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HomeMy WebLinkAbout20120316DSM 2011 Supplement 1.PDFDemand-Side Management 2011 Annual Report March 15, 2012 Supplement 1: Cost-Effectiveness Photo Captions Top Photo: Courtesy of the Idaho Central Credit Union The Idaho Central Credit Union’s corporate office in Chubbuck, Idaho incorporates numerous energy efficient measures provided through Idaho Power’s Building Efficiency program. Middle Photo: Idaho Power offers an energy efficiency program and a demand-response program for irrigation customers. Bottom Photo: Idaho Power offers numerous energy efficient programs for residential customers. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page i TABLE OF CONTENTS Table of Contents ......................................................................................................................................... i List of Tables .............................................................................................................................................. ii Supplement 1: Cost-Effectiveness ...............................................................................................................1 Cost-Effectiveness .................................................................................................................................1 Methodology ....................................................................................................................................1 Assumptions .....................................................................................................................................2 Net-to-Gross .....................................................................................................................................3 Results ..............................................................................................................................................4 2011 DSM Detailed Expense by Program .............................................................................................6 Cost-Effectiveness Tables by Program ......................................................................................................11 A/C Cool Credit .............................................................................................................................11 FlexPeak Management ...................................................................................................................13 Irrigation Peak Rewards .................................................................................................................15 Ductless Heat Pump Pilot ..............................................................................................................17 Energy Efficient Lighting ..............................................................................................................19 Energy House Calls........................................................................................................................21 ENERGY STAR® Homes Northwest ............................................................................................25 Heating & Cooling Efficiency Program ........................................................................................31 Home Improvement Program ........................................................................................................37 Home Products Program ................................................................................................................67 Rebate Advantage ..........................................................................................................................73 See ya later, refrigerator® ...............................................................................................................77 Weatherization Assistance for Qualified Customers .....................................................................79 Weatherization Solutions for Eligible Customers..........................................................................81 Building Efficiency ........................................................................................................................85 Custom Efficiency .........................................................................................................................89 Easy Upgrades ...............................................................................................................................97 Irrigation Efficiency .....................................................................................................................115 Supplement 1: Cost-Effectiveness Idaho Power Company Page ii Demand-Side Management 2011 Annual Report LIST OF TABLES Table 1. 2011 non-cost-effective measures ........................................................................................5 Table 2. 2011 DSM detailed expenses by program (dollars) .............................................................6 Table 3. Cost-effectiveness summary by program...........................................................................10 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 1 SUPPLEMENT 1: COST-EFFECTIVENESS Cost-Effectiveness Idaho Power considers cost-effectiveness of primary importance in the design, implementation, and tracking of energy efficiency and demand response programs. In the past, most of Idaho Power’s energy efficiency and demand response programs were preliminarily identified through the Integrated Resource Plan (IRP) process. Because of Idaho Power’s diversified portfolio of programs, in the 2011 IRP most of the new potential for energy efficiency in Idaho Power’s service area is based on additional measures to be added to programs rather than new programs. The process in the IRP remains the same for determining if measures should be adopted as it was for program inclusion. Specific cost-effective programs or energy-saving measures are screened by sector to determine if the levelized cost of these programs or measures is less than supply-side resource alternatives. If they are shown to be less costly than supply-side resources from a levelized cost perspective, the hourly shaped energy savings is subsequently included in the IRP as a resource. Prior to the actual implementation of energy efficiency or demand response programs, Idaho Power performs a cost-effectiveness analysis to assess whether a specific potential program design will be cost-effective from the perspective of Idaho Power and its customers. Incorporated into these models are inputs from various sources in order to use the most current and reliable information available. When possible, Idaho Power leverages the experiences of other utilities in the region, or throughout the country, to help identify specific program parameters. This is typically accomplished through discussions with other utilities’ program managers and researchers. Idaho Power also uses electric industry research organizations, such as E Source, Edison Electrical Institute (EEI), Consortium for Energy Efficiency (CEE), American Council for an Energy Efficient Economy (ACEEE), Advanced Load Control Alliance (ALCA), Association of Energy Service Professionals (AESP), and others to identify similar programs and their results. Additionally, Idaho Power relies on the results of program impact evaluations and recommendations from consultants such as ADM Associates, Inc., and Portland Energy Conservation, Inc. (PECI) for program assumptions. Idaho Power’s goal is to have all mature programs have benefit/cost (B/C) ratios greater than 1.0 for the total resource cost (TRC) test, utility cost (UC) test, and participant cost test (PCT) at the program level and the measure level where appropriate. An exception to the measure level cost-effectiveness is when there is interaction between measures. Idaho Power may launch a pilot or a program to evaluate estimates or assumptions in the cost-effectiveness analysis. Following implementation of a program, cost-effectiveness analyses are reviewed as new inputs from actual program activity become available, such as actual program expenses, savings, or participation levels. If measures or programs are determined to be not cost-effective after implementation, the program or measures are reexamined including input provided from the company’s Energy Efficiency Advisory Group (EEAG). Methodology For its cost-effectiveness methodology, Idaho Power relies on the Electric Power Research Institute (EPRI) End Use Technical Assessment Guide (TAG), the California Standard Practice Manual and its subsequent addendum, and the National Action Plan for Energy Efficiency’s (NAPEE) Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for Policy-Makers. Traditionally, Idaho Power has primarily used the TRC test and the UC test to develop B/C ratios to determine the cost-effectiveness of demand-side management (DSM) programs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 2 Demand-Side Management 2011 Annual Report These tests are still used because, as defined in the TAG and California Standard Practice Manual, they are the most similar to supply-side tests and provide a useful basis to compare demand-side and supply-side resources. For energy efficiency programs, each program’s cost-effectiveness is reviewed annually on a one-year perspective. The annual energy savings benefit value is summed over the life of the measure or program and are discounted to reflect today’s dollars. The result of the one-year perspective is shown in Supplement 1: Cost-Effectiveness. Appendix 4 of the main Demand-Side Management 2011 Annual Report illustrates the program cost-effectiveness to date by including the culmination of actual historic savings value and expenses as well as the on-going energy savings benefit over the life of the measures included in a program. The goal of demand response programs is to minimize or delay the need to build new supply-side resources. Unlike energy efficiency programs, demand response programs must acquire and retain participants each year to maintain a level of demand reduction capacity for the company. Demand response programs are expensive and generally have a higher initial investment than energy efficiency programs. As such, demand response programs are analyzed over the program life in which historical program demand reduction and expenses are combined with forecasted program activity to better compare the program to a supply-side resource. While cost-effectiveness is determined over the program life, it is also calculated for each individual year. In 2011, Idaho Power reviewed its methodology to analyze the cost-effectiveness of its demand response programs. In September, the company contracted with Freeman, Sullivan & Co. (FSC Group) to conduct a two-day workshop on demand response. At the workshop, FSC Group recommended the application of an effective load carrying capacity (ELCC) to reduce the avoided capacity cost benefit. Because demand response programs cannot perfectly match the reliability of a generation resource due to the programs’ limited availability, it should not claim the full avoided capacity cost benefit of that supply-side resource. To determine the ELCC for demand response programs, Idaho Power created load duration curves using five years of actual total system load data and used the top 100 hours (adjusted for demand response activity) of each year. Of those top 500 hours, the number of hours that fell within the operating parameters of one or more demand response program between June 1 and August 31 was used to calculate the ELCC. Approximately 7 percent of the total hours were outside the programs’ parameters when analyzed as they would be dispatched. An ELCC of 93.4 percent is now applied to the avoided capacity cost of a simple-cycle gas turbine in the cost-effectiveness calculation of demand response programs. Assumptions Idaho Power relies on research conducted by third party sources to obtain savings and cost assumption for various measures. These assumptions are routinely reviewed and updated as new information becomes available. For many of the measures within Demand-Side Management 2011 Annual Report Supplement 1: Cost-Effectiveness, savings, costs, and load shapes were derived from the Demand-Side Management Potential Study conducted by Nexant, Inc., in 2009. Another source of information is the Regional Technical Forum (RTF). The RTF, which meets 10-12 times annually, regularly reviews, evaluates, and recommends eligible energy efficiency measures and the estimated savings and costs associated with those measures. As the RTF updates these assumptions, Idaho Power, in turn, applies those assumptions to current program offerings and assesses the need to make any program changes. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 3 Idaho Power staff participates in the RTF by attending the monthly meetings and contributing to various sub-committees. Idaho Power also relies on other sources such as the Northwest Power and Conservation Council (NPCC), Northwest Energy Efficiency Alliance (NEEA), the Database for Energy Efficiency Resources (DEER), the Energy Trust of Oregon (ETO), the Bonneville Power Administration (BPA), third-party consultants, and other regional utilities. On occasion, Idaho Power will also use internal engineering estimates and calculations for savings and costs based on information gathered from previous projects. The remaining inputs used in the cost-effectiveness models are obtained from the IRP process. The Technical Appendix of Idaho Power’s 2011 IRP is the source for the financial assumptions, including the discount rate and escalation rate. As recommended by the NAPEE Understanding Cost-Effectiveness of Energy Efficiency Programs¸ Idaho Power’s weighted average cost of capital (WACC) of 7 percent is used to discount future benefits and costs to today’s dollars. However, determining the appropriate discount rate for participant cost and benefits is made difficult by the variety of potential discount rates that can be used by the different participants as described in the TAG manual. Since the participant benefit is based on the anticipated bill savings of the customer, it was determined that the WACC was not an appropriate discount rate to use. Because the customer bill savings is based on Idaho Power’s 2011 average customer segment rate and is not escalated, the participant bill savings is discounted using a real discount rate of 3.88 percent which is based on the 2011 IRP’s WACC of 7 percent and an escalation rate of 3 percent. The formula to calculate the real discount rate is as follows: ((1 + WACC) ÷ (1 + Escalation)) – 1 = Real The IRP is also the source of the DSM alternative costs, which is the value of energy savings and demand reduction resulting from the DSM programs. These DSM alternative costs vary by season and time of day and are applied to an end-use load shape to obtain the value of that particular measure or program. The DSM alternative energy costs are based on both the projected fuel costs of a peaking unit and forward electricity prices as determined by Idaho Power’s power supply model, AURORAxmp® Electric Market Model. The avoided capital cost of capacity is based on a gas fired simple cycle turbine. In the 2011 IRP, the annual avoided capacity cost is $94/kW. When multiplied by the ELCC of 93.4 percent, the annual avoided capacity cost is $87.80/kW. Net-to-Gross Net-to-gross (NTG), or net-of-free-ridership (NTFR), is defined by NAPEE’s Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for Policy-Makers, as a ratio that: Adjusts the impacts of the programs so that they only reflect those energy efficiency gains that are the result of the energy efficiency program. Therefore, the NTG deducts energy savings that would have been achieved without the efficiency program (e.g., ‘free-riders’) and increases savings for any ‘spillover’ effect that occurs as an indirect result of the program. Since the NTG attempts to measure what the customers would have done in the absence of the energy efficiency program, it can be difficult to determine precisely. Supplement 1: Cost-Effectiveness Idaho Power Company Page 4 Demand-Side Management 2011 Annual Report For most programs and individual measures, the NTG ratios are derived from Demand-Side Management Potential Study or the California Public Utilities Commission (CPUC) DEER. The NTG adjustment is shown as part of the Supplement 1: Cost-Effectiveness for each program and measure. However, for some programs such as A/C Cool Credit, Energy Efficient Lighting, Irrigation Efficiency, and See ya later, refrigerator® the unit incremental savings are net realized energy savings from third party sources which take into account a NTG adjustment. While each project within the Custom Efficiency program is analyzed independently and Idaho Power believes there is considerable spillover from this program, a NTG adjustment of 69 percent, the standard custom program NTG from DEER1 Results which includes a spillover adjustment, is used to calculate the cost-effectiveness of this program. Idaho Power determines cost-effectiveness on a measure basis, where relevant, and program basis. As part of the Supplement 1: Cost-Effectiveness and where applicable, Idaho Power publishes the cost-effectiveness by measure, calculating the PCT and ratepayer impact measure (RIM) test at the program level, listing the assumptions associated with cost-effectiveness, and citing sources and dates of metrics used in the cost-effectiveness calculation. The B/C ratio from the participant cost perspective is not calculated for the demand response programs, Weatherization Assistance for Qualified Customers, Weatherization Solutions for Eligible Customers, See ya later, refrigerator, and Energy House Calls. These programs have few or no customer costs. The Irrigation Peak Rewards program does have some direct costs for participants with small horsepower (hp) pumps where a fee is charged to install program equipment at the enrolled service location. In addition to this fee, Idaho Power also calculated the additional labor expense an irrigator may incur for resetting each pump after an event as a cost for the participant. For energy efficiency programs, the cost-effectiveness models do not assume any on-going participant costs. The Demand-Side Management 2011 Annual Report contains program UC and TRC B/C ratios using actual cost information over the life of the program through 2011. Supplement 1: Cost-Effectiveness contains annual cost-effectiveness metrics for each program using actual information from 2011, includes results of the PCT, and includes application of a NTG factor where appropriate. Current customer energy rates are used in the calculation of the B/C ratios from a PCT and RIM perspective. Rate increases are not forecast or escalated. Where applicable, the cost-effectiveness results of demand response programs include historical expenses. A summary of the cost-effectiveness by program can be found on Table 3. In 2011, all but one of Idaho Powers energy efficiency programs were cost-effective from the UC, TRC, and PCT perspective. Home Improvement Program had a TRC of 0.76 due to the lower than anticipated cooling savings for gas heated homes. At Idaho Power’s request, the RTF made additional runs of the residential weatherization model with central air conditioning assumptions for all Idaho specific climate zones. That analysis was received in October 2011, approved by the RTF in November 2011, and is posted as a supporting file at the RTF website at http://www.nwcouncil.org/energy/rtf/measures/support/Default.asp. When the new savings from this 1 Source: CPUC DEER NTFR Update Process for 2006-2007 Programs, found at http://www.deeresources.com/deer2008exante/downloads/DEER%200607%20Measure%20Update%20Report.pdf Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 5 analysis was applied in the cost-effectiveness calculations for the Home Improvement Program, the program became not cost-effective for 2011. All of the demand response programs were determined to be cost-effective from the long term prospective. To be consistent with the IRP, and since demand response programs are inherently different from energy efficiency programs, the B/C ratios for A/C Cool Credit and Irrigation Peak Rewards are calculated over a 20-year program life, while the B/C ratios for FlexPeak Management are calculated over 10 years. However, Idaho Power does calculate the B/C ratios for each demand response program on an individual year basis. Based on the results of the impact evaluation conducted by ADM Associates, Inc., the A/C Cool Credit program was determined to not be cost-effective for 2011. For 2011, FlexPeak Management and Irrigation Peak Rewards programs passed the B/C tests with TRCs of 1.93 and 2.32 respectively, while the A/C Cool Credit program had a TRC B/C ratio of 0.74. Fifty-one measures within programs were not cost-effective from the UC or TRC perspective. Of those 51 measures, five were measures that were removed from the program offerings in 2011 but were carried over from 2010. Six measures will be reviewed and possibly modified in 2012. Three measures are bundled with other cost-effective measures and analyzed at a project level. Thirty-seven measures will be removed in 2012. Table 1. 