20130311_3987.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: MARCH 8, 2013

SUBJECT: IDAHO POWER COMPANY’S PETITION FOR APPROVAL OF
AMENDMENT TO AGREEMENT WITH ENERNOC, INC., CASE NO.
IPC-E-13-04

On March 7, 2013, Idaho Power Company filed a Petition requesting Commission
approval of Amendment No. 2 to the February 23, 2009 Demand Response Agreement between
Idaho Power and EnerNoc, Inc. The Agreement provides terms by which Idaho Power provides
a commercial demand response program for its commercial and industrial customers known as
the FlexPeak Management Program. FlexPeak is a voluntary demand response program
targeting industrial and large commercial customers that are capable of reducing their electrical
energy loads for short periods during summer peak load days. EnerNoc is responsible for
developing and implementing all marketing plans, securing participants, installing and
maintaining equipment, tracking participation and reporting results to Idaho Power. The
Commission approved the EnerNoc Agreement in Order No. 30805 issued May 15, 2009, and
subsequently approved an amendment to clarify terms of the Agreement in Order No. 31098.
On December 21, 2012, Idaho Power submitted an application in Case No. IPC-E-12-
29 requesting authority to temporarily suspend two other demand response programs, A/C Cool
Credit and Irrigation Peak Rewards. A settlement workshop was held on February 6, 2013, in
that case, and a settlement in principle was reached by all parties agreeing that a temporary
suspension of the A/C Cool Credit and Irrigation Peak Rewards programs for 2013 program
seasons is appropriate. The FlexPeak program was not addressed in that case because the
DECISION MEMORANDUM 2
Company is under contract with EnerNoc and does not have the unilateral ability to suspend
payment to EnerNoc prior to expiration of the Agreement in February 2014.
Idaho Power and EnerNoc have identified amendments to the contract to reduce the
weekly megawatts of nominated demand reduction obligations to a range of 20 MW to 35 MW.
Idaho Power’s Application asserts that capping the weekly MW of nominated demand reduction
at the historical level of 35 MW “will ensure that current participation levels are sustainable
while limiting future program costs associated with higher demand reduction levels that the
Company has identified it does not need at this time.” Idaho Power Petition, p. 5. By capping
the weekly nominated demand reduction at 35 MW, reducing the amount of dispatch hours
available from 60 to 30 and event days from 20 to 10, and reducing the amount Idaho Power
pays to EnerNoc per kilowatt, the Company expects to save program expenses of approximately
$500,000 in 2013. The Company’s Petition requests that the Commission approve these
amendments to the Idaho Power-EnerNoc Agreement.
Idaho Power requests that its Application be processed by Modified Procedure. Staff
recommends that the Commission issue a Notice of Petition and Notice of Modified Procedure
providing for a 21-day comment period to process the Company’s Application.
COMMISSION DECISION
Should the Commission issue a Notice of Petition and Notice of Modified Procedure
to process Idaho Power’s Petition requesting approval of amendments to the Agreement between
Idaho Power and EnerNoc?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-13-04_ws