HomeMy WebLinkAbout20201007INT to Staff 1-14.pdfRECEIVED
2020 October 07 PM10:36
IDAHOPABLIC
UTILITIES COMMISSIONPreston N. Carter, ISB No. 8462
Givens Pursley LLP
601 W. Bannock St.
Boise,Idaho 83702
Telephone: (208) 388-1200
Facsimile: (208) 388-1300
prestoncarter@ givenspursley.com
Attomeys for Intermountain Gas Company
BEFORE TIIE IDAHO PUBLIC UTILITIES COMIVIISSION
IN THE MATTER OF INTERMOUNTAIN
GAS COMPANY'S APPLICATION FOR A
DETERMINATION OF 2019 ENERGY
EFFICIENCY EXPENSES AS PRUDENTLY
INCURRED
CASE NO.INT.GAO.O6
RESPONSE OF INTERMOUNTAIN
GAS COMPANY TO FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF
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lntermountain Gas Company, in response to the First Production Request of the Idaho
Public Utilities Commission Staff to Intermountain Gas Company dated September 16, 2020,
submits the information below. Confidential information is noted in the responses. The requested
confidential documents will be provided via the Company's Sharepoint site under the terms of the
Protective Agreement.
REQUEST NO. l: Please explain how and when the Evaluation, Measurement, and
Verification (EM&V) study results will be used to evaluate the Fumace and Whole Home
programs. ,See Application at 10. If modifications to these programs are required, please explain
how and when the Company intends to implement them.
RESPONSE TO REQTIEST NO. l:
The impact evaluation of the Fumace and Whole Home measures has been completed by
ADM Associates, Inc (ADM). Based on the recommendations of the evaluation, modifications
will be required for both measures. For the furnace rebate, recommendations focused on
expanding data collection points regarding the efficiency of the furnace equipment being
replaced, as well as adding categories such as replace on burnout, early retirement, and new
construction to the rebate application to provide a more complete estimation of therm savings.
RpspoNse oF INTERMOUNTAIN GES COUPEUY TO FIRST
PRooucuoN Rreupsr oF THE CovrutssloN Srepr - Pecp 1
The Company is currently working with ADM and the Energy Efficiency Stakeholder
Committee (EESC) to modi$ the Whole Home rebate.
The Company plans to complete its follow-up work with ADM and present a revised
Whole Home rebate to the EESC based on feedback from the first meeting on this topic. After
the Company incorporates further feedback, it will file the EM&V study as well as proposed
revisions to the Residential program as an amendment to the application in this case.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer:Kathv Wold-208-377-6t28
Location:555 S Cole Rd tD 83707
RsspoNsp oF INTERMoT]NTAIN Ges Covpewy To FIRST
PRopucuoN Rseuesr oF THE CouurssroN Srarp - Pecp 2
REQUEST NO. 2: Please provide an explanation for using a fmRS Score of 75 as the
threshold for Whole Home rebate qualification given that the largest number of homes which
participated in the program achieved a HERS Score of 63. ,See Annual Report, Figure 3.
RESPONSE TO REQUEST NO.2:
The RESNET reference home is a home built to 2006 Residential lnternational Energy
Conservation Code (IECC) and is represented by a HERS score of 100. Every point below 100
corresponds to lolo improvement in energy efficiency from the reference home. For example, a
HERS score of 75 is25Yo more energy efficient than a 2006 code-built home.
On January l,20ll ldaho adopted the 2009IECC with no amendments. [n January 2015,
instead of adopting the next level of energy code progression by adopting the 2012 IECC without
amendments, the State instead adopted the2012IECC with significant amendments, bringing the
effective results back to 2009 IECC code level. Accordingly, Idaho has been operating under
2009 energy code levels since 201I and this code will remain in effect until an amended 2018
IECC takes effect inlanuary 2021.
The Pacific Northwest National Laboratory @I.INL) determined that code progression
from IECC 2006 to IECC 2009 increased energy savings by approximately l5Yo. Since the
HERS reference home is based on 2006 IECC, and Idaho code is based on the 2009 IECC, the
estimated 25Yo of energy savings of HERS 75 can be athibuted in the following ways: l5oh of
energy savings are due to code improvements and l0olo of energy savings are affributed to
requirements necessary to achieve a 75 HERS score. Taking into consideration the reference
home used by HERS and the actual building code adopted by Idaho, the HERS 75 threshold
incentivized residential new construction at a minimum of 10Yo more energy efficient than code
when Intermountain's EE Program was established.
Idaho has consistently amended the IECC energy code to be less efficient. The
amendments occur for several reasons including cost-effectiveness, accommodating the learning
curve associated with incorporating more energy efficient practices, testing and enforcement
requirements, and limited access to certified home energy raters to conduct energy performance
testing. The HERS 75, estimated to equate to l0%o above code, was a modest beginning target for
energy efficient building. As EE Program history now demonstrates, builders already on an
energy efficient building path will find this target more achievable. On the other hand, builders
just beginning energy efficient building will find it to be a stretch target.
