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HomeMy WebLinkAbout20140317DSM 2013 Supplement 1.pdfMarch 15, 2014 2013 ANNUAL REPORT SUPPLEMENT 1: Demand-Side Management Cost-Effectiveness Printed on recycled paper Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page i TABLE OF CONTENTS Table of Contents ......................................................................................................................................... i List of Tables ............................................................................................................................................... i Supplement 1: Cost-Effectiveness ...............................................................................................................1 Cost-Effectiveness .................................................................................................................................1 Methodology ....................................................................................................................................1 Assumptions .....................................................................................................................................2 Net-to-Gross .....................................................................................................................................4 Results ..............................................................................................................................................4 2013 DSM Detailed Expense by Program .............................................................................................7 Cost-Effectiveness Tables by Program ......................................................................................................13 FlexPeak Management ...................................................................................................................13 Ductless Heat Pump Pilot ..............................................................................................................15 Energy Efficient Lighting ..............................................................................................................17 Energy House Calls........................................................................................................................21 ENERY STAR® Homes Northwest ...............................................................................................25 Heating & Cooling Efficiency Program ........................................................................................27 Home Improvement Program ........................................................................................................31 Home Products Program ................................................................................................................47 Rebate Advantage ..........................................................................................................................51 See ya later, refrigerator® ...............................................................................................................55 Weatherization Assistance for Qualified Customers .....................................................................57 Weatherization Solutions for Eligible Customers..........................................................................59 Building Efficiency ........................................................................................................................61 Custom Efficiency .........................................................................................................................65 Easy Upgrades ...............................................................................................................................69 Irrigation Efficiency Rewards ........................................................................................................83 LIST OF TABLES Table 1. 2013 non-cost-effective measures ........................................................................................6 Table 2. 2013 DSM detailed expenses by program (dollars) .............................................................7 Table 3. Cost-effectiveness summary by program...........................................................................11 Supplement 1: Cost-Effectiveness Idaho Power Company Page ii Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 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. New energy efficiency and demand response programs or measures are identified both as part of the Integrated Resource Plan (IRP) process and through ongoing program development and research activities.1 All current and potential programs and measures are screened by sector to determine cost-effectiveness. From the cost-effective demand-side management (DSM) resources, a forecast is developed and used in the IRP to define the resource potential of both energy efficiency and demand response. 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 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 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 ESource, the Edison Electrical Institute (EEI), Consortium for Energy Efficiency (CEE), American Council for an Energy Efficient Economy (ACEEE), Advanced Load Control Alliance (ALCA), and Association of Energy Service Professionals (AESP), to identify similar programs and their results. Additionally, Idaho Power relies on the results of program impact evaluations and recommendations from consultants. In 2013, Idaho Power contracted with ADM Associates, Inc. (ADM), The Johnson Consulting Group, Market Decisions Corporation, Opinion Dynamics Corporation (Opinion), and TRC Energy Services for program evaluations and research. Idaho Power’s goal is to have all programs reach benefit/cost (B/C) ratios of 1.0 or greater 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 an interaction between measures. Idaho Power may launch a pilot or a program to evaluate estimates or assumptions in the cost-effectiveness analysis. Following the 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 re-examined, 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, the National Action Plan for Energy Efficiency’s (NAPEE) Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging 1 The IRP is a biannual process with the most recent plan submitted in 2013. Supplement 1: Cost-Effectiveness Idaho Power Company Page 2 Demand-Side Management 2013 Annual Report Issues for Policy-Makers; and the National Action Plan on Demand Response. Traditionally, Idaho Power has primarily used the TRC test and the UC test to develop B/C ratios to determine the cost-effectiveness of DSM programs. These tests are still used because, as defined in the TAG and California Standard Practice Manual, they are 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 from a one-year perspective. The annual energy-savings benefit value is summed over the life of the measure or program and is discounted to reflect 2013 dollars. The result of the one-year perspective is shown in Supplement 1: Cost-Effectiveness. Appendix 4 of the main Demand-Side Management 2013 Annual Report includes the program cost-effectiveness to-date by including the culmination of actual historic savings values and expenses as well as the ongoing 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 where 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. Because the 2013 IRP process indicated a lack of near-term capacity deficits, on December 21, 2012, Idaho Power filed a proposal with the Idaho Public Utilities Commission (IPUC) to temporarily suspend two of its demand response programs, A/C Cool Credit and Irrigation Peak Rewards, for 2013. A settlement workshop was held in February 2013, with Idaho Power and interested stakeholders to discuss plans for the 2013 cycling season. The stipulation was filed on February 14, 2013. FlexPeak Management was not included in the original filing due to the company’s contractual obligation to EnerNOC, Inc. As part of the public workshops on Case No. IPC-E-13-14, Idaho Power and other stakeholders agreed on a new methodology for valuing demand response. The settlement agreement was approved in IPUC Order No. 32923 on November 12, 2013. The new methodology will be applied to the cost-effectiveness models for all demand response programs in 2014. Assumptions Idaho Power relies on research conducted by third-party sources to obtain savings and cost assumptions for various measures. These assumptions are routinely reviewed and updated as new information becomes available. For many of the measures within Supplement 1: Cost-Effectiveness, savings, costs, and load shapes were derived from either the Regional Technical Forum (RTF); the Demand-Side Management Potential Study conducted by Nexant, Inc., in 2009, or the Idaho Power Energy Efficiency Potential Study conducted by EnerNOC Utility Solutions Consulting Group in 2012. In 2013, EnerNOC provided Idaho Power with updated end-use load shapes. Those updated load shapes have been applied to each program and measure when applicable. The RTF 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 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 3 make any program changes. Idaho Power staff participate in the RTF by attending the monthly meetings and contributing to various sub-committees. Because cost data from the RTF information is in 2006 dollars, measures with costs from the RTF have been escalated by 15.035 percent in 2012. No 2013 inflator was available. This percentage is provided by the RTF at http://rtf.nwcouncil.org/measures/support/files/RTFStandardInformationWorkbook_v1_5.xlsx. 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. In 2013, ADM Associates began developing a technical reference manual (TRM) for the Building Efficiency and Easy Upgrades programs. Once the TRM is finalized in 2014, the measures will be reviewed and analyzed for cost-effectiveness. Occasionally, 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. The 2013 IRP was acknowledged by the IPUC in Order No. 32980 on February 24, 2014. The 2013 IRP will be the source of all financial inputs in cost-effectiveness models in 2014. 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 difficult because of 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, Idaho Power believes the WACC is not an appropriate discount rate to use. Because the customer bill savings is based on Idaho Power’s 2013 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 per kilowatt (kW). When multiplied by the effective load carrying capacity (ELCC) of 93.4 percent, the annual avoided capacity cost is $87.80/kW. The ELCC reduces the avoided capacity cost benefit. Because demand response programs do not match the availability of generation resources, these programs should not claim the full avoided capacity cost benefit of that supply-side resource. In 2011, Idaho Power determined the ELCC for demand response programs by creating load duration curves using five years of actual total system load data and 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 Supplement 1: Cost-Effectiveness Idaho Power Company Page 4 Demand-Side Management 2013 Annual Report to calculate the ELCC. Approximately 6.6 percent of the total hours were outside the programs’ parameters. Therefore, 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. 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 does as follows: 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. For most programs and individual measures, the NTG ratios are sourced from the 2009 Nexant Demand-Side Management Potential Study. The NTG ratio adjustment is shown as part of Supplement 1: Cost-Effectiveness for each program and measure. However, for some programs, such as Energy Efficient Lighting, Irrigation Efficiency Rewards, and See ya later, refrigerator®, the unit incremental savings are net realized energy savings from third-party sources that take into account an NTG ratio 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 ratio adjustment of 69 percent, the standard custom program NTG ratio from DEER2, which includes a spillover adjustment, is used to calculate the cost-effectiveness of this program. Results Idaho Power determines cost-effectiveness on a measure basis, where relevant, and program basis. As part of 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 (WAQC), Weatherization Solutions for Eligible Customers, See ya later, refrigerator®, and Energy House Calls. These programs have few or no customer costs. For energy efficiency programs, the cost-effectiveness models do not assume ongoing participant costs. 2 Source: CPUC DEER NTFR Update Process for 2006–2007 Programs, found at http://www.deeresources.com/files/deer2008exante/downloads/DEER%200607%20Measure%20Update%20Report.pdf Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 5 For most programs, the Demand-Side Management 2013 Annual Report contains program UC and TRC B/C ratios using actual cost information over the life of the program through 2013. Supplement 1: Cost-Effectiveness contains annual cost-effectiveness metrics for each program using actual information from 2013, includes results of the PCT, and includes the application of an 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 in Table 3. In 2013, most of Idaho Power’s energy efficiency programs were cost effective, except for the Ductless Heat Pump Pilot, ENERGY STAR® Homes Northwest, and the weatherization programs for income-qualified customers. The Ductless Heat Pump Pilot has a UC of 2.51, TRC of 0.71, and PCT of 0.81. In fall 2013, the RTF approved ductless heat pump annual savings estimates for customers not screened for supplemental fuel use. RTF savings declined from the previously provisionally deemed savings of 3,500 annual kilowatt-hour (kWh) to a range between 292 kWh and 3,016 annual kWh. As a result of the lower kWh savings, the program did not pass the TRC and PCT. The RTF will continue to evaluate ductless heat pumps for the possible inclusion of NEBs for reduced wood purchases and decreased wood-burning emissions. Idaho Power will continue to monitor the program in 2014. The ENERGY STAR Homes Northwest program has a UC of 1.61, TRC of 0.95, and PCT of 1.46. In 2013, 7 of 267 homes were single-family homes and 260 were townhomes. Due to the lower kWh savings for townhomes versus single-family homes, the program was shown to be not cost-effective from a TRC perspective for 2013. WAQC had a TRC of 0.74, and Weatherization Solutions for Eligible Customers had a TRC of 0.53 due to the lower estimated savings per home that resulted from the impact evaluation conducted by D&R International. Idaho Power adopted the following IPUC staff’s recommendations from Case No. GNR-E-12-01 for calculating the programs’ cost-effectiveness: • Applied a 100-percent NTG. • Claimed 100 percent of energy savings for each project. • Included indirect administrative overhead costs. The overhead costs of 2.76 percent were calculated from the $741,287 of indirect program expenses divided by the total DSM expenses of $26,841,379 as shown in Appendix 3 of the Demand-Side Management 2013 Annual Report. • Applied the 10-percent conservation preference adder. • Amortized evaluation expenses over a three-year period. • Claimed one dollar of NEBs for each dollar of utility and federal funds invested in health, safety, and repair measures. Supplement 1: Cost-Effectiveness Idaho Power Company Page 6 Demand-Side Management 2013 Annual Report No cost-effectiveness analysis was performed on the A/C Cool Credit and Irrigation Peak Rewards programs for 2013 due to the temporary suspension of the programs. In Case No. IPC-E-12-29, the company filed a settlement stipulation with the IPUC on February 14, 2003. In the stipulation, parties recognized the need for the company to incur program expenses in 2013 to maintain the programs’ infrastructure for the long-term, though it may not be cost effective by traditional standards. The IPUC approved the settlement stipulation in Order No. 32776 on April 2, 2013. The FlexPeak Management program was the only demand response program in operation in 2013. Idaho Power amended its contract with EnerNOC to operate the FlexPeak Management program in 2013 at a reduced cost. Based on these contract amendments, the cost-effectiveness analysis for the program was updated using a 5-year program life versus the previously analyzed 10-year program life. Idaho Power also calculates cost-effectiveness for each demand response program on a year-to-year basis. For 2013, FlexPeak Management had a TRC 1.41. The 5-year program life TRC ratio for FlexPeak Management program was 1.43. Eighteen individual measures in various programs are shown to be not cost-effective from a TRC perspective. The measures will be discontinued, analyzed for additional NEBs, modified to increase potential per unit savings, or monitored to examine their impact on the specific program’s overall cost-effectiveness. Table 1. 2013 non-cost-effective measures Program Number of Measures Notes Ductless Heat Pump Pilot 5 Measures will be monitored in 2014. RTF to analyze for additional NEBs Easy Upgrades 1 Measure will be removed in 2014 due to minimal per-unit savings. Energy Efficient Lighting 2 One measure will be removed from the program in 2014 due to negative per-unit savings. One measure will be reviewed in 2014. ENERGY STAR Homes Northwest 1 Measure will be reviewed in 2014. Heating & Cooling Efficiency Program 3 Measures will be reviewed in 2014. Home Improvement 2 Measures will be reviewed in 2014. Home Products Program 4 Measures will be reviewed in 2014. Total 18 In addition to these 18 measures, 2 residential ENERGY STAR clothes washer and 2 residential refrigerator measures fail the UC but pass the TRC. With the inclusion of NEBs, such as gas, wastewater, and detergent savings, the clothes washers do pass the TRC test; however, the ‘any’ ENERGY STAR clothes washers option still fails the UC test. Idaho Power is now looking at adding clothes washers to the program using a qualified product list for clothes washers meeting a higher modified energy factor (MEF). Two refrigerator measures fail the UC test but pass the TRC test due to the incentives being higher than the incremental costs. Idaho Power will continue to monitor these measures. 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 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 7 not provide incentives for installed end-use measures. Other programs not analyzed at the measure level include Custom Efficiency, the custom option of Irrigation Efficiency Rewards, and WAQC, where projects include multiple interactive measures that are analyzed at the project level. Due to the application of a per-home annual energy savings number for Weatherization Solutions for Eligible Customers determined by the 2012 impact evaluation, measure-level realized energy-saving data are unavailable for 2013. The measure level cost-effectiveness analysis is not included in this report due to the lack of realized data at the measure level. The measure-level cost-effectiveness includes inputs of measure life, energy savings, 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. Energy and expense data have been rounded to the nearest whole unit which may result in minor rounding differences. 