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HomeMy WebLinkAbout20050315DSM 2004 Annual Report.pdf:t PC- E --63 -17 An iDACORP Companv (8) Demand-Side Management Annual Report March 2005 To request additional copies Please write or call Darlene Nemnich Idaho Power Company O. Box 70 Boise, I D 83707 (208) 388-2200 Pri nted on recycled paper TABLE OF CONTENTS EXEC UTIVE SU MMARY ........................ .................................. ..... ....... .............. ............ 3 DEMAND SIDE MANAGEMENT TERMS...................................... ................. ................ 5 DEMAN D RESPONSE PROG RAMS...................................... ...... ........ ................ .......... 7 AIR CONDITIONING CYCLING PILOT (AiC COOL COMFORT)................................................ IRRIGATION PEAK CLIPPING PILOT (IRRIGATION PEAK REWARDS) ...................................... RESIDENTIAL CUSTOMER PROGRAMS ................................................................... ENERGY STARCB) HOMES NORTHWEST ........................................................................ REBATE ADVANTAGE....................................... ............................................................. ENERGY HOUSE CALLS ................................................................................................ Low-INCOME WEATHERIZATION ASSISTANCE (LIWA) ..................................................... OREGON RESIDENTIAL WEATHERIZATION (SCHEDULE 78) ............................................... COMMERCIAL CUSTOMER PROGRAMS .................................................................. BUILDING EFFICIENCY (COMMERCIAL CONSTRUCTION ENERGY EFFICIENCY PROGRAM) .... 19 OREGON COMMERCIAL AUDIT (SCHEDULE 82) ............................................................... 20 INDUSTRIAL CUSTOMER PROGRAMS ..................................................................... INDUSTRIAL EFFICIENCY PROGRAM ............................................................................... DISTRIBUTION EFFICIENCY INITIATIVE PILOT ................................................................... IRRIGATION CUSTOMER PROGRAMS................................................................... IRRIGATION EFFICIENCY PROGRAM. .................... ... ................... ....... .......... ....... ".' ..... .... SMALL PROJECTS AND EDUCATION FUNDS ......................................................... SUMMARY ................................................................................................................... SMALL PROJECT FUNDS ............................................................................................... EDUCATION FUNDS ...................................................................................................... TRAI N NG P ROG RAMS ...... ........ ....................................... ................................. ......... NORTHWEST BUILDING OPERATOR TRAINING ................................................................. MARKET TRANSFORMATION........................................ ................................. ........... 33 NORTHWEST ENERGY EFFICIENCY ALLIANCE................................................................. 33 ENERGY EFFICIENCY ADVISORY GROUP ACTIVITIES (EEAG) ............................. ENERGY EFFICIENCY ADVISORY GROUP RECOMMENDATIONS.......................................... 35 REG U LA TORY APPEN DIX ........................................................................... ............... DA T A AP PEN D IX..................................................... .......... ....................... ................... FUNDING FROM ENERGY EFFICIENCY RIDER AND BPA.................................................... 43 EXPENDITURES FOR ENERGY EFFICIENCY IN 2004.......................................................... 44 PROGRAM ACTIVITY-CURRENT DSM 2004 .................................................................. PROGRAM ACTIVITY-HISTORICAL ................................................................................ Demand Response, Residential Efficiency.................................................. 46 LIWA .................................................................................................................. Commercial , Industrial , Irrigation , Education ........................................... 48 FINANCIAL FACTORS .................................................................................................... In an ongoing commitment to customers , Idaho Power develops and implements programs to help in managing energy demand. These Demand Side Management (DSM) programs help participants to save money and allow Idaho Power to more efficiently manage resources. Programs are designed to reduce overall energy demand, to manage peak demand loads, and to reduce the need to buy energy from the open market. Idaho Power relies on the input of the Energy Efficiency Advisory Group (EEAG) to provide customer and public interest review of DSM programs. Formed in 2002 and meeting quarterly, the EEAG consists of 18 members spanning a cross-section of customers including residential , industrial, commercial, irrigation , the elderly, low income state agencies, the environment, the IPUC , and representatives from Idaho Power. In 2004 , Demand Side Management programs at Idaho Power continued to grow and to show steady improvement in customer satisfaction. Two pilot programs were conducted to impact peak demand; the Irrigation Peak Clipping Program, and a second year of the Air Conditioning Cycling Program. Participation increased in existing programs including new home and manufactured home efficiency programs, Industrial Commercial and Irrigation Programs. Participation in the Low-Income Weatherization Program (LlWA) also grew in 2004 as funding increased by about $1 million per year. Furthermore, Idaho Power s customer satisfaction surveys show steady improvement in the percent of customers whose needs are met with energy conservation. In 2004 Idaho Power realized energy savings of 507 MWh and peak savings of 6.83 MW from its energy efficiency and demand response programs. Additionally, savings were realized from market transformation efforts which are reported by the Northwest Energy Efficiency Alliance (Alliance) and summarized later in this document. In 2004, Demand Side Programs saved 23,507 MWh of energy and 6.83 MW of peak energy. During the course of the year, Idaho Power spent over $4.2 million promoting energy efficiency, including payments of $1.million to the Alliance , $1.million in spending for programs funded through the Idaho Energy Efficiency Rider (Rider), and $0.95 million in spending on Idaho Power Programs funded by the Bonneville Power Administration s Conservation and Renewable Discount Program (BPA C&RD). Funding and expenditure details are shown in the Data Appendix. Summary: DSM Costs* and Energy Savings 2004 Pro ram Cate 0 Programs funded through the Rider Programs funded through SPA Northwest Energy Efficiency Alliance (Alliance) Low-Income Weatherization Assistance (LlWA) Oregon programs Other DSM Costs and Administration Program Spending $ 1 222 670 $ 949 898 $ 1 244 790 $ 509 133$ 1 057 $ 276 900Total $ 4,204,448 * Further details shown in Data Appendix - "Expenditures for Energy Efficiency in 2004" Table. SavingsMWh Peak MW806 6. 808 593 300 23,507 MWh 83 MW The 2004 Integrated Resource Plan (IRP) was published and filed with Idaho Power s twostate regulatory commissions. The plan calls for savings from demand side programs in the 2004-2013 horizon totaling 124 MWof peak capacity and 48 average MW of energy.Six programs in 2005 will contribute to these savings. Some programs will be expanded some pilots developed into full programs , and other programs will be newly developed. During the fall of 2004, applications were filed with the (IPUC) for full implementation ofthe AlC Cycling Program and Irrigation Peak Clipping Programs (now called Irrigation Peak Rewards). In addition, Idaho Power filed an application with the IPUC to increase the Energy Efficiency Rider for funding to implement the energy efficiency levels called for inthe Integrated Resource Plan and to continue our participation in the Alliance. Idaho Power and otherinterested groups participated in a series of workshops in Idaho to examine utility disincentives to DSM. In the future, DSM programs are scheduled to save 48 MWa from 2004-2013 Additionally, Idaho Power has added four new full-time staff and has continued to develop internal systems to operate more efficiently. The year 2004 marked the final year in an agreement to fund the Northwest EnergyEfficiency Alliance for five years. The Alliance s efforts in the Pacific Northwest impactIdaho Power s customers by providing behind-the-scenes market changes as well providing leverage to Idaho Power local programs. Idaho Power, with valuable input fromthe EEAG analyzed the benefits of continued funding and , on September 30 , 2004signed an agreement to continue support of the Alliance through 2009. Idaho Powerworked closely with the Alliance and will use the research and infrastructure developed by the Alliance in local programs. In 2004, Idaho Power was in its fourth year of a five-year agreement with the (BPAC&RD). Idaho Power directs the BPA C&RD funds to programs that serve lower-incomeresidential customers. This Annual Demand-Side Management Report has been prepared in response to Order No. 29419 from IPUC. This document reports the energy efficiency and demand response achieved by Idaho Power programs and activities in 2004. The Appendixcontained in this document reports current and historical program data, and a separateAppendix document contains the full report of the AlC Cycling Pilot as requested by theIPUC in Order No. 29207. AlC ..... ... . .. ... . .. . -. ....... ... . .. .... ... . . . .... . .... ... .... .. .EMii tiS 19EMiNAGEMEN TTE RMS Air Conditioning Alliance Northwest Energy Efficiency Alliance BPA C&RD CFL CSR DLC DSM EEAG HVAC lED IPUC IRP LIWA Bonneville Power Administration Conservation and Renewable Discount Program - Compact Fluorescent Lamp Customer Service Representative Direct Load Control - Demand-Side Management Energy Efficiency Advisory Group Heating Ventilation and Air Conditioning Idaho Energy Division Idaho Public Utilities Commission Integrated Resource Plan - Low-ncome Weatherization Assistance NWBOA Northwest Building Operators Association OPUC PTCS Rider - Oregon Public Utilities Commission Performance Tested Comfort Systems Energy Efficiency Rider Program Spending Costs other than administrative costs associated with a particular program. Administrative and miscellaneous costs are provided as a line item. Total Utility Costs ID Power monetary costs associated with a particular program. Used in Appendix tables and program summaries. Total Resource Costs Total Utility Costs combined with the incremental monetary expense incurred by customer. This page left blank intentionally. . ............ ... .. ..-. ... . . ..--. .. .. ... . .- . . . . .. .