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Home My WebLink About201003312009 WAQCP Report.pdfn HIDA~PO. An 10ACORP company LISA D. NORDSTROM Lead Counsel Inordstrom4iidahopower.com March 31, 2010 VIA HAND DELIVERY Ms. Jean D. Jewell, Secretary Idaho Public Utilities Commission 475 West Washington Street P. O. Box 83720 Boise,ID 83720-0074 RE: Case No. IPC-E-03-13, Order No. 29505 - Compliance Filing Report of 2009 Weatherization Assistance for Qualified Customers Program Dear Ms. Jewell: Enclosed please find eight (8) copies of Idaho Power Company's report on the 2009 activity for the Weatherization Assistance for Qualified Customers Program filed in compliance with the above-referenced Order. If you have any questions regarding the content of the report, please direct them to Pete Pengily at 388-2281 or Courtney Waites at 388-5612. Very truly yours, r~¡J.~~~ Lisa D. Nordstrom LDNlkkt Enclosures cc/enc:Greg Said Mike Youngblood Pete Peng ily Theresa Drake Courtney Waites P&RS Files Legal Files P.O. Box 70 (83707) 1221 W.ldaho St. Boise, 10 83702 ri to' i'" ",' ï~, ¡~::'.~_-__,; 1 \' ZOlOMÂR31 H\ 1:56 1l An IDACORP Company Weatherization Assistance for :t-Ë - 03 -(-3 Annual 1 ."\.1 This document printed on recycled paper. Idaho Power Company Weatherization Assistance for Qualified Customers TABLE OF CONTENTS Table of Contents........... ....... .... .............. ...... ............. .... .............. ............... .... ..... ........................i List of Tables ...............................................................................................................................i List of Figues............................................... ...............................................................................i Description................................................................................................................... ............... 1 Background..... ..... ...... ..... ... .... ..... ...... ..... ............ ....... ........... ..... ........ .................. ... ..... ... ...... ..... ..1 Review of Weatherized Homes and Non-Profit Buildings by County ..........................................2 Review of Measures Installed......................................................................................................6 Overall Cost -Effectiveness.......................................................................................................... 8 Customer Education, Advocacy, and Satisfaction...................................................................... 10 Plans for 2010...........................................................................................................................10 LIST OF TABLES Table 1 2009 WAQC Weatherization Activities and Idaho Power Expenditures by County................... 3 Table 2 2009 WAQC Base and Carrover Funding ...............................................................................5 Table 3 2009 W AQC Review of Measures Installed...... ....... .................... ..... ....... .... ....... ......................7 LIST OF FIGURES Figure 1 SIR Frequency Distribution .... .............. ......... ........ ........ ........... ............. .... .... ......... ..................9 2009 Annual Report Pagei Weatherization Assistance for Qualified Customers Idaho Power Company This page left blank intentionally. Pageii 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers DESCRIPTION The Weatherization Assistance for Qualified Customers (WAQC) program provides financial assistance to regional Community Action Partnership (CAP) agencies in the Idaho Power service area. This assistance helps cover weatherization costs of electrically heated homes belonging to qualified customers with limited income. The W AQC program also provides a limited pool of funds for weatherization of buildings occupied by non-profit organizations serving primarily special-needs populations, regardless of heating source, with priority given to buildings with electric heat. Weatherization improvements enable residents to maintain a more comfortable, safe, and energy-effcient home while reducing their monthly electricity consumption. Improvements are available at no cost to qualifying applicants who own or rent their homes. These customers also receive educational materials and efficiency ideas for further reducing energy use in their homes. Local CAP agencies determe program eligibilty according to federal and state guidelines. BACKGROUND In 1989, Idaho Power began offering weatherization assistance in conjunction with the State of Idaho Weatherization Assistance Program. Oregon's weatherization program was