2013 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 2013 Annual Report. These expenses are broken out by funding source major-expense type (incentives, labor/administration, materials, other expenses, and purchased services). Table 2. 2013 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 ......................................................................... $ 537,163 $ 29,731 $ 96,964 $ 663,858 Labor/Administrative Expense ............................................ 81,728 4,300 0 86,028 Other Expense.................................................................... 43,925 2,442 0 46,367 Purchased Services ............................................................ 411,426 21,655 0 433,081 Incentives ........................................................................... 83 1,333 96,964 98,381 Ductless Heat Pump Pilot ........................................................ 230,761 6,814 0 237,575 Labor/Administrative Expense ............................................ 56,170 2,956 0 59,126 Other Expense.................................................................... 5,702 298 0 6,000 Purchased Services ............................................................ 10,639 560 0 11,199 Incentives ........................................................................... 158,250 3,000 0 161,250 Energy Efficient Lighting ......................................................... 1,331,113 25,812 0 1,356,926 Labor/Administrative Expense ............................................ 45,809 2,411 0 48,221 Other Expense.................................................................... 18,398 1,108 0 19,506 Purchased Services ............................................................ 383,288 8,240 0 391,528 Incentives ........................................................................... 883,618 14,053 0 897,671 Energy House Calls .................................................................. 164,173 35,822 0 199,995 Labor/Administrative Expense ............................................ 30,329 1,582 0 31,911 Materials and Equipment .................................................... 143 4 0 148 Other Expense.................................................................... 8,983 473 0 9,456 Purchased Services ............................................................ 124,718 33,762 0 158,480 ENERGY STAR® Homes Northwest ......................................... 344,217 4,664 4,000 352,882 Labor/Administrative Expense ............................................ 30,798 1,619 0 32,418 Other Expense.................................................................... 50,234 3,035 0 53,269 Purchased Services ............................................................ 185 10 0 195 Incentives ........................................................................... 263,000 0 4,000 267,000 Supplement 1: Cost-Effectiveness Idaho Power Company Page 8 Demand-Side Management 2013 Annual Report Table 2. 2013 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Heating & Cooling Efficiency Program ................................... $ 317,973 $ 11,700 $ 0 $ 329,674 Labor/Administrative Expense ............................................ 60,834 3,201 0 64,035 Other Expense.................................................................... 86,409 4,706 0 91,114 Purchased Services ............................................................ 64,931 2,194 0 67,125 Incentives ........................................................................... 105,800 1,600 0 107,400 Home Energy Audit Program ................................................... 88,491 248 0 88,740 Labor/Administrative Expense ............................................ 26,506 248 0 26,754 Materials and Equipment .................................................... (235) 0 0 (235) Other Expense.................................................................... 2,221 0 0 2,221 Purchased Services ............................................................ 60,000 0 0 60,000 Home Improvement Program ................................................... 299,032 0 465 299,497 Labor/Administrative Expense ............................................ 84,912 0 0 84,912 Other Expense.................................................................... 74,206 0 0 74,206 Purchased Services ............................................................ 225 0 0 225 Incentives ........................................................................... 139,690 0 465 140,155 Home Products Program.......................................................... 391,348 14,117 50 405,515 Labor/Administrative Expense ............................................ 48,188 2,532 0 50,720 Materials and Equipment .................................................... 20 1 0 21 Other Expense.................................................................... 18,054 950 50 19,055 Purchased Services ............................................................ 37,427 1,664 0 39,091 Incentives ........................................................................... 287,658 8,970 0 296,628 Oregon Residential Weatherization ......................................... 0 8,248 768 9,017 Labor/Administrative Expense ............................................ 0 6,002 768 6,770 Materials and Equipment .................................................... 0 349 0 349 Other Expense.................................................................... 0 465 0 465 Incentives ........................................................................... 0 1,433 0 1,433 Rebate Advantage .................................................................... 58,674 2,097 0 60,770 Labor/Administrative Expense ............................................ 9,236 484 0 9,720 Materials and Equipment .................................................... 16 1 0 17 Other Expense.................................................................... 11,622 612 0 12,234 Purchased Services ............................................................ 6,300 500 0 6,800 Incentives ........................................................................... 31,500 500 0 32,000 See ya later, refrigerator® ......................................................... 571,304 17,750 0 589,054 Labor/Administrative Expense ............................................ 44,651 2,334 0 46,985 Materials and Equipment .................................................... 58 3 0 61 Other Expense.................................................................... 49,258 2,321 0 51,580 Purchased Services ............................................................ 381,306 10,213 0 391,519 Incentives ........................................................................... 96,030 2,880 0 98,910 Weatherization Assistance for Qualified Customers ............. 0 0 1,391,677 1,391,677 Labor/Administrative Expense ............................................ 0 0 48,919 48,919 Materials and Equipment .................................................... 0 0 277 277 Other Expense.................................................................... 0 0 74,658 74,658 Purchased Services ............................................................ 0 0 1,267,824 1,267,824 Weatherization Solutions for Eligible Customers................... 1,239,132 0 28,659 1,267,791 Labor/Administrative Expense ............................................ 6,939 0 28,659 35,598 Other Expenses .................................................................. 85,742 0 0 85,742 Purchased Services ............................................................ 1,146,452 0 0 1,146,452 Residential Total ....................................................................... $ 5,573,384 $ 157,004 $ 1,522,584 $ 7,252,972 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 9 Table 2. 2013 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Commercial/Industrial Building Efficiency ................................................................... $ 1,489,195 $ 17,839 $ 0 $ 1,507,035 Labor/Administrative Expense ............................................ 130,388 6,871 0 137,259 Other Expense.................................................................... 41,952 2,208 0 44,159 Purchased Services ............................................................ 166,444 8,760 0 175,204 Incentives ........................................................................... 1,150,412 0 0 1,150,412 Custom Efficiency .................................................................... 2,402,903 60,245 3,077 2,466,225 Labor/Administrative Expense ............................................ 429,340 22,598 3,190 455,128 Other Expense.................................................................... 246,048 9,268 0 255,316 Purchased Services ............................................................ 381,988 19,745 (113) 401,620 Incentives ........................................................................... 1,345,528 8,633 0 1,354,161 Easy Upgrades ......................................................................... 3,258,427 101,363 0 3,359,790 Labor/Administrative Expense ............................................ 237,898 12,521 0 250,419 Materials and Equipment .................................................... 250 13 0 263 Other Expense.................................................................... 145,303 7,637 0 152,941 Purchased Services ............................................................ 552,569 29,083 0 581,652 Incentives ........................................................................... 2,322,406 52,109 0 2,374,516 FlexPeak Management ............................................................. 108,842 137,184 2,497,589 2,743,615 Labor/Administrative Expense ............................................ 104,553 5,508 0 110,062 Other Expense.................................................................... 4,289 224 0 4,512 Purchased Services ............................................................ 0 0 0 0 Incentives ........................................................................... 0 131,452 2,497,589 2,629,041 Oregon Commercial Audit ....................................................... 0 5,090 0 5,090 Labor/Administrative Expense ............................................ 0 4,666 0 4,666 Other Expense.................................................................... 0 424 0 424 Commercial/Industrial Total ..................................................... $ 7,259,367 $ 321,722 $ 2,500,666 $ 10,081,756 Irrigation Irrigation Efficiency .................................................................. 2,277,059 134,789 29,539 2,441,386 Labor/Administrative Expense ............................................ 316,392 16,641 29,539 362,572 Materials and Equipment .................................................... 222 12 0 233 Other Expense.................................................................... 85,956 4,600 0 90,556 Purchased Services ............................................................ 11,074 311 0 11,385 Incentives ........................................................................... 1,863,415 113,225 0 1,976,640 Irrigation Peak Rewards ........................................................... 407,496 30,117 1,634,494 2,072,107 Labor/Administrative Expense ............................................ 29,631 1,558 25,892 57,081 Other Expense.................................................................... 3,637 191 0 3,829 Purchased Services ............................................................ 374,228 19,696 0 393,924 Incentives ........................................................................... 0 8,670 1,608,602 1,617,272 Irrigation Total $ 2,684,555 $ 164,905 $ 1,664,033 $ 4,513,493 Energy Efficiency/Demand Response Total $ 15,517,306 $ 643,631 $ 5,687,283 $ 21,848,220 Market Transformation NEEA ......................................................................................... 3,147,405 165,653 0 3,313,058 Purchased Services ............................................................ 3,147,405 165,653 0 3,313,058 Market Transformation Total ................................................... $ 3,147,405 $ 165,653 $ 0 $ 3,313,058 Supplement 1: Cost-Effectiveness Idaho Power Company Page 10 Demand-Side Management 2013 Annual Report Table 2. 2013 DSM detailed expenses by program (continued) Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program Other Programs and Activities Residential Residential Education Initiative ............................................... $ 395,668 $ 20,498 $ 0 $ 416,166 Labor/Administrative Expense ............................................ 141,873 7,314 0 149,187 Materials and Equipment .................................................... 8,420 443 0 8,863 Other Expense.................................................................... 245,040 12,724 0 257,764 Purchased Services ............................................................ 334 18 0 352 Residential Economizer ........................................................... 74,901 0 0 74,901 Labor/Administrative Expense ............................................ 5,442 0 0 5,442 Other Expense.................................................................... 3 0 0 3 Purchased Services ............................................................ 69,456 0 0 69,456 Residential Total ....................................................................... $ 470,568 $ 20,498 $ 0 $ 491,067 Commercial/Industrial Commercial Education Initiative .............................................. 63,451 3,339 0 66,790 Labor/Administrative Expense ............................................ 4,707 247 0 4,954 Other Expense.................................................................... 30,876 1,625 0 32,501 Purchased Services ............................................................ 27,868 1,467 0 29,335 Commercial/Industrial Total ..................................................... $ 63,451 $ 3,339 $ 0 $ 66,790 Other Energy Efficiency Direct Program Overhead .......................... 361,910 19,047 0 380,957 Labor/Administrative Expense ............................................ 214,944 11,312 0 226,256 Materials and Equipment .................................................... 168 9 0 176 Other Expense.................................................................... 146,798 7,726 0 154,525 Other Total ................................................................................ $ 361,910 $ 19,047 $ 0 $ 380,957 Other Programs and Activities Total $ 895,929 $ 42,884 $ 0 $ 938,814 Indirect Program Expense Residential Overhead ............................................................... 124,825 7,056 49 131,931 Labor/Administrative Expense ............................................ 91,360 4,807 0 96,167 Materials and Equipment .................................................... 193 7 49 249 Other Expense.................................................................... 16,863 872 0 17,736 Purchased Services ............................................................ 16,409 1,369 0 17,778 Commercial/Industrial Overhead ............................................. 136,811 7,708 0 144,518 Labor/Administrative Expense ............................................ 99,831 5,257 0 105,088 Materials and Equipment .................................................... 36 0 0 36 Other Expense.................................................................... 18,394 968 0 19,362 Purchased Services ............................................................ 18,550 1,482 0 20,032 Energy Efficiency Accounting and Analysis........................... 802,258 42,316 137,854 982,428 Labor/Administrative Expense ............................................ 430,935 22,686 133,328 586,949 Other Expense.................................................................... 57,210 3,011 4,526 64,747 Purchased Services ............................................................ 314,113 16,619 0 330,732 Energy Efficiency Advisory Group .......................................... 5,390 285 0 5,674 Labor/Administrative Expense ............................................ 4,726 250 0 4,976 Other Expense.................................................................... 664 35 0 698 Special Accounting Entries ..................................................... 13,838,199 6,007 (14,367,471) (523,265) Indirect Program Expenses Total ............................................ $ 14,907,483 $ 63,371 $ (14,229,567) $ 741,287 Totals $ 34,468,123 $ 915,540 $ (8,542,284) $ 26,841,379 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 11 Table 3. Cost-effectiveness summary by program 2013 Benefit/Cost Tests Program Utility Cost (UC) Total Resource Cost (TRC) Ratepayer Impact Measure (RIM) Participant Cost (PCT) A/C Cool Credit .......................................................... N/A N/A N/A N/A FlexPeak Management ............................................... 1.43 1.43 1.43 N/A Irrigation Peak Rewards ............................................. N/A N/A N/A N/A Ductless Heat Pump Pilot ........................................... 2.51 0.71 0.85 0.81 Energy Efficient Lighting ............................................. 4.79 2.61 0.89 2.96 Energy House Calls .................................................... 3.95 3.95 0.83 N/A ENERGY STAR® Homes Northwest ........................... 1.61 0.95 0.71 1.46 Heating & Cooling Efficiency Program ........................ 3.87 1.93 0.98 2.54 Home Improvement Program ...................................... 3.58 1.18 0.88 1.43 Home Products Program ............................................ 1.69 2.24 0.69 3.42 Rebate Advantage ...................................................... 5.39 3.80 0.91 6.38 See ya later, refrigerator® ........................................... 1.23 1.23 0.58 N/A Weatherization Assistance for Qualified Customers .... 0.95 0.74 0.56 N/A Weatherization Solutions for Eligible Customers ......... 0.46 0.53 0.35 N/A Building Efficiency ...................................................... 5.48 3.26 1.31 2.94 Custom Efficiency ....................................................... 5.61 2.56 1.81 1.58 Easy Upgrades ........................................................... 4.71 2.61 1.26 2.42 Irrigation Efficiency ..................................................... 6.35 1.72 1.63 1.17 Supplement 1: Cost-Effectiveness Idaho Power Company Page 12 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 13 COST-EFFECTIVENESS TABLES BY PROGRAM FlexPeak Management Segment: Commercial/Industrial 5-Year Program Cost-Effectiveness Summary Program Inception:2009 Cost Inputs (net-present value [NPV]) Ref Summary of Cost-Effectiveness Results Total Program Administration .............................................................................. $ 408,039 Test Benefit Cost Ratio Total Program Incentives ..................................................................................... 9,834,490 Utility Cost Test ............................. $ 14,652,073 $ 10,254,941 1.43 Total Utility Cost ................................................................................................ $ 10,242,529 P Total Resource Cost Test .............. 14,652,073 10,254,941 1.43 Ratepayer Impact Measure Test ... 