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HomeMy WebLinkAbout200703302006 WAQC (LIWA) report.pdfIDAHO POWE R CID IDAHO POWER COMPANY PO, BOX 70 BOISE, IDAHO 83707 ,. ,.- I . , -' Cr ' An IDACORP Company ~lj:I 1 H:' ) " ; n P :, : ':'; " II"',,u III BARTON L. KLINE Senior Attorney UTI L \l; t~'~::;C March 30, 2007 HAND DELIVERED Ms. Jean D. Jewell Commission Secretary Idaho Public Utilities Commission PO Box 83720 Boise, Idaho 83720-0074 RE:Report of 2006 Weatherization Assistance for Qualified Customers Program Filed in Compliance with Order No. 29505 - Case No. IPC-03- Dear Ms. Jewell Enclosed please find eight copies of Idaho Power Company s report on the 2006 activity for the Weatherization Assistance for Qualified Customers Program. If you have questions regarding the content of the report, please direct them to Mr. Pete Pengilly at 388- 2281. rD-~ Barton L. Kline BLK:ma Enclosures Ric Gale Pete Pengilly Theresa Drake P&RS Files Legal Files ,:oT'~;:;R"::::"C~'" Weatherization Assistance for Qualified Customers 2006 Annual Report -"- ,) ,. - -L-1/c--c.;:J- April?, lOG? Description Weatherization Assistance for Qualified Customers (WAQC) is a program that provides financial assistance to regional Idaho Community Action Partnership (CAP) agencies throughout Idaho Power service territory to help cover the cost for weatherization of electrically heated homes of qualified customers with limited income. The WAQC program also provides a limited pool of funds for weatherization of buildings occupied by non-profit organizations serving primarily special needs populations regardless of heating source, with priority given to those buildings with electric heat. Weatherization improvements enable residents to maintain a more comfortable, safe, and energy efficient home and reduce their monthly electricity bills. Improvements are available at no cost to qualifying applicants who own or rent their homes. These customers also receive educational materials and efficiency ideas for reducing energy use in their homes. Interested customers are qualified by local CAP agencies that use federal and state guidelines annually to qualify residents for energy assistance. Background Idaho Power Company (the Company) began offering Weatherization Assistance in 1989 in conjunction with the State of Idaho Weatherization Assistance Program. Through the WAQC program , the Company provides supplementary funding to state designated CAP agencies for the weatherization of electrically heated homes occupied by qualified customers and buildings occupied by non-profit organizations. Each year, Idaho Power enters into an annual agreement with each CAP agency in which the funding allotment, billing requirements, and program guidelines are detailed. Currently, the Company administers the program in Idaho through five regional CAP agencies including Canyon County Organization on Aging and Community Services (CCOA), Eastern Idaho Community Action Partnership (EICAP), EI- Ada Community Action Partnership (EI - Ada), South Central Community Action Partnership (SCCAP), and South Eastern Idaho Community Action Agency (SEICAA). WAQC has gone through significant changes since its inception in 1989. Most recently, significant program modifications were made in 2004 following the issuance of the Idaho Public Utilities Commission s Order No. 29505 in May, 2004 . These program changes more closely aligned the WAQC program with the State of Idaho s Weatherization Assistance Program specifications and allowed the CAP agencies to more effectively administer the program. In 2006 the WAQC program was again revised to include the installation of Compact Fluorescent Light (CFL) bulbs as an additional energy savings measure. In addition, in order to align the Company s WAQC program with changes made to the State of Idaho Weatherization Program , and at the request of the CAP agencies, Idaho Power increased the annual average job payment twice, first on January 1 and again on October 1. This report responds to the Commission s annual reporting directive with the following sections: Review of Weatherized Homes by County Review of Measures Installed Overall Cost-Effectiveness Customer Education and Advocacy Plans for 2007 Review of Weatherized Homes by County In 2006, the Company provided a total of $1 344 050 to Idaho CAP agencies with $1 186,191 directly funding energy efficient and health and safety measures for qualified customers' homes (production costs), $35,673 directly funding energy efficient measures for non-profit buildings, and $122 186 funding the administration costs incurred by the CAP agencies. The