20041004Low Income Assistance Program Report.pdf

IDAHO
POWER
IDAHO POWER COMPANY
O. BOX 70
BOISE, IDAHO 83707
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MAGGIE BRILZ ; i T!i ~;
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mbrilz (w idahopower.comDirector, Pricing
October 1 2004
Ms. Jean Jewell, Secretary
Idaho Public Utilities Commission
P. O. Box 83720
Boise, ID 83720-0074
RE:Report Regarding Changes to the
Low-Income Weatherization Assistance Program (LlWA) per
Order No. 29505 (Case No. IPC-03-13)
Dear Ms. Jewell:
The Commission s Order No. 29505 directed Idaho Power to file a report
with the Commission at the conclusion of its negotiations with CAP AI providing details
and explanations of its LlW A program changes. Enclosed are seven copies of the
Company s report detailing the revised program structure. If you have any questions
please feel free to contact me.
Sincerely,
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Maggie Brilz
MB:mb
Enclosures
Ric Gale
Darlene Nemnich
P&RS/Legal files
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An IDACORP Company
LOW - INCOME WEATHERIZATION
ASSISTANCE PROGRAM
(LIW A)
October 1 2004
Background
In response to the Commission s directive in Order No. 29505 to increase
payments to CAP agencies by $1 million, Idaho Power Company entered into discussions
with the Community Action Partnership Association of Idaho (CAP AI) and its member
agencies to determine necessary changes to the Low Income Weatherization Assistance
(LIW A) program. A series of structural changes to the program were agreed upon by all
parties, resulting in an amended contract between Idaho Power Company and each
agency that provides services to the Company s Idaho customers.
The contractual funding level for each agency was increased effective June 1
2004. The Energy Efficiency Advisory Group was briefed on the proposed program
changes on July 14, 2004 and given an opportunity to provide feedback about those
changes. No substantive issues regarding the agreed-upon changes were raised.
Structural changes to the program, as outlined below, were implemented on August 1
2004.
Program Description
Requests for LIW A funding will be limited to the weatherization of qualified
low-income homes heated primarily with electricity. In an effort to align the LIW
program with the Department of Energy (DOE) weatherization program, all DOE-
allowed measures will be funded, provided the Savings-to-Investment Ratio (SIR) for
each efficiency measure is 1.0 or greater and the SIR of the entire job, exclusive of
administrative fees, is 1.0 or greater. The SIR calculation will be based on an average
fuel price provided by Idaho Power that reflects rates authorized by the Idaho Public
Utilities Commission (IPUC).
The cost of health and safety measures installed to protect the effectiveness of
installed weatherizaton measures is not to exceed 15% of the annual cost of the total jobs
for any given agency. Each job is to include a minimum DOE investment of 15% of the
total job cost, exclusive of administrative fees. In addition, each agency is to limit the
annual average LIW A contribution to no more than $2 000 per job. The average job cap
will be updated annually using the adjustment factor employed by DOE in its annual
modification of average job size.
Administrative fees equal to 10% of the cost of each job will be eligible for
reimbursement using LIW A funds. All administrative fees will be included in the
contracted amount allocated annually to each agency. In addition, through June 1, 2007,
any funds remaining at the end of the contract year may be rolled over into the following
year s contract for that agency. An agency is allowed to shift any of its contracted
funding remaining at the end of the year to another agency, subject to approval by the
other agency and Idaho Power Company and provided those funds are used in accordance
with LIW A guidelines.
In addition to the funding made available to each agency for weatherization of
low-income homes, a pool of funds will be available for the weatherizatin of buildings
occupied by non-profit organizations. In order to receive funding, these organizations
must receive electric service from Idaho Power, serve primarily low-income clientele
and have Section 501(c)(3) tax-exempt status under the Internal Revenue Code. The total
cost of weatherization measures is eligible for reimbursement using LIW A funds.
Buildings occupied by non-profit organizations do not need to be heated primarily with
electricity in order to receive LIW A funds.
A minimum of five percent of the jobs receiving LIW A funding will be submitted
for inspection. As part of its participation in LIW A, each agency will conduct client
education and distribute copies of the "Energy Planner" provided by Idaho Power to
residents and occupants of homes and buildings in which measures are installed.
In order to meet the reporting requirements outlined in Order No. 29505, the
agencies are to provide Idaho Power Company with a summary of activity no later than
February 15th of the each year.