2011 non-cost-effective measures Program Number of Measures Notes Easy Upgrades 4 These are measures from the program’s 2010 offering that carried over into 2011. They were removed from the program in early 2011. Home Improvement Program 37 Thirty-four measures are for varying insulation levels for non-electrically heated homes. These will be removed from the program after April 1, 2012. Three measures are for electrically heated homes with an average system or heat pump for lower R-value increases. These will be reviewed for non-electric benefits. Home Products Program 5 Three measures will be removed from the program after March 1, 2012. Two measures will be reviewed in 2012 for other non-electric benefits, such as gas and water savings. Irrigation Efficiency Rewards 1 This measure will be revised in 2012 to remove the high-cost item that brought down cost-effectiveness. Non-electric benefits are not allocated by measures but will be researched in 2012. Weatherization Solutions for Eligible Customers 3 These measures are not cost-effective due to high administration costs, which are calculated on a dollar-per-kWh-saved basis. These Measures are bundled with other cost-effective measures and cost-effectiveness is analyzed on a per-project basis. Holiday Lighting 1 Holiday Lighting program was discontinued in 2011. Residual 2010 applications processed in early 2011. Total 51 Following the annual program cost-effectiveness results are tables that include measure level cost-effectiveness. Exceptions to the measure level tables are the demand response programs which do not provide incentives for installed end-use measures. Other programs that are not analyzed at the measure level include Custom Efficiency, the Custom Option of Irrigation Efficiency Rewards, Supplement 1: Cost-Effectiveness Idaho Power Company Page 6 Demand-Side Management 2011 Annual Report and Weatherization Assistance for Qualified Customers where projects include multiple interactive measures that are analyzed at the project level. The measure level cost-effectiveness includes inputs of measure life, energy savings, demand reduction, incremental cost, NTG factors, incentives, program administration cost, and net benefit. Program administration costs include all non-incentive costs: labor, marketing, training, education, purchased services, and evaluation. 2011 DSM Detailed Expense by Program Included in this supplement is a detailed breakout of program expenses as shown in Appendix 2 of the Demand-Side Management 2011 Annual Report. These expenses are broken out by major expense type (incentives, labor/administration, materials, other expenses, and purchased services). Table 2. 2011 DSM detailed expenses by program (dollars) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Energy Efficiency/Demand Response Residential A/C Cool Credit ................................................................................ $ 2,781,553 $ 114,989 $ 0 $ 2,896,542 Customer Incentives ...................................................................... 758,151 9,214 0 767,365 Labor/Administration Expense ....................................................... 83,851 4,407 0 88,258 Materials & Equipment .................................................................. 794,441 42,303 0 836,744 Other Expense .............................................................................. 307,172 14,995 0 322,167 Purchased Services ...................................................................... 837,938 44,070 0 882,008 Ductless Heat Pump Pilot................................................................ 183,260 7,923 0 191,183 Customer Incentives ...................................................................... 108,750 4,000 0 112,750 Labor/Administration Expense ....................................................... 32,852 1,730 0 34,582 Materials & Equipment .................................................................. 20 1 0 21 Other Expense .............................................................................. 24,147 1,271 0 25,418 Purchased Services ...................................................................... 17,491 921 0 18,412 Energy Efficient Lighting................................................................. 1,668,328 50,805 0 1,719,133 Customer Incentives ...................................................................... 1,358,588 39,647 0 1,398,235 Labor/Administration Expense ....................................................... 58,442 3,082 0 61,524 Materials & Equipment .................................................................. 105 6 0 111 Other Expense .............................................................................. 4,005 83 0 4,088 Purchased Services ...................................................................... 247,188 7,987 0 255,175 Energy House Calls ......................................................................... 447,229 36,146 0 483,375 Labor/Administration Expense ....................................................... 44,972 2,367 0 47,339 Materials & Equipment .................................................................. 4 0 0 4 Other Expense .............................................................................. 54,799 2,884 0 57,683 Purchased Services ...................................................................... 347,454 30,895 0 378,349 ENERGY STAR® Homes .................................................................. 255,405 4,357 0 259,762 Customer Incentives ...................................................................... 172,600 0 0 172,600 Labor/Administration Expense ....................................................... 51,169 2,691 0 53,860 Materials & Equipment .................................................................. 2,423 128 0 2,551 Other Expense .............................................................................. 29,213 1,538 0 30,751 Heating & Cooling Efficiency Program ........................................... 188,876 6,894 0 195,770 Customer Incentives ...................................................................... 57,400 650 0 58,050 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 7 Table 2. 2011 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Labor/Administration Expense ....................................................... $ 47,785 $ 2,518 $ 0 $ 50,303 Other Expense .............................................................................. 35,279 1,857 0 37,136 Purchased Services ...................................................................... 48,412 1,869 0 50,281 Home Improvement Program .......................................................... 666,041 0 0 $666,041 Customer Incentives ...................................................................... 486,873 0 0 486,873 Labor/Administration Expense ....................................................... 73,137 0 0 73,137 Other Expense .............................................................................. 64,511 0 0 64,511 Purchased Services ...................................................................... 41,520 0 0 41,520 Home Products Program ................................................................. 619,764 18,559 0 638,323 Customer Incentives ...................................................................... 475,351 10,967 0 486,318 Labor/Administration Expense ....................................................... 59,899 3,153 0 63,052 Materials & Equipment .................................................................. 11 1 0 12 Other Expense .............................................................................. 37,167 1,956 0 39,123 Purchased Services ...................................................................... 47,336 2,482 0 49,818 Oregon Residential Weatherization ................................................ 0 6,690 1,236 7,926 Customer Incentives ...................................................................... 0 3,205 0 3,205 Labor/Administration Expense ....................................................... 0 3,485 1,236 4,721 Rebate Advantage ........................................................................... 59,241 4,228 0 63,469 Customer Incentives ...................................................................... 11,000 1,500 0 12,500 Labor/Administration Expense ....................................................... 14,447 760 0 15,207 Other Expense .............................................................................. 31,694 1,668 0 33,362 Purchased Services ...................................................................... 2,100 300 0 2,400 See ya later, refrigerator® ................................................................ 634,967 19,426 0 654,393 Customer Incentives ...................................................................... 95,460 2,610 0 98,070 Labor/Administration Expense ....................................................... 47,575 2,487 0 50,062 Other Expense .............................................................................. 59,747 3,145 0 62,892 Purchased Services ...................................................................... 432,185 11,184 0 443,369 Weatherization Assistance for Qualified Customers ..................... 0 0 1,324,415 1,324,415 Labor/Administration Expense ....................................................... 0 0 49,031 49,031 Other Expense .............................................................................. 0 0 552 552 Purchased Services ...................................................................... 0 0 1,274,832 1,274,832 Weatherization Solutions for Eligible Customersa ........................ 774,254 (2,306) 16,200 788,148 Labor/Administration Expense ....................................................... 6,222 0 16,200 22,422 Other Expense .............................................................................. 806 0 0 806 Purchased Servicesa ..................................................................... 767,226 (2,306) 0 764,920 Commercial/Industrial Building Efficiency .......................................................................... 1,277,422 14,003 0 1,291,425 Customer Incentives ...................................................................... 1,010,086 0 0 1,010,086 Labor/Administration Expense ....................................................... 135,187 7,114 0 142,301 Other Expense .............................................................................. 18,544 910 0 19,454 Purchased Services ...................................................................... 113,605 5,979 0 119,584 Comprehensive Lighting ................................................................. 2,404 0 0 2,404 Labor/Administration Expense ....................................................... 2,303 0 0 2,303 Other Expense .............................................................................. 101 0 0 101 Easy Upgrades ................................................................................. 4,598,019 121,447 0 4,719,466 Customer Incentives ...................................................................... 3,823,896 80,696 0 3,904,592 Labor/Administration Expense ....................................................... 385,429 20,291 0 405,720 Materials & Equipment .................................................................. 146 8 0 154 Supplement 1: Cost-Effectiveness Idaho Power Company Page 8 Demand-Side Management 2011 Annual Report Table 2. 2011 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Other Expense .............................................................................. $ 29,755 $ 1,566 $ 0 $ 31,321 Purchased Services ...................................................................... 358,793 18,886 0 377,679 FlexPeak Management .................................................................... 1,954,850 102,880 0 2,057,730 Customer Incentives ...................................................................... 1,895,034 99,739 0 1,994,773 Labor/Administration Expense ....................................................... 54,915 2,884 0 57,799 Other Expense .............................................................................. 13 0 0 13 Purchased Services ...................................................................... 4,888 257 0 5,145 Holiday Lighting ............................................................................... 2,568 0 0 2,568 Customer Incentives ...................................................................... 2,568 0 0 2,568 Oregon Commercial Audits ............................................................. 0 13,597 0 13,597 Labor/Administration Expense ....................................................... 0 7,299 0 7,299 Other Expense .............................................................................. 0 973 0 973 Purchased Services ...................................................................... 0 5,325 0 5,325 Custom Efficiency ........................................................................... 413,959 1,385,613 6,984,239 8,783,811 Customer Incentivesb .................................................................... (526,661) 1,272,003 6,984,239 7,729,581 Labor/Administration Expense ....................................................... 428,670 22,550 0 451,220 Other Expense .............................................................................. 81,001 3,826 0 84,827 Purchased Services ...................................................................... 430,949 87,234 0 518,183 Irrigation Irrigation Efficiency Rewards ......................................................... 2,153,613 176,619 30,072 2,360,304 Customer Incentives ...................................................................... 1,900,731 163,372 0 2,064,103 Labor/Administration Expense ....................................................... 234,805 12,353 30,072 277,230 Materials & Equipment .................................................................. 393 21 0 414 Other Expense .............................................................................. 16,102 848 0 16,950 Purchased Services ...................................................................... 1,582 25 0 1,607 Irrigation Peak Rewards .................................................................. 11,790,216 254,013 41,993 12,086,222 Customer Incentives ...................................................................... 10,127,328 236,715 0 10,364,043 Labor/Administration Expense ....................................................... 55,720 2,932 41,993 100,645 Materials & Equipment .................................................................. 937 49 0 986 Other Expense .............................................................................. 32,349 1,703 0 34,052 Purchased Services ...................................................................... 1,573,882 12,614 0 1,586,496 Energy Efficiency Total ....................................................................... 30,471,969 2,335,883 8,398,155 41,206,007 Market Transformation NEEAc ............................................................................................... 2,952,973 155,420 0 3,108,393 Purchased Services ...................................................................... 2,952,973 155,420 0 3,108,393 Market Transformation Total .............................................................. 2,952,973 155,420 0 3,108,393 Other Programs and Activities Residential Residential Economizer .................................................................. 101,612 101 0 101,713 Labor/Administration Expense ....................................................... 24,595 0 0 24,595 Materials & Equipment .................................................................. 1,920 101 0 2,021 Other Expense .............................................................................. 1,272 0 0 1,272 Purchased Services ...................................................................... 73,825 0 0 73,825 Residential Energy Efficiency Education Initiative ....................... 151,791 7,854 0 159,645 Labor/Administration Expense ....................................................... 96,709 5,089 0 101,798 Materials & Equipment .................................................................. 1,730 91 0 1,821 Other Expense .............................................................................. 53,352 2,674 0 56,026 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 9 Table 2. 2011 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Commercial Commercial Education Initiative ..................................................... $ 85,340 $ 4,516 $ 0 $ 89,856 Labor/Administration Expense ....................................................... 72,251 3,827 0 76,078 Materials & Equipment .................................................................. 503 27 0 530 Other Expense .............................................................................. 10,568 556 0 11,124 Purchased Services ...................................................................... 2,018 106 0 2,124 Other Energy Efficiency Direct Program Overhead ................................. 199,957 10,520 0 210,477 Labor/Administration Expense ....................................................... 84,951 4,472 0 89,423 Other Expense .............................................................................. 81,416 4,280 0 85,696 Purchased Services ...................................................................... 33,590 1,768 0 35,358 Local Energy Efficiency Funds ....................................................... 1,026 0 0 1,026 Customer Incentives ...................................................................... 1,026 0 0 1,026 Other Programs and Activities Total .................................................. 539,726 22,991 0 562,717 Indirect Program Expenses Residential Overhead ...................................................................... 167,477 8,824 0 176,301 Labor/Administration Expense ....................................................... 134,730 7,069 0 141,799 Other Expense .............................................................................. 4,750 250 0 5,000 Purchased Services ...................................................................... 27,997 1,505 0 29,502 Commercial/Industrial/Irrigation Overhead .................................... 178,255 9,384 0 187,639 Labor/Administration Expense ....................................................... 159,306 8,355 0 167,661 Materials & Equipment .................................................................. 460 24 0 484 Purchased Services ...................................................................... 18,489 1,005 0 19,494 Energy Efficiency Accounting and Analysis ................................. 633,972 33,686 136,212 803,870 Labor/Administration Expense ....................................................... 397,022 20,891 129,162 547,075 Materials & Equipment .................................................................. 21 1 0 22 Other Expense .............................................................................. 16756 882 7,050 24,688 Purchased Services ...................................................................... 220,173 11,912 0 232,085 Energy Efficiency Advisory Group ................................................. 3,206 169 0 3,375 Labor/Administration Expense ....................................................... 2,539 134 0 2,673 Other Expense .............................................................................. 667 35 0 702 Special Accounting Entries ............................................................ 148,962 533 68,455 217,950 Indirect Program Expenses Total ....................................................... 1,131,872 52,596 204,667 1,389,135 Totals.................................................................................................... $ 35,096,540 $ 2,566,890 $ 8,602,822 $ 46,266,252 a Reclassify 2010 Oregon Rider balance of ($2,306) to the Idaho Rider. b Idaho Rider Custom Efficiency includes reclassification of $526,781 from the Idaho Rider to the Oregon Rider, (4 projects from 2010). Idaho Power balance of $6,984,239 for Idaho Custom Efficiency incentives, not included in base rates for 2011. (see footnote in Appendix 1). c NEEA Funding addressed in IPUC per Order No. 31080, dated 5/12/10. 2012 annual expense expected at $3.7 million (see footnote in Appendix 1). d Residential Economizer Oregon Rider balance $101, to be reclassified to Idaho Rider in 2012. e Special Accounting Entries, Idaho Power accrual amount of $34,146, not included in base rates for 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 10 Demand-Side Management 2011 Annual Report Table 3. Cost-effectiveness summary by program 2011 Benefit/Cost Tests Program Utility Cost (UC) Total Resource Cost (TRC) Ratepayer Impact Measure (RIM) Participant Cost (PCT) A/C Cool Credit .......................................................... 1.10 1.10 1.12 N/A FlexPeak Management ............................................... 1.19 1.19 1.20 N/A Irrigation Peak Rewards ............................................. 1.72 1.64 1.90 N/A Ductless Heat Pump Pilot ........................................... 3.09 1.24 1.06 1.22 Energy Efficient Lighting ............................................. 3.99 2.48 0.84 3.21 Energy House Calls .................................................... 2.44 2.44 0.81 N/A ENERGY STAR ® Homes Northwest ......................... 3.72 1.79 1.01 2.02 Heating & Cooling Efficiency Program ........................ 4.83 1.78 1.20 1.67 Home Improvement Program ...................................... 2.64 0.76 0.97 0.76 Home Products Program ............................................ 2.04 1.06 0.81 1.33 Rebate Advantage ...................................................... 2.90 2.28 0.87 5.79 See ya later, refrigerator® ........................................... 1.52 1.52 0.66 N/A Weatherization Assistance for Qualified Customers .... 2.67 1.29 0.90 N/A Weatherization Solutions for Eligible Customers ......... 1.84 1.84 0.78 N/A Building Efficiency ...................................................... 5.91 2.62 1.41 2.03 Custom Efficiency ....................................................... 4.42 2.37 1.86 1.34 Easy Upgrades ........................................................... 5.44 3.00 1.38 2.44 Irrigation Efficiency ..................................................... 4.71 1.55 1.59 1.24 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 11 COST-EFFECTIVENESS TABLES BY PROGRAM A/C Cool Credit Segment: Residential 20-Year Program Cost-Effectiveness Summary Program Inception: 2003 Cost Inputs (net-present value [NPV]) Ref Summary of Cost-Effectiveness Results Total Program Administration .............................................. $ 23,904,459 Test Benefit Cost Ratio Total Program Incentives .................................................... 9,285,774 I Utility Cost Test ................................... $ 37,186,165 $ 33,948,331 1.10 Total Utility Cost ................................................................. $ 33,190,233 P Total Resource Cost Test ................... 37,186,165 33,948,331 1.10 Ratepayer Impact Measure Test ......... 37,186,165 33,190,233 1.12 Total Shifted Energy Utility Cost ........................................... $ 758,098 SE Participant Cost Test ........................... N/A N/A N/A Total Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ — M Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test ........................................ = S = P + SE Cumulative Energy (kWh) ............................. 17,751,173 $ 1,734,556 Total Resource Cost Test ......................... = S + NUI + NEB = P + M + SE 2022 Reduction Capacity (MW)..................... 38 35,451,609 Ratepayer Impact Measure Test .............. = S = P + B Total Electric Savings .................................... $ 37,186,165 S Participant Cost Test ................................ N/A N/A Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings................................. $ — B Discount Rate Nominal (Weighted Average Cost of Capital [WACC]) ..................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) - 1 .......................................... 3.88% Non-Utility Rebates/Incentives .......................................... $ — NUI Escalation Rate ..................................................................................... 3.00% Non-Electric Benefits ........................................................ $ — NEB Effective Load Carrying Capacity (ELCC) .............................................. 93.40% Summer Peak Line Loss (for Demand Response) ................................. 13.00% Line Losses ........................................................................................... 10.90% Notes: 2022 Reduction capacity based on the assumption of 40,000 participants at an average realized load reduction of 0.84 kW (0.95 kW with Summer Peak Line Loss of 13%). 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Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 13 FlexPeak Management Segment: Commercial/Industrial 10-Year Program Cost-Effectiveness Summary Program Inception: 2009 Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Total Program Administration .............................................. $ 581,847 Test Benefit Cost Ratio Total Program Incentives .................................................... 29,965,837 I Utility Cost Test ................................... $ 36,551,819 $ 30,629,291 1.19 Total Utility Cost ................................................................. $ 30,547,684 P Total Resource Cost Test ................... 36,551,819 30,629,291 1.19 Ratepayer Impact Measure Test ......... 36,551,819 30,547,684 1.20 Total Shifted Energy Utility Cost ........................................... $ 81,607 SE Participant Cost Test ........................... N/A N/A N/A Total Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ — M Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test ........................................ = S = P + SE Cumulative Energy (kWh) ............................. 22,288,236 $ 1,972,011 Total Resource Cost Test ......................... = S + NUI + NEB = P + M + SE 2019 Reduction Capacity (MW)..................... 57 34,579,808 Ratepayer Impact Measure Test .............. = S = P + B Total Electric Savings .................................... $ 36,551,819 S Participant Cost Test ................................ N/A N/A Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings................................. $ — B Discount Rate Nominal (Weighted Average Cost of Capital [WACC]) ..................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) - 1 .......................................... 3.88% Non-Utility Rebates/Incentives .......................................... $ — NUI Escalation Rate ..................................................................................... 3.00% Non-Electric Benefits ........................................................ $ — NEB Effective Load Carrying Capacity (ELCC) .............................................. 93.40% Summer Peak Line Loss (for Demand Response) ................................. 13.00% Line Losses ........................................................................................... 10.90% Notes: 2019 Reduction capacity based on contractual target to achieve 50 MW (57 MW with Summer Peak Line Loss of 13%). 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Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 15 Irrigation Peak Rewards Segment: Irrigation 20-Year Program Cost-Effectiveness Summary Program Inception: 2009 Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Total Program Administration .............................................. $ 16,072,564 Test Benefit Cost Ratio Total Program Incentives .................................................... 175,950,555 I Utility Cost Test ................................... $ 365,066,962 $ 211,898,973 1.72 Total Utility Cost ................................................................. $ 192,023,119 P Total Resource Cost Test ................... 365,066,962 223,043,414 1.64 Ratepayer Impact Measure Test ......... 365,066,962 192,023,119 1.90 Total Shifted Energy Utility Cost ........................................... $ 19,875,854 SE Participant Cost Test ........................... N/A N/A N/A Total Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 11,144,441 M Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test ........................................ = S = P + SE Cumulative Energy (kWh) ......................... 204,887,880 $ 23,473,783 Total Resource Cost Test ......................... = S + NUI + NEB = P + M + SE 2029 Reduction Capacity (MW)................. 326 341,593,179 Ratepayer Impact Measure Test .............. = S = P + B Total Electric Savings ................................ $ 365,066,962 S Participant Cost Test ................................ N/A N/A Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings................................. $ — B Discount Rate Nominal (Weighted Average Cost of Capital [WACC]) ..................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) - 1 .......................................... 3.88% Non-Utility Rebates/Incentives .......................................... $ — NUI Escalation Rate ..................................................................................... 3.00% Non-Electric Benefits ........................................................ $ — NEB Effective Load Carrying Capacity (ELCC) .............................................. 93.40% Summer Peak Line Loss (for Demand Response) ................................. 13.00% Line Losses ........................................................................................... 10.90% Notes: Because of the fixed and variable incentive structure, the nature of summer peak loads, and the weather in 2011, the program was not dispatched in 2011. 2029 Reduction capacity based on the assumption that the available capacity will increase slightly in 2012 over 2011 and remain constant until 2029. Supplement 1: Cost-Effectiveness Idaho Power Company Page 16 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 17 Ductless Heat Pump Pilot Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 78,433 Test Benefit Cost Ratio Program Incentives ............................................................. 112,750 I Utility Cost Test ................................... $ 591,603 $ 191,183 3.09 Total Utility Cost ................................................................. $ 191,183 P Total Resource Cost Test ................... 591,603 478,263 1.24 Ratepayer Impact Measure Test ......... 591,603 560,521 1.06 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 471,600 M Participant Cost Test ........................... 574,422 471,600 1.22 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 458,500 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 5,961,609 $ 739,504 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 739,504 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 461,672 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 18 Demand-Side Management 2011 Annual Report Year: 2011 Program: Ductless Heat Pump Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Ductless Heat Pump High-Efficiency Ductless Split Heat Pump System—Existing Single Family w/ Zonal Electric Heat Zonal Electric Unit Heating & Cooling 20 80% 3,500.00 $5,285.77 $ — $3,407.11 $750.00 $0.171 3.14 1.22 1 Ductless Heat Pump High-Efficiency Ductless Split Heat Pump System—Existing Single Family w/ Electric FAC w/ or w/o CAC Electric Forced-air Furnace w/ or w/o Central A/C Unit Heating & Cooling 20 80% 3,500.00 $5,285.77 $ — $3,407.11 $750.00 $0.171 3.14 1.22 1 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. DHP_Provisional_Existing_FY10v1_2.xls. 2010. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 19 Energy Efficient Lighting Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 320,898 Test Benefit Cost Ratio Program Incentives ............................................................. 1,398,235 I Utility Cost Test ................................... $ 6,850,821 $ 1,719,133 3.99 Total Utility Cost ................................................................. $ 1,719,133 P Total Resource Cost Test ................... 6,850,821 2,764,623 2.48 Ratepayer Impact Measure Test ......... 6,850,821 8,168,003 0.84 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 2,443,725 M Participant Cost Test ........................... 7,847,105 2,443,725 3.21 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 19,694,381 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 98,478,811 $ 6,850,821 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 6,850,821 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 6,448,870 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) .......................................................................................... 100% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: No NTG. Deemed savings from the Regional Technical Forum (RTF) already accounts for net realized energy savings. Supplement 1: Cost-Effectiveness Idaho Power Company Page 20 Demand-Side Management 2011 Annual Report Year: 2011 Program: Energy Efficient Lighting Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source CFL Specialty Bulb—Retail 3-way CFL Incandescent bulb Bulb Lighting 7 100% 22.00 $10.19 $ — $5.23 $2.00 $0.016 4.33 1.83 1 CFL Specialty Bulb—Retail Dimmable Incandescent bulb Bulb Lighting 7 100% 23.00 $10.66 $ — $7.22 $2.00 $0.016 4.50 1.40 1 CFL Specialty Bulb—Retail A-lamps Incandescent bulb Bulb Lighting 7 100% 25.00 $11.58 $ — $3.68 $2.00 $0.016 4.83 2.84 1 CFL Specialty Bulb—Retail Cold cathode candelabra Incandescent bulb Bulb Lighting 12 100% 14.50 $11.37 $ — $5.21 $2.00 $0.016 5.09 2.09 1 CFL Specialty Bulb—Retail CFL candelabra Incandescent bulb Bulb Lighting 6 100% 19.00 $7.52 $ — $1.59 $2.00 $0.016 3.26 3.97 1 CFL Specialty Bulb—Retail Daylight CFL Incandescent bulb Bulb Lighting 7 100% 23.00 $10.66 $ — $2.13 $2.00 $0.016 4.50 4.27 1 CFL Specialty Bulb—Retail Dimmable Reflector Incandescent bulb Bulb Lighting 8 100% 26.00 $13.77 $ — $11.92 $2.00 $0.016 5.70 1.12 1 CFL Specialty Bulb—Retail Globe Incandescent bulb Bulb Lighting 6 100% 13.00 $5.15 $ — $1.79 $2.00 $0.016 2.33 2.58 1 CFL Specialty Bulb—Retail Reflector CFL Incandescent bulb Bulb Lighting 8 100% 25.00 $13.24 $ — $0.60 $2.00 $0.016 5.52 13.24 1 CFL Specialty Bulb—Retail T2 twist Incandescent bulb Bulb Lighting 7 100% 25.00 $11.58 $ — $2.22 $2.00 $0.016 4.83 4.42 1 CFL Specialty Bulb—Retail High wattage Incandescent bulb Bulb Lighting 9 100% 38.00 $22.61 $ — $3.36 $2.00 $0.016 8.67 5.70 1 CFL Specialty Bulb—Retail Any specialty bulb Incandescent bulb Bulb Lighting 7 100% 19.00 $8.80 $ — $1.76 $2.00 $0.016 3.82 4.26 1 CFL Spiral Bulb—Retailer Spiral Bulb Incandescent bulb Bulb Lighting 6 100% 16.00 $6.33 $ — $2.75 $1.45 $0.016 3.71 2.11 2 a Average measure life. b No NTG percentage. Deemed savings from RTF includes realization rate. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. ResSpecialtyLighting_v1_1.xlsm. Residential lighting. Any location. 2011. 2 RTF. ResCFLLighting_v2_1.xlsm. Any Interior or Exterior Application. 2011. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 21 Energy House Calls Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 483,375 Test Benefit Cost Ratio Program Incentives ............................................................. — I Utility Cost Test ................................... $ 1,473,747 $ 483,375 2.44 Total Utility Cost ................................................................. $ 483,375 P Total Resource Cost Test ................... 1,473,747 483,375 2.44 Ratepayer Impact Measure Test ......... 1,473,747 1,705,779 0.81 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ — M Participant Cost Test ........................... N/A N/A N/A Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 1,214,004 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 15,742,485 $ 1,473,747 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 1,473,747 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ N/A N/A NPV Cumulative Participant Savings............. $ 1,222,404 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: Increased deemed savings from the RTF and lower administration costs increased program cost-effectiveness over 2010. No participant cost. Supplement 1: Cost-Effectiveness Idaho Power Company Page 22 Demand-Side Management 2011 Annual Report Year: 2011 Program: Energy House Calls Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 1 (average heating system) Pre-existing duct leakage Home Heating 20 80% 1,082.00 $1,229.57 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 1 (electric FAF heating system w/CAC) Pre-existing duct leakage Home Heating 20 80% 1,223.00 $1,389.80 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 1 (electric FAF heating system w/o CAC) Pre-existing duct leakage Home Heating 20 80% 1,177.00 $1,337.52 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 1 (electric heat pump heating system) Pre-existing duct leakage Home Heating 20 80% 708.00 $804.56 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 2 (average heating system) Pre-existing duct leakage Home Heating 20 80% 1,806.00 $2,052.31 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 2 (electric FAF heating system w/CAC) Pre-existing duct leakage Home Heating 20 80% 1,984.00 $2,254.58 $ – $ – $ – $0.398 2.28 2.28 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 23 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non-Electric Benefit Gross Incremental Participant Costf Incentive/Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 2 (electric FAF heating system w/o CAC) Pre-existing duct leakage Home Heating 20 80% 1,926.00 $2,188.67 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 2 (electric heat pump heating system) Pre-existing duct leakage Home Heating 20 80% 1,334.00 $1,515.93 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 3 (average heating system) Pre-existing duct leakage Home Heating 20 80% 2,426.00 $2,756.86 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 3 (electric FAF heating system w/CAC) Pre-existing duct leakage Home Heating 20 80% 2,599.00 $2,953.46 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 3 (electric FAF heating system w/o CAC) Pre-existing duct leakage Home Heating 20 80% 2,562.00 $2,911.41 $ – $ – $ – $0.398 2.28 2.28 1 Duct Sealing Manufactured home duct tightness—PTCS duct sealing—heating zone 3 (electric heat pump heating system) Pre-existing duct leakage Home Heating 20 80% 1,914.00 $2,175.04 $ – $ – $ – $0.398 2.28 2.28 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 24 Demand-Side Management 2011 Annual Report a Average measure life. b NTG percentage. Idaho Power Demand-Side management Potential Study. Nexant, Inc., 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f No participant cost. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. Res_MHDuctSealingFY10v2_2.xls. 2011. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 25 ENERGY STAR® Homes Northwest Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 87,162 Test Benefit Cost Ratio Program Incentives ............................................................. 172,600 I Utility Cost Test ................................... $ 967,191 $ 259,762 3.72 Total Utility Cost ................................................................. $ 259,762 P Total Resource Cost Test ................... 967,191 541,633 1.79 Ratepayer Impact Measure Test ......... 967,191 954,940 1.01 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 564,087 M Participant Cost Test ........................... 1,138,126 564,087 2.02 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 728,030 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 11,287,387 $ 1,343,321 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 1,343,321 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 965,526 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives Benefits ............................. $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) .......................................................................................... 72% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: 2006 International Energy Conservation Code (IECC) adopted in Idaho in 2008. 2009 IECC code adopted in Idaho in 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 26 Demand-Side Management 2011 Annual Report Year: 2011 Program: ENERGY STAR Homes Northwest Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR home ENERGY STAR home initiated between January 1, 2008 and December 31, 2010. Single-family home built to International Energy Conservation Code (IECC) 2006 Code. Adopted in 2008. Home Residential 25 72% 1,402.00 2.40 $2,399.97 $ – $723.00 $400.00 $0.120 3.04 2.16 1 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/zonal heat—heating zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 41 72% 4,752.00 $10,571.52 $ – $4,501.00 $1,000.00 $0.120 4.85 1.86 2 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/zonal heat—heating zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 42 72% 6,536.00 $14,685.77 $ – $4,501.00 $1,000.00 $0.120 5.93 2.46 2 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/zonal heat—heating zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 43 72% 7,470.00 $16,944.07 $ – $4,501.00 $1,000.00 $0.120 6.43 2.76 2 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 1 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 36 72% 3,555.00 $7,461.72 $ – $3,403.91 $1,000.00 $0.120 3.77 1.70 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 1 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 36 72% 3,633.00 $7,625.44 $ – $3,403.91 $1,000.00 $0.120 3.82 1.73 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 27 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 1 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 37 72% 3,778.00 $8,032.81 $ – $3,403.91 $1,000.00 $0.120 3.98 1.82 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 2 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 39 72% 5,266.00 $11,466.14 $ – $3,403.91 $1,000.00 $0.120 5.06 2.46 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 2 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 39 72% 5,344.00 $11,635.98 $ – $3,403.91 $1,000.00 $0.120 5.10 2.48 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 2 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 39 72% 5,489.00 $11,951.70 $ – $3,403.91 $1,000.00 $0.120 5.19 2.54 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 3 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 6,710.00 $14,772.04 $ – $3,403.91 $1,000.00 $0.120 5.89 3.01 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 3 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 6,787.00 $14,941.56 $ – $3,403.91 $1,000.00 $0.120 5.93 3.03 3 ENERGY STAR home ENERGY STAR Home in Idaho or Montana w/heat pump—heating zone 3 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 6,932.00 $15,260.78 $ – $3,403.91 $1,000.00 $0.120 6.00 3.08 3 Supplement 1: Cost-Effectiveness Idaho Power Company Page 28 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 1 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 38 72% 5,079.00 $10,931.62 $ – $4,889.55 $1,000.00 $0.120 4.89 1.78 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 1 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 37 72% 4,996.00 $10,622.53 $ – $4,889.55 $1,000.00 $0.120 4.78 1.74 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 1 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 37 72% 4,844.00 $10,299.35 $ – $4,889.55 $1,000.00 $0.120 4.69 1.69 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 2 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 7,165.00 $15,773.73 $ – $4,889.55 $1,000.00 $0.120 6.11 2.44 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 2 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 7,082.00 $15,591.00 $ – $4,889.55 $1,000.00 $0.120 6.07 2.41 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 2 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 6,930.00 $15,256.37 $ – $4,889.55 $1,000.00 $0.120 6.00 2.37 4 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 29 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 3 cooling zone 1 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 8,248.00 $18,157.95 $ – $4,889.55 $1,000.00 $0.120 6.57 2.73 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 3 cooling zone 2 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 8,165.00 $17,975.22 $ – $4,889.55 $1,000.00 $0.120 6.54 2.71 4 ENERGY STAR home ENERGY STAR Home in Idaho or Montana built to the DHP TCO—heating zone 3 cooling zone 3 Single-family home built to IECC 2009 Code. Adopted 2011. Home Residential 40 72% 8,013.00 $17,640.59 $ – $4,889.55 $1,000.00 $0.120 6.48 2.67 4 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 Energy Savings and Peak Load Impacts of the Northwest Energy Star ® Program in Idaho Climate Zones IECC 2006 Base Standards for Idaho Power Company by Ecotope, Inc. Table 3. 2 RTF. EStarNWSFHomes_IDMTbop2_v1_1.xls. 2010. 3 RTF. EStarNWSFHomes_WAIDMT_FY10v2_0.xls. 2010. 4 RTF. EStarNWSFHomes_DHPtco_WAIDMT_v1_0.xls. 2010. 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Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 31 Heating & Cooling Efficiency Program Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 137,720 Test Benefit Cost Ratio Program Incentives ............................................................. 58,050 I Utility Cost Test ................................... $ 946,314 $ 195,770 4.83 Total Utility Cost ................................................................. $ 195,770 P Total Resource Cost Test ................... 946,314 530,772 1.78 Ratepayer Impact Measure Test ......... 