCT) 0.0125 $861 $6,215 $5,354 7.220
Rate Impact Test (RIM) $6,440 $6,215 ($225) 0.965
Participant Cost Test (PCT) $1,251 $8,197 $6,946 6.550
Lifecycle Revenue Impacts ($/kWh) $0.000000006
Discounted Participant Payback (years) 1.92

Table 16: FinAnswer Express Cost Effectiveness, All Years, Non Trade-Ally Measures
FinAnswer Express – Non Trade-Ally East System 69% (2011 medium )
Levelized $/kWh Costs Benefits Net Benefits
Benefit/Cost
Ratio
Total Resource Cost Test (PTRC) + Conservation Adder
0.0282 $106,395 $391,898 $285,503 3.683
Total Resource Cost Test (TRC) No Adder 0.0282 $106,395 $356,271 $249,876 3.349
Utility Cost Test (UCT) 0.0189 $71,229 $356,271 $285,042 5.002
Rate Impact Test (RIM) $376,289 $356,271 ($20,018) 0.947
Participant Cost Test (PCT) $139,993 $472,623 $332,630 3.376
Lifecycle Revenue Impacts ($/kWh) $0.000000578
Discounted Participant Payback (years) 2.74

ID PAC-E-12-11
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