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HomeMy WebLinkAbout20141001PAC to Staff Attach 2.2.pdf Appendix 1 Cost Effectiveness 2011 Idaho Energy Efficiency and Peak Reduction Annual Report Rocky Mountain Power Revised August 3, 2012 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 1 of 12 2 Table of Contents Portfolio and Sector Level Cost Effectiveness ............................................................................... 3 Program Level Cost Effectiveness .................................................................................................. 5 Home Energy Savings Program – Schedule 118 ........................................................................ 5 Refrigerator Recycling (See ya later, refrigerator®) – Schedule 117......................................... 6 Low Income Weatherization – Schedule 21 ............................................................................... 7 Energy FinAnswer – Schedule 125............................................................................................. 9 FinAnswer Express – Schedule 115 ......................................................................................... 10 Agricultural Energy Services (Irrigation Energy Savers) – Schedule 155 ............................... 12 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 2 of 12 3 Portfolio and Sector Level Cost Effectiveness The overall energy efficiency and peak reduction portfolio and component sectors were all cost effective on a PacifiCorp Total Resource Cost Test (PTRC), Total Resource Cost Test (TRC), Utility Cost Test (UCT), Ratepayer Impact Test (RIM) and Participant Cost Test (PCT) basis. Decrement values are considered confidential on load control programs. Cost effectiveness ratios and inputs will be available under a protective agreement. A “Pass” designation equates to a benefit to cost ratio of 1 or better. The following table provides the results of all five cost effectiveness tests. Sector and Program Level Cost Effectiveness Summaries: The cost effectiveness results for the sector level are aggregations of the costs and benefits from the component programs. The inputs and assumptions that support these results are contained in the program level cost effectiveness results. 2011 Total Portfolio Energy Efficiency Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0783 $3,344,424 $4,147,320 $802,896 1.240 Total Resource Cost Test (TRC) No Adder 0.0783 $3,344,424 $3,770,291 $425,867 1.127 Utility Cost Test (UCT) 0.0550 $2,531,717 $4,077,333 $1,545,617 1.611 Rate Impact Test (RIM) $5,876,251 $4,077,333 ($1,798,918) 0.694 Participant Cost Test (PCT) $2,191,770 $4,746,620 $2,554,850 2.166 Lifecycle Revenue Impacts ($/kWh) $0.0000360157 2011 Portfolio and Sector Cost Effectiveness Summary Cost Effectiveness Test PTRC TRC UCT RIM PCT 2011 Total Portfolio including Load Control 4.348 3.953 2.224 1.735 4.937 2011 Total Energy Efficiency Portfolio 1.240 1.127 1.611 0.694 2.166 2011 C&I Energy Efficiency Portfolio 1.296 1.178 1.813 0.794 1.655 2011 Residential Energy Efficiency Portfolio 1.173 1.066 1.376 0.582 3.341 2011 Irrigation Load Control Pass Pass Pass Pass NA ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 3 of 12 4 2011 Residential Energy Efficiency Portfolio Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0803 $1,514,245 $1,776,200 $261,955 1.173 Total Resource Cost Test (TRC) No Adder 0.0803 $1,514,245 $1,614,727 $100,482 1.066 Utility Cost Test (UCT) 0.0622 $1,173,187 $1,614,727 $441,540 1.376 Rate Impact Test (RIM) $2,776,108 $1,614,727 ($1,161,381) 0.582 Participant Cost Test (PCT) $664,090 $2,218,950 $1,554,860 3.341 Lifecycle Revenue Impacts ($/kWh) $0.0000232517 2011 C&I Energy Efficiency Portfolio Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0762 $1,830,179 $2,371,120 $540,941 1.296 Total Resource Cost Test (TRC) No Adder 0.0762 $1,830,179 $2,155,564 $325,385 1.178 Utility Cost Test (UCT) 0.0493 $1,358,529 $2,462,606 $1,104,077 1.813 Rate Impact Test (RIM) $3,100,143 $2,462,606 ($637,537) 0.794 Participant Cost Test (PCT) $1,527,679 $2,527,670 $999,991 1.655 Lifecycle Revenue Impacts ($/kWh) $0.0000178050 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 4 of 12 5 Program Level Cost Effectiveness Home Energy Savings Program – Schedule 118 The tables below present the cost-effectiveness findings of the Idaho Home Energy Savings program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 35% east residential whole house load factor decrement. Table 1: Home Energy Savings Annual Program Costs Table 2: Home Energy Savings Savings by Measure Type Table 3: IRP 35% Load Factor Decrement All Measures AC: IRP 65% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0656 $954,947 $1,381,256 $426,309 1.446 Total Resource Cost Test (TRC) No Adder 0.0656 $954,947 $1,255,687 $300,740 1.315 Utility Cost Test (UCT) 0.0422 $613,890 $1,255,687 $641,798 