28438.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF MODIFICATIONS TO THE COMPANY’S LOW INCOME WEATHERIZATION PROGRAM. )
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) CASE NO. IPC-E-00-8

ORDER NO. 28438

On May 12, 2000, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of proposed modifications to its Low-Income Weatherization Program.
Idaho Power Company’s Low-Income Weatherization Program was approved by the Commission in 1989 in Case No. IPC-E-89-6, Order Nos. 22413 and 22478. Since 1989, the program has changed with respect to the participating organizations, the funding level, and the method of recovering program expenditures. The state program is administered by the State of Idaho, Department of Health & Welfare, Division of Welfare, Bureau of Policy, and is operated by six local not-for-profit agencies that are designated subgrantees. The five agencies that the Company presently contracts with in its state of Idaho service territory are El Ada, Inc., South Central Community Action Agency, Canyon County Organization on Aging, Eastern Idaho Special Services Agency, and the SouthEastern Idaho Community Action Agency.
Current information concerning the operation of the Idaho Low-Income Weatherization Program is contained in the 2000 Idaho Weatherization State Plan, which is attached to the Company’s Application. As an adjunct of that plan, Idaho Power has been approached and has agreed to remove restrictions that are contained in the original Low-Income Weatherization Program. The Company therefore requests approval of the following modifications to its Low-Income Weatherization Program.
Removing the requirement that eligible dwellings, additional eligible dwellings, and eligible buildings be primarily heated by electricity.
Eliminating the disallowance of plastic window coverings and of repair/replacement of fossil fuel heating.
Adopting the state’s average cost limitation for program funds of not more than 75% support labor/overhead and not less than 25% material investment average per eligible dwelling installed by the agency.
Adopting the allowance of expenditures for health and safety measures of up to 10% of the average cost per dwelling.
Increasing the required savings-to-investment ratio (SIR) for qualifying energy conservation measures from 1.0 to 1.1 or greater.
Commission Notices of Application and Modified Procedure in Case No. IPCE008 were issued on May 31, 2000. The deadline for filing written comments was June 16. The Commission Staff was the only party to file comments. Staff supports the Company’s low-income weatherization program and recommends approval of the requested program changes.
As reflected in Staff comments, the funding provided by Idaho Power represents approximately 9% of total program funds supporting the program ($212,534 of $2,369,804 for the year 2000). Besides Idaho Power, program funding is provided by Avista, PacifiCorp, the U.S. Department of Energy Low Income Weatherization Program (DOE-LIWP), the U.S. Department of Health and Human Services Low Income Home Energy Assistance Program (LIHEAP) and by Petroleum Violation Escrow (PVE) funds administered by the Idaho Department of Water Resources, Energy Division. The proposed changes, if approved, Staff states, will enable the administering agencies to follow a single set of rules for use of these program funds. Additional funds under separate administrative rules are provided by the Bonneville Power Administration (BPA) directly to four of the six local administering agencies.
Staff in its comments states that the most significant program change proposed in the Company’s Application is removal of the requirement that eligible buildings be electrically heated. Staff suggests that this change should be viewed in the context of Idaho Power’s 9% program funding percentage, that program funds being spent on electric heated homes exceed 9% and that the electric-related energy savings are presumably far more than 9% of total program energy savings. It is Staff’s contention that the low-income weatherization program provides both energy conservation and societal benefits. Staff concludes that the program provides benefit to Idaho Power customers, whether those assisted by the program save electric energy, natural gas, or some other fuel.
COMMISSION FINDINGS
The Commission has reviewed and considered Idaho Power’s Application in Case No. IPC-E-00-8 and the related comments and analysis of the Commission Staff. We continue to support the objectives of the Low-Income Weatherization Program which since inception remain the same, i.e., providing eligible low-income families with energy conservation assistance. Reference Order Nos. 22413, 22478, Case No. IPC-E-89-06. We find that the program with proposed changes will continue to provide benefit to both the Company and its customers. We further acknowledge the program administrative benefits that will result from following a single set of rules. For these reasons we find the proposed modifications to the Company’s Low-Income Weatherization Program to be reasonable.

CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over this matter and Idaho Power Company, an electric utility, pursuant to the authority and power granted under Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.

O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby approve the Company’s Application and proposed modifications to its Low-Income Weatherization Program.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of July 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:IPC-E-00-08_sw

ORDER NO. 28438 1

Office of the Secretary
Service Date
July 10, 2000