20060515_1546.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:BEVERLY BARKER
DATE:MAY 11, 2006
RE:SCHEDULE 21/LOW INCOME WEATHERIZATION SERVICES;
PACIFICORP TARIFF ADVICE NO. 06-03.
PacifiCorp proposes to make several revisions to its Schedule 21. The requested
effective date is June 1 2006. Staff has recommended and the Company agreed to a minor
change in the Company s proposed tariff wording. The Company will file a revised Sheet No.
21.2 reflecting this change upon approval of the proposed tariff advice.
In addition to these housekeeping changes, the Company is revising Schedule 21 in order
to comply with commitment I-13a of the PacifiCorp/Mid-American settlement agreement
approved by the Commission in Case No. P AC-05-, Order No. 29998. PacifiCorp proposes
to revise Schedule 21 to specify that community action agencies will be reimbursed 50% of the
cost of approved energy conservation measures when federal funds are available and 100% of
approved costs when federal funds are not available.
The Company is also proposing to eliminate the existing requirement that the average
weatherization cost per home per year not exceed $1 500. This change was not part of the
settlement agreement and is further discussed below.
STAFF ANALYSIS AND RECOMMENDATION
Staff agrees with the housekeeping changes and the revision to allow for coverage of
100% of the cost of approved energy conservation measures when federal funds are not
available.
DECISION MEMORANDUM - 1 -MAY 11 2006
Staff supports removal of the average cost cap as proposed by PacifiCorp. PacifiCorp
current cap appears to be too low, potentially reducing the opportunity to install cost-effective
measures in low-income homes in southeastern Idaho. Idaho Power currently has a $2 200
average cost cap. Avista does not have a cap, but closely monitors program costs. Avista reports
that the current average cost for low-income weatherization measures is $1 977. Eliminating the
cap will allow the Company and local community action agencies more flexibility in
administering the program without sacrificing accountability. Staff anticipates that PacifiCorp
future DSM reports will include a thorough analysis of the low-income weatherization program
including a calculation of the average cost per home and a determination of the cost-
effectiveness of the program.
CO MMISSI 0 N D ECISI 0 N
Does the Commission wish to approve the proposed revisions to PacifiCorp
Schedule 21
i:udmemos/pacificorp advice 06-03.doc
DECISION MEMORANDUM - 2 -MAY 11 2006