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Home My WebLink About200603312004-2005 WAQC (LIWA) reports.pdfIDAHO POWER (ID - , . . (~ i An IDACORP Company MAGGIE BRILZ ' , : " ' i' " "-" i i '. i : , ,-- '- ' ' U. :, " ,); (208) 388-2848 FAX (208) 388-6449 mbrilz(Q).idahopower,com Director, Pricing March 31 , 2006 Ms. Jean D. Jewell, Secretary Idaho Public Utilities Commission P. O. Box 83720 Boise, 10 83720-0074 RE:Report of 2004 and 2005 Weatherization Assistance for Qualified Customers Program Filed in Compliance with Order No. 29505 Case No. IPC-03- Dear Ms. Jewell: Enclosed please find eight copies of Idaho Power Company s report on the 2004 and 2005 activity for the Weatherization Assistance for Qualified Customers program (formerly known as the Low-Income Weatherization Assistance , or LlWA program). If you have any questions regarding the content of the report, please direct them to Darlene Nemnich at 388-2505 or feel free to contact me directly. Sincerely,;?r)~.6~ Maggie Brilz MB:mb Enclosures Ric Gale Bart Kline Jim Baggs Theresa Drake Darlene Nemnich P&RS/Legal Files - . r; ! . ,, " An IDACORP company ~Pc-t:-- 03-(3 April 2006 Background Idaho Power Company (Company) began offering the Low-income Weatherization Assistance (LlWA) program in 1989 in conjunction with the State of Idaho s Weatherization Assistance Program. Through the LlWA program , the Company provides supplementary funding to state designated Community Action Partnership (CAP) agencies for the weatherization of homes occupied by qualified low-income customers as well as buildings occupied by non-profit organizations. Currently, the Company administers the program through five Idaho regional CAP agencies including Canyon County Organization on Aging and Community Services (CCOA), Eastern Idaho Community Action Partnership (EICAP), EI - Ada Community Action Agency (EI - Ada), South Central Community Action Partnership (SCCAP), and South Eastern Idaho Community Action Agency (SEICAA). In January of each year, the Company renews its contract with each agency detailing the funding allotment, billing requirements and program guidelines for both qualifying homes and non-profit organizations. LlWA has gone through several changes since its inception in 1989. Most recently, significant program modifications were made in 2004 following the issuance of the Idaho Public Utilities Commission (Commission) Order No. 29505 in May, 2004. In its Order, the Commission directed the Company to increase annual funding for LlWA by $1 000,000 through June 2007. The Commission also directed the Company to carry forward to the following year any unpaid funds; to negotiate with Community Action Partnership Association of Idaho (CAPAI) regarding structural modifications to the program; and to report annually on LlWA program activities in a separate document from the Company Demand-Side Management Annual Report. Shortly after to the Commission issued its Order No. 29505 , the Company entered into discussions with CAPAI and its member agencies to negotiate several modifications to the LlWA program. The agreed upon program modifications were reviewed by the Energy Efficiency Advisory Group and included in a report filed with the Commission on October 1 , 2005. The structural changes more closely aligned the Company s program with the State of Idaho s Weatherization Assistance Program specifications and allowed the CAP agencies to more effectively administer the program. The Company signed new contracts with each of the CAP agencies effective August 1 , 2004. The new contracts served to allocate the increased funding as well as to put into process the program modifications. In addition to these contract modifications , the Company implemented several internal changes related to program operation. The invoice payment process was automated and enhancements were made to the Company s program database. A new program specialist primarily dedicated to overseeing the operation of this program was hired in 2004. Also , in 2005 the program was renamed Weatherization Assistance for Qualified Customers (WAQC) to provide more sensitivity to customers with special needs. This report responds to the Commission s reporting directive with the following sections: Review of Weatherized Homes by County Review of Measures Installed Overall Cost-effectiveness Customer Education Plans for 2006 Review of Weatherized Homes by County In 2004, the Company provided a total of $479 380 to Idaho CAP Agencies with $439 204 directly funding energy efficiency measures and $40 177 funding the