201604012015 WAQC Report.pdf

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LISA D. NORDSTROM
Lead Counsel
[e-mail]
April 1 ,2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
47 2 W esl Wash i ngton Street
Boise, ldaho 83702
Re: Case No. IPC-E-03-13 - Order No. 29505 Compliance Filing
Weatherization Assisfance for Qualified Customers 2015 Annual Report
Dear Ms. Jewe!!:
Enclosed please find eight (8) copies of ldaho Power Company's Weatherization
Asst'sfance for Qualified Customers 2015 Annual Repoft filed in compliance with Order
No. 29505. lf you have any questions regarding the content of the report, please
contact Kristy Patteson at [phone] or [e-mail].
Very truly yours,
An IDACORP CompanY
8^-C%,*p+"*^-l
Lisa D. Nordstrom
LDN:csb
Enclosures
'1221 W. lclaho St. (83702)
PO. Box 70
Boise, lD 83707
2015
Weatherization Assistance
for Qualified Customers
April 1, 2016
2015 Annual Report
IDAHO
An IDACORP Company
Weatherization Assistance
for Qualified Customers
2015 Annual Report
April 1,2016
Printed on recycled paper
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page i
TABLE OF CONTENTS
Table of Contents ............................................................................................................................. i
List of Tables ................................................................................................................................... i
Description .......................................................................................................................................1
Background ......................................................................................................................................1
Review of Weatherized Homes and Non-Profit Buildings By County ...........................................3
Review of Measures Installed ..........................................................................................................7
Overall Cost-Effectiveness ..............................................................................................................9
Customer Education and Satisfaction ............................................................................................12
Plans for 2016 ................................................................................................................................14

LIST OF TABLES
Table 1 2015 WAQC activities and Idaho Power expenditures by agency and county ............................4
Table 2 2015 WAQC base funding and unspent funds made available .....................................................6
Table 3
2015 WAQC review of measures installed ...................................................................................8
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Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 1
DESCRIPTION
The Weatherization Assistance for Qualified Customers (WAQC) program provides financial
assistance to regional Community Action Partnership (CAP) agencies in Idaho Power’s service
area. This assistance helps fund weatherization costs of electrically heated homes occupied by
qualified customers who have 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 qualified customers who own or rent their
homes. These customers also receive educational materials and ideas on using energy wisely in
their homes. Local CAP agencies determine participant 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 (WAP). In Oregon, Idaho Power offers weatherization
assistance in conjunction with the State of Oregon WAP. 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. This allows CAP agencies to leverage
their federal Low Income Home Energy Assistance Program (LIHEAP) weatherization funds
and serve more customers with special needs.
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Idaho Power has an agreement with each CAP agency for the WAQC program. The agreement
specifies the funding allotment, billing requirements, and program guidelines. Currently,
Idaho Power oversees the program in Idaho through five regional CAP agencies. The five
regional CAP agencies include CCOA—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 Oregon, Community Connection of Northeast
Oregon, Inc. (CCNO), and Community in Action (CINA) provide weatherization services for
qualified customers in Idaho Power’s service area.
Idaho Power provides this Weatherization Assistance for Qualified Customers 2015 Annual
Report in compliance with the Idaho Public Utilities Commission’s (IPUC) Order No. 29505.
This report includes 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 2016
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 3
REVIEW OF WEATHERIZED HOMES AND NON-PROFIT
BUILDINGS BY COUNTY
In 2015, Idaho Power made available a total of $1,325,070 to Idaho CAP agencies. Of the funds
provided, $1,286,911 were paid to Idaho CAP agencies in 2015, while $38,159 were accrued for
future funding. Of the funds paid in 2015, $1,084,710 directly funded audits, energy efficiency
measures, and health and safety measures for qualified customers’ homes (production costs)
in Idaho, and $108,471 funded administration costs to Idaho CAP agencies for those homes
weatherized. Idaho Power funding provided for the weatherization of 225 Idaho homes and
8 Idaho non-profit buildings in 2015. The production cost of the non-profit building
weatherization measures was $85,208, while $8,521 in administrative costs were paid for the
Idaho non-profit building weatherization jobs. In Oregon, Idaho Power paid $30,884 in
production costs for 10 qualified homes and $3,088 in CAP agency administrative costs for
homes in Malheur County. Table 1 shows each CAP agency, the number of homes weatherized,
production costs, the average cost per home, administration payments, and total payments per
county made by Idaho Power.

