201203292011 WAQC Report.pdf

prii IIO
POWER® -
An IDACORP Company
PH 12: 44
JULIA A. HILTON
Corporate Counsel L?A
ihultonidahopower corn
March 29, 2012
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-03-13, Order No. 29505 - Compliance Filing
2011 Annual Report of We atherization Assistance for Qualified
Customers Program
Dear Ms. Jewell:
Enclosed please find eight (8) copies of Idaho Power Company's report on the
2011 activity for the Weatherization Assistance for Qualified Customers program filed in
compliance with Order No. 29505. If you have any questions regarding the content of
the report, please direct them to Pete Pengilly at 388-2281 or Darlene Nemnich at 388-
2505.
Very truly yours,
(~;; -
64—~—
ulia A. Hilton
JAH :csb
Enclosures
cc: Pete Pengilly (w/o ends.)
Darlene Nemnich (w/o ends
RA Files (w/encl.)
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
RECEIVfl IHO NER®
2012.PIAR29 PM 12: f4t+ An IDACORP Company
IDAHO PU.BU UTILITIES COMMS(
Weatheriza tion Assistance
for Qualified Customers
2011 Annual Report
April 1, 2012
Idaho Power Company Weatherization Assistance for Qualified Customers
TABLE OF CONTENTS
Table of Contents 1
Listof Tables ................................................................................................................................... j
List of Figures i
Description....................................................................................................................................... I
Background...................................................................................................................................... 1
Review of Weatherized Homes and Non-Profit Buildings by County............................................ 2
Review of Measures Installed .......................................................................................................... 6
OverallCost-Effectiveness .............................................................................................................. 8
Customer Education and Satisfaction ............................................................................................ 11
Plans for 2012 11
LIST OF TABLES
Table 1
2011 WAQC weatherization activities and Idaho Power expenditures by agency
andcounty ..................................................................................................................................... 3
Table 2
2011 WAQC base and available funds ......................................................................................... 5
Table 3
2011 WAQC review of measures installed 7
LIST OF FIGURES
Figure 1
SIR frequency distribution ............................................................................................................ 9
2011 Annual Report Page i
Weatherization Assistance for Qualified Customers Idaho Power Company
This page left blank intentionally.
Page ii 2011 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 electrically heated homes occupied by
qualified customers with limited incomes. The WAQC program also provides a limited pool of
funds for the weatherization of buildings occupied by non-profit organizations serving primarily
special-needs populations, regardless of heating source, with priority given to buildings with
electric heat. Weatherization improvements enable residents to maintain a more comfortable,
safe, and energy-efficient home while reducing their monthly electricity consumption.
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 further reducing
energy use in their homes. Local CAP agencies determine program eligibility according to
federal and state guidelines.
BACKGROUND
In 1989, Idaho Power began offering weatherization assistance in conjunction with the State of
Idaho Weatherization Assistance Program. Through the WAQC program, Idaho Power 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 that serve special-needs populations
Idaho Power has a WAQC agreement with each CAP agency. The agreement specifies the
funding allotment, billing requirements, and program guidelines. Currently, Idaho Power
oversees the program in Idaho through five regional CAP agencies, including the Canyon County
2011 Annual Report Page 1
Weatherization Assistance for Qualified Customers Idaho Power Company
Organization on Aging, Weatherization, and Human Services (CCOA); Eastern Idaho
Community Action Partnership (EICAP); El-Ada Community Action Partnership (El-Ada);
South Central Community Action Partnership (SCCAP); and Southeastern Idaho Community
Action Agency (SEICAA). In Baker County, Oregon, Community Connection of Northeast
Oregon, Inc. (CCNO), serves Idaho Power customers. Community in Action (CinA)
provides weatherization services for qualified customers in Malheur and Harney counties.
The Weatherization Assistance for Qualified Customers 2011 Annual Report satisfies
the reporting requirements set out in the Idaho Public Utilities Commission's (IPUC)
Order No. 29505 with the inclusion of the following topics:
• Review of Weatherized Homes and Non-Profit Buildings by County
• Review of Measures Installed
• Overall Cost-Effectiveness
• Customer Education and Satisfaction
• Plans for 2012
REVIEW OF WEATHERIZED HOMES AND NON-PROFIT
BUILDINGS BY COUNTY
In 2011, Idaho Power provided a total of $1,228,225 to Idaho CAP agencies,
with $1,056,757 directly funding audits, energy-efficient measures, and health and safety
measures for qualified customers' homes (production costs) and another $105,676 funding the
administration costs incurred by the Idaho CAP agencies for those homes weatherized.