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As the RESNET data shows, HERS scored homes are a small percentage of the new
construction market, which represents an important area of growth for energy efficiency
programs. It is difficult to improve energy efficiency if it is not being measured. The data also
shows that in the lntermountain service territory, the percentage of HERS rated new construction
has increased since the inception of the EE Program. Looking at Intermountain specific data, the
percentage of new construction residential homes that received a HERS rating and qualified for
an Intermountain Whole Home rebate increased fuom7Yo in 2018 to l2Yoin2019.
Intermountain's EE Program has helped to increase the percentage of its new customers whose
homes receive a HERS rating and qualified for the program.
Overall, as a state, since 2016, the market share of new homes obtaining a HERS score
has consistently been below 20%o. According to RESNET, the number of HERS rated homes in
Idahoasapercentofnewhomestartshasbeen 1106,llYoandl4Yoin20l7,2018and20l9
respectively. The average [daho HERS score for the same time frame was 63, 61, and 59.
Improved scores and growth in the number of homes rated, both occurred during the time of the
EE Program, while Idaho energy code remained unchanged.
The important first step in energy efficiency is providing a benchmark that can be
improved upon. The real work is not in improving the HERS scores of the homes being rated,
but to get a larger percentage of the market to be rated in the first place. Setting the HERS score
at an achievable level initially encouraged more builders to begin having their homes rated.
There is much work left to do in this area, but the Company believes its Energy Efficiency
Program has been an important partner in moving the market share statistics in the right
direction.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer: KathyWold. 208-377-6128
Location: 555 S Cole Rd. Boise.ID 83707
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REQUEST NO.3: Regarding Figure 3 of the Annual Report, please provide a
representative HERS score of Intermountain Gas customers homes constructed within the last
three years and not in the Whole Home program.
RESPONSE TO REQUEST NO.3:
In using RESNET's Home Energy Rating System, or HERS, to measure energy efficient
home building in Idaho, it is important to keep several factors in mind:
o Residential home builders are not required to obtain a HERS rating for their homes. They
voluntarily contract an independent 3'd party certified home rater to veriff and quanti$
the energy efficiency of the home. For this reason, there are essentially two "non-
participant" categories when comparing Intermountain EE Program participant homes
and non-participant homes. One category of non-participant is a home that did not receive
a HERS score at all, and thus was not eligible for an Intermountain rebate. The other
category of non-participant is a home that did receive a HERS score but did not apply for
an Intermountain rebate.
o A HERS score is a way to compare one home against another based on energy
performance. The lower the HERS score the more energy efficient the home. Comparing
HERS scored homes that participated in the EE Program against HERS scored homes
that did not participate in the EE Program does not accurately reflect the state of energy
efficient home building in Idaho because obtaining a HERS score is not mandatory.A
builder who has produced an energy efficient home that is likely to score well, is more
likely to obtain a HERS score than a builder who is not building above code homes.
o While the total number of HERS scored homes as a percent of new homes built in Idaho
is growing, it is still a small share of the total number of new homes built. The table
below provides data from RESNET and shows the percentage of new homes that were
HERS rated out of the total Idaho housing starts.
RpspoNse oF INTERMoITNTAIN Gas CotupeNY To FIRST
PROOUCTTON RpQtmSr OF THE COtvttvtISSION Srarr - PaCp 5
20t7 tlo/o
Lto/o2018
t4%20L9
a It is also important to note that the Company is seeing the same thing when looking at its
new construction customer additions. Of the new homes added to the system, only a
small percentage are actually HERS scored. There is much work still to do to encourage
all builders to have their homes scored so customers are able to make an informed buying
decision when it comes to the long-term operating costs and energy efficiency of their
new home.
Year
IGC HERS scored
EE Program
Homes
IGC new
construction
customer additions
IGC IIERS Scored
EE Program
Homes as a
Percentage of New
Construction
2017 0 7,307 o%
201.8 5L9 9,305 7%
2019 L,O79 9,376 12%
Because Intermountain does not collect HERS data on homes not included in the EE
Program, the data requested in this response is not readily available. The Company has submitted
a data request to RESNET asking for data specific to Idaho and is awaiting more information.
Record I.ori Blattner 208-177-601 5
Sponsor/Preparer:Kathv Wold.208-377-6128
Location: 555 S Cole Rd. Boise, lD 83707
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REQUEST NO. 4: On page 19 of the Annual Report, the Company explains thata
HERS score threshold set too low can prohibit participation. Please provide the HERS score and
supporting data that depicts the point where participation is affected.