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Table 1 2015 WAQC activities and Idaho Power expenditures by agency and county
Agency County
Number
of Homes
Production
Cost
Average
Cost1
Administration Payment to
Agency
Total
Payment
CCOA Adams 1 $ 7,394 $ 7,394 $ 739 $ 8,133
Canyon 32 182,874 5,715 18,287 201,162
Gem 2 12,112 6,056 1,211 13,323
Payette 5 24,966 4,993 2,497 27,463
Valley 4 29,952 7,488 2,995 32,947
Washington 3 18,517 6,172 1,852 20,369
Agency Total 47 $ 275,815 $ 5,868 $ 27,581 $ 303,396
EICAP Lemhi 3 11,625 3,875 1,163 12,788
Agency Total 3 $ 11,625 $ 3,875 $ 1,163 $ 12,788
EL ADA Ada 93 435,011 4,678 43,501 478,512
Elmore 10 60,839 6,084 6,084 66,922
Owyhee 4 20,950 5,237 2,095 23,045
Agency Total 107 $ 516,799 $ 4,830 $ 51,680 $ 568,479
SCCAP Blaine 2 9,253 4,626 925 10,178
Gooding 4 21,196 5,299 2,120 23,315
Jerome 8 27,347 3,418 2,735 30,082
Twin Falls 22 104,370 4,744 10,437 114,807
Agency Total 36 $ 162,165 $ 4,505 $ 16,216 $ 178,381
SEICAA Bannock 20 68,204 3,410 6,820 75,025
Bingham 8 33,396 4,174 3,340 36,736
Power 4 16,706 4,176 1,671 18,376
Agency Total 32 $ 118,306 $ 3,697 $ 11,831 $ 130,137
Total Idaho Homes 225 $ 1,084,710 $ 4,821 $ 108,471 $ 1,193,181
Idaho Non-Profit Buildings Ada 2 16,314 – 1,631 17,945
Bannock 1 1,465 – 147 1,612
Bingham 1 9,761 – 976 10,737
Canyon 1 17,607 – 1,761 19,368
Owyhee 2 26,416 – 2,642 29,058
Twin Falls 1 13,645 – 1,364 15,009
Total Idaho Non-Profit Buildings 8 $ 85,208 $ 10,651 $ 8,521 $ 93,729
Total Idaho 233 $ 1,169,918 $ 116,992 $ 1,286,910

Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 5
Table 1 (continued)
Agency County
Number
of Homes
Production
Cost
Average
Cost1
Administration Payment to
Agency
Total
Payment

CCNO Baker 0 – – – –
Agency Total 0 – – – –
CINA Malheur 10 $ 30,884 $ 3,088 $ 3,088 $ 33,973
Agency Total 10 $ 30,884 $ 3,088 $ 3,088 $ 33,973
Total Oregon homes 10 $ 30,884 $ 3,088 $ 3,088 $ 33,973
Total Program 243 $ 1,200,803 $ 120,080 $ 1,320,883
1 Average cost is equal to the production cost divided by the number of homes.
Note: Dollars are rounded.