946,314 786,554 1.20 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 476,803 M Participant Cost Test ........................... 796,530 476,803 1.67 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 733,405 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 9,536,038 $ 1,182,892 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 1,182,892 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 738,480 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives Benefits ............................. $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 32 Demand-Side Management 2011 Annual Report Year: 2011 Program: Heating & Cooling Efficiency Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source A/C/Heat Pump Units Evaporative cooler single family Central A/C Unit Cooling 12 80% 1,393.73 $2,151.72 $ – $ – $150.00 $0.188 4.18 4.18 1 A/C/Heat Pump Units Evaporative cooler manufactured home Central A/C Unit Cooling 12 80% 1,393.73 $2,151.72 $ – $ – $150.00 $0.188 4.18 4.18 1 A/C/Heat Pump Units Open-loop water source heat pump—14.00 EER 3.5 COP Electric resistance Unit Heating & cooling 20 80% 8,927.00 $13,481.73 $ – $1,650.00 $1,000.00 $0.188 4.03 3.37 2, 3 A/C/Heat Pump Units Open-loop water source heat pump—3.5 COP Oil/Propane system Unit Heating & cooling 20 80% 8,927.00 $13,481.73 $ – $2,050.00 $1,000.00 $0.188 4.03 3.07 2, 3 A/C/Heat Pump Units New construction open-loop water source heat pump—14.00 EER 3.5 COP Electric resistance Unit Heating & cooling 20 80% 8,927.00 $13,481.73 $ – $5,550.00 $1,000.00 $0.188 4.03 1.71 2, 3 A/C/Heat Pump Units Open-loop water source heat pump—14.00 EER 3.5 COP Air-source heat pump Unit Heating & cooling 20 80% 2,648.00 $3,999.06 $ – $600.00 $500.00 $0.188 3.21 2.97 2, 3 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.20 HSPF heating zone 1 cooling zone 3 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 4,165.00 $6,290.06 $ – $4,554.00 $300.00 $0.188 4.65 1.12 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 1 Forced-air furnace w/central A/C Unit Heating & cooling 20 80% 5,306.00 $8,013.22 $ – $4,554.00 $400.00 $0.188 4.59 1.36 4, 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 33 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 2 Forced-air furnace w/central A/C Unit Heating & cooling 20 80% 6,961.00 $10,512.63 $ – $4,554.00 $400.00 $0.188 4.92 1.67 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 3 Forced-air furnace w/central A/C Unit Heating & cooling 20 80% 7,876.00 $11,894.49 $ – $4,554.00 $400.00 $0.188 5.06 1.83 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 1 cooling zone 1 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 5,064.00 $7,647.75 $ – $4,554.00 $400.00 $0.188 4.53 1.31 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 1 cooling zone 2 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 4,796.00 $7,243.01 $ – $4,554.00 $400.00 $0.188 4.45 1.25 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 1 cooling zone 3 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 4,380.00 $6,614.76 $ – $4,554.00 $400.00 $0.188 4.33 1.16 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 2 cooling zone 1 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 6,719.00 $10,147.16 $ – $4,554.00 $400.00 $0.188 4.88 1.63 4, 5 Supplement 1: Cost-Effectiveness Idaho Power Company Page 34 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 2 cooling zone 2 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 6,451.00 $9,742.42 $ – $4,554.00 $400.00 $0.188 4.83 1.58 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 2 cooling zone 3 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 6,035.00 $9,114.17 $ – $4,554.00 $400.00 $0.188 4.75 1.50 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 3 cooling zone 1 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 7,634.00 $11,529.01 $ – $4,554.00 $400.00 $0.188 5.03 1.79 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 3 cooling zone 2 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 7,366.00 $11,124.27 $ – $4,554.00 $400.00 $0.188 4.99 1.74 4, 5 A/C/Heat Pump Units Single-family home HVAC conversions—convert to heat pump 8.50 HSPF heating zone 3 cooling zone 3 Forced-air furnace w/o central A/C Unit Heating & cooling 20 80% 6,950.00 $10,496.02 $ – $4,554.00 $400.00 $0.188 4.92 1.67 4, 5 A/C/Heat Pump Units Existing single-family home heat pump: upgraded to 8.20 HSPF Heat pump Unit Heating & cooling 20 80% 4,079.67 $6,161.19 $ – $970.17 $200.00 $0.188 5.10 3.11 2, 6 A/C/Heat Pump Units Existing single-family home heat pump: upgraded to 8.50 HSPF Heat pump Unit Heating & cooling 20 80% 4,176.67 $6,307.68 $ – $2,093.47 $250.00 $0.188 4.87 2.01 2, 6 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 35 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 Idaho Power Demand-Side Management Potential Study by Nexant, Inc. IPC DSM Potential—Residential Model Updated 081209.xlsm. 2009. 2 Savings from Ecotope, Inc., Heat Pump Sizing Specifications and Heat Pump Measure Savings Estimates. December 2009. 3 Costs from Portland Energy Conservation, Inc (PECI) program development and research. August 2007. 4 Savings from RTF. Res_SFHeatPumpsFY10v2_3.xls. 2010. 5 Costs from RTF. Res_SFHeatPumpsFY10v2_3.xls. 2010. 6 Costs from RTF presentation, Demand Measure Update: Revisited Heat Pumps (Weatherization, Duct Sealing). August 3, 2010. Supplement 1: Cost-Effectiveness Idaho Power Company Page 36 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 37 Home Improvement Program Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 179,168 Test Benefit Cost Ratio Program Incentives ............................................................. 486,873 I Utility Cost Test ................................... $ 1,757,232 $ 666,041 2.64 Total Utility Cost ................................................................. $ 666,041 P Total Resource Cost Test ................... 1,757,232 2,297,061 0.76 Ratepayer Impact Measure Test ......... 1,757,232 1,802,756 0.97 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 2,525,648 M Participant Cost Test ........................... 1,907,767 2,525,648 0.76 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 917,519 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 15,321,338 $ 2,196,541 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 2,196,541 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 1,420,894 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: TRC would be higher if additional non-electric benefits (e.g., gas savings) were included. However, this was not pursued since most of the non-cost-effective measures failed the UC test, and all non-cost-effective attic insulation measures for non-electrically heated homes will be removed from the program as of April 1, 2012. Supplement 1: Cost-Effectiveness Idaho Power Company Page 38 Demand-Side Management 2011 Annual Report Year: 2011 Program: Home Improvement Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R0 to R19. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 1.66 $3.95 $ – $0.40 $0.15 $0.195 6.66 4.69 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R19. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 2.20 $5.23 $ – $0.40 $0.15 $0.195 7.22 5.37 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R19. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 2.25 $5.36 $ – $0.40 $0.15 $0.195 7.27 5.43 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R19. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 2.62 $6.21 $ – $0.40 $0.15 $0.195 7.53 5.78 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R38. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 2.28 $5.41 $ – $0.80 $0.15 $0.195 7.28 3.89 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 39 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R0 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 3.01 $7.16 $ – $0.80 $0.15 $0.195 7.76 4.56 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 3.09 $7.34 $ – $0.80 $0.15 $0.195 7.80 4.62 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R38. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 3.58 $8.51 $ – $0.80 $0.15 $0.195 8.02 4.98 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R49. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 2.42 $5.75 $ – $1.03 $0.15 $0.195 7.39 3.47 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 3.20 $7.61 $ – $1.03 $0.15 $0.195 7.86 4.12 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 40 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R0 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 3.28 $7.80 $ – $1.03 $0.15 $0.195 7.89 4.18 1 Attic insulation Single-family home Weatherization: insulate attic R0 to R49. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 3.81 $9.05 $ – $1.03 $0.15 $0.195 8.11 4.53 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R30. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.44 $1.06 $ – $0.23 $0.15 $0.195 3.57 2.80 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R30. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.59 $1.40 $ – $0.23 $0.15 $0.195 4.22 3.39 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R30. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.60 $1.43 $ – $0.23 $0.15 $0.195 4.28 3.45 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 41 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R19 to R30. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.70 $1.66 $ – $0.23 $0.15 $0.195 4.64 3.78 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R38. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.61 $1.46 $ – $0.40 $0.15 $0.195 4.33 2.49 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.81 $1.93 $ – $0.40 $0.15 $0.195 5.01 3.04 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.83 $1.98 $ – $0.40 $0.15 $0.195 5.07 3.09 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R38. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.97 $2.30 $ – $0.40 $0.15 $0.195 5.43 3.41 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 42 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R19 to R49. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 0.76 $1.80 $ – $0.63 $0.15 $0.195 4.84 2.11 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 1.00 $2.38 $ – $0.63 $0.15 $0.195 5.51 2.61 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 1.03 $2.44 $ – $0.63 $0.15 $0.195 5.58 2.66 1 Attic insulation Single-family home Weatherization: insulate attic R19 to R49. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 1.19 $2.83 $ – $0.63 $0.15 $0.195 5.92 2.95 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R38. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.17 $0.40 $ – $0.17 $0.15 $0.195 1.76 1.63 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 43 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R30 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.22 $0.53 $ – $0.17 $0.15 $0.195 2.20 2.05 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R38. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.23 $0.55 $ – $0.17 $0.15 $0.195 2.25 2.09 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R38. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.27 $0.63 $ – $0.17 $0.15 $0.195 2.51 2.34 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R49. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.31 $0.74 $ – $0.40 $0.15 $0.195 2.82 1.45 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.41 $0.98 $ – $0.40 $0.15 $0.195 3.41 1.83 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 44 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R30 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.43 $1.01 $ – $0.40 $0.15 $0.195 3.47 1.87 1 Attic insulation Single-family home Weatherization: insulate attic R30 to R49. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.49 $1.17 $ – $0.40 $0.15 $0.195 3.81 2.10 1 Attic insulation Single-family home Weatherization: insulate attic R38 to R49. Average heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R38 to R49 ft2 Heating & cooling 45 80% 0.14 $0.34 $ – $0.23 $0.15 $0.195 1.53 1.12 1 Attic insulation Single-family home Weatherization: insulate attic R38 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R38 to R49 ft2 Heating & cooling 45 80% 0.19 $0.45 $ – $0.23 $0.15 $0.195 1.93 1.43 1 Attic insulation Single-family home Weatherization: insulate attic R38 to R49. Average heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R38 to R49 ft2 Heating & cooling 45 80% 0.19 $0.46 $ – $0.23 $0.15 $0.195 1.97 1.46 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 45 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home Weatherization: insulate attic R38 to R49. Average heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R38 to R49 ft2 Heating & cooling 45 80% 0.23 $0.54 $ – $0.23 $0.15 $0.195 2.21 1.66 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating 45 80% 1.50 $2.84 $ – $0.40 $0.15 $0.195 5.14 3.54 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R19 ft2 Heating 45 80% 2.09 $3.97 $ – $0.40 $0.15 $0.195 5.68 4.19 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating 45 80% 2.09 $3.97 $ – $0.40 $0.15 $0.195 5.68 4.19 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R19 ft2 Heating 45 80% 2.54 $4.82 $ – $0.40 $0.15 $0.195 5.96 4.56 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 46 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R38. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating 45 80% 2.06 $3.90 $ – $0.80 $0.15 $0.195 5.65 2.91 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R38 ft2 Heating 45 80% 2.87 $5.43 $ – $0.80 $0.15 $0.195 6.13 3.54 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating 45 80% 2.87 $5.43 $ – $0.80 $0.15 $0.195 6.13 3.54 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R38 ft2 Heating 45 80% 3.49 $6.60 $ – $0.80 $0.15 $0.195 6.36 3.92 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating 45 80% 2.19 $4.14 $ – $1.03 $0.15 $0.195 5.75 2.59 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 47 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R49 ft2 Heating 45 80% 3.05 $5.78 $ – $1.03 $0.15 $0.195 6.20 3.19 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating 45 80% 3.05 $5.78 $ – $1.03 $0.15 $0.195 6.20 3.19 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R49 ft2 Heating 45 80% 3.71 $7.02 $ – $1.03 $0.15 $0.195 6.43 3.56 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating 45 80% 0.40 $0.76 $ – $0.23 $0.15 $0.195 2.67 2.08 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R30 ft2 Heating 45 80% 0.56 $1.06 $ – $0.23 $0.15 $0.195 3.28 2.62 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 48 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R30. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating 45 80% 0.56 $1.06 $ – $0.23 $0.15 $0.195 3.28 2.62 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R30 ft2 Heating 45 80% 0.68 $1.29 $ – $0.23 $0.15 $0.195 3.65 2.97 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating 45 80% 0.56 $1.05 $ – $0.40 $0.15 $0.195 3.26 1.84 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R38 ft2 Heating 45 80% 0.78 $1.47 $ – $0.40 $0.15 $0.195 3.90 2.35 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating 45 80% 0.78 $1.47 $ – $0.40 $0.15 $0.195 3.90 2.35 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 49 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R38. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R38 ft2 Heating 45 80% 0.94 $1.78 $ – $0.40 $0.15 $0.195 4.28 2.68 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating 45 80% 0.69 $1.30 $ – $0.63 $0.15 $0.195 3.66 1.56 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R49 ft2 Heating 45 80% 0.96 $1.81 $ – $0.63 $0.15 $0.195 4.31 2.01 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating 45 80% 0.96 $1.81 $ – $0.63 $0.15 $0.195 4.31 2.01 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R49 ft2 Heating 45 80% 1.16 $2.20 $ – $0.63 $0.15 $0.195 4.68 2.31 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 50 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R30 to R38. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating 45 80% 0.15 $0.29 $ – $0.17 $0.15 $0.195 1.29 1.20 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R38 ft2 Heating 45 80% 0.21 $0.41 $ – $0.17 $0.15 $0.195 1.69 1.57 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating 45 80% 0.21 $0.41 $ – $0.17 $0.15 $0.195 1.69 1.57 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R38 ft2 Heating 45 80% 0.26 $0.49 $ – $0.17 $0.15 $0.195 1.97 1.83 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating 45 80% 0.28 $0.54 $ – $0.40 $0.15 $0.195 2.09 1.06 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 51 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R30 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R49 ft2 Heating 45 80% 0.40 $0.75 $ – $0.40 $0.15 $0.195 2.64 1.41 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating 45 80% 0.40 $0.75 $ – $0.40 $0.15 $0.195 2.64 1.41 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R49 ft2 Heating 45 80% 0.48 $0.91 $ – $0.40 $0.15 $0.195 2.99 1.65 1 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Average electric heating system w/o CAC. Heating zone 1 cooling zone 3 Attic Insulation R38 to R49 ft2 Heating 45 80% 0.13 $0.25 $ – $0.23 $0.15 $0.195 1.12 0.82 1, 2 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 2 Attic Insulation R38 to R49 ft2 Heating 45 80% 0.18 $0.34 $ – $0.23 $0.15 $0.195 1.48 1.10 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 52 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R38 to R49. Average electric heating system w/o CAC. Heating zone 2 cooling zone 3 Attic Insulation R38 to R49 ft2 Heating 45 80% 0.18 $0.34 $ – $0.23 $0.15 $0.195 1.48 1.10 1 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Average electric heating system w/o CAC. Heating zone 3 cooling zone 1 Attic Insulation R38 to R49 ft2 Heating 45 80% 0.22 $0.42 $ – $0.23 $0.15 $0.195 1.73 1.30 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R19 ft2 Cooling 45 80% 0.16 $0.54 $ – $0.40 $0.15 $0.195 2.36 1.13 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R19 ft2 Cooling 45 80% 0.11 $0.35 $ – $0.40 $0.15 $0.195 1.66 0.77 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R19. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R19 ft2 Cooling 45 80% 0.16 $0.54 $ – $0.40 $0.15 $0.195 2.36 1.13 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 53 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R19. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R19 ft2 Cooling 45 80% 0.07 $0.24 $ – $0.40 $0.15 $0.195 1.18 0.53 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R38. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R38 ft2 Cooling 45 80% 0.22 $0.73 $ – $0.80 $0.15 $0.195 3.03 0.82 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R38 ft2 Cooling 45 80% 0.14 $0.48 $ – $0.80 $0.15 $0.195 2.15 0.55 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R38 ft2 Cooling 45 80% 0.22 $0.73 $ – $0.80 $0.15 $0.195 3.03 0.82 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R38. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R38 ft2 Cooling 45 80% 0.10 $0.32 $ – $0.80 $0.15 $0.195 1.53 0.38 1, 3 Supplement 1: Cost-Effectiveness Idaho Power Company Page 54 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R49. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R0 to R49 ft2 Cooling 45 80% 0.23 $0.78 $ – $1.03 $0.15 $0.195 3.18 0.69 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R0 to R49 ft2 Cooling 45 80% 0.15 $0.51 $ – $1.03 $0.15 $0.195 2.26 0.46 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R0 to R49 ft2 Cooling 45 80% 0.23 $0.78 $ – $1.03 $0.15 $0.195 3.18 0.69 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R49. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R0 to R49 ft2 Cooling 45 80% 0.10 $0.34 $ – $1.03 $0.15 $0.195 1.60 0.31 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R30. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R30 ft2 Cooling 45 80% 0.04 $0.14 $ – $0.23 $0.15 $0.195 0.71 0.51 1, 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 55 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R30. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R30 ft2 Cooling 45 80% 0.03 $0.09 $ – $0.23 $0.15 $0.195 0.46 0.33 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R30. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R30 ft2 Cooling 45 80% 0.04 $0.14 $ – $0.23 $0.15 $0.195 0.71 0.51 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R30. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R30 ft2 Cooling 45 80% 0.02 $0.06 $ – $0.23 $0.15 $0.195 0.31 0.21 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R38. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R38 ft2 Cooling 45 80% 0.06 $0.19 $ – $0.40 $0.15 $0.195 0.97 0.43 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R38 ft2 Cooling 45 80% 0.04 $0.12 $ – $0.40 $0.15 $0.195 0.63 0.28 1, 3 Supplement 1: Cost-Effectiveness Idaho Power Company Page 56 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R38 ft2 Cooling 45 80% 0.06 $0.19 $ – $0.40 $0.15 $0.195 0.97 0.43 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R38. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R38 ft2 Cooling 45 80% 0.02 $0.08 $ – $0.40 $0.15 $0.195 0.41 0.18 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R49. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R19 to R49 ft2 Cooling 45 80% 0.07 $0.24 $ – $0.63 $0.15 $0.195 1.17 0.35 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R19 to R49 ft2 Cooling 45 80% 0.05 $0.15 $ – $0.63 $0.15 $0.195 0.77 0.22 1, 3 Attic insulation Single-family home weatherization: insulate attic R19 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R19 to R49 ft2 Cooling 45 80% 0.07 $0.24 $ – $0.63 $0.15 $0.195 1.17 0.35 1, 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 57 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R49. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R19 to R49 ft2 Cooling 45 80% 0.03 $0.10 $ – $0.63 $0.15 $0.195 0.50 0.14 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R38. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R38 ft2 Cooling 45 80% 0.02 $0.05 $ – $0.17 $0.15 $0.195 0.28 0.25 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R38 ft2 Cooling 45 80% 0.01 $0.03 $ – $0.17 $0.15 $0.195 0.18 0.16 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R38. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R38 ft2 Cooling 45 80% 0.02 $0.05 $ – $0.17 $0.15 $0.195 0.28 0.25 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R38. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R38 ft2 Cooling 45 80% 0.01 $0.02 $ – $0.17 $0.15 $0.195 0.11 0.10 1, 3 Supplement 1: Cost-Effectiveness Idaho Power Company Page 58 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R30 to R49. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R30 to R49 ft2 Cooling 45 80% 0.03 $0.10 $ – $0.40 $0.15 $0.195 0.50 0.22 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R30 to R49 ft2 Cooling 45 80% 0.02 $0.06 $ – $0.40 $0.15 $0.195 0.32 0.14 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R30 to R49 ft2 Cooling 45 80% 0.03 $0.10 $ – $0.40 $0.15 $0.195 0.50 0.22 1, 3 Attic insulation Single-family home weatherization: insulate attic R30 to R49. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R30 to R49 ft2 Cooling 45 80% 0.01 $0.04 $ – $0.40 $0.15 $0.195 0.21 0.09 1, 3 Attic insulation Single-family home weatherization: insulate attic R38 to R49. No electric heating system w/CAC. Heating zone 1 cooling zone 3 Attic Insulation R38 to R49 ft2 Cooling 45 80% 0.01 $0.04 $ – $0.23 $0.15 $0.195 0.24 0.17 1, 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 59 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R38 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 2 Attic Insulation R38 to R49 ft2 Cooling 45 80% 0.01 $0.03 $ – $0.23 $0.15 $0.195 0.15 0.10 1, 3 Attic insulation Single-family home weatherization: insulate attic R38 to R49. No electric heating system w/CAC. Heating zone 2 cooling zone 3 Attic Insulation R38 to R49 ft2 Cooling 45 80% 0.01 $0.04 $ – $0.23 $0.15 $0.195 0.24 0.17 1, 3 Attic insulation Single-family home weatherization: insulate attic R38 to R49. No electric heating system w/CAC. Heating zone 3 cooling zone 1 Attic Insulation R38 to R49 ft2 Cooling 45 80% 0.01 $0.02 $ – $0.23 $0.15 $0.195 0.09 0.07 1, 3 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating & Cooling 45 80% 1.06 $2.52 $ – $0.40 $0.15 $0.195 5.65 3.63 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 1.65 $3.91 $ – $0.40 $0.15 $0.195 6.64 4.67 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 60 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R19. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 1.70 $4.04 $ – $0.40 $0.15 $0.195 6.71 4.74 1 Attic insulation Single-family home weatherization: insulate attic R0 to R19. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R0 to R19 ft2 Heating & cooling 45 80% 2.15 $5.10 $ – $0.40 $0.15 $0.195 7.17 5.31 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 1.44 $3.43 $ – $0.80 $0.15 $0.195 6.36 2.89 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 2.23 $5.29 $ – $0.80 $0.15 $0.195 7.24 3.83 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 2.30 $5.47 $ – $0.80 $0.15 $0.195 7.30 3.91 1 Attic insulation Single-family home weatherization: insulate attic R0 to R38. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R0 to R38 ft2 Heating & cooling 45 80% 2.91 $6.90 $ – $0.80 $0.15 $0.195 7.70 4.47 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 61 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R0 to R49. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 1.53 $3.64 $ – $1.03 $0.15 $0.195 6.49 2.53 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 2.36 $5.60 $ – $1.03 $0.15 $0.195 7.35 3.41 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 2.44 $5.79 $ – $1.03 $0.15 $0.195 7.41 3.49 1 Attic insulation Single-family home weatherization: insulate attic R0 to R49. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R0 to R49 ft2 Heating & cooling 45 80% 3.08 $7.31 $ – $1.03 $0.15 $0.195 7.80 4.02 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.28 $0.66 $ – $0.23 $0.15 $0.195 2.58 1.95 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.42 $1.00 $ – $0.23 $0.15 $0.195 3.45 2.69 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 62 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R30. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.44 $1.04 $ – $0.23 $0.15 $0.195 3.53 2.76 1 Attic insulation Single-family home weatherization: insulate attic R19 to R30. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R19 to R30 ft2 Heating & cooling 45 80% 0.55 $1.31 $ – $0.23 $0.15 $0.195 4.07 3.25 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.38 $0.91 $ – $0.40 $0.15 $0.195 3.23 1.71 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.58 $1.38 $ – $0.40 $0.15 $0.195 4.19 2.38 1 Attic insulation Single-family home weatherization: insulate attic R19 to R38. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.60 $1.43 $ – $0.40 $0.15 $0.195 4.27 2.45 1 Attic insulation Single Family Home Weatherization - Insulate attic R19 to R38. Heat pump. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R38 ft2 Heating & cooling 45 80% 0.76 $1.80 $ – $0.40 $0.15 $0.195 4.84 2.90 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 63 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R19 to R49. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 0.47 $1.12 $ – $0.63 $0.15 $0.195 3.69 1.43 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 0.71 $1.69 $ – $0.63 $0.15 $0.195 4.69 2.01 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 0.74 $1.76 $ – $0.63 $0.15 $0.195 4.78 2.07 1 Attic insulation Single-family home weatherization: insulate attic R19 to R49. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R19 to R49 ft2 Heating & cooling 45 80% 0.93 $2.22 $ – $0.63 $0.15 $0.195 5.34 2.48 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.10 $0.25 $ – $0.17 $0.15 $0.195 1.17 1.08 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.16 $0.38 $ – $0.17 $0.15 $0.195 1.67 1.54 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 64 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R30 to R38. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.16 $0.39 $ – $0.17 $0.15 $0.195 1.72 1.59 1 Attic insulation Single-family home weatherization: insulate attic R30 to R38. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R30 to R38 ft2 Heating & cooling 45 80% 0.21 $0.49 $ – $0.17 $0.15 $0.195 2.08 1.93 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Heat pump. Heating zone 1 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.19 $0.46 $ – $0.40 $0.15 $0.195 1.95 0.95 1, 2 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Heat pump. Heating zone 2 cooling zone 2 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.29 $0.69 $ – $0.40 $0.15 $0.195 2.68 1.37 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Heat pump. Heating zone 2 cooling zone 3 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.30 $0.72 $ – $0.40 $0.15 $0.195 2.75 1.41 1 Attic insulation Single-family home weatherization: insulate attic R30 to R49. Heat pump. Heating zone 3 cooling zone 1 Attic Insulation R30 to R49 ft2 Heating & cooling 45 80% 0.38 $0.91 $ – $0.40 $0.15 $0.195 3.24 1.71 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 65 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Costs ($/kWh)g UC Ratioh TRC Ratioi Source Attic insulation Single-family home weatherization: insulate attic R38 to R49. Heat pump. Heating zone 1 cooling zone 3 Attic insulation R38 to R49 ft2 Heating & cooling 45 80% 0.09 $0.21 $ – $0.23 $0.15 $0.195 1.00 0.72 1, 2 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Heat pump. Heating zone 2 cooling zone 2 Attic insulation R38 to R49 ft2 Heating & cooling 45 80% 0.13 $0.32 $ – $0.23 $0.15 $0.195 1.44 1.05 1 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Heat pump. Heating zone 2 cooling zone 3 Attic insulation R38 to R49 ft2 Heating & cooling 45 80% 0.14 $0.33 $ – $0.23 $0.15 $0.195 1.49 1.09 1 Attic insulation Single-family home weatherization: insulate attic R38 to R49. Heat pump. Heating zone 3 cooling zone 1 Attic insulation R38 to R49 ft2 Heating & cooling 45 80% 0.17 $0.41 $ – $0.23 $0.15 $0.195 1.80 1.33 1 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive based on 2008–2010 actual customer costs. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. ResSFWx_v2_5_IdahoPower_withCAC_ByCoolingZone.xlsm. 2011. 2 Measure not cost-effective. Non-energy benefits will be reviewed and monitored in 2012. 3 Measure not cost-effective. Removed from the program in 2012. Supplement 1: Cost-Effectiveness Idaho Power Company Page 66 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 67 Home Products Program Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 152,005 Test Benefit Cost Ratio Program Incentives ............................................................. 486,318 I Utility Cost Test ................................... $ 1,304,940 $ 638,323 2.04 Total Utility Cost ................................................................. $ 638,323 P Total Resource Cost Test ................... 1,419,449 1,344,446 1.06 Ratepayer Impact Measure Test ......... 1,304,940 1,614,982 0.81 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 1,368,972 M Participant Cost Test ........................... 1,821,651 1,368,972 1.33 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 1,485,326 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 16,571,356 $ 1,631,175 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 1,631,175 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 1,220,824 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ 114,509 NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: Non-electric benefits include the NPV of participant gas bill savings for ENERGY STAR® clothes washers. Based on RTF's assumption of therms saved per year and average retail gas rates for Intermountain Gas customers. Water savings will be researched in 2012. Supplement 1: Cost-Effectiveness Idaho Power Company Page 68 Demand-Side Management 2011 Annual Report Year: 2011 Program: Home Products Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefitf Gross Incremental Participant Costg Incentive/ Unit Admin Cost ($/kWh)h UC Ratioi TRC Ratioj Source Clothes washer ENERGY STAR® clothes washer modified energy factor (MEF) 2.00 to 2.19: any DHW, any dryer Old clothes washers Washer Washer 14 80% 68.00 0.00 $67.61 $8.19 $36.72 $50.00 $0.118 0.93 1.31 1 Clothes washer ENERGY STAR clothes washer MEF 2.20 to 2.45: any DHW, any dryer Old clothes washers Washer Washer 14 80% 113.00 0.00 $112.35 $11.92 $107.09 $50.00 $0.118 1.42 0.93 1, 2 Clothes washer ENERGY STAR clothes washer MEF 2.46 or higher: any DHW, any dryer Old clothes washers Washer Washer 14 80% 170.00 0.00 $169.02 $16.49 $245.67 $50.00 $0.118 1.93 0.67 1, 2 Clothes washer ENERGY STAR clothes washer, any MEF, any DHW, any dryer Old clothes washers Washer Washer 14 80% 122.00 0.00 $121.30 $12.66 $80.43 $50.00 $0.118 1.51 1.24 1 Refrigerator ENERGY STAR refrigerator: bottom freezer w/ ice through door Old refrigerator Refrigerator First refrigerator 20 80% 45.00 0.00 $56.59 $ – $16.00 $30.00 $0.118 1.28 1.88 3 Refrigerator ENERGY STAR refrigerator: bottom freezer w/o ice through door Old refrigerator Refrigerator First refrigerator 20 80% 40.00 0.00 $50.30 $ – $9.20 $30.00 $0.118 1.16 2.22 3 Refrigerator ENERGY STAR refrigerator: side-by-side w/ ice through door Old refrigerator Refrigerator First refrigerator 20 80% 44.00 0.00 $55.33 $ – $31.70 $30.00 $0.118 1.26 1.21 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 69 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefitf Gross Incremental Participant Costg Incentive/ Unit Admin Cost ($/kWh)h UC Ratioi TRC Ratioj Source Refrigerator ENERGY STAR refrigerator: side-by-side w/o ice through door Old refrigerator Refrigerator First refrigerator 20 80% 51.00 0.00 $64.14 $ – $37.71 $30.00 $0.118 1.42 1.22 3 Refrigerator ENERGY STAR refrigerator: top freezer w/ ice through door Old refrigerator Refrigerator First refrigerator 20 80% 40.00 0.00 $50.30 $ – $12.34 $30.00 $0.118 1.16 1.95 3 Refrigerator ENERGY STAR refrigerator: top freezer w/o ice through door Old refrigerator Refrigerator First refrigerator 20 80% 45.00 0.00 $56.59 $ – $14.08 $30.00 $0.118 1.28 2.00 3 Refrigerator ENERGY STAR refrigerator Old refrigerator Refrigerator First refrigerator 20 80% 44.00 0.00 $55.33 $ – $19.47 $30.00 $0.118 1.26 1.65 3 Freezer ENERGY STAR freezer: no tiers, chest, any defrost Old freezer Freezer Freezer 20 80% 35.00 0.00 $44.15 $ – $3.74 $20.00 $0.118 1.46 3.17 4 Freezer ENERGY STAR freezer: no tiers, upright, automatic defrost Old freezer Freezer Freezer 20 80% 61.00 0.00 $76.95 $ – $5.60 $20.00 $0.118 2.26 3.92 4 Freezer ENERGY STAR freezer: no tiers, upright, manual defrost Old freezer Freezer Freezer 20 80% 39.00 0.00 $49.20 $ – $3.28 $20.00 $0.118 1.60 3.50 4 Freezer ENERGY STAR freezer No tiers. Any upright Old freezer Freezer Freezer 20 80% 53.00 0.00 $66.86 $ – $4.79 $20.00 $0.118 2.04 3.79 4 Freezer ENERGY STAR freezer: no tiers, any freezer Old freezer Freezer Freezer 20 80% 42.00 0.00 $52.98 $ – $4.16 $20.00 $0.118 1.70 3.45 4 Supplement 1: Cost-Effectiveness Idaho Power Company Page 70 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non-Electric Benefitf Gross Incremental Participant Costg Incentive/ Unit Admin Cost ($/kWh)h UC Ratioi TRC Ratioj Source Lighting ENERGY STAR LED light fixture Incandescent light fixture Fixture Lighting 12 100% 35.00 $27.44 $ – $47.00 $15.00 $0.118 1.43 0.54 5, 6 Lighting ENERGY STAR light fixture: weighted average all Incandescent light fixture Fixture Lighting 15 100% 49.00 $47.24 $ – $19.64 $15.00 $0.118 2.27 1.86 7 Lighting ENERGY STAR ceiling fan light kits Incandescent ceiling fan light kit Fixture Lighting 6 100% 32.00 $12.67 $ – $44.00 $15.00 $0.118 0.67 0.27 6, 8 Lighting ENERGY STAR ceiling fan Old ceiling fan Fixture Cooling 10 80% 59.00 $78.39 $ – $86.00 $20.00 $0.118 2.33 0.79 6, 9 Low-flow showerhead Low-flow showerhead 2.0 gpm: any shower, any water heating retail Showerhead 2.2 gpm or higher Showerhead Water heating 10 80% 66.78 $44.38 $ – $24.00 $7.00 $0.040 3.67 1.53 10 Low-flow showerhead Low-flow showerhead 1.75 gpm: any shower, any water heating retail Showerhead 2.2 gpm or higher Showerhead Water heating 10 80% 99.77 $66.31 $ – $24.00 $7.00 $0.040 4.83 2.16 10 Low-flow showerhead Low-flow showerhead 1.5 gpm: any shower, any water heating retail Showerhead 2.2 gpm or higher Showerhead Water heating 10 80% 129.12 $85.82 $ – $24.00 $7.00 $0.040 5.64 2.66 10 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Sum of NPV of participant gas bill savings. g Incremental participant cost prior to customer incentive. h Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. i Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). j Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. ResClothesWashersSF_FY10v2_0.xls. 2010. Adjusted savings by changing Electric Water Heating saturation from 64% to 52% and Electric dryer saturation from 82% to 95% to match IPC mix. 2 Measure not cost-effective. Measure cost and other non-electric (e.g., gas and water) benefits will be reviewed and monitored in 2012. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 71 3 RTF. ResRefrigerator_v2_1.xls. 2010. 4 RTF. ResFreezerFY10v2_0.xls. 2010. 5 RTF. ResSpecialtyLighting_v1_1.xlsml. Any Location. 2011. 6 Measure not cost-effective. Removed from the program in 2012. 7 RTF. ResCFLLighting_v2_1.xlsm. 2011. 8 RTF. ResCFLLighting_v2_1.xlsm. 2011. Savings of 2 retail CFL bulbs at 16 kWh/year. 9 ADM Associates, Inc., Impact Evaluation of 2010 Home Products Program. 2011. 10 RTF. ResShowerheads_v2_1.xlsm. 2011. Adjusted savings by changing Electric Water Heating saturation from 64% to 52% to match IPC mix. 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Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 73 Rebate Advantage Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 50,969 Test Benefit Cost Ratio Program Incentives ............................................................. 12,500 I Utility Cost Test ................................... $ 183,939 $ 63,469 2.90 Total Utility Cost ................................................................. $ 63,469 P Total Resource Cost Test ................... 183,939 80,729 2.28 Ratepayer Impact Measure Test ......... 183,939 211,303 0.87 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 34,075 M Participant Cost Test ........................... 197,294 34,075 5.79 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 159,325 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 2,273,276 $ 229,923 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 229,923 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 184,793 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) .......................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 74 Demand-Side Management 2011 Annual Report Year: 2011 Program: Rebate Advantage Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR® manufactured home New ENERGY STAR manufactured home w/electric FAF: heating zone 1 Manufactured home built to Housing and Urban Development (HUD) code. Home Heating 26 80% 5,420.00 $7,526.54 $ – $1,362.62 $500.00 $0.320 2.69 2.06 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/electric FAF: heating zone 2 Manufactured home built to HUD code. Home Heating 27 80% 6,847.00 $9,759.25 $ – $1,362.62 $500.00 $0.320 2.90 2.31 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/electric FAF: heating zone 3 Manufactured home built to HUD code. Home Heating 27 80% 8,057.00 $11,483.90 $ – $1,362.62 $500.00 $0.320 2.98 2.44 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 1 cooling zone 1 Manufactured home built to HUD code. Home Heating & cooling 23 80% 3,128.00 $5,219.27 $ – $1,362.62 $500.00 $0.320 2.78 1.91 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 1 cooling zone 2 Manufactured home built to HUD code. Home Heating & cooling 23 80% 3,172.00 $5,292.69 $ – $1,362.62 $500.00 $0.320 2.79 1.92 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 1 cooling zone 3 Manufactured home built to HUD code. Home Heating & cooling 23 80% 3,254.00 $5,429.51 $ – $1,362.62 $500.00 $0.320 2.82 1.95 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 2 cooling zone 1 Manufactured home built to HUD code. Home Heating & cooling 25 80% 4,346.00 $7,662.45 $ – $1,362.62 $500.00 $0.320 3.24 2.38 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 75 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non-Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 2 cooling zone 2 Manufactured home built to HUD code. Home Heating & cooling 25 80% 4,390.00 $7,740.03 $ – $1,362.62 $500.00 $0.320 3.25 2.39 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 2 cooling zone 3 Manufactured home built to HUD code. Home Heating & cooling 25 80% 4,472.00 $7,884.60 $ – $1,362.62 $500.00 $0.320 3.27 2.41 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 3 cooling zone 1 Manufactured home built to HUD code. Home Heating & cooling 26 80% 5,516.00 $9,969.91 $ – $1,362.62 $500.00 $0.320 3.52 2.70 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 3 cooling zone 2 Manufactured home built to HUD code. Home Heating & cooling 26 80% 5,560.00 $10,049.44 $ – $1,362.62 $500.00 $0.320 3.53 2.71 1 ENERGY STAR manufactured home New ENERGY STAR manufactured home w/heat pump: heating zone 3 cooling zone 3 Manufactured home built to HUD code. Home Heating & cooling 26 80% 5,642.00 $10,197.65 $ – $1,362.62 $500.00 $0.320 3.54 2.72 1 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. NewMH_EStar_EcoRated_v1_2.xls. 2010. 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Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 77 See ya later, refrigerator® Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 556,323 Test Benefit Cost Ratio Program Incentives ............................................................. 98,070 I Utility Cost Test ................................... $ 994,718 $ 654,393 1.52 Total Utility Cost ................................................................. $ 654,393 P Total Resource Cost Test ................... 994,718 654,393 1.52 Ratepayer Impact Measure Test ......... 994,718 1,503,761 0.66 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ — M Participant Cost Test ........................... N/A N/A N/A Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 1,712,423 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 12,502,293 $ 994,718 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 994,718 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ N/A N/A NPV Cumulative Participant Savings............. $ 849,368 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) .......................................................................................... 100% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: No NTG. Deemed savings from the Regional Technical Forum (RTF) already accounts for net realized energy savings. No participant costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 78 Demand-Side Management 2011 Annual Report Year: 2011 Program: See ya later, refrigerator Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Refrigerator recycling Refrigerator removal and decommissioning Refrigerator Second Refrigerator 9 100% 482.00 $294.97 $ – $ – $30.00 $0.325 1.58 1.58 1 Freezer recycling Freezer removal and decommissioning Freezer Freezer 6 100% 555.00 $227.45 $ – $ – $30.00 $0.325 1.08 1.08 1 a Average measure life. b No NTG. Deemed savings from RTF includes realization rate. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f No participant cost. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. FrigRecycle_FY10v2_3.xls. 2010. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 79 Weatherization Assistance for Qualified Customers Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 1,324,415 Test Benefit Cost Ratio Program Incentives ............................................................. — I Utility Cost Test ................................... $ 3,531,604 $ 1,324,415 2.67 Total Utility Cost ................................................................. $ 1,324,415 P Total Resource Cost Test ................... 3,531,604 2,730,521 1.29 Ratepayer Impact Measure Test ......... 3,531,604 3,907,311 0.90 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 1,757,632 M Participant Cost Test ........................... N/A N/A N/A Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 2,783,648 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 39,760,765 $ 4,414,505 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 4,414,505 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ N/A N/A NPV Cumulative Participant Savings............. $ 3,228,621 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) .......................