RESPONSE TO REQUEST NO.4:
The Company is currently working with ADM and the EESC to revise the Whole Home
rebate, taking into consideration input and feedback from the EESC, current building practices,
potential market barriers and cost effectiveness. Following the completion of that process
Intermountain will file a revised Residential program that will address the FIERS score.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/?reparer: KathyWold. 208-377-6128
Location: 555 S Cole Rd. Boise. lD 83707
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REQUEST NO. 5: On page 16 of the Annual Report, the Company shows that the
Whole Home program is not cost effective using the UCT or TRC. Please explain what actions
the Company is taking to achieve cost effectiveness for this program and when it is expected to
occur.
RESPONSE TO REQUEST NO.5:
The Company is currently working with ADM and the EESC to revise the Whole Home
rebate, taking into consideration input and feedback from the EESC, current building practices,
potential market barriers and cost effectiveness. Following the completion of that process
Intermountain will file a revised Residential program that will address the cost effectiveness
issues.
Record Lori B )0*,-777-6015
Sponsor/Preparer: KathyWold. 208-377-6128
Location: 555 S Cole Rd, Boise. lD 83707
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REQUEST NO.6: Please furnish the following information regarding the Company's
vendor selection for the EM&V study:
a. Provide the criteria used to evaluate EM&V vendors, including all requests for quotes,
proposals, or other similar documents;
b. Provide the names of all vendors that provided quotes or proposals. Please include quoted
costs for each vendor;
c. Provide copies of all documents and financial records related to final vendor selection.
Please include meeting minutes, memos, and other applicable correspondence and
documentation; and
d. Provide a copy of all agreements or contracts entered into with the selected vendor
(ADM).
RESPONSE TO REQUEST NO.6:
a. Please see file PR#l_6_EMV Requestfor Proposal. Additionally, please see file
CONFIDENTUL PR#l_6_EM&V Yendor Quotes Sueen Criteria for the names of all
vendors that provided proposals, quotes by vendor, and criteria used to evaluate EM&V
vendors.
b. Please see file CONFIDENTUL PR#l _6_EM&V Vendor Quotes Screen Criteria for
names of all vendors that provided proposals, quoted costs by vendor, and criteria used to
evaluate EM&V vendors.
c. Please see the following files for the requested information:
i. CONFIDENTAL PR#I _6_ADM Associates Proposol for EMV of Intermountqin
Gas Company Programs 2_14_20
ii. CONFIDENTUL PR#l_6_ADMAssociotes Proposal IGC Impact and Process
Ev al uat io n - Re s ub m itt al w ith C I ar ifi c at i o n s 2 _2 8 _2 0 2 0
iii. CONFIDENTUL PR#l_6_ADM Associates Proposalfor EMV of IGC Programs
(Resubmittal with Clarifications) 2_28_20. Both a clean version and a redline
version with changes have been provided.
iv. CONFIDENTUL PR#I_6 REJntermountain Gas EE 3_19_2020 and
CONFIDENTUL PR#l_6:ADM Associates Scope of Workfor EMV of
Intermountain Gas C ompany 3 _6 _2 0 2 0.
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v CONFIDENTUL PR#l_6_ADM Associates Scope of Workfor EMV of
Intermountain Gas Company Program 3_19_2020. Both a clean version and a
redline version with changes has been provided.
d. Please see file CONFIDENTUL PR#l 6 Consultant Services Agreement IGC and ADM
for the requested information.
Record Holder:Lori Blattner. 208-377-60 I 5
Sponsor/Preparer:Kathv Wold. 208-377-6128
Location: 555 S Cole Rd. Boise. lD 83707
RpspoNsn oF INTERMoUNTAIN Ges CoTTapaNY To FIRST
PRouucuou Rpeupsr oF THE CourratssloN Srapr - PacE 10
REQUEST NO. 7: Please describe all services ADM will provide after it releases its
EM&V study. Please include what services and deliverables will be provided, when they are
expected to be provided, and at what cost.
RESPONSE TO REQTTEST NO.7:
Subsequent to the release of the EM&V study, services and deliverables will be provided
as needed, as requested by the company, as specified here in the Scope of work:
"Regulotory support subsequent to completion of the evaluotion report will be provided
by Adam Thomas, John Vazquez ond Melissa Culberson at the rates listed in Table 3-1."
Please see CONFIDENTIAL PR#1_6_ADM Associates Scope of Workfor EMV of
Intermountain Gas Company Program 3_19_2020 clean,page 3-1, for full details.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer: KathyWold. 208-377-6128
Location:555 S Cole Rd-lD 83707
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PRooucuoNRreussroF THE ComarssroN Srarr-pecs I I
REQUEST NO. 8: Please provide a list of all expenses charged to the energy efficiency
tariff rider during 2019. Please include date, vendor, amount, a brief description of the expense,
and the account to which the charges were booked. Please separate all expenses by program so
that the expenditures provided reconcile with the amounts listed in the Company's Annual
Report. Please also identiff if each expense is an incentive payment, purchased service,
labor/administrative, materials and equipment, or other expense. Please provide the requested
information in Excel format with all formulas intact and enabled.