-... ... . ~.N.II...)RESPO..N..S..E ..R.OG..O.MS AIR CONDITIONING CYCLING PILOT (AIC COOL COMFORT) DESCRIPTION In March 2003 , the Idaho Public Utilities Commission (IPUC) issued Order No. 29207 approving a request by Idaho Power to conduct a two-year Air Conditioning Cycling Pilot Program (AIC Pilot Program). This voluntary program for residential customers enabled Idaho Power to directly address summer peaking requirements by reducing the air conditioning load of program participants. The primary goal of the AIC Pilot Program was to assess the effectiveness of air conditioning control on reducing peak load. Specific 2004 objectives were: Assess effect of air conditioning control on reducing household peak demand (kW) and energy use (kWh) Refine methodology for measuring and evaluating effects Integrate AIC Pilot Program processes into Idaho Power operations Test equipment Several design changes were made during the second year of the Air Conditioning Pilot Program to attain these goals. Specific changes included the following: ~ Amended contract with Cannon Technologies to purchase 200 Direct Load Control (DLC) switches and test switch installation, performance and maintenance compare to that of thermostats. Developed a direct mail application targeted to a random sample of customers in Boise and Meridian in order to analyze response rates. Developed an improved customer database to track installations , equipment and maintenance. Installed 35 demand meters and 78 data loggers in randomly selected households to improve data collection and evaluation. Designed a Voice Response Unit system and trained 10 company Customer Service Representatives (CSRs) to assist with program-related telephone . . inqUIries. Tested two cycling schedules (50010 and 67010) to determine differences in demand and temperature gain within the households. Approximately 120 hours of cycling occurred during 30 test days in June, July, and Aug ust. RESULTS Peak Demand Effects: At 50010 cycling across all temperatures , the programproduced a substantive and measurable effect of approximately .83 kW reduction per participant in air conditioning load during cycling periods, with a larger increase of16 kW reduction per participant during cycling when the outside temperature was 950 or greater. Energy Effects: The reduction in air conditioning load during cycling results participants shifting usage to non-cycling periods. Overall , this results in a slight net decrease in energy usage of 0.8 kWh during a typical cycling day. Comfort: About 90010 of participants experienced little or no discomfort from cycling, and the overall average home temperature increase was between 1 to 2 degrees over the four-hour cycling period. Customer Satisfaction: A survey taken after the cycling season indicated high levels of customer satisfaction on measures including information provided , cooling comfort customer service and overall program management. NEXT STEPS On November 15, 2004 Idaho Power filed for approval to implement a system-wide Air Conditioning Cycling Program in Idaho. This application was approved onFebruary 4, 2005 through IPUC Order No. 29702. The 2005 program implementation is underway. Approximately 2000 participants will be recruited in Ada and Canyon counties and the city of Emmett. Within the Emmettarea, the program will utilize Power Line Carrier communications through the Advanced Meter Reading (AMR) system to control switches, while within Ada and Canyon counties the program will use switches activated by a paging system and dispatched through a web-based interface. Further program integration is planned within Idaho Power and contractors will be hired to provide the equipment and manage an end-to-end installation process. . . .. ...... . .. . - . . . .. . . '.... RE'S..P.DN.SE,P..RD..RaM, IRRIGATION PEAK CLIPPING PILOT (IRRIGATION PEAK REWARDS) DESCRIPTION The 2002 and 2004 Integrated Resource Plans (IRP) for Idaho Power identified peak resource deficiencies in upcoming years. As a result, Idaho Power determined it would target demand-side resources to reduce system peak demand. Since the summer irrigation loads are a major component of the summer peak demand , the Irrigation Peak Clipping Pilot Program was developed. The purpose of this program was to test the potential reduction of summer peak loads by interrupting service to participating irrigation customers. Through the use of electronic timers on the customers' irrigation equipment , service was cycled off during peak weekday hours from 4 p.m. to 8 p.m. (The program was designed to interrupt irrigation service during the 2004 summer irrigation season beginning on June 1 2004 and ending on August 31 2004. Participants in the program were given the choice of three interruption options: either one twq, or three weekdays per week for the months of June, July, and August. Electronic timers were programmed to interrupt electrical service to the specified irrigation equipment for the hours of 4 p.m. to 8 p.m. Mountain Daylight Time (MDT) on the regularly scheduled weekdays. The following interruption options were available to the customers along with the corresponding incentive amounts: One weekday per week, 4 p.m. to 8 p. . Two weekdays per week, 4 p.m. to 8 p. Three weekdays per week, 4 p.m. to 8 p. $1.75 per kW Demand $1.88 per kW Demand $2.00 per kW Demand The actual incentive amount to customers was calculated for each metered service point by multiplying the billing demand for the months of June, July, and August by the incentive corresponding to the interruption option the customer selected. RESULTS Participation: Out of the 310 eligible customers , 55 customers-or 190/0- chose to participate in the program. Of the 1 100 eligible service points 148 service points-or 13.5OIo-were enrolled in the program. Peak Demand Effects: The program produces substantive and measurable impacts on peak demand. The total demand reduction associated with the program averaged 4 345 kW from 4-8 p.m. over the course of the summer. The maximum reduction occurred during the last half of June, when an estimated 5,597 kW in demand reduction was achieved. The minimum reduction of 2 833 kWoccurred in late August. Energy Effects: The program achieved significant load shifting from peak to off-peak periods. That is, the program was successful in reducing demand without any statistically significant change in overall energy consumption. Customer Satisfaction: Over 77010 of the participants were satisfied with the program and approximately 64010 of the participants reported that the incentive amount was what initially persuaded them to participate. Moreover, nearly 77010 of the participants said they probably or definitely would participate in the program again. NEXT STEPS On November 1 2004, Idaho Power filed to implement a system-wide Irrigation Peak Rewards Program in Idaho with the Idaho Public Utilities Commission. This filing was approved on December 22, 2004 through Order No. 29665. The company plans to implement this program in 2005 with a peak savings goal of 30 MW. .- . .. .. .... ... ... .. .. ,.. .. .,. . . ...... ....... .. .....-. ... . ... . IIGGUSI10MERPROG.-MS ENERGY STAR(B) HOMES NORTHWEST DESCRIPTION The ENERGY STARCB) Homes Northwest Program is a regionally coordinated initiative supported in partnership by the Northwest Energy Efficiency Alliance, Idaho Power and the Idaho Energy Division to support the construction of single-family homes that are 30010 more energy efficient than those built to standard Idaho residential code. Idaho Power s primary objective with this program is to reduce future peak summer demand by increasing the efficiency of residential building envelope construction practices and air conditioner usage. The company is providing consumer marketing, $750/per home-builder incentive, and program management to the partnership. The following are among the activities Idaho Power completed in 2004: Developed programs logos and collateral material Placed 9 print advertisements in Boise and Nampa real estate publications Sponsored 7 Parade Home entries in Ada and Canyon counties Sent out 6 press releases about the program Scheduled several radio and television interviews to promote program and events Sent out 430 "Homebuyer s Kits" to customers Placed bill stuffers in March and December power bills Organized major public relations event for the first 100010 Energy Star subdivision in Idaho Marketed builder training workshops in Boise and Pocatello NEXT STEPS Plans are underway to expand the program in Twin Falls and Pocatello in 2005 , and a comprehensive communications plan addresses future program roll-outs to coincide with local Parade Home events in those communities. Idaho Power also intends to formalize an agreement with the Idaho Energy Division assist their efforts in managing workload and home certification. .. ... . . . . ... .. . . . . .. .. .... ... . ... . ... .. .. .. ..... . .. . ....... . . - ... . . UCIJStrSMERRILOGUMS REBATE ADVANTAGE DESCRIPTION In 2003, Idaho Power launched a program to encourage manufactured home buyers to purchase energy-efficient electrically heated Super Good Cents/ENERGY STARCB)homes. The program, formerly called Energy Efficient Manufactured Home Incentives , was renamed Rebate Advantage at the start of 2004. The goal of the program is to help buyers purchase Super Good Cents/EN ERGY ST ARCB) homes and to encourage salespeople to discuss energy efficiency with potential home buyers. Customers who purchase a Super Good Cents/ENERGY STARCB) home and site it in Idaho Power s service territory are eligible for a $300 incentive. In addition , the salesperson receives a $75 incentive. The BPA's C&RD program funds this effort. Idaho Power relies on the Northwest Energy Efficiency Manufactured Homes Program (NEEM) for the specifications and quality control associated with the program. NEEMis a consortium of manufacturers and state energy offices in the Northwest. addition to specifications and quality control NEEM tracks the production and performance of Super Good Cents/ENERGY STARCB) homes. RESULTS The program performed steadily throughout the year. A majority of the homes were sited in more rural areas throughout the service area. The number of dealers and salespeople participating in the program are as follows: Towns with Homes Sited Dealers Salespeople NEXT STEPS In 2005, Idaho Power will develop a marketing plan to highlight the ENERGY STARCB) qualified home. The new ENERGY STARCB) specifications, which were anticipated in 2004, are expected to be completed in early 2005. These new specifications will make it easier for manufacturers to build ENERGY STARCB)qualified homes for customers in our service area. An increase in the incentives for ENERGY STARCB) qualified homes will also be considered. .. .. .. .. .. ... .. . .. ... . - .. .. ... .. . DJIAcIJrCUS'I'OME RRROG. RAMS ENERGY HOUSE CALLS DESCRIPTION Idaho Power launched a pilot program in October 2002 to provide duct sealing and additional efficiency services to customers living in electrically heated manufactured homes. Upon successful completion of the pilot program, Idaho Power rolled the program out to the entire service area. At that time the program was renamed Energy House Calls for Manufactured Homes (formerly known as Manufactured Home Energy Checkups). The program is funded by the BPA through C&RD dollars. The services are free to customers and include the following: Duct testing and sealing according to Performance Tested Comfort System (PTCS) specifications endorsed by the BPA and Idaho Power 3 CFL bulbs 2 furnace filters along with replacement instructions Hot water temperature test Energy efficiency materials The program is managed under contract by Ecos Consulting in partnership with Delta- T, both of whom have experience and expertise in managing duct sealing programs. Ecos and Delta- T rely on local weatherization and energy services providers to market and perform the services. Quality assurance is provided by a third-party in compliance with the BPA's C&RD guidelines and Idaho Power. RESULTS Work in 2004 progressed at a pace significantly higher than initially predicted due to the productivity of the local technicians and the speed at which they were trained and certified in the program. The need for duct sealing continues to be apparent. In the homes tested and sealed to the BPA and Idaho Power standards, an average of 62% reduction of air leakage was achieved. Of all homes tested , less than 100/0 met the BPA and Idaho Power standards without sealing. Energy House Calls in 2004 Table 2. Measures & Participants Furnace Filters Number 964 Savings kWh Homes Tested & Sealed Homes Tested Only Homes Not Able to Seal Total Homes 497 114 1 ,708 035,792 kWh CFL bulbs 667 313 991 kWh Total 349 783 kWh NEXT STEPS The program will continue to operate in its current form throughout the service area in 2005. Particular focus will be placed on colder-climate areas in an effort to reach customers who would receive greater benefit from these services. The program contractors , Ecos Consulting and Delta-, are working to complete 1 000 additional homes added to their contract in the fall of 2004, bringing the program total to nearly 000 homes. .. ...... .. . . .