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: Energy savings for each home determined by an auditor using an Energy Audit 4 (EA4) form approved by the Department of Energy (DOE). Cost-effectiveness analyzed on a per project basis. Each project must have a savings to investment ratio (SIR) equal to or greater than 1. No customer participant costs. Costs shown are from the DOE state weatherization assistance program. Supplement 1: Cost-Effectiveness Idaho Power Company Page 80 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 81 Weatherization Solutions for Eligible Customers Segment: Residential 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 788,148 Test Benefit Cost Ratio Program Incentives ............................................................. — I Utility Cost Test ................................... $ 1,447,829 $ 788,148 1.84 Total Utility Cost ................................................................. $ 788,148 P Total Resource Cost Test ................... 1,447,829 788,148 1.84 Ratepayer Impact Measure Test ......... 1,447,829 1,847,041 0.78 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ – M Participant Cost Test ........................... N/A N/A N/A Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 1,141,194 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 16,300,461 $ 1,809,786 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 1,809,786 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ N/A N/A NPV Cumulative Participant Savings............. $ 1,323,616 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.072 Line Losses ....................................................................................................... 10.90% Notes: Energy savings for each home determined by an auditor using an Energy Audit 4 (EA4) form approved by the Department of Energy (DOE). Cost-effectiveness analyzed on a per project basis. Each project must have a savings to investment ratio (SIR) equal to or greater than 1. No participant costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 82 Demand-Side Management 2011 Annual Report Year: 2011 Program: Weatherization Solutions for Eligible Customers Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Windows Home Heating & cooling 15 80% 2,367.85 $2,842.55 $ – $ – $0.691 1.39 1.39 1 Doors Home Heating & cooling 15 80% 491.13 $589.59 $ – $ – $0.691 1.39 1.39 1 Walls Home Heating & cooling 20 80% 3,004.56 $4,537.54 $ – $ – $0.691 1.75 1.75 1 Ceilings Home Heating & cooling 20 80% 1,113.05 $1,680.95 $ – $ – $0.691 1.75 1.75 1 Venting Home Other N/A N/A N/A N/A $ – $ – $0.691 N/A N/A 2 Floors Home Heating & cooling 20 80% 1,071.83 $1,618.70 $ – $ – $0.691 1.75 1.75 1 Infiltration Home Heating & cooling 15 80% 1,472.24 $1,767.39 $ – $ – $0.691 1.39 1.39 1 Ducts Home Heating & cooling 20 80% 2,155.82 $3,255.76 $ – $ – $0.691 1.75 1.75 1 Health & safety Home Other N/A N/A N/A N/A $ – $ – $0.691 N/A N/A 2 Other Investment Home Other N/A N/A N/A N/A $ – $ – $0.476 N/A N/A 2 Water heater Home Water Heating 10 80% 205.92 $136.85 $ – $ – $0.691 0.77 0.77 1,3 Pipes Home Water Heating 15 80% 31.92 $31.01 $ – $ – $0.691 1.12 1.12 1 Refrigerator replacement Home First Refrigerator 20 80% 1,045.00 $1,314.17 $ – $ – $0.691 1.46 1.46 1 Furnace modify Home Heating 3 80% N/A $- $ – $ – $0.691 N/A N/A 4 Furnace repair Home Other N/A N/A N/A N/A $ – $ – $0.691 N/A N/A 2 Furnace replacement Home Heating 20 80% 2,348.41 $2,668.69 $ – $ – $0.691 1.32 1.32 1 Furnace tune up Home Heating 3 80% 33.91 $5.77 $ – $ – $0.691 0.20 0.20 1,3 CFLs Home Lighting 7 80% 167.31 $77.51 $ – $ – $0.691 0.54 0.54 1,3 Audit investment Home Other N/A N/A N/A N/A $ – $ – $0.691 N/A N/A 2 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 83 d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f No participant cost. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 Average actual 2011 program savings across all projects as estimated from energy audit calculations. 2 Non-energy savings measure allowed by the program to help facilitate effective performance of other energy saving measures. 3 Measure not cost-effective due to high administration costs. Measure bundled with other cost-effective measures. 4 No measures installed by contractors in 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 84 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 85 Building Efficiency Segment: Commercial 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 281,339 Test Benefit Cost Ratio Program Incentives ............................................................. 1,010,086 I Utility Cost Test ................................... $ 7,627,364 $ 1,291,425 5.91 Total Utility Cost ................................................................. $ 1,291,425 P Total Resource Cost Test ................... 7,627,364 2,914,297 2.62 Ratepayer Impact Measure Test ......... 7,627,364 5,424,965 1.41 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 3,038,676 M Participant Cost Test ........................... 6,177,011 3,038,676 2.03 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 11,514,641 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 111,951,106 $ 9,534,205 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 9,534,205 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 5,166,925 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.047 Line Losses ....................................................................................................... 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 86 Demand-Side Management 2011 Annual Report Year: 2011 Program: Building Efficiency Market Segment: Commercial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Lighting controls Interior light load reduction: 10–19% below code ft2 Lighting 11 96% 0.38 0.00 $0.30 $ – $0.05 $0.05 $0.024 4.86 4.86 1 Lighting controls Interior light load reduction: 20% or more below code ft2 Lighting 11 96% 1.09 0.00 $0.86 $ – $0.10 $0.15 $0.024 4.67 6.42 1 Lighting controls Exterior light load reduction: 15% or more below code kW Outdoor Lighting 11 96% 4,059.00 0.00 $2,271.41 $ – $205.00 $200.00 $0.024 7.29 7.17 2 Lighting controls Daylight photo controls Sensor Lighting 8 96% 132.00 0.00 $76.81 $ – $50.00 $15.00 $0.024 4.05 1.42 1 Lighting controls Occupancy sensors Sensor Lighting 8 96% 289.99 – $168.74 $ – $77.00 $25.00 $0.024 5.05 1.98 3 Sign lighting High efficiency exit signs Signs Lighting 16 96% 333.00 0.03 $368.07 $ – $31.52 $7.50 $0.024 22.60 9.13 3 A/C/Heat Pump Units Premium efficiency HVAC unit Ton HVAC 15 80% 386.72 0.32 $498.59 $ – $122.22 $50.00 $0.024 6.71 3.40 1 A/C/Heat Pump Units Additional HVAC unit efficiency bonus Ton HVAC 15 80% 181.78 0.01 $234.37 $ – $81.50 $25.00 $0.024 6.37 2.51 1 A/C/Heat Pump Units Efficient chillers Ton HVAC 15 80% 154.28 0.17 $198.91 $ – $75.00 $20.00 $0.024 6.69 2.35 2 Economizers Air-side economizers Ton HVAC 15 80% 300.00 0.11 $386.79 $ – $170.00 $75.00 $0.024 3.76 1.95 3 Reflective roofing Reflective roof coating ft2 HVAC 15 80% 0.41 0.00 $0.53 $ – $0.35 $0.05 $0.024 7.05 1.41 3 Efficient windows High performance windows ft2 HVAC 30 80% 1.01 0.00 $2.10 $ – $0.74 $0.50 $0.024 3.21 2.35 3 Automated control systems Energy management control systems ft2 HVAC 14 96% 1.24 – $1.51 $ – $1.00 $0.30 $0.024 4.39 1.45 3 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 87 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Automated control systems Demand controlled ventilation Ft3/minute HVAC 10 96% 1.31 – $1.19 $ – $0.60 $0.50 $0.024 2.15 1.82 3 Variable speed controls Variable speed drives HP HVAC 15 96% 985.02 – $1,269.97 $ – $187.00 $60.00 $0.024 14.58 5.93 3 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 Savings calculated from Idaho Power engineering estimates and research. Participant costs calculated based on Potential Study assumptions. 2 Savings and costs calculated from Idaho Power engineering estimates and research. 3 Idaho Power Demand-Side Management Potential Study by Nexant, Inc. IPC DSM Potential - Commercial Model 081209.xlsm. 2009. Supplement 1: Cost-Effectiveness Idaho Power Company Page 88 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 89 Custom Efficiency Segment: Industrial 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 1,054,230 Test Benefit Cost Ratio Program Incentives ............................................................. 7,729,581 I Utility Cost Test ................................... $ 56,287,228 $ 8,783,811 4.42 Total Utility Cost ................................................................. $ 8,783,811 P Total Resource Cost Test ................... 56,287,228 19,830,834 2.37 Ratepayer Impact Measure Test ......... 56,287,228 26,271,960 1.86 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 18,776,604 M Participant Cost Test ........................... 25,217,730 18,776,604 1.34 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 67,979,157 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 660,927,404 $ 56,287,228 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 56,287,228 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 17,488,150 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 69% Average 2011 Customer Segment Rate/kWh .................................................... $0.027 Line Losses ....................................................................................................... 10.90% Notes: Energy savings are unique by project and are reviewed by Idaho Power engineering staff or third-party consultants. Each project must complete a certification inspection. Green Rewind initiative is available to agricultural, commercial, and industrial customers for motors between 15 to 5,000 HP. Commercial and industrial motor rewinds are paid under Custom Efficiency. NTG of 69% from CPUC DEER NTFR Update Process for 2006-2007 Programs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 90 Demand-Side Management 2011 Annual Report Year: 2011 Program: Custom Efficiency–Green Motors Market Segment: Industrial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 15HP Green Motors Program Rewind: motor size 15HP Standard rewind practice Motor MF_Motors 12 69% 274.02 $222.31 $ – $138.33 $30.00 $0.050 3.51 1.30 1 Green Motors Program Rewind: motor size 20HP Green Motors Program Rewind: motor size 20HP Standard rewind practice Motor MF_Motors 12 69% 362.55 $294.14 $ – $154.33 $40.00 $0.050 3.49 1.48 1 Green Motors Program Rewind: motor size 25HP Green Motors Program Rewind: motor size 25HP Standard rewind practice Motor MF_Motors 11 69% 534.72 $400.30 $ – $176.33 $50.00 $0.050 3.60 1.69 1 Green Motors Program Rewind: motor size 30HP Green Motors Program Rewind: motor size 30HP Standard rewind practice Motor MF_Motors 11 69% 574.63 $430.18 $ – $193.67 $60.00 $0.050 3.35 1.64 1 Green Motors Program Rewind: motor size 40HP Green Motors Program Rewind: motor size 40HP Standard rewind practice Motor MF_Motors 11 69% 671.75 $502.89 $ – $236.67 $80.00 $0.050 3.05 1.57 1 Green Motors Program Rewind: motor size 50HP Green Motors Program Rewind: motor size 50HP Standard rewind practice Motor MF_Motors 11 69% 728.65 $545.48 $ – $262.00 $100.00 $0.050 2.76 1.52 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 91 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 60HP Green Motors Program Rewind: motor size 60HP Standard rewind practice Motor MF_Motors 9 69% 970.56 $599.36 $ – $309.00 $120.00 $0.050 2.45 1.38 1 Green Motors Program Rewind: motor size 70HP Green Motors Program Rewind: motor size 70HP Standard rewind practice Motor MF_Motors 9 69% 1,008.53 $622.81 $ – $334.00 $150.00 $0.050 2.14 1.31 1 Green Motors Program Rewind: motor size 100HP Green Motors Program Rewind: motor size 100HP Standard rewind practice Motor MF_Motors 9 69% 1,558.33 $962.34 $ – $414.33 $200.00 $0.050 2.39 1.56 1 Green Motors Program Rewind: motor size 125HP Green Motors Program Rewind: motor size 125HP Standard rewind practice Motor MF_Motors 10 69% 1,891.23 $1,293.18 $ – $465.33 $250.00 $0.050 2.59 1.81 1 Green Motors Program Rewind: motor size 150HP Green Motors Program Rewind: motor size 150HP Standard rewind practice Motor MF_Motors 10 69% 2,253.74 $1,541.06 $ – $518.33 $300.00 $0.050 2.58 1.89 1 Green Motors Program Rewind: motor size 200HP Green Motors Program Rewind: motor size 200HP Standard rewind practice Motor MF_Motors 10 69% 2,986.91 $2,042.39 $ – $624.00 $400.00 $0.050 2.57 2.00 1 Green Motors Program Rewind: motor size 250HP Green Motors Program Rewind: motor size 250HP Standard rewind practice Motor MF_Motors 8 69% 4,396.67 $2,418.93 $ – $802.00 $500.00 $0.050 2.32 1.80 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 92 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 300HP Green Motors Program Rewind: motor size 300HP Standard rewind practice Motor MF_Motors 8 69% 5,268.52 $2,898.60 $ – $810.67 $600.00 $0.050 2.32 1.98 1 Green Motors Program Rewind: motor size 350HP Green Motors Program Rewind: motor size 350HP Standard rewind practice Motor MF_Motors 8 69% 6,146.61 $3,381.71 $ – $849.67 $700.00 $0.050 2.32 2.10 1 Green Motors Program Rewind: motor size 400HP Green Motors Program Rewind: motor size 400HP Standard rewind practice Motor MF_Motors 8 69% 7,005.00 $3,853.97 $ – $949.00 $800.00 $0.050 2.31 2.12 1 Green Motors Program Rewind: motor size 450HP Green Motors Program Rewind: motor size 450HP Standard rewind practice Motor MF_Motors 8 69% 7,858.73 $4,323.67 $ – $1,037.33 $900.00 $0.050 2.31 2.15 1 Green Motors Program Rewind: motor size 500HP Green Motors Program Rewind: motor size 500HP Standard rewind practice Motor MF_Motors 8 69% 8,731.93 $4,804.08 $ – $1,120.67 $1,000.00 $0.050 2.31 2.18 1 Green Motors Program Rewind: motor size 600HP Green Motors Program Rewind: motor size 600HP Standard rewind practice Motor MF_Motors 7 69% 12,279.22 $5,916.03 $ – $1,651.45 $1,200.00 $0.050 2.25 1.92 1 Green Motors Program Rewind: motor size 700HP Green Motors Program Rewind: motor size 700HP Standard rewind practice Motor MF_Motors 7 69% 14,325.76 $6,902.03 $ – $1,801.73 $1,400.00 $0.050 2.25 1.99 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 93 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 800HP Green Motors Program Rewind: motor size 800HP Standard rewind practice Motor MF_Motors 7 69% 16,372.29 $7,888.04 $ – $1,999.06 $1,600.00 $0.050 2.25 2.02 1 Green Motors Program Rewind: motor size 900HP Green Motors Program Rewind: motor size 900HP Standard rewind practice Motor MF_Motors 7 69% 18,418.83 $8,874.04 $ – $2,203.88 $1,800.00 $0.050 2.25 2.04 1 Green Motors Program Rewind: motor size 1000HP Green Motors Program Rewind: motor size 1000HP Standard rewind practice Motor MF_Motors 7 69% 21,177.35 $10,203.08 $ – $2,375.10 $2,000.00 $0.050 2.30 2.12 1 Green Motors Program Rewind: motor size 1250HP Green Motors Program Rewind: motor size 1250HP Standard rewind practice Motor MF_Motors 7 69% 26,471.69 $12,753.85 $ – $2,837.23 $2,500.00 $0.050 2.30 2.17 1 Green Motors Program Rewind: motor size 1500HP Green Motors Program Rewind: motor size 1500HP Standard rewind practice Motor MF_Motors 7 69% 31,766.03 $15,304.62 $ – $3,250.13 $3,000.00 $0.050 2.30 2.22 1 Green Motors Program Rewind: motor size 1750HP Green Motors Program Rewind: motor size 1750HP Standard rewind practice Motor MF_Motors 7 69% 37,060.37 $17,855.39 $ – $3,709.54 $3,500.00 $0.050 2.30 2.24 1 Green Motors Program Rewind: motor size 2000HP Green Motors Program Rewind: motor size 2000HP Standard rewind practice Motor MF_Motors 7 69% 42,354.70 $20,406.16 $ – $4,161.19 $4,000.00 $0.050 2.30 2.26 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 94 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 2250HP Green Motors Program Rewind: motor size 2250HP Standard rewind practice Motor MF_Motors 7 69% 47,649.04 $22,956.93 $ – $4,533.29 $4,500.00 $0.050 2.30 2.29 1 Green Motors Program Rewind: motor size 2500HP Green Motors Program Rewind: motor size 2500HP Standard rewind practice Motor MF_Motors 7 69% 52,943.38 $25,507.70 $ – $4,959.78 $5,000.00 $0.050 2.30 2.31 1, 2 Green Motors Program Rewind: motor size 3000HP Green Motors Program Rewind: motor size 3000HP Standard rewind practice Motor MF_Motors 7 69% 63,532.05 $30,609.24 $ – $5,798.90 $6,000.00 $0.050 2.30 2.34 1, 2 Green Motors Program Rewind: motor size 3500HP Green Motors Program Rewind: motor size 3500HP Standard rewind practice Motor MF_Motors 7 69% 74,120.73 $35,710.77 $ – $6,408.05 $7,000.00 $0.050 2.30 2.39 1, 2 Green Motors Program Rewind: motor size 4000HP Green Motors Program Rewind: motor size 4000HP Standard rewind practice Motor MF_Motors 7 69% 84,709.41 $40,812.31 $ – $7,154.28 $8,000.00 $0.050 2.30 2.42 1, 2 Green Motors Program Rewind: motor size 4500HP Green Motors Program Rewind: motor size 4500HP Standard rewind practice Motor MF_Motors 7 69% 95,298.08 $45,913.85 $ – $7,710.11 $9,000.00 $0.050 2.30 2.46 1, 2 Green Motors Program Rewind: motor size 5000HP Green Motors Program Rewind: motor size 5000HP Standard rewind practice Motor MF_Motors 7 69% 105,886.76 $51,015.39 $ – $8,230.18 $10,000.00 $0.050 2.30 2.50 1, 2 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 95 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. GreenMotorsRewind_Ind_FY10v1_2.xls. 2010. 2 Incentive greater than incremental cost. This is a regional initiative sponsored by the RTF and Green Motors Practices Group (GMPG). Costs and savings deemed by RTF and incentives set by GMPG. One incentive paid on pump greater than 650hp in 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 96 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 97 Easy Upgrades Segment: Commercial 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 814,874 Test Benefit Cost Ratio Program Incentives ............................................................. 3,904,592 I Utility Cost Test ................................... $ 25,650,385 $ 4,719,466 5.44 Total Utility Cost ................................................................. $ 4,719,466 P Total Resource Cost Test ................... 25,650,385 8,559,384 3.00 Ratepayer Impact Measure Test ......... 25,650,385 18,620,323 1.38 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 8,704,490 M Participant Cost Test ........................... 21,280,663 8,704,490 2.44 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 38,723,073 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 376,485,106 $ 32,062,981 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 32,062,981 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M - I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 17,376,071 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ — NEB Real ((1 + WACC) / (1 + Escalation)) - 1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 80% Average 2011 Customer Segment Rate/kWh .................................................... $0.047 Line Losses ....................................................................................................... 10.90% Notes: Measure inputs from Evergreen Consulting Group or Idaho Power Demand-Side Management Potential Study by Nexant, Inc. unless otherwise noted. Supplement 1: Cost-Effectiveness Idaho Power Company Page 98 Demand-Side Management 2011 Annual Report Year: 2011 Program: Easy Upgrades Market Segment: Commercial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incrementa l Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source 2010—T8 fluorescents 1- or 2-lamp 4' T8 fixture 1- or 2-lamp 4' T12 fixture Fixture Lighting 11 96% 69.00 0.02 $54.44 $ – $17.55 $14.00 $0.021 3.38 2.77 1 2010—T8 fluorescents 3-lamp 4' T8 fixture 3-lamp 4' T12 fixture Fixture Lighting 11 96% 144.99 0.03 $114.40 $ – $35.10 $24.00 $0.021 4.06 2.91 1 2010—T8 fluorescents 4-lamp 4' T8 fixture 4-lamp 4' T12 fixture Fixture Lighting 11 96% 190.97 0.04 $150.67 $ – $46.80 $32.00 $0.021 4.02 2.88 1 2010—T8 fluorescents 1- or 2-lamp 8' T8 fixture 1- or 2-lamp 8' T12 fixture Fixture Lighting 11 96% 99.02 0.02 $78.13 $ – $55.00 $26.00 $0.021 2.67 1.34 1 2010—T8 fluorescents 1- or 2-lamp 8' T8 HO fixture 1- or 2-lamp 8' T12 HO fixture Fixture Lighting 11 96% 272.31 0.06 $214.85 $ – $81.25 $46.00 $0.021 3.99 2.41 1 2010—T8 fluorescents 4-lamp 4' T8 high-bay fixture Fixture drawing 250 W or more Fixture Lighting 11 96% 495.10 0.12 $390.64 $ – $250.00 $80.00 $0.021 4.15 1.48 1 2010—T8 fluorescents 6-lamp 4' T8 high-bay fixture Fixture drawing 400 W or more Fixture Lighting 11 96% 813.38 0.19 $641.76 $ – $300.00 $120.00 $0.021 4.49 1.99 1 2010—T8 fluorescents 8-lamp 4' T8 high-bay fixture Fixture drawing 750 W or more Fixture Lighting 12 96% 902.44 $770.95 $ – $327.20 $190.00 $0.021 3.54 2.17 2 2010—T8 fluorescents Low-wattage T8 lamp Standard wattage T8 lamp Lamp Lighting 12 96% 15.49 $13.23 $ – $3.00 $0.50 $0.021 15.39 3.94 2 2010—T5 fluorescents 1- or 2-lamp 4' T5 fixture 1- or 2-lamp 4' T12 fixture Fixture Lighting 11 96% 69.00 0.02 $54.44 $ – $20.19 $14.00 $0.021 3.38 2.44 1 2010—T5 fluorescents 3-lamp 4' T5 fixture 3-lamp 4' T12 fixture Fixture Lighting 11 96% 137.92 0.03 $108.82 $ – $40.37 $24.00 $0.021 3.88 2.45 1 2010—T5 fluorescents 4-lamp 4' T5 fixture 4-lamp 4' T12 fixture Fixture Lighting 11 96% 155.60 0.04 $122.77 $ – $53.82 $30.00 $0.021 3.54 2.10 1 2010—T5 fluorescents 2-lamp 4' T5 HO fixture 4-lamp 4' T12 fixture Fixture Lighting 11 96% 155.60 0.04 $122.77 $ – $33.64 $28.00 $0.021 3.77 3.21 1 2010—T5 fluorescents 3-lamp 4' T5 HO fixture Fixture drawing 250 W or more Fixture Lighting 11 96% 247.55 0.06 $195.32 $ – $50.46 $50.00 $0.021 3.40 3.37 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 99 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source 2010—T5 fluorescents 4-lamp 4' T5 HO fixture Fixture drawing 400 W or more Fixture Lighting 11 96% 565.83 0.13 $446.44 $ – $67.28 $90.00 $0.021 4.21 5.35 1 2010—T5 fluorescents 6-lamp 4' T5 HO fixture Fixture drawing 400 W or more Fixture Lighting 11 96% 318.28 0.08 $251.12 $ – $100.91 $60.00 $0.021 3.62 2.28 1 2010—Efficient Metal Halide (MH) Lighting 30-70 W efficient MH fixture Fixture drawing at least 20 W more Fixture Lighting 16 96% 401.06 $443.29 $ – $400.00 $18.00 $0.021 16.11 1.08 2 2010—MH Lighting 70-150 W efficient MH fixture Fixture drawing at least 25 W more Fixture Lighting 16 96% 275.28 $304.27 $ – $449.55 $22.00 $0.021 10.51 0.67 2, 3 2010—MH Lighting 150-250 W efficient MH fixture Fixture drawing at least 40 W more Fixture Lighting 16 96% 250.90 $277.32 $ – $400.00 $26.00 $0.021 8.51 0.68 2, 3 2010—MH Lighting 250-360 W efficient MH fixture Fixture drawing at least 80 W more Fixture Lighting 16 96% 370.31 $409.31 $ – $361.14 $55.00 $0.021 