RESPONSE TO REQUEST NO.8:
Please see file CONFIDENTUL PR#l_8_2019 Expenses for a list of all expenses
charged to the energy efficiency tariff rider during 2019.
Record T.nri B lattner-)0*,-777-601\
Sponsor/Preparer:Kody Thomoson.77-6120
Location:555 S le Rd Boise- TD 83707
RsspoNsp oF INTERMoLTNTAIN Gas CovpaNY To FIRST
PRopucuoN Rreupsr oF THE CovrulssloN Srepr - PIGE 12
REQUEST NO. 9: Please provide copies of all internal audit reports referencing any of
the Company's energy efficiency expenses and processes for 2019 to 2020,to date. If no reports
were issued, please provide the date and scope of the audit and all internal auditor workpapers.
RESPONSE TO REQTTEST NO.9:
No internal audits were conducted on the Company's energy efficiency expenses and
processes for 2019 to 2020, to date.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer:Kodv 208-377-6120
Location 555 S Cole Rd Boi ID 83707
RpspoNss oF INTERMoUNTATN Gas ColceNy ro FrRST
PRooucrroN REeuEsr oF THE CouurssroN Srerr - Pacr 13
REQUEST NO. 10: Please provide a current organizational chart by title and name
showing all MDU, Intermountain Gas, and contract employees who charge time to the energy
efficiency tariff rider. Please include complete job descripions, required qualifications, salary
ranges, bonus opportunities, and total compensation ranges, including benefits, for all employees
identified in this request.
RESPONSE TO REQITEST NO. l0:
Please see file CONFIDENTUL PR#l_L|_Employee Information for the requested
information for employees with time charged to the energy efficiency tariff rider in 2019.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer:Crais Pullev. 208-377-6163
Location: 555 S Cole Rd.rD 83707
RsspoNsp oF INTERMoUNTAIN Gas Coleeuv ro FIRST
PRooucrroN REewsr oF THE Couutsslot t Srerr - Pacp 14
REQUEST NO. ll: Please provide the workpapers used to determine all values in
Tables I through 15 of the Company's Energy Efficiency 2019 Annual Report. Please provide
workpapers in electronic format with links enabled.
RESPONSE TO REQ[TEST NO. 11:
Please see files PR #l _l I _Revenues and Expenses which supports Table I and
PR#l_l I_UCT Workpopers which supports Tables 2 through 15.
In preparing its response to this Request, the Company discovered minor effors reported
in Tables I through 15 of the Annual Report. These errors, which are outlined below, did not
materially affect the reported UCT and TRC values for individual measures and did not change
the overall UCT and TRC values reported for the Energy Efficiency Program as a whole.
o The Estimated Useful Life for the fumace incentive was reported incorrectly for the Pre-
CPA (Conservation Potential Assessment) calculation on page l0 of the Annual Report.
It was reported as 2l years but should have been 18 years (see PR#1_ I I _UCT
Workpapers, Benefit Costs Pre-CPA tab, Column (d), Line l3). This did not change
either the Pre-CPA UCT or TRC reported for the measure or the Program.
o The Estimated Useful Life for the High Efficiency Combi Radiant Heat System incentive
was incorrectly reported for the Post-CPA calculation on page I l. The measure life was
entered as 22 years instead of 2l years (see PR#/_ I I _UCT Workpapers, Benefit Costs
Post-CPA tab, Column (d), Line l2). This did not change the Post-CPA UCT reported for
the measure or the Program.
e The TRC for the High Efficiency Combi Radiant Heat System was incorrectly reported
on page I I . The Pre-CPA TRC was entered as 0.56 instead of 0.84 (see PR#/_ I I _UCT
Workpapers, Benefit Costs Pre-CPA tab, Column (g), Line 30). This did not change the
Pre-CPA TRC reported for the entire Program.
. The Post-CPA TRC calculation was not updated with the avoided costs agreed upon by
the EESC Subcommittee, causing TRC calculations to be off by hundredths of a point
(see the table below and PR#l _1 1_UCT Workpapers, Benefit Costs Post-CPA tab,
Column (g), Lines 29-32,and34). This did not change the Post-CPA TRC reported for
the entire Program.
RSSpoNsp oF INTERMOUNTAIN Ges CoTupaNY To FIRST
PRooucrroN RBetissr oF THE CorrarrarssroN Srepr - PecE 15
correded
posTcpA POSTCPA
POST C?A TRC calculation!
ENERGY STAR Certif ied Home o.52 0.s0
Hish Efficiency Combi Rsdiant Heat svstem 0.19 o.18
Hich Efficiency Natural Gas Furnace 0.35 o.v
Hish Effaciency Natural Gas Fireplace o.47 o.fi
Hi[h Effacien€l, Naturel Gas HotWeter Heater 0.36 0.35
Record Holder: Lori Blattner, 208-377-6015
Sponsor/Preparer:Kathv Wold.208-377-6128
Location: 555 S Cole Rd. Boise. ID 83707
RsspoNse oF INTERMoUNTATN Ges CorrrpeNy ro FrRST
PRopucuou Rreussr oF THE CovtvrssroN Srapn - PacE 16
REQUEST NO. 12: Please explain if and how the Therm savings in Tables 4 through 9,
14, and 15 of the Company's Energy Efficiency 2019 annual report were adjusted for the effects
of weather? Please explain the rationale for including or not including the effects of weather.