total number of homes weatherized during the year was 538. Two non-profit buildings were also weatherized during 2006. EI-Ada Community Action Partnership Agency completed the most jobs by weatherizing 259 homes of which 242 were located in Ada County. The average cost per home of the 242 homes weatherized in Ada County was 311. South Central Community Action Partnership completed the second most jobs by weatherizing 68 homes in Twin Falls County at an average cost per home of $1 863. Camas, Minidoka, and Lincoln Counties all benefited from the program this year with one home each from Camas and Minidoka Counties and two homes from Lincoln County being weatherized. In Canyon County, CCOA weatherized 67 homes with an average production expense of $2 399. 1 See "2004 & 2005 Annual Report: Weatherization Assistance for Qualified Customers" dated April 1 2006 for details on the program changes made in 2004 and 2005. Table 1 reviews the number of projects, production costs, average cost per home, administration payments , and total payments made by county. Table 1. 2006 Weatherization Activity - Customer Dwellinas and Non-Profit Agencies WEATHERIZATION ASSISTANCE FOR QUALIFIED CUSTOMERS 2006 Weatherization Activities and Expenditures By Agency and County Average Total Payment Cost per Total Payment # of without Home Administration Including Jobs Administration Costs Served Payment Administration Costs Customer Dwellinq Units Agency County CCOA Adams 332 666 $533 865 Boise $14 903 129 $1,490 $16 394 Canyon $160 753 399 $16 075 $176 828 Gem $17 513 502 751 $19,264 Payette $29 766 706 977 $32,743 Valley 774 387 $477 $5,251 Washington 846 423 $285 131 CCOA TOTAL $235,888 $2,407 $23,589 $259,476 EICAP Lemhi $20 716 302 072 $22 788 EICAP TOTAL $20 716 302 072 $22,788 EI - ADA Ada 242 $559 240 311 $55,924 $615,164 Elmore $15 755 626 575 $17 330 Owyhee $25 960 360 596 $28 556 EI - ADA TOTAL 259 $600,955 320 $60 095 $661 ,050 SCCAP Camas 246 246 $225 $2,470 Cassia 607 607 $461 068 Gooding $26,059 $841 606 $28 665 Jerome $53 600 680 360 $58 960 Lincoln 036 018 $804 840 Minidoka $3,846 846 $385 231 Twin Falls $126 658 863 $12 666 $139,324 SCCAP TOTAL 124 $225 052 815 $22 505 $247 557 SEICAA Bannock $59 128 112 913 $65 041 Bingham $30 181 744 $3,018 $33 199 Power $14 271 $1 ,586 427 $15,698 SEICAA TOTAL $103,580 $2,158 $10,358 $113,938 Total Dwelling Units 538 186,191 $2,205 $118,619 $1,304,811 Non-Profit Units Twin Falls $35 673 567 $39 241 Total Non-Profit Units $35,673 $3,567 $39,241 GRAND TOTAL 2006 540 221,865 $122,186 344 051 Note: Numbers presented in the tables may not sum due to rounding. In an effort to help the CAP agencies maximize the number of customers served under WAQC, the Company includes a provision in each of its contracts with the agencies specifying an annual average project or job cost maximum. The Company aligns the job cost maximum with the State of Idaho Weatherization Program. The CAP agencies are required to have a year-end job cost average that is less than , or equal to, the average job cost maximum stated in the agreement. The average job cost is calculated by dividing the total annual production costs of homes weatherized per agency by the total number of jobs completed during the year by that agency. There is no job average limit for weatherization of non-profit buildings. In 2006, the contracted maximum average job cost for the first nine months was $2 304 per home. In October the annual average amount allowed per home was increased to $2 826. During the first 9 months of 2006, where an average of $2 304 per job was allowed, the agencies together averaged $2 193 per job. After October when the average was increased to $2 826 per job , the agencies together averaged $2 278 per job. For the year, the average production cost per home was $2 205. Prior to program restructuring in 2004, the Company paid $75 per job to help offset the administration costs incurred by the CAP agencies. As part of the program restructuring, the Company agreed to pay all CAP agencies an administration cost equivalent to 10% of the amount funded by the Company for each job. The average administration cost per project in 2006 was $220. In compliance with the Commission s Order No. 29505, weatherization assistance funds are tracked and unspent funds carried over and made available to CAP agencies in the following year. Funds may also be transferred from one agency to another to fund shortfalls in allotted funds. In 2006, a total of $215,354 was carried forward from 2005 and a total of $80,000 was transferred between agencies. Table 2 details the contract funding base amount, any