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HomeMy WebLinkAbout20210113INT to Staff 15-27.pdfPreston N. Carter, ISB No. 8462 Givens Pursley LLP 601 W. Bannock St. Boise,Idaho 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-l 300 orestoncarter@ gi venspursley.com Attorneys for Intermountain Gas Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION ! -'."f-i-r!:-t::\'':.- -i;j r'*l-J , r' !.ij t .-\ Di:! /}, nl.i,',1.i..r;.li ILJ III J.J*t , i . " l;:l:,:t::""' " t - -r"t'::j' 1. ,li-'. , ,,l$"jl$Fi IN TIIE MATTER OF INTERMOUNTAIN GAS COMPANY'S APPLICATION FOR A DETERMINATION OF 2019 ENERGY EFFICIENCY EXPENSES AS PRUDENTLY INCURRED CASE NO.INT-G.20-06 RESPONSE OF INTERMOUNTAIN GAS COMPAI\Y TO SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF ) ) ) ) ) ) ) lntermountain Gas Company, in response to the Second Production Request of the Idaho Public Utilities Commission Staff to Intermountain Gas Company dated December 23,2020, 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. 15: Please provide all information collected by the Company that demonstrates home builders and Home Energy Rating System ("HERS") raters will participate in the revised Whole Home program. Please explain how the Company will measure the impact of the revised program on home builders and HERS raters. RESPONSE TO REQUEST NO. 15: Meeting notes from the EESC meetings provide the best indication that home builders and HERS raters will participate in the revised Whole Home program (see Exhibit No. 4 Energy Efficiency Stakeholder Committee Meeting Minutes). The Company proposed an initial revision of the Whole Home rebate at the September 16, 2020 meeting. The revision proposed at this meeting removed the ENERGY STAR certification requirement, reduced the rebate amount to $650 and required a maximum HERS score of 60 (15 points more efficient than the current program) with specific energy efficiency targets for air change per hour, duct leakage allowances RsspoNsp oF INTERMoL]NTAIN Gas Covrpewv ro SECoND PnopucuoN Rreussr oF TTrE CoprulsstoN Srerr - Pecs I and minimum furnace efficiencies. EESC members expressed concern that builders would drop out ofthe program due to the reduced incentive and aggressive energy efficiency targets. Home raters and energy code specialists both expressed concern the duct leakage target alone would be unattainable. One home energy rater estimated that of the 5 builders currently participating in his region, only I would "probably continue," while the other four would see it as o'not worth the time." Several participants suggested the Company explore a tiered rebate structure. Another member recommended the Company allow builders to stack the Whole Home rebate and water heater and thermostat rebates, as this is not currently allowed. The Company took into consideration the concems and suggestions of the EESC, consulted the 2019 Idaho Residential Energy Code Field Study (see Exhibit No. 8), reviewed upcoming changes in the Idaho Energy Code, worked with ADM Associates, Inc (ADM) to identiff rebate requirements that would have the most impact on therm savings (see Exhibit No. 8), and sought additional feedback from the EESC. On October 27, at the second EESC meeting, the Company presented a second draft of revisions to the whole home rebate that incorporated a two-tier rebate structure. The second draft relied heavily on the work done by ADM to identitr rebate requirements that would have the most impact on therm savings and tried to address all of the concerns raised by EESC members. Both rebates incorporate targets for air changes per hour, duct leakage and furnace efficiency. The Tier I rebate of $900 also includes a ceiling insulation requirement. For builders that believe the requirements of Tier t will be too much of a stretch, the Tier II rebate serves as an introduction to energy efficient building with a $700 rebate and slightly lower efficiency targets. This second draft also provided an option for builders to layer on water heating and thermostat rebates. To address an EESC member suggestion that the Company require HVAC systems and air handlers be placed in conditioned space rather than seffing a specific duct leakage target, the Company added HVAC system placement as an alternative to duct leakage targets, to arive at the proposed whole home rebate revision as filed. The Company has worked to provide a forum for input and feedback. Because home energy raters work with a very diverse population of builders