RESPONSE TO REQTTEST NO. 12:
The therm savings included in the tables were based on the results of the Company's
CPA. The therm savings estimates included in the CPA were adjusted to reflect the two climate
zones used in the CPA analysis. A detailed description of the way the climate zones were used in
the development of the CPA can be found in PR #1 12 CPA Appendix D.
Record Lori Blattner- 2O8-177-501 5
Sponsor/?reparer:Kathv Wold. 208-377-6128
Location: 555 S Cole Rd. Boise. ID 83707
RsspoNsp oF INTERMoT.TNTATN Ges CorrrpaNy ro FrRST
PRonucuoN Rpeussr oF THE CotrnralsstoN Srerr - PecE 17
REQUEST NO. 13: On page l0 of its Application, the Company states that the results
of its EM&V study are nearly complete. Please provide the EM&V Therm savings for the
Company's 2019 furnace and Whole Home programs.
RESPONSE TO REQTIEST NO. 13:
Intermountain plans to file the full EM&V study as an amendment to this case. The
Company is currently working with ADM and the EESC to develop revisions to its residential
program. Once Intermountain has presented the revised program to the EESC and incorporated
any feedback, the Company will file an amendment to the application in this case which will
include the EM&V study, resulting cost effectiveness analysis, and proposed revisions to the
Company's Residential program.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer:Kathv Wold. 208-377-6128
Location: 555 S Cole Rd. Boise. ID 83707
RsspoNsp oF INTERMoT.INTATN Ges Covrp.quy ro FrRST
PROpUCTTOU RSQUEST OF TlrE COUrvrrSSrON Srarr - PaGE 18
REQUEST NO. 14: Please provide, in electronic format, monthly billed Therms for all
1,079 Whole Home program participants (ENERGY STAR Certified Homes) described on page
18 of the Company's Energy Efficiency 2019 Annual Report. For each participant, please include
the square footage of the home, whether or not the home has a gas water heater, and the date on
which each participant began taking service from the Company.
RESPONSE TO REQIIEST NO. 14:
Please see file CONFIDENTAL PR#l_14 Wole Home Participants forthe requested
information.
Record Holder: Lori Blattner. 208-377-6015
Sponsor/Preparer: LandonBarber. 208-377-6199
Location:555 S Cole Rd.tD 83707
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PRonucrroN Rreuesr oF THE Covrrr,rrssror.r Srapr'- PacE 19
DATED: October 7,2020
GIVENS PURSLEY LLP
,P
Preston N. Carter
Attorneys for Intermountain Gas Company
RpspoNsp oF INTERMoUNTAIN Ges ColapaNY To FIRST
PnopucttoN REeuBsr oF THE ComaIssIotl Srarr-Pacp 20
CERTIFICATE OF SERVICE
I certiff that on October 7 ,2020, a true and correct copy of INTERMOUNTAIN GAS
COMPANY'S RESPONSE TO FIRST PRODUCTION REQI.JEST OF THE COMMISSION
STAFF was served upon all parties of record in this proceeding via electronic mail as indicated
below:
Commission Staff
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
I1331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
Matt Hunter
Deputy Attomey General
Idaho Public Utilities Commission
I l33l W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, lD 83714
Idaho Conservation League
Benjamin J. Otto
Idaho Conservation League
710 N. 6th Sheet
Boise, lD 83702
Via Electronic Mail
j an.noriyuki@puc. idaho. gov
matt.hunter@puc. idaho. gov
botto@idahoconservation.org
doABIrM
Lori A. Blattner
RpspoNsn oF INTERMoUNTATN Gas CornlpeNy ro FrRST
Pnouucttou Rreuesr oF THE Covnr,rrssror.r Srarp - Pecs 2l
z^<>-
tbffifb'.f,
P.O. gox 75@, &i*,lD 8370.1608phore: 8OG'E-3579 . Bds/trcasure Valhy 208-377{840
Emil: eEme,Byeirrt8ar.ffi . w-intgas.cm/3awmr8y
Request for Proposal
Energy Efficiency Impact &
Process Evaluation
lssued:
Responses Due:
Contact:
Email:
January 27,2020
February t4,2020
Kathy Wold, Manager Energy Efficiency
Kathv.wold@ intgas.com
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l. Table of Contents
B. Company Background .........'.......' 3
C. Key Objectives and Deliverables.......... ...'..'.'...3
D.
!!t.
A.
B.
c.
D.
E.
F.
tv.
A.
B.
