20030113Notice of Application - Order No 29176.pdf

Office of the Secretary
Service Date
January 14, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO IMPLEMENT A
RESIDENTIAL AIR CONDITIONER
CYCLING PILOT PROGRAM AND TARIFF
SCHEDULE 81.
CASE NO. IPC-O2-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT
DEADLINES
ORDER NO. 29176
On December 23 2002, Idaho Power Company filed an Application seeking authority
to institute a Residential Air Conditioner Cycling Pilot Program (AC Cycling Pilot Program or
Program) and implement proposed Tariff Schedule 81. In Idaho Power s 2002 Integrated
Resource Plan (IRP), the Company identified peak resource deficiencies facing its system in
upcoming years. To address those deficiencies, Idaho Power s IRP suggested targeting demand-
side measures that address peak-hour demand reduction. The proposed Program would enable
Idaho Power to begin testing reduction of summer peak loads by directly controlling residential
air conditioning load. This could potentially decrease Idaho Power s overall energy costs, which
would in turn result in savings for all customers. In this Notice the Commission elects to process
this filing under Modified Procedure and establishes written comment deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the AC Cycling Pilot Program is a voluntary
program for residential customers that would enable Idaho Power to directly address summer
peaking requirements by reducing the system s air conditioning load, which is a primary
contributor to the summer peak. Application at 3. The Application describes it as a dispatchable
direct load control program, similar to the dispatch of a peaking generation source, that attempts
to manage capacity. fd. In exchange for an intelligent programmable thermostat installed in
their homes and a monthly monetary incentive, participating customers would voluntarily permit
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176
the Company to cycle their central air conditioners. The two-year Program would begin in the
spring of2003 and expire on September 30, 2004. fd. at 4.
Eligibility and Terms of Participation
YOU ARE FURTHER NOTIFIED that the Program would be offered to residential
customers in Boise and Meridian who are homeowners with central air conditioning. fd. The
AC Cycling Pilot Program will be limited to a total of five hundred customers. Idaho Power
would solicit two hundred customers to participate in the Program the first year and an additional
three hundred customers for the second year. The Application states that 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 Program. fd. The
Company may also solicit participants to fill any vacancies caused by attrition in order to
maintain the participation objectives. The Company would retain the sole right to ultimately
select or reject Program participants. fd.
YOU ARE FURTHER NOTIFIED that participants would receive an intelligent
programmable thermostat from the Company, which would install it and set the thermostat's
initial program. These programmable thermostats 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 no more than 10 weekdays per month in June, July and
August. !d. at 3.
YOU ARE FURTHER NOTIFIED that participants would also receive a $5 credit on
their July, August and September Idaho Power bills for each month that they successfully
participate in the Program. !d. Each participant would be allowed to temporarily "opt out" of
the Program for one day each month after providing Idaho Power with notification by 4:00 p.
the preceding day. !d. at 3-
Termination of Participation
YOU ARE FURTHER NOTIFIED that the Application proposes that the term of
Program participation be from the time the customer signs the participation agreement until
September 30, 2004, unless the customer notifies Idaho Power in writing that the customer does
not desire to continue Program participation. !d. at 4. If a customer notifies the Company that
NOTICE OF APPLICA nON
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176
he/she wishes to cease participating in the Program before completing an entire Air Conditioning
Season (June, July, August), the customer may terminate participation and either return the
thermostat in working condition to the Company within a certain period of time or be charged
$100 for the thermostat. fd. There would be no penalty for terminating participation if a
customer satisfactorily took part in a minimum of one complete Air Conditioning Season.
Funding
YOU ARE FURTHER NOTIFIED that the Application indicates that the Energy
Efficiency Advisory Group ("EEAG") has concurred with the Company s proposal to use
Energy Efficiency Rider funds, collected under Idaho Power Schedule 91 , to finance the
Cycling Pilot Program. fd. at 5. The cost of the Program will be approximately $410 000 per
year for each of the two Program years. fd. Although the AC Cycling Pilot Program may result
in reduced revenues for Idaho Power, the Company s Application indicated that it would not
request recovery of the reduced revenue. fd.
Program Goals
YOU ARE FURTHER NOTIFIED that the goal of the AC Cycling Pilot Program is
to assess the effectiveness of air conditioning thermostat control in reducing peak load. Idaho
Power would also assess customer participation, volunteerism, satisfaction and retention.
Furthermore, Idaho Power would gain operating experience in management of the Program
itself, test the chosen equipment, and evaluate different marketing strategies. Idaho Power
Application states that the Company will include the results of the AC Cycling Program in the
annual report to the Commission detailing the EEAG activities. fd. This report will include the
Company s response to EEAG recommendations, the associated program costs, the DSM
accounting numbers and customer response data.
YOU ARE FURTHER NOTIFIED that the Application indicated that other electricity
providers have reported load reductions of approximately two-kilowatts per household with
similar air conditioner cycling programs. fd. 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 a 200-kilowatt load reduction per cycling episode the first year
and a 500-kilowatt load reduction the second year with full participation.
NOTICE OF APPLICA nON
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176
Procedure
YOU ARE FURTHER NOTIFIED that according to the Application, the Company
believes that the Commission can properly consider the proposal with written submissions rather
than an evidentiary proceeding. fd. at 6. Accordingly, the Company requested that this
Application be processed under Modified Procedure.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-02-13. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case, and that the issues
raised by the Company s filing may be processed under Modified Procedure. In so doing, the
Commission notes that Modified Procedure and written comment have proven to be an effective
means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used.
31.01.01.203.
Reference IDAP A
YOU ARE FURTHER NOTIFIED that if no protests or comments are received
within the deadline, the Commission may consider the matter and enter its Order without
hearing. If protests or comments are filed within the deadline, the Commission will consider
them and may set the matter for hearing or may decide the matter and issue its Order on the basis
of the written positions before it. Reference IDAP A 31.01.01.204.
NOTICE OF COMMENT DEADLINES
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the use of Modified Procedure in Case
No. IPC-02-13 is Friday, February 21, 2003. Reference IDAPA 31.01.01.202.02. Persons
desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that the deadline for Idaho Power Company to
file written reply comments with respect to this case is Friday, February 28, 2003.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176
YOU ARE FURTHER NOTIFIED that written comments concerning this
Application must be mailed to the Idaho Public Utilities Commission and the Idaho Power
Company at the following addresses:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
MONICA MOEN
PETER P. PENGILL Y
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707-0070
Email: mmoen~idahopower.com
ppengill y~idahopo wer. com472 WWASHINGTON ST
BOISE, ID 83702-5983
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.state.id.under the "Comments and Questions
icon. Once at the "Comments and Questions" page fill in the case number as it appears on the
front of this document, and enter your comments. These comments must also be sent to the
Applicant at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that Idaho Power s Application can be viewed
online at www.puc.state.id.by clicking on "File Room" and "Electric Cases " or it can be
viewed during regular business hours at the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho and Idaho Power Company located at 1221 West Idaho Street in
Boise, Idaho (388-2200).
YOU ARE FURTHER NOTIFIED that the 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.
ORDER
IT IS HEREBY ORDERED that the foregoing scheduling be adopted.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3
day of January 2003.
. LKJEU / ER, PRESIDENT--
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
O:IPCE0213 In
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29176