administration costs incurred by the CAP agencies. An additional $16 284 was provided to the agencies for weatherization of building structures occupied by non-profit organizations. In 2005, the Company provided a total of $1 ,243 001 to Idaho CAP agencies with $1 130 001 directly funding energy efficiency measures and $113 000 funding the agencies' administration costs. An additional $54 382 was provided to the agencies for weatherization of buildings occupied by non-profit organizations in 2005. The total number of homes weatherized in 2004 and 2005 were 290 and 565 respectively. There were four non-profit weatherization projects in 2004 and five non-profit projects in 2005. Canyon County had the most homes weatherized in 2004 at 65, and Ada County had the most homes weatherized in 2005 at 238. This information is detailed in Tables 1 and 2. In an effort to help the CAP agencies maximize the number of customers served under the program the Company includes a provision in each of its contracts with the agencies specifying an annual average project or job cost maximum. The CAP agencies are required to have a year-end job cost average that is less than, or equal to, the average job cost maximum stated in the contract. The average job cost is calculated as the total annual cost of weatherization jobs excluding a 10% administration fee, divided by the total number of jobs completed in the year. In 2004 , the contracted maximum average job cost was $2 000; in the 2005 contracts it was increased to $2 060. However based on requests from agencies , the average job cost maximum was again increased in May 2005 to 200. For 2004 , SCCAP had the lowest average job cost at $1 214 and EI - Ada had the highest with $1 978. The overall average job cost amongst all CAP agencies in 2004 was $1 514 excluding non-profit job costs. The overall job cost average in 2005 was $2 000, with SCCAP again having the lowest average cost at $1 549 and EI - Ada again having the highest average job cost at $2 221 which exceeded the average job cost maximum. In early 2006, the Company began working with EI Ada to assist the agency in monitoring its average job cost. Prior to program restructuring in August 2004, the Company paid $75 per job to help offset the administration costs incurred by the CAP agencies. As part of the program restructuring, the Company agreed to pay all CAP agencies an administration cost equivalent to 10% of the cost for each job. This change was part of the effort toward aligning the Company s program with the State of Idaho s Weatherization Assistance Program specifications. The average administration cost per project in 2004 was $139 and in 2005 it was $200. Table 1. 2004 Weatherization Activity - Customer Dwellings and Non-Profit Agencies Measure Expense Administration Total #of Total All Jobs Average Job Jobs Expense Cost per Unit ExDense Expense Customer Dwellin~ Units Agency County CCOA Adams 188 094 $419 607 Boise $21 257 932 087 $23 344 Canyon $96 004 477 753 $104 757 Gem 930 386 $699 630 Payette 287 $572 $300 587 Valley 726 $931 $373 099 Washington $3,566 783 $357 $3,923 CCOA TOTAL $137,958 483 $12,988 $150,945 EICAP Lemhi $7,705 541 $734 439 EICAP TOTAL $7,705 541 $734 439 EI - ADA Ada $102 606 973 296 $111 902 Elmore $15 851 264 585 $17,436 Owyhee $12 092 727 138 $13,231 EI-ADA TOTAL $130,549 $1,978 $12 019 $142,569 SCCAP Blaine Cassia $2,044 044 $204 249 Gooding $10 392 $866 039 $11,431 Jerome $25 677 975 184 $27 861 Lincoln Minidoka Twin Falls $62 652 099 584 $68 236 SCCAP TOTAL $100 766 $1,214 $9,011 $109,776 SEICAA Bannock $34 730 $1,447 $2,978 $37 708 Bingham $17 051 $1,421 401 $18,452 Power $10,446 492 045 $11 490 SEICAA TOTAL $62 227 $1,447 424 $67,651 Total Customer Dwelling Units 290 $439,204 $1,514 $40,177 $479,380 Non-Profit Units Lemhi $520 $52 $572 Lincoln 577 $958 $10 535 Twin Falls 578 $75 653 Bannock 525 525 Total Non-Profit Units $15,200 085 $16,284 TOTAL 2004 - All Units 294 $454,404 546 $41,261 $495,664 Please note that the numbers presented in the tables as whole units may not add due to rounding of fractional values not shown. Table 2. 