200603312004-2005 WAQC (LIWA) reports.pdf

IDAHO
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An IDACORP Company
MAGGIE BRILZ
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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
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Enclosures
Ric Gale
Bart Kline
Jim Baggs
Theresa Drake
Darlene Nemnich
P&RS/Legal Files
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An IDACORP company
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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.