200904022008 WAQC Program Report.pdf

l?IDA~POR~
An IDACORP Company
LISA D. NORDSTROM
Senior Counsel
April 1, 2009
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-03-13, Order No. 29505 - Compliance Filing
Report of 2008 Weatherization Assistance for Qualified Customers
Program
Dear Ms. Jewell:
Enclosed please find eight (8) copies of Idaho Power Company's report on the
2008 activity for the Weatherization Assistance for Qualified Customers Program filed in
compliance with the above-referenced Order. If you have any questions regarding the
content of the report, please direct them to Pete Pengily at 388-2281 or Courtney
Waites at 388-5612.
Very truly yours,
otiH jlCr~
Lisa D. Nordstrom
LDN:csb
Enclosures
cc: Ric Gale (w/encl.)
Mike Youngblood (w/encl.)
Pete Pengily (w/encl.)
Theresa Drake (w/encl.)
Courtney Waites (w/encl.)
P&RS File (w/encl.)
Legal File (w/encl.)
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. 10 83702
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2008 Annual Report
April 1 ff 2009
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This document printed on recycled paper.
Idaho Power Company Weatherization Assistance for Qualified Customers
TABLE OF CONTENTS
Table of Contents ............................................................................................................................. i
List of Tables ................................................................. .................................................. .... ............ i
List of Figures ...... ......................................................................................... ................................... i
Description ................... ............................ ...................................... .................................................. i
Background .......................................................................................... ............................................ i
Review of Weatherized Homes and Non-Profit Buildings by County............................................2
Review of Measures Installed..........................................................................................................5
Overall Cost-Effectiveness .............................................................................................................. 7
Customer Education, Advocacy, and Satisfaction...........................................................................9
Plans for 2009 ............................................................................................................. ................... i 0
LIST OF TABLES
Table 1
2008 Weatherization Activity-Homes and Non-Profit Buildings ..............................................3
Table 2
Base and Carrover Funding............................................................. ............................................5
Table 3
2008 kWh Savings and Home/Non-Profit Measure Expenses, Excluding Administration..........6
LIST OF FIGURES
Figure 1
SIR Frequency Distribution ..........................................................................................................8
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Weatherization Assistance for Qualified Customers Idaho Power Company
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Pageii 2008 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
DESCRIPTION
The Weatherization Assistance for Qualified Customers (WAQC) program provides financial
assistance to regional Community Action Partnership (CAP) agencies in the Idaho Power service
area. This assistance helps cover weatherization costs of electrcally heated homes belonging to
qualified customers with limited income. The W AQC program also provides a limited pool of
fuds for weatherization of buildings occupied by non-profit organizations serving primarily
special-needs populations, regardless of heating source, with priority given to buildings with
electrc heat. Weatherization improvements enable residents to maintain a more comfortable,
safe,and energy-efficient home while reducing their monthly electrcity consumption.
Improvements are available at no cost to qualifying applicants who own or rent their homes.
These customers also receive educational materials and effciency ideas for fuher reducing
energy use in their homes. Local CAP agencies determine program eligibility according to the
same federal and state guidelines that are used to determine eligibility for energy assistance.
BACKGROUND
In 1989, Idaho Power began offering weatherization assistance in conjunction with the State of
Idaho Weatherization Assistance Program. Through the W AQC program, Idaho Power provides
supplementary funding to state-designated CAP agencies for the weatherization of electrcally
heated homes occupied by qualified customers and buildings occupied by non-profit
organizations that serve special-needs populations. Idaho Power enters into an agreement with
each CAP agency that specifies the funding allotment, biling requirements, and program
guidelines. Curently, Idaho Power administers the program in Idaho through five regional CAP
agencies, including Canyon County Organization on Aging, Weatherization, and Human
2008 Annual Report Page 1
Weatherization Assistance for Qualified Customers Idaho Power Company
Services (CCOA); Eastern Idaho Community Action Partership (EICAP); EI-Ada Community
Action Partership (El-Ada); South Central Community Action Partnership (SCCAP);
and Southeastern Idaho Community Action Agency (SEICAA).
With the following sections, this report satisfies the reporting requirements set out in the Idaho
Public Utilities Commission's (!PUC) Order No. 29505:
· Review of Weatherized Homes and Non-Profit Buildings by County
. Review of Measures Installed
. Overall Cost-Effectiveness
. Customer Education, Advocacy, and Satisfaction
. Plans for 2009
REVIEW OF WEATHERIZED HOMES AND NON-PROFIT
BUILDINGS BY COUNTY
In 2008, Idaho Power provided a total of$I,306,587 to Idaho CAP agencies with $1,143,312
directly fuding audits, energy-efficient measures, and health and safety measures for qualified
customers' homes (production costs), $44,494 directly fuding energy effcient measures and
health and safety measures for non-profit buildings, and $ 118,781 fuding the administration
costs incured by the CAP agencies. The total number of homes weatherized durng the year
was 434. Five non-profit buildings were also weatherized durng 2008. Table i reviews
the number of homes and non-profit buildings weatherized, production costs, average cost per
home or non-profit building served, administration payments, and total payments made by Idaho
Power per county.
