20120215Decision Memo-Application.pdf

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DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
G IV ~ - £- - 1;) -0 \
FROM:STACEY DONOHUE
DATE:FEBRUARY 1,2012
RE:STAFF'S COMPLIANCE FILING CONCERNING AVISTA'S, ROCKY
MOUNTAIN POWER'S, AND IDAHO POWER'S LOW INCOME
WEATHERIZATION AND CONSERVATION EDUCATION PROGRAMS
AYISTA GENERAL RATE CASE NO. AVU~E/G-ll-02;
IDAHO POWER GENERAL RATE CASE NO. IPC~E~1l~08;
PACIFICORP GENERAL RATE CASE NO. PAC~E~l1-12;
PACIFICORP REQUEST TO SUSPEND FUTURE SCHEDULE 21
PROGRAM EVALUATIONS CASE NO. PAC.E.ii~13
The Commission recently heard foul' cases which identified issues surrounding the
funding, implementation, and evaluation of Avista's, Idaho Power's, and Rocky Mountain
Power's Low Income Weatherization and Energy Conservation Education Programs. As
described below, the Commission issued an order in all four cases instructing the companies to
paiticipate in public workshops to resolve these issues.
On September 30, 2011, the Commission issued Order No. 32371 in Avista's General
Rate Cáse No. AVU~E/G~i i~oi which approved the Stipulation signed by all patties and
resolved all issues. Regarding low income weatherization, the Order reads:
The Company and interested parties wil meet and confer prior to the
Company's next general rate filing in order to assess the Low Income
Weatherization and Low Income Energy Conservation Education
Programs and discuss appropriate levels of low-income weatherization
funding in the future. (p. 5)
On December 30,2011, the Commission issued Order No. 32426 in Idaho Power's
General Rate Case No. IPC-E- i i -08 which reads:
DECISION MEMORANDUM - 1 ~FEBRUARY 1,2012
We find it reasonable to open a case and convene public workshops for
stakeholders and other interested patties to discuss ways of determining
the relative need for low-income weatherization programs. The
workshops wil also be an effective tool for allowing stakeholders to
analyze and evaluate the various cost-effectiveness measures and non-
(energy)' benefits derived from low-income weatherization.
Consequently, it is our intent to convene public workshops, as soon as
possible, to discuss and resolve these weatherization issues." (p. 16)
The Order goes on to state:
The Commission intends to open a generic investigation with public
workshops to examine the common issues of need and determining the
appropriate mechanisms to measure the cost-effectiveness of low-
income weatherization programs. (p. 36)
On January 10,2012, the Commission issued Order No. 32432 in Rocky Mountain
Power's GeneralRate Case No. PAC-E-l1-12 which reads:
Thus, consistent with our ruling in IPC- E-II-08, the Commission finds
that it is reasonable to open a separate docket for all stakeholders and
interested Patties to participate in public workshops with a goal of
determining appropriate criteria for establishing funding levels for the
utilties' low-income weatherization programs. In the public workshops,
the Commission envisions that the Patties wil examine and discuss
various methodologies and tools to assess program cost-effectiveness,
including. the appropriate measurement of non-(energy)2 benefits
associated with the programs, and submit a report to the Commission
outlining their findings and recommendations. (p. i 7)
On January 18,2012, the Commission issued Order No. 324403 in Rocky Mountain's
Request to Suspend Future Program Evaluations ofSchedulc 21 in Case No. PAC-E-I 1-13
which reads:
Thus the. Commission finds it reasonable and appropriate to defer any
final decision regarding Rocky Mountain's request to suspend its
obligation to peiform program evaluation of its Schedule 2 I - Low
Income Weatherization Services Option for Income Qualifying
Customers Program in order to conduct upublic workshops to examine
the common issues of need and determine the appropriate mechanisms
to measure the cost-effectiveness of low-income weatherization
programs." Order No. 32432 at 22. Consistent with our final Order
i Order No. 324261listakenly reads "non-economic benefits", It should read "non-energy benefits".
2 Order No. 32426 mistakenly reads "non-economic benefits". It should read "non-energy bcncfits".
3 Order No. 32440 references the previously-issued general rate casc order (Order No. 32432).
DECISION MEMORANDUM - 2 -FEBRUARY 1,2012
following the Company's last gcneral ratc case, PAC-E-11-121 the
Commission directs Rocky Mountain to participate in the workshops
with a "goal of determining appropriate criteria for establishing funding
levels for the utilties' low-income weatherization programs.., and
submit a report to thc Commission outlining thcir findings and
recommendations. Id. at (p. 9)
STAFF RECOMMENDATION
Staff recommends that the Commission initiate a generic case instructing A vista, Idaho
1) ower, and Rocky Mountain Power to participate in public workshops so that all interested
parties may address lUiresolvcd issues regarding funding, implementation. and evaluation of each
utilty's Low Income Weatherization and Energy Conservation Programs. At the conclusion of
these workshops, Staffwil submit a report to thc Commission with its findings and
recommendations.
COMMISSION DI~CISION
Does the Commission wish to initiate a generic case instructing A vista, Idaho Power, and
Rocky Mountain Power to participate in public workshops so that all interested parties may
address unresolvèd issues surrounding funding, implementation, and evaluation of each utilty's
Low Income Weathe1'zation and Energy Conservation Education Programs? At the conclusion
of the workshops, should Staff submit a report to the Commission with its findings and
recommendations?
Udinclnos/L1 Decision Memo 2-1-2012
DECISION MEMORANDUM - 3 -FEBRUARY 1,2012