20190305_ck1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
FROM:CASSANDRA KOERNER
DATE:MARCH 1,2019
RE:ROCKY MOUNTAIN POWER'S TARIFF ADVICE NO.19-01 TO
MODIFY ELECTRIC SERVICE SCHEDULE 21 -LOW INCOME
WEATHERIZATION.
BACKGROUND
On January 16,2019,Rocky Mountain Power filed Tariff Advice No.19-01 asking the
Commission to modify Electric Service Schedule 21 -Low Income Weatherization Services
("LIW Program")with an effective date of March 6,2019.1
Rocky Mountain Power proposes to change the level of reimbursement for Ductless Heat
Pumps ("DHP")in its LIW Program in homes with permanently installed electric heat.Eighty-
five percent of installation costs are currentlyreimbursed by the Company as an eligible energy
conservation measure listed in Schedule C of Schedule 21.Federal funding generally covers the
remaining 15 percent of Schedule C measures,but that fundingis not currentlyavailable for
ductless heat pumps.Rocky Mountain Power requests to reimburse 100 percent of installation
costs for DHPs in the LIW program.The Company provided a cost-effectiveness analysis for
the LIW program based on an annual fundingcap of $300,000.
STAFF ANALYSIS
Staff reviewed the Company's cost-effectiveness analysis of the proposed change to
reimbursement of ductless heat pumps (DHP).Based on this review,Staff recommends approval
of the tariff change to allow reimbursement of up to 100 percent of the installed cost of DHPs.
I The Company filed with an originaleffectivedate of March lst,2019 but the date was updated to align with the
Decision Meeting on March 5,2019.
DECISION MEMORANDUM -1 -MARCH 1,2019
Under the 100 percent reimbursement proposed by the Company,the DHP measure is
cost-effective with a PacifiCorp Total Resource Cost (PTRC)of 6.45 using the non-energy
impacts (NEIs)approvedin Commission Order No.32788.Even without those NEIs,the 100
percent reimbursement fundingproposed for this measure is cost-effective with a 1.55 PTRC.
Allowingthe Company to fill the reimbursement gap for this measure improves overall
cost-effectiveness of the LIW program.In addition,the high efficiencyof DHPs will decrease
energy bills of low-income residential customers.
Based on the cost estimates provided by the Company,Staff believes the proposed
fundingchange for this measure will have about a one percent impact on the program
expenditures.The Company estimates that DHPs will compose less than eight percent of the
2019 LIW budget and will provide slightlymore than ten percent of the program savings.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company's requested modification
to Electric Service Schedule 21 with an effective date of March 6,2019.
COMMISSION DECISION
Does the Commission wish to approve the Company's proposed modifications to Electric
Service Schedule 21,with an effective date of March 6,2019?
Cassandra erner
Udmemos/RockyMtnPower Tariff Adv No.19-01 dec memo
DECISION MEMORANDUM -2 -MARCH 1,2019