2005 Weatherization Activity - Customer Dwellings and Non-Profit Agencies Measure Expense Administration Total #of Total All Jobs Average Job Jobs Expense Cost per Unit Expense Expense Customer Dwelling Units Agency County CCOA Adams 544 363 $954 $10,498 Boise $14 587 917 459 $16,046 Canyon $153 106 $2,015 $15 311 $168,417 Gem $11.475 913 148 $12 623 Payette $20,028 225 003 $22,031 Valley 857 929 $386 243 Washington 382 127 $338 $3,720 CCOA TOTAL 108 $215,980 $2,000 $21,598 $237,578 EICAP Lemhi $11 625 661 163 $12 788 EICAP TOTAL $11,625 $1,661 $1,163 $12,788 EI- ADA Ada 238 $519 808 184 $51 981 $571 788 Elmore $51 873 594 187 $57,061 Owyhee $65 635 263 563 $72,198 EI- ADA TOTAL 287 $637 316 $2,221 $63,732 $701,048 SCCAP Blaine 004 004 $200 204 Cassia 388 694 $539 $5,926 Gooding $24 874 $711 $2.487 $27 362 Jerome $45 571 688 557 $50,128 Lincoln 153 038 $815 $8,968 Minidoka 986 662 $799 $8,785 Twin Falls $65 571 115 557 $72 128 SCCAP TOTAL 103 $159,546 $1,549 $15,955 $175,501 SEICAA Bannock $57 899 654 790 $63,689 Bingham $38 586 $1,929 859 $42,445 Power 048 810 $905 952 SEICAA TOTAL $105,533 $1,759 $10,553 $116,087 Total Customer Dwelling Units 565 130,001 000 $113,000 243,001 Non-Profit Units Ada $13 759 $1,376 $15,135 Owyhee $15 290 $1,529 $16,820 Cassia 404 $840 244 Twin Falls 746 $475 $5,221 Bannock 239 $724 $7,963 Total Non-Profit Units $49,438 $4,944 $54,382 TOTAL 2005 - All Units 570 179,439 $2,069 $117,944 $1,297,383 In compliance with the Commission s Order No. 29505, unpaid weatherization assistance funds are tracked and unspent funds carried over and made available to CAP agencies in the following year. Table 3 details, for each CAP agency, the contract funding amount, the contract funding amount plus any carryover funding, and the actual and estimated spending for the years 2004 through 2006. Table 3. 2004-2006 Base and Carryover Funding 2004 CONTRACT YEAR (1/1/04-12/31/04) AGENCY CCOA EICAP EL-ADA SCCAP SEICAA NON-PROFIT Total 2004 2004 Base Fundina $198 551 $8,439 $367 709 $110,449 $74,470 $36 250 $795,868 AGENCY CCOA EICAP EL-ADA SCCAP SEICAA NON-PROFIT Total 2005 2005 CONTRACT YEAR (1/1/05-12/31/05) 2005 BASE Fundina $302 259 $12,788 $568,479 $167 405 $111 603 $50 000 212,534 2006 CONTRACT YEAR (1/1/06-12/31/06) AGENCY CCOA EICAP EL-ADA SCCAP SEICAA NON-PROFIT Total 2006 2006 BASE Fundina $302 259 $12,788 $568,479 $167,405 $111 603 $50 000 $1,212 534 CARRYOVER FROM 2004 $25 606 $225 140 $22 673 819 $19,965 $300,203 CARRYOVER FROM 2005 $90,287 $92 571 $14 577 $2,335 $15 583 $215,354 BASE PLUS 2004 CARRYOVER $327 865 $12 788 $793 619 $190,078 $118,422 $69 965 $1,512,737 BASE PLUS 2005 CARRYOVER $392 546 $12 788 $661 050 $181 982 $113 938 $65 583 427 888 2004 Expense $150,945 439 $142 569 $109,776 $67 651 $16,284 $495,665 2005 Expense $237,578 $12 788 $701 048 $175 501 $116 087 $54 382 297,383 2006 Budgeted Expense $392 546 $12 788 $661 050 $181 982 $113 938 $65,583 $1,427,888 In 2004, SCCAP requested a transfer of $22 000 to complete additional weatherization jobs. CCOA agreed to transfer requested funds to SCCAP in anticipation of not meeting their budgeted allotment for the Year. Review of Measures Installed Tables 4 and 5 detail the number of jobs, the average cost per building weatherized, and the kilowatt- hour (kWh) savings by measure for 2004 and 2005, respectively. Consistent with the State of Idaho Weatherization Assistance Program, the Company offers several measures that have costs but do not save energy. Included in this category are such elements as health and safety, vents, furnace repair and audits. Health and safety measures are necessary to ensure weatherization activities do not cause unsafe situations in a client's home or compromise a household's existing indoor air quality. The other non-energy savings measures are allowed under this program in order to help facilitate the effective performance of those measures yielding energy savings. The measures with the most energy savings in 2004 and 2005 were window and door replacements , ceiling and floor insulation and infiltration measures. Prior to the implementation of the Company s new invoicing process and database development in October 2004 measure detail was available only on hard copy job sheets, minimizing analysis program transactions. Therefore, Table 4 simply provides aggregate costs and savings through the third quarter of 2004. Detailed information is shown for the fourth quarter. Table 5 shows detailed job measure data for the entire year. The kWh savings in 2004 were 1 397 595 and 3 179 312 in 2005. Table 4. 2004 kWh Savings and Measure Expense (excluding Administration) Measure Measure kWh Activity Expense Savings Januarv 1 - September 30 Total for the Period $274 903 913,020 October 1 - December 31 Audit Investment 114 $7,422. Ceilings $21 201.44,144 Doors $18 710.69,442 Ducts $1,463.294 Floors $47 957.73,474 Furnace Modify $435.737 Furnace Repair 855. Furnace Replace $13 244.942 Furnace Tune $1,902. Health & Safety 385. Infiltration $15 287.995 Other $875. Pipes 291.107 Vents $263. Walls $124.946 Water Heater 109.991 Windows $40,979.208,503 Total for the Period $179,501 484,575 Total 2004 $454 404 397,595 Table 5. 