carryover funding, the total amount of annual funding available, and interagency fund transfers, for 2004 through 2006 by agency. Table 2 also details the funding levels available to the agencies for 2007 (the funding levels detailed assume continued funding at the level approved by the Commission effective June 1 2004). Table 2. Base and Carryover Funding WEATHERIZATION ASSISTANCE FOR QUALIFIED CUSTOMERS 2004 CONTRACT YEAR (111/04- 12131/04) AGENCY CCOA EICAP EL-ADA SCCAP SEICAA NON PROFIT 2004 BASE FUNDING $198 551 $8,439 $367 709 $110,449 $74,470 250 $795 868 CARRYOVER INCLUDES MONTHS OF NEW FUNDING LEVEL TOTAL 2004 2004 ALLOTMENT EXPENSE $176 551* $150 945 $8,439 $8 439 $367 709 $142 569 $132 449* $109 776 $74,470 $67 651 $36.250 284 $795,868 $495,665 CAP AGENCY DOLLAR TRANSFERS iS22dOOOi $22 000 Totals ~d~m:~~m1f 2005 BASE CARRYOVER TOTAL 2005 2005AGENCYFUNDINGFROM 2004 ALLOTMENT EXPENSE CCOA)$302 259 $25 606 $327 865 $237 578 EICAP $12 788 $12 788 $12 788 EL-ADA $568,479 $225 140 $793 619 $701 048 SCCAP $167,405 $22 673 $190 078 $175 501 SEICAA $111 603 $6,819 $118 422 $116,087 NON PROFIT 000 965 965 382 $1 212 534 $300,203 512 737 $1,297 383 2006 BASE CARRYOVER TOTAL 2006 2006AGENCYFUNDINGFROM 2005 ALLOTMENT EXPENSE CCOA $302 259 $90 287 $312 546*$259 477 (S;80,OOO) EICAP $12 788 $22 788*$22 788 $10 000 EL-ADA $568 479 $92 571 11:""1 r,,':n $661 050"'vv, ,v~v SCCAP $167,405 $14 577 $251 982*$247 557 $70 000 SEICAA $113 938 $113 938 NON PROFIT 583 240 427 888 344 050 2007 BASE CARRYOVER TOTAL 2007FUNDING FROM 2006 ALLOTMENT $302 259 $53 069 $355,328 $12 788 $0 $12 788 $568 479 $0 $568,479$167,405 $4,425 $171 830 $111 603 $0 $111 603 000 343 343 Totals $1 212 534 $83,837 $1 296 371 Total Allotment includes the addition of CAP Agency Dollar Transfer amounts. AGENCY CCOA EICAP EL-ADA SCCAP . SEICAA NON PROFIT Review of Measures Installed Table 3 details the number of jobs, the average cost per building weatherized , and the kilowatt-hour (kWh) savings by measure during 2006. Consistent with the State of Idaho Weatherization Assistance Program , the Company offers several measures that have costs but do not save energy. Included in this category are such elements as health and safety, vents, furnace repair, and audits. Health and safety 5 ' measures are necessary to ensure weatherization activities do not cause unsafe situations in a client's home or compromise a household's existing indoor air quality. The other non-energy savings measures are allowed under this program in order to help facilitate the effective performance of those measures yielding energy savings. The total kWh savings for weatherized homes was 883 097 and 74 927 kWh savings for the two non- profit jobs completed during the year. The total energy savings within Idaho from Weatherization Assistance for Qualified Customers during 2006 was 958,024 kWh. Table 3. 2006 kWh Savings and Measure Expense (excluding Administration) WEATHERIZATION ASSISTANCE FOR QUALIFIED CUSTOMERS 2006 Measure Cost and kWh Savings January 1, 2006 - December 31, 2006 Number of Measure Cost Without Home Measures Jobs Administration kWh Savinas Windows 302 $330 849 193 828 Doors 252 $129 849 458 307 Walls 041 231 Ceilings 299 $178 087 288 510 Vents 320 Floors 189 $146 852 231 641 Infiltration 369 $104 773 239 821 Ducts $16 469 007 Health & Safetv 117 $16 346 Other 131 Water Heater 225 663 61,457 Pipes 157 369 Refrigerator $864 856 Furnace Tune 160 681 Furnace Modify $11 832 29,971 Furnace Repair $18 040 CFL $1,497 448 Furnace Replace 118 $155,597 290,971 Audit Investment 520 $48 664 TOTAL HOME JOBS 538 $1,186,191 883,097 Number of Measure Cost Without Non Profit Measures Jobs Administration kWh Savings Windows 376 721 Doors 070 222 Walls $19,996 45,362 Ceilings $1,410 746 Infiltration 282 876 Health & Safetv $641 Pipes $227 Furnace Repair $47 Audit Investment $624 TOTAL NON-PROFIT JOBS $35,673 927 TOTAL WEATHERIZATIONS JOBS 540 $1,221 865 958,024 Overall Cost-Effectiveness Idaho Power monitors overall cost-effectiveness by requiring each CAP agency to ensure that each efficiency measure as well as each total job has a Savings to Investment Ratio (SIR) of 1.0 or better. The total job SIR reflects all the measure costs associated with the job, including measure costs that have no kWh savings, and compares that total cost to the benefit of the total kWh savings of that job. Under this standard, those jobs with an SIR greater than 1.0 are deemed to be cost-effective. In 2006, all jobs met this cost-effective criterion. Figure 1 shows the frequency distribution of the 2006 jobs funded through WAQC. The frequency observations are presented in 0.25 increments and the SIR values have been rounded to two significant digits. The SIR values for these jobs ranged between 1.03 and 9.24. Frequency Distribution 2006 Idaho SIR Values n=540 100 ::J u.. 