20021223Application.pdf

IDAHO POWER COMPANY
PO BOX 70
BOISE, IDAHO 83707
An IDACORP Company
December 23 , 2002
Ms. Jean D. Jewell , Secretary
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83702-0074
Re:Case No. IPC-02- 1.2
Idaho Power Company s Application For Approval
of Tariff Schedule 81 , Residential Air Conditioner
Cycling Pilot Program
Dear Ms. Jewell:
Monica Moen
Attorney
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Enclosed herewith for filing with the Commission are the original and
seven (7) copies of Idaho Power Company s Application for approval of Tariff
Schedule 81 , the Residential Air Conditioner Cycling Pilot Program. Also enclosed ara
the original and three (3) copies of Tariff Schedule 81.
An original and three (3) copies of the Schedule Index, in both legislative
format and final format, are also enclosed for filing.
I would appreciate it if you would return a stamped copy of this transmittal
letter for our files.
Very truly yours
IDAHO POWER COMPANY
Monica Moen
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Enclosures
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MONICA MOEN ISB #5734
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
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Attorney for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR AUTHORITY TO
IMPLEMENT A RESIDENTIAL AIR
CONDITIONER CYCLING PILOT
PROGRAM.
CASE NO. IPC-02-i.1..-
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or "the Company
and herewith applies to the Idaho Public Utilities Commission ("Commission ) for
authority to institute a Pilot Program to allow Idaho Power residential customers to
participate in the Residential Air Conditioner Cycling Pilot Program ("AC Cycling Pilot
Program" or "Program ) by implementing Tariff Schedule 81. In support of the
Application, Idaho Power submits the following:
INTRODUCTION
The AC Cycling Pilot Program is an optional, supplemental service that
allows participating customers an opportunity to voluntarily permit the Company to cycle
APPLICATION , Page
their central air conditioners in exchange for an intelligent programmable thermostat
installed in their home together with a monthly monetary incentive. The Program is a
two-year dispatchable load control program that will expire on September 30 2004
unless extended by the Company.
Idaho Power is making this filing with the Commission because the
method under which the Company provides electrical service will change for those
residential customers participating in the AC Cycling Pilot Program.
In Idaho Power s 2002 Integrated Resource Plan ("IRP"), the Company
identifies peak resource deficiencies facing Idaho Power s System in upcoming years.
In the IRP, Idaho Power suggests targeting demand-side measures that address peak-
hour demand reduction as a means of addressing those deficiencies. Other utilities
have found direct load control programs to be effective in reducing loads during peak
hours of the summer.
Air conditioning is one of the major loads contributing to summer peak
demands. Idaho Power believes that it will be more productive to focus immediate
attention and programs on this major load that has the greatest likelihood to reduce the
Company s summer peak demand. In the Garnet Report , Idaho Power has identified
the Residential Air Conditioner Load Reduction Pilot Program as a demand response
program that is potentially viable. This Program is a dispatchable direct load control
program that attempts to manage capacity, not energy. Utilization of this load control
program will be similar to dispatch of a peaking generation resource.
APPLICATION , Page 2
II.
PROGRAM DESCRIPTION
The AC Cycling Pilot Program is a voluntary program for residential
customers that will enable Idaho Power Company to directly address summer peaking
requirements by reducing some of the air conditioning load which is one of the primary
loads contributing to the summer peak. The AC Cycling Pilot Program may also offer
additional benefits to Idaho Power, program participants and all of Idaho Power
customers. The Program , through the intelligent programmable thermostat, may reduce
overall energy use by the participating customers, thus reducing their energy bills, and
thereby potentially decreasing Idaho Power s overall energy costs which would in turn
result in a potential savings to all of the Company s customers.
The Program will be offered to residential customers in Boise and
Meridian who are homeowners and who have central air conditioning. Participants will
receive an intelligent programmable thermostat installed in their home by the Company.
Installation will include setting the initial program in the thermostat. The programmable
thermostats utilized for the Program will receive a signal from Idaho Power to initiate
load control when peak load reduction is needed for system reliability or economic
reasons. Air conditioner cycling will be limited to a maximum of four hours per day
between the hours of 1 :00 p.m. and 9:00 p.m. for up to 10 weekdays per month in the
months of June , July and August.
Participants will receive a financial incentive for each month that they
successfully participate in the Program. The incentive will be a $5 credit on their July,
August and September Idaho Power bills. Each participant will be able to temporarily
APPLICATION , Page 3
opt out" of the Program for one day each month after providing Idaho Power with
notification by 4:00 p.m. the preceding day. This Program will be a two-year pilot
program beginning in the spring of 2003 and continuing through the summer of 2004.