-. .. .. .... ... .. ... . ~titI..lSTBM ..E.. .... ...PROG..RAM. Low-INCOME WEATHERIZATION ASSISTANCE (LIWA) DESCRIPTION Since 1989, Low-Income Weatherization Assistance has been a public-purpose program to make energy services more affordable to low-income customers. Idaho Power provides grants to local non-profit agencies participating in state-run weatherization programs in Idaho and Oregon to supplement federal funding of weatherization projects. The agencies recruit candidates and qualify households for the program using the state eligibility requirements. The state programs are administered in Idaho by the Department of Health and Welfare, Bureau of Benefit Program Operations, and in Oregon by the Department of Human Resources, State Housing & Community Services Department. For all Agency weatherization jobs , the dwellings must be electrically heated and provide cost-effective electricity savings. In Idaho, the program allows health and safety measures costing up to 15 percent of the total job, in addition to weatherization measures. In Order No. 29505 issued in Case No. IPC-03-, the Commission directed Idaho Power to increase annual LlWA funding by $1 000 000 for three years. Idaho Power hired a program manager to manage the program with the Community Action Partnership (CAP) Agencies and to assist them in completing additional weatherization jobs. Changes were implemented in Idaho to align Idaho Power program with the Department of Energy (DOE) weatherization program. Changes included a consistent 1.0 savings to investment ratio 10010 administrative fee, and changes in invoice billing procedures in order to simplify the process for CAP agencies. Idaho Power also increased the amount of funding available for each job from 50010 to a maximum of 85010 with a minimum funding contribution of 15010 from the DOE. The program also changed from a fuel blind program to reimbursing for electrically heated homes only. Funds to be utilized by non-profit organizations were increased from $15 000 to $36 250. Additionally, an allowance was made for the remaining funds at the end of the contract year to be rolled over into the following year s contract. RESU L TS LIWA activity by agency and state is shown in Table 3. Included in the 309 jobs completed in Idaho were 40 electrically heated homes that were weatherized using $49 886 provided through the C&RD from the BPA to save an estimated 125 919 kWh. The remaining 269 non-C&RD funded jobs in Idaho saved 271 677 kWh. In Oregon , 17 weatherization jobs were completed and are estimated to save 28 436 kWh. The non-profit pool fund for weatherization of buildings occupied by tax-exempt organizations provided $16 284 to help four Idaho non profit organizations in 2004. Jointly, the estimated savings per year for all four organizations is 103 956 kWh. NEXT STEPS A LlWA database is in the process of being developed in order for agencies to transmit job invoices for payment electronically. A LIWA satisfaction survey is being distributed to a minimum of 10% of customers receiving weatherization services. Inspections by Idaho Power personnel will continue on 5010 of all weatherization jobs. In addition , Idaho Power plans to implement in Oregon the program changes adopted in Idaho upon approval by the Oregon Public Utility Commission. Low-Income Weatherization Assistance in 2004 Table 3. Weather- ization Spending Program Agency Jobs Vendor BPA funds Spending Canyon County Organization on Aging 150 945 601 164 546 Eastern Idaho Special Services Agency 439 600 039 EI-Ada Community Action Agency 142 569 159 164 728 Central Community Action Agency 109 776 786 117 562 Eastern Idaho Community Action Agency 651 740 391 Idaho Nonprofit Pool Fund 284 284 Idaho Subtotal 309 495,664 * $49,886 545,550 Malheur Council on Aging (Oregon)13,469 * $13,469 Total 326 509,133 * $49,886 559,019 Misc. program expenditures & admin 524 Total UtilitY Cost 578.543 * Correlated to Expenditures Table in Appendix, line item LlWA Idaho. ... . . .. .. .. .... .. ... . .. . .... ... .. .. . .. ...... ' iEJ~I!CIlSTOMERARQGRAMS. OREGON RESIDENTIAL WEATHERIZATION (SCHEDULE 78) DESCRIPTION This statutory program requires the annual notification of all residential customers in Oregon to inform them how to obtain energy audits and financing for energy conservation measures. To qualify for an Idaho Power audit or financing, customers must have electric space heat. The program offers loans at 5010 interest or cash payments of 25% of the cost-effective portion of recommended measures. Loans for measures that are not cost-effective are also available at a higher interest rate , but the maximum total loan amount is $5 000 per dwelling, and loans are subject to credit approval. The maximum cash payment is the installed cost of the measures excluding labor by the owner, up to $1 000 per dwelling. RESULTS Program costs shown above were from 4 jobs completed in 2003 and paid in 2004. 2004, there were 34 inquiries regarding residential audits; 17 audits were performed with jobs to be performed in 2005. Idaho Power will be providing a payment for one customer that completed a weatherization job on a triplex in early 2005. This page left blank intentionally. . ... . - ... .. . .. .. . . . . . ... . ~eCU5TGMISR.P.ROG.RA. BUILDING EFFICIENCY (COMMERCIAL CONSTRUCTION ENERGY EFFICIENCY PROGRAM) DESCRIPTION Idaho Power is committed to expanding the Rider energy efficiency services to the commercial market sector. As a starting point, Idaho Power has created a new program focused on commercial construction (new buildings, expansions, or major renovations). Input and recommendations were solicited from the Energy Efficiency Advisory Group during 2004. The target for this program will be Schedule 7 and 9 customers in Idaho. The primary focus of this new program will be on lighting and air conditioning efficiency measures that will have the greatest impact on summer peak. The program development activities started in mid-2004 with the assistance of an outside consultant to help define initial direction. Full-time staff was hired December. The current plan is to have this program ready for customer participation in the second quarter of 2005. Beginning in October 2004, Idaho Power partnered with the Northwest Energy Efficiency Alliance and the University of Idaho to open the Integrated Design Lab in downtown Boise. This facility will provide day-lighting design modeling and other energy efficiency advice to local developers and design professionals. RESULTS In addition to the opening the Integrated Design Lab, results in 2004 include obtaining internal approval to proceed with this program and hiring staff to manage the program development and implementation. NEXT STEPS In 2005, the company will finalize program details, market the program to commercial developers and to the design community (architects and engineers), and manage the incentive application process. The goals for 2005 are energy savings of 389 000 kWh/year and a peak demand reduction of 100 kW. .. ... ... .. ....-. ... . . aSirDMEftRROGlmMS OREGON COMMERCIAL AUDIT (SCHEDULE 82) DESCRIPTION This statutory program requires that all commercial customers in Oregon be notified every year that information about energy saving operations and maintenance measures for commercial buildings is available and that commercial energy audit services can be provided , normally at no charge. Customers using more than 000 kWh per month may receive a more detailed audit but may be required to pay a portion of the costs. RESU L TS In 2004 , there were 18 inquiries about commercial audits, and 10 audits were performed. Employees conducted seven audits, and EnerTech Services carried out three audits on behalf of the company at a cost of $1 200, paid and reflected in 2005 accounting. Idaho Power does not monitor audit recommendation implementation and does not estimate energy savings for this Program. In addition to the annual notification , the company is considering offering our Oregon customers a small business energy saving booklet in 2005. . .... - ... .. ..-.. ....... . . . .. . . 1i!t!.JlI.t...C.USI/QM.E...R.ROG..IlAM. INDUSTRIAL EFFICIENCY PROGRAM DESCRIPTION The primary purpose of this program is to acquire peak kW and kWh savings from projects at industrial customer sites and to assist industrial customers in reducing energy costs. The program is marketed to approximately 300 qualifying customers. The program provides training and education to customers, auditing services for project identification and evaluation , and financial incentives to help with project implementation. Customers are required to identify a project applicable to their own facilities , provide sufficient information to Idaho Power to establish a basis for a viable conservation project and complete an application. The customer also must allow for on-site power monitoring where practical and enter into an incentive agreement. Idaho Power will then review submittals to determine kWh and kW savings and whether the proposal meets other program requirements. It may take up to two years for an industrial custome~ to select a project, budget for it, assemble the project information, allow Idaho Power to analyze it, execute an agreement and implement the project. RESULTS There were four projects completed in 2004 which had a combined savings of 252 533 kWh/yr and total incentive payments of $96 292. Three additional projects are in the installation phase with signed contracts in place. Five additional projects are nearly to the contract signing phase. Idaho Power increased activity in audits and education opportunities in 2004. A total of 15 walk-through energy audits were conducted by company personnel. The businesses participating in these free audits ranged from the food processing sector to the manufacturing sector. In addition two audits were performed for a food processing company by a energy services company. The Industrial Assessment Center from the University of Utah also provided audit services for three food processing businesses. In the training arena , Idaho Power sponsored one Compressed Air Challenge workshop, and one Electric Motor Management workshop for our customers. The company also co-sponsored one Pumping System Assessment Training workshop as well in 2004. NEXT STEPS The program is being significantly revised for 2005 following input from Industrial customer representatives, IPUC staff, and company personnel. Audit funding is being increased and the rules simplified , incentive amounts are being increased and the calculations simplified , and funding for training and education is being increased. addition, beginning on June 1 2005 (pending IPUC approval) Schedule 19 and special contract customers will have the ability to participate in a new self-directed option. Customers who choose the self-directed option will be able to use up to 100010 of the funds that they contribute through the Energy Efficiency Rider for projects at their facilities. The current program goals included in the IRP are for 9 427 000 kWh/yr in energy savings from the industrial sector in 2005. Customers have indicated wide acceptance of the program design and are working toward providing the necessary information to have a viable project. u. . .... . .. ... .. .. ... .. . .. . RI~l:llirCU STOME .RiPROGRAMS DISTRIBUTION EFFICIENCY INITIATIVE PILOT DESCRIPTION The Distribution Efficiency Initiative (DEI) encourages the operation of the distribution system at a lower average voltage, when possible , to reduce consumption of various end-use loads. This research project developed by the Alliance, involves multiple utilities and technologies to evaluate the cost effectiveness of different approaches. This project will also assess the potential effects of this effort by quantifying the achievable energy savings and demand reduction. This approach also has a direct demand response component. During 2004, Idaho Power planned to assist the Alliance in the research and development phase of this pilot. The research and development phase was to consist of an extensive load research and benefit study. Idaho Power s contribution to this phase, expected to occur in 2004, would have included: Assisting in developing customer selections and making customer contacts. Installation of home voltage regulator units. Installation of meters. Through this pilot , the Alliance and Idaho Power expect to determine the energy savings and demand reduction potential through improved voltage regulation providing lower average voltages while maintaining or improving service quality. Because of manufacturing problems of the home voltage regulators , this program was delayed by about 12 months. It was determined that these voltage regulators needed Underwriters' Laboratories (UL) approval and the added time was necessary to obtain the approval. The DEI will continue the research and development phase in 2005. This page left blank intentionally. . ..... .. .. ... ...... . - ... . . CJNi.CU..5:;rO.M..E.R....PRO.G..RA.M .5 IRRIGATION EFFICIENCY PROGRAM DESCRIPTION The Irrigation Efficiency program is an incentive program for agricultural irrigation customers to install more efficient irrigation systems. The program is available to both existing and new customers. Modified systems are reviewed by Idaho Power Agriculture Representatives to determine savings. The amount of the incentive to the customer is calculated by multiplying the kWh savings by $.10 or the kW reduced by $200, whichever is greater. The