Scope of Work 4
PROCESS INFORMATION 6
No Contract Formation
RFP Evaluation Team
RFP Evaluation Criteria.. ...............8
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ll. lntroduction
A. Project
lntermountain Gas Company ("!GC") is seeking proposals from qualified organizations or individuals
("Respondent'') interested in providing process evaluation of the program and impact evaluations of two
specific IGC residential energy efficiency measures. lmpact evaluations would provide analysis of energy
savings, by measure, forthe program years January 2018 through December 2019 forthe energy
efficiency program. While the process evaluation and impact evaluation are to be conducted together,
the impact evaluations are the higher priority with an earlier results deadline than the process
evaluation.
IGC Energy Efficiency Program
lntermountain Gas was granted authority by the ldaho Public Utilities Commission to implement an
energy efficiency program effective October t,2OL7. The residential energy efficiency program was
designed to acquire cost-effective demand side management (DSM) resources in the form of naturalgas
therm savings. The initial program includes rebates for residential customers that purchase and install
qualifying high-efficiency natural gas equipment. There is also a new construction rebate for homes that
are ENERGY STAR certified with a HERS score of 75 or less.
IGC commissioned their first Conservation PotentialAssessment in 2018 to support both short-term
energy efficiency planning and long-term resource planning activities. Three levels of savings potential
were assessed: technical, economic and achievable.
Whole Home Rebate
The Whole Home rebate provides an incentive to residential customers in IGC service territory for the
construction of single-family homes incorporating energy efficient design. lnitiated in October of 2OL7 at
the launch of the energy efficiency program, the objective of the measure is to acquire energy savings
by encouraging customers to build homes incorporating energy efficient design well above most homes
on the market today.
To qualify for the Whole Home rebate, a participant must use natural gas for both space and water
heating and be served on the residential rate. The home must be ENERGY STAR certified with a HERS
score of 75 or less. The Whole Home rebate offering cannot be combined with any appliance offering.
Home certification is determined by meeting program requirements of the Environmental Protection
Agency (EPA) ENERGY STAR certified homes program and home energy scores determined by the
RESNET Home Energy Rating System (HERS). Both requirements must be verified by independent 3'd
party inspections and testing from certified professionals. Support documentation including credentials
of the independent, third-party inspector and completed ENERGY STAR certification and HERS certificate
are required for the Whole Home rebate.
95% AFUE Natural Gas Furnace
The 95% AFUE naturalgas furnace rebate provides an incentive to residential customers in IGC service
territory for the installation of a high-efficient natural gas furnace in single family home using natural gas
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nO. Box 7608, Boise, lD 83707.1608
Phori 800-548-3679 . Boisefreaiurc valky 208-377-6840
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exclusively for space heating. Participants must be served on the residential rate. The previous furnace
rebate requiring conversion to natural gas from an alternate fuel, was retired at the launch of this
rebate offering. The objective of the measure is to acquire energy savings by encouraging customers to
choose energy efficient options for space heating.
To qualify for the high-efficient natura! gas furnace rebate, a participant must use natural gas exclusively
for space heating and be served on the residential rate. The furnace must meet a minimum efficiency of
95% AFUE or higher. New construction, replacement on burnout, conversion and early retirement are all
etigible for the rebate. The natural gas furnace rebate cannot be combined with the Whole Home
rebate.
IGC requires allequipment must be installed according to current code and approved by local or state
inspection with the signed, approved permit. All equipment must be installed, and work completed, by a
licensed and bonded contractor. The company does allow self-installations with additional supporting
documentation: copy of the purchase receipt of the equipment and a picture of the equipment sticker
displaying the brand, mode! number and serial number.
For more information regarding these offerings, please refer to the 2018 Annual Report, found at the
following link: https://www.intsas.com/energv-efficiencv/2018-enersv-efficiencv-annual-report/
B. Company Background
IGC is the sole distributor of natural gas in Southern ldaho. lts service area extends across the entire
breadth of Southern ldaho, an area of 50,000 square miles, with a population of approximately
1,344,000. At the end of 2018, IGC served 364,5L2 customers in 75 communities through a system of
over 12,8(X) miles of transmission, distribution, and service lines.
C. Key Objectives and Deliverables
The key objectives of the impact evaluation include:
o Estimate energy savings by comparing energy consumption of participants to the consumption
that would have occurred without the incentive for the timeframe January 2018 through
December 2019, and corrected for weather:
o For the Whole Home incentive evaluation will compare billed consumption of program
participants to the consumption of similar new home non-participants' F'r
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the measure.o Provide credible and reliable program measure ex-post realization rates attributed to the Whole
Home rebate measure and the 95% AFUE naturalgas furnace measure.
o Report findings and observations offuture ex-ante savings analysis and the accurate and
transparent reporting of program savings.
