20100322_2892.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: MARCH 17, 2010

SUBJECT: CASE NO. IPC-E-10-04
IDAHO POWER’S APPLICATION FOR AUTHORITY TO FUND ITS
CONTINUED PARTICIPATION IN THE NORTHWEST ENERGY
EFFIENCY ALLIANCE

On February 26, 2010, Idaho Power Company filed an Application requesting
authorization to continue its participation in the Northwest Energy Efficiency Alliance (NEEA)
for the period 2010-2014. The Company requests that its participation be funded by the Energy
Efficiency Rider. Idaho Power first began participating in NEEA in 1997 and the Commission
has allowed the Company to recover its costs in its rates. In May 2005, the Commission
increased Idaho Power’s Energy Efficiency Rider so the Company could expand its energy
efficiency programs and continue its participation in NEEA for the years 2005-2009. See Order
No. 29784. In March 2009, the Commission approved a Stipulation finding a portion of the
Company’s demand-side management expenses were prudently incurred, and approved
Company fees paid to NEEA through 2007. See Order No. 30740.
Idaho Power’s Application describes the main components of NEEA’s business plan
for 2010-2014. Idaho Power identifies NEEA activities that the Company believes benefit its
customers, including (1) a commercial new construction initiative that includes an integrated
design lab based in Boise; (2) an energy management program that works with large commercial
customers to improve building operations and maintenance to save between 10 and 20 percent of
electric energy use; (3) NEEA’s efforts in the development of energy building codes; (4)
NEEA’s partner services and evaluation business unit that delivers services to help increase the
DECISION MEMORANDUM 2
cost efficiency and to value delivery of Idaho Power’s energy efficiency programs; and (5)
increasing market adoption of energy efficiency programs in rural markets. The Company’s
Application also points out that the Company and NEEA have negotiated an agreement to help
ensure that the Company’s energy efficiency expenditures are reasonable and effective. The
Regional Energy Efficiency Initiative Agreement is attached to the Company’s Application.
Subject to the Commission’s approval, Idaho Power has committed to fund NEEA
based on a quarterly estimate of expenses up to a five year total funding amount of $16,522,800.
Idaho Power’s share is 8.62% of NEEA’s $191.7 million 2010-2014 budget. If the Company’s
Application is approved, NEEA will bill Idaho Power for first quarter 2010 expenses payable
within 30 days of receipt of a Commission Order authorizing Idaho Power’s participation in
NEEA.
Idaho Power requests that its Application for authorization to continue its
participation in NEEA be processed by Modified Procedure. Staff recommends that the
Company’s Application be processed by Modified Procedure with a 30-day comment period and
a 10-day reply comment period.
COMMISSION DECISION
Should the Commission issue a Notice of Application and Notice of Modified
Procedure establishing a comment period of 30 days, followed by a reply comment period of 10
days?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-10-04_ws