total incentive is limited to a cap of $5 000 or no more than 25010 of the total costs for existing systems and $3 000 or no more than 10010 of the total costs for a new system. The program provides customers with information and education through annual workshops across our service territory. Idaho Power works with University of Idaho Extension System , the Natural Resource Conservation Service and the Idaho Energy Department (lED) to provide these workshops to customers. Idaho Power Agriculture Representatives provide analysis , energy audits and expert advice to our irrigation customers. To be a direct participant in this program the customer must identify a project on their system, provide sufficient information to Idaho Power to establish a basis for a viable conservation project and complete an application. The customer also needs to enter into an incentive agreement with Idaho Power. This program has been promoted to customers through a direct mailing. In addition Idaho Power has promoted the program with advertisements in agricultural publications and at various agricultural shows across our service territory. Also, Idaho Power Agriculture Representatives periodically meet with agricultural irrigation equipment dealers and promote the program to them. RESULTS Thirty-three payments to customers were made in 2004. This is an energy efficiency program for irrigation customers; therefore, the savings from this program will occur during the summer. Most projects that will make an irrigation system more efficient will also reduce the peak demand of the irrigation system. Idaho Power calculates energy savings for this program by looking at each project specifically. The systems can range from very big to very small. Savings are calculated at each metered service point. NEXT STEPS An expanded version of this program was selected by the 2004 IRP. It is anticipated that this program will be modified in the third quarter of 2005 to increase participation and savings. ... . . . . .. .. ... .. .-.. .. .. ... -.. .. .. . ... . QDECmS~NIiEDUCATIO.NFaNDS SUMMARY In order to be able to respond to research requests, educational opportunities and worthy small projects that are not eligible under other programs, Idaho Power, with support of the EEAG , set aside two funds: the Small Project Fund and the EducationFund. Each was initially funded with 20/0 of the Rider funding which results in approximately $54 000 available for each fund. In 2004, $17 578 was spent from the Small Project fund and $5 834 from the Education Fund. Following is a list of the specific items funded in 2004. SMALL PROJECT FUNDS Building Commissioning on Tumble Time Gymnastics Academy As part of an innovative new building design/construction process , Idaho Power agreed to co-fund the building commissioning process for Tumble Time Gymnastics inBoise. This commissioning ensures that the building lighting, heating, and air conditioning systems were installed and will be operated as designed. This is a smaller facility with complex lighting controls integrated in with their day lighting design. The actual savings from the commissioning exercise will be estimated in the final commissioning reports. Total Cost: $6 500 (out of a 000 total commissioning expense)Sector: Commercial Foothills Environmental Education Center Idaho Power contributed $5 000 and project consultation to improve the energy efficiency of the new Foothills Environmental Education Facility, located in Boise Hulls Gulch Reserve. The funding was used for the installation of a day lighting building feature, a clerestory, and other energy efficiency measures. Idaho Power coordinated design consultation from the Northwest Energy Efficiency s BetterBricks program to assist in heating and cooling enhancements and lighting decisions. Idaho Power also facilitated the installation of a geothermal heat pump, donated in large part, by Water Furnace. In addition to $5 000 paid from Energy Efficiency Rider funds Idaho Power donated solar panels for a future rooftop system and IdaCorp donated a fuel cell. The fuel cell technology demonstration will be the first of its kind in a public facility in Boise. Total Cost: $5 000Sector: Commercial Indirect Evaporative Beta test Idaho Power joined with the Northwest Energy Efficiency Alliance to beta test a new indirect evaporative air conditioner from Desert Cool-air. Funding was requested to perform an engineering study on a potential site in Boise. However, it was not possible to install the unit in the fall of 2004 because of manufacturing difficulties. Idaho Power is planning to continue this study in 2005. Total Cost: $381Sector: Commercial New Head Start Building Idaho Power contributed $2 698 to the new Head Start building in Garden City. This money is provided to offset the costs of installing a high efficient air conditioner that will reduce summer usage by about 8 kW. Other innovative features of this building include natural ventilation, day lighting, hydronic floor heat and the use of sustainable building materials. Total Cost: $2 698Sector: Commercial EDUCATION FUNDS Compressed Air Challenge Workshop In conjunction with the Northwest Energy Efficiency Alliance, Idaho Power sponsored a Compressed Air Challenge Workshop held in Boise on May 25 , 2004. Thirteen attended this one-day workshop which provided customers with information on how to improve their compressed air system performance and lower their energy use. Idaho Power provided a $100 scholarship to any Idaho Power customer who wished to attend, while the Alliance provided a 2-for-1 registration incentive for any company sending more than one attendee. Total Cost: $800Sector: Commercial and Industrial USGBC Conference sponsor Idaho Power was one of several sponsors of a US Green Building Council Idaho chapter kick-off conference on August 24 , 2004 held in Boise. The conference was attended by over 150 people interested in the Green Building/LEED concepts. Total Cost: $250Sector: Commercial One-Five Envinta Energy Diagnostic One-Five Envinta Diagnostics is a survey of executive management corporations to evaluate the climate for successful energy management. Idaho Power paid for one One-Five diagnostic. Total Cost: $2 400Sector: Industrial at large In 2004 This page left blank intentionally. .. .. .. .. . . .... T_INING eIiGGRAMS NORTHWEST BUILDING OPERATOR TRAINING DESCRIPTION Idaho Power, in association with the Idaho Energy Division (lED) and the Northwest Building Operators Association (NWBOA), continues to provide energy efficiency training to building operators from public and private schools , universities, and colleges within Idaho Power s service territory. NWBOA offers two levels of building operator training that ranges from basic principles to advanced techniques in energy efficient building operation. Level I training covers energy conservation techniques HVAC and Air Systems , introduces automatic controls fundamentals and covers energy efficient lighting fundamentals. Level II training covers energy efficient operation of HV AC systems at an advanced level in addition to energy management strategies and conservation methods. Building operators must hold a Levell certification , or take a challenge test, in order to enroll in the Level II certification course. RESULTS In 2004, Idaho Power sponsored Level II training for 26 Idaho school building operators. All of the 26 training attendees completed the course and received certification. Twelve of the 26 building operators actually attended training December 2003; however, the associated training costs were not paid until February 2004. Idaho Power quantifies DSM program participants in the year that the related participation costs are paid by the company. The company paid for registration fees of $550, lodging and meals for each attendee. The participating school districts were required to cover any additional costs associated with attending the training. The total utility cost of the training in 2004 was $43 969, which was funded through the Rider. The Northwest Energy Efficiency Alliance estimates annual energy savings of .5 kWh per square foot of space managed by a certified building operator. Based on the Alliance estimate , and the assumption that each attendee has impact on about 50 000 square feet of building space, the average 2004 attendee will save approximately 000 kWh annually for a combined annual energy savings of 650 000 kWh. addition to the energy savings resulting in bill reductions , the school districts are expected to receive additional benefits from the training in the form of increased comfort in the heating and cooling months. Idaho Power expects that this training will continue to provide a high level of customer satisfaction among this customer segment while providing cost-effective energy savings. . .. ... . .. ETTbNSfOJlMATION NORTHWEST ENERGY EFFICIENCY ALLIANCE Idaho Power accomplishes market transformation programs in its service territory being a member of the Northwest Energy Efficiency Alliance (Alliance) and working to coordinate Alliance activities in Idaho. The Alliance is a regional group whose mission is to catalyze the Northwest marketplace to embrace energy-efficient products and services. In 2004, Idaho Power concluded the fifth year of a five-year funding agreement with the Northwest Energy Efficiency Alliance. The Board of Directors of the Alliance concluded that there was still cost-effective market transformation work to be done in the region and , based upon the effectiveness of the Alliance to capture this resource for the region , agreed to request support from all of the funders and other interested parties to continue in operation for another five years. In order to evaluate whether Idaho Power should continue funding the Alliance, Idaho Power worked with the Energy Efficiency Advisory Group to look at the cost- effectiveness of the energy efficiency savings in the Idaho Power service territory resulting from Alliance efforts. Idaho Power evaluated the cost of funding the Alliance with the benefit of the energy savings coupled with the benefit of lowered administrative costs resulting from the Alliance s support. The overall analysis showed the Alliance is a cost-effective resource. Idaho Power management recommended continued funding of the Alliance and the Energy Efficiency Advisory Group (EEAG) also generally supported continued funding. Therefore , Idaho Power entered into a five-year funding agreement with the Alliance for 2005-2009. Continued funding of the Alliance by Idaho Power is contingent upon receiving favorable rate treatment by the Idaho Public Utilities Commission. Idaho Power has proposed future funding of the Alliance be included in the Idaho Energy Efficiency Rider. Idaho Power will be working with the Oregon PUC on funding the Alliance during the next five years. In 2004, Idaho Power paid $1 244 790 to the Alliance on a system basis. Idaho share of the payments was $1 188 774 (95.5010) and Oregon s was $56 016 (4.5010). These amounts do not include other costs to participate in the Alliance such as employees' time and travel that were absorbed by the company in its general operating expenses. In Idaho, funding for Idaho Power participation in the Alliance was authorized through 2004 by Order No. 28333 in Case No. I PC-99-13. The Oregon Public Utility Commission has also approved the company s expenditures for the Alliance for 2004. Preliminary estimates reported by the Alliance indicate that Idaho Power s share of regional market transformation MWh savings for 2004 is 15 593 which is 1.78 MWa. Idaho Power relies on the Alliance to report the energy savings and other benefits of the Alliance s regional portfolio of initiatives. Highlights of the Alliance s activities in Idaho in 2004 include: Idaho Power is partnering with the Alliance and the Idaho Energy Division to operate the ENERGY STARCB) Homes Northwest program. Idaho was one of three "quick start" or pilot areas in the Pacific Northwest with this program. The Alliance provided the primary support for the establishment of an Integrated Design Lab in Boise that opened October, 2004. The BetterBricks advisors provided multiple trainings in the Idaho Power service territory and organized an effort to explore how High Performance School construction may develop in Idaho. The breadth of the Alliance portfolio can be found at www.nwalliance.orq -. . .. ... .... ... . .. . . ,",p . . ~cJ:~~JI;Jr;$(I;I3~fi. The Energy Efficiency Advisory Group was formed in May 2002 to provide input on formulating, implementing and evaluating energy efficiency and