2.045 Rate Impact Test (RIM) $1,843,888 $1,255,687 ($588,201) 0.681 Participant Cost Test (PCT) $664,090 $1,664,734 $1,000,644 2.507 Lifecycle Revenue Impacts ($/kWh) $0.0000117762 Discounted Participant Payback (years) 1.96 Program management and Administration Other Program Costs Incentives Total Utility Costs Net Participant Incremental Cost Lighting $8,499 $962 $52,374 $61,835 $247,956 Appliance $223,881 $25,347 $136,216 $385,444 $267,439 Home Improvement $104,971 $11,885 $36,119 $152,974 $44,886 HVAC $9,600 $1,087 $2,950 $13,637 $8,436 Total $346,951 $39,281 $227,658 $613,890 $568,716 Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Lighting 1,879,824 103% 1,936,219 85% 1,645,786 5.0 Appliance 351,561 161% 566,013 86% 486,771 14.0 Home Improvement 164,836 75% 123,627 87% 107,555 30.0 HVAC 15,075 99% 14,924 86% 12,835 14.0 Total 2,411,296 2,640,783 2,252,948 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 5 of 12 6 Refrigerator Recycling (See ya later, refrigerator®) – Schedule 117 The tables below present the cost-effectiveness findings of the Idaho See-Ya-Later Refrigerator program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 35% east residential whole house load factor decrement. Table 1: See-Ya-Later Annual Program Costs Marketing and Program Development Utility Admin Program Management and Administration Incentives Total Utility Costs Net Participant Incremental Cost Refrigerators $995 $5,178 $56,730 $16,260 $79,163 $7,902 Freezers $286 $1,488 $16,301 $5,040 $23,115 $2,853 Kits $75 $391 $4,289 $0 $4,756 $0 Total $1,357 $7,057 $77,320 $21,300 $107,033 $10,755 Table 2: See-Ya-Later Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Refrigerators 622,758 103% 641,441 49% 311,740 5.00 Freezers 267,120 69% 184,313 57% 104,321 5.00 Kits 53,298 91% 48,501 100% 48,501 6.60 Total 943,176 93% 874,255 53% 464,562 Table 3: IRP 35% Load Factor Decrement All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0418 $96,489 $187,671 $91,182 1.945 Total Resource Cost Test (TRC) No Adder 0.0418 $96,489 $170,610 $74,121 1.768 Utility Cost Test (UCT) 0.0464 $107,034 $170,610 $63,576 1.594 Rate Impact Test (RIM) $294,767 $170,610 ($124,157) 0.579 Participant Cost Test (PCT) $21,300 $369,026 $347,726 17.325 Lifecycle Revenue Impacts ($/kWh) $0.000006024 Discounted Participant Payback (years) 0.22 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 6 of 12 7 Low Income Weatherization – Schedule 21 The tables below present the cost-effectiveness findings of the Idaho Low Income Weatherization program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 medium IRP 35% east residential whole house load factor decrement. The results for a second scenario with reduced evaluation costs are also presented below. Table 1: Low Income Weatherization Annual Program Costs Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Low Income weatherization $15,941 $18,240 $37,150 $182,479 $253,809 $0 Table 2: Low Income Weatherization Annual Program Costs – Reduced Data Request Costs Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Low Income weatherization $15,941 $18,240 $7 $182,479 $216,666 $0 Table 3: Low Income Weatherization Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Low Income weatherization 228,605 65% 148,593 100% 148,593 25.00 Table 4: Low Income Weatherization All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.1263 $253,809 $207,273 ($46,536) 0.817 Total Resource Cost Test (TRC) No Adder 0.1263 $253,809 $188,430 ($65,379) 0.742 Utility Cost Test (UCT) 0.1263 $253,809 $188,430 ($65,379) 0.742 Rate Impact Test (RIM) $438,998 $188,430 ($250,568) 0.429 Participant Cost Test (PCT) $0 $185,189 $185,189 N/A Lifecycle Revenue Impacts ($/kWh) $0.0000053322 Discounted Participant Payback (years) N/A ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 7 of 12 8 Table 5: Low Income Weatherization with Reduced Data Request Costs All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.1078 $216,666 $207,273 ($9,393) 0.957 Total Resource Cost Test (TRC) No Adder 0.1078 $216,666 $188,430 ($28,236) 0.870 Utility Cost Test (UCT) 0.1078 $216,666 $188,430 ($28,236) 0.870 Rate Impact Test (RIM) $401,855 $188,430 ($213,425) 0.469 Participant Cost Test (PCT) $0 $185,189 $185,189 N/A Lifecycle Revenue Impacts ($/kWh) $0.0000045418 Discounted Participant Payback (years) N/A ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 8 of 12 9 Energy FinAnswer – Schedule 125 The tables below present the cost-effectiveness findings of the Idaho Energy FinAnswer program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 69% east system load factor decrement. Table 1: Energy FinAnswer Annual Program Costs Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $0 $10,531 $5,057 $1,547 $1,167 $18,303 $3,688 Industrial $0 $67,564 $22,954 $3,781 $41,765 $136,064 $82,447 Total $0 $78,095 $28,012 $5,328 $42,932 $154,367 $86,135 Table 2: Energy