Idaho Power funding provided for the weatherization of 269 Idaho homes and four Idaho
Page 2 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
non-profit buildings in 2011. The cost of those weatherization measures was $59,811. Another
I $5,981 in administrative expenses was paid for those non-profit building weatherization jobs.
In Oregon, Idaho Power provided a total of $43,677 to CAP agencies, including $39,707 in
production costs for 14 homes and $3,970 in administrative costs. Table 1 shows the number of
homes weatherized, production costs, average cost per home, administration payments, and total
payments per county made by Idaho Power.
Table I
2011 WAQC weatherization activities and Idaho Power expenditures by agency and county
Administration
Number Production Average Payment to Total
Agency County of Jobs Costs Cost Agency Payment
Idaho
Homes
CCOA Adams I $3,626 $3,626 $363 $3,989
Boise 4 $20,466 $5,117 $2,047 $22,513
Canyon 40 $169,898 $4,247 $16,990 $186,888
Gem 5 $21,114 $4,223 $2,111 $23,225
Payette 9 $38,970 $4,330 $3,897 $42,867
Valley 2 $11,281 $5,640 $1,128 $12,409
Washington 1 $9,335 $9,335 $933 $10,268
Total 62 $274,690 $4,430 $27,469 $302,159
EICAP Lemhi 3 $11,625 $3,875 $1,163 $12,788
Total 3 $11,625 $3,875 $1,163 $12,788
El-Ada Ada 90 $370,695 $4,119 $37,069 $407,764
Elmore 15 $75,217 $5,014 $7,522 $82,739
Owyhee 14 $70,887 $5,063 $7,089 $77,976
Total 119 $516,799 $4,343 $51,680 $568,479
SCCAP Blame 2 $5,264 $2,632 $526 $5,790
Cassia 4 $9,949 $2,487 $995 $10,944
Gooding 5 $18,019 $3,604 $1,802 $19,821
Jerome 5 $17,434 $3,487 $1,744 $19,178
Lincoln 2 $5,583 $2,791 $558 $6,141
Minidoka 3 $9,863 $3,288 $986 $10,849
Twin Falls 26 $86,074 $3,311 $8,607 $94,681
Total 47 $152,186 $3,238 $15,218 $167,404
2011 Annual Report Page 3
Weatherization Assistance for Qualified Customers Idaho Power Company
Table I (continued)
Administration
Number Production Average Payment to Total
Agency County of Jobs Costs Cost Agency Payment
SEICCA Bannock 23 $60,088 $2,613 $6,009 $66,097
Bingham 10 $25,630 $2,563 $2,563 $28,193
Power 5 $15,739 $3,148 $1,574 $17,313
Total 38 $101,457 $2,670 $10,146 $111,603
Total Homes 269 $1,056,757 $3,928 $105,676 $1,162,433
Non-Profit Buildings Canyon 2 $43,621 $21,810 $4,362 $47,983
Owyhee ----- ---- I Uwyriee 1 6,093 ,092 6O9 $6,702
Power 1 $10,097 $10,097 $1,010 $11,107
Total Non-Profit Buildings 4 $59,811 $14,953 $5,981 $65,792
Idaho Total 273 $1116568 $4090 $111657 $1228225
Oregon
CCNO Baker 2 $5,864 $2,932 $586 $6,450
Total 2 $5,864 $2,932 $586 $6,450
CinA Malheur 12 $33,843 $2,820 $3,384 $37,227
Total 12 $33,843 $2,820 $3,384 $37,227
Oregon Total 14 $39,707 $2,836 $3,970 $43,677
Program Total 287 $1,156,275 $4,029 $115,627 $1,271,902
Note: All amounts are rounded to the nearest dollar.
Idaho Power's agreements with agencies include a provision allowing a maximum annual
average cost per home up to a dollar amount specified in the agreement between the agency and
Idaho Power. 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 billed to Idaho Power during the year. The maximum annual
average cost per home the CAP agency allowed under the 2011 agreement was $5,525. In 2011,
Idaho CAP agencies had a combined average cost per home served of $3,928 Oregon CAP
agencies averaged $2,836 A CAP agency may have an average by county of over $5,525,
however, the maximum annual average applies to the agency's entire service area for the year.