demand reduction programs , which are funded by the Energy Efficiency Rider. The EEAG consists of about 18 members across Idaho Power service territory and the Northwest. Members span a cross-section of customers including residential , industrial commercial , irrigation , the elderly, low income , state agencies, the environment , the IPUC, and representatives from Idaho Power. In 2004, the Energy Efficiency Advisory Group met January 14, April 14 , July 14 , and October 20. In the meetings, Idaho Power provided a status of the Idaho Demand Side Management (DSM) Rider funding and expenses, provided updates on on-going programs and projects, requested recommendations on new program proposals and provided information to the group on DSM issues. One new member was added to the group in 2004 from the Twin Falls area. This person was selected in order to maintain representation from customers and groups across our service territory. Meeting minutes and other meeting materials are provided to all EEAG members, including Idaho Public Utilities Commission (IPUC) staff, and are available upon request. There were several larger issues reviewed by the EEAG in 2004. These include the renewal of Idaho Power funding of the Northwest Energy Efficiency Alliance for the next funding cycle, 2005-2009; the selection of six major DSM programs in the 2004 Integrated Resource Plan , and the subsequent funding increase proposal for this higher level of DSM expenditures through a Rider increase. ENERGY EFFICIENCY ADVISORY GROUP RECOMMENDATIONS Following is a review of the direction provided to Idaho Power by EEAG for major program or research expenditures and general policy or operational issues. IRRIGATION PEAK CLIPPING PILOT PROGRAM (PEAK REWARDS)...................... Idaho Power presented a proposal to the EEAG during the January meeting to conduct a irrigation peak clipping pilot program during the summer of 2004. The pilot would reduce summer demand by installing timer switches on customer irrigation facilities that would automatically turn equipment off during prescribed hours of the week. The EEAG had the following guidance: There were several different suggestions for how to structure hours of operation. Some members suggested increasing the hours of clipping to more that four per day; others were more cautious and wanted to stay with four hours per day. Idaho Power implemented the program with four-hour interruption period per day. ~ A suggestion was made to provide a tiered incentive to the number of hours interrupted. Idaho Power implemented tiered incentive structure where the customer could get higher incentive when selecting to interrupt two or three days week instead of one. There was a suggestion to allow the farmer to select the number of hours interrupted. Idaho Power did not provide complete flexibility; instead as a way to keep the program administratively manageable, the company offered three options per service point. Many suggestions centered on providing education to farmers. Idaho Power mailed individual packets with tailored offerings to potential customers, described the programs during workshops and shows, and also provided one-on-one explanations for customers. Several members suggested that the company implement a full-scale program instead of a pilot in 2004. In order to determine the cost-effectiveness of the program and the best implementation practices, Idaho Power chose to conduct pilot in 2004 in combination with rigorous evaluation. Due to the 2004 pilot success, the peak clipping pilot expanded into full scale program in 2005. There was a suggestion to put some burden on participants to bear the cost of opting out of the program before the season was over. Idaho Power instituted $100 opt-out fee based on this recommendation. EEAG expressed a general consensus to move ahead with this pilot program. In late spring, Idaho Power solicited EEAG input during a conference call discussing early low participation rates. During the summer, Idaho Power conducted a pilot program and the pilot results were presented to EEAG during the October meeting. PEAK DEMAND REDUCTION ASSESSMENT STUDY .............................................. During the January EEAG meeting, Quantum Consulting, a consultant to Idaho Power, presented findings of the Peak Demand Reduction Assessment study. This study estimated the DSM peak reduction potential in the residential and commercial sectors in the Idaho Power service territory. Idaho Power used this information as DSM option inputs to the 2004 Integrated Resource Plan (IRP). During the April EEAG meeting, Idaho Power proposed that this study be expanded to include an energy efficiency assessment in the commercial and residential sectors as well as the peak demand assessment. The group supported proceeding with the expanded study. The final report of the expanded study was presented to the EEAG during the October meeting. Idaho Power contracted with Quantum Consulting to expand the study. COMMERCIAL SECTOR UMBRELLA PROGRAM .................................................... During the April meeting, Idaho Power proposed an overall Commercial sector umbrella effort addressing both new and existing customers. The proposal included technical and financial assistance as well as efficiency information and targeted demonstration efforts. It was discussed that the IRP was , at that time, analyzing new and existing commercial DSM options. This umbrella effort could be expanded or reduced depending upon funding. Several suggestions were made by the EEAG: ~ A suggestion was made that commissioning and retro-commissioning be evaluated and included in the program. Idaho Power will assess these measures in the final program design. ~ A few members suggested exploring shared staffing with other energy efficiency entities in the state. Idaho Power has hired one full-time staff for this program and will work closely with other state entities to leverage efficiencies in program implementation. It was recommended that incentives be provided only for measures exceeding the existing commercial code. Idaho Power will use, at minimum, the existing commercial code as a baseline for determining measure savings. Another suggestion was to consider including investment grade audits as a part of the program. Idaho Power will assess whether to include audits in final program design. The group generally agreed to go ahead with the program as proposed to be expanded if chosen by the I RP. The 2004 IRP selected the new commercial option for implementation, and Idaho Power will be launching that program in the first half of 2005. The existing construction commercial program was not selected in the 2004 IRP and will be re- evaluated at a later time. RENEWAL OF NORTHWEST ENERGY EFFICIENCY ALLIANCE................................. During the July meeting, Idaho Power presented a cost-effective analysis of the Northwest Energy Efficiency Alliance using 2003 costs and benefits along with other information on Alliance activities. With the EEAG endorsement, Idaho Power proposed to renew funding for the Alliance for the next five-year funding cycle. All members were asked to support the following statement: By endorsing NEEA (the Alliance), you are stating that you believe NEEA provides value to IPCo s customers and you are willing to support funding necessary for IPCo continued participation in NEEA. After a long discussion, eight of the 12 available EEAG members were willing to agree with the above statement. Four members needed more information. Idaho Power sent more detailed information to those members. Subsequently, 10 members endorsed continued funding, one member endorsed funding in part, and one member decided to remain neutral. AIR CONDITIONING CYCLING PILOT............................................................... During the October EEAG meeting, Idaho Power presented preliminary findings of the 2004 AIC cycling pilot and indicated plans to file a full program with the IPUC. Although full plans were not available at the time, the following suggestion was received: Idaho Power should work with builders in the future to add a switch during construction of new homes. At this time, Idaho Power is focusing on existing customers for this program but will examine this suggestion in the future. Idaho Power filed an application with the IPUC and plans full implementation of this program in 2005. Low INCOME WEATHERIZATION (LIWA) INCREASE....................................... The Idaho Public Utilities Commission (IPUC) Order No. 29505 , issued May 25 , 2004 in Case No. IPC-03-, directed Idaho Power to increase funding of the Low Income Weatherization Assistance program (LlWA) by $1 000 000 , increasing the funding from approximately $212 000 to $1 212 000 per year. Costs associated with LIWA are recovered through base rates and are not funded by the Rider. Idaho Power presented EEAG with an update on changes made to the LIWA program as a result of discussions with CAP agencies and the impact of funding increases of the LIWA program during the July meeting. INDUSTRIAL PROGRAM MODIFICATIONS (SCHEDULE 19) ................................. In Order No. 29505, the IPUC directed Idaho Power to work with Schedule 19 customers to develop a proposal for a DSM program that allows Schedule 19 customers to determine appropriate energy conservation improvements to their own facilities and receive matching funds from their contributions to Energy Efficiency Rider program to install the improvements. Idaho Power convened a sub-set of EEAG members, along with other industrial customers and representatives , including IPUC staff to work in designing a program for the Schedule 19 customers. Using the Industrial Efficiency Program as a base to start, Idaho Power received the following recommendations: Simplify the incentive qualification process. Idaho Power eliminated two of the four criteria in the process in order to create more easily understood qualifying process while still maintaining desired controls. Eliminate the one-year payback criteria. Upon review of the actual payback levels of recent participants as well participants in previous industrial programs, Idaho Power eliminated the two- year payback criteria for trial period of one year. At the end of this period Idaho Power will determine if the payback criteria needs to be reinstated to reduce free riders. Increase education opportunities. Idaho Power increased the focus and budget for workshops and information venues. Offer audits. Idaho Power added two audit features to the program. Offer self-direction of funds. Idaho Power created an option for customers to self-direct their funds and requested commission approval of this option in its filing, requesting an increase in Rider funding (Case No. IPC-O4-29). These changes to the Industrial Efficiency Program are contingent upon receiving increase Rider funding. Idaho Power is implementing this program as part of the 2004 IRP. IDAHO DSM RIDER INCREASE PROPOSAL... ... .......... ... ...... ....... ....... .... ........... Idaho Power discussed the plans and rational for proposing an increase in the Energy Efficiency Rider with the EEAG at both the July and October meeting. The Rider increase is necessary to implement the level of DSM selected in the 2004 RP and to fund continued participation in the Northwest Energy Efficiency Alliance. This page left blank intentionally. . .. .... ... . . .. . .. . . ... . .IIiEGIJI.:1\11DRVARPENDIX This report satisfies the reporting requirements set out in IPUC Order No. 29419 dated January 14 , 2004. This Order combines the two previous reporting requirements: the annual Conservation Plan (Order No. 22299) and the annual DSM Plan (Order No. 29026). Also included is information to respond to the reporting requirements under Order No. 29702 (AIC Cycling Program) and Order No. 29505 (Low Income Weatherization Assistance Program). This page left blank intentionally. Energy Efficiency Rider and BPA Accounts 2004 Beginning Balance January 2004 (carry over) Funding + Interest 2004 Subtotal $ 3 273 891 $ 2 687 340 $ 5 961 231 End of 2004 Balance 222 670) $ 4,738,561 Expenditures - Idaho Rider Programs Beginning Balance January 2004 (carry over) Funding + Interest 2004 Subtotal $ 653 139 $ 552 724 $ 1 205 863 Expenditures - BPA Conservation & Renewable Discount (C&RD) End of 2004 Balance 949 255,965 Expenditures for Energy Efficiency in 2004 Program ram Cate ory endin Idaho Tariff Rider Air Conditioning Cycling Pilot 273 973 Irrigation Peak Clipping 319,424 ENERGY STAR Homes Northwest 129 825 Commercial Building Efficiency