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The key objectives of the process evaluation shall include, but no be limited too Evaluation of the following
o Process for assessing programs, evaluating program savings, and determining incentive
levels,
o program implementation and participant response,
o Level of customer satisfaction with the program,
o Effectiveness of program delivery mechanisms,
o Effectiveness of program marketing
o Barriers to program participation
D. Scope of Work
IGC anticipates the selected Respondent will be required to undertake the following tasks in addressing
the key objectives and deliverables. Proposals should address these tasks in detail:
1. Scope ol Work Meeting.The Respondent will meet with IGC staff within two weeks of contract
signing and present proposed evaluation methodologies, data collection plan, analysis, report
preparation and delivery and any other tasks Respondent and IGC feel pertinent to the
evaluation. A final Statement of Work wil! be developed based on outcomes from this meeting.
This Statement of Work will become part of the contract and will become the basis for this
evaluation.
2. Work Plon. The Respondent will develop a detailed work plan based on the Statement of Work
that details how the Key Objectives and Deliverables will be addressed.
3. Site Visits ond Porticipont lnteruiews. Where appropriate, the Respondent will verify
installation of energy efficienry measures and associated energy impacts, by conducting site
visits to program participant locations. Respondent should recommend and propose the
appropriate number of site visits based on their experience and expertise with similar
evaluations.
It is necessary that the Respondent coordinate efforts with lGC regarding customer contact and
conduct research in such a manner as to minimize the time impact on IGC customers
participating in this evaluation. lnformation provided by program participants will be considered
confidential in terms of attribution and shall not be share with any other party.
4. lmpad Anolysis. The Respondent will analyze the data collected from previous tasks to develop
estimates of energy impacts at the measure level. The Respondent will provide these estimates
by comparing deemed values to the source, data collected from site visits, desk reviews,
customer interviews and "best practice" engineering methods. The Respondent will provide an
estimation of realization rates to assist in determining ex-ante gross energy savings.
Data collected by IGC and to be made available to Respondent for analysis, includes billed
consumption, brand, model and efficiency levels of all furnaces rebated under the 95% AFUE
furnace rebate. For the Whole Home rebate, available data includes billed consumption,
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ENERGY STAR certified home certificates and HERS score certificates provided by certified home
raters, which provide specific information about the home such as square footage, appliances
and estimated energy savings.
5. tnterim Reporting. The Respondent will be required to provide to lGC monthly status reports
detailing progress toward completion and any obstacles encountered. These status reports will
be due by the 15th of each month and will include an updated schedule of future activities.
6. Draft ond Finol Report. The Respondent will be required to provide to IGC bi-weekly status
reports detailing progress toward completion and any obstacles encountered. These status
reports will be due by the 1't and 15th of each month and will include an updated schedule of
future activities.
The Respondent will provide a draft final report to lntermountain upon completion of alltasks.
This draft will be reviewed by lntermountain and comments will be provided to the Respondent
for clarification as necessary. The Respondent will provide to lntermountain the finalversion of
the report. Graphs and/or tables are recommended for information not easily conveyed in
narrative form. The draft and final report is required to contain, at a minimum, sections
containing; an executive summary, evaluation methodologies and findings and conclusions. The
Respondent will document methods and preserve workpapers to be evaluated by the public
utilities commissions and interested parties.
7. Prcsentotion ol Results. The Respondent will be required to present the results of this analysis
to interested parties at an IGC Energy Efficiency Advisory Group meeting to be held in Boise,
ldaho.
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Emil: sEener8y@intgas.com . ww.intSa!.cm/sEErty
III. PROCESS INFORMATION
A. Schedule
The project schedule will be determined by the selected Respondent with the following key milestones
included: Draft report of impact evaluation provided to IGC bV 5ltll2020. lmpact Evaluation final
report provided to IGC bV O6lt5l2020. Process Evaluation final report provided to tGC bVt1612020.
Date Event
B.
02/05/2020 Intent to Bid submission due
O2/O7l2O2O Last day for Respondents to submit questions
OZll4l2O2O RFP Proposals Due by 5:00 p.m. MDT
O2/2L/2020 Complete review and evaluation of proposals
02/24-2812020 Begin Finalist interviews
3lO5/2O20 Kick-off meeting
O5/LU2O2O lmpact Evaluation Draft Report Due
O6/LS/2020 Fina! report due - lmpact Evaluation
07lO5l2O2O Final report due - Process Evaluation
Contact lnformation
lf you have any questions regarding this invitation to bid process, please contact Kathy Wold at208-377-
6128. Your proposal may be submitted via email, mail, or FedEx and must be received by COB
o2lt4l2O2O.
Address for mailed or FedEx responses:
lntermountain Gas Company
Attn: Kathy Wold
P.O. Box 7608
555 South Cole Road
Boise,lD 83707
Email address: Kathv.Wold@ inteas.com
This invitation to submit a formal proposal expires at the close of business February L4,2020. Thank you
in advance for the time and effort put forth in preparing your proposal and your prompt response to our
inquiry.