The AC Cycling Pilot Program will be limited to a total of five hundred
customers. Two hundred customers would be solicited for participation for the first year
and an additional three hundred customers would be solicited for participation the
second year. The Company may choose to solicit customers for participation based on
their energy usage , physical location, size of home or other factors aimed at creating a
diverse population for the Pilot Program. The Company may also choose to solicit
participants to fill any vacancies caused by attrition in order to maintain the participation
objectives. The Company retains the sole right to ultimately select and reject
participants for the Program.
The term of the agreement for participation in the Program is from the time
the agreement is signed until September 30 2004, unless the customer notifies Idaho
Power in writing that the customer does not desire to continue Program participation. If
a customer notifies the Company before the customer has been on the Program for one
complete Air Conditioning Season (June, July, August) that he/she wishes to terminate
participation in the Program , the customer may terminate participation and will have the
option of either returning the thermostat in working condition to the Company within a
certain time period or be charged $100.00 for the thermostat. There would be no
penalty for terminating participation if a customer satisfactorily took part in a minimum of
one complete Air Conditioning Season.
APPLICATION, Page 4
III.
ACCOUNTING
The Energy Efficiency Advisory Group ("EEAG") has concurred with the
proposal to use Energy Efficiency Rider funds , collected under Idaho Power
Schedule 91 , to finance the AC Cycling Pilot Program. The cost of the Program will be
approximately $410 000 per year for each of the two Program years. Although the AC
Cycling Pilot Program may result in reduced revenues for Idaho Power, the Company
chooses not to request recovery of the reductions.
IV.
PILOT GOALS
The goal of the AC Cycling Pilot Program is to assess the effectiveness of
air conditioning thermostat control in reducing peak load. Idaho Power will also assess
customer participation, volunteerism , satisfaction and retention. The Program will allow
Idaho Power to gain operating experience in management of the Program itself and test
the chosen equipment/technology. This Program will also give Idaho Power an
opportunity to test different marketing strategies.
Other utilities and non-utility electricity providers report load reductions of
approximately two-kilowatts per household with similar air conditioner cycling programs.
Because half of the participant houses will be cycled at anyone time, this number
translates into one-kilowatt load reduction per participant. Idaho Power hopes to
achieve approximately a 200-kilowatt load reduction per cycling episode the first year
and a 500-kilowatt load reduction the second year with full participation.
APPLICATION , Page 5
Idaho Power will include the results of the AC Cycling Pilot Program in the
annual report to the Commission detailing the EEAG activities. This report will include
the Company s response to EEAG recommendations, the associated program costs
the DSM accounting numbers and customer response data.
TARIFFS
Attachment No.1 to this Application is a copy of Idaho Power s proposed
Schedule 81. The Company requests approval of the proposed Tariff with sufficient
lead time to activate this Program by June 2003.
VI.
MODIFIED PROCEDURE
The Company believes that consideration by the Commission of the
proposals contained in this Application does not require an evidentiary proceeding, and
accordingly the Company requests that this Application be processed under RP 201
allowing for consideration of issues under modified procedure, i.e., by written
submissions rather than by an evidentiary hearing.
VII.
NOTICES
Communications with reference to this Application should be sent to the
following:
Monica Moen
Idaho Power Company
O. Box 70
Boise , Idaho 83707
Peter P. Pengilly
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
APPLICATION, Page 6
WHEREFORE, Idaho Power respectfully requests that the Commission
approve the attached proposed Tariff Schedule 81.
DATED this 23rd day of December, 2002.
MONICA MOEN
Attorney for Idaho Power Company
APPLICATION, Page 7
TT A CHMENT
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF 101 ORIGINAL SHEET NO. 81-
SCHEDULE 81
RESIDENTIAL AIR CONDITIONER CYCLING
PilOT PROGRAM
(OPTIONAL)
PURPOSE
The Residential Air Conditioner Cycling Pilot Program is an optional, supplemental service that
permits participating residential Customers an opportunity to voluntarily allow the Company to cycle
their central air conditioners in exchange for an intelligent programmable thermostat installed in their
residence together with a monthly monetary incentive. The Program is a two-year dispatchable load
control program that will expire on September 30,2004, unless extended by the Company.
DEFINITIONS
AC Cvclina is the effect of the Company sending a signal to the intelligent programmable
thermostat installed in the Customer's residence and instructing it to cycle the Central Air Conditioning
compressor for a specified length of time on a percentage basis, to cycle the Central Air Conditioning
compressor until a specified temperature change is attained, or to change the temperature set point
on the thermostat for a specified length of time.