14,652,073 10,242,529 1.43 Total Shifted Energy Utility Cost .......................................................................... 12,412 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) ......................................................... 4,487,257 $ 296,833 Total Resource Cost Test ................................ = S + NUI + NEB = P + M + SE 2013 Reduction Capacity (MW) ................................................ 40 14,355,239 Ratepayer Impact Measure Test ..................... = S = P + B Total Electric Savings ................................................................ $ 14,652,073 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-Energy Benefits ................................................................. $ — NEB Effective Load Carrying Capacity (ELCC) ................................................... 93.40% Summer Peak Line Loss (for Demand Response ....................................... 13.00% Line Losses ................................................................................................ 10.90% Notes: Based on a contract amendment with EnerNOC signed in 2013, cost-effectiveness analysis for the program updated using a 5-year program life versus the previously analyzed 10-year program life. As part of the public workshops for Case No. IPC-E-13-14 and approved in Order No. 32923, the new methodology for valuing demand response will be applied to demand response cost-effectiveness models in 2014. 2013 Reduction capacity based on contracted target of 35 MW (40 megawatt [MW] with Summer Peak Line Loss of 13%). Supplement 1: Cost-Effectiveness Idaho Power Company Page 14 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 15 Ductless Heat Pump Pilot Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 76,325 Test Benefit Cost Ratio Program Incentives .............................................................................................. 161,250 I Utility Cost Test ............................. $ 595,951 $ 237,575 2.51 Total Utility Cost ................................................................................................ $ 237,575 P Total Resource Cost Test .............. 595,951 841,467 0.71 Ratepayer Impact Measure Test ... 595,951 702,627 0.85 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 916,115 M Participant Cost Test ..................... 742,565 916,115 0.81 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 589,142 $ Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 6,576,617 744,939 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 744,939 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 581,315 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: This program is not cost-effective due to lower per-unit deemed savings from the Regional Technical Forum (RTF). Program will be monitored in 2014 for the potential inclusion of non-energy benefits. Supplement 1: Cost-Effectiveness Idaho Power Company Page 16 Demand-Side Management 2013 Annual Report Year:2013 Program: Ductless Heat Pump Pilot Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Ductless Heat Pump No supplemental fuel screen. Heating zone 2, cooling zone 1. Zonal Electric Unit ENRes_SF_HeatPump 15 80% 2,585.00 $3,061.75 $– $4,261.00 $750.00 $0.130 2.26 0.63 1,2 Ductless Heat Pump No supplemental fuel screen. Heating zone 3, cooling zone 1. Zonal Electric Unit ENRes_SF_HeatPump 15 80% 292.00 $345.85 $– $4,261.00 $750.00 $0.130 0.35 0.08 1,2 Ductless Heat Pump No supplemental fuel screen. Heating zone 2, cooling zone 2. Zonal Electric Unit ENRes_SF_HeatPump 15 80% 2,746.00 $3,252.45 $– $4,261.00 $750.00 $0.130 2.35 0.66 1,2 Ductless Heat Pump No supplemental fuel screen. Heating zone 1, cooling zone 3. Zonal Electric Unit ENRes_SF_HeatPump 15 80% 3,131.00 $3,708.45 $– $4,261.00 $750.00 $0.130 2.56 0.75 1,2 Ductless Heat Pump No supplemental fuel screen. Heating zone 2, cooling zone 3. Zonal Electric Unit ENRes_SF_HeatPump 15 80% 3,016.00 $3,572.24 $– $4,261.00 $750.00 $0.130 2.50 0.72 1,2 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. Based on 2013 average customer costs. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 Regional Technical Forum (RTF). ResHeatingCoolingDuctlessHeatPumpsSF_v1_5.xls. 2014. 2 Measure combination not cost-effective. Will be monitored in 2014. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 17 Energy Efficient Lighting Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 459,255 Test Benefit Cost Ratio Program Incentives .............................................................................................. 897,671 I Utility Cost Test ............................. $ 6,499,196 $ 1,356,926 4.79 Total Utility Cost ................................................................................................ $ 1,356,926 P Total Resource Cost Test .............. 12,745,173 4,889,501 2.61 Ratepayer Impact Measure Test ... 6,499,196 7,308,895 0.89 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 4,430,246 M Participant Cost Test ..................... 13,095,617 4,430,246 2.96 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 9,995,753 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 72,951,593 $ 6,499,196 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 6,499,196 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 5,951,969 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ 6,245,977 NEB Net-to-Gross (NTG) .................................................................................... 100.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: No NTG. Deemed savings from the RTF already accounts for net realized energy savings. NEBs include PV of periodic bulb (capital) replacement costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 18 Demand-Side Management 2013 Annual Report Year:2013 Program: Energy Efficient Lighting Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB)e Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Dimmable Reflector CFL Retail. 1,015–1,439 lumens. Dimmable Reflector—All Baseline bulb lamp ENRes_SF_Lighting 7 100% 18.00 $9.65 $9.03 $8.62 $2.00 $0.046 3.41 1.98 1 General Purpose CFL Retail. 1,015–1,439 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 8 100% 13.00 $7.93 $3.08 $3.62 $2.00 $0.046 3.05 2.61 1 Reflector CFL Retail. 1,015–1,439 lumens. Reflector—All Baseline bulb lamp ENRes_SF_Lighting 7 100% 18.00 $9.65 $9.03 $8.62 $2.00 $0.046 3.41 1.98 1 3-Way CFL Retail. 1,440–2,019 lumens. 3-Way—All Baseline bulb lamp ENRes_SF_Lighting 11 100% 29.00 $23.90 $10.84 $11.41 $2.00 $0.046 7.17 2.73 1 General Purpose CFL Retail. 1,440–2,019 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 8.00 $5.46 $2.54 $3.62 $2.00 $0.046 2.31 2.00 1 3-Way CFL Retail. 2,020–2,600 lumens. 3-Way—All Baseline bulb lamp ENRes_SF_Lighting 11 100% 22.00 $18.13 $5.29 $11.16 $2.00 $0.046 6.02 1.92 1 General Purpose CFL Retail. 2,020–2,600 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 12.00 $8.19 $6.74 $12.09 $2.00 $0.046 3.21 1.18 1 CC Candelabra decorative CFL Retail. 250–369 lumens. CC Candelabra: decorative—All Baseline bulb lamp ENRes_SF_Lighting 20 100% 1.00 $1.38 $3.65 $5.22 $2.00 $0.046 0.67 0.95 1, 2 Globe CFL Retail. 250–369 lumens. Globe-All Baseline bulb lamp ENRes_SF_Lighting 7 100% (1.00) $(0.54) $3.39 $4.30 $2.00 $0.046 -0.27 0.67 1, 3 Reflector CFL Retail. 250–369 lumens. Reflector—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 4.00 $2.73 $17.60 $5.96 $2.00 $0.046 1.25 3.31 1 CC Candelabra decorative CFL Retail. 370–664 lumens. CC Candelabra: decorative—All Baseline bulb lamp ENRes_SF_Lighting 20 100% 10.00 $13.78 $4.74 $4.80 $2.00 $0.046 5.60 3.52 1 General Purpose CFL Retail. 370 to 664 lumens. General Purpose-All Baseline bulb lamp ENRes_SF_Lighting 9 100% 7.00 $4.78 $3.68 $3.13 $2.00 $0.046 2.06 2.45 1 Globe CFL Retail. 370–664 lumens. Globe—All Baseline bulb lamp ENRes_SF_Lighting 7 100% 6.00 $3.22 $6.33 $5.88 $2.00 $0.046 1.41 1.55 1 Reflector CFL Retail. 370–664 lumens. Reflector—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 9.00 $6.15 $18.71 $6.70 $2.00 $0.046 2.55 3.50 1 CC Candelabra decorative CFL Retail. 665–1,014 lumens. CC Candelabra: decorative—All Baseline bulb lamp ENRes_SF_Lighting 20 100% 16.00 $22.05 $4.96 $5.83 $2.00 $0.046 8.06 4.11 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 19 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB)e Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Dimmable Reflector CFL Retail. 665–1,014 lumens. Dimmable Reflector—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 15.00 $10.24 $18.64 $6.78 $2.00 $0.046 3.81 3.87 1 General Purpose CFL Retail. 665–1,014 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 8.00 $5.46 $2.82 $2.96 $2.00 $0.046 2.31 2.49 1 Globe CFL Retail. 665–1,014 lumens. Globe—All Baseline bulb lamp ENRes_SF_Lighting 7 100% 8.00 $4.29 $11.24 $5.83 $2.00 $0.046 1.81 2.50 1 Reflector CFL Retail. 665–1,014 lumens. Reflector—All Baseline bulb lamp ENRes_SF_Lighting 9 100% 15.00 $10.24 $18.64 $6.78 $2.00 $0.046 3.81 3.87 1 General Purpose CFL Give-Away. 1,440–2,019 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 8 100% 8.00 $4.88 $2.49 $-– $-– $0.046 13.26 20.03 1 General Purpose CFL Give-Away. 1,015–1,439 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 7 100% 13.00 $6.97 $5.74 $-– $-– $0.046 11.65 21.25 1 General Purpose CFL Give-Away. 665–1,014 lumens. General Purpose—All Baseline bulb lamp ENRes_SF_Lighting 8 100% 8.00 $4.88 $2.31 $-– $-– $0.046 13.26 19.54 1 a Average measure life. b No Net-to-Gross (NTG) percentage. Deemed savings from RTF includes realization rate. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Present value of periodic replacement costs. f Incremental participant cost prior to customer incentives. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResCFLLighting_v3_0.xlsm. Retail. Any Interior. 2013. 2 Measure not cost-effective. Will be reviewed in 2014. 3 Measure has negative savings. Will be removed from the program in 2014. Supplement 1: Cost-Effectiveness Idaho Power Company Page 20 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 21 Energy House Calls Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 199,995 Test Benefit Cost Ratio Program Incentives .............................................................................................. — I Utility Cost Test ............................. $ 790,769 $ 199,995 3.95 Total Utility Cost ................................................................................................ $ 199,995 P Total Resource Cost Test .............. 790,769 199,995 3.95 Ratepayer Impact Measure Test ... 790,769 953,532 0.83 Measure Equipment and Installation (Incremental Participant Cost) .................... $ — M Participant Cost Test ..................... N/A N/A N/A Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 837,261 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 10,305,000 $ 988,461 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 988,461 S Participant Cost Test .......................... N/A N/A Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 941,921 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: No participant costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 22 Demand-Side Management 2013 Annual Report Year:2013 Program: Energy House Calls Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: PTCS Duct Sealing: Heating Zone 1 (Electric FAF Heating System w/CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 1,496.00 $1,627.40 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 1 (Electric FAF Heating System w/o CAC) Pre- existing duct leakage Home ENRes_MH_Heater 18 80% 1,433.00 $1,558.87 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 1 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 887.00 $964.91 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric FAF Heating System w/CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,361.00 $2,568.38 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric FAF Heating System w/o CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,290.00 $2,491.15 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 1,664.00 $1,810.16 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric FAF Heating System w/CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 3,074.00 $3,344.01 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric FAF Heating System w/o CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 3,023.00 $3,288.53 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Single Wide (<= 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,324.00 $2,528.13 $— $— $— $0.239 3.64 3.64 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 23 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 1 (Electric FAF Heating System w/CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 1,881.00 $2,046.22 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness : Heating Zone 1 (Electric FAF Heating System w/o CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 1,799.00 $1,957.02 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 1 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 1,093.00 $1,189.01 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric FAF Heating System w/CAC) Pre- existing duct leakage Home ENRes_MH_Heater 18 80% 2,898.00 $3,152.55 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric FAF Heating System w/o CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,791.00 $3,036.15 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 2 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,022.00 $2,199.61 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric FAF Heating System w/CAC) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 3,710.00 $4,035.87 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric FAF Heating System w/o CAC) Pre- existing duct leakage Home ENRes_MH_Heater 18 80% 3,645.00 $3,965.17 $— $— $— $0.239 3.64 3.64 1 PTCS Duct Sealing Other (> 1,000 ft2) Manufactured Home Duct Tightness: Heating Zone 3 (Electric Heat Pump Heating System) Pre-existing duct leakage Home ENRes_MH_Heater 18 80% 2,813.00 $3,060.09 $— $— $— $0.239 3.64 3.64 1 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). Supplement 1: Cost-Effectiveness Idaho Power Company Page 24 Demand-Side Management 2013 Annual Report e No participant cost. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResHeatingCoolingDuctSealingMH_v2_4.xlsm. 2012. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 25 ENERY STAR® Homes Northwest Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 85,882 Test Benefit Cost Ratio Program Incentives .............................................................................................. 267,000 I Utility Cost Test ............................. $ 569,607 $ 352,882 1.61 Total Utility Cost ................................................................................................ $ 352,882 P Total Resource Cost Test .............. 569,607 598,258 0.95 Ratepayer Impact Measure Test ... 569,607 797,990 0.71 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 607,800 M Participant Cost Test ..................... 885,205 607,800 1.46 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 365,370 $ Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 5,839,337 $ 791,120 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 791,120 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 618,205 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 72.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: 2009 International Energy Conservation Code (IECC) adopted in Idaho in 2011. Supplement 1: Cost-Effectiveness Idaho Power Company Page 26 Demand-Side Management 2013 Annual Report Year:2013 Program: ENERGY STAR Homes Northwest Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source ENERGY STAR home Home in Idaho or Montana with Heat Pump: Heating Zone 1 Cooling Zone 3 Single-family home built to International Energy Conservation Code (IECC) 2009 Code. Adopted 2011. Home IPC_Residential 37 72% 3,778.00 $8,702.87 $— $3,915.69 $1,000.00 $0.246 3.25 1.56 1 ENERGY STAR home 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 IPC_Residential 37 72% 4,844.00 $11,158.48 $— $5,624.69 $1,000.00 $0.246 3.67 1.46 2 ENERGY STAR home Multifamily—Heat Pump: Heating Zone 1 Cooling Zone 3 Multi-family home built to IECC 2009 Code. Adopted 2011. Home IPC_Residential 36 72% 1,294.00 $2,943.67 $— $2,294.95 $1,000.00 $0.246 1.61 0.94 3, 4 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResNewSFEStarWAIDMT_v2_2.xls. 2012. 2 RTF. EStarNWSFHomes_DHPtco_WAIDMT_v1_0.xls. 2011. 3 RTF. ResMFEstarHomes2012_v1_1.xlsm. 2012. 4 Measure combination not cost-effective. Will monitor in 2014. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 27 Heating & Cooling Efficiency Program Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 222,274 Test Benefit Cost Ratio Program Incentives .............................................................................................. 107,400 I Utility Cost Test ............................. $ 1,275,518 $ 329,674 3.87 Total Utility Cost ................................................................................................ $ 329,674 P Total Resource Cost Test .............. 1,275,518 659,203 1.93 Ratepayer Impact Measure Test ... 1,275,518 1,300,322 0.98 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 519,312 M Participant Cost Test ..................... 1,320,710 519,312 2.54 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 1,003,730 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 13,039,162 $ 1,594,397 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 1,594,397 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 1,213,310 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 28 Demand-Side Management 2013 Annual Report Year:2013 Program: Heating & Cooling Efficiency Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Air Conditioning (A/C) & Heat Pump Units Evaporative cooler single family Central A/C Unit ENRes_SF_CAC 12 80% 416.00 $605.56 $— $— $150.00 $0.221 2.00 2.00 1 A/C & Heat Pump Units Evaporative cooler manufactured home Central A/C Unit ENRes_MH_CAC 12 80% 309.00 $483.50 $— $— $150.00 $0.221 1.77 1.77 1 A/C & Heat Pump Units Evaporative cooler multi-family Central A/C Unit ENRes_MH_CAC 12 80% 296.00 $425.92 $— $— $150.00 $0.221 1.58 1.58 1 A/C & Heat Pump Units Open-loop water source heat pump for existing and new construction: 14.00 EER 3.5 COP Electric resistance/Oil Propane Unit ENRes_SF_HeatPump 20 80% 8,927.00 $13,276.62 $— $11,425.00 $1,000.00 $0.221 3.57 0.94 2, 3 A/C & Heat Pump Units Open-loop water source heat pump: 14.00 EER 3.5 COP Air-source heat pump Unit ENRes_SF_HeatPump 20 80% 2,648.00 $3,938.22 $— $4,435.00 $500.00 $0.221 2.90 0.74 2, 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 with central A/C Unit ENRes_SF_HeatPump 20 80% 5,306.00 $7,891.31 $— $4,165.00 $800.00 $0.221 3.20 1.35 3, 6 A/C & Heat Pump Units Single-family home HVAC Conversions: Convert to Heat Pump 8.50 HSPF Heating Zone 2 Forced air furnace with central A/C Unit ENRes_SF_HeatPump 20 80% 6,961.00 $10,352.70 $— $4,165.00 $800.00 $0.221 3.54 1.65 3, 6 A/C & Heat Pump Units Single-family home HVAC Conversions: Convert to Heat Pump 8.50 HSPF Heating Zone 3 Forced air furnace with central A/C Unit ENRes_SF_HeatPump 20 80% 7,876.00 $11,713.52 $— $4,165.00 $800.00 $0.221 3.69 1.79 3, 6 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 ENRes_SF_HeatPump 20 80% 4,380.00 $6,514.12 $— $6,398.00 $800.00 $0.221 2.95 0.83 3, 4, 6 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 ENRes_SF_HeatPump 20 80% 6,719.00 $9,992.78 $— $6,398.00 $800.00 $0.221 3.50 1.18 3, 6 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 29 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh 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 ENRes_SF_HeatPump 20 80% 6,451.00 $9,594.20 $— $6,398.00 $800.00 $0.221 3.45 1.14 3, 6 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 ENRes_SF_HeatPump 20 80% 6,035.00 $8,975.51 $— $6,398.00 $800.00 $0.221 3.37 1.09 3, 6 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 ENRes_SF_HeatPump 20 80% 7,634.00 $11,353.61 $— $6,398.00 $800.00 $0.221 3.65 1.30 3, 6 A/C & Heat Pump Units Existing single-family home Heat Pump: upgraded to 8.50 HSPF All Climates Heat pump Unit ENRes_SF_HeatPump 20 80% 2,597.00 $3,862.37 $— $1,850.00 $250.00 $0.221 3.75 1.47 1, 5 A/C & Heat Pump Units Existing single-family home Heat Pump: upgraded to 9.0 HSPF/14 SEER Heating Zone 1 Heat pump Unit ENRes_SF_HeatPump 15 80% 128.00 $151.61 $— $58.67 $— $0.221 4.29 1.61 7, 8 A/C & Heat Pump Units Existing single-family home Heat Pump: upgraded to 9.0 HSPF/14 SEER Heating Zone 2 Heat pump Unit ENRes_SF_HeatPump 15 80% 116.00 $137.39 $— $58.67 $— $0.221 4.29 1.51 7, 8 A/C & Heat Pump Units Existing single-family home Heat Pump: upgraded to 9.0 HSPF/14 SEER Heating Zone 3 Heat pump Unit ENRes_SF_HeatPump 15 80% 115.00 $136.21 $— $58.67 $— $0.221 4.29 1.51 7, 8 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. Based on 2012–2013 median customer costs. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 Idaho Power Energy Efficiency Potential Study by EnerNOC Utility Solutions Consulting. IPC Residential LoadMAP. 2 Savings from Ecotope, Inc., heat pump sizing specifications and heat pump measure savings estimates. December 2009. 3 Costs based on average 2013 local contractor costs. 4 Measure not cost-effective due to high incremental costs. Will monitor in 2014. Supplement 1: Cost-Effectiveness Idaho Power Company Page 30 Demand-Side Management 2013 Annual Report 5 Costs based on incremental difference between technology and RTF survey data. 6 Savings from RTF. Res_SFHPConversion_V2_6.xlsm.2012. 7 RTF. ResHeatingCoolingHeatPumpUpgradeSF_v2_8.xlsm. 2012. 8 Customers receive incentive for going to an efficiency of at least an 8.5 HSPF heat pump. Incremental savings claimed for projects with an efficiency greater than a 9.0 HSPF. No additional incentive paid. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 31 Home Improvement Program Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 159,343 Test Benefit Cost Ratio Program Incentives .............................................................................................. 140,155 I Utility Cost Test ............................. $ 1,073,443 $ 299,497 3.58 Total Utility Cost ................................................................................................ $ 299,497 P Total Resource Cost Test .............. 1,073,443 908,578 1.18 Ratepayer Impact Measure Test ... 1,073,443 1,215,734 0.88 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 901,506 M Participant Cost Test ..................... 1,285,452 901,506 1.43 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 616,044 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 10,268,456 $ 1,341,804 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 1,341,804 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 1,145,298 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 32 Demand-Side Management 2013 Annual Report Year:2013 Program: Home Improvement Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R0 to R38. Average electric heating system w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 2.06 $4.06 $- $0.55 $0.15 $0.259 4.75 3.24 1 Single Family: Attic Insulation R0 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 2.87 $5.66 $- $0.55 $0.15 $0.259 5.07 3.73 1 Single Family: Attic Insulation R0 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 2.87 $5.66 $- $0.55 $0.15 $0.259 5.07 3.73 1 Single Family: Attic Insulation R0 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 2.87 $5.66 $- $0.55 $0.15 $0.259 5.07 3.73 1 Single Family: Attic Insulation R0 to R38. Average electric heating system w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 3.49 $6.87 $- $0.55 $0.15 $0.259 5.22 4.01 1 Single Family: Attic Insulation R0 to R38. Average Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.28 $5.32 $- $0.55 $0.15 $0.259 5.76 4.02 1 Single Family: Attic Insulation R0 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.97 $6.94 $- $0.55 $0.15 $0.259 6.04 4.48 1 Single Family: Attic Insulation R0 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 3.01 $7.05 $- $0.55 $0.15 $0.259 6.06 4.51 1 Single Family: Attic Insulation R0 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 3.09 $7.22 $- $0.55 $0.15 $0.259 6.08 4.55 1 Single Family: Attic Insulation R0 to R38. Average Heating System w/ CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 3.58 $8.38 $- $0.55 $0.15 $0.259 6.22 4.79 1 Single Family: Attic Insulation R0 to R38. Electric FAF Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.65 $6.20 $- $0.55 $0.15 $0.259 5.93 4.29 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 33 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R0 to R38. Electric FAF Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 3.29 $6.49 $- $0.55 $0.15 $0.259 5.18 3.93 1 Single Family: Attic Insulation R0 to R38. Heat pump. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 1.44 $3.37 $- $0.55 $0.15 $0.259 5.15 3.20 1 Single Family: Attic Insulation R0 to R38. Heat pump. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.18 $5.10 $- $0.55 $0.15 $0.259 5.71 3.94 1 Single Family: Attic Insulation R0 to R38. Heat pump. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.23 $5.20 $- $0.55 $0.15 $0.259 5.73 3.98 1 Single Family: Attic Insulation R0 to R38. Heat pump. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.30 $5.38 $- $0.55 $0.15 $0.259 5.77 4.04 1 Single Family: Attic Insulation R0 to R38. Heat pump. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R38 ft2 ENRes_SF_HeatPump 45 80% 2.91 $6.79 $- $0.55 $0.15 $0.259 6.02 4.45 1 Single Family: Attic Insulation R0 to R38. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R38 ft2 ENRes_SF_Heater 45 80% 2.17 $4.29 $- $0.55 $0.15 $0.259 4.81 3.32 1 Single Family: Attic Insulation R0 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 3.28 $7.68 $- $0.55 $0.15 $0.259 6.14 4.65 1 Single Family: Attic Insulation R0 to R49. Average electric heating system w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 2.19 $4.32 $- $0.55 $0.15 $0.259 4.82 3.33 1 Single Family: Attic Insulation R0 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.05 $6.02 $- $0.55 $0.15 $0.259 5.12 3.82 1 Single Family: Attic Insulation R0 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.05 $6.02 $- $0.55 $0.15 $0.259 5.12 3.82 1 Single Family: Attic Insulation R0 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.05 $6.02 $- $0.55 $0.15 $0.259 5.12 3.82 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 34 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R0 to R49. Average electric heating system w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.71 $7.31 $- $0.55 $0.15 $0.259 5.27 4.09 1 Single Family: Attic Insulation R0 to R49. Average Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 2.42 $5.66 $- $0.55 $0.15 $0.259 5.83 4.13 1 Single Family: Attic Insulation R0 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 3.15 $7.37 $- $0.55 $0.15 $0.259 6.10 4.58 1 Single Family: Attic Insulation R0 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 3.20 $7.49 $- $0.55 $0.15 $0.259 6.12 4.61 1 Single Family: Attic Insulation R0 to R49. Average Heating System w/ CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 3.81 $8.91 $- $0.55 $0.15 $0.259 6.27 4.89 1 Single Family: Attic Insulation R0 to R49. Electric FAF Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 2.82 $6.59 $- $0.55 $0.15 $0.259 5.99 4.39 1 Single Family: Attic Insulation R0 to R49. Electric FAF Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 2.59 $5.10 $- $0.55 $0.15 $0.259 4.98 3.58 1 Single Family: Attic Insulation R0 to R49. Electric FAF Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.50 $6.91 $- $0.55 $0.15 $0.259 5.23 4.01 1 Single Family: Attic Insulation R0 to R49. Heat pump. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 1.53 $3.58 $- $0.55 $0.15 $0.259 5.24 3.31 1 Single Family: Attic Insulation R0 to R49. Heat pump. Heating Zone 2 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 2.31 $5.40 $- $0.55 $0.15 $0.259 5.77 4.04 1 Single Family: Attic Insulation R0 to R49. Heat pump. Heating Zone 2 Cooling Zone 2 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 2.36 $5.52 $- $0.55 $0.15 $0.259 5.80 4.08 1 Single Family: Attic Insulation R0 to R49. Heat pump. Heating Zone 2 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 2.44 $5.70 $- $0.55 $0.15 $0.259 5.84 4.14 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 35 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R0 to R49. Heat pump. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_HeatPump 45 80% 3.08 $7.20 $— $0.55 $0.15 $0.259 6.08 4.54 1 Single Family: Attic Insulation R0 to R49. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 2.31 $4.56 $— $0.55 $0.15 $0.259 4.87 3.41 1 Single Family: Attic Insulation R0 to R49. Zonal Heating System w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R0 to R49 ft2 ENRes_SF_Heater 45 80% 3.69 $7.27 $— $0.55 $0.15 $0.259 5.26 4.08 1 Single Family: Attic Insulation R19 to R38. Average electric heating system w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.56 $1.10 $— $0.55 $0.15 $0.259 2.98 1.43 1 Single Family: Attic Insulation R19 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.78 $1.53 $— $0.55 $0.15 $0.259 3.49 1.82 1 Single Family: Attic Insulation R19 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.78 $1.53 $— $0.55 $0.15 $0.259 3.49 1.82 1 Single Family: Attic Insulation R19 to R38. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.78 $1.53 $— $0.55 $0.15 $0.259 3.49 1.82 1 Single Family: Attic Insulation R19 to R38. Average electric heating system w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.94 $1.86 $— $0.55 $0.15 $0.259 3.77 2.08 1 Single Family: Attic Insulation R19 to R38. Average Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.61 $1.44 $— $0.55 $0.15 $0.259 3.72 1.83 1 Single Family: Attic Insulation R19 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.80 $1.87 $— $0.55 $0.15 $0.259 4.19 2.21 1 Single Family: Attic Insulation R19 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.81 $1.90 $— $0.55 $0.15 $0.259 4.22 2.23 1 Single Family: Attic Insulation R19 to R38. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.83 $1.95 $— $0.55 $0.15 $0.259 4.26 2.27 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 36 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R19 to R38. Average Heating System w/ CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.97 $2.26 $— $0.55 $0.15 $0.259 4.52 2.51 1 Single Family: Attic Insulation R19 to R38. Electric FAF Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.72 $1.68 $— $0.55 $0.15 $0.259 4.00 2.05 1 Single Family: Attic Insulation R19 to R38. Electric FAF Heating System w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 1.07 $2.11 $— $0.55 $0.15 $0.259 3.95 2.26 1 Single Family: Attic Insulation R19 to R38. Heat pump. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.38 $0.89 $— $0.55 $0.15 $0.259 2.87 1.25 1 Single Family: Attic Insulation R19 to R38. Heat pump. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.57 $1.33 $— $0.55 $0.15 $0.259 3.57 1.72 1 Single Family: Attic Insulation R19 to R38. Heat pump. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.58 $1.36 $— $0.55 $0.15 $0.259 3.61 1.75 1 Single Family: Attic Insulation R19 to R38. Heat pump. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.60 $1.41 $— $0.55 $0.15 $0.259 3.68 1.80 1 Single Family: Attic Insulation R19 to R38. Heat pump. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R38 ft2 ENRes_SF_HeatPump 45 80% 0.76 $1.78 $— $0.55 $0.15 $0.259 4.10 2.13 1 Single Family: Attic Insulation R19 to R38. Zonal Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.65 $1.28 $— $0.55 $0.15 $0.259 3.22 1.60 1 Single Family: Attic Insulation R19 to R38. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.59 $1.16 $— $0.55 $0.15 $0.259 3.07 1.49 1 Single Family: Attic Insulation R19 to R38. Zonal Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R38 ft2 ENRes_SF_Heater 45 80% 0.79 $1.57 $— $0.55 $0.15 $0.259 3.52 1.85 1 Single Family: Attic Insulation R19 to R49. Average electric heating system w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.69 $1.35 $— $0.55 $0.15 $0.259 3.30 1.67 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 37 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R19 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.96 $1.89 $— $0.55 $0.15 $0.259 3.79 2.10 1 Single Family: Attic Insulation R19 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.96 $1.89 $— $0.55 $0.15 $0.259 3.79 2.10 1 Single Family: Attic Insulation R19 to R49. Average electric heating system w/o CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.96 $1.89 $— $0.55 $0.15 $0.259 3.79 2.10 1 Single Family: Attic Insulation R19 to R49. Average electric heating system w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 1.16 $2.29 $— $0.55 $0.15 $0.259 4.07 2.38 1 Single Family: Attic Insulation R19 to R49. Average Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.76 $1.77 $— $0.55 $0.15 $0.259 4.09 2.13 1 Single Family: Attic Insulation R19 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.99 $2.31 $— $0.55 $0.15 $0.259 4.55 2.54 1 Single Family: Attic Insulation R19 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 1.00 $2.34 $— $0.55 $0.15 $0.259 4.58 2.57 1 Single Family: Attic Insulation R19 to R49. Average Heating System w/ CAC. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 1.03 $2.41 $— $0.55 $0.15 $0.259 4.62 2.61 1 Single Family: Attic Insulation R19 to R49. Average Heating System w/ CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 1.19 $2.79 $— $0.55 $0.15 $0.259 4.86 2.86 1 Single Family: Attic Insulation R19 to R49. Electric FAF Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.89 $2.07 $— $0.55 $0.15 $0.259 4.37 2.37 1 Single Family: Attic Insulation R19 to R49. Electric FAF Heating System w/ CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 1.15 $2.70 $— $0.55 $0.15 $0.259 4.81 2.81 1 Single Family: Attic Insulation R19 to R49. Electric FAF Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.81 $1.61 $— $0.55 $0.15 $0.259 3.56 1.89 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 38 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Attic Insulation R19 to R49. Electric FAF Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 1.11 $2.18 $— $0.55 $0.15 $0.259 4.00 2.31 1 Single Family: Attic Insulation R19 to R49. Electric FAF Heating System w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 1.32 $2.60 $— $0.55 $0.15 $0.259 4.23 2.57 1 Single Family: Attic Insulation R19 to R49. Heat pump. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.47 $1.10 $— $0.55 $0.15 $0.259 3.23 1.48 1 Single Family: Attic Insulation R19 to R49. Heat pump. Heating Zone 2 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.70 $1.63 $— $0.55 $0.15 $0.259 3.94 2.00 1 Single Family: Attic Insulation R19 to R49. Heat pump. Heating Zone 2 Cooling Zone 2 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.71 $1.67 $— $0.55 $0.15 $0.259 3.99 2.04 1 Single Family: Attic Insulation R19 to R49. Heat pump. Heating Zone 2 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.74 $1.73 $— $0.55 $0.15 $0.259 4.05 2.09 1 Single Family: Attic Insulation R19 to R49. Heat pump. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.93 $2.18 $— $0.55 $0.15 $0.259 4.46 2.45 1 Single Family: Attic Insulation R19 to R49. Zonal Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_HeatPump 45 80% 0.80 $1.87 $— $0.55 $0.15 $0.259 4.19 2.21 1 Single Family: Attic Insulation R19 to R49. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 0.73 $1.43 $— $0.55 $0.15 $0.259 3.39 1.74 1 Single Family: Attic Insulation R19 to R49. Zonal Heating System w/o CAC. Heating Zone 3 Cooling Zone 1 Attic Insulation R19 to R49 ft2 ENRes_SF_Heater 45 80% 1.16 $2.30 $— $0.55 $0.15 $0.259 4.07 2.38 1 Single Family: Floor Insulation R0 to R30. Electric FAF Heating System w/ CAC. Heating Zone 1 Cooling Zone 3 Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 1.48 $3.47 $— $0.84 $0.50 $0.259 3.14 2.40 1 Single Family: Floor Insulation R0 to R30. Electric FAF Heating System w/ CAC. Heating Zone 3 Cooling Zone 1 Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 2.37 $5.54 $— $0.84 $0.50 $0.259 3.98 3.20 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 39 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Floor Insulation R0 to R30. Electric FAF Heating System w/o CAC. Heating Zone 1 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 1.53 $3.02 $— $0.84 $0.50 $0.259 2.69 2.07 1 Single Family: Floor Insulation R0 to R30. Electric FAF Heating System w/o CAC. Heating Zone 2 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 2.00 $3.94 $— $0.84 $0.50 $0.259 3.10 2.45 1 Single Family: Floor Insulation R0 to R30. Electric FAF Heating System w/o CAC. Heating Zone 3 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 2.42 $4.77 $— $0.84 $0.50 $0.259 3.39 2.73 1 Single Family: Floor Insulation R0 to R30. Heat Pump. Heating Zone 1 Cooling Zone 3. Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 0.61 $1.42 $— $0.84 $0.50 $0.259 1.72 1.22 1 Single Family: Floor Insulation R0 to R30. Heat Pump. Heating Zone 2 Cooling Zone 2. Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 0.97 $2.27 $— $0.84 $0.50 $0.259 2.41 1.77 1 Single Family: Floor Insulation R0 to R30. Heat Pump. Heating Zone 2 Cooling Zone 3. Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 0.97 $2.27 $— $0.84 $0.50 $0.259 2.42 1.78 1 Single Family: Floor Insulation R0 to R30. Heat Pump. Heating Zone 3 Cooling Zone 1. Floor Insulation R0 to R30 ft2 ENRes_SF_HeatPump 45 80% 1.33 $3.11 $— $0.84 $0.50 $0.259 2.95 2.23 1 Single Family: Floor Insulation R0 to R30. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 1.46 $2.88 $— $0.84 $0.50 $0.259 2.62 2.00 1 Single Family: Floor Insulation R0 to R30. Zonal Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 1.91 $3.77 $— $0.84 $0.50 $0.259 3.03 2.38 1 Single Family: Floor Insulation R0 to R30. Zonal Heating System w/o CAC. Heating Zone 3 Cooling Zone 1 Floor Insulation R0 to R30 ft2 ENRes_SF_Heater 45 80% 2.31 $4.55 $— $0.84 $0.50 $0.259 3.32 2.66 1 Single Family: Wall Insulation R0 to R11. Electric FAF Heating System w/o CAC. Heating Zone 2 Cooling Zone 2 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 2.43 $4.80 $— $2.43 $0.50 $0.259 3.40 1.44 1 Single Family: Wall Insulation R0 to R11. Electric FAF Heating System. Heating Zone 1 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 1.80 $3.55 $— $2.43 $0.50 $0.259 2.94 1.13 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 40 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Wall Insulation R0 to R11. Electric FAF Heating System. Heating Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 2.94 $5.80 $— $2.43 $0.50 $0.259 3.68 1.65 1 Single Family: Wall Insulation R0 to R11. Heat Pump . Heating Zone 1 Cooling Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_HeatPump 45 80% 0.95 $2.23 $— $2.43 $0.50 $0.259 2.39 0.78 1, 2 Single Family: Wall Insulation R0 to R11. Heat Pump . Heating Zone 2 Cooling Zone 2 Wall Insulation R0 to R11 ft2 ENRes_SF_HeatPump 45 80% 1.53 $3.59 $— $2.43 $0.50 $0.259 3.20 1.18 1 Single Family: Wall Insulation R0 to R11. Heat Pump. Heating Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_HeatPump 45 80% 2.12 $4.96 $— $2.43 $0.50 $0.259 3.78 1.53 1 Single Family: Wall Insulation R0 to R11. Zonal Heating System w/o CAC. Heating Zone 1 Cooling Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 1.60 $3.15 $— $2.43 $0.50 $0.259 2.76 1.02 1 Single Family: Wall Insulation R0 to R11. Zonal Heating System w/o CAC. Heating Zone 2 Cooling Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 2.13 $4.20 $— $2.43 $0.50 $0.259 3.20 1.30 1 Single Family: Wall Insulation R0 to R11. Zonal Heating System. Heating Zone 3 Wall Insulation R0 to R11 ft2 ENRes_SF_Heater 45 80% 2.57 $5.07 $— $2.43 $0.50 $0.259 3.48 1.50 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Average Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 29.63 $69.28 $— $23.71 $2.50 $0.259 5.45 2.04 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Average Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 16.92 $39.56 $— $23.71 $2.50 $0.259 4.60 1.33 1 Single Family: Window Single Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Average Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 36.61 $85.60 $— $23.71 $2.50 $0.259 5.72 2.37 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 41 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Window Double Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Average Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 21.16 $49.48 $— $23.71 $2.50 $0.259 4.96 1.59 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 29.62 $69.26 $— $23.71 $2.50 $0.259 5.45 2.04 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 16.85 $39.40 $— $23.71 $2.50 $0.259 4.59 1.32 1 Single Family: Window Single Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 35.75 $83.59 $— $23.71 $2.50 $0.259 5.69 2.33 1 Single Family: Window Double Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 20.57 $48.10 $— $23.71 $2.50 $0.259 4.92 1.55 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 33.73 $78.87 $— $23.71 $2.50 $0.259 5.62 2.24 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 19.16 $44.80 $— $23.71 $2.50 $0.259 4.80 1.47 1 Single Family: Window Single Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 40.98 $95.82 $— $23.71 $2.50 $0.259 5.85 2.55 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 42 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Window Double Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 23.56 $55.09 $— $23.71 $2.50 $0.259 5.12 1.72 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 22.95 $53.66 $— $23.71 $2.50 $0.259 5.08 1.69 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 1 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 13.38 $31.29 $— $23.71 $2.50 $0.259 4.20 1.09 1 Single Family: Window Single Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 31.10 $72.72 $— $23.71 $2.50 $0.259 5.51 2.11 1 Single Family: Window Double Pane to Class 30: Heating Zone 3: Cooling Zone 1 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 18.35 $42.91 $— $23.71 $2.50 $0.259 4.73 1.42 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Average Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 30.14 $70.47 $— $23.71 $2.50 $0.259 5.47 2.07 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Average Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 17.44 $40.78 $— $23.71 $2.50 $0.259 4.65 1.36 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 30.13 $70.45 $— $23.71 $2.50 $0.259 5.47 2.07 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 43 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 17.37 $40.61 $— $23.71 $2.50 $0.259 4.64 1.36 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 34.24 $80.06 $— $23.71 $2.50 $0.259 5.63 2.26 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 19.68 $46.02 $— $23.71 $2.50 $0.259 4.85 1.50 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 23.46 $54.85 $— $23.71 $2.50 $0.259 5.12 1.72 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 2 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 13.89 $32.48 $— $23.71 $2.50 $0.259 4.26 1.13 1 Single Family: Window Single Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Average Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 22.47 $52.54 $— $23.71 $2.50 $0.259 5.05 1.66 1 Single Family: Window Double Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Average Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 13.31 $31.12 $— $23.71 $2.50 $0.259 4.19 1.09 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Average Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 30.86 $72.16 $— $23.71 $2.50 $0.259 5.50 2.10 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 44 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Average Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 18.15 $42.44 $— $23.71 $2.50 $0.259 4.71 1.40 1 Single Family: Window Single Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 23.36 $54.62 $— $23.71 $2.50 $0.259 5.11 1.71 1 Single Family: Window Double Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 13.74 $32.13 $— $23.71 $2.50 $0.259 4.24 1.12 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 30.85 $72.13 $— $23.71 $2.50 $0.259 5.50 2.10 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Zonal Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 18.08 $42.27 $— $23.71 $2.50 $0.259 4.71 1.40 1 Single Family: Window Single Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 26.14 $61.12 $— $23.71 $2.50 $0.259 5.27 1.86 1 Single Family: Window Double Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 15.27 $35.70 $— $23.71 $2.50 $0.259 4.43 1.22 1 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 34.96 $81.74 $— $23.71 $2.50 $0.259 5.66 2.29 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 45 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unitf Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Electric FAF Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 20.39 $47.68 $— $23.71 $2.50 $0.259 4.90 1.54 1 Single Family: Window Single Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 14.76 $34.51 $— $23.71 $2.50 $0.259 4.37 1.19 1 Single Family: Window Double Pane to Class 30: Heating Zone 1: Cooling Zone 3 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 9.27 $21.68 $— $23.71 $2.50 $0.259 3.54 0.79 1, 2 Single Family: Window Single Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Single Pane Base ft2 ENRes_SF_HeatPump 45 80% 24.18 $56.54 $— $23.71 $2.50 $0.259 5.16 1.76 1 Single Family: Window Double Pane to Class 30: Heating Zone 2: Cooling Zone 3 (Heat Pump Heating System) WINDOW CL30 Prime Window Replacement of Double Pane Base ft2 ENRes_SF_HeatPump 45 80% 14.60 $34.14 $— $23.71 $2.50 $0.259 4.35 1.75 1 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. Based on 2013 median customer costs. f Properly sealed ducts required for the program. If additional air sealing and duct sealing was required, an additional incentive of $0.50/ln. ft. was paid. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResSFWx_v2_5_IdahoPower_withCAC_ByCoolingZone.xlsm. 2011. 2 Measure combination not cost-effective. Will be monitored in 2014. Supplement 1: Cost-Effectiveness Idaho Power Company Page 46 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 47 Home Products Program Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 108,887 Test Benefit Cost Ratio Program Incentives .............................................................................................. 296,628 I Utility Cost Test ............................. $ 686,674 $ 405,515 1.69 Total Utility Cost ................................................................................................ $ 405,515 P Total Resource Cost Test .............. 1,365,047 608,333 2.24 Ratepayer Impact Measure Test ... 686,674 995,008 0.69 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 550,151 M Participant Cost Test ..................... 1,881,461 550,151 3.42 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 885,980 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 8,613,318 $ 858,342 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 858,342 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 736,866 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ 847,967 NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: Non-energy benefits include the NPV of avoided gas, water, and detergent savings for ENERGY STAR clothes washers and low-flow showerheads. Gas savings based on RTF’s assumptions of therms saved per year. Clothes washers removed from the program in March 2013 due to the measure as currently offered in the program not being cost-effective. Supplement 1: Cost-Effectiveness Idaho Power Company Page 48 Demand-Side Management 2013 Annual Report Year:2013 Program: Home Products Program Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB)e Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Clothes Washer ENERGY STAR clothes washer, any MEF, any DHW, any dryer Baseline clothes washers Washer ENRes_SF_Washer 14 80% 41.00 $44.99 $206.88 $78.61 $50.00 $0.366 0.55 2.29 1, 2 Clothes Washer ENERGY STAR clothes washer MEF of 2.4 or higher and WF of 4 or lower, any DHW, any dryer Baseline clothes washers Washer ENRes_SF_Washer 14 80% 70.00 $76.81 $306.34 $90.14 $50.00 $0.366 0.81 2.84 1, 2 Clothes Washer ENERGY STAR clothes washer MEF of 3.2 or higher and WF of 2.9 or lower, any DHW, any dryer Baseline clothes washers Washer ENRes_SF_Washer 14 80% 121.00 $132.77 $455.39 $270.15 $50.00 $0.366 1.13 1.74 1, 2 Refrigerator ENERGY STAR refrigerator: any Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 26.00 $31.95 $— $14.08 $30.00 $0.366 0.65 0.95 3, 4 Refrigerator ENERGY STAR Refrigerator: Bottom freezer w/ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 16.00 $19.66 $— $6.52 $30.00 $0.366 0.44 0.92 3, 4 Refrigerator ENERGY STAR Refrigerator: Bottom freezer w/o ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 18.00 $22.12 $— $6.25 $30.00 $0.366 0.48 1.01 3 Refrigerator ENERGY STAR Refrigerator: Side-by-side w/ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 18.00 $22.12 $— $15.89 $30.00 $0.366 0.48 0.70 3, 4 Refrigerator ENERGY STAR Refrigerator: Side-by-side w/o ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 21.00 $25.81 $— $24.78 $30.00 $0.366 0.55 0.62 3, 4 Refrigerator ENERGY STAR Refrigerator: Top freezer w/ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 24.00 $29.50 $— $10.50 $30.00 $0.366 0.61 1.02 3 Refrigerator ENERGY STAR Refrigerator: Top freezer w/o ice thru door Baseline refrigerator Refrigerator ENRes_SF_Refrigerator 17 80% 49.00 $60.22 $— $18.10 $30.00 $0.366 1.00 1.25 3 Freezer ENERGY STAR freezer No tiers. any freezer Baseline freezer freezer ENRes_SF_Freezer 22 80% 40.00 $60.73 $— $4.31 $20.00 $0.366 1.40 2.20 5 Freezer ENERGY STAR Freezer (no tiers): Chest, any defrost Baseline freezer freezer ENRes_SF_Freezer 22 80% 29.00 $44.03 $— $3.41 $20.00 $0.366 1.15 2.03 5 Freezer ENERGY STAR Freezer (no tiers): Upright, automatic defrost Baseline freezer freezer ENRes_SF_Freezer 22 80% 56.00 $85.03 $— $5.80 $20.00 $0.366 1.68 2.33 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 49 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB)e Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi Source Freezer ENERGY STAR Freezer (no tiers): Upright, manual defrost Baseline freezer freezer ENRes_SF_Freezer 22 80% 28.00 $42.51 $— $2.90 $20.00 $0.366 1.12 2.05 5 Freezer ENERGY STAR Freezer (no tiers): any upright freezer Baseline freezer freezer ENRes_SF_Freezer 22 80% 47.00 $71.36 $— $4.94 $20.00 $0.366 1.53 2.27 5 Low-flow showerhead Low-flow showerhead 2.0 gpm any shower any water heating retail Showerhead 2.2 gpm or higher showerhead ENRes_SF_WtrHtr 10 80% 66.78 $50.28 $91.61 $27.61 $7.00 $0.005 5.48 4.76 6 Low-flow showerhead Low-flow showerhead 1.75 gpm any shower any water heating retail Showerhead 2.2 gpm or higher showerhead ENRes_SF_WtrHtr 10 80% 99.77 $75.13 $134.42 $27.61 $7.00 $0.005 8.00 6.98 6 Low-flow showerhead Low-flow showerhead 1.5 gpm any shower any water heating retail Showerhead 2.2 gpm or higher showerhead ENRes_SF_WtrHtr 10 80% 129.12 $97.22 $107.91 $27.61 $7.00 $0.005 10.14 8.88 6 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Sum of NPV of avoided cost of gas, water, and detergent savings. f Incremental participant cost prior to customer incentives. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). i Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResClothesWasherSF_v4.0.xls. Any DHW, Any Dryer. 2013. Adjusted savings by changing Electric Water Heating saturation from 55% to 52% to match IPC mix. 2 Measure not cost-effective. Measure removed from the program in 2013. 3 RTF. ResRefrigerator_v3_1.xls. 2013. 4 Measure not cost-effective. Will be monitored in 2014. 5 RTF. ResFreezer_v2_2.xlsm. 2012. 6 RTF. ResShowerheads_v2_1.xlsm. 2011. Adjusted savings by changing Electric Water Heating saturation from 64% to 52% to match IPC mix. Supplement 1: Cost-Effectiveness Idaho Power Company Page 50 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 51 Rebate Advantage Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 28,770 Test Benefit Cost Ratio Program Incentives .............................................................................................. 32,000 I Utility Cost Test ............................. $ 327,841 $ 60,770 5.39 Total Utility Cost ................................................................................................ $ 60,770 P Total Resource Cost Test .............. 327,841 86,306 3.80 Ratepayer Impact Measure Test ... 327,841 361,407 0.91 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 63,920 M Participant Cost Test ..................... 407,795 63,920 6.38 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 269,891 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 3,849,999 $ 409,802 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 409,802 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 375,795 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 52 Demand-Side Management 2013 Annual Report Year:2013 Program: Rebate Advantage Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source ENERGY STAR® manufactured home New ENERGY STAR Manufactured Home with Electric FAF: Heating Zone 1 Manufactured home built to Housing and Urban Development (HUD) code. Home ENRes_MH_Heater 26 80% 5,420.00 $7,790.13 $— $1,567.49 $1,000.00 $0.107 3.95 3.07 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Electric FAF: Heating Zone 2 Manufactured home built to HUD code. Home ENRes_MH_Heater 27 80% 6,847.00 $10,092.11 $— $1,567.49 $1,000.00 $0.107 4.67 3.70 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Electric FAF: Heating Zone 3 Manufactured home built to HUD code. Home ENRes_MH_Heater 27 80% 8,057.00 $11,875.59 $— $1,567.49 $1,000.00 $0.107 5.11 4.11 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Heat Pump: Heating Zone 1 Cooling Zone 3 Manufactured home built to HUD code. Home Res_HVAC 23 80% 3,254.00 $5,925.77 $— $1,567.49 $1,000.00 $0.107 3.52 2.63 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Heat Pump: Heating Zone 2 Cooling Zone 1 Manufactured home built to HUD code. Home Res_HVAC 25 80% 4,346.00 $8,345.54 $— $1,567.49 $1,000.00 $0.107 4.56 3.48 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Heat Pump: Heating Zone 2 Cooling Zone 2 Manufactured home built to HUD code. Home Res_HVAC 25 80% 4,390.00 $8,430.03 $— $1,567.49 $1,000.00 $0.107 4.59 3.51 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Heat Pump: Heating Zone 2 Cooling Zone 3 Manufactured home built to HUD code. Home Res_HVAC 25 80% 4,472.00 $8,587.50 $— $1,567.49 $1,000.00 $0.107 4.65 3.56 1 ENERGY STAR manufactured home New ENERGY STAR Manufactured Home with Heat Pump: Heating Zone 3 Cooling Zone 1 Manufactured home built to HUD code. Home Res_HVAC 26 80% 5,516.00 $10,848.13 $— $1,567.49 $1,000.00 $0.107 5.47 4.25 1 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 53 h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. NewMH_EStar_EcoRated_v1_3.xls. 2013. Supplement 1: Cost-Effectiveness Idaho Power Company Page 54 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 55 See ya later, refrigerator® Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 490,144 Test Benefit Cost Ratio Program Incentives .............................................................................................. 98,910 I Utility Cost Test ............................. $ 723,695 $ 589,054 1.23 Total Utility Cost ................................................................................................ $ 589,054 P Total Resource Cost Test .............. 723,695 589,054 1.23 Ratepayer Impact Measure Test ... 723,695 1,257,050 0.58 Measure Equipment and Installation (Incremental Participant Cost) .................... $ — M Participant Cost Test ..................... N/A N/A N/A Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 1,442,344 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 8,394,736 $ 723,695 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 723,695 S Participant Cost Test .......................... N/A N/A Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 667,996 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 100.00% Average Customer Segment Rate/kWh ....................................................... $0.086 Line Losses ................................................................................................. 10.90% Notes: No NTG. Deemed savings from the Regional Technical Forum (RTF) already accounts for net realized energy savings. No participant costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 56 Demand-Side Management 2013 Annual Report Year:2013 Program: See ya later, refrigerator® Market Segment: Residential Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Freezer Recycling Freezer removal and decommissioning Freezer ENRes_SF_Freezer 5 100% 478.00 $192.09 $— $— $30.00 $0.340 1.00 1.00 1 Refrigerator Recycling Refrigerator removal and decommissioning Refrigerator ENRes_SF_SecRef 7 100% 424.00 $232.35 $— $— $30.00 $0.340 1.33 1.33 1 a Average measure life. b No Net-to-Gross (NTG) percentage. Deemed savings from RTF includes realization rates. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e No participant cost. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. ResFridgeFreezeDecommissioning_v2.5.xlsm. 2012. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 57 Weatherization Assistance for Qualified Customers Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 247,587 Test Benefit Cost Ratio CAP Agency Payments ....................................................................................... 