Program 821 Air Care+ Pilot Industrial Efficiency Program 187 473 ** Irrigation Efficiency Program , 188 School Building Operator Training 969 Small ProjecU Education Funds 449 EEAG Meetings 448 DSM Analysis & Accounting and Administration 138 249 Misc. Expenditures 779 Subtotal 222 670 BPA Conservation & Renewable Discount (C&RD) Rebate Advantage (Energy Efficient Manufactured Home Incentive)946 Energy House Calls (Manufactured Home Energy Check-Ups)724 556 BPA Supplemental LlWA and Administration 409 Other C&RD Administration 103 987 Subtotal 949 898 Northwest Energy Efficiency Alliance Idaho 1 188 774 *** Oregon 016 Subtotal 1 ,244 790 Low Income Weatherization Assistance (LlWA) LlWA - Idaho 495 664 LlWA - Oregon 13,469 Subtotal 509 133 Oregon Programs Oregon Residential Weatherization (Schedule 78)057 Oregon Commercial Audits (Schedule 82) Subtotal 057 Other DSM Costs and Administration Subtotal 276 900 Total DSM Expenditures 204,448 * Program spending does not include administrative costs of existing Idaho Povver personnel and may differ from the Total Utility Cost in the Data Appendix; hovvever, administrative costs are included in line items and thus included in the Total DSM Expenditures. ** Includes payments for projects completed in 2004, but paid in 2005 *** Reflects a January 2005 update in the spending for ID and Oregon in 2004. Cu r r e n t DS M P r o g r a m A c t i v i t y 20 0 4 Pa r t i - Fu n d i n g 1 1 c i p a n t s Co s t s Sa v i n g s Me a s u r e Li f e No m i n a l Le v e l i z e d C o s t s Pr o g r a m s Fu n d i n g To t a l U t i l i t y Nu m b e r I pe n d i t u r e s Co s t 2 (d o ll a r s ) -- - - ' - d o ll a r s ) To t a l Re s o u r c e Co s t 3 (d o l l a r s ) Su m m e r Av e r a g e Pe a k De m a n d 4 D e m a n d 5 (k W a ) Ye a r s No t e s Re b a t e A d v a n t a g e ID I O R BP A 10 5 $5 1 94 6 $5 2 , 18 7 $1 7 8 71 2 33 2 58 7 $0 . 01 0 $0 . 03 5 EN E R G Y S T A R H o m e s N o r t h w e s t Ri d e r $1 2 9 82 5 $1 4 0 , 16 5 $3 3 5 , 4 3 7 10 1 20 0 12 5 $0 . 09 9 $0 . 23 7 En e r g y H o u s e C a l l s ID / O R BP A 70 8 $7 2 4 , 55 6 $7 2 5 , 73 2 $7 2 5 , 73 2 34 9 , 78 3 26 8 $0 . 02 6 $0 . 02 6 Or e g o n R e s i d e n t i a l W e a t h e r i z a t i o n ( S c h . 7 8 ) Ba s e R a t e s 05 7 $1 , 05 7 05 7 No t e s : a) O r e g o n s t a t u t o r y p r o g r a m . T h e c o m p a n y d o e s n o t m o n i t o r w h i c h a u d i t r e c o m m e n d a t i o n s a r e i m p l e m e n t e d a n d d o e s n o t e s t i m a t e s a v i n g s f o r t h i s p r o g r a m . b) I n c l u d e s 3 p r o j e c t s c o m p l e t e d i n 2 0 0 4 , b u t p a i d i n 2 0 0 5 . 1. Fu n d i n g i n c l u d e s R i d e r f u n d i n g , B o n n e v i l l e P o w e r A d m i n i s t r a t i o n ( B P A ) f u n d i n g , o r B a s e R a t e s 2. T o t a l U t i l i t y Co s t s = I D P o w e r m o n e t a r y c o s t s as s o c i a t e d w i t h a p a r t i c u l a r p r o g r a m . U s e d i n A p p e n d i x t a b l e s a n d p r o g r a m s u m m a r i e s 3. T o t a l R e s o u r c e C o s t s = To t a l U t i l i t y C o s t s c o m b i n e d w i t h t h e m o n e t a r y e x p e n s e i n c u r r e d b y c u s t o m e r . U s e d i n A p p e n d i x t a b l e s . 4. A v e r a g e D e m a n d = An n u a l E n e r g y 87 6 0 a n n u a l h o u r s 5. S u m m e r P e a k De m a n d i s r e p o r t e d f o r p r o g r a m s t h a t t a r g e t s u m m e r p e a k r e d u c t i o n . . . Hi s t o r i c a l DS M P r o g r a m Pa r t i - Me a s u r e No m i n a l L e v e l i z e d Ac t i v i t 20 0 1 - 2 0 0 4 ci p a n t s Co s t s Sa v i n g s Li f e Co s t s um m e r To t a l Ut i l i t y Av e r a g e Pe a k To t a l Pr o g r a m s Co s t De m a n d De m a n d 4 Re s o u r c e En d - (d o l l a r s ) no t e s Ai r C o n d i t i o n i n g C y c l i n g P i l o t 20 0 3 20 4 $2 7 5 64 5 $2 6 9 68 0 15 9 20 0 4 42 0 $2 8 7 25 3 $2 7 4 68 6 40 2 To t a l $5 6 2 89 8 $5 4 4 , 36 6 Ir r i g a t i o n P e a k C l i p p i n g 20 0 4 $3 2 0 30 9 $1 6 0 60 1 To t a l $3 2 0 , 30 9 $1 6 0 6 0 1 Re b a t e A d v a n t a g e 20 0 3 $3 7 31 9 $7 9 39 9 22 7 , 4 3 4 $0 . 01 0 $0 . 02 2 20 0 4 10 5 $5 2 18 7 $1 7 8 71 2 33 2 58 7 $0 . 01 0 $0 . 03 3 To t a l 17 8 $8 9 , 50 6 $2 5 8 , 11 1 56 0 , 02 1 $0 . 01 0 $0 . 02 8 EN E R G Y S T A R H o m e s N o r t h w e s t 20 0 3 $1 3 59 7 $1 3 59 7 20 0 4 $1 4 0 16 5 $3 3 5 , 4 3 7 10 1 20 0 12 5 $0 . 09 5 $0 . 22 6 To t a l $1 5 3 , 76 2 $3 4 9 , 03 4 10 1 , 20 0 12 5 $0 . 10 4 En e r g y H o u s e C a l l s 20 0 2 $2 6 13 5 $2 6 13 5 98 9 $0 . 08 1 $0 . 08 1 20 0 3 42 0 $1 8 3 65 3 $1 8 3 65 3 60 2 72 3 $0 . 02 5 $0 . 02 5 20 0 4 70 8 $7 2 5 73 2 $7 2 5 73 2 34 9 78 3 26 8 $0 . 02 5 $0 . 02 5 To t a l 14 5 $9 3 5 , 52 0 $9 3 5 , 52 0 97 8 , 49 5 34 0 $0 . 02 5 $0 . 02 5 Or e g o n R e s i d e n t i a l 20 0 1 51 7 70 9 07 3 $0 . 07 7 $0 . 06 9 We a t h e r i z a t i o n ( S c h e d u l e 7 8 ) 20 0 2 11 6 $2 3 97 1 58 0 $0 . 03 4 $0 . 38 2 20 0 3 20 0 4 05 7 05 7 To t a l $9 , 63 3 $3 0 , 68 0 11 , 65 3 $0 . 06 0 $0 . 19 2 Tr a d e I n , T r a d e U p 20 0 3 68 7 $1 0 , 4 9 2 45 4 $0 . 05 0 $0 . 07 9 to E N E R G Y S T A R To t a l $6 , 68 7 $1 0 , 49 2 45 4 $0 . 05 0 $0 . 07 9 CF L L i g h t i n g C o u p o n P r o g r a m 20 0 2 11 , 61 9 $2 4 3 05 4 $3 1 0 64 3 29 9 65 4 37 7 $0 . 01 2 $0 . 01 5 20 0 3 66 3 $3 1 4 64 1 $4 6 4 05 9 59 6 15 0 41 1 $0 . 01 4 $0 . 02 1 To t a l 24 , 28 1 $5 5 7 , 69 5 $7 7 4 , 70 2 89 5 , 80 4 78 7 $0 . 01 3 $0 . 01 8 En e r g y E f f i c i e n c y P a c k e t s 20 0 1 60 8 $8 7 17 5 $8 7 17 5 40 5 12 5 $0 . 03 4 $0 . 03 4 20 0 2 92 5 91 0 91 0 15 5 75 7 $0 . 00 5 $0 . 00 5 To t a l 10 , 53 3 $9 2 08 5 $9 2 08 5 56 0 , 88 2 $0 . 02 6 $0 . 02 6 Hi s t o r i c a l DS M P r o g r a m Pa r t i - Me a s u r e No m i n a l L e v e l i z e d Ac t i v i t 20 0 1 - 2 0 0 4 ci p a n t s Co s t s Sa v i n g s Li f e Co s t s um m e r To t a l Ut i l i t y Av e r a g e Pe a k To t a l Pr o g r a m s Co s t De m a n d De m a n d 4 Re s o u r c e En d - (d o l l a r s ) (k W a ) ($ / k W h ) no t e s Lo w I n c o m e W e a t h e r i z a t i o n 20 0 1 26 6 $3 3 1 12 6 $6 9 2 04 8 As s i s t a n c e I d a h o 20 0 2 19 7 $2 3 1 35 2 $4 9 2 13 9 20 0 3 20 8 $2 2 8 13 4 $4 8 3 36 9 20 0 4 26 9 $5 1 4 31 0 $8 5 9 , 4 8 2 27 1 67 7 14 5 $0 . 03 1 $0 . 05 1 To t a l 94 0 30 4 , 92 2 52 7 , 03 9 Lo w I n c o m e W e a t h e r i z a t i o n 20 0 1 $2 3 67 8 $4 4 17 9 60 , 4 1 2 $0 . 03 0 $0 . 05 6 As s i s t a n c e O r e g o n 20 0 2 $2 4 77 3 $4 7 22 1 32 3 $0 . 02 8 $0 . 05 3 20 0 3 $2 2 25 5 $4 2 33 5 10 2 64 3 $0 . 01 6 $0 . 03 1 20 0 4 $1 4 34 7 $2 5 , 4 5 2 28 , 4 3 6 $0 . 03 8 $0 . 06 8 To t a l $8 5 , 05 3 $1 5 9 , 18 7 23 1 37 8 $0 . 02 8 $0 . 05 2 SP A S u p p l e m e n t a l L l W A 20 0 2 $5 5 96 6 $1 1 8 25 5 31 1 34 7 $0 . 01 4 $0 . 02 9 20 0 3 $4 9 89 5 $1 0 6 91 5 22 3 59 1 $0 . 01 7 $0 . 03 6 20 0 4 $4 9 88 6 $1 0 5 02 1 12 5 91 9 $0 . 03 0 $0 . 06 3 To t a l 17 2 $1 5 5 , 74 7 $3 3 0 , 19 1 53 4 93 8 $0 . 02 2 $0 . 04 7 Hi s t o r i c a l DS M P r o g r a m Pa r t i - Me a s u r e No m i n a l L e v e l i z e d Ac t i v i 20 0 1 - 2 0 0 4 ci p a n t s Co s t s Sa v i n g s Li f e Co s t s To t a l Ut i l i t y Av e r a g e To t a l Pr o g r a m s Co s t De m a n d 3 Re s o u r c e En d - do l l a r s ) (k W a ) ($ / k W h ) no t e s Bu i l d i n g E f f i c i e n c y P r o g r a m 20 0 4 $2 8 82 1 $2 8 , 82 1 To t a l $2 8 , 82 1 Ai r C a r e P l u s P i l o t 20 0 3 $5 , 76 4 97 6 $0 . 02 1 $0 . 03 3 20 0 4 $3 4 4 To t a l $5 7 6 4 Or e g o n C o m m e r c i a l Au d i t s ( S c h e d u l e 8 2 ) Sc h o o l B u i l d i n g O p e r a t o r T r a i n i n g Sm a l l P r o j e c t ! E d u c a t i o n F u n d s To t a l To t a l To t a l To t a l 20 0 1 20 0 2 20 0 20 0 20 0 3 00 0 00 0 20 0 4 To t a l $9 , 20 0 $9 , 20 0 20 0 2 $3 6 , 08 4 $3 6 08 4 20 0 3 $4 8 85 3 $4 8 85 3 20 0 4 $4 3 96 9 $4 3 96 9 To t a l $1 2 8 , 90 6 $8 4 93 7 20 0 3 10 0 10 0 20 0 4 $2 3 , 4 4 9 $2 3 , 4 4 9 To t a l $2 8 , 54 9 $5 , 10 0 20 0 1 92 2 $4 4 9 , 49 6 $8 3 0 , 11 1 20 0 2 94 0 $6 2 9 , 59 0 $1 , 06 4 55 8 20 0 3 13 , 87 9 20 8 , 03 6 $1 , 74 6 , 52 7 20 0 4 73 5 $2 , 46 2 , 49 0 $3 , 59 4 , 29 4 75 0 , 00 0 07 5 00 0 65 0 00 0 82 5 , 00 0 47 2 , 61 0 61 5 , 65 0 91 2 , 76 3 91 4 , 94 7 12 3 20 8 $0 . 01 0 $0 . 01 0 $0 . 01 0 $0 . 01 0 $0 . 01 4 $0 . 01 4 $0 . 01 5 $0 . 01 0 52 7 67 5 90 4 18 9 83 0 En d n o t e s : a. F r o m 2 0 0 1 - 20 0 3 t h e e n e r g y s a v i n g s w a s n o t e s t i m a t e d f o r t h e I d a h o p r o g r a m s i n c e t h i s p r o g r a m w a s f u e l - bl i n d . H o w e v e r t h i s p r o g r a m a l l o w e d s o m e h e a l t h a n d s a f e t y m e a s u r e s , b. E i g h t a u d i t s t o t a l i n g $ 3 2 0 0 w e r e p e r f o r m e d i n 2 0 0 1 a n d p a i d i n 2 0 0 2 . c. O r e g o n s t a t u t o r y p r o g r a m . T h e c o m p a n y d o e s n o t m o n i t o r w h i c h a u d i t r e c o m m e n d a t i o n s a r e i m p l e m e n t e d a n d d o e s n o t e s t i m a t e s a v i n g s f o r t h i s p r o g r a m . d. N o r t h w e s t E n e r g y E f f i c i e n c y A l l i a n c e e s t i m a t e s e n e r g y s a v i n g s a t . 5 k W h / S q . Ft . o f b u i l d i n g o p e r a t i o n p e r p a r t i c i p a n t w i t h a c a p a t 5 0 00 0 S q . Ft . 1. T o t a l U t i l i t y C o s t s - ID P o w e r m o n e t a r y c o s t s a s s o c i a t e d w i t h a p a r t i c u l a r p r o g r a m . U s e d i n A p p e n d i x t a b l e s a n d p r o g r a m s u m m a r i e s 2. T o t a l Re s o u r c e C o s t s - T o t a l U t i l i t y C o s t s c o m b i n e d w i t h t h e i n c r e m e n t a l m o n e t a r y e x p e n s e i n c u r r e d b y c u s t o m e r . Us e d i n A p p e n d i x t a b l e s . 3. A v e r a g e De m a n d = A n n u a l E n e r g y /8 7 6 0 a n n u a l h o u r s 4. Su m m e r P e a k D e m a n d i s r e p o r t e d f o r p r o g r a m s t h a t t a r g e t s u m m e r p e a k r e d u c t i o n . Financial Factors for Demand-Side Management 13;48208 13.82424 14.10591 14.26545 14.40558 14.58447 14.73174 1~t81515 ~7 :2ao~1 17.8331~ 18.61035 19.29975 19.71552 20.09934 20.62052 21.08281 21.3616t Present Value Factor (PVF) for years = Adjustment Factor x (1 - ((1 + Rate) A -n)) + Rate Real Discount Rate = ((1 + Nominal Rate) + (1 + Escalation Rate)) - Nominal Adjustment Factor = (1 + Nominal Rate) A Nominal Timing Factor Escalation Adjustment Factor = (1 + Escalation Rate) A Escalation Timing Factor Real Adjustment Factor = Nominal Adjustment Factor + Escalation Adjustment Factor For timing factors, use 0 for end of period (ordinary annuity), 1 for beginning of period (annuity due), and 0.5 for midpoint. Updated February 2004 This page left blank intentionally. N S U L T l G" L L C LOAD REDUCTION ANALYSIS OF THE 2004 Air Conditioning Cycling Pilot Program Final Report Prepared for Idaho Power Company December 27 2004 Summit Blue Consulting Boulder, Colorado Phone 720-564-1130 CONTENTS Executive Summary .......................................... ................... ...... ......... .............. ......... E- Introduction Background ....................................................................................................... 1- Objectives of the Assignment...... ...... .......... ....... .......... ......... ................ .... ..... 1- Load Reduction Analysis Load Impacts.......... ....... ... .......... .................. ................ ......... ...... ..... .................. 2- Net kWh Impacts ............................................................................................... Effect on Internal Termperature .............................................................. 2- Conclusions and Recommendations ...................................................... 2- Summit Blue Consulting 2004 Idaho Power Evaluation Final Report EXECUTIVE SUMMARY On March 17 2003 , the Idaho Public Utility Commission approved Idaho Power Company (IPCo ' s) request to conduct the Program to test potential summer peak load reduction over two summer seasons, 2003 and 2004. This report presents the results of the load reduction analysis of IPCO's Air Conditioning Cycling Pilot Program (the "Program ) for the summer of 2004. Similar to Summit Blue Consulting s (SBC's) analysis of the 2003 season, this analysis used statistical modeling approaches that related metered electricity usage to weather conditions and the cycling event. Several models were developed which investigated: What effect did cycling have on reducing and/or shifting load? Does AlC cycling reduce overall kWh, or simply shift usage to non-cycling hours? And thus, what is the net effect on energy? Does AlC cycling affect the internal temperature of participant's houses? The models used in this load reduction analysis of the Pilot Program have shown the following: The Program does produce substantive and measurable effect on AlC load during cycling periods: When the outside temperature exceeded 950, 67% cycling produced a savings of 1.32 kW for switches and 1.26 kW for thermostat participants. 