2000623_sw.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
RANDY LOBB
WORKING FILE

FROM:

DATE: JUNE 23, 2000

RE: CASE NO. IPC-E-00-08 (Idaho Power)
LOW-INCOME WEATHERIZATION PROGRAM—MODIFICATIONS

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. IPCE0008 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 (attached). 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 believes that the low-income weatherization program provides both energy conservation and societal benefits. Staff contends 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 Decision
The Company has requested approval of modifications to its Low-Income Weatherization Program. Staff supports the Company’s Application. Does the Commission agree? If not, what is the Commission’s preference?

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DECISION MEMORANDUM 2