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C. lntent to Bid
All "lntent to Bid" forms (see Appendix A) must be received no later than the COB O2lOSl2O20
D. Proposal Content
Respondents submitting a proposal shall use the following outline and criteria:
1. A description of the firm's qualifications to conduct lGCs energy efficiency impact evaluation.
The preferred bidder will have experience working with naturalgas utilities, as well as a strong
understanding of engineering, market, and building science principles as applied to demand side
management planning.
2. A technical proposal not to exceed 15 pages.
3. A management plan and proposed schedule of deliverables including a kickoff meeting
scheduled within two weeks of contract signing.
4. Response to each item listed in Section ll.C., Key Objectives and Deliverables and Section ll.D.,
Scope of Work.
5. A detailed budget broken out by task, number of hours, and by individual performing the work.
Key individuals should be identified by name along with billing rates for each individual. Budget
should also include any additional ancillary services provided such as site visits. Budget should
include time and materials on a not to exceed basis. Budget should include a rate schedule for
support after submission of the final report to respond to any questions about the evaluation
from the public utilities commission or other interested parties.
5. Resumes of key staff and subcontractor qualifications.
7. Three references from previous energy efficiency impact evaluation clients.
8. Example of previous energy efficiency impact evaluation reports.
E. Proprietary lnformation - Confidentiality
Respondent agrees that all information obtained or produced in relation to this RFP is the sole property
of lntermountain Gas Company and shall not be released or disclosed to any person or entity for any
purpose nor used for any purpose other than providing a proposal to lGC, without the express written
consent of lGC.
Respondent agrees not to make any public comments or disclosures, including statements made for
advertising purposes, regarding the Request for Proposals to the media or any other party without the
prior written consent of lGC. ln the event the Respondent receives any inquiries regarding the RFP from
the media or any other party, said inquiries shall be fonvarded to lGC.
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Respondent shall specifically designate and clearly label as "Confidential" any and all material(s) or
portions of their response that they deem to contain proprietary information.
F. No Contract Formation
This request does not constitute a contract or an offer or acceptance of an offer to enter into a contract.
Further, this correspondence may not be used to modify, supplement, novate, or waive any rights with
respect to an existing contract or other binding terms.
IV. RFP EVALUATION PROCESS
A. RFP Evaluation Team
An IGC evaluation team will determine the proposal that best meets the requirements of this RFP and
provides the best overallvalue for lGC. Proposals wil! be evaluated in accordance with the requirements
set forth in this RFP, any addenda that are issued, and any other factor tGC deems appropriate. Based
upon the RFP response evaluation and scoring, references and any subsequent activities identified
during the evaluation process (clarifications, answers to questions, etc. that may be required), IGC may
identify the top candidate(s) for further clarifications and/or a Respondent presentation.
Those Respondents whose proposals have not been selected will be notified via an email or a written
letter at the address provided in their proposal.
B. RFP Evaluation Criteria
At a minimum, proposals will be evaluated based on the response to this RFP, which may include, but
not be limited to the following criteria:
. Ability to meet RFP requirements.
o Financial stability of the company.
o Total project cost.
. Reputation for thoroughness, credibility, and client responsiveness as demonstrated through
references.
o Technical approach and demonstrated understanding of the issues surrounding the
administration and evaluation of naturalgas utility energy efficiency measure impact evaluation.o Experience and qualifications of proposed staff and management team. No changes in key
personnel should be made without written agreement from lGC.
o The experience of the firm, with interest in evaluation of, and experience with, natural gas utility
energy efficiency im pact evaluations.
o The merits of the proposed evaluation methodologies.
o Responses to each item in Sections ll.C (Key Objectives and Deliverables) and ll.D. (Scope of
Work).
o Proposed itemized budget. The proposal should be bid on a time and materials, not to exceed
basis.
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a Any other factors deemed appropriate by lGC.
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APPENDIX D. CLIMATE ZONE MAP
Legend
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Idaho Mmls. Tolt,rvctySen€dbyIGC
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IntsrflElrElln B Cofipaty
Service Area by Climate Zone
The IGC Potential Modelwilltakes into considerations the two climate zones where lGCs customers are located.
Specifically, the customer database was segmented into the respective climate zones, based on the following
climate zone map.
35 : IGC Service and Climate
For weather-dependent measures (heating system upgrades, insulations, etc.), each measure is distinctly
included in the model to capture different saving levels for participants in each climate zone. Several of our
measure characterizations are algorithm based, and explicitly take into considerations the heating degree days
(HDD) to calculate savings; these measures will use the relevant HDDs for each zone, as presented in Table 20
below. Cooling Degree Days were also used for measures with secondary cooling impacts.
D-1
L,4L6Boise (Zone 5)5,561
799ldaho Falls (Zone 5)7,737
HDDs CDDsZone
Table 20: Average HDD and CDD per Climate Zone l2OLl-2OL7l
For other climate dependent measures not explicitly using HDDs as part of their algorithm to calculate savings,
state-wide averages were corrected based on the ratio of HDD in the target zone to the statewide average.
D-2