50% cycling produced 1.16 kW for switches and 0.86 kW savings for thermostat participants. When the outside temperature was between 900 and 950 67% cycling produced a savings of 0.89 kW for switches and 0.92 kW for thermostat participants. 500/0 cycling produced savings of 0.81 kW for switches and 0.77 kW savings for thermostat participants This reduction in AlC load during cycling results in participants shifting AlC usage to non-cycling periods. Overall, this results in a slight net decrease in kWh usage of 0. kWh during a typical cycling day. Cycling does increase the internal temperature of the homes, particularly in the last hour of a cycling period. However, this effect is relatively small, averaging less than 20 Based on the results of this analysis, the analysis of the 2003 program, and SBC's previous experience with similar AlC cycling programs throughout the country, we have developed the following list of recommendations: Using AlC run-time loggers are a viable and cost-effective alternative to whole premise and end-use demand meters. However, some end-use meters are necessary to calibrate percentage on data from the loggers to kW demand. Summit Blue Consulting 20041PCO AlC Pilot Draft Final Report Efforts should be made to ensure the performance of the programmable thermostats. This analysis found thermostat customers who were not controlled when they should have been, controlled when they should not have been , early termination of the cycling event (3 hours instead of 4 hours), and delayed starts during control periods. None of this behavior was found in the participants with switches. When these problematic cases where eliminated from the analysis, the thermostat participants had similar kW impacts as participants with switches. A 67% cycling scheme results in a significant decrease in kW savings, while the aggregate effect on the temperature of the house is only 0.270 higher relative to 500/0 cycling. Therefore, IPCo should be comfortable with using this higher cycling rate when the need arises. Summit Blue Consulting 2004 IPCO AlC Pilot Draft Final Report INTRODUCTION This report presents the results of the load reduction analysis of Idaho Power Company s (IPCo s) Air Conditioning Cycling Pilot Program (the Program ) for the summer of 2004. 1 Background on 1 .2 Objectives of the Assignment In this chapter, Section 1.1 contains a brief overview of the Program; Section 1.2 presents the objectives of this evaluation. Background On March 17 , 2003, the Idaho Public Utility Commission approved IPCo s request to conduct the Program to test potential summer peak load reduction over two summer seasons: 2003 and 2004. Summit Blue Consulting (SBC) analyzed the 2003 program in 2003. This report presents the impact assessment of the 2004 cooling season. During the summer of 2004, there were a total of over 100 hours of cycling from June to Augustl Exhibit 1-1 presents the date and time of these cycling events. In 9 of these events, the participants were cycled for 670/0 during a given half-hour (i.e., 20 minutes off during each half- hour of the control period). On the remaining 21 control days, the units were cycled for 500/0 during a given half-hour (i.e., 15 minutes in each half-hour period). 1 There were several short term (-::::2 hours) cycling events during June 1st and 2nd, which were used to set and test the system. These events were not included in this analysis. Summit Blue Consulting 20041PCO AlC Pilot Draft Final Report Exhibit 1-1: Summer 2004 Cycling Events Date Cycling Start Duration Cycling Time (MDT)(hours) July 2 16:00 50% June 3 15:00 50% June 7 15:00 50% June 8 15:00 50% June 9 14:00 50% June 22 15:00 50% June 23 15:00 50% June 24 15:00 67% June 28 15:00 50% June 30 14:00 50% July 2 14:00 50% July 6 15:00 50% July 8 15:00 50% July 12 15:00 67% July 14 15:00 67% July 16 15:00 50% July 20 15:00 50% July 22 15:00 67% July 27 15:00 50% July 28 15:00 67% August 2 15:00 50% August 4 15:00 67% August 6 15:00 50% August 10 15:00 67% August 12 15:00 50% August 17 15:00 50% August 18 15:00 67% August 19 15:00 50% August 23 15:00 50% August 25 15:00 67% Total 30 events 117 Hours Summit Blue Consulting 2004 ,pca AlC Pilot Draft Final Report 2 Objectives of the Assignment The focus of this evaluation was to conduct a load reduction analysis ("LRA") of the Program during the summer of 2004. The purpose of the analysis was to address the following issues: What effect did cycling have on reducing and/or shifting load? Does AlC cycling reduce overall kWh, or simply shift usage to non-cycling hours? What is the net effect on energy? Does household temperature change in response to cycling? To address these issues, the LRA used the following data: Interval whole-house metering data (from load research meters) for 174 participating household End-use (Air Conditioner) demand meter data for 34 participants Data from Air Conditioner run-time loggers for 76 customers. Hourly temperature and humidity data spanning the entire summer. Records of cycling dates, intervals, and duration (Exhibit 1-1). Hourly internal home temperature readings downloaded from participants ' thermostats. Summit Blue Consulting 2004 IPCO AlC Pilot Draft Final Report LOAD REDUCTION ANALYSIS iWfttEWi1WNI'iWWijWSS1f:WM;M'M Load Impacts 1 Load Impacts 2 Net kWh Effects 3 Effect on Internal Temperature 2.4 Conclusions and Recom mendations This chapter presents the results of the load reduction analysis of the AlC cycling pilot program. The simplest approach to determining impacts of a cycling day to the average load curve on a similar non-cycling day and AlC cycling program is to compare the average load curve on the cycling day to the average load curve on a similar non-cycling day. One problem with this method is that it may be difficult to obtain a non-cycling day that matches the conditions of the cycling day. In addition, this straightforward sampling approach using a sample of interval meters is unlikely to produce high levels of accuracy. Instead, a slightly more sophisticated approach is needed to produce levels of precision on which capacity and energy payments can be justified. This is where the increase in precision of the fixed-effect model used in this analysis is superior to other approaches. As an illustration, suppose a recent evaluation of a direct load control program for air conditioners in the Western United States produced a mean impact estimate ofO.71kW per participant. There were a total of 600 participants in the program and metered data were obtained on a sample of 50 participating customers. The standard deviation for this sample was 1.01 kW. The reason the standard deviation is so large is that approximately 35 percent of the participants had zero or minimal impacts from the program on control days, i., their AC unit was shut off on that day, either because they were on vacation or because they were "free-riders" and typically turned off their AC units during the day. The number of participants with near zero impacts results in a bimodal distribution with a large variance and standard deviation for the sample. A 90 percent confidence interval with a standard deviation of 1.01 yields a confidence interval of +/- . 24 kW or +/- 34 percent using the representative day approach calibrated to same day loads and temperatures. This level of precision is common for this method and is generally accepted in regulatory proceedings, but in some cases additional accuracy can be important. For example, if the load impacts were part of a DR program with a regional reliability organization, it may not be quite accurate enough for a settlement agent or to create a viable hedge product that can be used as a tradable product in bilateral or even internal corporate transactions for capacity and reserves. SBC's preferred approach is to directly model kW load, rather than relying upon simple or calibrated representative day comparisons , or on approaches that model duty cycles as a stand- alone estimation method. In this approach, the measured hourly kW load is the dependent Summit Blue Consulting 2004 IPCO AlC Load Control Final Report variable in a regression equation that includes weather terms, household demographics appliance holding, and the cycling event. In essence, a structural model of the AlC load is developed. The impact of the cycling is simply the coefficient on the cycling variable. This approach is intuitively appealing, and has produced very precise estimates of program effects. This analysis further refines this approach by using pooled time-series and cross-sectional data (panel data). That is, all hourly observations over the summer for all households are combined into the one model. In order to capture differences across households, the model includes a constant term that is specific to each household (termed a fixed-effects model). This constant term captures the effect on hourly AlC load of all the variables that do not change over time. Thus, this model indirectly controls for such things as the orientation of the house, the size of the house, and the characteristics of the AlC unit itself. The first question addressed by this analysis is what effect cycling has on the load shape of participating households. Exhibit 2-1 graphs the average load shape across all participants for the 50% and 67% cycling days in July to the average non-cycling days. Clearly, the program does affect the average load shape, with a drop in consumption during the cycling period. This Exhibit also suggests that there may be an increase in consumption after the cycling period - the snapback" effect. This effect will be investigated in the next section. Exhibit 2-1: Average cycling load shape vs. non-cycling load shape Average Control and Non-Control Days in July ... ::J~ 2. C1) f! 1. C1) Average non-control days --Ii- Average 50% control days --.\- Average 67% control days 13 15 17 19 21 Hour of the Day In order to quantify the impacts of the Program, a fixed-effect panel data model was used that combined weather data with the interval meter data. For this analysis, data are available both across households (i., cross-sectional) and over time (i., time-series). The fixed effects model Summit Blue Consulting 20041PCO AlC Load Control Final Report can be viewed as a type of differencing model in which all characteristics of the home, which (1) are independent of time and (2) determine the level of hourly electricity use, are captured within the house-specific constant terms. In other words, differences in housing characteristics that cause variation in the level of energy consumption, such as building size and structure, are captured by constant terms representing each unique house. Algebraically, the fixed-effect panel data model is described as follows: Yit ai fJxit cit Where: Yit = C energy consumption for home during hour ex; = constant term for home j3 vector of coefficients Xii vector of variables that represent factors causing changes in AC consumption for home during hour (i., weather and control strategies) Cit error term for home during hour This hourly demand model was estimated over all metered participants during the months of June through August. In order to combine the data from the load resear~h meters, the end-use demand meters, and the AlC run-time loggers , SBC used the data from customers who received all three meters to calibrate the run-time data from the loggers into kW demand. Thus, it was possible to include all the different meter types into a single regression equation. In estimating the regression equation, it was found that the initial results for thermostat customers were not accurately reflecting the program s impact. Upon investigating the log files from the thermostats, SBC found thermostat customers who were not controlled when they should have been, controlled when they should not have been, early termination of the cycling event (3 hours instead of 4 hours), and delayed starts during control periods. None of this behavior was found in the participants with switches. There was no consistent pattern in these errors across time or over customers. Therefore, in order to ensure that the thermostat data was accurate, those observations where the AlC units were clearly not controlled during the control event (i.e., their usage was 3.0 kW or more) were eliminated from the analysis. Exhibit 2-2 presents the estimated panel model used to determine the effect on hourly kW usage associated with AlC cycling. The weather variables include the current hour temperature and humidity as well as non-linear temperature terms (to capture the non-linearity of AlC usage as the temperature increases), and lagged weather variables to capture building thermodynamic effects. The model also uses indicators for afternoon (1 pm to 8 pm) to capture general daily usage patterns. Summit Blue Consulting 2004/PCO AlC Load Control Final Report Exhibit 2-2: Load Impacts Model- dependent variable is hourly kW usage, June 3rd through August 2004. Independent Variable Coefficient t-value (t-value 67% cycling, 90-95 degrees, and customer has a switch 23. 