and are well-versed in both energy efficiency and "builder speak" they are often in a unique position to be the "the voice of the builder." While raters cannot necessarily predict the actions of builders, experience has shown Idaho energy raters have the pulse of residential home builders and provide valuable, candid RpspoNsp oF INTERMoLTNTATN Ges CoupaNy ro SECoND PRooucrroN Rrqwsr oF THE Corr,rurssroN SrAFF - Pacs 2 feedback. Code experts, like raters, also have a thorough understanding of current building practices, gaps or proficiencies in contractor knowledge, and builder attitudes. Intermountain has excellent representation of raters from across its service territory on the EESC as well as code experts. The Company considered EESC feedback, studied building code and current building practices, and attempted to balance efficiency goals, cost-effectiveness, and real-world circumstances. Intermountain believes it has taken the proper steps to design a rebate that will incentivize builders to pursue energy efficient home building. The most observable way for the Company to measure the impact of the revised program on home builders and home energy raters is by participation levels. The Company will also rely on feedback from builders, contractors and home energy raters to uncover any unforeseen market barriers or challenges to participation under this revised rebate structure. The Company will continue to leverage opportunities to promote the program with builders through the Building Contractor Association and explore partnerships to provide educational opportunities with organizations like the Idaho Code Collaborative, Division of Building Safety, and others integral to the residential building industry. Record Lori Blattner 208-177-601 5 Sponsor/Preparer:Kathv Wold. 208-377-6128 Location: 555 S Cole Rd. Boise.ID 83707 RgspoNsB oF INTERMOUNTAIN GES COUPENY TO SECOND PRopuctroN Rretmsr oF THE CovrulsstoN Srerp - Pace 3 REQUEST NO. 16: Please list all additional requirements beyond the device being a wi-fi enabled smart thermostat to be eligible for the Company's smart thermostat rebate, such as professional installation or technical capabilities. Please explain how the Company will measure savings achieved from the smart thermostat rebate measure. RESPONSE TO REQTTEST NO. 16: In addition to the requirement that smart thermostats be wi-fi enabled, Intermountain will require that the device be ENERGY STAR@ certified. Professional installation in most instances is not necessary unless the device installation is part of a larger overhaul or rehabilitation of an HVAC system. Smart thermostats are commonly included in utility marketplace programs with the intent of customer self-install. Intermountain plans to encourage HVAC contractors to recommend smart thermostats when installing a fumace. The Company believes pairing the two appliances and rebates should help maximize the therm savings from installing a new furnace. For initial cost testing of the smart thermostat rebate, the Company will use the estimated 44 therms of annual savings identified in the Dunsky CPA study. Once Intermountain has enough smart thermostats installed to create a sample with adequate heating season usage, the Company will commission a third-party EM&V study to develop a method for measuring savings related to the smart thermostat rebate. Record Holder:Lori . 208-377-6015 Sponsor/Preparer:Kathv Wold. 208-377-6128 Location: 555 S Cole Rd. Boise. lD 83707 RnspoNsp oF INTERMoUNTATN Ges CoupeNy ro SECoND PRopucrroN REeUEST oF THE Courr,rrssroN Sr,qFr - Pecr 4 REQUEST NO. 17: Please provide the source of the "estimated annual savings of 44 therms" for smart thermostats, as shown on page 2 of Exhibit No. 7. RESPONSE TO REQIIEST NO. 17: Please see CONFIDENTIAL PR#2_17_Dunsky CPA Measure Assumptions for the source of the smart thermostat annual therm savings. Record Holder: Lori Blattner. 208-377-6015 Sponsor/Preparer: KathyWold. 208-377-6128 Location:555 S Cole Rd ise.ID 83707 RpspoNsp oF INTERMoT-INTArN Gas CorrlpeNy ro SECoND PRooucrrou Rpeuesr oF THE CorrnralssloN Srarr - p.c.cE 5 REQUEST NO. 18: According to the Company, energy savings were determined by comparing consumption of modeled User Defined Reference Homes ("UDRH") with modeled consumption for Program Homes. According to the Company (Exhibit No. 5, Page 86), the UDRH reflects the 2}l2lnternational Energy Code with Idaho's Amendments. Average consumption of a UDRH home was 923.90 Therms (ExhibitNo. 