FinAnswer Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 9,727 91% 8,852 75% 6,639 15 Industrial 478,200 91% 435,162 75% 326,372 15 Total 487,927 91% 444,014 75% 333,010 Table 3: IRP 69% Load Factor Decrement All Measures AC: IRP 69% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0563 $197,570 $327,460 $129,891 1.657 Total Resource Cost Test (TRC) No Adder 0.0563 $197,570 $297,691 $100,122 1.507 Utility Cost Test (UCT) 0.0440 $154,367 $297,691 $143,324 1.928 Rate Impact Test (RIM) $347,371 $297,691 ($49,679) 0.857 Participant Cost Test (PCT) $114,846 $300,270 $185,424 2.615 Lifecycle Revenue Impacts ($/kWh) $0.0000013874 Discounted Participant Payback (years) 3.17 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 9 of 12 10 FinAnswer Express – Schedule 115 The tables below present the cost-effectiveness findings of the Idaho FinAnswer Express program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 69% east system load factor decrement. Table 1a: FinAnswer Express Annual Program Costs – RIM and UCT Perspectives Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $182 $67,063 $44,644 $166,233 $354,692 $632,813 $1,311,514 Industrial $1,298 $4,051 $8,165 $52,362 $2,034 $67,910 $5,820 Total $1,480 $71,113 $52,809 $218,595 $356,726 $700,723 $1,317,334 Table 1b: FinAnswer Express Annual Program Costs – PTRC, TRC, and PCT Perspectives Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $182 $67,063 $34,153 $127,168 $278,438 $507,003 $638,226 Industrial $1,298 $4,051 $8,165 $52,362 $2,034 $67,910 $5,820 Total $1,480 $71,113 $42,318 $179,530 $280,472 $574,913 $644,046 Table 2a: FinAnswer Express Savings by Measure Type – RIM and UCT Perspectives Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 2,219,662 96% 2,130,876 76% 1,619,465 12 Industrial 14,311 96% 13,739 76% 10,441 12 Total 2,233,973 2,144,614 1,629,907 Table 2b: FinAnswer Express Savings by Measure Type – PTRC, TRC, and PCT Perspectives Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 1,695,962 96% 1,628,124 76% 1,237,374 12 Industrial 14,311 96% 13,739 76% 10,441 12 Total 1,710,273 1,641,862 1,247,815 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 10 of 12 11 Table 3: IRP 69% Load Factor Decrement All Measures AC: IRP 69% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0816 $938,487 $1,102,393 $163,906 1.175 Total Resource Cost Test (TRC) No Adder 0.0816 $938,487 $1,002,175 $63,688 1.068 Utility Cost Test (UCT) 0.0466 $700,723 $1,309,218 $608,495 1.868 Rate Impact Test (RIM) $1,788,881 $1,309,218 ($479,664) 0.732 Participant Cost Test (PCT) $847,429 $1,376,046 $528,617 1.624 Lifecycle Revenue Impacts ($/kWh) $0.0000155022 Discounted Participant Payback (years) 5.30 Cost Effectiveness Inputs at the Measure Level Rocky Mountain Power and Idaho Office of Energy Resources (OER) has an Energy Efficiency Incentive Agreement in place for completion of public school projects. The Agreement provides for a cooperative relationship to maximize the use of federal funding to promote and execute additional cost effective energy efficiency measures in public schools within the Company’s territory. Because the participant costs reflected total project costs which included non incentivized measures from the Company. All associated costs and energy savings from the school programs were removed from cost effectiveness tests for PTRC, TRC and PCT perspectives ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 11 of 12 12 Agricultural Energy Services (Irrigation Energy Savers) – Schedule 155 The tables below present the cost-effectiveness findings of the Idaho Agriculture program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 medium IRP 20% east system commercial cooling load factor decrement. Table 1: Agriculture Annual Program Costs Marketing and Program Development Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Equipment Exchange & Pivot/Linear Upgrade $1,753 $16,104 $172,796 $667 $143,198 $334,518 $207,940 System Design $685 $6,294 $67,531 $261 $81,692 $156,462 $207,632 Total $2,438 $22,398 $240,326 $928 $224,890 $490,980 $415,572 Table 2: Agriculture Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Equipment Exchange & Pivot/Linear Upgrade 1,697,132 100% 1,697,132 74% 1,247,392 5.00 System Design 663,259 100% 663,259 74% 487,495 7.00 Total 2,360,391 2,360,391 1,734,888 Table 3: IRP 20% Commercial Cooling Load Factor Decrement All Measures AC: IRP 20% Commercial Cooling Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0757 $681,662 $941,267 $259,605 1.381 Total Resource Cost Test (TRC) No Adder 0.0757 $681,662 $855,697 $174,035 1.255 Utility Cost Test (UCT) 0.0545 $490,980 $855,697 $364,718 1.743 Rate Impact Test (RIM) $951,431 $855,697 ($95,734) 0.899 Participant Cost Test (PCT) $565,404 $851,354 $285,950 1.506 Lifecycle Revenue Impacts ($/kWh) $0.0000046450 Discounted Participant Payback (years) 2.82 ID PAC-E-14-07 IPUC 2 Attachment IPUC 2-2 12 of 12