Page 4 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
There is no annual average maximum for the weatherization of buildings occupied by
non-profit agencies
CAP agency administration fees are based on 10 percent of Idaho Power's per-job production
costs. The average administration cost paid to agencies per Idaho home weatherized in 2011 was
$393, and the average administration cost paid to Oregon agencies per Oregon home weatherized
during the same period was $284. Additionally, Idaho Power staff labor, marketing, and support
costs for the WAQC program totaled $52,513 for the year. These expenses were paid in addition
to the WAQC program funding requirements in Idaho of $1,212,534 specified in IPUC
Order No. 29505.
In compliance with Order No. 29505, WAQC program funds are tracked separately,
with unspent Idaho funds carried over and made available to CAP agencies in the following year.
In 2011, $50,000 in unspent funds from 2010 were made available for expenditures in Idaho and
$11,939 were made available in Oregon. Table 2 details the funding base amount, available
funds from 2010, and the total amount of 2011 spending.
Table 2
2011 WAQC base and available funds
Available Funds Total 2011
Idaho Agency Base from 2010 Allotment 2011 Spending
CCOA ........................................................ $302,259 $0 $302,259 $302,159
EICAP ....................................................... $12,788 $0 $12,788 $12,788
El-Ada ....................................................... $568,479 $0 $568,479 $568,479
SCCAP...................................................... $167,405 $0 $167,405 $167,405
SEICAA ..................................................... $111,603 $0 $111,603 $111,603
Non-profit buildings .................................... $50,000 $50,000 $100,000 $65,791
Idaho Total ............................................... $1,212,534 $50,000 $1,262,534 $1,228,225
2011 Annual Report Page 5
Weatherization Assistance for Qualified Customers Idaho Power Company
Table 2 (continued)
Available Funds Total 2011
Oregon Agency Base from 2010 Allotment 2011 Spending
CCNO $6,450 $0 $6,450 $6,450
CinA $36,550 $1,939 $38,489 $37,227
Non-profit buildings $2,000 $10,000 $12,000 $0
Oregon Total $45,000 $11,939 $56,939 $43,677
Note: All amounts are rounded to the nearest dollar.
REVIEW OF MEASURES INSTALLED
The WAQC program realized 2,599,630-kilowatt-hour (kWh) savings from weatherizing homes
in Idaho and Oregon in 2011. In addition, the four buildings housing non-profit agencies
weatherized in Idaho during 2011 saved 184,018 kWh per year for the life of the
measures installed.
Table 3 details job counts in which Idaho Power paid a portion of measure costs and reports the
corresponding kWh savings by individual measure during 2011. The table also shows the life of
each measure as defined in the Energy Audit (EA4) energy audit—the software program
approved for use by the State of Idaho Weatherization Assistance Program. The Job Counts
column represents the number of times any percentage of that measure was billed to Idaho Power
during the year. In reality, measure counts are higher when considering each job because in some
homes the measure was actually installed and billed at 100 percent to the state weatherization
program and not to Idaho Power. In this case, Idaho Power would claim no savings for that
measure. Consistent with the State of Idaho Weatherization Assistance Program, the WAQC
program offers several measures that have costs but do not necessarily save energy or the savings
cannot be measured Included in this category are health and safety measures, vents, furnace
repairs, and home energy audits. Health and safety measures are necessary to ensure
Page 6 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
weatherization activities do not cause unsafe situations in a customer's home or compromise a
household's existing indoor air quality. Other non-energy-saving measures are allowed under
this program because of the interaction between the non-energy-saving measures and the energy
saving measures. Examples of items included in the "other" measure category are solid metal
crossover duct with spray-foam sealant, fire retardant, and tie wire. The EA4 includes material
costs, labor costs for installation, and agency support costs for each measure.