The base funding for Idaho CAP agencies is $1,212,534 annually, which does not include any
carryover from the previous year. Idaho Power’s agreements with CAP agencies include a
provision that identifies a maximum annual average cost per home up to a dollar amount
specified in the agreement between the CAP agency and Idaho Power. The intent of the
maximum annual average cost is to allow CAP agency flexibility to service some homes with
greater or fewer weatherization needs. It also provides a monitoring tool for Idaho Power to
forecast year-end outcomes. The average cost per home weatherized is calculated by dividing the
total annual Idaho Power production cost of homes weatherized per CAP 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 agencies were allowed under the
2015 agreement was $6,000. In 2015, Idaho CAP agencies had a combined average cost per
home weatherized of $4,821. In Oregon, the average was $3,088 per home weatherized.
There is no maximum annual average cost for the weatherization of buildings occupied by
non-profit agencies.
Weatherization Assistance for Qualified Customers Idaho Power Company
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CAP agency administration fees are equal to 10 percent of Idaho Power’s per-job production
costs. The average administration cost paid to agencies per Idaho home weatherized in 2015 was
$482, and the average administration cost paid to Oregon agencies per Oregon home weatherized
during the same period was $309. Not included in this report’s tables are additional Idaho Power
staff labor, marketing, home verification, and support costs for the WAQC program totaling
approximately $58,000 for 2015. These expenses were in addition to the WAQC program
funding requirements in Idaho specified in IPUC Order No. 29505.
In compliance with IPUC Order No. 29505, WAQC program funds are tracked separately,
with unspent funds carried over and made available to CAP agencies in the following year.
In 2015, $112,536 in unspent funds from 2014 were made available for expenditures in Idaho.
Table 2 details the funding base and available funds from 2014 and the total amount of
2015 spending.
Table 2 2015 WAQC base funding and unspent funds made available
Agency 2015 Base Funding Available Funds from 2014 Total 2015 Allotment Total 2015 Spending
Idaho
CCOA ................................$ 302,259 $ 1,138 $ 303,397 $ 303,397
EICAP ................................12,788 – 12,788 12,788
EL ADA ................................568,479 – 568,479 568,479
SCCAP ................................167,405 56,406 223,811 178,381
SEICAA ................................111,603 $ 21,792 133,395 130,137
Non-profit buildings 50,000 33,200 83,200 93,729
Idaho Total ................................ $ 1,212,534 $ 112,536 $ 1,325,070 $ 1,286,911
Oregon
CCNO ................................$ 6,750 $ 5,572 $ 12,322 $ 0
CINA ................................38,250 – 38,250 33,973
Oregon Total ................................ $ 45,000 $ 5,572 $ 50,572 $ 33,973
Note: Dollars are rounded.
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 7
REVIEW OF MEASURES INSTALLED
Table 3 details home counts for which Idaho Power paid all or a portion of the measure costs
during 2015. The Home Counts column represents the number of times any percentage of that
measure was billed to Idaho Power during the year. If totaled, measure counts would be higher
than total homes weatherized because the number of measures installed in each home varies.
For example, Table 3 shows 59 homes in Idaho received a compact fluorescent lamps (CFL)
measure. Each home received more than one bulb. Consistent with the Idaho WAP, the WAQC
program offers several measures that have costs but do not necessarily save energy or for which
the savings cannot be measured. Included in this category are health and safety measures, vents,
furnace repairs, other, and home energy audits. Health and safety measures are necessary to
ensure weatherization activities do not cause unsafe situations in a customer’s home or
compromise a home’s existing indoor air quality. Other non-energy-saving measures are allowed
under this program because of their interaction with the energy-saving measures. Examples of
items included in the “other” measure category include vapor barriers, dryer vent hoods, and
necessary electrical upgrades. The EA5 energy audit program (EA5) is a software program
approved for use by the United States (US) Department of Energy (DOE). The Idaho Department
of Health and Welfare (IDHW) uses the EA5 for the Idaho WAP and therefore, the Idaho CAP
agency weatherization managers use the EA5. The EA5 includes material costs, labor costs for
installation, agency and contractor support costs, and estimated savings for individual measures.