5, Table No. 6-3). Please answer the following questions: a. Please provide a list and explain all steps taken by the Company or its evaluator to assure that the consumption of the UDRH home is representative of the energy consumption that would be built absent participation in the Whole Homes Program? b. Please explain and provide supporting documentation showing why average consumption of the UDRH home is so much larger than the 698 Therm average residential consumption determined in the Company's last general rate case (INT-G-l6-02). RESPONSE TO REQITEST NO. 18: a. The UDRH represents the minimum allowable energy efficiency building metrics using the Idaho building code in effect during the program. This method is used to estimate gross savings. The UDRH aligns with the construction practices observed in new construction rebated through Intermountain's program and thus is not representative of building stock as a whole. The UDRH was built to match program-rebated homes in size and configuration, only adjusting parameters that were higher-than-code in the efficient case. Due to the difference in builders in the program versus the non-program builder population, it is not readily apparent that non-program participants are the correct counterfactual for what the specific program builders would have done without the program. Using non-program builders as the counterfactual presumes that because one segment of the home builder market may have advanced the efficiency level of their new construction without the program, therefore all builders must have done so. The UDRH method provides a comparison of homes that meet the Intermountain energy efficiency targets with those same homes built to code. This gross method of calculating therm savings is consistent with the methods employed by other Idaho utilities in measuring energy savings in their new construction programs and helps to ensure Intermountain's program will be able to continue to encourage efficient building among builders that would otherwise lag behind in energy efficient building. RpspoNsp oF INTERMoUNTAIN Ges CoupeNY To SECoND PRoouctIoN Rreussr oF THE CouulssroN SrAFF - Pecp 6 b. The average usage per customer settled upon in Intermountain's last general rate case was based on a whole-territory average. This average includes older single-family homes. While these older homes are generally less efficient per square foot, they may in many instances have lower annual consumption per customer because they are significantly smaller in size than the homes included in Intermountain's Whole Home program. The Idaho statewide average home size is 1,932 square feet based on Census Bureau data. In contrast, the homes included in Intermountain's 2019 Whole Homes program are significantly larger than that at an average 2,388 square feet. The newly constructed energy efficient home provides important energy savings compared to a similar size home that is not built to Intermountain's Whole Home program requirements. However, it is neither fair nor reasonable to compare that energy efficient larger home to the aging housing stock that makes up Intermountain's total customer base. Record Lori Blattner. 2O8-177-60 I 5 SponsoriPreparer:Kathv Wold. 208-377-6128Location: 555 S Cole Rd. Boise. lD 83707 RrspoNsp oF INTERMoT.TNTATN Ges Coupaxy ro SECoND PRooucrroN Rpeussr oF THE Cotr,tutssroN Srarr -Pacp 7 REQUEST NO. 19: Please explain the Company's process for validating the REM/Rate software used to estimate consumption of the UDRH, Energy Star, and Program Homes. Did the Company or its evaluator compare modeled data with billing data? If so, please provide both the modeled data and billing data for each home used in the validation. RESPONSE TO REQUEST NO. 19: REM/Rate is an accredited Home Energy Ratings (HERS) Software that meets the applicable Mortgage Industry National Home Energy Rating System Standards. The UDRH, Energy Star, and Program Home consumption estimates are direct outputs from REM/Rate. ADM did not conduct a per home comparison between simulated consumption and observed consumption. However, ADM compared the average household heating load and base load from the simulated outputs with the average household heating load and base load from the participant billing data. The heating load comparison is provided in CONFIDENTIAL PR#2-19-Heating Load. The REM/Rate outputs for each of the sampled households is provided in CONFIDENTIAL PR#2_19_REMRate Outputs. Of the 80 households sampled, ADM was able to run REMlRate simulations on 68. This was due to unresolvable erors when converting Ekotrope files, provided by the Energy Raters, to REM/Rate files. The billing data for each home used in the validation is provided in CONFIDENTIAL PR#2_19_Billing Data. Of the 80 households sampled, the billing data of 59 homes met the criteria to be included in the analysis conducted by ADM. Record 208-377-601 Sponsor/Preparer: KathyWold. 