Table 3
2011 WAQC review of measures installed
Idaho Power Portion
Job Production Annual kWh Measure Levelized Costs
Counts Costs Savings Life: Years ($!kWh)
Idaho Job Measures
Windows .................................................... 173 $209,598 495,019 15 $0.043
Doors ......................................................... 188 $119,273 368,770 15 $0.033
Wall insulation ........................................... 17 $13,610 47,893 20 $0.025
Ceiling insulation ....................................... 147 $100,442 278,119 20 $0.032
Vents ......................................................... 24 $1,994 0 n/a n/a
Floor insulation .......................................... 138 $101,708 185,626 20 $0.048
Infiltration ................................................... 210 $120,180 257,999 15 $0.048
Ducts ......................................................... 66 $38,989 237,102 20 $0.014
Health & Safety .......................................... 24 $13,307 0 n/a n/a
Other ......................................................... 2 $428 0 n/a n/a
Water Heater ............................................. 31 $2,679 8,538 10 $0.042
Pipes ......................................................... 44 $3,418 3,421 15 $0.102
Refrigerator ................................................ 1 $270 496 20 $0.048
Furnace Tune ............................................ 3 $3,204 10,557 3 $0108
Furnace Modify .......................................... 4 $9,350 31,365 3 $0.106
Furnace Repair .......................................... 21 $9,157 0 15 n/a
Furnace Replace ....................................... 124 $351,444 684,072 20 $0.045
Compact Florescent Light (CFL) Bulbs 254 3,272 39,698 7 $0.014
Audit Investment 186 $14,245 0 n/a n/a
Total Idaho jobs ........................................................ $1,116,568 2,648,676
2011 Annual Report Page 7
Weatherization Assistance for Qualified Customers Idaho Power Company
Table 3 (continued)
Idaho Power Portion
Job Production Annual kWh Measure Levelized Costs
Counts Costs Savings Life: Years ($ikWh)
Oregon Job Measures
Windows .................................................... 9 $7,054 10,747 15 $0067
Ceiling insulation ....................................... 4 $6,680 41,148 20 $0014
Floor insulation .......................................... 2 $2,672 26,362 20 $0.009
Infiltration ................................................... 5 $4,078 11,545 15 $0.036
Ducts ......................................................... 6 $3,769 12,784 20 $0.026
Water Heater ............................................. I $115 366 10 $0042
Furnace Replace ....................................... 9 $15,339 32,020 20 $0.042
Total Oregon jobs ..................................................... $39,707 134,972
OVERALL COST-EFFECTIVENESS
The cost-effectiveness for the WAQC program is determined using an energy-savings audit
program known as EA4. The EA4 audit program is used by state weatherization programs and is
approved for use by the Department of Energy (DOE). A weatherization auditor uses the EA4 to
conduct the initial audit of a potential home. The EA4 compares the efficiency of measures prior
to weatherization to the efficiency after the proposed improvement. The output of the EA4
savings-to-investment ratio (SIR) is analogous to a benefit/cost (B/C) ratio. If the EA4 computes
a SIR of 1.0 or higher, where the energy-savings benefits of the measures outweigh the cost of
the project, the CAP agency is authorized to complete the proposed measures. In addition to the
individual measure SIR, the entire job is required to show a SIR of 1.0 or higher. The SIR also
accounts for measures that provide no actual savings but are provided for either the health or
safety of the customer or are required to make the other measures with savings more effective.
Idaho Power also assesses cost-effectiveness by calculating the traditional utility cost (UC)
and total resource cost (TRC) B/C ratios Looking at 2011 reported savings and costs, the UC
B/C ratio was 2.67 while the TRC B/C ratio, which accounted for the total cost of installed
Page 8 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
measures, was 1.29. For the complete list of assumptions and inputs into the cost-effectiveness
ratios, refer to the Demand-Side Management 2011 Annual Report, Supplement 1:
Cost-Effectiveness, p. 79.
100

90 2011 SIR Summary

80 Minimum SIR = 1.04

70 Maximum SIR = 8.76
Average SIR = 2.36

60 Median SIR = 2.05
0
C) 50
.0
. 40
Cy
20
10

0 -
0 1 2 3 4 5 6 7 8 9
Savings to Investment Ratio (SIR) Values
Note: One job, with an SIR of 17 8, was excluded from the distribution chart due to a savings calculation error.
Figure 1
SIR frequency distribution
Figure I shows the SIR frequency distribution of the 2011 projects funded through WAQ(.
During 2011. SIR values ranged between a low oil .04 and a high value of 8.76, with a mean
SIR of 2.36. The levelized cost of saved energy in 2011 for the WAQC program is 50.029/kWh
from a tiC perspective and 50.042/kWh from a TRC perspective.
Annually, Idaho Power audits approximately 5 percent of the homes weatherized under the
WAQC program. This includes Idaho Power personnel's participation in the Idaho state peer
review process that reviews weatherized homes as well as through third-party home verifiers.
The Idaho state peer review involves representatives from CAP agencies, Community Action
Partnership Association of Idaho, Inc. (CAPAI), and the Idaho State Department of Health and
2011 Annual Report Page 9
Weatherization Assistance for Qualified Customers Idaho Power Company
Welfare (IDHW) reviewing homes weatherized by each of the other CAP agencies. In 2011,
one electrically heated Idaho Power home was included in the peer review process. Results show
that all CAP agency weatherization departments are weatherizing in accordance with
federal guidelines.