Page 2 2008 Annual Report
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Weatherization Assistance for Qualified Customers Idaho Power Company
Table 1
2008 Weatherization Activity-Homes and Non-Profit Buildings (Continued)
Weatherization Assistance for Qualified Customers
2008 Weatherization Activities and Expenditures By Agency and County
Total Payment
Producton Average Cost per Administration Includes
Agency County # of Jobs Costs Home Served Payment Administration
Ada $5,402 $5,402 $540 $5,942
Bannock $2,179 $2,179 $218 $2,397
Gem $22,994 $22,994 $2,299 $25,294
Gooding $6,588 $6,588 $659 $7,247
Twin Falls $7,332 $7,332 $733 $8,065
Non-Profit Buildings Total 5 $4,494 $8,899 $4,449 $48,944
Grand Total 2008 439 $1,187,807 $2,706 $118,781 $1,306,587
In an effort to help the CAP agencies maximize the number of customers served under WAQC,
Idaho Power includes in its agreements with the agencies a provision allowing a maximum
annual average cost per home to an amount specified in the agreement. The average cost per
home served is calculated by dividing the total annual Idaho Power production cost of homes
weatherized per agency by the total number of homes weatherized that the CAP agency biled to
Idaho Power during the year. The maximum annual average cost per home by CAP agency
allowed under the 2008 agreement was $2,826. Overall, in 2008, the CAP agencies had a
combined average cost per home served of $2,634. There is no average cost limit for
weath~rization of non-profit buildings.
During 2008, Idaho Power provided administrative payments totaling $ 118,781 to CAP agencies
to cover their program administration costs. Administration fees are based on 10% of the Idaho
Power production costs. The average administration cost per home weatherized in 2008
was $263, and the administration costs for non-profit buildings weatherized averaged $890.
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Idaho Power Company Weatherization Assistance for Qualified Customers
Additionally, Idaho Power stafflabor, marketing, and support costs for the W AQC program
totaled $69,956 for the year.
In compliance with IPUC's Order No. 29505, weatherization assistance funds are tracked, and
unspent funds are carried over and made available to CAP agencies in the following year.
In 2008, a total of$96,030 was carred forward from 2007. Table 2 details the funding base
amount, any carrover funding, and the total amount of annual funding.
Table 2
Base and Carryover Funding
2008 Year
(111108-12131108)
Carryover Total 2008
Agency Base From 2007 Allotment 2008 Spending
CCOA $302,259 $256 $302,515 $302,177
EICAP $12,788 $0 $12,788 $12,788
EL-ADA $568,479 $95,191 $663,670 $663,670
SCCAP $167,405 $0 $167,405 $167,405
SEICAA $111,603 $0 $111,603 $111,603
Non-Profit Buildings . $50,000 $583 $50,583 $48,944
Totals $1,212,534 $96,030 $1,308,564 $1,306,587
REVIEW OF MEASURES INSTALLED
Table 3 details the measure counts, the production costs of those measures, and the kilowatt-hour
(kWh) savings by measure durng 2008. The measure counts column represents the number of
times each measure was biled to Idaho Power during the year. In reality, measure counts are
higher when considering each home. In some homes, the measure was actually installed and
biled 100% to the state weatherization program and not to Idaho Power. Consistent with
the State of Idaho Weatherization Assistance Program, Idaho Power offers several measures that
2008 Annual Report Page 5
Weatherization Assistance for Qualified Customers Idaho Power Company
have costs, but do not save energy or savings canot be measured. Included in this category are
such elements as health and safety, vents, fuace repair, and home energy audits. Health and
safety 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. Other non-energy
savings measures are allowed under this program in order to help facilitate the effective
performance of those measures yielding energy savings.
Table 3
2008 kWh Savings and Home/Non-Profi Measure Expenses, Excluding Administration
Weatherization Assistance for Qualified Customers
2008 Measure Cost and kWh Savings
1/1/08-12/31/08
Windows 294 $405,598 1,882,095
Doors 276 $163,476 711,749
Wall insulation 10 $5,332 22,938
Ceiling insulation 208 $116,668 225,868
Vents 17 $1,154 0
Floor insulation 148 $116,339 200,400
Infiltration 344 $108,727 416,648
Ducts 59 $16,237 65,760
Health & Safety 7 $966 0
Water Heater 27 $2,199 10,292
Pipes 21 $724 416
Furnace Modify 6 $11,145 23,723
Fumace Repair 9 $2,032 0
Furnace Replace 82 $155,209 325,373
CFL 336 $6,718 49,133
Audit Investment 352 $30,788 0
Total Home Measures 2,196 $1,143,312 3,934,395
Page 6 2008 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customer~
Table 3
2008 kWh Savings and Home/Non-Profit Measure Expenses, Excluding Administration (Continued)
Weatherization Assistance for Qualified Customers
2008 Measure Cost and kWh Savings
1/1/08-12/31/08
Windows $4,835 30,155
Doors 1 $6,099 8,698
Wall insulation 0 $0 0
Ceiling insulation 3 $5,448 20,370
Vents 1 $313 0
Floor insulation 2 $11,633 27,926
Infitration 1 $3,978 9,446
Ducts 3 $9,767 31,064
Health & Safety 2 $169 0
Water Heater 2 $51 1,425
Pipes 3 $327 387
Furnace Modify 0 $0 0
Furnace Repair 1 $378 0
Furnace Replace 1 $119 435
CFL 0 $0 0
Audit Investment 5 $1,378 0
Total Non-Profit Measures 26 $44,494 129,905
Total Home and Non-Profit 2,222 $1,187,806 4,064,300Buildings
Idaho Power's total kWh savings in 2008 for weatherized homes was 3,934,395. The total kWh
savings in 2008 for weatherized non-profit buildings was 129,905. The total energy savings
within Idaho from W AQC during 2008 was 4,064,300 kWh.