208-377-6128 Location:555 S Cole Rd.ID 83707 RtspoNsp oF INTERMOUNTAIN GES COUPENY TO SECOND PRooucuoN Rpeuesr oF THE Col,nraIssIoN Srarr - Pacp 8 REQUEST NO.20: Page 86 of ExhibitNo. 5 explains that the evaluators used the simulation model to compare a sample of 80 participating homes with the UDRH. Please answer the following questions: a. For each of the 80 homes, please provide monthly modeled data and monthly billing data. b. Please explain the stratification methodology used to determine the number of homes sampled in each strata. c. Was this a Stratified Random Sample? d. Please provide the number of homes built by each builder and provide the number of homes sampled from each builder. RESPONSE TO REQUEST NO.20: a. The REM/Rate outputs for each of the sampled households are provided in CONFIDENTIAL PR#2-19-REMRate Outputs. The billing data for each home is provided in CONFIDENTIAL PR#2_l g_Billing Data. b. The homes were stratified by program year, then by builder. The number of projects from each builder was calculated by each builder's contribution to the total number of homes. The total sample required was estimated using the following formula: Eguotion A-7 Sample Size Formulo 11.645 *.50r2 "=( .ro J =67.65 Where, 1.645 : Z-score for 90Yo confidence with a two-tailed sample .50 = Coefficient of variation (standard deviation / sample mean) .10 = Required precision (+10%) The Evaluator assumed a Coefficient of Variation of .5 (best practice per the Califomia Standard Practice Manual). c. Yes, ADM created a Stratified Random Sample to verifu the Whole Homes Program households. RespoNsp oF INTERMoUNTATN Ges CorupeNy ro SECoND PnooucrroN Rreussr oF THE CourrassroN Srarp - Pecp 9 d. A summary of the number of homes built by each builder and the number of homes sampled from each builder is provided in CONFIDENTIAL PR#2 2O_Homes by Builder. Record Holder:Lori 208-377-6015 Sponsor/Preparer: KathyWold. 208-377-6128 Location:555 S Cole Rd-se ID *7707 RpspoNss oF INTERMoUNTAIN Gas CotrrpeNy ro SECoND PRopucuoN Rreupsr oF TIIE CouulssloN Srarr - PacE 10 REQUEST NO.21: In Final OrderNo. 34536 (INT-G-19-04), the Commission stated, "The deemed savings value should be based on a comparison of actual billing data from similar new homes constructed which received the rebate and ones that did not receive the rebate." Given the Commission Order, why does the Company believe it continues to be appropriate to evaluate the Whole Homes Program using modeled savings values? RESPONSE TO REQIIEST NO.21: The full text of the relevant section of Commission Order No. 34536 states: "An areo of specific concern is the Whole Home Program. First, the Company's 204 deemed savings value should be reevaluoted as soon os possible. The deemed sovings value should be based on a comparison of actual billing datafrom similar new homes constructed which received the rebate and ones that did not receive the rebate. We feel the Company now has adequate data to accurately update this value. With an updated deemed savings value, the Company should hove sfficient information to update this incentive before the EM&Y study is completed. Second, we are unsure if the HERS threshold of 75 is still a reasonable thresholdfor the Whole Home Program. Arter the EM&V study is completed, we encourage the Company to consider modifuing the HERS threshold of 75 for the Whole Home Program." Order No. 34536 at 5. The Order also states that "within two months of the Order, the Company shall develop a plan to have an EM&V study completed for its EE Program." Order No. 34536 at 6. The Company subsequently filed that Plan on March 20,2020. The Company had already begun the RFP process to select an EM&V vendor prior to receiving the Commission Order. Rather than quickly change the Whole Home program in January of 2020 based on a comparison of actual billing data, and then change the program again based on the outcome of the EM&V study later that same year, the Company proposed in the Plan to have the EM&V completed in the Springof 2020 and then work with