20040206Application.pdf

MONICA MOEN ISB #5734
Idaho Power Company
O. Box 70
Boise , Idaho 83707
Telephone No. [phone]
FAX Telephone No. [phone]
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Attorney for Idaho Power Company
Street Address for Express Mail
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR AUTHORITY TO
IMPLEMENT AN IRRIGATION PEAK
CLIPPING PILOT PROGRAM
CASE NO. IPC-04-
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or "the Company
and, pursuant to IPUC Rule of Procedure 52 , herewith applies to the Idaho Public
Utilities Commission ("I PUC" or the "Commission ) for authority to institute a Pilot
Program to permit Idaho Power irrigation customers to participate in the Company
proposed Irrigation Peak Clipping Pilot Program ("Pilot Program" or the "Program ) by
implementing Tariff Schedule 23 ("Tariff" or "Schedule 23"). In support of the
Application , Idaho Power submits the following:
APPLICATION, Page
INTRODUCTION
The purpose of the proposed Pilot Program is to turn off power to selected
irrigation pumps during peak weekday hours ("Load Reduction Event") in the summer
months in order to produce a decrease in the Company s system summer peak. The
proposed Program would be an optional , supplemental service that would permit the
Company s irrigation customers to allow the Company to turn off the power to all pumps
behind an Idaho Power metered service point ("Metered Service Point") on a regular
basis with the use of electric switches ("Timer ). In exchange for allowing the Company
to turn off power to these pumps, participating customers would receive a monthly
monetary incentive paid on the basis of the number of kilowatts of load reduction.
The Program would be piloted in the 2004 irrigation season and would
expire on October 1 , 2004, unless extended by the Company. Idaho Power is making
this tariff filing with the Commission because the method under which the Company
presently provides electrical service would change for those irrigation customers
participating in the Pilot Program.
In Idaho Power s 2002 Integrated Resource Plan ("IRP"), the Company
identified peak resource deficiencies facing Idaho Power s system in upcoming years.
In the IRP, Idaho Power indicated that it would target demand-side measures that
address peak-hour demand reduction as a means of addressing those deficiencies.
The irrigation summer load is a major portion of the Company s summer peak demand.
The Company believes that the Irrigation Peak Clipping Pilot Program would be a
APPLICATION , Page 2
demand response program that could potentially reduce peak-hour demand by
attempting to manage capacity instead of energy.
The customers targeted for participation in the Program are those who
determine they can have power turned off to pumps for four hours per week during the
calendar months of June , July, and August without impacting crop yield, the choice of
crop planted , or the design of the irrigation system. Idaho Power has taken the hot, dry
climate of the Company s service territory into consideration in the design of the
Program by limiting the number of hours of interruption per week to four. Based
input received from various customers, four hours of interruption per week appears to
be a reasonable amount of interruption that can be accommodated without
necessitating a change in the type of crop planted , altering the crop yield , or requiring a
redesign of the irrigation system.
In proposing the Program , the Company does not wish to create an
incentive for irrigators to oversize their systems ih order to better manage a multi-hour
load reduction. Over sizing irrigation systems to compensate for the reduction of water
applied during the load reduction period would result in a higher peak demand on the
irrigator s system during all other periods and would negate the benefits of the Program.
Because of the water requirements of the crops grown in southern Idaho, the Company
fully expects that, in almost all situations, the energy consumption curtailed during the
four-hour period of interruption will be consumed either prior to or following the
interruption resulting in no energy reduction for the customer.
APPLICATION , Page 3
II.
PROGRAM DESCRIPTION
The Irrigation Peak Clipping Pilot Program would be a voluntary program
for irrigation customers that would enable Idaho Power Company to directly address
summer peaking requirements by reducing some of the irrigation load which contributes
to Idaho Power s summer peak. The Company would install a Timer or Timers on the
customer s electrical panel(s) that services one or more irrigation pumps in order to turn
off all of the load to that Metered Service Point. The Company would program the
Timers to interrupt electrical service to the irrigation pump(s) on one regularly scheduled
weekday per week for a four-hour period between 4 p.m. and 8 p.m. These are the
hours in which the daily summer peak demand normally occurs. Approximately one-fifth
of the total load reduction capacity enrolled in the Program would be scheduled for turn
off each weekday during the months of June, July, and August of the 2004 irrigation
season. The load reduction provided by each participant will be deemed to equal the
Billing Demand for the enrolled Metered Service Point for the applicable billing period.
Participants would receive a financial incentive for each month they
successfully participate in the Program. The incentive would be calculated by
multiplying $1.75 by the Billing Demand for the Metered Service Point that is enrolled in
the Program (the "Incentive ). The Incentive may be prorated for the months of June
July and August depending on the irrigation customer s billing cycle.