6.26 1.10 2 2010—MH Lighting 360-500 W efficient MH fixture Fixture drawing at least 120 W more Fixture Lighting 16 96% 358.00 $395.70 $ – $361.14 $75.00 $0.021 4.60 1.06 2 2010—MH Lighting 500 W+ efficient MH fixture Fixture drawing at least 200 W more Fixture Lighting 16 96% 780.00 $862.14 $ – $419.29 $105.00 $0.021 6.82 1.96 2 2010—Lighting controls Occupancy sensor, wall or ceiling Manual light switch Sensor Lighting 8 96% 289.99 - $168.74 $ – $77.00 $40.00 $0.021 3.51 1.98 1 2010—Lighting controls Photocell dimming control No prior dimming control Control Lighting 8 96% 238.71 - $138.90 $ – $60.00 $40.00 $0.021 2.96 2.08 1 2010—Lighting controls Central lighting control system Manual switches or no control Square Feet Lighting 8 96% 0.82 - $0.48 $ – $0.30 $0.10 $0.021 3.90 1.48 1 2010—Lighting controls Auto-off time switch Controlling 100 W or more Switch Lighting 8 96% 177.00 - $102.99 $ – $43.00 $20.00 $0.021 4.17 2.16 1 2010—Lighting controls Time clock control No prior control Control Lighting 8 96% 583.51 - $339.54 $ – $240.00 $20.00 $0.021 10.11 1.34 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 100 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source 2010—Lighting controls Screw-in lamp (25 W or less) Fixture drawing 40 W or more Lamp Lighting 12 96% 174.76 $149.30 $ – $15.63 $2.00 $0.021 25.28 7.64 2 2010— Compact Fluorescents (CFL) or Light-Emitting Diodes (LED) Larger wattage screw-in lamp Fixture drawing 100 W or more Lamp Lighting 12 96% 365.79 $312.49 $ – $17.00 $4.00 $0.021 25.68 12.42 2 2010—CFLs or LEDs CFL or LED hardwired fixture Incandescent or other fixture Fixture Lighting 12 96% 379.66 $324.34 $ – $24.00 $15.00 $0.021 13.55 9.85 2 2010—Sign Llghting LED or equivalent exit sign Incandescent or Fluorescent exit sign Fixture Lighting 16 96% 332.88 0.03 $367.93 $ – $51.00 $15.00 $0.021 16.06 6.25 1 2010—Sign lighting LED or equivalent sign lighting Marquee/Sign lighting Square Feet Lighting 16 96% 85.85 0.39 $94.89 $ – $18.00 $15.00 $0.021 5.42 4.63 1 Standard T8s 2-ft or 3-ft T8s and electronic ballast (one or more lamps) 2-ft or 3-ft T12 (includes U-bend) Fixture Lighting 11 96% 105.00 $82.85 $ – $40.92 $8.00 $0.021 7.79 1.90 4 Standard T8s 1 Lamp 4-ft T8 and electronic ballast 1 Lamp 4-ft T12 Fixture Lighting 11 96% 73.50 $57.99 $ – $28.40 $12.00 $0.021 4.11 1.90 4 Standard T8s 1 or 2 Lamp 4-ft T8's and electronic ballasts 2 Lamp 4-ft T12 Fixture Lighting 11 96% 126.00 $99.41 $ – $37.60 $14.00 $0.021 5.73 2.43 4 Standard T8s 2 or 3 Lamp 4-ft T8's and electronic ballast 3 Lamp 4-ft T12 Fixture Lighting 11 96% 208.25 $164.31 $ – $54.45 $18.00 $0.021 7.05 2.75 4 Standard T8s 2, 3, or 4 Lamp 4-ft T8's and electronic ballasts 4 Lamp 4-ft T12 Fixture Lighting 11 96% 271.83 $214.48 $ – $59.83 $22.00 $0.021 7.43 3.22 4 Standard T8s 1 or 2 Lamp 6-ft T8's and electronic ballast 1 or 2 Lamp 6-ft T12 Fixture Lighting 12 96% 137.67 $117.61 $ – $49.33 $14.00 $0.021 6.68 2.22 4 Standard T8s 1 or 2 Lamp 6-ft T8's and electronic ballast (slimline & HO) 1 or 2 Lamp 6-ft T12HO/ VHO Fixture Lighting 12 96% 385.23 $329.10 $ – $81.67 $14.00 $0.021 14.30 3.63 4 Standard T8s 1 or 2 Lamp 8-ft T8's and electronic ballast 1 or 2 Lamp 8-ft T12 Fixture Lighting 12 96% 138.83 $118.60 $ – $58.47 $12.00 $0.021 7.63 1.91 4 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 101 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Standard T8s 2, 3 or 4 Lamp 8-ft T8's and electronic ballast 3 or 4 Lamp 8-ft T12 Fixture Lighting 12 96% 334.60 $285.85 $ – $93.81 $24.00 $0.021 8.84 2.80 4 Standard T8s 1 or 2 Lamp 8-ft T8's and electronic ballast (slimline & HO) 1 or 2 Lamp 8-ft T12HO/ VHO Fixture Lighting 12 96% 509.37 $435.15 $ – $68.14 $12.00 $0.021 18.41 5.45 4 Standard T8s 2, 3 or 4 Lamp 8-ft T8's and electronic ballast (slimline & HO) 3 or 4 Lamp 8-ft T12HO/ VHO Fixture Lighting 12 96% 1,237.54 $1,057.22 $ – $96.39 $24.00 $0.021 20.30 8.49 4 Standard T8s 2 or 4 Lamp 4-ft T8's and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12 Fixture Lighting 11 96% 143.50 $113.22 $ – $53.07 $22.00 $0.021 4.35 1.98 4 Standard T8s 2 or 4 Lamp 4-ft T8's and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12HO/ VHO Fixture Lighting 11 96% 528.50 $416.99 $ – $55.24 $30.00 $0.021 9.74 6.13 4 High-performance T8s 1 Lamp 4-ft HP T8 and electronic ballast 1 Lamp 4-ft T12 Fixture Lighting 11 96% 84.00 $66.28 $ – $44.94 $22.00 $0.021 2.68 1.39 4 High-performance T8s 1 or 2 Lamp 4-ft HP T8's and electronic ballast 2 Lamp 4-ft T12 Fixture Lighting 11 96% 125.30 $98.86 $ – $55.59 $24.00 $0.021 3.56 1.67 4 High-performance T8s 2 or 3 Lamp 4-ft HP T8's and electronic ballast 3 Lamp 4-ft T12 Fixture Lighting 11 96% 208.25 $164.31 $ – $70.35 $32.00 $0.021 4.34 2.16 4 High-performance T8s 2, 3, or 4 Lamp 4-ft HP T8's and electronic ballast 4 Lamp 4-ft T12 Fixture Lighting 11 96% 266.00 $209.88 $ – $74.86 $34.00 $0.021 5.09 2.56 4 High-performance T8s 2 or 4 Lamp 4-ft HP T8's and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12 Fixture Lighting 11 96% 167.13 $131.86 $ – $93.00 $34.00 $0.021 3.37 1.34 4 High-performance T8s 2 or 4 Lamp 4-ft HP T8's and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12HO/ VHO Fixture Lighting 11 96% 551.33 $435.00 $ – $106.53 $45.00 $0.021 7.38 3.61 4 T5 (Non-HO) 1 or 2 Lamp 4-ft T5's and electronic ballast 1 or 2 Lamp 4-ft T12 Fixture Lighting 11 96% 119.00 $93.89 $ – $50.30 $14.00 $0.021 5.46 1.76 4 T5 (Non-HO) 2, 3, or 4 Lamp 4-ft T5's and electronic ballast 3 or 4 Lamp 4-ft T12 Fixture Lighting 11 96% 229.25 $180.88 $ – $90.07 $24.00 $0.021 6.03 1.88 4 Supplement 1: Cost-Effectiveness Idaho Power Company Page 102 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source T5/T8 High bay (new fixture) 4 Lamp 4-ft T8s and electronic ballast Fixture (lamp & ballast) using ≥ 200 watts Fixture Lighting 12 96% 532.49 $454.90 $ – $139.01 $75.00 $0.021 5.07 2.96 4 T5/T8 High bay (new fixture) 6 Lamp 4-ft T8s and electronic ballast or 2, 3, or 4 Lamp 4-ft T5HO's and electronic ballast Fixture (lamp & ballast) using 200 to 399 watts Fixture Lighting 12 96% 364.44 $311.34 $ – $173.68 $75.00 $0.021 3.62 1.68 4 T5/T8 High bay (new fixture) 6 or 8 Lamp 4-ft T8's and electronic ballast or 4 or 6 Lamp 4-ft T5HO's and electronic ballast Fixture (lamp & ballast) using ≥ 400 watts Fixture Lighting 12 96% 872.96 $745.76 $ – $222.90 $110.00 $0.021 5.58 3.02 4 T5/T8 High bay (new fixture) 10 or 12 Lamp 4-ft T8's and electronic ballast or 8 or 10 Lamp 4-ft T5HO's and electronic ballast Fixture (lamp & ballast) 751 to 1100 watts Fixture Lighting 12 96% 2,084.25 $1,780.55 $ – $375.60 $180.00 $0.021 7.64 4.15 4 Compact Fluorescents (CFLs) Screw-in compact fluorescent ≤ 32 watts Fixture using ≥ 60 input watts Fixture Lighting 12 96% 98.00 $83.72 $ – $23.00 $2.00 $0.021 19.81 3.32 4 CFLs Screw-in compact fluorescent 33 to 59 watts Fixture using ≥ 100 input watts Fixture Lighting 12 96% 143.50 $122.59 $ – $31.00 $4.00 $0.021 16.78 3.57 4 CFLs Screw-in compact fluorescent ≥ 60 watts Fixture using ≥ 150 input watts Fixture Lighting 12 96% 175.00 $149.50 $ – $29.00 $20.00 $0.021 6.06 4.44 4 CFLs Screw-in cold-cathode ≤ 32 watts Fixture using ≥ 60 input watts Fixture Lighting 12 96% 164.50 $140.53 $ – $34.67 $4.00 $0.021 18.10 3.66 4 CFLs Hard-wired compact fluorescent ≤ 49 watts and electronic ballasts Fixture using ≥ 90 input watts Fixture Lighting 12 96% 143.50 $122.59 $ – $85.00 $30.00 $0.021 3.56 1.37 4 CFLs Hard-wired compact fluorescent 50 to 99 watts and electronic ballasts Fixture using ≥ 150 input watts Fixture Lighting 12 96% 178.50 $152.49 $ – $104.50 $40.00 $0.021 3.35 1.39 4 LEDs Screw-in or pin-based LED ≤ 10 watts Fixture using ≥ 40 input watts Fixture Lighting 12 96% 105.00 $89.70 $ – $45.00 $10.00 $0.021 7.06 1.88 4 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 103 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Ceramic/pulse-start MH 150 to 250 input watts metal halide Fixture (lamp & ballast) using ≥ 295 input watts Fixture Lighting 16 96% 570.50 $630.58 $ – $185.00 $30.00 $0.021 14.42 3.17 4 Ceramic/pulse- start MH 251 to 360 input watts metal halide Fixture (lamp & ballast) using ≥ 450 input watts Fixture Lighting 16 96% 499.63 $552.24 $ – $217.50 $55.00 $0.021 8.09 2.39 4 Ceramic/pulse-start MH 361+ input watts metal halide Fixture (lamp & ballast) using ≥ 600 input watts Fixture Lighting 16 96% 2,033.50 $2,247.64 $ – $245.00 $105.00 $0.021 14.61 7.65 4 LED Exits LED exit sign or equivalent (5 watts or less) Exit sign using ≥ 18 watts Fixture Lighting 16 96% 88.67 $98.00 $ – $68.69 $25.00 $0.021 3.50 1.37 4 Lighting controls Wall switch occupancy sensor Manual or no prior control Fixture Lighting 10 96% 149.30 $107.71 $ – $90.00 $35.00 $0.021 2.71 1.14 4 Lighting controls Wall or ceiling mount occupancy sensor Manual or no prior control Fixture Lighting 10 96% 472.17 $340.65 $ – $130.00 $50.00 $0.021 5.46 2.39 4 Lighting controls Fixture mount occupancy sensor Manual or no prior control Fixture Lighting 10 96% 252.22 $181.96 $ – $100.00 $50.00 $0.021 3.16 1.69 4 Lighting controls Interior photocell control (dimming, step-dimming or switching) Manual or no prior control Fixture Lighting 10 96% 379.42 $273.73 $ – $130.00 $40.00 $0.021 5.48 1.96 4 Lighting controls Auto-off time switch or time clock control (minimum of 100 watts connected to load) Manual or no prior control Fixture Lighting 10 96% 272.74 $196.77 $ – $125.00 $40.00 $0.021 4.13 1.48 4 A/C/Heat pump units PTAC/PTHP unit, min 12 EER Standard PTAC/PTHP unit Unit HVAC 12 80% 562.50 $599.74 $ – $255.00 $50.00 $0.021 7.76 2.12 2 A/C/Heat pump units 5 ton or less 1-phase AC unit, min 14 SEER Standard 1-5 ton AC unit Ton HVAC 15 80% 239.04 0.34 $308.19 $ – $50.00 $25.00 $0.021 8.21 4.93 5 A/C/Heat pump units 5 ton or less 1-phase AC unit, min 15 SEER Standard 5 ton or less AC unit Ton HVAC 15 80% 278.88 0.40 $359.56 $ – $100.00 $50.00 $0.021 5.15 3.00 5 Supplement 1: Cost-Effectiveness Idaho Power Company Page 104 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source A/C/Heat pump units 5 ton or less 1-phase AC unit, min 16 SEER Standard 5 ton or less AC unit Ton HVAC 15 80% 313.74 0.45 $404.50 $ – $150.00 $75.00 $0.021 3.97 2.29 5 A/C/Heat pump units 5 ton or less 3-phase AC unit, min 13 SEER Standard 1-5 ton AC unit Ton HVAC 15 80% 415.50 $535.70 $ – $75.00 $50.00 $0.021 7.30 5.44 2 A/C/Heat pump units 5 ton or less 3-phase AC unit, min 14 SEER Standard 5 ton or less AC unit Ton HVAC 15 80% 239.04 0.34 $308.19 $ – $75.00 $75.00 $0.021 3.08 3.08 5 A/C/Heat pump units 5 ton or less 3-phase AC unit, min 15 SEER Standard 5 ton or less AC unit Ton HVAC 15 80% 278.88 0.40 $359.56 $ – $150.00 $100.00 $0.021 2.72 1.97 5 A/C/Heat pump units 6-10 ton A/C unit, min 11 EER Standard 6-10 ton AC unit Ton HVAC 15 80% 120.09 0.17 $154.83 $ – $100.00 $50.00 $0.021 2.36 1.34 5 A/C/Heat pump units 11-19 ton A/C unit, min 10.8 EER Standard 11-19 ton AC unit Ton HVAC 15 80% 124.95 0.18 $161.09 $ – $100.00 $50.00 $0.021 2.45 1.39 5 A/C/Heat pump units 20 ton or more A/C unit, min 10 EER Standard 20 ton+ AC unit Ton HVAC 15 80% 92.96 0.13 $119.85 $ – $75.00 $50.00 $0.021 1.85 1.33 5 Economizers Air-side economizer control addition No prior control Ton HVAC 15 80% 300.00 0.11 $386.79 $ – $170.00 $75.00 $0.021 3.81 1.97 5 Economizers Water-side economizer control addition No prior control Ton HVAC 10 80% 1,199.10 0.06 $1,088.80 $ – $463.00 $75.00 $0.021 8.69 2.12 5 Economizers Air-side economizer system repair Non-functional Economizer Unit HVAC 15 80% 4,499.29 1.72 $5,800.88 $ – $630.00 $250.00 $0.021 13.47 7.16 5 Evaporative coolers/pre-coolers Pre-cooler added to condenser Standard air cooled AC unit Ton HVAC 10 80% 832.30 0.78 $755.74 $ – $200.00 $100.00 $0.021 5.15 3.06 5 Evaporative coolers/pre-coolers Retrofit to direct evaporative cooler Replacing standard AC unit Ton HVAC 15 80% 902.52 0.95 $1,163.61 $ – $400.00 $200.00 $0.021 4.25 2.46 5 Evaporative coolers/pre-coolers Retrofit to indirect evaporative cooler Replacing standard AC unit Ton HVAC 15 80% 676.89 0.71 $872.71 $ – $550.00 $300.00 $0.021 2.22 1.36 5 Variable speed fans/pumps Variable speed drive, fan Single speed HVAC system fan HP HVAC 15 96% 1,078.29 - $1,390.23 $ – $187.00 $60.00 $0.021 16.15 6.52 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 105 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Variable speed fans/pumps Variable speed drive, pump Single-speed HVAC system pump HP HVAC 15 96% 891.74 - $1,149.72 $ – $187.00 $60.00 $0.021 14.02 5.50 5 Programmable Thermostats 7-day, 2-stage setback thermostat Manual thermostat Unit HVAC 11 80% 4,209.94 - $4,161.81 $ – $174.76 $40.00 $0.021 25.93 14.09 5 Automated control systems Energy management control systems Manual controls ft2 HVAC 14 80% 1.20 - $1.46 $ – $0.95 $0.30 $0.021 3.59 1.38 5 Automated control systems Control system reprogramming/ optimization Automated control system ft2 HVAC 4 80% 0.75 $0.28 $ – $0.15 $0.10 $0.021 1.93 1.43 2 Automated control systems Lodging room occupancy control system Manual controls Room HVAC 12 80% 900.00 $959.58 $ – $75.00 $50.00 $0.021 11.14 8.64 2 NEMA Premium® Efficiency Motors 1 hp Motor, min 85.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 57.25 0.02 $66.49 $ – $50.00 $20.00 $0.021 3.01 1.28 5 NEMA Premium Efficiency Motors 1.5 hp Motor, min 86.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 71.38 0.02 $82.91 $ – $73.00 $25.00 $0.021 3.00 1.10 5 NEMA Premium Efficiency Motors 2 hp Motor, min 86.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 94.86 0.03 $110.18 $ – $65.00 $30.00 $0.021 3.31 1.61 5 NEMA Premium Efficiency Motors 3 hp Motor, min 89.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 145.98 0.05 $169.55 $ – $73.00 $35.00 $0.021 4.28 2.18 5 NEMA Premium Efficiency Motors 5 hp Motor, min 89.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 182.82 0.06 $212.33 $ – $99.00 $40.00 $0.021 4.65 2.03 5 NEMA Premium Efficiency Motors 7.5 hp Motor, min 91.7% efficiency Same or larger hp standard motor Motor Motor 15 96% 443.33 0.13 $514.91 $ – $71.00 $55.00 $0.021 7.69 6.20 5 NEMA Premium Efficiency Motors 10 hp Motor, min 91.7% efficiency Same or larger hp standard motor Motor Motor 15 96% 544.74 0.16 $632.69 $ – $90.00 $70.00 $0.021 7.46 6.04 5 NEMA Premium Efficiency Motors 15 hp Motor, min 93.0% efficiency Same or larger hp standard motor Motor Motor 15 96% 720.26 0.21 $836.55 $ – $168.00 $90.00 $0.021 7.64 4.46 5 Supplement 1: Cost-Effectiveness Idaho Power Company Page 106 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source NEMA Premium Efficiency Motors 20 hp Motor, min 93.0% efficiency Same or larger hp standard motor Motor Motor 15 96% 996.47 0.30 $1,157.36 $ – $165.00 $110.00 $0.021 8.49 6.05 5 NEMA Premium Efficiency Motors 25 hp Motor, min 93.6% efficiency Same or larger hp standard motor Motor Motor 15 96% 1,604.32 0.42 $1,863.34 $ – $329.00 $130.00 $0.021 10.93 5.04 5 NEMA Premium Efficiency Motors 30 hp Motor, min 94.1% efficiency Same or larger hp standard motor Motor Motor 15 96% 1,819.00 0.48 $2,112.68 $ – $331.00 $150.00 $0.021 10.78 5.60 5 NEMA Premium Efficiency Motors 40 hp Motor, min 94.1% efficiency Same or larger hp standard motor Motor Motor 15 96% 2,048.95 0.54 $2,379.75 $ – $398.00 $180.00 $0.021 10.24 5.28 5 NEMA Premium Efficiency Motors 50 hp Motor, min 94.5% efficiency Same or larger hp standard motor Motor Motor 15 96% 2,120.15 0.56 $2,462.46 $ – $384.00 $220.00 $0.021 8.94 5.60 5 NEMA Premium Efficiency Motors 60 hp Motor, min 95.0% efficiency Same or larger hp standard motor Motor Motor 15 96% 2,931.36 0.60 $3,404.64 $ – $332.00 $280.00 $0.021 9.57 8.35 5 NEMA Premium Efficiency Motors 75 hp Motor, min 95.4% efficiency Same or larger hp standard motor Motor Motor 15 96% 3,007.97 0.62 $3,493.62 $ – $366.00 $350.00 $0.021 8.12 7.83 5 NEMA Premium Efficiency Motors 100 hp Motor, min 95.4% efficiency Same or larger hp standard motor Motor Motor 15 96% 4,460.07 0.91 $5,180.16 $ – $555.00 $420.00 $0.021 9.68 7.73 5 NEMA Premium Efficiency Motors 125 hp Motor, min 95.4% efficiency Same or larger hp standard motor Motor Motor 15 96% 6,428.45 1.24 $7,466.34 $ – $961.00 $550.00 $0.021 10.46 6.64 5 NEMA Premium Efficiency Motors 150 hp Motor, min 95.8% efficiency Same or larger hp standard motor Motor Motor 15 96% 7,233.63 1.40 $8,401.52 $ – $609.00 $650.00 $0.021 10.06 10.58 5 NEMA Premium Efficiency Motors 200 hp Motor, min 96.2% efficiency Same or larger hp standard motor Motor Motor 15 96% 10,077.27 1.95 $11,704.27 $ – $964.00 $750.00 $0.021 11.68 9.63 5 Downsizing bonus Downsizing motors during retrofit 10-200 hp existing motor HP Motor 15 96% 12.60 0.00 $14.64 $ – $- $3.00 $0.021 4.30 4.30 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 107 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source ECM motors ECM motor Standard induction motor Motor Motor 15 96% 421.80 0.08 $489.90 $ – $110.00 $30.00 $0.021 12.10 4.07 5 Variable speed controls Variable speed drives Standard motor, 5-200 hp HP Motor 10 96% 3,542.00 - $2,870.99 $ – $187.00 $60.00 $0.021 20.51 10.75 5 Premium windows SHGC of .30 or less and U-Factor .30 or less. Standard window ft2 HVAC 30 80% 1.38 0.00 $2.87 $ – $1.50 $1.50 $0.021 1.50 1.50 5 Efficient windows SHGC of .40 or less and U-Factor .42 or less. Standard window ft2 HVAC 30 80% 0.92 0.00 $1.91 $ – $0.68 $1.00 $0.021 1.50 2.00 5 Window shading Adding window shade screen No screen or other shading ft2 HVAC 10 80% 2.10 0.00 $1.91 $ – $1.00 $0.50 $0.021 2.80 1.62 5 2010—Roll-up doors Insulated door (min R4) Uninsulated roll-up door ft2 Miscellaneous 8 80% 0.30 $0.17 $ – $0.08 $0.05 $0.021 2.45 1.81 2,6 Reflective roofing Adding reflective roof treatment Non-reflective low pitch roof ft2 HVAC 15 80% 0.40 0.00 $0.52 $ – $0.32 $0.05 $0.021 7.06 1.50 5 Roof/ceiling insulation Increasing to R24 min insulation Insulation level, R11 or less ft2 HVAC 40 80% 0.92 0.00 $2.20 $ – $0.83 $0.10 $0.021 14.73 2.50 5 Roof/ceiling insulation Increasing to R38 min insulation Insulation level, R11 or less ft2 HVAC 40 80% 1.46 0.00 $3.48 $ – $0.95 $0.20 $0.021 12.07 3.34 5 Wall insulation Increase to R11 min insulation Insulation level, R5 or less ft2 HVAC 40 80% 1.04 0.00 $2.49 $ – $0.62 $0.05 $0.021 27.73 3.81 5 Wall insulation Increase to R19 min insulation Insulation level, R5 or less ft2 HVAC 40 80% 2.44 0.00 $5.82 $ – $0.74 $0.10 $0.021 30.78 7.01 5 Refrigeration cases Efficient, medium-temp open case Standard medium-temp open case Linear Foot Refrigeration 16 96% 148.18 0.01 $154.48 $ – $100.00 $20.00 $0.021 6.42 1.48 5 Refrigeration cases Efficient, medium-temp reach-in Standard medium-temp open case Linear Foot Refrigeration 16 96% 564.94 0.06 $588.92 $ – $100.00 $100.00 $0.021 5.05 5.05 5 Refrigeration cases Efficient, low-temp reach-in (reach-in) Standard low-temp reach-in Linear Foot Refrigeration 16 96% 478.36 0.04 $498.67 $ – $100.00 $150.00 $0.021 2.99 4.27 5 Supplement 1: Cost-Effectiveness Idaho Power Company Page 108 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Refrigeration cases Efficient, low-temp reach-in (open case) Standard low-temp open case Linear Ft Refrigeration 16 96% 1,208.00 0.12 $1,259.29 $ – $100.00 $150.00 $0.021 6.89 9.49 5 Refrigeration cases Efficient, low-temp reach-in (coffin case) Standard low-temp coffin case Linear Ft Refrigeration 16 96% 703.42 0.07 $733.29 $ – $100.00 $55.00 $0.021 10.09 6.23 5 Refrigeration cases Vertical night covers No covers present Linear Ft Refrigeration 5 96% 148.00 - $49.83 $ – $9.00 $9.00 $0.021 3.95 3.95 5 Refrigeration cases Horizontal night covers No covers present Linear Ft Refrigeration 5 96% 59.00 - $19.87 $ – $9.00 $5.00 $0.021 3.06 1.89 5 Refrigeration cases Refrigeration line insulation No insulation present Linear Ft Refrigeration 11 96% 17.00 0.00 $12.59 $ – $2.00 $1.00 $0.021 8.90 5.21 5 Refrigeration cases Door gasket—walk-in No or damaged door gasket Linear Ft Refrigeration 4 96% 137.50 0.02 $36.39 $ – $4.00 $2.00 $0.021 7.15 5.13 5 Refrigeration cases Door gasket—reach-in Damaged door gasket Linear Ft Refrigeration 4 96% 92.50 0.01 $24.48 $ – $4.00 $1.00 $0.021 7.99 4.04 5 Refrigeration cases Auto-closer—walk-in No or damaged auto closer, low-temp Unit Refrigeration 8 96% 2,470.00 0.40 $1,342.80 $ – $433.00 $50.00 $0.021 12.65 2.75 5 Refrigeration cases Auto-closer—reach-in Damaged auto closer, low-temp Unit Refrigeration 8 96% 1,297.00 0.18 $705.11 $ – $300.00 $50.00 $0.021 8.76 2.13 5 Refrigeration cases Auto-closer—walk-in No or damaged auto closer, med-temp Unit Refrigeration 8 96% 1,067.00 0.17 $580.07 $ – $433.00 $40.00 $0.021 8.92 1.27 5 Refrigeration cases Auto-closer—reach-in Damaged auto closer, med-temp Unit Refrigeration 8 96% 243.00 0.03 $132.11 $ – $125.00 $40.00 $0.021 2.81 1.00 5 Refrigeration cases No-heat glass doors Standard low-temp reach-in Unit Refrigeration 12 96% 749.00 0.02 $601.08 $ – $200.00 $50.00 $0.021 8.78 2.75 5 2011—Refrigeration cases Anti-sweat heat (ASH) controls Low or med-temp case w/out controls Linear Ft Refrigeration 8 96% 379.00 $206.04 $ – $40.00 $40.00 $0.021 4.12 4.12 7 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 109 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source 2010—Refrigeration cases ASH controls Low or med-temp case w/out controls Linear Foot Refrigeration 12 96% 216.00 0.01 $173.34 $ – $56.00 $20.00 $0.021 6.78 2.82 5 Vending machines ENERGY STAR® vending machine Standard vending machine Unit Miscellaneous 14 96% 1,472.00 0.13 $1,432.23 $ – $350.00 $75.00 $0.021 12.98 3.72 5 Vending machines Beverage machine control Vending machine with no sensor Unit Miscellaneous 14 96% 546.50 - $531.73 $ – $170.00 $75.00 $0.021 5.90 2.87 5 Vending machines Other cold product control Vending machine with no sensor Unit Miscellaneous 14 96% 546.50 - $531.73 $ – $170.00 $50.00 $0.021 8.30 2.89 5 Vending machines Non-cooled snack control Vending machine with no sensor Unit Miscellaneous 14 96% 382.55 - $372.21 $ – $170.00 $25.00 $0.021 10.82 2.07 5 Commercial kitchen equipment ENERGY STAR dishwasher Standard dishwasher Unit Miscellaneous 11 96% 231.00 0.07 $180.27 $ – $55.00 $15.00 $0.021 8.72 2.97 5 Commercial kitchen equipment Low-temperature dish machine Dish machine w/ electric booster kW Office 13 96% 657.86 0.07 $589.01 $ – $127.00 $75.00 $0.021 6.37 4.08 5 Commercial kitchen equipment ENERGY STAR refrigerator Standard refrigerator Refrigerator Miscellaneous 13 96% 85.71 0.01 $78.00 $ – $30.00 $30.00 $0.021 2.35 2.35 5 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Refrigerator—Less than 30 cu.ft. Solid or Glass Door Refrigerator—Less than 30 cu.ft. Refrigerator Refrigeration 12 96% 