OVERALL COST-EFFECTIVENESS
Idaho Power monitors overall cost-effectiveness by requiring each CAP agency to ensure that
each project has a savings to investment ratio (SIR) equal to or greater than i .0. The total
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Weatherization Assistance for Qualified Customers Idaho Power Company
project's SIR reflects all the measure costs associated with the project, including measure costs
that have no kWh savings, and compares that total cost to the benefit of the total kWh savings of
the project. Under this standard, projects with an SIR greater than 1.0 are deemed to be
cost-effective by the energy audit program used by the State of Idaho.
Figure 1
SIR Frequency Distribution
80
70
60
..50c::0U..40uCL'õ..30i:
20
10
0
2008 SIR Summary
Minimum SIR = 1.04
Maximum SIR = 12.40
Average SIR = 2.95
Median SIR = 2.77
I
o 1 2 3 4 5 6 7 9 10 11 128
Savings to Investment Ratio (SIR) Values
Figure 1 shows the SIR frequency distrbution of the 2008 projects funded through WAQC.
Durng 2008, SIR values ranged between 1.04 and a high project value of 12.40 with a mean SIR
of2.95. The 25-year levelized cost of saved energy in 2008 for the WAQC program is
$0.025/kWh from a utility cost perspective and $0.032/kWh from a total resource cost
perspective.
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Idaho Power Company Weatherization Assistance for Qualified Customers
CUSTOMER EDUCATION, ADVOCACY, AND SATISFACTION
Idaho Power provides materials to each CAP agency to assist in the education of special needs
customers who receive weatherization assistance. Included in this material are the Idaho Power
brochures Practical Ways to Manage Your Electricity Bil, and Energy Saving Tips, which
describe energy conservation tips appropriate for both the heating and cooling seasons.
Included in the materials is a two-sided card describing the energy-saving benefits of using
compact fluorescent light (CFL) bulbs and helpful hints about using the bulbs. The educational
information is available in Spanish and in large print versions.
In addition to the materials provided to the CAP agency weatherization offices and energy
assistance offces, each autumn Idaho Power distributes to all customers Energy Assistance
brochures describing eligibility guidelines and application locations. Idaho Power also actively
informs customers about the program through energy, health, and senior fairs.
In order to stay current with new programs and services, the Idaho Power program specialist
overseeing W AQC attends state and federal energy assistance/weatherization meetings and other
weatherization-specific conferences, such as the National Energy and Utility Affordability
Conference. Idaho Power is also active in the Policy Advisory Council, helping advise and direct
Idaho's state weatherization application to the United States Departent of Energy, and the
Idaho State Low Income Home Energy Assistance Program (LIHEAP) Collaborative
Workgroup.
During 2008, the WAQC program's Idaho customers were sureyed to measure their opinion of
how the program would help keep their homes comfortable, how much they leared about saving
electricity durng the weatherization process, and about their energy-saving behavior changes.
2008 Annual Report Page 9
Weatherization Assistance for Qualified Customers Idaho Power Company
Survey respondents were categorized into age groups. Results indicated 21 % of the respondents
were between 18 to 40 years-old, 44% were between 4 i to 70 years-old, and 35% were over
70 years-old.
Of357 sureys mailed in 2008, 104 Idaho customers retued questionnaires. Over 92% reported
thinking the program would help keep their homes a lot more comfortable or somewhat more
comfortable. Eighty-six percent reported learing a lot or some about saving electrcity durng
the weatherization process. Over 97% responded that they had tred a lot or some ways to save
electricity in their home.
PLANS FOR 2009
Idaho Power wil continue working in parership with the Idaho Departent of Health and
Welfare (IDHW), Community Action Partership Association of Idaho (CAP AI), and individual
CAP agency personnel to maintain the targets, guidelines, and cost-effectiveness ofthe WAQC
program. In so doing, Idaho Power wil provide a valuable service to its special-needs
population.
Idaho Power estimates 343 homes and 5 non-profit buildings wil be weatherized in 2009 with an
annual average cost of$3,055 per home. In 2009, Idaho Power expects to fund $1,214,511 in
weatherization measures and administration fees, of which $51,640 wil be used to weatherize
buildings housing non-profit agencies who serve primarily special needs customers. Idaho Power
plans to continually evaluate the need for additional program changes. As in years past,
a minimum of 5% of all weatherized homes submitted for reimbursement wil be audited.
Page 10 2008 Annual Report