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Table 3 2015 WAQC review of measures installed
Home Counts Production Costs
Idaho Home and Non-Profit Measures
Windows ................................................................................................142 $ 182,997
Doors ................................................................................................94 62,568
Wall insulation ................................................................17 4,762
Ceiling insulation ................................................................103 75,123
Vents ................................................................................................17 1,136
Floor insulation ................................................................85 85,086
Infiltration ................................................................................................127 30,138
Ducts ................................................................................................52 24,687
Health and safety ................................................................44 16,650
Other ................................................................................................44 13,118
Water heater ................................................................................................7 6,431
Pipes ................................................................................................58 3,271
Refrigerator................................................................................................10 7,948
Furnace tune ................................................................2 791
Furnace repair ................................................................21 17,203
Furnace replace ................................................................160 622,001
CFL ................................................................................................59 3,269
Audit ................................................................................................126 12,740
Total Idaho Homes and Non-Profit Measures $ 1,169,918
Oregon Home Measures
Windows ................................................................................................4 $ 5,914
Doors ................................................................................................3 1,216
Ceiling insulation ................................................................5 6,904
Vents ................................................................................................5 2,048
Floor insulation ................................................................4 7,152
Infiltration ................................................................................................10 2,188
Ducts ................................................................................................4 2,664
Health and safety ................................................................7 2,323
Pipes ................................................................................................1 57
CFL ................................................................................................4 419
Total Oregon Homes Measures $ 30,884
Note: Dollars are rounded.
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 9
Annually, Idaho Power physically verifies approximately 10 percent of the homes weatherized
under the WAQC program. This is done through two methods. The first method includes the
Idaho Power program specialist participating in Idaho’s and Oregon’s state monitoring process
that reviews weatherized homes. The process involves utility representatives; weatherization
personnel from the CAP agencies; Community Action Partnership Association of Idaho, Inc.
(CAPAI); and representatives from the IDHW or Oregon Housing and Community Services
(OHCS) reviewing homes weatherized by each of the CAP agencies.
The second method involves Idaho Power contracting with two companies—The Energy
Auditor, Inc. (The Energy Auditor), and Momentum, LLC (Momentum)—that employ certified
building performance specialists to verify installed measures in customer homes. The Energy
Auditor verifies homes weatherized for the WAQC program in Idaho Power’s eastern and
southern Idaho regions. The owner of The Energy Auditor is certified by Performance Tested
Comfort Systems and is an ENERGY STAR® home performance specialist. Momentum verifies
weatherization services provided through the WAQC program in the Capital and Canyon regions
of Idaho and in the company’s Oregon service area. The owner of Momentum is a Residential
Energy Services Network (RESNET®) certified home energy rater. After these companies verify
installed measures, any required follow-up is done by the CAP agency personnel.
OVERALL COST-EFFECTIVENESS
In customer homes, the Idaho CAP agency weatherization auditor uses the EA5 to conduct the
initial audit of potential energy savings for a home. The EA5 compares the efficiency of the
home prior to weatherization to the efficiency after the proposed improvements and calculates
the value of the efficiency change into a savings-to-investment ratio (SIR). The output of the
Weatherization Assistance for Qualified Customers Idaho Power Company
Page 10 2015 WAQC Annual Report
EA5 SIR is similar to the participant cost test (PCT) ratio. If the EA5 computes an SIR of 1.0 or
higher, the CAP agency is authorized to complete the proposed measures. The weatherization
manager then is able to split production costs between Idaho Power and WAP with a maximum
charge of 85 percent of production costs to Idaho Power.
The program was not cost-effective in 2015, with a total utility cost (UC) benefit-cost (BC) ratio
of 0.54 and a BC ratio from the total resource cost (TRC) perspective of 0.43. In 2015,
Idaho Power claimed an average of 2,263 kilowatt-hour (kWh) per-home or project,
which provides real and substantial savings on a per-unit basis and provides measurable benefits
for the residents. However, due to the costs of comprehensive whole-house weatherization, it is
difficult for the value of the savings to outweigh the costs. WAQC offers several measures that
have costs but do not save energy or for which savings cannot be measured.