379.75 $304.75 $ – $226.17 $75.00 $0.021 3.53 1.28 8 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Refrigerator—30 to 49.9 cu.ft Solid or Glass Door Refrigerator—30 to 49.9 cu.ft Refrigerator Refrigeration 12 96% 407.00 $326.62 $ – $226.17 $90.00 $0.021 3.18 1.37 8 Supplement 1: Cost-Effectiveness Idaho Power Company Page 110 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Refrigerator—50 cu.ft. and greater Solid or Glass Door Refrigerator—50 cu.ft. and greater Refrigerator Refrigeration 12 96% 541.00 $434.16 $ – $226.17 $140.00 $0.021 2.75 1.78 8 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Freezer—Less than 15 cu.ft. Solid or Glass Door Freezer—Less than 15 cu.ft. Freezer Refrigeration 12 96% 1,532.50 $1,229.84 $ – $394.79 $100.00 $0.021 8.93 2.84 8 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Freezer—15 to 29.9 cu.ft. Solid or Glass Door Freezer—15 to 29.9 cu.ft. Freezer Refrigeration 12 96% 1,610.50 $1,292.44 $ – $394.79 $150.00 $0.021 6.75 2.96 8 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Freezer—30 to 49.9 cu.ft Solid or Glass Door Freezer—30 to 49.9 cu.ft Freezer Refrigeration 12 96% 1,992.50 $1,599.00 $ – $394.79 $175.00 $0.021 7.08 3.59 8 Commercial kitchen equipment ENERGY STAR 2.0 Solid or Glass Door Freezer—50 cu.ft. and greater Solid or Glass Door Freezer—50 cu.ft. and greater Freezer Refrigeration 12 96% 3,978.50 $3,192.78 $ – $394.79 $200.00 $0.021 10.81 6.51 8 2010— Commercial kitchen equipment Solid door refrigerator, 2 doors Commercial 2 door refrigerator Refrigerator Refrigeration 12 96% 428.00 $343.47 $ – $111.00 $90.00 $0.021 3.33 2.77 9 2010—Commercial kitchen equipment Solid door freezer, 2 doors Commercial 2 door freezer Unit Refrigeration 12 96% 1,172.00 $940.54 $ – $363.00 $150.00 $0.021 5.17 2.38 9 Commercial kitchen equipment Ice maker, up to 200 lbs/day Standard ice maker of the same size Unit Miscellaneous 10 96% 161.20 $115.00 $ – $- $100.00 $0.021 1.07 1.07 10 Commercial kitchen equipment Ice maker, more than 200 lbs/day Standard ice maker of the same size Unit Miscellaneous 10 96% 596.33 $425.43 $ – $- $200.00 $0.021 1.92 1.92 11 Evaporator fans Evaporator fan controls Med-temp walk-in with no controls Unit Refrigeration 5 96% 361.00 0.01 $121.55 $ – $85.00 $25.00 $0.021 3.58 1.29 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 111 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Evaporator fans Efficient evaporator fan motors Med- or low-temp walk-in Motor Refrigeration 10 96% 478.30 0.05 $323.35 $ – $161.00 $100.00 $0.021 2.82 1.84 5 Evaporator fans ECM case fan motors Standard, shaded-pole fan motors Motor Refrigeration 15 96% 453.00 $446.20 $ – $110.00 $60.00 $0.021 6.16 3.65 12 2010—Evaporator fans ECM case fan motors Standard, shaded-pole fan motors Motor Refrigeration 10 96% 673.00 0.09 $454.97 $ – $161.00 $30.00 $0.021 9.90 2.57 5 Compressors/ condensers Efficient, low-temp compressor Standard low-temp compressor Ton Refrigeration 15 96% 1,051.00 0.16 $1,035.22 $ – $132.00 $45.00 $0.021 14.82 6.60 5 Compressors/ condensers Efficient, air-cooled condenser Standard air cooled condenser Ton Refrigeration 15 96% 410.01 0.10 $403.86 $ – $140.30 $100.00 $0.021 3.57 2.63 5 Compressors/ condensers Efficient, water-cooled condenser Standard air cooled condenser Ton Refrigeration 15 96% 559.03 0.14 $550.63 $ – $209.00 $100.00 $0.021 4.73 2.44 5 Compressors/ condensers Efficient, evaporative, condenser Standard air cooled condenser Ton Refrigeration 15 96% 678.74 0.17 $668.55 $ – $278.00 $200.00 $0.021 3.00 2.22 5 Head/suction pressure Floating head pressure controller Standard head pressure control HP Refrigeration 16 96% 1,916.94 0.07 $1,998.33 $ – $65.67 $60.00 $0.021 19.14 18.15 5 Head/suction pressure Floating suction pressure Standard suction pressure control HP Refrigeration 16 96% 272.91 0.04 $284.50 $ – $52.48 $10.00 $0.021 17.36 4.83 5 Case/Walk-in Lighting T8 fluorescent lighting T12 or T10 fluorescent lighting Lamp Refrigeration 6 96% 309.31 0.03 $125.87 $ – $44.70 $15.00 $0.021 5.62 2.42 5 Case/walk-in lighting LED display case lighting T12 or T10 fluorescent lighting Linear Foot Refrigeration 6 96% 114.25 $46.49 $ – $39.76 $15.00 $0.021 2.57 1.08 13 Case/walk-in lighting Fluorescent walk-in light fixture Incandescent walk-in light fixture Fixture Refrigeration 6 96% 627.99 0.08 $255.56 $ – $47.49 $25.00 $0.021 6.42 4.10 5 Office equipment 80 Plus® PC-desktop Standard personal computer Unit Office 4 96% 542.32 0.06 $149.92 $ – $15.00 $5.00 $0.021 8.78 5.54 5 Supplement 1: Cost-Effectiveness Idaho Power Company Page 112 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Office equipment 80 Plus PC-server Standard personal computer, server Unit Office 4 96% 542.32 0.06 $149.92 $ – $15.00 $10.00 $0.021 6.73 5.50 5 Office equipment ENERGY STAR PC Standard personal computer Unit Office 4 96% 457.32 0.05 $126.43 $ – $10.00 $10.00 $0.021 6.19 6.19 5 Office equipment ENERGY STAR Copier Standard copier w/o idle/off Unit Office 6 96% 205.40 0.02 $87.03 $ – $40.00 $25.00 $0.021 2.85 1.91 5 Office equipment PC network power management No central control Unit Office 4 96% 99.00 $27.37 $ – $12.00 $10.00 $0.021 2.18 1.88 14 2010—Office equipment PC network power management No central control Unit Office 10 96% 196.00 0.01 $137.44 $ – $18.55 $10.00 $0.021 9.35 5.91 5 2010—Office equipment Flat panel LCD display Standard Cathode Ray (CRT) display Unit Office 4 96% 233.79 0.03 $64.63 $ – $150.00 $10.00 $0.021 4.16 0.42 5, 15 Laundry machines High-efficiency washer Standard washer, electric hot water Washer Miscellaneous 14 96% 287.00 0.06 $279.25 $ – $195.00 $25.00 $0.021 8.64 1.38 5 2010—Laundry machines High-efficiency, coin-op washer Coin-op washer, w/out electric hot Washer Miscellaneous 8 96% 272.00 0.06 $156.44 $ – $175.00 $25.00 $0.021 4.89 0.86 5, 15 Laundry machines High-efficiency, coin-op washer Coin-op washer, electric hot water Washer Miscellaneous 8 96% 434.00 0.10 $249.61 $ – $175.00 $200.00 $0.021 1.15 1.29 5 a Average measure life. b NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 Idaho Power Demand-Side Management Potential Study by Nexant, Inc. IPC DSM Potential - Commercial Model 081209.xlsm. 2009. Adjustment made in 2011 with Lighting Calculator. 2 Savings and participant costs calculated from Idaho Power engineering estimates and research. Participant costs include total install cost of the measure. 3 Measure not cost-effective due to participant cost. Adjustment made in 2011 with Lighting Calculator. 4 Evergreen Consulting Group, LLC. Idaho Power Lighting Tool. 2010. 5 Idaho Power Demand-Side Management Potential Study by Nexant, Inc. IPC DSM Potential - Commercial Model 081209.xlsm. 2009. 6 Removed from program in 2011 and moved to Custom Efficiency. 7 RTF. Deemed MeasuresV14.xls. Averaged low and med temp. 2007. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 113 8 RTF. CommRefrigFreezerFY10v2_5.xls. Averaged solid and glass door. 2010. 9 RTF. CommRefrigFreezerFY10v2_4.xls. 2010. 10 RTF. ComIceMakerFY10v1_0.xls. Average of all ENERGY STAR air-cooled models producing less than 200 lbs/day. 2011. 11 RTF. ComIceMakerFY10v1_0.xls. Average of all ENERGY STAR air cooled models producing between 200-1000 lbs/day. 2011. 12 RTF. Grocery_DisplayCaseECMs_FY10v2_0.xls. 2010. 13 RTF. Grocery_DisplayCaseLEDs_FY10v2_0.xls and GroceryOpenDisplayCaseLEDs_v1.xls. Averaged the measures for less than 4 W/ln ft and 4-8.5 W/ln ft. 2011. 14 RTF. NonResNetCompPwrMgt_v3_0.xlsm. 2011. 15 Measure not cost-effective. Removed from program in 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 114 Demand-Side Management 2011 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 115 Irrigation Efficiency Segment: Irrigation 2011 Program Results Cost Inputs Ref Summary of Cost-Effectiveness Results Program Administration ....................................................... $ 296,201 Test Benefit Cost Ratio Program Incentives ............................................................. 2,064,103 I Utility Cost Test ................................... $ 11,123,018 $ 2,360,304 4.71 Total Utility Cost ................................................................. $ 2,360,304 P Total Resource Cost Test ................... 20,549,264 13,281,492 1.55 Ratepayer Impact Measure Test ......... 11,123,018 7,004,145 1.59 Measure Equipment and Installation (Incremental Participant Cost) .............................................. $ 12,985,291 M Participant Cost Test ........................... 16,134,190 12,985,291 1.24 Net Benefit Inputs Ref Resource Savings 2011 Annual Gross Energy (kWh) ................. 13,979,833 Benefits and Costs Included in Each Test NPV Cumulative Energy (kWh) ..................... 102,337,497 $ 11,123,018 Utility Cost Test ........................................ = S * NTG = P Total Electric Savings .................................... $ 11,123,018 S Total Resource Cost Test ......................... = (S * NTG) + NUI + NEB = P +((M—I) * NTG) Ratepayer Impact Measure Test .............. = S * NTG = P + (B * NTG) Participant Bill Savings Participant Cost Test ................................ = B + I + NUI + NEB = M NPV Cumulative Participant Savings............. $ 4,643,841 B Assumptions for Levelized Calculations Other Benefits Discount Rate Non-Utility Rebates/Incentives .......................................... $ — NUI Nominal (Weighted Average Cost of Capital [WACC]) ................................. 7.00% Non-Electric Benefits ........................................................ $ 9,426,246 NEB Real ((1 + WACC) / (1 + Escalation))—1 ...................................................... 3.88% Escalation Rate ................................................................................................. 3.00% Net-to-Gross (NTG) ........................................................................................... 100% Average 2011 Customer Segment Rate/kWh .................................................... $0.048 Line Losses ....................................................................................................... 10.90% Notes: Energy savings are combined for projects under the Custom and Menu program. Savings under each Custom project is unique and individually calculated and assessed. Green Rewind initiative is available to agricultural, commercial, and industrial customers for motors between 25 to 5,000 HP. Agricultural motor rewinds are paid under Irrigation Efficiency. No NTG. Deemed savings from the Regional Technical Forum (RTF) already accounts for net realized energy savings. Non-energy benefits based on Idaho Power engineering estimates of annual yield benefit and labor, maintenance, and water savings for Custom and Menu projects. Supplement 1: Cost-Effectiveness Idaho Power Company Page 116 Demand-Side Management 2011 Annual Report Year: 2011 Program: Irrigation Efficiency Market Segment: Irrigation Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name a Measure Description Replacing Measure Unit End Use Measure Life (years)b NTGc Annual Gross Energy Savings (kWh/yr)d Peak Demand Reduction (kW)e NPV Avoided Costsf Non- Electric Benefit Gross Incremental Participant Costg Incentive/ Unit Admin ($/kWh)h UC Ratioi TRC Ratioj Source Nozzle replacement New flow-control-type nozzles replacing existing brass nozzles or worn out flow control nozzles of same flow rate or less. Brass nozzles or worn out flow control nozzles of same flow rate or less Unit Irrigation 4 100% 30.00 $11.25 $ – $5.67 $1.50 $0.021 5.28 1.79 1 Nozzle replacement New nozzles replacing existing worn nozzles of same flow rate or less Worn nozzle of same flow rate or less Unit Irrigation 5 100% 39.00 $14.62 $ – $1.60 $0.25 $0.021 13.68 6.06 1 Sprinklers Rebuilt or new brass impact sprinklers Unit Irrigation 5 100% 30.00 $14.16 $ – $12.33 $2.75 $0.021 4.19 1.09 1 Levelers Rebuilt or new wheel line levelers Unit Irrigation 5 100% 2.00 $0.94 $ – $3.25 $0.75 $0.021 1.19 0.29 1, 2 Sprinklers New rotating-type sprinklers or low-pressure pivot sprinkler heads with the same flow rate or less Worn sprinkler with the same flow rate or less Unit Irrigation 5 100% 28.00 $13.21 $ – $11.88 $2.75 $0.021 3.96 1.06 1 Regulator replacement New low pressure regulators Unit Irrigation 5 100% 38.00 $17.93 $ – $6.13 $5.00 $0.021 3.09 2.59 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 117 Benefit Cost Benefit/Cost Tests Measure Name a Measure Description Replacing Measure Unit End Use Measure Life (years)b NTGc Annual Gross Energy Savings (kWh/yr)d Peak Demand Reduction (kW)e NPV Avoided Costsf Non- Electric Benefit Gross Incremental Participant Costg Incentive/ Unit Admin ($/kWh)h UC Ratioi TRC Ratioj Source Gasket replacement New drains, risercaps, and gaskets for hand lines, wheel lines or portable mainline Unit Irrigation 5 100% 24.00 $11.33 $ – $8.80 $1.00 $0.021 7.53 1.22 1 Hub replacement New wheel line hubs Unit Irrigation 10 100% 69.00 $63.30 $ – $50.00 $12.00 $0.021 4.71 1.23 1 New goose necks New goose neck with drop tube or boomback Outlet Irrigation 10 100% 14.00 $12.84 $ – $10.67 $1.00 $0.021 9.93 1.17 1 Pipe repair Cut and pipe press or weld repair of leaking hand lines, wheel lines, and portable mainline Joint Irrigation 8 100% 48.00 $35.84 $ – $18.00 $8.00 $0.021 3.98 1.89 1 Gasket replacement New center pivot base boot gasket Unit Irrigation 8 100% 1,282.00 $957.34 $ – $250.00 $125.00 $0.021 6.30 3.46 1 a Available measures in the Irrigation Efficiency Menu Incentive Option. For the Custom Incentive Option, projects are thoroughly reviewed by Idaho Power staff. b Average measure life. c NTG percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc. 2009. d Estimated kWh savings measured at the customer’s meter, excluding line losses. e Estimated peak demand reduction measured at the customer’s meter, excluding line losses. f Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. g Incremental participant cost prior to customer incentive. h Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. i Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). j Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. IrrgAgSprinklerNozzleFY10v2_1.xls. Western Idaho. 2010. 2 Measure not cost-effective. Measure will be updated in 2012 to remove new wheel line levelers. Will be reviewed in 2012 as part of the University of Idaho research project. Supplement 1: Cost-Effectiveness Idaho Power Company Page 118 Demand-Side Management 2011 Annual Report Year: 2011 Program: Irrigation Efficiency–Green Motors Market Segment: Irrigation Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 25HP Green Motors Program Rewind: motor size 25HP Standard rewind practice Motor Irrigation 20 80% 236.66 $383.93 $ – $176.33 $50.00 $0.050 4.97 1.89 1 Green Motors Program Rewind: motor size 30HP Green Motors Program Rewind: motor size 30HP Standard rewind practice Motor Irrigation 20 80% 254.32 $412.59 $ – $193.67 $60.00 $0.050 4.54 1.84 1 Green Motors Program Rewind: motor size 40HP Green Motors Program Rewind: motor size 40HP Standard rewind practice Motor Irrigation 20 80% 297.31 $482.33 $ – $236.67 $80.00 $0.050 4.07 1.75 1 Green Motors Program Rewind: motor size 50HP Green Motors Program Rewind: motor size 50HP Standard rewind practice Motor Irrigation 20 80% 322.49 $523.18 $ – $262.00 $100.00 $0.050 3.60 1.70 1 Green Motors Program Rewind: motor size 60HP Green Motors Program Rewind: motor size 60HP Standard rewind practice Motor Irrigation 20 80% 327.83 $531.84 $ – $309.00 $120.00 $0.050 3.12 1.48 1 Green Motors Program Rewind: motor size 70HP Green Motors Program Rewind: motor size 70HP Standard rewind practice Motor Irrigation 20 80% 340.65 $552.65 $ – $334.00 $150.00 $0.050 2.65 1.41 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 119 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 100HP Green Motors Program Rewind: motor size 100HP Standard rewind practice Motor Irrigation 20 80% 584.85 $948.81 $ – $414.33 $200.00 $0.050 3.31 1.89 1 Green Motors Program Rewind: motor size 125HP Green Motors Program Rewind: motor size 125HP Standard rewind practice Motor Irrigation 20 80% 727.40 $1,180.07 $ – $465.33 $250.00 $0.050 3.30 2.06 1 Green Motors Program Rewind: motor size 150HP Green Motors Program Rewind: motor size 150HP Standard rewind practice Motor Irrigation 20 80% 866.82 $1,406.26 $ – $518.33 $300.00 $0.050 3.28 2.17 1 Green Motors Program Rewind: motor size 200HP Green Motors Program Rewind: motor size 200HP Standard rewind practice Motor Irrigation 20 80% 1,148.81 $1,863.74 $ – $624.00 $400.00 $0.050 3.26 2.34 1 Green Motors Program Rewind: motor size 250HP Green Motors Program Rewind: motor size 250HP Standard rewind practice Motor Irrigation 20 80% 1,434.01 $2,326.41 $ – $802.00 $500.00 $0.050 3.26 2.29 1 Green Motors Program Rewind: motor size 300HP Green Motors Program Rewind: motor size 300HP Standard rewind practice Motor Irrigation 20 80% 1,718.37 $2,787.74 $ – $810.67 $600.00 $0.050 3.25 2.61 1 Green Motors Program Rewind: motor size 350HP Green Motors Program Rewind: motor size 350HP Standard rewind practice Motor Irrigation 20 80% 2,004.77 $3,252.36 $ – $849.67 $700.00 $0.050 3.25 2.83 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 120 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 400HP Green Motors Program Rewind: motor size 400HP Standard rewind practice Motor Irrigation 20 80% 2,284.73 $3,706.56 $ – $949.00 $800.00 $0.050 3.24 2.87 1 Green Motors Program Rewind: motor size 450HP Green Motors Program Rewind: motor size 450HP Standard rewind practice Motor Irrigation 20 80% 2,563.19 $4,158.29 $ – $1,037.33 $900.00 $0.050 3.24 2.92 1 Green Motors Program Rewind: motor size 500HP Green Motors Program Rewind: motor size 500HP Standard rewind practice Motor Irrigation 20 80% 2,847.99 $4,620.33 $ – $1,120.67 $1,000.00 $0.050 3.24 2.98 1 Green Motors Program Rewind: motor size 600HP Green Motors Program Rewind: motor size 600HP Standard rewind practice Motor Irrigation 20 80% 3,417.54 $5,544.32 $ – $1,651.45 $1,200.00 $0.050 3.24 2.56 1 Green Motors Program Rewind: motor size 700HP Green Motors Program Rewind: motor size 700HP Standard rewind practice Motor Irrigation 20 80% 3,987.13 $6,468.37 $ – $1,801.73 $1,400.00 $0.050 3.24 2.69 1 Green Motors Program Rewind: motor size 800HP Green Motors Program Rewind: motor size 800HP Standard rewind practice Motor Irrigation 20 80% 4,556.72 $7,392.43 $ – $1,999.06 $1,600.00 $0.050 3.24 2.75 1 Green Motors Program Rewind: motor size 900HP Green Motors Program Rewind: motor size 900HP Standard rewind practice Motor Irrigation 20 80% 5,126.31 $8,316.48 $ – $2,203.88 $1,800.00 $0.050 3.24 2.80 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2011 Annual Report Page 121 Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 1000HP Green Motors Program Rewind: motor size 1000HP Standard rewind practice Motor Irrigation 20 80% 5,695.90 $9,240.53 $ – $2,375.10 $2,000.00 $0.050 3.24 2.86 1 Green Motors Program Rewind: motor size 1250HP Green Motors Program Rewind: motor size 1250HP Standard rewind practice Motor Irrigation 20 80% 7,119.87 $11,550.67 $ – $2,837.23 $2,500.00 $0.050 3.24 2.96 1 Green Motors Program Rewind: motor size 1500HP Green Motors Program Rewind: motor size 1500HP Standard rewind practice Motor Irrigation 20 80% 8,543.85 $13,860.80 $ – $3,250.13 $3,000.00 $0.050 3.24 3.06 1 Green Motors Program Rewind: motor size 1750HP Green Motors Program Rewind: motor size 1750HP Standard rewind practice Motor Irrigation 20 80% 9,967.82 $16,170.93 $ – $3,709.54 $3,500.00 $0.050 3.24 3.11 1 Green Motors Program Rewind: motor size 2000HP Green Motors Program Rewind: motor size 2000HP Standard rewind practice Motor Irrigation 20 80% 11,391.80 $18,481.07 $ – $4,161.19 $4,000.00 $0.050 3.24 3.15 1 Green Motors Program Rewind: motor size 2250HP Green Motors Program Rewind: motor size 2250HP Standard rewind practice Motor Irrigation 20 80% 12,815.77 $20,791.20 $ – $4,533.29 $4,500.00 $0.050 3.24 3.22 1 Green Motors Program Rewind: motor size 2500HP Green Motors Program Rewind: motor size 2500HP Standard rewind practice Motor Irrigation 20 80% 14,239.75 $23,101.33 $ – $4,959.78 $5,000.00 $0.050 3.24 3.25 1,2 Supplement 1: Cost-Effectiveness Idaho Power Company Page 122 Demand-Side Management 2011 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Description Replacing Measure Unit End Use Measure Life (years)a NTGb Annual Gross Energy Savings (kWh/yr)c Peak Demand Reduction (kW)d NPV Avoided Costse Non- Electric Benefit Gross Incremental Participant Costf Incentive/ Unit Admin ($/kWh)g UC Ratioh TRC Ratioi Source Green Motors Program Rewind: motor size 3000HP Green Motors Program Rewind: motor size 3000HP Standard rewind practice Motor Irrigation 20 80% 17,087.70 $27,721.60 $ – $5,798.90 $6,000.00 $0.050 3.24 3.31 1,2 Green Motors Program Rewind: motor size 3500HP Green Motors Program Rewind: motor size 3500HP Standard rewind practice Motor Irrigation 20 80% 19,935.65 $32,341.87 $ – $6,408.05 $7,000.00 $0.050 3.24 3.44 1,2 Green Motors Program Rewind: motor size 4000HP Green Motors Program Rewind: motor size 4000HP Standard rewind practice Motor Irrigation 20 80% 22,783.60 $36,962.13 $ – $7,154.28 $8,000.00 $0.050 3.24 3.49 1,2 Green Motors Program Rewind: motor size 4500HP Green Motors Program Rewind: motor size 4500HP Standard rewind practice Motor Irrigation 20 80% 25,631.54 $41,582.40 $ – $7,710.11 $9,000.00 $0.050 3.24 3.60 1,2 Green Motors Program Rewind: motor size 5000HP Green Motors Program Rewind: motor size 5000HP Standard rewind practice Motor Irrigation 20 80% 28,479.49 $46,202.67 $ – $8,230.18 $10,000.00 $0.050 3.24 3.69 1,2 a Average measure life. Adjusted measure life from RTF to match methodology used to calculate measure life for industrial motor rewinds. Capped at 20 years. b NTG percentage. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d Estimated peak demand reduction measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape, measure life, and savings, including line losses and alternative costs by pricing period as provided in the 2011 IRP. f Incremental participant cost prior to customer incentive. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2011 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs * NTG) + Non-Electric Benefit) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost – Incentives) * NTG)). 1 RTF. GreenMotorsRewind_Ag_FY10v1_2.xls. 2010. 2 Incentive greater than incremental cost. This is a regional initiative sponsored by the RTF and GMPG. Costs and savings deemed by RTF and incentives set by GMPG. No incentive paid on motors greater than 450hp in 2011.