Service under the proposed Schedule 23 would be available on an
optional basis to the Company s irrigation customers with a Metered Service Point or
Points receiving service under Idaho Power s Schedule 24 where the Metered Service
APPLICATION , Page 4
Point serves a water pumping or water delivery system used to irrigate agricultural
crops or pasturage. If a Metered Service Point provides electricity to more than one
irrigation pump, each pump will be scheduled for interruption on the same weekday
cycle. The Company would retain the sole right to select the load reduction weekday for
each Metered Service Point. Metered Service Points eligible for this Program must
provide electric service to irrigation pumps with at least 150 cumulative horsepower.
The Company will make this optional service available to up to 50
customers in each of four areas of Idaho Power s service territory. Customers will be
selected from (1) the Kuna , Melba, and Nampa area, (2) the Mountain Home , Bruneau
Grand View area, (3) the Rupert, Paul area, and (4) the American Falls area of Idaho
Power s service territory. A total of not more than 200 customers would be selected for
this Pilot Program. The Company may also choose to solicit participants to fill any
vacancies caused by attrition in order to maintain the participation objectives.
Each eligible customer who chooses to participate in this optional Program
would be required to enter into a Uniform Irrigation Peak Clipping Service Application
Agreement ("Agreement") with the Company prior to being accepted into this Program.
By entering into the Agreement , the customer would agree, with prior notice, to grant
the Company or its representative permission to enter the customer s property to install
a Timer or Timers on the electrical panel servicing the irrigation equipment that is
associated with the Metered Service Point that is enrolled in the Program. The
customer must also allow Idaho Power or its representative reasonable access to the
Timer following its installation.
APPLICATION, Page 5
Idaho Power would send potential participants an Agreement and a
worksheet listing a customer s eligible Metered Service Points as soon as possible after
the Commission renders a decision on this case. Customers interested in the Program
would sign and return an Agreement specifying the Metered Service Point(s) to be
enrolled in the Program. Customer participation would be at the Company s sole
discretion.
If a customer is selected for participation in the Program, the Company will
return a signed Agreement to the Customer specifying which Metered Service Point(s)
are accepted into the Program. The Company s goal is to have sufficient time to enroll
customers and install all Timers by June 1 , 2004. Customers may be enrolled in the
Program after June 1 , 2004 to achieve desired participation levels, but no later than
July 1 , 2004.
III.
ACCOUNTING
The Energy Efficiency Advisory Group ("EEAG") has concurred with the
proposal to use Energy Efficiency Rider funds, collected under Idaho Power Schedule
, to finance the Irrigation Peak Clipping Pilot Program. The cost of the Program will
be approximately $294 750 for the one-year Program.
IV.
PILOT GOALS
The goal of the Irrigation Peak Clipping Pilot Program is to assess the
efficacy of using Timers on irrigation pumps to reduce summer peak. In addition , Idaho
Power will assess customer participation, volunteerism, satisfaction , and retention, as
APPLICATION , Page 6
well as monitor any unintended consequences from participation in this Program. The
Program will allow Idaho Power to gain operating experience in management of the
Program itself and test the selected equipment/technology.
Idaho Power will include the results of the Irrigation Peak Clipping
Program in the annual report to the Commission detailing the EEAG activities. This
report will include the Company s response to EEAG recommendations , the associated
program costs, the DSM accounting numbers, and customer response data.
COST -EFFECTIVEN ESS ANALYSIS
Idaho Power performed a cost-effectiveness analysis of the Irrigation Peak
Clipping Program. This analysis was performed for both the Pilot Program and an
assumed fully implemented thirty-year program. The benefit-cost ratio from the
program administrator cost test perspective for the Irrigation Peak Clipping Pilot
Program is 1.28. This same ratio for a fully implemented thirty-year program is 1.62.
Since these ratios are greater than 1., they show that the benefits of the Program
exceed its costs and that the Program , as currently designed , is cost-effective.
The estimated Program costs and Program benefits from peak reduction
and energy shift were based on the Program design. The benefits of avoided costs
were based on the fixed and variable costs of a simple-cycle combustion turbine. The
benefits were discounted 20% for free rider reduction and the uncertainty of the load
reduction.
APPLICATION , Page 7
VI.
TARIFFS
Attachment No.1 to this Application is a copy of Idaho Power s proposed
Schedule 23. The Company requests approval of the proposed Tariff with sufficient
lead time to enable activation of this Pilot Program by June 2004.
VII.
MODIFIED PROCEDURE
The Company believes that consideration by the Commission of the
proposals contained in this Application does not require an evidentiary proceeding and
accordingly, the Company requests that this Application be processed under IPUC Rule
of Procedure 201 allowing for consideration of issues under modified procedure , i.e., by
written submissions rather than by an evidentiary hearing.
VIII.
NOTICES
Communications with reference to this Application should be sent to the
following:
Monica Moen
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Peter P. Pengilly
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
WHEREFORE, Idaho Power respectfully requests that the Commission
approve this Application and the attached proposed Tariff Schedule 23.
APPLICATION , Page 8
DATED this 5th day of February 2004.