the Stakeholder Committee to develop proposed changes to the program to be filed Fall of 2020. In preparing the EM&V study, the evaluator found that in Idaho, impacts for other utility programs are estimated as "gross" rather than "net". "Gross" impacts are defined as the savings value compared to either (l) the preexisting equipment or (2) applicable minimum code. For new construction, (2) is applicable. When incorporating the billing impacts of non-program new RpspoNsp oF [NTERMoLTNTAIN Ges CotupeNy ro SECoND PRooucuoN Rser;Esr oF THE CovrurssroN Srerr-Pacp I I construction as the program baseline, this may elevate the baseline above minimum code if new homes are built above code to a minor degree but below EE Program standards. Conversely,"net" impacts are defined as those which occur from a program that would not have occurred without the program and take into account market impacts from naturally occurring adoption. Inclusion of those parameters in an analysis of Intermountain Whole Homes impacts places an abnormally high standard not applied to other programs or other utilities in Idaho and therefore applies an unfairly punitive yardstick when assessing the success of this program relative to programs administered by other Idaho investor-owned utilities. Traditionally, the Idaho Commission has remained fuel neutral and has not allowed utilities to use energy efficiency programs as a tool to encourage fuel switching. If other Idaho utilities base their Whole Home rebate levels on gross savings, while Intermountain is required to base rebate levels on net savings, the effect will be a much smaller rebate for a gas home that is built to very similar energy efficiency standards as those required for an electric energy effrciency rebate. Therefore, the Company believes it is appropriate to adopt ADM's suggested use of modeled savings, or "gross" impacts. Record T.ori Blatfner 208-777-501 5 SponsorlPreparer Kathv Wold. 208-377-6128 Location: 555 S Cole Rd.rD 83707 RsspoNsp oF INTERMoLNTATN Gas CoupaNy ro SECoND PRorucrroN REqursr oF THE CorrarrnssroN Sr.c,Fp - PecE 12 REQUEST NO.22: In Section 4.4. I of the Impact Evaluation, the evaluators used REM/Rate software to determine the correlation between HERS scores and the relative savings of Whole Homes program rebated households to the UDRH. According to the report, the evaluators "found the savings normalized by square footage remains relatively constant across a 20-point HERS Index range." Given the lack of correlation between this methodology and the HERS Index, why has the Company chosen to use this same methodology to model energy savings? RESPONSE TO REQUEST NO.22: ADM found that the HERS score itself was not correlated to natural gas savings. This is because the HERS index is a composite score that combines gas, electric, and water impacts. However, the simulation output of REM/Rate includes the "Fuel Summary Report" which specifies impacts by fuel type for a given home. ADM found that the key drivers in therm savings were not the HERS score itself, rather it was driven by the choices made by the builder to reach a specified HERS score. This corresponds to ADM's recommendation that Intermountain have specific gas-savings program requirements as part of its Whole Home Program rather than relying solely on a HERS score. Savings were found to increase with specific program requirements such as improved duct sealing, improved envelope/air sealing, and requirements for effrcient space or water heating equipment. The lack of a relationship between HERS score and gas savings itself does not directly question the usefulness of REM/Rate as an analytical tool for gas impacts, but rather the efficacy of a HERS score as the direct predictor of a single fuel's impact when it is a composite of multiple savings sources. Record [.ori Blattner )O8,-777-60l 5 Sponsor/Preparer:Kathv Wold. 208-377-6t28 Location: 555 S Cole Rd. Boise. lD 83707 RsspoNsB oF INTERMoUNTAIN Gas ColapaNy ro SECoND PRopucuoN RpeuBsr oF THE CovrurssroN Srerp - Pacp 13 REQUEST NO.23: According to the Whole Homes billing analysis, the actual average savings of Energy Star Certified Homes was 57.54 Therms per participating home per year (Table 4-3). This is far less than the 198.15 Therm modeled savings of Energy Star homes relative to the UDRH (Table 4-31). Given the inaccuracy of the model in estimating Energy Star Savings, why should the model be used to estimate savings values for the Company's revised Whole Homes