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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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