expanded in 2005. Through the WAQC program, Idaho Power provides supplementary funding to state-designated CAP agencies for the weatherization of electrically heated homes occupied by qualified customers and buildings occupied by non-profit organizations that serve special-needs populations. Idaho Power enters into an agreement with each CAP agency that specifies the funding allotment, biling requirements, and program guidelines. Currently, Idaho Power administers the program in Idaho through five regional CAP agencies, including )) 2009 Annual Report Page 1 Weatherization Assistance for Qualified Customers Idaho Power Company Canyon County Organization on Aging, Weatherization, and Human Services (CCOA); Eastern Idaho Community Action Partnership (EICAP); El-Ada Community Action Partnership (El-Ada); South Central Community Action Partnership (SCCAP); and Southeastern Idaho Community Action Agency (SEICAA). In Baker County, Oregon, Community Connection of Northeast Oregon, Inc. (CCNO) serves Idaho Power customers. Harney County Senior and Community Services Center (HCSCSC) provided weatherization services for qualified customers in Malheur and Harney Counties. The Weatherization Assistance for Qualifed Customers 2009 Annual Report satisfies the reporting requirements set out in the Idaho Public Utilities Commission's (IPUC) Order No. 29505 with the inclusion ofthe following topics: · Review of Weatherized Homes and Non-Profit Buildings by County · Review of Measures Installed · Overall Cost-Effectiveness · Customer Education, Advocacy, and Satisfaction · Plans for 2010 REVIEW OF WEATHERIZED HOMES AND NON-PROFIT BUILDINGS BY COUNTY In 2009, Idaho Power provided a total of$I,214,511 to Idaho CAP agencies with $1,057,156 directly funding audits, energy-efficient measures, and health and safety measures for qualified customers' homes (production costs), $46,944 directly funding energy effcient measures and health and safety measures for non-profit buildings, and $110,410 funding the admiistration Page 2 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers costs incurred by the Idaho CAP agencies. The total number ofIdaho homes weatherized during the year was 423. Four non-profit buildings were also weatherized during 2009 in Idaho. In Oregon, Idaho Power provided a total of $31 ,497 to CAP agencies including $28,634 in production costs of 10 homes and $2,863 funding administrative costs. Table 1 reviews the number of homes and non-profit buildings weatherized, production costs, average cost-per-home or non-profit building served, administration payments, and total payments per county made by Idaho Power. Table 1 2009 WAQC Weatherization Activities and Idaho Power Expenditures by County Administration Number Production Payment to Agency County of Jobs Costs Average Cost Agency Total Payment1 Idaho CCOA Adams 5 $11,435 $2,287 $1,144 $12,579 Boise 5 $9,420 $1,884 $942 $10,362 Canyon 105 $211,448 $2,014 $21,145 $232,593 Gem 10 $17,344 $1,734 $1,734 $19,078 Payette 8 $15,591 $1,949 $1,559 $17,150 Valley 2 $4,864 $2,432 $486 $5,350 Washington 3 $4,986 $1,662 $499 $5,485 EICAP Lemhi 5 $11,625 $2,325 $1,163 $12,788 EI-Ada Ada 166 $505,173 $3,043 $50,517 $555,690 Elmore 2 $4,681 $2,340 $468 $5,149 Owyhee 2 $6,945 $3,472 $694 $7,639 SCCAP Blaine 6 $15,407 $2,568 $1,541 $16,948 Camas 1 $3,046 $3,046 $305 $3,351 Cassia 1 $771 $771 $77 $848 Gooding 7 $16,006 $2,287 $1,601 $17,607 Jerome 16 $25,363 $1,585 $2,536 $27,899 Lincoln 7 $21,488 $3,070 $2,149 $23,637 Minidoka 2 $5,766 $2,883 $577 $6,343 Twin Falls 23 $64,340 $2,797 $6,434 $70,774 1 Rows may not sum exactly due to rounding. 2009 Annual Report Page 3 Weatherization Assistance for Qualified Customers Idaho Power Company Table 1 (Continued) 2009 Weatherization Activities and Idaho Power Expenditures by County Administration Number Production Payment to Agency County of Jobs Costs Average Cost Agency Total Payment' Idaho SEICCA Bannock 23 $57,107 $2,483 $5,711 $62,818 Bingham 21 $39,339 $1,873 $3,934 $43,273 Power 3 $5,012 $1,671 $501 $5,513 Non-Profit Buildings Boise 1 $14,566 $14,566 $1,457 $16,023 Twin Falls 2 $25,681 $12,841 $2,568 $28,249 Washington 1 $6,697 $6,697 $670 $7,367 Oregon CCNO Baker 2 $5,613 $2,806 $561 $6,174 HCSCSC Harney 8 $23,021 $2,878 $2,302 $25,323 1 Rows may not sum exactly due to rounding. In an effort to help CAP agencies maximize the number of customers served under W AQC, Idaho Power's agreements with agencies includes a provision allowing a maximum annual average cost-per-home to an amount specified in the agreement. The average cost-per-home served is calculated by dividing the total annual Idaho Power production cost of homes