Two companies, The Energy Auditor and Momentum, LLC, employ certified
building-performance specialists to verify installed measures in customer homes in specific
regions for the program. The Energy Auditor verifies homes weatherized for WAQC in
Idaho Power's eastern and southern regions. The owner of The Energy Auditor is certified by
Performance Tested Comfort Systems and is an ENERGY STAR ® Home Performance specialist.
Additionally, the owner is a member of the Radiant Panel Association, US Green Building
Council, and Air Conditioning Contractors of America. Momentum LLC verifies weatherization
services provided through WAQC in the Capital and Canyon regions. The owner of
Momentum LLC is a Residential Energy Services Network (RESNET®) certified Home
Energy Rater.
Information from homes verified in 2011 provides feedback to improve the program as well as
verify that measures have been installed In 2011, verifiers visited 24 homes In three instances, a
verifier found the need for the heating, ventilation, and air conditioning (HVAC) installer to
return to the residence for adjustments on the new heat system and to further educate those
customers about operating their new systems. During the verification process described above,
home verifiers asked customers how much they learned about saving electricity.
Thirteen customers answered that they learned "a lot" or "some." When asked about how many
ways they tried to save electricity, 17 responded "a lot" or "some." Additional home verifications
are in progress to be completed during the first quarter of 2012.
Page 10 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
CUSTOMER EDUCATION AND SATISFACTION
Idaho Power provides materials to each CAP agency to help educate qualified customers who
receive weatherization assistance. Included in the materials are copies of the Idaho Power
brochures Practical Ways to Manage Your Electricity Bill and Energy Saving Tips,
which describe energy conservation tips appropriate for both the heating and cooling seasons,
and two-sided card that describes the energy-saving benefits of using CFL bulbs and helpful
information about using the bulbs. In addition, Idaho Power provides each CAP agency copies of
the book 30 Simple Things You Can Do to Save Energy. Idaho Power also actively informs
customers about weatherization assistance through energy, resource, and senior fairs.
To stay current with new programs and services, the Idaho Power program specialist overseeing
WAQC 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 DOE.
PLANS FOR 2012
Idaho Power will continue working in partnership with the Idaho Department of Health and
Human Services (IDHHS), Oregon Housing and Community Services (OHCS), CAPAI,
and individual CAP agency personnel to maintain the targets, guidelines, and cost-effectiveness
of the WAQC program.
An updated version of the EA4, the EA5, was given interim approval by the DOE for use by the
Idaho State Weathenzation Assistance Program in 2011 The EA5 has mechanical and
2011 Annual Report Page 11
Weatherization Assistance for Qualified Customers Idaho Power Company
architectural measure interaction functionality that will prioritize measures according to the
interacted SIR. The EA5 is being tested and is scheduled for use starting April 2012.
Based on the required funding and the contracted annual average per home cost of $5,525,
Idaho Power estimates 188 homes and six non-profit buildings will be weatherized in Idaho
in 2012. In Oregon, an estimated eight homes and one non-profit building will be weatherized. In
2012, Idaho Power expects to fund $1,246,843 in weatherization measures and agency
administration fees in Idaho, of which $84,200 will be used to weatherize buildings housing
non-profit agencies that primarily serve qualified customers. Through the WAQC program,
Oregon CAP agencies have a budgetary amount of $45,000 to manage weatherization services
for Idaho Power customers. Overall, Idaho Power will provide the WAQC program with over
$1,291,843 in funding for the weathenzation of homes and buildings of non-profit agencies
serving qualified customers.
Idaho Power plans to continually evaluate the need for additional program changes.
The company will continue to participate in the Idaho state peer review process of reviewing
weatherized homes Idaho Power plans to verify a minimum of 5 percent of the homes
weatherized under the WAQC program.
In 2011, Idaho Power reviewed the evaluations conducted by Avista and Rocky Mountain
Power. Idaho Power also provided the requested information to the Applied Public Policy
Research Institute for Study and Evaluation (APPRISE), which is conducting a nationwide
evaluation of low-income weatherization programs for the Oak Ridge National Laboratory and
for the DOE. Idaho Power is planning on conducting its own third-party impact evaluation of the
WAQC program during the fourth quarter of 2012. The final report from this evaluation and the
Page 12 2011 Annual Report
Idaho Power Company Weatherization Assistance for Qualified Customers
results of the national evaluation will be included in the Demand-Side Management 2012 Annual
Report, Supplement 2: Evaluation.
2011 Annual Report Page 13
Weatherization Assistance for Qualified Customers Idaho Power Company
This page left blank intentionally.
Page 14 2011 Annual Report