In 2014, Idaho Power conducted a billing analysis on 2012 participants’ actual usage data and
applied these results to report savings for 2015 program year projects. The company conducted
the data analysis to increase Idaho Power’s understanding of savings resulting from the program
and to update billing savings provided by a third-party impact evaluation completed in 2012
using 2011 projects. The total claimed estimated savings for 2015 projects were 550,021 kWh,
with 139,590 kWh from single-family homes and 372,360 kWh from manufactured homes.
An additional 38,071 kWh savings resulted from weatherization projects at non-profit sites.
Idaho Power used savings of 1.03 kWh per-square-foot of weatherized heated space for the
eight WAQC non-profit projects in 2015, based on the average decrease in annual energy
intensity from the 2012 single-family homes billing analysis. Conducting a billing analysis on
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 11
non-profit projects is not applicable due to the small number of projects and their lack
of homogeny.
The company plans to continue monitoring realized energy savings from WAQC through
periodic billing analyses. Idaho Power began a new billing analysis in 2015 for completion in
2016. The new analysis will assess current program savings impacts related to increased use of
furnace replacements with heat pumps during the 2013 to 2014 program years. Idaho Power will
use the results for possible program improvement and to understand how different measure
combinations may impact overall household savings.
The Regional Technical Forum (RTF) conducted a billing analysis in 2015 on Idaho Power’s
manufactured-home weatherization projects from 2011 to 2012, and their analysis validated
Idaho Power’s internal analysis completed in 2012. The RTF analysis led to increased
collaboration of statistical software programming and data cleaning recommendations between
RTF contract analyst staff and Idaho Power.
The following recommendations from the IPUC staff’s report and IPUC Order No. 32788 were
used for the 2015 cost-effectiveness analysis:
• Applying a 100-percent net-to-gross (NTG) value to reflect the likelihood that WAQC
weatherization projects would not be initiated without the presence of a program
• Claiming 100 percent of project savings
• Including an allocated portion of the indirect overhead costs
• Applying the 10-percent conservation preference adder
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• Claiming $1 of benefits for each dollar invested in health, safety, and repair measures
• Amortizing evaluation expenses over a three-year period
CUSTOMER EDUCATION AND SATISFACTION
Idaho Power provides materials to each CAP agency to help educate qualified customers who
receive weatherization assistance on using energy efficiently. Included in the materials are copies
of the Idaho Power booklet 30 Simple Things You Can Do to Save Energy and Energy Saving
Tips, which describes energy conservation tips for the heating and cooling seasons, and a
pamphlet that describes the energy-saving benefits of using CFL, light-emitting diodes (LED)
lamps, and other tips for choosing the right bulb. Idaho Power actively informs customers about
WAQC through energy and resource fairs and other customer contacts. Idaho Power’s Customer
Service Center regularly informs customers about the program.
To stay current with new programs and services, Idaho Power attends state and federal energy
assistance/weatherization meetings and other weatherization-specific conferences. Idaho Power
is also active in the Policy Advisory Council, helping advise and direct Idaho’s state
weatherization application for funding to the US DOE.
Idaho Power uses independent, third-party verification companies. Home verifiers ensure the
stated measures were installed in the homes of participating customers and discuss the program
with these customers. Home verifiers visited 28 homes, requesting feedback about the program
in 2015. When asked how much customers learned about saving electricity, 22 customers
answered they learned “a lot” or “some.” When asked how many ways they tried to save
electricity, 25 customers responded “a lot” or “some.”
Idaho Power Company Weatherization Assistance for Qualified Customers
2015 WAQC Annual Report Page 13
As recommended by Johnson Consulting in the 2013 process evaluation, a customer survey was
again used to assess major indicators of customers’ satisfaction throughout the service area.