program? RESPONSE TO REQITEST NO.23: This matter is an extension of RequestNo.21. The 57.54 Therms value compares Intermountain program homes to non-program homes, which are by and large built by different builders. As discussed in the Response to Request No. 21, [ntermountain believes it is punitive to assess the Whole Home program based on net therm savings rather than the gross therm savings used by other ldaho utility energy efficiency programs. Due to the difference in builders in the program versus the non-program builder population, it is not readily apparent that non-program builders are in fact the correct counterfactual for what the specifrc progrom builders would have done outside of the program. Applying this standard presumes that because one segment of the home builder market has advanced the efficiency level of their new construction without the program therefore all builders must have done so. This question is not answerable with current data, and assuming that the practices of current non-program builders are directly transferrable as standard practice for program builders (which is what is implicit in the comparison billing analysis) is potentially damaging to long term efficiency gains in new construction among builders that would otherwise lag standard practice. Record Lori B ).08-177-6015 Sponsor/Preparer: KathyWold. 208-377-6128 Location: 555 S Cole Rd. Boise.ID 83707 RpspoNsp oF INTERMoLNTAIN Ges ColapauY To SECoND PnorucrroN RseuEsr oF THE CouutssloN Srarr-PeGE 14 REQUEST NO. 24: In its proposed revisions to the Whole Home program, the Company recommends requiring homes to be HERS scored even though the EM&V evaluation found that lower HERS scores did not correlate with more Therm savings (Exhibit No. 7, page 5). What information will the HERS evaluator provide to the Company, and how does the Company plan to use this information to evaluate and refine the Whole Home program? RESPONSE TO REQUEST NO.24: To address the fact that a lower HERS score does not necessarily correlate with more therm savings as discussed further in the Response to Request No. 22, the Company proposes revising the whole home rebate to include specific energy performance requirements identified to capture therm savings specifically (minimum furnace efficiency, Air Change per Hour (ACH) limits, duct leakage allowance and ceiling insulation), as outlined in Exhibit No 7. In order to qualiff for a whole home rebate, however, a HERS certificate must be provided by a certified HERS rater. A HERS certificate not only provides the HERS score, but also a oohome feature summary." These features factor in to the final FIERS score. A sample HERS certificate has been provided for review as CONFIDENTIAL PR#2 24_Sample HERS Certificate. The specific requirements of the proposed whole home rebate coincide with several of the home features included on the HERS certificate (the information is highlighted on the sample certificate): primary heating system, primary water heating, house tightness (ACH), duct leakage to outside, and ceiling insulation. This will allow the Company to veriff qualification of a rebate with a single document that is provided by a certified energy rating professional (i.e. the home energy rater). The Company is not requiring a specific HERS score but is rather using the HERS documentation as proof by the home energy rater that the home does indeed meet the energy efficiency targets specified for the whole home rebates. Continual evaluation and refinement of the whole home rebate will be based on EM&V and a regular cycle of design-implement-evaluate. The Company has just completed the first full cycle of EM&V which was: design the current whole home rebate, implement the rebate, RpspoNsp oF INTERMoLTNTAIN Gas CoupeNY To SECoND PRopucuoN RseuEsr oF THE CovrulssroN Srarp - Pacp 15 evaluate the rebate, and use evaluation results to revise the rebate. The Company plans to repeat this process in order to veriff savings and continually refine and improve the offerings to secure cost effective therm savings. Record Lori Blattner- 208-177-501 5 SponsorlPreparer:Kathv Wold. 208-377-6128 Location: 555 S Cole Rd. Boise.lD 83707 RsspoNss oF INTERMoT.TNTATN Ges Coppaxy ro SECoND PRopucuoN Rreussr oF TTrE ComarsSroN Srerr - PecE 16 REQUEST NO.25: On page 5 of its Application, the Company states it only conducted impact evaluations on the Whole Home and Furnace rebate programs. Does the Company plan to evaluate the efficacy of its other programs? If