20121108press release.pdf

Idaho Public Utilities Commission
Case No. GNR-E-12-01, Order No. 32673
November 8, 2012
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

PUC taking comments on low-income weatherization report

The Idaho Public Utilities Commission is taking comments through Nov. 23 on a
commission staff report that recommends changes to make implementing and
evaluating low-income weatherization programs uniform among Idaho’s regulated
electric utilities and more cost-effective.

Each of Idaho’s three large regulated electric utilities provides a specified amount of
funding for low-income weatherization programs within their service territories. Idaho
Power Company, which has the largest customer base in Idaho, provides $1.2 million,
Avista Utilities $700,000, and PacifiCorp (Rocky Mountain Power) $300,000. Low-
income weatherization can include a number of steps to increase energy efficiency and
reduce consumption including light fixture replacement, insulation, appliance repair or
replacement, air sealing and window and door improvements.

In recent rate cases, the Community Action Partnership Association of Idaho (CAPAI)
requested that Idaho Power and Rocky Mountain Power provide more funding for
weatherization programs to soften the impact of utility rate increases on low-income
customers. CAPAI’s member organizations throughout the state contract with utilities
to provide low-income weatherization.

In a related filing, Rocky Mountain Power, which serves about 70,000 customers in
eastern Idaho, asked that it not be required to provide evaluations of its low-income
weatherization program because it believes the program, while beneficial to individual
customers, is not cost-effective throughout its Idaho territory unless non-energy
benefits are included. (Non-energy benefits include items such as economic impacts
from job creation and reductions in customer arrearages, bad-debt write-offs and
customer disconnects.)

Commission staff opposed the requests due to concerns that the programs, even at
existing funding levels, may not be cost-effective. (A general definition of cost-effective
is that the cost of the measures taken to make homes more energy efficient is less than
the amount saved through reduced energy consumption.) Despite those concerns, staff
was reluctant to recommend cutting established programs that help low-income
customers reduce their energy bills.

In response, the commission directed the utilities, CAPAI, commission staff and other
interested parties to participate in a workshop to discuss cost-effectiveness and
funding-methodology issues.

The result of the workshop is a commission staff report with recommendations to
improve the efficiency of the programs and more accurately measure their cost-
effectiveness. Here is a link to the report:

http://www.puc.idaho.gov/internet/cases/elec/GNR/GNRE1201/staff/20121023REPORT
.PDF

The report recommends that weatherization funding should not be increased if
programs are not cost-effective. Conditions under which funding could be increased
include:

If a list of homes not previously weatherized and waiting for weatherization has
increased significantly;
If one utility’s weatherization program provides significantly less funding on a
per capita basis than the cost-effective program of another utility in the state
with comparable poverty levels;
If a utility is awarded a significant base rate increase. Rate increases impact low-
income customers more adversely than other customers;
And if a utility does not have sufficient funds to meets its low-income energy
savings potential.

Comments are accepted via e-mail by accessing the commission’s homepage at
www.puc.idaho.gov and clicking on "Comments & Questions About a Case." Fill in the
case number (GNR-E-12-01) and enter your comments. Comments can also be mailed to
P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

A copy of the staff report along with other documents related to this case is available on
the commission’s Web site. Click on “File Room” and then on “Electric Cases” and scroll
down to the above case number.

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