2005 kWh Savings and Measure Expense (excluding Administration) Measure Measure kWh Actvity Expense Savings January 1, 2005 - December 31,2005 Audit Investment 530 $49,758 Ceilings 326 $200 371 365,534 Doors 290 $138 980 573,508 Ducts $11 565 266 Floors 182 $156,827 263,545 Furnace Modify $22 276 418 Furnace Repair $13 108 Furnace Replace $114 759 188,461 Furnace Tune 901 769 Health & Safety 131 $15,408 Infiltration 420 $115 021 345 558 Other 938 Pipes 565 103 Roof Vents 645 Walls $15 715 882 Water Heater 233 993 906 Windows 336 $303 609 233 362 Total 2005 179,439 179,312 Overall Cost-effectiveness The Company maintains program cost-effectiveness by requiring all CAP agencies ensure that each measure as well as each total job has a Savings to Investment Ratio (SIR) of 1.0 or greater. Under this standard, those jobs with an SIR greater than 1.0 are deemed to be cost-effective by program guidelines. In 2004 and 2005 all jobs were screened and met this cost-effective guideline. Meeting or exceeding the guideline is a requirement for payment by Idaho Power. As mentioned earlier, by 2005 a detailed database was in place, providing the data for developing comparative SIR measures. The total job SIR reflects the ratio of the total costs associated with the job, including measure costs that have no kWh savings, to the value of the total kWh savings of that job. Figure 1 below shows a frequency distribution and statistical averages of 2005 SIR values. Note that the figure shows SIR values between 1.0 and 9.0: to enhance the presentation value of the graph Figure 1 limits the analysis of the SIR data to values between 1.0 and 9.0 resulting in one job being excluded from the analysis (the excluded SIR value is 41.62). The frequency observations are presented in 0.25 increments and the SIR values have been rounded to two significant digits. The statistics show that generally the job activities of the program generate SIRs over 2.0 indicating a significant margin of overall value for the program. Figure 1. 2005 Weatherization Assistance for Qualified Customers Frequency Distribution Frequency Distribution 2005 Idaho SIR Values (For values ;:.1.0 and c9. (n=569) =--... LL. 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9. SIR Value IMin: 1.01 I (bin increments= 0.25) !Max: 8.50 I In addition to the costs previously shown on Tables 1 and 2, Idaho Power incurs costs for program administration. In 2005, Idaho Power spent an additional $110 636 for program labor, programming and marketing costs. The overalilevelized cost of this program, including all funds paid to CAP agencies and internal administration costs, is $0.034 from both the Utility Cost and Total Resource Cost perspectives. Customer Education The Company provides materials to each CAP agency to assist in the education of special needs customers who receive weatherization assistance. Included in this material is an Energy Planner that provides information about tracking energy use, how to read a meter, electricity-related terms, and energy conservation tips. Also included is an Energy Calculator that helps customers track which home appliances use the most energy and the estimated cost of that energy use. Stickers are included to remind customers where they can save energy in their home. Furthermore, each fall, the Company distributes Energy Assistance brochures to all customers describing the program including qualification and application guidelines. A separate Weatherization Assistance for Qualified Customers brochure has been developed for use at fairs and other events. The Company actively informs customers about this program through energy, health, and senior fairs each year. In addition, the Company has sponsored Energy Assistance Resource Symposiums in both 2004 and 2005 where this program was discussed. Plans for 2006 Based on the average cost for each project, the Company estimates 597 homes will be weatherized in 2006 providing the CAP agencies are able to fully utilize their 2006 contract funding which will include a carryover amount of $215 354 from 2005. Also in 2006 , the CAP agencies will be operating under the increased maximum average job cost of $2 304, and the Company is working with CAPAI to add compact fluorescent lighting as a new energy saving measure beginning later in the year. The Company also plans to continue to work with CAPAI and individual CAP agencies to evaluate the need for additional program changes.