1,144,090 Utility Cost Test ............................. $ 1,310,726 $ 1,380,671 0.95 Total Program Expenses ................................................................................... $ 1,391,677 Total Resource Cost Test .............. 1,502,827 2,041,014 0.74 Less: 2013 Evaluations Expenses (Unamortized Years 2 & 3) (48,089) Ratepayer Impact Measure Test ... 1,310,726 2,329,919 0.56 Total Utility Cost ................................................................................................ $ 1,343,588 P Participant Cost Test ..................... N/A N/A N/A Idaho Power Indirect Overhead Expense Allocation—2.76% $ 37,083 OH Additional State Funding 660,343 M Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P + OH 2013 Annual Gross Energy (kWh) ............................................ 681,736 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + OH + M NPV Cumulative Energy (kWh) ................................................. 9,737,706 $ 1,191,569 Ratepayer Impact Measure Test ........ = S * NTG = P + OH +(B * NTG) 10% Credit (Northwest Power Act) ........................................... 119,157 Participant Cost Test .......................... N/A N/A Total Electric Savings ................................................................ $ 1,310,726 S Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 949,247 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. Net-to-Gross (NTG) .................................................................................... 100.00% Health and Safety ............................................................... 163,713 Average Customer Segment Rate/kWh ....................................................... $0.086 Repair ................................................................................. 28,388 Line Losses ................................................................................................. 10.90% Other .................................................................................. — Non-Energy Benefits Total ..................................................... $ 192,101 NEB Notes: Savings based on average realized savings of 2,684 kWh per home. Savings from the billing analysis of the 2011 projects. Program cost-effectiveness incorporated Idaho Public Utilities Commission (IPUC) staff recommendations from Case No. GNR-E-12-01. Recommendations include: Claimed 100% of savings; increased NTG to 100%; added a 10% conservation preference adder; health, safety, and repair non-energy benefits; amortized evaluation expenses over a three-year period; and allocation of indirect overhead expenses. No customer participant costs. Costs shown are from the DOE state weatherization assistance program. Supplement 1: Cost-Effectiveness Idaho Power Company Page 58 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 59 Weatherization Solutions for Eligible Customers Segment: Residential 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 232,695 Test Benefit Cost Ratio Weatherization LLC Payments ............................................................................ 1,035,096 Utility Cost Test ............................. $ 582,780 $ 1,253,366 0.46 Total Program Expenses ................................................................................... $ 1,267,791 Total Resource Cost Test .............. 658,345 1,253,366 0.53 Less: 2013 Evaluations Expenses (Unamortized Years 2 & 3) (48,089) Ratepayer Impact Measure Test ... 582,780 1,675,424 0.35 Total Utility Cost ................................................................................................ $ 1,219,702 P Participant Cost Test ..................... N/A N/A N/A Idaho Power Indirect Overhead Expense Allocation—2.76% $ 33,664 OH Additional State Funding — M Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P + OH 2013 Annual Gross Energy (kWh) ............................................ 303,116 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + OH + M NPV Cumulative Energy (kWh) ................................................. 4,329,615 $ 529,800 Ratepayer Impact Measure Test ........ = S * NTG = P + OH +(B * NTG) 10% Credit (Northwest Power Act) ........................................... 52,980 Participant Cost Test .......................... N/A N/A Total Electric Savings ................................................................ $ 582,780 S Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 422,058 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. Net-to-Gross (NTG) .................................................................................... 100.00% Health and Safety ............................................................... 65,742 Average Customer Segment Rate/kWh ....................................................... $0.086 Repair ................................................................................. 9,812 Line Losses ................................................................................................. 10.90% Other .................................................................................. — Non-Energy Benefits Total ..................................................... $ 75,565 NEB Notes: Savings based on average realized savings of 1,826 kWh per home. Savings from the billing analysis of the 2011 projects. Program cost-effectiveness incorporated IPUC staff recommendations from Case No. GNR-E-12-01. Recommendations include: Increased NTG to 100%; added a 10% conservation preference adder; health, safety, and repair non-energy benefits; amortized evaluation expenses over a three-year period; and allocation of indirect overhead expenses. No customer participant costs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 60 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 61 Building Efficiency Segment: Commercial 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 356,623 Test Benefit Cost Ratio Program Incentives .............................................................................................. 1,150,412 I Utility Cost Test ............................. $ 8,255,178 $ 1,507,035 5.48 Total Utility Cost ................................................................................................ $ 1,507,035 P Total Resource Cost Test .............. 8,255,178 2,535,381 3.26 Ratepayer Impact Measure Test ... 8,255,178 6,322,879 1.31 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 2,435,845 M Participant Cost Test ..................... 7,170,218 2,435,845 2.94 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 10,988,934 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 106,839,919 $ 10,318,972 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 10,318,972 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 6,019,806 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.057 Line Losses ................................................................................................. 10.90% Supplement 1: Cost-Effectiveness Idaho Power Company Page 62 Demand-Side Management 2013 Annual Report Year:2013 Program: Building Efficiency Market Segment: Commercial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Lighting Controls Interior light load reduction:10–19% below code Code standards ft2 ENComm_InsLt 11 96% 0.38 $0.33 $— $0.05 $0.05 $0.032 5.17 5.17 1 Lighting Controls Interior light load reduction - 20% or more below code Code standards ft2 ENComm_InsLt 11 96% 1.09 $0.96 $— $0.10 $0.15 $0.032 4.98 6.73 1 Lighting Controls Exterior light load reduction: 15% or more below code Code standards kW IPC_Outdoor Lighting 11 96% 4,059.00 $2,644.99 $— $205.00 $200.00 $0.032 7.70 7.59 2 Lighting Controls Daylight photo controls Code standards Square Feet ENComm_InsLt 8 96% 0.61 $0.40 $— $0.25 $0.25 $0.032 1.41 1.41 3 Lighting Controls Occupancy sensors Code standards Sensor ENComm_InsLt 8 96% 289.99 $189.85 $— $77.00 $25.00 $0.032 5.32 2.16 3 Sign Lighting High efficiency exit signs Code standards Signs IPC_8760 16 96% 333.00 $379.59 $— $31.52 $7.50 $0.032 20.07 8.84 3 A/C & Heat Pump Units Premium Efficiency HVAC unit Code standards Ton ENComm_HVAC 15 80% 386.72 $469.49 $— $122.22 $50.00 $0.032 6.02 3.13 1 A/C & Heat Pump Units Additional HVAC Unit Efficiency bonus Code standards Ton ENComm_HVAC 15 80% 181.78 $220.69 $— $81.50 $25.00 $0.032 5.73 2.32 1 A/C & Heat Pump Units Efficient Chillers Code standards Ton ENComm_Cooling 15 80% 154.28 $207.42 $— $75.00 $20.00 $0.032 6.65 2.41 2 Economizers Air side economizers Code standards Ton ENComm_Cooling 15 80% 300.00 $403.34 $— $170.00 $75.00 $0.032 3.81 2.01 3 Reflective Roofing Reflective roof coating Code standards ft2 ENComm_Cooling 15 80% 0.41 $0.55 $— $0.35 $0.05 $0.032 6.99 1.45 3 Efficient Windows High-performance windows Code standards ft2 ENComm_HVAC 30 80% 1.01 $1.99 $— $0.74 $0.50 $0.032 3.00 2.20 3 Automated Control Systems Energy management control systems Code standards ft2 ENComm_HVAC 14 96% 1.24 $1.42 $— $1.00 $0.30 $0.032 4.02 1.35 3 Automated Control Systems Demand controlled ventilation Code standards Ft3per Minute ENComm_HVAC 10 96% 1.31 $1.12 $— $0.60 $0.50 $0.032 1.98 1.68 3 Variable Speed Controls Variable speed drives Code standards HP ENComm_HVAC 15 96% 985.02 $1,195.84 $— $187.00 $60.00 $0.032 12.54 5.38 3 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 63 g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((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 64 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 65 Custom Efficiency Segment: Industrial 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 1,112,064 Test Benefit Cost Ratio Program Incentives .............................................................................................. 1,354,161 I Utility Cost Test ............................. $ 13,846,551 $ 2,466,225 5.61 Total Utility Cost ................................................................................................ $ 2,466,225 P Total Resource Cost Test .............. 13,846,551 5,413,798 2.56 Ratepayer Impact Measure Test ... 13,846,551 7,667,765 1.81 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 5,626,006 M Participant Cost Test ..................... 8,892,624 5,656,006 1.58 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 21,370,350 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 207,773,244 $ 20,067,465 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 20,067,465 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 7,538,463 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 69.00% Average Customer Segment Rate/kWh ....................................................... $0.037 Line Losses ................................................................................................. 10.90% Notes: Energy savings are unique by project and are reviewed by Idaho Power engineering staff or third-party consultants. Each project must complete a certification inspection. Green Rewind initiative is available to agricultural, commercial, and industrial customers. Commercial and industrial motor rewinds are paid under Custom Efficiency. NTG of 69% from CPUC DEER NTFR Update Process for 2006-2007 Programs. Supplement 1: Cost-Effectiveness Idaho Power Company Page 66 Demand-Side Management 2013 Annual Report Year:2013 Program: Custom Efficiency—Green Motors Market Segment: Industrial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Green Motors Program Rewind Green Motors Program Rewind: Motor size 15HP Standard rewind practice Motor MF_Motors 8 69% 601.00 $377.80 $— $154.35 $30.00 $0.050 4.34 1.79 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 20HP Standard rewind practice Motor MF_Motors 8 69% 804.00 $505.41 $— $172.21 $40.00 $0.050 4.35 2.03 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 25HP Standard rewind practice Motor MF_Motors 8 69% 1,052.00 $661.31 $— $196.76 $50.00 $0.050 4.45 2.24 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 30HP Standard rewind practice Motor MF_Motors 8 69% 1,133.00 $712.23 $— $216.10 $60.00 $0.050 4.21 2.19 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 40HP Standard rewind practice Motor MF_Motors 8 69% 1,319.00 $829.15 $— $264.09 $80.00 $0.050 3.92 2.10 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 50HP Standard rewind practice Motor MF_Motors 8 69% 1,418.00 $891.39 $— $292.35 $100.00 $0.050 3.60 2.03 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 60HP Standard rewind practice Motor MF_Motors 9 69% 1,476.00 $1,037.42 $— $344.79 $120.00 $0.050 3.69 2.05 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 70HP Standard rewind practice Motor MF_Motors 9 69% 1,519.00 $1,067.64 $— $372.69 $150.00 $0.050 3.26 1.94 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 100HP Standard rewind practice Motor MF_Motors 9 69% 2,005.00 $1,409.23 $— $462.33 $200.00 $0.050 3.24 2.02 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 125HP Standard rewind practice Motor MF_Motors 8 69% 2,598.00 $1,633.16 $— $519.23 $250.00 $0.050 2.97 1.99 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 150HP Standard rewind practice Motor MF_Motors 8 69% 3,089.00 $1,941.81 $— $578.37 $300.00 $0.050 2.95 2.07 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 200HP Standard rewind practice Motor MF_Motors 8 69% 4,088.00 $2,569.80 $— $696.28 $400.00 $0.050 2.93 2.19 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 250HP Standard rewind practice Motor MF_Motors 9 69% 4,972.00 $3,494.60 $— $894.90 $500.00 $0.050 3.22 2.36 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 300HP Standard rewind practice Motor MF_Motors 9 69% 5,935.00 $4,171.45 $— $904.58 $600.00 $0.050 3.21 2.60 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 67 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Green Motors Program Rewind Green Motors Program Rewind: Motor size 350HP Standard rewind practice Motor MF_Motors 9 69% 6,919.00 $4,863.06 $— $948.10 $700.00 $0.050 3.21 2.76 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 400HP Standard rewind practice Motor MF_Motors 9 69% 7,848.00 $5,516.01 $— $1,058.93 $800.00 $0.050 3.19 2.78 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 450HP Standard rewind practice Motor MF_Motors 9 69% 8,811.00 $6,192.86 $— $1,157.49 $900.00 $0.050 3.19 2.81 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 500HP Standard rewind practice Motor MF_Motors 9 69% 9,804.00 $6,890.80 $— $1,250.49 $1,000.00 $0.050 3.19 2.86 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 600HP Standard rewind practice Motor MF_Motors 7 69% 14,689.00 $8,119.94 $— $1,842.75 $1,200.00 $0.050 2.90 2.36 1 a Average measure life. b Net-to-Gross (NTG) percentage. CPUC DEER NTFR Update Process for 2006-2007 Programs. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. IndGreenMotorRewind_v2_0.xlsm. 2013. Supplement 1: Cost-Effectiveness Idaho Power Company Page 68 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 69 Easy Upgrades Segment: Commercial 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ....................................................................................... $ 985,274 Test Benefit Cost Ratio Program Incentives .............................................................................................. 2,374,516 I Utility Cost Test ............................. $ 15,822,291 $ 3,359,790 4.71 Total Utility Cost ................................................................................................ $ 3,359,790 P Total Resource Cost Test .............. 15,822,291 6,062,874 2.61 Ratepayer Impact Measure Test ... 15,822,291 12,590,081 1.26 Measure Equipment and Installation (Incremental Participant Cost) .................... $ 5,753,371 M Participant Cost Test ..................... 13,912,379 5,753,371 2.42 Net Benefit Inputs (NPV) Ref Benefits and Costs Included in Each Test Resource Savings Utility Cost Test .................................. = S * NTG = P 2013 Annual Gross Energy (kWh) ............................................ 21,061,946 Total Resource Cost Test ................... = (S + NUI + NEB) * NTG = P + ((M-I)*NTG) NPV Cumulative Energy (kWh) ................................................. 204,774,786 $ 19,777,864 Ratepayer Impact Measure Test ........ = S * NTG = P + (B * NTG) Total Electric Savings ................................................................ $ 19,777,864 S Participant Cost Test .......................... = B + I + NUI + NEB = M Participant Bill Savings Assumptions for Levelized Calculations NPV Cumulative Participant Savings ........................................ $ 11,537,863 B Discount Rate Nominal (WACC) ..................................................................................... 7.00% Other Benefits Real ((1 + WACC) / (1 + Escalation)) – 1 ................................................. 3.88% Non-Utility Rebates/Incentives .................................................. $ — NUI Escalation Rate ........................................................................................... 3.00% Non-Energy Benefits ................................................................. $ — NEB Net-to-Gross (NTG) .................................................................................... 80.00% Average Customer Segment Rate/kWh ....................................................... $0.057 Line Losses ................................................................................................. 