-- _. .
Aareement is the Uniform Residential Air Conditioner Cycling Service Agreement.
Air Conditionina Season is the three-month period that commences on June 1 and continues
through August 31 of each Program Year.
Central Air Conditionina is a home cooling system that is controlled by one centrally located
thermostat that controls one refrigerated air-cooling unit located outside the home.
Cvclina Event is a period during which the Company sends a signal to the intelligent
programmable thermostat installed in the Customer's residence which instructs the thermostat to begin
AC Cycling.
First ProGram Year is the period of June 1, 2003 through August 31, 2003.
Oot Out is the term used to describe the one-day per month during each month of the Air
Conditioning Season in which the Customer, with prior notice to the Company, may choose to
temporarily not participate in AC Cycling.
Second ProGram Year is the period of June 1, 2004 through August 31, 2004.
Termination Date is 12:00 midnight on September 30, 2004.
IDAHO
Issued - December 23, 2002
Effective - January 23, 2003
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF 101 ORIGINAL SHEET NO. 81-
SCHEDULE 81
RESIDENTIAL AIR CONDITIONER CYCLING
PilOT PROGRAM
(OPTIONAL)
(Continued)
AVAILABILITY
Service under this schedule is available on an optional basis to Customers who are homeowners,
have Central Air Conditioning located in their residences and live in the city limits of Boise or Meridian.
Each eligible Customer who chooses to take service under this optional schedule is required to enter
into the Agreement with the Company prior to being served under this schedule. The Agreement will
include giving the Company or its representative permission on reasonable notice to enter the
Customer's residence to install an intelligent programmable thermostat and to allow Idaho Power or its
representative, with prior notice to the Customer, reasonable access to the thermostat following its
installation.
Service under this schedule is limited to no more than two hundred Customers during the First
Program Year and no more than five hundred Customers during the Second Program Year. The
Company may choose to solicit Customers for participation based on Customers' energy usage,
residential location, size of home or other factors aimed at creating a diverse population for the
Program. The Company may also choose to solicit participants to fill any vacancies caused by attrition
in order to maintain the participation objectives. The Company retains the sole right to select and
reject the participants under this schedule.
TERM OF AGREEMENT AND TERMINATION
The term of the Agreement for service under this schedule shall commence on the date the
Agreement is signed and shall terminate on the Termination Date unless otherwise terminated as follows:
1 . A Customer participating in the Program for at least one complete Air Conditioning
Season may terminate the Agreement without penalty by notifying the Company in writing.2. A Customer who terminates the Agreement prior to satisfactorily participating in the
Program for a minimum of one complete Air Conditioning Season shall either (1) return the intelligent
programmable thermostat to the Company in working order within ten days from the time the
Company receives written notice of the Customer's termination of the Agreement or (2) pay the
Company the sum of $100.00, which sum will be included on the Customer's Idaho Power Bill.
PROGRAM DESCRIPTION1. The Company or its representative will uninstall the Customer's existing thermostat and
install an intelligent programmable thermostat in the Customer's residence at the Company s expense.
The Company or its representative will set the initial program on the thermostat.2. A financial incentive of $5 per month for each of the three months of the Air
Conditioning Season will be paid to each Customer who successfully participates in the Program. This
incentive will be paid in the form of a credit on the Customer's monthly bill for each month that the
Customer successfully participates in the Program, beginning with the July bill and ending with the
September bill.
IDAHO
Issued - December 23, 2002
Effective - January 23, 2003
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF 101 ORIGINAL SHEET NO. 81-
SCHEDULE 81
RESIDENTIAL AIR CONDITIONER CYCLING
PilOT PROGRAM
(OPTIONAL)
(Continued)
PROGRAM DESCRIPTION (Continued)3. The Company will send a signal to the programmable thermostats via paging, cell
phone, or capacitor controller technology to initiate a Cycling Event. A Cycling Event may be up to
four hours between the hours of 1 p.m. and 9 p.m. on any weekday during the Air Conditioning Season.
Up to ten Cycling Events may occur each month. Mass memory meters will be installed on each
Customer's residence for program evaluation purposes.4. The Customer may Opt Out of the Program for one day per month during each month of
the Air Conditioning Season provided the Customer notifies the Company of the Customer's intent to
Opt Out prior to 4:00 p.m. on the day preceding the day the Customer wishes to Opt Out.5. If there is evidence of alteration, tampering, or otherwise interfering with the Company
ability to initiate a Cycling Event, the Customer will be required to reimburse the Company for the cost
of replacement or repair of the intelligent programmable thermostat and the Company will reverse any
amounts credited to the Customer's bills during the past twelve months as a result of the Customer's
participation in the Program.