67% cycling, 95+ and customer has a switch 1.32 26. 67% cycling, 90-95 degrees, and customer has a 45. thennostat 67% cycling, 95+ and customer has a thennostat 45. 50% cycling, 90-95 degrees, and customer has a switch 18. 50% cycling, 95+ and customer has a switch 1.16 25. 50% cycling, 90-95 degrees, and customer has a 31.8 thennostat 50% cycling, 95+ and customer has a thennostat 30. Current hour s temperature 117 44. Currant hour s temperature squared 001 65. Previous hour s temperature 017 12. Current hour s humidity 002 Previous hour s humidity 005 10. Indicator for month of June 021 Indicator for month of July 061 12. Indicator for 12:00 006 Indicator for 13 :00 048 Indicator for 14:00 102 Indicator for 15:00 155 12. Indicator for 16:00 176 13. Indicator for 17:00 316 24. Indicator for 18 :00 0.447 32. Indicator for 18:00 542 38. Indicator for 20:00 733 43. Sample Size 211 ,735 (235 sites) R-squared Ignoring individual constants 29. With individual constants 55. The coefficients on the control hour variables indicate the kW savings associated with the program at different cycling amounts and outdoor temperatures. The t-values on all these variables show that the results are statistically significant at the 900/0 confidence level. Exhibit 2- 3 shows the savings estimate for the different cycling and outside temperatures. Summit Blue Consulting 2004/PCO AlC Load Control Final Report Exhibit 2-3: Program Impacts (average kW per hour) Cycling and Temperature Switch Thermostat 67% cycling at 90- 67% cycling at 95+1.32 1.26 500/0 cycling at 90- 50% cycling at 95+1.16 This statistical model shows that the Program does indeed reduce the AlC load during a cycling period. The next question to address is does this AlC cycling reduce overall kWh, or simply shift energy usage to non-cycling hours? In other words, does participant's total energy usage for the day increase (due to snapback) or decrease during days that have AlC cycling? This question is addressed in the next section, 2 Net kWh Effects The previous statistical model confirmed that the Program does result in a reduction of the AlC load during a cycling period. The next question then becomes does this decrease in AlC demand result in an overall decrease in the customers energy (kWh) usage over that day. To address this issue, the statistical model presented in the previous section was expanded to look at hourly effects during the cycling period as well as hours after the cycling period for all cycling strategies at outside temperatures greater than 90 degrees. The estimated coefficients for this model are presented in Exhibit 2- 2 The estimated equation includes the variables to control for weather and time of day that were used in Exhibit 2. For brevity, these coefficients are not included in Exhibit 2- Summit Blue Consulting 20041PCO AlC Load Control Final Report Exhibit 2-4: Net kWh Impacts Model- dependent variable is hourly kW usage, June through August 2003. Independent Variable Coefficient t-value First hour of a cycling event 23. Second hour of a cycling event 32.4 Third hour of a cycling event 33. Fourth hour of a cycling event 32. First hour after a cycling event 13. Second hour after a cycling event 32. Third hour after a cycling event 0.48 30. Fourth hour after a cycling event 23. Fifth hour after a cycling event 11.5 Sample Size 281 295 (235 households) R -squared Ignoring individual constants 26% With individual constants 55% This estimated model shows several interesting results. First, the change in AlC load during a cycling period is very consistent for the second, third and fourth hours across the control period at about 0.70 kW. After the cycling event there is a strong increase in electricity usage as the aggregate AlC usage increases to recover the effects of cycling (this is termed "snapback" The net result of cycling on kWh is found by summing the cycling coefficients and the post- cycling coefficients. The result is that energy use has decreased, on average, by 0.89 kWh due to cycling. Thus, cycling appears to shift some usage from cycling hours to non-cycling hours. The net effect on kWh clearly depends upon the cycling percentage and the outside temperature during and after the control event. This statistical model shows that the Program does indeed reduce the AlC load during a cycling period. The afore-mentioned analysis is based on actual results for cycling on actual temperature days. However, the summers of 2003 and 2004 in Boise were not particularly hot, and it may be useful for future dispatchers to estimate kW savings at different cycling rates for hotter temperatures. These estimates are shown in Exhibit 2- Summit Blue Consulting 20041PCO AlC Load Control Final Report Exhibit 2-5: Expected kW Impacts per Household at Different Temperatures. Expected Impacts at Different Temperatures (switches) en 2 m 1. ~f. .~.;\" CI) :::- cc 0. ;;'A:'~"o 50% Cycling 67% Cylcling Temperature The next researchable issue for this LRA is to determine if there are any observable impacts on the internal temperature of participant's houses associated with a control event. This issue is addressed in the next section. 3 Effect on Internal Temperature The previous analyses have shown that the Program produces a significant decrease in AlC load during cycling periods. One question that arises is does this reduced AlC load result in a significant increase in the internal temperature of the home? The hourly internal home temperature readings collected by the programmable thermostats used in the Program were used to address this issue. The results are discussed below. The effect of cycling depends upon the cycling strategy, the length of cycling, the outside temperature, and the thermostat setpoint, among other things. Therefore, in order to understand the change in internal temperature, a regression model must be used to control for non-program influences. Exhibit 2-5 presents the results of a regression analysis undertaken to quantify the effect of the cycling on indoor air temperature. In this model, the average indoor air temperature (for households with thermostats) for each hour was the dependent variable. The independent variables consisted of outside temperature and humidity variables. The effect of the program on indoor temperature was captured by the cycling strategy (50% or 670/0) for each hour during the control period. To capture the delayed effect on indoor temperature from cycling, variables were included which denoted hours that were one, two, and three hours after the cycling period. For simplicity, the Exhibit does not include the coefficients on the outside weather conditions or time of day variables. Summit Blue Consulting 20041PCO AlC Load Control Final Report Exhibit 2-6: Indoor Temperature Model - dependent variable is hourly indoor temperature, June through August 2003. Independent Variable Coefficient t-value Cycle 67% first hour 1.05 Cycle 670/0 second hour Cycle 67% third hour Cycle 670/0 fourth hour 1.56 8.4 Cycle 50% first hour 1.13 Cycle 50% second hour 1.17 Cycle 500/0 third hour 1.16 Cycle 50% fourth hour 1.29 Sample Size 439,554 (143 sites) R -squared Ignoring individual constants 28% With individual constants 35% Exhibit 2-5 shows that during the cycling period, the average indoor temperature for all thermostat participants increases throughout the period, reaching a maximum at the last hour of control. This maximum is 1.60 with 67% cycling and 1.30 with 50% cycling. The clear conclusion is that the effect of cycling on the internal temperature, even during 67% cycling days, is small and is unlikely to be noticed by most customers. To determine how many participants experience a greater- or less-than average temperature change as a result of cycling, further analysis was conducted that looked at the difference between the hourly temperature readings for a single cycling day to the same hours during a similar non-cycling day. The cycling day chosen was July14th (average outdoor temperature during cycling was 970 and 670/0 cycling was used) and the non-cycling day was July 9th (average outdoor temperature during comparable time was also 970). Exhibit 2.6 presents a histogram of the difference between the internal temperatures in each house between the two days (cycling on the 15th began at 16:00 and lasted 4 hours). Summit Blue Consulting 2004 IPCO AlC Load Control Final Report Exhibit 2-7: Distribution of indoor temperature difference among homes, July 13th to July 14th. Temp. Diff.Hour ending 2:00 PM Hour ending 3:00 Hour ending 4:00 PM Hour ending 5:00PM Hour ending 6:00 PM Hour ending 7:00 PM 60 and fewer 60 and greater Average 0.40 % of Homes with:;:.4 degrees temperature gain 1 %120 These results show that there is an increase in indoor temperature during cycling, though this difference is very small, averaging less than 20 . About 12% of homes experienced temperature gains greater than 4 degrees at 7:00 p.m. at 67% cycling. However, this analysis cannot control for the fact that the control day is the second day of relatively high temperatures, so the house would be hotter on average than the previous day even if it was not a control day. Summit Blue Consulting 20041PCO AlC Load Control Final Report 4 Conclusions and Recommendations In conclusion, this load reduction analysis of IPCo' s Air Conditioning Cycling Pilot Program for the summer of 2004 has shown the following: The Program does produce substantive and measurable effect on AlC load during cycling periods: When the outside temperature exceeded 950, 67% cycling produced a savings of 1.32 kW for switches and 1.26 kW for thermostat participants. 500/0 cycling produced 1.16 kW for switches and 0.86 kW savings for thermostat participants. When the outside temperature was between 900 and 950, 67% cycling produced a savings of 0.89 kW for switches and 0.92 kW for thermostat participants. 50% cycling produced savings of 0.81 kW for switches and 0.77 kW savings for thermostat participants This reduction in AlC load during cycling results in participants shifting AlC usage to non-cycling periods. Overall, this results in a slight net decrease in kWh usage of 0. kWh during a typical cycling day. Cycling does increase the internal temperature of the homes, particularly in the last hour of a cycling period. However, this effect is relatively small, averaging less than 20 Based on the results of this analysis, SBC's analysis of the 2003 program, and SBC's previous experience with similar AlC cycling programs throughout the country, we have developed the following list of recommendations: Using AlC run-time loggers are a viable cost-effective alternative to whole premise and end use demand meters. However, some end-use meters are necessary to calibrate percentage on data from the loggers to k W demand. Data from the thermostats again presented challenges, as was the case in the evaluation of the 2003 program. This analysis found thermostat customers who were not controlled when they should have been, controlled when they should not have been, early termination of the cycling event (3 hours instead of 4 hours), and delayed starts during control periods. None of this behavior was found in the participants with switches. When these problematic cases where eliminated from the analysis, the thermostat participants had similar kW impacts as participants with switches. 670/0 cycling scheme results in a significant increase in kW savings, while the aggregate effect on the temperature of the house is only 0.270 relative to 50% cycling. Therefore, IPCo should be comfortable with using this higher cycling rate when the need anses. Summit Blue Consulting 20041PCO AlC Load Control Final Report