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9. "iI-'" O ,.. 1" .", SIR Value II/lax 9.2.1 Figure 1. 81 R Frequency Distribution The figure shows the minimum (1.03) and maximum (9.24) SIR values as well as the mean (2.45), median (2.12), and mode (1.75) of the distribution. The distribution , as expected , is skewed toward the measures of central tendency. However, the close relationship between the median of 2.12 and the mean of 2.45 indicate a fairly compact distribution of SIR values that are not overly influenced by the higher scores in the distribution. Given the required SIR of at least 1., the minimum value of 1.03 in the distribution and the mean of 2.45 indicate the projects conducted by the program continue to exceed the cost effectiveness threshold. In addition to the costs shown on Table 1 , Idaho Power incurs costs for administering this program. In 2006, Idaho Power incurred an additional $111 323 for labor, marketing, and support costs on this program. The totallevelized cost of energy for this program is $0.037/kWh on a Utility Cost basis and $0.056/kWh on a Total Resource Cost basis (including CAP agency and private participant costs) Customer Education and Advocacy The Company provides materials to each CAP agency to assist in the education of special needs customers who receive weatherization assistance. Included in this material is the brochure "Practical Ways to Manage Your Electricity Bill , and Energy Saving Tips" which describes energy conservation tips appropriate for both the heating and cooling seasons. Included in the materials recently is a two-sided card describing savings from the use of CFL bulbs and helpful hints about the bulbs. Stickers are included to remind customers where they can save energy in their home. The educational information is printed in Spanish as well as in large print for ease in reading by seniors. In addition to the materials provided to the CAP agencies, the Company distributes Energy Assistance brochures to all customers each fall describing the program including qualification and application guidelines. Idaho Power also actively informs customers about this program each year through energy, health , and senior fairs. Idaho Power takes an active role in advocating energy efficiency for special needs customers. The Company periodically sponsors Energy Assistance Resource Symposiums where non-profit agencies are encouraged to exchange ideas with utilities and CAP agencies on energy assistance available to customers with limited income. In order to stay up-to-date with new energy assistance programs and services, the program specialist overseeing W AQC attends state and federal energy assistance/weatherization meetings and other weatherization specific conferences such as "Energy Out West" and "Joint Low Income Energy Conferences . Idaho Power is also active in the Policy Advisory Council helping advise and direct Idaho s state weatherization application to the United States Department of Energy. Plans for 2007 The Company will continue working in partnership with the Community Action Partnership Association of Idaho, Inc. (CAPAI)2 as well as individual CAP agency weatherization personnel to maintain the targets guidelines, and cost effectiveness of the WAQC program. In so doing Idaho Power will provide a valuable service to the Company s special needs population. In order to maintain the current level of funding, the Company plans to file a joint application with CAPAI in early 2007 requesting the Commission authorize the continuation of the increased funding for WAQC, as initially approved in May, 2004 through Order No. 29505, beyond June 2007. Based on historical averages , the Company estimates 467 homes and five non-profit buildings will be weatherized in 2007. In total, the Company expects to fund $1 296,371 in weatherization measures and administrative fees for 2007. The Company plans to continually evaluate the need for additional program changes. As in years past, a minimum of five percent of all weatherization jobs submitted for reimbursement will be audited. In addition , plans are underway for the Company to sponsor the 2007 Energy Assistance Resource Symposium this fall in partnership with CAPAI , state agencies, and other utilities. 2 CAPAI is a non-profit organization that sponsors trainings and conferences and serves as an advocate for CAP agencies before the Idaho Legislature.