The 2015 Weatherization Programs Customer Survey was provided to all program participants in
all regions upon completion of weatherization in their homes. Survey questions gathered
information about how customers learned of the program, reasons for participating, how much
customers learned about saving energy in their homes, and the likelihood of household members
changing behaviors to use energy wisely.
Idaho Power received survey results from 211 of the 235 households weatherized by the program
in 2015. Of the 211 surveys received back from customers, 201 were from Idaho customers and
10 were from Oregon customers. Some highlights include the following:
• Almost 46 percent of respondents learned of the program from a friend or relative,
and another almost 22 percent learned of the program from an agency flyer.
Nearly five percent learned about the weatherization program by receiving a letter in
the mail.
• Over 86 percent of the respondents reported that their primary reason for participating in
the weatherization program was to reduce utility bills, and over 44 percent wanted to
improve the comfort of their home.
• Almost 82 percent reported they learned how air leaks affect energy usage, and just over
68 percent indicated they learned how insulation affects energy usage during the
weatherization process. Over 54 percent of respondents said they learned how to use
energy wisely.
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• Over 83 percent reported they were very likely to change habits to save energy, and just
over 82 percent reported they have shared all of the information about energy use with
members of their household.
• Over 93 percent of the respondents reported they think the weatherization they received
will significantly affect the comfort of their home and over 98 percent said they were
very satisfied with the program.
• Over 85 percent of the respondents reported the habit they were most likely to change
was turning off lights when not in use and nearly 65 percent said that washing full loads
of clothes was a habit they were likely to change to save energy. Turning the thermostat
up in the summer was reported by over 51 percent and turning the thermostat down in the
winter was reported by over 66 percent as a habit they and members of the household
were most likely to change to save energy.
A summary of the report is included in the Demand-Side Management 2015 Annual Report
Supplement 2: Evaluation available online at idahopower.com/EnergyEfficiency/reports.cfm.
PLANS FOR 2016
As in previous years, unless directed otherwise, Idaho Power will continue to provide financial
assistance to CAP agencies while exploring changes to improve program delivery and continue
to provide the most benefit possible to special-needs customers while working with Idaho and
Oregon WAP personnel.
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2015 WAQC Annual Report Page 15
Idaho Power will continue to participate in the Idaho and Oregon state monitoring process of
weatherized homes and will continue to verify approximately 10 percent of the homes
weatherized under the WAQC program via certified home-verification companies.
Idaho Power will continue its involvement with the State of Idaho’s Policy Advisory Council
that serves as an oversight group for weatherization activities in Idaho as well as review state
grant applications for federal funding.
Idaho Power plans to selectively market the WAQC program throughout 2016. The program is to
be promoted at resource fairs, community special-needs populations’ service-provider meetings,
and CAP agency functions to reach customers who may benefit from the program.
Additional marketing for this program will be conducted in cooperation with
weatherization managers.
Idaho Power will continue working in partnership with the IDHW, OHCS, CAPAI,
and individual CAP agency personnel to maintain the targets and guidelines and improve the
overall WAQC program.
In 2016, Idaho Power will support the whole-house philosophy of the WAQC program and the
Idaho and Oregon WAP by continuing to contract a $6,000 annual maximum average per-home
cost. Based on the required funding, Idaho Power estimates 192 homes in Idaho and Oregon and
approximately 4 non-profit buildings in Idaho will be weatherized in 2016. In Idaho during 2016,
Idaho Power expects to fund the base amount plus available funds from 2015 to total
approximately $1,251,000 in weatherization measures and agency administration fees. Of this
amount, approximately $39,500 will be provided to the non-profit pooled fund to weatherize
buildings housing non-profit agencies that primarily serve qualified customers in Idaho.
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Service-area wide, Idaho Power will provide the WAQC program approximately $1,313,000 in
funding in 2016 for the weatherization of homes and buildings of non-profit agencies serving
qualified customers.