weatherized per agency by the total number of homes weatherized that the CAP agency biled to Idaho Power durig the year. The maximum annual average cost-per-home by CAP agency allowed under the 2009 agreement was $3,055. Overall, in 2009, Idaho CAP agencies had a combined average cost-per-home served of$2,499. Oregon CAP agencies averaged $2,863. There is no average cost limit for weatherization of non-profit buildings. During 2009, Idaho Power provided administrative payments totaling $110,410 to Idaho CAP agencies and $2,863 to Oregon CAP agencies to cover their program administration costs. Administration fees are based on 10 percent of the Idaho Power production costs. The average administration cost-per-Idaho-home weatherized in 2009 was $250, and the average Page 4 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers administration cost-per-Oregon-home weatherized during the same time period was $286. Administration costs for Idaho non-profit buildings weatherized averaged $1,174. Additionally, Idaho Power staff labor, marketing, and support costs for the WAQC program totaled $48,292 for the year. These expenses were paid in addition to the funding requirements of$I,212,534 contained in IPUC Order No. 29505. In compliance with the Idaho and Oregon commissions, weatherization assistance funds are tracked, and unspent funds are carred over and made available to CAP agencies in the following year. In 2009, a total of$I,977 was carried forward from 2008 in Idaho. In Oregon, $66,863 was carried forward from 2008 to 2009, due to a portion ofIdaho Power's service area not having an operating state CAP agency weatherization department for a portion ofthe year. Table 2 details the funding base amount, any carrover funding, and the total amount of annual funding. Table 2 2009 WAQC Base and Carryover Funding Base Carrover Total 2009 From 2008 Allotment 2009 Spending $337.77 $302,596.77 $302,596.77 $0.00 $12,788.00 $12,788.00 $0.00 $568,479.00 $568,479.00 $0.00 $167,405.00 $167,405.00 $0.00 $111,603.00 $111,603.00 $1,639.04 $51,639.04 $51,638.93 $1,976.81 $1,214,510.81 $1,214,510.70 $6,253.95 $12,703.95 $6,173.75 $54,608.77 $91,158.77 $25,323.36 $6,000.00 $8,000..00 $0.00 $66,862.72 $111,862.72 $31,497.11 Idaho Agency CCOA ......................................... ........... $302,259.00 EICAP .................................................... $12,788.00 EI-Ada.................................................... $568,479.00 SCCAP .................................................. $167,405.00 SEICAA.................................................. $111,603.00 Non-Profi Buildings ................................ $50,000.00 Idaho Total............................................... $1,212,534.00 Oregon Agency CCNO.................................................... HCSCSC................................................ Non-Proft Buildings ............... ............ ..... Oregon Total............................................ $6,450.00 $36,550.00 $2,000.00 $45,000.00 2009 Annual Report PageS Weatherization Assistance for Qualified Customers Idaho Power Company REVIEW OF MEASURES INSTALLED Table 3 details home counts where Idaho Power paid a portion of measure costs, Idaho Power's portion ofthe production costs ofthose measures, and the Idaho Power portion of kilowatt-hour (kWh) savings by individual measure during 2009. The table also shows the life of each measure as defined in the EA4 energy audit, the software program approved for use by the State ofIdaho Weatherization Assistance Program. The home counts column represents the number oftimes any percentage ofthat measure was biled to Idaho Power during the year. In reality, measure counts are higher when considering each home. In some homes, the measure was actually installed and biled at 100 percent to the state weatherization program and not to Idaho Power. In this case, Idaho Power would claim no savings for that measure. Consistent with the State of Idaho Weatherization Assistance Program, Idaho Power offers several measures that have costs, but do not save energy or savings cannot be measured. Included in this category are elements, such as health and safety, vents, furnace repair, and home energy audits. Health and safety measures are necessary to ensure weatherization activities do not cause unsafe situations in a client's home or compromise a household's existing indoor air quality. Other non-energy savings measures are allowed under this program because of the interaction between the non-energy saving measures and the energy saving measures. Page 6 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers Table 3 2009 WAQC Review of Measures Installed Idaho Power Portion Production Annual KWhHome Counts Costs Savings: LevelizedMeasure Costs 1 Life: Years ($/kWh) Idaho Home Measures Windows..................................................316 $450,173 2,520,795 15 $0.018 Doors ......................................................204 $120,899 585,913 15 $0.020 Wall insulation..........................................13 $5,271 17,425 20 $0.026 Ceiling insulation ..... .......... ................. ......136 $68,919 171,433 20 $0.034 Vents.......................................................15 $1,578 0 nla nfa Floor insulation.. ............ ............. .............120 $91,366 192,375 20 $0.040 Infiltration................................................ .234 $61,262 294,254 15 $0.021 Ducts.......................................................47 $9,772 41,081 20 $0.020 Health & Safety........................................0 $0 0 nla nJa Water heater............................................27 $1,343 9,702 10 $0.018 Pipes.......................................................35 $1,945 1,726 15 $0.111 Furnace modify ........................................2 $2,737 6,303 3 $0.149 Furnace repair .........................................17 $4,839 0 15 nfa Furnace replace.......................................101 $212,055 542,826 20 $0.033 Compact Florescent Light (CFL) bulbs.....1 $236 3,631 3 $0.022 Audit investment .......... ............. ......... ......318 $5,607 43,491 7 $0.022 Idaho Non-Profit Building Measures Windows..................................................3 $4,612 42,322 15 $0.011 Doors ......................................................2 $4,918 19,814 15 $0.025 Wall insulation..................... .....................1 $135 873 20 $0.013 Ceiling insulation......................................4 $17,761 39,978 20 $0.038 Vents.......................................................1 $334 0 nfa nfa Floor insulation ........................................1 $7,588 13,098 20 $0.049 Infitration.. . .. . . ... . ... . ..... . ...... ... .. . . . . . . . . . . .. . . . . .3 $6,761 8,688 15 $0.077 Ducts.......................................................1 $2,639 3,821 20 $0.059 Health & Safety..... ............. ......................1 $82 0 nfa nfa Water heater ............................................2 $48 3,207 10 $0.002 Pipes.......................................................1 $724 761 15 $0.094 Furnace modify ........................................0 $0 0 3 nfa 1 Levelized Costs are calculated using the 20091RP afer-tax weighted average cost-of-capital discount factor of 6.98% and include line loss adjusted energy savings. 2009 Annual Report Page? Weatherization Assistance for Qualified Customers Idaho Power Company Table 3 (Continued) 2009 WAQC Review of Measures Installed Idaho Power Portion Production Annual KWhHome Counts Costs Savings:Measure life: Years Levelized Costs1 ($/kWh) Idaho Non~Profit Building Measures Furnace repair .........................................1 $493 0 15 nla Furnace replace.......................................0 $0 0 20 nla Furnace tune ...........................................0 $0 0 3 nla CFL bulbs................................................1 $88 316 7 $0.047 Audit investment.. .............................. ......4 $762 0 nla nla Oregon Home Measures Windows..................................................7 $13,192 24,521 15 $0.053 Doors ......................................................2 $660 456 15 $0.143 Wall insulation..........................................0 $0 0 20 nla Ceilng insulation......................................9 $9,996 75,917 20 $0.011 Vents.......................................................0 $0 0 nla nla Floor insulation ........................................2 $2,360 4,647 20 $0.043 Infiltration.................................................4 $1,190 7,384 15 $0.016 Ducts.......................................................2 $1,235 2,057 20 $0.051 1 Levelized Costs are calculated using the 2009 IRP after-tax weighted average cost-of-capital discount factor of 6.98% and include line loss adjusted energy savings. The W AQC program realized savings from weatherizing homes and non-profit buildings in Idaho and Oregon. The overall savings from the program in 2009 was 4,678,814 kWh. Savings from weatherized homes yielded 4,545,936 kWh in Idaho and Oregon. Weatherization on non-profit buildings that housed non-profit agencies in Idaho saved 132,878 kWh. There were no buildings housing non-profit agencies weatherized in Oregon durig 2009. OVERALL COST-EFFECTIVENESS Idaho Power monitors overall cost-effectiveness by requiring each CAP agency to ensure