so, please explain how the Company plans to do this. Please include the Company's plans for evaluating the additions and revisions described in Exhibit No. 7. RESPONSE TO REQUEST NO.25: Of the current offerings included in Intermountain's program, only fireplaces and water heaters were not evaluated in the EM&V study. Fireplaces had very low participation resulting in insufficient data to support a reliable evaluation, per guidance from ADM. Because of the low participation, Intermountain is proposing that this rebate be discontinued, so there will be no need to evaluate this rebate in the future. Based on guidance from ADM, water heaters will be evaluable when there are a minimum of 300 rebates processed with at least one year of post-retrofit billing data (specifically comprising summer months). Summer months present a smaller subset of gas loads (water heating, kitchen equipment) which allows for a better evaluation of water heating savings. The Company plans to establish a formal schedule of evaluating the rebate offerings listed in Exhibit No 7. The furnace rebate is the only rebate that remains unchanged. Since all other rebate offerings are either new or have been revised, the Company will follow the guidance provided by ADM regarding evaluating water heaters and determine the timing of the initial evaluation for each rebate based on having sufficient data including both the number of rebates issued and post-retrofit billing data. Once the initial evaluation is established, the Company plans to evaluate rebates that remain in the program on a regular 4 to 5-year evaluation cycle. Record Holder: Lori Blattner. 208-377-6015 SponsorlPreparer: KathyWold. 208-377-6128Location: 555 S Cole Rd-rD 83707 RpspoNsp oF INTERMoLNTATN Gas CoupaNy ro SECoND PRorucrroN Rrqwsr oF THE CouurssroN Srarr - pacs 17 REQUEST NO.26: Please provide all workpapers used to prepare the tables in Exhibit No. 6 in electronic format with formulae enabled and links intact. Please state all assumptions, and include calculations showing how Therm Savings and Dollar Savings were computed' RESPONSE TO REQUEST NO.26: Please see PR#2 26_Residential2019 Cost-Effectiveness for the workpapers used to prepare the tables in Exhibit No. 6. Record Ho Rlattner-77-6015 Sponsor/Preparer:Barber-77-6199 Location:555 S Cole Rd- B ID 8?707 RESPoNSE OF INTERMOLTNTAIN GAS COIvPANY TO SECOND PRooucrtoN Rrquesr oF THE CoMMISSIoN Srarp - Pecs 18 REQUEST NO.27: Please provide all workpapers used to prepare the table on Page 9 of Exhibit No. 7 in electronic format with formulae enabled and links intact. Please include calculations showing how the Annual Therm Savings per Rebate in Column (e), the Forecasted Rebate in Column (d), and the Proposed Incentive in Column (g) were determined. RESPONSE TO REQIIEST NO.27: Please see PR#2_27f,.esidential202l Plan Cost-Effectiveness for the workpapers used to prepare the table on Page 9 of Exhibit No. 7. The source for the Annual Therm Savings in Column (e) can be found on the tab labeled "Planning". The assumptions behind the Forecasted Rebates in Column (d) are discussed in the text of Exhibit No. 7. The Company used information from the CPA and EM&V studies as a starting point for the Proposed Incentive in Column (g), and then used the model provided in this Response to refine the Proposed Incentive until it was cost-effective. Record Ho I nd Fllqffner )08,-777-6015 Sponsor/Preparer: LandonBarber. 208-377-6199Location: 555 S Cole Rd. Boise.ID 83707 RnspoNsp oF INTERMoUNTATN Ges CorrapaNy ro SECoND PRopucuoN REeuesr oF THE CorrrvrssroN Srerr - PacE 19 DATED: January 13,2021 GIVENS PURSLEY LLP f Preston N. Carter Attorneys for Intermountain Gas Company RBspoNsB oF INTERMoUNTAIN Gas COIcaNY TO SECOND PnopucnoN Rpeupsr oF TI{E Corrrrr,ttssroN Srarr - PacE 20 CERTIFICATE OF SERVICE I certiff that on January 13,202I, a true and correct copy of INTERMOUNTAIN GAS COMPANY'S RESPONSE TO SECOND PRODUCTION REQUEST 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 201-4. Boise,lD 83714 Via Electronic Mail j an.noriyuki@puc. idaho. gov Matt Hunter Deputy Attorney General Idaho Public Utilities Commission I1331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, tD 83714 matt.hunter@puc. idaho. gov Idaho Conservation League Benjamin J. Otto Idaho Conservation League 710 N. 6th Street Boise,ID 83702 botto@idahoconservation.org dnABbM Lori A. Blattner RpspoNsp op INTBRUoLINTAIN Gas Collpauv ro SECoND PRopucuorq Rpeussr oF THE Comnsslorq Srarp - Pecp 21