10.90% Notes: Measure inputs from Evergreen Consulting Group or Idaho Power Demand-Side Management Potential Study by Nexant, Inc. unless otherwise noted. Supplement 1: Cost-Effectiveness Idaho Power Company Page 70 Demand-Side Management 2013 Annual Report Year:2013 Program: Easy Upgrades Market Segment: Commercial Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source 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 ENComm_InsLt 11 96% 106.40 $93.68 $— $40.92 $8.00 $0.047 6.92 2.02 1 Standard T8s 1 lamp 4-ft T8 and electronic ballast 1 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 59.50 $52.39 $— $28.40 $12.00 $0.047 3.40 1.65 1 Standard T8s 1 or 2 lamp 4-ft T8s and electronic ballasts 2 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 108.50 $95.53 $— $37.60 $14.00 $0.047 4.80 2.20 1 Standard T8s 2 or 3 lamp 4-ft T8s and electronic ballast 3 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 176.75 $155.62 $— $54.45 $18.00 $0.047 5.68 2.44 1 Standard T8s 2, 3, or 4 lamp 4-ft T8s and electronic ballasts 4 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 236.83 $208.52 $— $59.83 $22.00 $0.047 6.04 2.88 1 Standard T8s 1 or 2 lamp 6-ft T8s and electronic ballast 1 or 2 Lamp 6-ft T12 Fixture ENComm_InsLt 12 96% 121.33 $115.61 $— $49.33 $14.00 $0.047 5.63 2.07 1 Standard T8s 1 or 2 lamp 6-ft T8s and electronic ballast (slimline & ho) 1 or 2 Lamp 6-ft T12HO/VHO Fixture ENComm_InsLt 12 96% 377.03 $359.24 $— $81.55 $14.00 $0.047 10.87 3.57 1 Standard T8s 1 or 2 lamp 8-ft T8s and electronic ballast 1 or 2 Lamp 8-ft T12 Fixture ENComm_InsLt 12 96% 116.67 $111.16 $— $58.47 $12.00 $0.047 6.10 1.72 1 Standard T8s 2, 3 or 4 lamp 8-ft T8s and electronic ballast 3 or 4 Lamp 8-ft T12 Fixture ENComm_InsLt 12 96% 262.50 $250.11 $— $101.66 $24.00 $0.047 6.61 2.17 1 Standard T8s 1 or 2 lamp 8-ft T8s and electronic ballast (slimline & ho) 1 or 2 Lamp 8-ft T12HO/VHO Fixture ENComm_InsLt 12 96% 525.91 $501.09 $— $67.57 $12.00 $0.047 13.10 5.34 1 Standard T8s 2, 3 or 4 lamp 8-ft T8s and electronic ballast (slimline & ho) 3 or 4 Lamp 8-ft T12HO/VHO Fixture ENComm_InsLt 12 96% 1,195.59 $1,139.17 $— $95.00 $24.00 $0.047 13.64 7.37 1 Standard T8s 2 or 4 lamp 4-ft T8s and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12 Fixture ENComm_InsLt 11 96% 121.33 $106.83 $— $53.07 $22.00 $0.047 3.70 1.78 1 Standard T8s 2 or 4 lamp 4-ft T8s and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12HO/VHO Fixture ENComm_InsLt 11 96% 540.87 $476.20 $— $54.81 $30.00 $0.047 8.25 5.77 1 High performance T8s 1 lamp 4-ft hp T8 and electronic ballast 1 Lamp 4-ft T12 Fixture ENComm_InsLt 12 96% 80.50 $76.70 $— $62.98 $22.00 $0.047 2.86 1.13 1 High performance T8s 1 or 2 lamp 4-ft hp T8s and electronic ballast 2 Lamp 4-ft T12 Fixture ENComm_InsLt 12 96% 129.86 $123.73 $— $60.13 $24.00 $0.047 3.95 1.83 1 High performance T8s 2 or 3 lamp 4-ft hp T8s and electronic ballast 3 Lamp 4-ft T12 Fixture ENComm_InsLt 12 96% 203.97 $194.35 $— $67.23 $32.00 $0.047 4.49 2.47 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 71 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source High performance T8s 2, 3, or 4 lamp 4-ft hp T8s and electronic ballast 4 Lamp 4-ft T12 Fixture ENComm_InsLt 12 96% 262.83 $250.43 $— $67.32 $34.00 $0.047 5.19 3.07 1 High performance T8s 2 or 4 lamp 4-ft hp T8s and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12 Fixture ENComm_InsLt 12 96% 171.07 $163.00 $— $68.86 $34.00 $0.047 3.72 2.07 1 High performance T8s 2 or 4 lamp 4-ft hp T8s and electronic ballast (tandem/retrofit) 1 or 2 Lamp 8-ft T12HO/VHO Fixture ENComm_InsLt 12 96% 567.38 $540.61 $— $74.54 $45.00 $0.047 7.24 5.19 1 T5 (Non-HO) 1 or 2 lamp 4-ft T5s and electronic ballast 1 or 2 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 102.67 $90.39 $— $50.30 $14.00 $0.047 4.61 1.62 1 T5 (Non-HO) 2, 3, or 4 lamp 4-ft T5s and electronic ballast 3 or 4 Lamp 4-ft T12 Fixture ENComm_InsLt 11 96% 185.50 $163.32 $— $90.34 $24.00 $0.047 4.79 1.63 1 T5/T8 high bay (new fixture) 4 lamp 4-ft T8s and electronic ballast Fixture (lamp & ballast) using ≥ 200 W Fixture ENComm_InsLt 12 96% 574.58 $547.47 $— $153.91 $75.00 $0.047 5.15 2.96 1 T5/T8 high bay (new fixture) 6 lamp 4-ft T8s and electronic ballast or 2, 3, or 4 lamp 4-ft T5hos and electronic ballast Fixture (lamp & ballast) using 200–399 W Fixture ENComm_InsLt 12 96% 400.47 $381.57 $— $184.82 $75.00 $0.047 3.90 1.84 1 T5/T8 high bay (new fixture) 6 or 8 lamp 4-ft T8s and electronic ballast or 4 or 6 lamp 4-ft T5hos and electronic ballast Fixture (lamp & ballast) using ≥ 400 W Fixture ENComm_InsLt 12 96% 966.27 $920.68 $— $210.34 $110.00 $0.047 5.69 3.51 1 T5/T8 high bay (new fixture) 10 or 12 lamp 4-ft T8s and electronic ballast or 8 or 10 lamp 4-ft T5hos and electronic ballast Fixture (lamp & ballast) 751–1,100 W Fixture ENComm_InsLt 12 96% 2,366.70 $2,255.03 $— $386.65 $180.00 $0.047 7.43 4.42 1 T8/T5 HO–T8/T5HO relamp only Lamp 4-ft Reduced Wattage HP T8 Fixture ENComm_InsLt 8 96% 84.00 $54.99 $— $15.20 $1.00 $0.047 10.67 2.84 1 T8/T5 HO–T8/T5HO relamp only 2 Lamp 4-ft Reduced Wattage HP T8 Fixture ENComm_InsLt 8 96% 137.12 $89.77 $— $22.83 $2.00 $0.047 10.21 3.03 1 T8/T5 HO–T8/T5HO relamp only 3 Lamp 4-ft Reduced Wattage HP T8 Fixture ENComm_InsLt 8 96% 107.80 $70.58 $— $31.62 $3.00 $0.047 8.40 1.91 1 T8/T5 HO–T8/T5HO relamp only 4 Lamp 4-ft Reduced Wattage HP T8 Fixture ENComm_InsLt 8 96% 96.25 $63.01 $— $37.83 $4.00 $0.047 7.10 1.48 1 T8/T5 HO–T8/T5HO relamp only 1 Lamp 4-ft Reduced Wattage T5 1 or 2 lamp 4-ft T5 Fixture ENComm_InsLt 8 96% 56.00 $36.66 $— $2.50 $1.00 $0.047 9.69 6.94 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 72 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source T8/T5 HO–T8/T5HO relamp only 2 Lamp 4-ft Reduced Wattage T5 2 or 3 or 4 lamp 4-ft T5 Fixture ENComm_InsLt 8 96% 119.00 $77.91 $— $5.00 $2.00 $0.047 9.85 7.14 1 T8/T5 HO–T8/T5HO relamp only 3 Lamp 4-ft Reduced Wattage T5 3 or 4 lamp 4-ft T5 Fixture ENComm_InsLt 8 96% 77.00 $50.41 $— $7.50 $3.00 $0.047 7.31 4.42 1 T8/T5 HO–T8/T5HO relamp only 4 Lamp 4-ft Reduced Wattage T5 4 lamp 4-ft T5 Fixture ENComm_InsLt 8 96% 42.00 $27.50 $— $10.00 $4.00 $0.047 4.42 2.25 1 T8/T5 HO–T8/T5HO relamp only 1 Lamp 4-ft Reduced Wattage T5HO 1 or 2 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 115.50 $75.62 $— $2.50 $1.00 $0.047 11.29 9.23 1 T8/T5 HO–T8/T5HO relamp only 2 Lamp 4-ft Reduced Wattage T5HO 2 or 3 or 4 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 243.83 $159.63 $— $5.00 $2.00 $0.047 11.39 9.38 1 T8/T5 HO– T8/T5HO relamp only 3 Lamp 4-ft Reduced Wattage T5HO 3 or 4 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 154.00 $100.82 $— $7.50 $3.00 $0.047 9.45 6.65 1 T8/T5 HO–T8/T5HO relamp only 4 Lamp 4-ft Reduced Wattage T5HO 4 or 6 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 294.00 $192.48 $— $10.00 $4.00 $0.047 10.37 7.84 1 T8/T5 HO–T8/T5HO relamp only 6 Lamp 4-ft Reduced Wattage T5HO 6 or 8 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 308.00 $201.64 $— $15.00 $6.00 $0.047 9.45 6.65 1 T8/T5 HO– T8/T5HO relamp only 8 Lamp 4-ft Reduced Wattage T5HO 8 or 10 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 379.75 $248.62 $— $20.00 $8.00 $0.047 9.23 6.39 1 T8/T5 HO–T8/T5HO relamp only 10 Lamp 4-ft Reduced Wattage T5HO 10 lamp 4-ft T5HO Fixture ENComm_InsLt 8 96% 213.50 $139.78 $— $25.00 $10.00 $0.047 6.70 3.90 1 T8/T5 HO–T8/T5HO relamp only 1 or 2 lamp 4-ft 28 watt T8 1 Lamp 4-ft 25 W T8 Fixture ENComm_InsLt 8 96% 78.94 $51.68 $— $15.20 $1.00 $0.047 10.53 2.71 1 T8/T5 HO–T8/T5HO relamp only 2 or 3 lamp 4-ft 28 watt T8 2 Lamp 4-ft 25 W T8 Fixture ENComm_InsLt 8 96% 85.63 $56.06 $— $21.42 $2.00 $0.047 8.93 2.18 1 T8/T5 HO–T8/T5HO relamp only 3 or 4 lamp 4-ft 28 watt T8 3 Lamp 4-ft 25 W T8 Fixture ENComm_InsLt 8 96% 102.75 $67.27 $— $31.62 $3.00 $0.047 8.25 1.83 1 T8/T5 HO–T8/T5HO relamp only 4 lamp 4-ft 28 watt T8 2 Lamp 4-ft 25 W T8 Fixture ENComm_InsLt 8 96% 190.17 $124.50 $— $25.42 $2.00 $0.047 10.93 3.58 1 T8/T5 HO–T8/T5HO relamp only 4 lamp 4-ft 28 watt T8 4 Lamp 4-ft 25 W T8 Fixture ENComm_InsLt 8 96% 81.67 $53.47 $— $34.83 $4.00 $0.047 6.55 1.37 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 73 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Permanent fixture removal measure (formerly HID permanent removal) 3 or 4 lamp 4 ft T12 and electronic ballast Decommissioning Fixture ENComm_InsLt 8 96% 453.25 $296.74 $— $28.33 $15.00 $0.047 7.85 5.80 1 Permanent fixture removal measure (formerly HID permanent removal) 2 lamp 8-ft T12 and magnetic or electronic ballast Decommissioning Fixture ENComm_InsLt 8 96% 456.75 $299.03 $— $38.33 $15.00 $0.047 7.87 4.88 1 Permanent fixture removal measure (formerly HID permanent removal) 3 or 4 lamp 8-ft T12 or T12HO/VHO and magnetic or electronic ballast Decommissioning Fixture ENComm_InsLt 8 96% 1,531.25 $1,002.49 $— $38.89 $25.00 $0.047 9.92 8.73 1 Permanent fixture removal measure (formerly HID permanent removal) 1 lamp 8-ft T12HO and magnetic or electronic ballast Decommissioning Fixture ENComm_InsLt 8 96% 404.25 $264.66 $— $38.33 $15.00 $0.047 7.47 4.50 1 Permanent fixture removal measure (formerly HID permanent removal) 1 lamp 8-ft T12VHO and magnetic or electronic ballast or 2 lamp 8-ft T12HO/VHO and magnetic or electronic ballast Decommissioning Fixture ENComm_InsLt 8 96% 945.58 $619.06 $— $38.33 $25.00 $0.047 8.56 7.23 1 Permanent fixture removal measure (formerly HID permanent removal) 4 lamp 2-ft T12 and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 350.00 $229.14 $— $28.33 $15.00 $0.047 6.99 4.97 1 Permanent fixture removal measure (formerly HID permanent removal) 3 or 4 lamp 3-ft T12 and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 463.75 $303.61 $— $26.67 $15.00 $0.047 7.92 6.07 1 Permanent fixture removal measure (formerly HID permanent removal) 3 lamp 4-ft T12 and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 465.50 $304.76 $— $28.33 $15.00 $0.047 7.93 5.89 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 74 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Permanent fixture removal measure (formerly HID permanent removal) 4 lamp 4-ft T12 and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 574.00 $375.79 $— $28.33 $25.00 $0.047 6.94 6.54 1 Permanent fixture removal measure (formerly HID permanent removal) 2 lamp 6-ft T12 and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 416.50 $272.68 $— $32.33 $15.00 $0.047 7.57 5.11 1 Permanent fixture removal measure (formerly HID permanent removal) 1 lamp 6-ft T12HO and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 371.00 $242.89 $— $32.33 $15.00 $0.047 7.19 4.75 1 Permanent fixture removal measure (formerly HID permanent removal) 1 lamp 6-ft T12VHO and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 588.00 $384.96 $— $32.33 $25.00 $0.047 7.02 6.19 1 Permanent fixture removal measure (formerly HID permanent removal) 2 lamp 6-ft T12HO/VHO and magnetic ballast Decommissioning Fixture ENComm_InsLt 8 96% 880.25 $576.29 $— $32.33 $25.00 $0.047 8.34 7.54 1 Permanent fixture removal measure (formerly HID permanent removal) Mercury vapor using 119 input Watts (W) Decommissioning Fixture ENComm_InsLt 8 96% 416.50 $272.68 $— $41.67 $15.00 $0.047 7.57 4.35 1 Permanent fixture removal measure (formerly HID permanent removal) Mercury vapor using > 120 input W Decommissioning Fixture ENComm_InsLt 8 96% 1,760.50 $1,152.58 $— $44.17 $25.00 $0.047 10.27 8.77 1 Permanent fixture removal measure (formerly HID permanent removal) High pressure sodium using 116 input W Decommissioning Fixture ENComm_InsLt 8 96% 406.00 $265.80 $— $41.67 $15.00 $0.047 7.49 4.28 1 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 75 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Permanent fixture removal measure (formerly HID permanent removal) High pressure sodium using > 120 input W Decommissioning Fixture ENComm_InsLt 8 96% 1,591.80 $1,042.13 $— $43.93 $25.00 $0.047 10.02 8.48 1 Permanent fixture removal measure (formerly HID permanent removal) Metal halide using 142 input W Decommissioning Fixture ENComm_InsLt 8 96% 497.00 $325.38 $— $41.67 $15.00 $0.047 8.14 4.88 1 Permanent fixture removal measure (formerly HID permanent removal) Metal halide using > 150 input W Decommissioning Fixture ENComm_InsLt 8 96% 1,790.25 $1,172.05 $— $44.17 $25.00 $0.047 10.31 8.82 1 Permanent fixture removal measure (formerly HID permanent removal) Incandescent/cfl using 100–200 input W Decommissioning Fixture ENComm_InsLt 8 96% 437.50 $286.43 $— $24.33 $15.00 $0.047 7.73 6.18 1 Permanent fixture removal measure (formerly HID permanent removal) Incandescent/cfl using ≥ 200 input W Decommissioning Fixture ENComm_InsLt 8 96% 875.00 $572.85 $— $27.67 $25.00 $0.047 8.32 8.01 1 Compact Fluorescents (CFLs) Screw-in compact fluorescent ≤ 32 W Fixture using ≥ 60 input w Fixture ENComm_InsLt 6 96% 98.00 $48.62 $— $23.00 $2.00 $0.047 7.07 1.74 1 CFLS Screw-in compact fluorescent 33 to 59 W Fixture using ≥ 100 input W Fixture ENComm_InsLt 6 96% 143.50 $71.20 $— $31.00 $4.00 $0.047 6.36 1.86 1 CFLS Screw-in compact fluorescent ≥ 60 W Fixture using ≥ 150 input W Fixture ENComm_InsLt 6 96% 175.00 $86.83 $— $29.00 $20.00 $0.047 2.95 2.26 1 CFLS Screw-in cold-cathode ≤ 32 W Fixture using ≥ 60 input W Fixture ENComm_InsLt 6 96% 175.88 $87.26 $— $35.38 $4.00 $0.047 6.83 1.98 1 CFLS Hard-wired compact fluorescent ≤ 49 W and electronic ballasts Fixture using ≥ 90 input W Fixture ENComm_InsLt 6 96% 262.78 $130.38 $— $85.00 $30.00 $0.047 2.96 1.32 1 CFLS Hard-wired compact fluorescent 50–99 W and electronic ballasts Fixture using ≥ 150 input W Fixture ENComm_InsLt 6 96% 471.10 $233.74 $— $104.50 $40.00 $0.047 3.61 1.81 1 Light Emitting Diodes (LEDs) Screw-in or pin-based led ≤ 10 W Fixture using ≥ 40 input W Fixture ENComm_InsLt 12 96% 105.00 $100.05 $— $45.00 $10.00 $0.047 6.43 1.98 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 76 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Ceramic/pulse start/electronic metal halide Pulse start metal halides 200–1000 w Screw-in reduced wattage metal halide, > 125 W Fixture ENComm_InsLt 8 96% 476.85 $312.19 $— $70.83 $25.00 $0.047 6.32 3.28 1 Ceramic/pulse start metal halide 150 to 250 input W metal halide Fixture (lamp & ballast) using ≥ 295 input W Fixture ENComm_InsLt 12 96% 570.50 $543.58 $— $185.00 $30.00 $0.047 9.19 2.54 1 Ceramic/pulse start metal halide 251 to 360 input W metal halide Fixture (lamp & ballast) using ≥ 450 input W Fixture ENComm_InsLt 12 96% 499.63 $476.05 $— $217.50 $55.00 $0.047 5.82 1.95 1 Ceramic/pulse start metal halide 361+ input W metal halide Fixture (lamp & ballast) using ≥ 600 input W Fixture ENComm_InsLt 12 96% 2,033.50 $1,937.55 $— $245.00 $105.00 $0.047 9.27 5.55 1 LED exits LED exit sign or equivalent (5 W or less) Exit sign using ≥ 18 W Fixture IPC_8760 16 96% 88.67 $101.07 $— $68.69 $25.00 $0.047 3.33 1.37 1 Lighting controls Wall switch occupancy sensor Manual or no prior control Fixture ENComm_InsLt 10 96% 149.30 $120.31 $— $90.00 $35.00 $0.047 2.75 1.22 1 Lighting controls Wall or ceiling mount occupancy sensor Manual or no prior control Fixture ENComm_InsLt 10 96% 472.17 $380.48 $— $130.00 $50.00 $0.047 5.06 2.45 1 Lighting controls Fixture mount occupancy sensor Manual or no prior control Fixture ENComm_InsLt 10 96% 252.22 $203.24 $— $100.00 $50.00 $0.047 3.15 1.78 1 Lighting controls Interior photocell control (dimming, step-dimming or switching) Manual or no prior control Fixture ENComm_InsLt 10 96% 379.42 $305.74 $— $130.00 $40.00 $0.047 5.08 2.03 1 Lighting controls Auto-off time switch or time clock control (minimum of 100 W connected to load) Manual or no prior control Fixture ENComm_InsLt 10 96% 272.74 $219.78 $— $125.00 $40.00 $0.047 3.99 1.57 1 Case/walk-in lighting T8 fluorescent lighting T12 fluorescent lighting Lamp ENComm_Refrigeration 6 96% 309.31 $147.27 $— $44.70 $15.00 $0.047 4.79 2.44 2 Case/walk-in lighting LED display case lighting T12 fluorescent lighting Linear Foot ENComm_Refrigeration 8 96% 111.25 $70.01 $— $42.72 $15.00 $0.047 3.32 1.43 3 T8 to LED case lighting LED reach in and open display case lighting T8 fluorescent lighting Linear Foot ENComm_Refrigeration 8 96% 77.75 $48.93 $— $44.38 $10.00 $0.047 3.44 1.01 4 Case/Walk-in Lighting Fluorescent walk-in light fixture Incandescent walk-in light fixture Fixture ENComm_Refrigeration 6 96% 627.99 $299.00 $— $47.49 $25.00 $0.047 5.27 3.77 2 A/C & Heat Pump Units PTAC/PTHP unit, min 12 EER Standard PTAC/PTHP unit Unit ENComm_Cooling 12 80% 562.50 $627.33 $— $255.00 $50.00 $0.047 6.57 2.09 5 A/C & Heat Pump Units 5 ton or less 1 phase A/C unit, min 15 SEER Standard 1–5 ton A/C unit Ton ENComm_Cooling 15 80% 130.29 $175.17 $— $50.00 $25.00 $0.047 4.50 2.74 5 A/C & Heat Pump Units 5 ton or less 1 phase A/C unit, min 16 SEER Standard 5 ton or less A/C unit Ton ENComm_Cooling 15 80% 183.22 $246.34 $— $100.00 $50.00 $0.047 3.36 2.00 5 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 77 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source AC & Heat Pump Units 5 ton or less 1 phase A/C unit, min 17 SEER Standard 5 ton or less A/C unit Ton ENComm_Cooling 15 80% 229.93 $309.13 $— $150.00 $75.00 $0.047 2.88 1.70 5 AC & Heat Pump Units 5 ton or less 3 phase A/C unit, min 14 SEER Standard 1-5 ton A/C unit Ton ENComm_Cooling 15 80% 362.96 $487.98 $— $75.00 $50.00 $0.047 5.82 4.48 5 AC & Heat Pump Units 5 ton or less 3 phase A/C unit, min 15 SEER Standard 5 ton or less A/C unit Ton ENComm_Cooling 15 80% 423.45 $569.31 $— $75.00 $75.00 $0.047 4.80 4.80 5 AC & Heat Pump Units 5 ton or less 3 phase A/C unit, min 16 SEER Standard 5 ton or less A/C unit Ton ENComm_Cooling 15 80% 476.38 $640.47 $— $150.00 $100.00 $0.047 4.19 3.16 5 AC & Heat Pump Units 6–10 ton ac unit, must meet CEE tier 1 Standard 6–10 ton A/C unit Ton ENComm_Cooling 15 80% 130.15 $174.98 $— $100.00 $50.00 $0.047 2.49 1.46 5 AC & Heat Pump Units 11–19 ton ac unit, min 10.8 EER must meet CEE tier 1 Standard 11–19 ton A/C unit Ton ENComm_Cooling 15 80% 197.67 $265.76 $— $100.00 $50.00 $0.047 3.59 2.14 5 AC & Heat Pump Units 20 ton or more A/C unit, min 10 EER must meet CEE tier 1 Standard 20 ton+ A/C unit Ton ENComm_Cooling 15 80% 112.72 $151.55 $— $75.00 $50.00 $0.047 2.19 1.61 5 Economizers Air-side economizer control addition No prior control Ton ENComm_Cooling 15 80% 300.00 $403.34 $— $170.00 $75.00 $0.047 3.62 1.95 2, 6 Economizers Water-side economizer control addition No prior control Ton ENComm_Cooling 10 80% 1,199.10 $1,138.47 $— $463.00 $75.00 $0.047 6.93 2.06 2, 6 Economizers Air-side economizer system repair Non-functional Economizer Unit ENComm_Cooling 15 80% 4,499.29 $6,049.13 $— $630.00 $250.00 $0.047 10.49 6.32 2, 6 Evaporative coolers/pre-coolers Pre-cooler added to condenser Standard air cooled A/C unit Ton ENComm_Cooling 10 80% 832.30 $790.22 $— $200.00 $100.00 $0.047 4.54 2.89 2 Evaporative coolers/pre-coolers Retrofit to direct evaporative cooler Replacing standard A/C unit Ton ENComm_Cooling 15 80% 902.52 $1,213.41 $— $400.00 $200.00 $0.047 4.00 2.41 2 Evaporative coolers/pre-coolers Retrofit to indirect evaporative cooler Replacing standard A/C unit Ton ENComm_Cooling 15 80% 676.89 $910.06 $— $550.00 $300.00 $0.047 2.19 1.37 2 Programmable thermostats 7-day, two-stage setback thermostat Manual thermostat Unit ENComm_HVAC 11 80% 4,209.94 $3,903.54 $— $174.76 $40.00 $0.047 13.13 9.03 2, 6 Automated control systems Energy management control systems Manual controls Square Feet ENComm_HVAC 14 80% 1.20 $1.38 $— $0.95 $0.30 $0.047 3.09 1.26 2, 6 Automated control systems Control system reprogramming/optimization Automated control system Square Feet ENComm_HVAC 4 80% 0.75 $0.26 $— $0.15 $0.10 $0.047 1.57 1.21 5, 6 Automated control systems Lodging room occupancy control system Manual controls Room ENComm_HVAC 12 80% 900.00 $901.96 $— $75.00 $50.00 $0.047 7.82 6.43 5, 6 Variable speed fans/pumps Variable speed drive, fan Single speed HVAC system fan HP ENComm_HVAC 15 96% 1,078.29 $1,309.08 $— $187.00 $60.00 $0.047 11.35 5.40 2, 6 Supplement 1: Cost-Effectiveness Idaho Power Company Page 78 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Variable speed fans/pumps Variable speed drive, pump Single speed HVAC system pump HP ENComm_HVAC 15 96% 891.74 $1,082.60 $— $187.00 $60.00 $0.047 10.20 4.64 2, 6 Variable speed controls Variable speed drives Standard motor, 5-200 hp HP ENComm_Misc 10 96% 3,542.00 $2,770.68 $— $187.00 $60.00 $0.047 11.74 7.63 2 Premium windows SHGC of .30 or less and u-factor .30 or less. Standard window Square Feet ENComm_HVAC 30 80% 1.38 $2.72 $— $1.50 $1.50 $0.047 1.39 1.39 2 Efficient windows SHGC of .40 or less and u-factor .42 or less. Standard window Square Feet ENComm_HVAC 30 80% 0.92 $1.81 $— $0.68 $1.00 $0.047 1.39 1.84 2 Window shading Adding window shade screen No screen or other shading Square Feet ENComm_Cooling 10 80% 2.10 $1.99 $— $1.00 $0.50 $0.047 2.66 1.60 2 Reflective roofing Adding reflective roof treatment Non-reflective low pitch roof Square Feet ENComm_Cooling 15 80% 0.40 $0.54 $— $0.32 $0.05 $0.047 6.25 1.51 2 Roof/ceiling insulation Increasing to R24 min insulation Insulation level, R11 or less Square Feet ENComm_HVAC 40 80% 0.92 $2.09 $— $0.83 $0.10 $0.047 11.69 2.30 2 Roof/ceiling insulation Increasing to R38 min insulation Insulation level, R11 or less Square Feet ENComm_HVAC 40 80% 1.46 $3.32 $— $0.95 $0.20 $0.047 9.88 3.04 2 Wall insulation Increase to R11 min insulation Insulation level, R5 or less Square Feet ENComm_HVAC 40 80% 1.04 $2.38 $— $0.62 $0.05 $0.047 19.18 3.45 2 Wall insulation Increase to R19 min insulation Insulation level, R5 or less Square Feet ENComm_HVAC 40 80% 2.44 $5.54 $— $0.74 $0.10 $0.047 20.67 6.09 2 Refrigeration cases Efficient, medium-temp open case Standard medium-temp open case Linear Foot ENComm_Refrigeration 16 96% 148.18 $174.67 $— $100.00 $20.00 $0.047 6.22 1.62 2 Refrigeration cases Efficient, medium-temp reach-in Standard medium-temp open case Linear Foot ENComm_Refrigeration 16 96% 564.94 $665.92 $— $100.00 $100.00 $0.047 5.05 5.05 2 Refrigeration cases Efficient, low-temp reach-in (reach-in) Standard low-temp reach-in Linear Foot ENComm_Refrigeration 16 96% 478.36 $563.87 $— $100.00 $150.00 $0.047 3.14 4.35 2 Refrigeration cases Efficient, low-temp reach-in (open case) Standard low-temp open case Linear Foot ENComm_Refrigeration 16 96% 1,208.00 $1,423.94 $— $100.00 $150.00 $0.047 6.61 8.61 2 Refrigeration cases Efficient, low-temp reach-in (coffin case) Standard low-temp coffin case Linear Foot ENComm_Refrigeration 16 96% 703.42 $829.16 $— $100.00 $55.00 $0.047 9.04 6.06 2 Refrigeration cases Vertical night covers No covers present Linear Foot ENComm_Refrigeration 5 96% 148.00 $58.87 $— $9.00 $9.00 $0.047 3.54 3.54 2 Refrigeration cases Horizontal night covers No covers present Linear Foot ENComm_Refrigeration 5 96% 59.00 $23.47 $— $9.00 $5.00 $0.047 2.90 1.94 2 Refrigeration cases Refrigeration line insulation No insulation present Linear Foot ENComm_Refrigeration 11 96% 17.00 $14.41 $— $2.00 $1.00 $0.047 7.69 5.01 2 Refrigeration cases Door gasket—walk-in No or damaged door gasket Linear Foot ENComm_Refrigeration 4 96% 137.50 $43.70 $— $4.00 $2.00 $0.047 4.96 4.04 2 Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 79 Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Refrigeration cases Door gasket—reach-in Damaged door gasket Linear Foot ENComm_Refrigeration 4 96% 92.50 $29.40 $— $4.00 $1.00 $0.047 5.28 3.43 2 Refrigeration cases Auto-closer—walk-in No or damaged auto closer, low-temp Unit ENComm_Refrigeration 8 96% 2,470.00 $1,554.33 $— $433.00 $50.00 $0.047 8.98 2.80 2 Refrigeration cases Auto-closer—reach-in Damaged auto closer, low-temp Unit ENComm_Refrigeration 8 96% 1,297.00 $816.18 $— $300.00 $50.00 $0.047 7.06 2.23 2 Refrigeration cases Auto-closer—walk-in No or damaged auto closer, med-temp Unit ENComm_Refrigeration 8 96% 1,067.00 $671.45 $— $433.00 $40.00 $0.047 7.15 1.38 2 Refrigeration cases Auto-closer—reach-in Damaged auto closer, med-temp Unit ENComm_Refrigeration 8 96% 243.00 $152.92 $— $125.00 $40.00 $0.047 2.85 1.10 2 Refrigeration cases No-heat glass doors Standard low-temp reach-in Unit ENComm_Refrigeration 12 96% 749.00 $687.45 $— $200.00 $50.00 $0.047 7.75 2.88 2 Refrigeration cases Anti-sweat heat (ASH) controls Low or med-temp case w/out controls Linear Foot ENComm_Refrigeration 8 96% 299.50 $188.47 $— $48.75 $40.00 $0.047 3.35 2.90 7 Vending machines ENERGY STAR vending machine Standard vending machine Unit ENComm_Misc 14 96% 1,472.00 $1,563.31 $— $350.00 $75.00 $0.047 10.41 3.68 2 Vending machines Beverage machine control Vending machine with no sensor Unit ENComm_Misc 14 96% 546.50 $580.40 $— $170.00 $75.00 $0.047 5.53 2.90 2 Vending machines Other cold product control Vending machine with no sensor Unit ENComm_Misc 14 96% 546.50 $580.40 $— $170.00 $50.00 $0.047 7.36 2.92 2 Vending machines Non-cooled snack control Vending machine with no sensor Unit ENComm_Misc 14 96% 382.55 $406.28 $— $170.00 $25.00 $0.047 9.07 2.14 2 Commercial kitchen equipment ENERGY STAR dishwasher Standard dishwasher Unit ENComm_Misc 11 96% 231.00 $197.54 $— $55.00 $15.00 $0.047 7.33 2.95 2 Commercial kitchen equipment Low-temperature dish machine Dish machine w/electric booster kW ENComm_Misc 13 96% 657.86 $654.56 $— $127.00 $75.00 $0.047 5.93 4.03 2 Commercial kitchen equipment ENERGY STAR refrigerator Standard refrigerator Refrigerator ENComm_Misc 13 96% 85.71 $85.28 $— $30.00 $30.00 $0.047 2.41 2.41 2 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 ft3. Refrigerator ENComm_Refrigeration 12 96% 4.25 $3.90 $— $73.62 $75.00 $0.047 0.05 0.05 8, 9 Commercial kitchen equipment Ice maker, up to 200 lbs/day Standard ice maker of the same size Unit ENComm_Misc 10 96% 161.20 $126.10 $— $- $100.00 $0.047 1.13 1.13 10 Commercial kitchen equipment Ice maker, more than 200 lbs/day Standard ice maker of the same size Unit ENComm_Misc 10 96% 596.33 $466.47 $— $- $200.00 $0.047 1.96 1.96 11 Supplement 1: Cost-Effectiveness Idaho Power Company Page 80 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Evaporator fans Evaporator fan controls Med-temp walk-in with no controls Unit ENComm_Refrigeration 5 96% 361.00 $143.59 $— $85.00 $25.00 $0.047 3.28 1.38 2 Evaporator fans Efficient evaporator fan motors Med- or low-temp walk-in Motor ENComm_Refrigeration 10 96% 478.30 $370.92 $— $161.00 $100.00 $0.047 2.91 1.97 2 Evaporator fans ECM case fan motors Standard, shaded-pole fan motors Motor ENComm_Refrigeration 15 96% 477.00 $532.59 $— $96.63 $60.00 $0.047 6.20 4.35 12 Compressors/condensers Efficient, low-temp compressor Standard low-temp compressor Ton ENComm_Refrigeration 15 96% 1,051.00 $1,173.49 $— $132.00 $45.00 $0.047 11.93 6.33 2 Compressors/condensers Efficient, air-cooled condenser Standard air cooled condenser Ton ENComm_Refrigeration 15 96% 410.01 $457.80 $— $140.30 $100.00 $0.047 3.68 2.78 2 Compressors/condensers Efficient, water-cooled condenser Standard air cooled condenser Ton ENComm_Refrigeration 15 96% 559.03 $624.18 $— $209.00 $100.00 $0.047 4.75 2.59 2 Compressors/condensers Efficient, evaporative, condenser Standard air cooled condenser Ton ENComm_Refrigeration 15 96% 678.74 $757.84 $— $278.00 $200.00 $0.047 3.14 2.37 2 Head/suction pressure Floating head pressure controller Standard head pressure control HP ENComm_Refrigeration 15 96% 692.50 $773.21 $— $271.20 $60.00 $0.047 8.02 2.51 13 Head/suction pressure Floating suction pressure Standard suction pressure control HP ENComm_Refrigeration 16 96% 272.91 $321.69 $— $52.48 $10.00 $0.047 13.53 4.86 2 Office equipment PC network power management No central control Unit ENComm_Office 4 96% 99.00 $31.21 $— $13.80 $10.00 $0.047 2.05 1.64 14 Laundry machines High-efficiency washer Standard washer, electric hot water Washer ENComm_Misc 14 96% 287.00 $304.80 $— $195.00 $25.00 $0.047 7.60 1.45 2 Laundry machines High-efficiency, coin-op washer Coin-op washer, electric hot water Washer ENComm_Misc 8 96% 828.00 $525.63 $— $230.07 $200.00 $0.047 2.11 1.88 2 a Average measure life. b Net-to-Gross (NTG) percentage. Idaho Power Demand-Side Management Potential Study by Nexant, Inc., 2009. c Estimated kWh savings measured at the customers meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 Evergreen Consulting Group, LLC. Idaho Power Lighting Tool. 2013. 2 Idaho Power Demand-Side Management Potential Study by Nexant, Inc. IPC DSM Potential - Commercial Model 081209.xlsm. 2009. 3 RTF. ComGroceryDisplayCaseLEDs_v2_2 and ComGroceryCaseLEDs_v1.1.xls. 2013. T12 to LED. Averaged the measures for less than 4 W/ln. ft. and 4-8.5 W/ln. ft. 4 RTF. ComGroceryDisplayCaseLEDs_v2_2 and ComGroceryCaseLEDs_v1.1.xls. 2013. T8 to LED. Averaged the measures for less than 4 W/ln. ft. and 4-8.5 W/ln. ft. 5 Savings and participant costs calculated from Idaho Power engineering estimates and research. Participant costs include total install cost of the measure. 6 Saving values identified by ADM Associates as needing further review in impact evaluation. Will be reviewed and updated in 2014. 7 RTF. ComGroceryAntiSweatHeaters_v2_0.xlsm. 2013. 8 RTF. ComRefrigerator_v3.xlsm. Average solid and glass door. 2012. 9 Measure not cost-effective. Will be removed in 2014. 10 RTF. ComIceMaker_v1_1.xlsx. Average of all ENERGY STAR air-cooled models producing less than 200 lbs/day. Measure deactivated by RTF in 2013. Will review for 2014. 11 RTF. ComIceMaker_v1_1.xlsx. Average of all Energy Star ® air cooled models producing between 200-1000 lbs/day. Measure deactivated by RTF in 2013. Will review for 2014. 12 RTF. ComGroceryDisplayECMs_v2_2.xlsm. 2012. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 81 13 RTF. ComGroceryFHPCSingleCompressor_v1_1.xls. 2012. Averaged the measures for condensing unit and remote condenser low and medium temperature. 14 RTF. NonResNetCompPwrMgt_v3_0.xlsm. 2011. RTF reviewed for 2013 and made savings applicable for schools only. Company will review in 2014. Supplement 1: Cost-Effectiveness Idaho Power Company Page 82 Demand-Side Management 2013 Annual Report This page left blank intentionally. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 83 Irrigation Efficiency Rewards Segment: Irrigation 2013 Program Results Cost Inputs (NPV) Ref Summary of Cost-Effectiveness Results Program Administration ........................................................................ $ 464,746 Test Benefit Cost Ratio Menu $ 965,139 Utility Cost Test .................. $ 15,492,895 $ 2,441,386 6.35 Program Incentives ............................................................................... Custom 1,011,501 1,976,640 I Total Resource Cost Test ... 21,412,767 12,462,677 1.72 Total Utility Cost ................................................................................. $ 2,441,386 P Ratepayer Impact Measure Test ......................... 15,492,895 9,486,348 1.63 Participant Cost Test .......... 17,339,299 14,759,181 1.17 Measure Equipment and Installation Menu $ 2,702,680 (Incremental Participant Cost) .............................................................. Custom 12,056,502 14,759,181 M Net Benefit Inputs (NPV) Ref Assumptions for Levelized Calculations Resource Savings Discount Rate 2013 Annual Gross Energy (kWh)—Menu .................................................... 14,302,824 Nominal (WACC) ................................................................... 7.00% NPV Cumulative Energy (kWh) ..................................................................... 104,701,908 $ 12,692,056 Real ((1 + WACC) / (1 + Escalation)) – 1 ............................... 3.88% 2013 Annual Gross Energy (kWh)—Custom ................................................. 4,208,397 Escalation Rate ......................................................................... 3.00% NPV Cumulative Energy (kWh) ..................................................................... 30,807,007 3,734,452 Net-to-Gross—Custom Option Only & NEB ............................... 75.00% Total Electric Savings .................................................................................... $ 16,426,508 S Average Customer Segment Rate/kWh ..................................... $0.059 Line Losses ............................................................................... 10.90% Participant Bill Savings NPV Cumulative Participant Savings ............................................................ Menu $ 5,771,358 Custom 1,698,138 $ 7,469,496 B Other Benefits Non-Energy Benefits ..................................................................................... Menu $ 3,151,599 Custom 4,741,563 Total Non-Energy Benefits $ 7,893,163 NEB Benefits and Costs Included in Each Test Utility Cost Test ................................ = Menu S + (Custom S * NTG) = P Total Resource Cost Test ................. = Menu S + (Custom S * NTG) + (NEB * NTG) = P + (Menu M - I) +((Custom M - I) * NTG) Ratepayer Impact Measure Test ....... = Menu S +(Custom S * NTG) = P + Menu B + (Custom B * NTG) Participant Cost Test ........................ = B + I + NEB = M Supplement 1: Cost-Effectiveness Idaho Power Company Page 84 Demand-Side Management 2013 Annual Report 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. 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. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 85 Year:2013 Program: Irrigation Efficiency Rewards Market Segment: Irrigation Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Namea Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)b NTGc Annual Gross Energy Savings (kWh/yr)d NPV Avoided Costse Non-Energy Benefit (NEB) Gross Incremental Participant Costf Incentive/ Unit Admin Cost ($/kWh)g UC Ratioh TRC Ratioi 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 IPC_Irrigation 4 100% 40.56 $17.48 $— $6.52 $1.50 $0.025 6.93 2.32 1 Nozzle Replacement New nozzles replacing existing worn nozzles of same flow rate or less Worn nozzle of same flow rate or less Unit IPC_Irrigation 4 100% 40.56 $17.48 $— $2.44 $0.25 $0.025 13.74 5.05 1 Sprinklers Rebuilt or new brass impact sprinklers Unit IPC_Irrigation 5 100% 28.22 $15.12 $— $14.18 $2.75 $0.025 4.37 1.02 1 Levelers Rebuilt wheel line levelers Unit IPC_Irrigation 5 100% 41.68 $22.34 $— $0.93 $0.75 $0.025 12.41 11.28 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 IPC_Irrigation 5 100% 28.00 $15.01 $— $13.66 $2.75 $0.025 4.34 1.04 3 Regulator Replacement New low pressure regulators Unit IPC_Irrigation 5 100% 38.00 $20.36 $— $7.05 $5.00 $0.025 3.41 2.54 3 Gasket Replacement New gaskets for hand lines, wheel lines or portable mainline Unit IPC_Irrigation 5 100% 169.68 $90.93 $— $4.54 $1.00 $0.025 17.24 10.32 1 Hub Replacement New wheel line hubs Unit IPC_Irrigation 10 100% 72.90 $74.04 $— $57.52 $12.00 $0.025 5.35 1.25 1 New Goose Necks New goose neck with drop tube or boomback Outlet IPC_Irrigation 15 100% 14.50 $20.69 $— $4.80 $1.00 $0.025 15.16 4.01 1 Pipe Repair Cut and pipe press or weld repair of leaking hand lines, wheel lines, and portable mainline Joint IPC_Irrigation 8 100% 84.31 $70.22 $— $20.71 $8.00 $0.025 6.94 3.08 1 Gasket Replacement New center pivot base boot gasket Unit IPC_Irrigation 8 100% 1,453.84 $1,210.89 $— $287.59 $125.00 $0.025 7.49 3.73 1 a Available measures in the Irrigation Efficiency Menu Incentive Option. For the Custom Incentive Option, projects are thoroughly reviewed by Idaho Power staff. b Average measure life. c No NTG percentage. Deemed savings from RTF includes realization rate. d Estimated kWh savings measured at the customer’s meter, excluding line losses. e Sum of NPV of avoided costs. Based on end-use load shape; measure life; and savings, including line losses and alternative costs by pricing period as provided in the 2011 Integrated Resource Plan (IRP). f Incremental participant cost prior to customer incentives. g Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. h Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). Supplement 1: Cost-Effectiveness Idaho Power Company Page 86 Demand-Side Management 2013 Annual Report i Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 RTF. AgIrrigationHardware_v3.xlsm. 2013. Three year weighted average customer participation. Applied percentages to RTF measures in Western Idaho (13%), Eastern Washington & Oregon (4%), and Eastern & Southern Idaho (83%). 2 Average costs from customer applications. 3 RTF. IrrgAgSprinklerNozzleFY10v2_1.xls. Western Idaho. 2010. Idaho Power Company Supplement 1: Cost-Effectiveness Demand-Side Management 2013 Annual Report Page 87 Year:2013 Program: Irrigation Efficiency Rewards—Green Motors Market Segment: Irrigation Program Type: Energy Efficiency Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Green Motors Program Rewind Green Motors Program Rewind: Motor size 15HP Standard rewind practice Motor IPC_Irrigation 18 75% 317.00 $519.87 $— $154.35 $30.00 $0.050 9.07 2.86 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 20HP Standard rewind practice Motor IPC_Irrigation 18 75% 425.00 $696.98 $— $172.21 $40.00 $0.050 9.10 3.34 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 25HP Standard rewind practice Motor IPC_Irrigation 17 75% 595.00 $935.11 $— $196.76 $50.00 $0.050 9.38 3.79 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 30HP Standard rewind practice Motor IPC_Irrigation 17 75% 640.00 $1,005.84 $— $216.10 $60.00 $0.050 8.75 3.71 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 40HP Standard rewind practice Motor IPC_Irrigation 17 75% 746.00 $1,172.43 $— $264.09 $80.00 $0.050 8.00 3.55 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 50HP Standard rewind practice Motor IPC_Irrigation 17 75% 802.00 $1,260.44 $— $292.35 $100.00 $0.050 7.20 3.43 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 60HP Standard rewind practice Motor IPC_Irrigation 20 75% 765.00 $1,351.84 $— $344.79 $120.00 $0.050 6.83 3.20 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 70HP Standard rewind practice Motor IPC_Irrigation 20 75% 788.00 $1,392.48 $— $372.69 $150.00 $0.050 5.88 3.03 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 100HP Standard rewind practice Motor IPC_Irrigation 20 75% 1,040.00 $1,837.79 $— $462.33 $200.00 $0.050 5.83 3.18 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 125HP Standard rewind practice Motor IPC_Irrigation 20 75% 1,157.00 $2,044.54 $— $519.23 $250.00 $0.050 5.31 3.13 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 150HP Standard rewind practice Motor IPC_Irrigation 20 75% 1,376.00 $2,431.54 $— $578.37 $300.00 $0.050 5.27 3.29 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 200HP Standard rewind practice Motor IPC_Irrigation 20 75% 1,821.00 $3,217.90 $— $696.28 $400.00 $0.050 5.24 3.54 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 250HP Standard rewind practice Motor IPC_Irrigation 20 75% 2,823.00 $4,988.54 $— $894.90 $500.00 $0.050 6.22 4.17 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 300HP Standard rewind practice Motor IPC_Irrigation 20 75% 3,370.00 $5,955.15 $— $904.58 $600.00 $0.050 6.20 4.71 1 Supplement 1: Cost-Effectiveness Idaho Power Company Page 88 Demand-Side Management 2013 Annual Report Benefit Cost Benefit/Cost Tests Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a NTGb Annual Gross Energy Savings (kWh/yr)c NPV Avoided Costsd Non-Energy Benefit (NEB) Gross Incremental Participant Coste Incentive/ Unit Admin Cost ($/kWh)f UC Ratiog TRC Ratioh Source Green Motors Program Rewind Green Motors Program Rewind: Motor size 350HP Standard rewind practice Motor IPC_Irrigation 20 75% 3,929.00 $6,942.96 $— $948.10 $700.00 $0.050 6.20 5.07 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 400HP Standard rewind practice Motor IPC_Irrigation 20 75% 4,456.00 $7,874.23 $— $1,058.93 $800.00 $0.050 6.16 5.12 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 450HP Standard rewind practice Motor IPC_Irrigation 20 75% 5,003.00 $8,840.83 $— $1,157.49 $900.00 $0.050 6.15 5.22 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 500HP Standard rewind practice Motor IPC_Irrigation 20 75% 5,567.00 $9,837.48 $— $1,250.49 $1,000.00 $0.050 6.16 5.32 1 Green Motors Program Rewind Green Motors Program Rewind: Motor size 600HP Standard rewind practice Motor IPC_Irrigation 20 75% 6,193.00 $10,943.69 $— $1,842.75 $1,200.00 $0.050 5.80 4.33 1 a Average measure life. b Net-to-Gross (NTG) percentage. c Estimated kWh savings measured at the customer’s meter, excluding line losses. d 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 Integrated Resource Plan (IRP). e Incremental participant cost prior to customer incentives. f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2013 actuals. g Utility Cost Ratio = (NPV Avoided Costs * NTG)/((Admin Cost/kWh * kWh Savings ) + Incentives). h Total Resource Cost Ratio = ((NPV Avoided Costs + NEB) * NTG) / ((Admin Cost/kWh * kWh Savings) + Incentives + ((Incremental Participant Cost - Incentives) * NTG)) 1 Regional Technical Forum (RTF). AgGreenMotorRewind_v2_0.xlsm. 2013.