that each project has a savings-to-investment ratio (SIR) equal to or greater than 1.0. The total project's SIR reflects all the measure costs associated with the project, including measure costs Page 8 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers that have no kWh savings, and compares that total cost to the benefit of the total kWh savings of the project. There are many factors incorporated into the SIR cost-effectiveness calculation in the EA4 program. Heating degree days, audit and labor hours, material costs, support hours, and energy costs are built into the formula. Square footage, housing age and type, and exposure factors are all considered in the program as well. Under this standard, projects with an SIR greater than 1.0 are considered to be cost-effective by the energy audit program. Figure 1 SIR Frequency Distribution 80 10 2009iSIR Summary70 60 Minimum SIR = 1 .04 Maximum SIR = 10.77 Average SIR = 3.12 Median SIR = 2.95 .. § 50 8 1l 40õ' Q. 30 20 o 1 2 3 4 5 6 7 SIR Values 8 9 10 11 12 Figure 1 shows the SIR frequency distribution ofthe 2009 projects funded through WAQC. During 2009, SIR values ranged between 1.04 and a high project value of 10.77, with a mean SIR of3.12. The levelized cost of saved energy in 2009 for the WAQC program is $0.021/kWh from a utility cost perspective and $0.035/kWh from a total resource cost perspective. 2009 Annual Report Page 9 Weatherization Assistance for Qualified Customers Idaho Power Company CUSTOMER EDUCATION, ADVOCACY, AND SATISFACTION Idaho Power provides materials to each CAP agency to help educate special needs customers who receive weatherization assistance. Included are the Idaho Power brochures Practical Ways to Manage Your Electricity Bil and Energy Saving Tips that describe energy conservation tips appropriate for both the heating and cooling seasons, and a two-sided card that describes the energy-saving benefits of using CFL bulbs and helpful hints about using the bulbs. In 2009, the book 30 Simple Things You Can Do To Save Energy was included. In addition to the materials provided to CAP agency weatherization offces and energy assistance offces, each autumn Idaho Power distributes the Energy Assistance brochure to all residential customers. The brochure describes eligibility guidelines and application locations. 'Idaho Power also actively informs customers about the program through energy, resource, and senior fairs. In order to stay current with new programs and services, the Idaho Power program specialist overseeing W AQC attends state and federal energy assistance/weatherization meetings and other weatherization-specific conferences, such as the National Energy and Utility Affordability Conference. Idaho Power is also active in the Policy Advisory Council, helping advice and direct Idaho's state weatherization application to the United States Department of Energy (DOE). PLANS FOR 2010 Idaho Power wil continue working in partnership with the Idaho Department of Health and Welfare (IDHW), Oregon Housing and Community Services (OHCS), Community Action Partnership Association ofIdaho (CAP AI), and individual CAP agency personnel to maintain the targets, guidelines, and cost-effectiveness of the W AQC program. In so doing, Idaho Power wil provide a valuable service to its special-needs population throughout the company's service area. Page 10 2009 Annual Report Idaho Power Company Weatherization Assistance for Qualified Customers Idaho Power estimates 258 homes and five non-profit buildings wil be weatherized in Idaho in 2010, with an annual average cost of$4,050 per home and $9,000 per non-profit building. In Oregon, where agencies carried over a larger dollar amount from 2009, an estimate of 26 homes and one non-profit building wil be weatherized. In 2010, Idaho Power expects to fund $1,212,534 in weatherization measures and agency administration fees in Idaho, of which $50,000 wil be used to weatherize buildings housing non-profit agencies who serve primarily special needs customers. Through the W AQC program, Oregon CAP agencies have an allotment of$125,366 to manage weatherization services for Idaho Power customers. In 2010, Community in Action (CIA) wil replace HCSCSC in providing weatherization services for qualified customers in Malheur and Harney Counties. Idaho Power plans to evaluate the need for additional program changes continually. As in prior years, a miimum of 5 percent of all weatherized homes submitted for reimbursement wil be audited for quality assurance. 2009 Annual Report Page 11 Weatherization Assistance for Qualified Customers Idaho Power Company This page left blank intentionally. Page 12 2009 Annual Report