SPECIAL CONDITIONS
The Company is not responsible for any consequential, incidental, punitive, exemplary or indirect
damage to the participating Customer or third parties that results from AC Cycling, from the Customer's
participation in the Program, or of Customer's efforts to reduce energy use while participating in the
Program.
The Company makes no warranty of merchantability or fitness for a particular purpose with
respect to the intelligent programmable thermostat and any and all implied warranties are disclaimed.
The provisions of this schedule do not apply for any time period that the Company interrupts the
Customer's load for a system emergency or any other time that a Customer s service is interrupted by
events outside the control of the Company. The provisions of this schedule will not affect the
calculation or rate of the regular Customer or Energy Charges associated with a Customer's standard
service schedule.
IDAHO
Issued - December 23, 2002
Effective - January 23, 2003
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF 101 ORIGINAL SHEET NO. 81-
SCHEDULE 81
RESIDENTIAL AIR CONDITIONER CYCLING
PilOT PROGRAM
(OPTIONAL)
(Continued)
Uniform Residential Air Conditioner Cycling Service Agreement
ACCOUNT NO.
day of 200---, between
hereinafter called Customer, who resides at
Idaho, hereinafter called Residence, and IDAHO POWER
COMPANY, a corporation with its principal office located at 1221 West Idaho Street, Boise, Idaho,
hereinafter called Company:
THIS AGREEMENT Made this
NOW, THEREFORE, The Parties agree as follows:
1 , With prior reasonable notice from the Company, the Customer shall permit the Company
or its representative to enter the Residence to remove the Customer's existing thermostat and replace
that thermostat by installing an intelligent programmable thermostat selected by the Company
("Programmable Thermostat"2. During the Term of this Agreement and with prior reasonable notice, the Customer
agrees to permit the Company or its representative reasonable access to the Residence and the
Programmable Thermostat for reasons including, but not limited to, collecting data recorded by the
Programmable Thermostat and checking the working condition of the Programmable Thermostat.
The Customer understands and acknowledges that by participating in the Program, the
Company shall, at its sole discretion, have the ability to override the Customer's settings on the
Programmable Thermostat and instruct the Programmable Thermostat to interrupt service and begin
cycling the Customer s central air conditioner compressor (the "Cycling Event"
4. For the Customer s satisfactory participation in the Program, the Company agrees to pay
the Customer $5.00 per month for each of the three months of the Air Conditioning Season for a total
payment of $15.00 (the "Incentive ). The Incentive will be paid in the form of a credit of $5.00 on each
of the Customer's July, August and September Idaho Power bills.5. If the Customer terminates this Agreement prior to the Customer satisfactorily
participating in the Program for a minimum of one complete Air Conditioning Season, the Customer
agrees to either (1) return the intelligent programmable thermostat to the Company in working order
within ten days from the time the Company receives written notice of the Customer's termination of the
Agreement or (2) pay the Company the sum of $100.00, which sum will be included on the Customer
Idaho Power Bill.6. The Company s Schedule 81, any revisions to that schedule, and/or any successor
schedule, is to be considered part of this Agreement.
IDAHO
Issued - December 23, 2002
Effective - January 23, 2003
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF 101 ORIGINAL SHEET NO. 81-
SCHEDULE 81
RESIDENTIAL AIR CONDITIONER CYCLING
PilOT PROGRAM
(OPTIONAL)
(Continued)
Uniform Residential Air Conditioner Cycling Service Agreement
(Continued)7. This Agreement and the rates, terms and conditions of service set forth or incorporated
herein and the respective rights and obligations of the Parties hereunder shall be subject to valid laws
and to the regulatory authority and orders, rules and regulations of the Idaho Public Utilities Commission
and such other administrative bodies having jurisdiction.8. Nothing herein shall be construed as limiting the Idaho Public Utilities Commission from
changing any terms, rates, charges, classification of service or any rules, regulations or conditions
relating to service under this Agreement or construed as affecting the right of the Company or the
Customer to unilaterally make application to the Commission for any such change.9. In any action at law or equity under this Agreement and upon which judgment
rendered, the prevailing Party, as part of such judgment shall be entitled to recover all costs, including
reasonable attorneys fees, incurred on account of such action.
(APPROPRIATE SIGNATURES)
IDAHO
Issued - December 23, 2002
Effective - January 23, 2003
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President Regulatory Affairs
1221 West Idaho Street Boise, Idaho