MONICA MOEN
Attorney for Idaho Power Company
APPLICATION , Page 9
TT A CHMENT
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF NO. 101 ORIGINAL SHEET NO 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PILOT PROGRAM
(Optional)
PURPOSE
The Irrigation Peak Clipping Pilot Program ("the Program ) is intended to test the viability of
decreasing the Company s system summer peak with the use of electronic timer switches ("Timer ) to
turn off power to selected irrigation equipment during peak weekday hours in the summer months. The
Program is an optional, supplemental service that permits participating irrigation Customers to allow the
Company to turn off the power to specific irrigation equipment on a regular basis with the use of
Timer. In exchange for allowing the Company to turn off power to specified irrigation equipment,
participating Customers will receive a monthly monetary incentive paid on the basis of the kW of load
reduction, as measured by the Customer's Billing Demand, at the Customer's metered service point
("Metered Service Point"). The Program will be piloted during the 2004 irrigation season and will expire
on October 1, 2004, unless extended by the Company.
AVAILABILIN
Service under this schedule is available on an optional basis to Customers with a Metered
Service Point or Points receiving service under Schedule 24 where the Metered Service Point serves a
water pumping or water delivery system used to irrigate agricultural crops or pasturage. If a Metered
Service Point provides electricity to more than one irrigation pump, each pump will be scheduled for
service interruption on the same weekday cycle. Metered Service Points eligible for this Program must
provide electric service to irrigation pumps with at least 150 cumulative horsepower. The Company will
make this optional service available to up to 50 Customers in each of four areas of the Companyservice territory. Customers will be selected from the Kuna/Melba/Nampa area, the Mountain
Home/Bruneau/Grand View area, the Rupert/Paul area, and the American Falls area of Idaho Power
service territory. A total of not more than 200 customers will be selected for this Program.
The Company may choose to accept Metered Service Points for participation based
demand, location, size of pump(s) or other factors aimed at creating a diverse participation in the
Program. The Company may also choose to solicit participants to fill any vacancies caused by attrition
in order to maintain the participation objectives. The Company retains the sole right to select and reject
the participants under this schedule.
Each eligible Customer who chooses to take service under this optional schedule is required to
enter into a Uniform Irrigation Peak Clipping Service Application/Agreement ("Agreement") with the
Company prior to being served under this schedule. The Agreement will grant the Company or its
representative permission, on reasonable notice, to enter the Customer s property to install a Timer or
Timers on the electrical panel servicing the irrigation equipment associated with the Metered Service
Points that are enrolled on this Program and to allow the Company or its representative reasonable
access to the Timer following its installation.
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.c. NO. 26, TARIFF NO.1 01 ORIGINAL SHEET NO 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PILOT PROGRAM
(Optional)
(Continued)
TERM OF AGREEMENT AND TERMINATION
The term of the Agreement, as it applies to each Metered Service Point accepted for
participation, shall commence on the date the Agreement is signed by both the Customer and the
Company and shall terminate on October 1, 2004 unless otherwise terminated as follows:
1 . A Customer may terminate the participation of a Metered Service Point without penalty
by notifying the Company or its representative before the Timer has been installed on the
Metered Service Point.2. A Customer who terminates the participation of a Metered Service Point prior to
satisfactorily participating in the Program until October 1, 2004 and who does not satisfy the
provisions of item 1 above, shall pay the Company the sum of $100.00, which sum will be
included on the Customer's monthly bill. The Customer s load control service credit shall be
prorated for the number of days in that month the Customer satisfactorily participated in the
Program.3. If there is evidence of alteration, tampering, or otherwise interfering with the Company
ability to initiate a load reduction event at a Metered Service Point, the Agreement as it applies
to that Metered Service Point will be automatically terminated. The Customer will also be
required to reimburse the Company for the cost of replacement or repair of the Timer, pay the
Company the sum of $100.00 which sum will be included on the Customer's monthly bill and the
Company will reverse any and all load control service credits applied to the Customer's monthly
bill(s) for the Metered Service Point as a result of the Customer's participation in the Program.
PROGRAM DESCRIPTION
Timer Installation and Service . At the Company s expense, the Company or its representative will
install a Timer or Timers on the Customer s electrical panel controlling the irrigation equipment at the
Metered Service Point enrolled in the Program. The Company or its representative will set the Timer or
Timers to interrupt electric service for a four hour period between 4:00 P.M. and 8:00 P.M. on a
designated weekday.
Load Control Service Credit. The load control service credit applies to the load reduction as
measured by the Billing Demand of the specific Metered Service Point enrolled in the Program. The
Billing Demand of a Metered Service Point enrolled on the Program will be multiplied by $1.75. This
amount will then be prorated for the number of days of the months of June, July or August that fall in a
Customer's Billing Cycle. The load control service credit will be included on the Customer's monthly bill.
The load control service credit applies to the Billing Demand for the calendar months of June, July and
August 2004.
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.c. NO. 26, TARIFF NO. 101 ORIGINAL SHEET NO 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PilOT PROGRAM
(Optional)
(Continued)
PROGRAM DESCRIPTION (Continued)
load Control Hours. The Company will set each Timer to interrupt service during the weekday
hours of 4 p.m. to 8 p.m. Mountain Daylight Savings Time. Each Metered Service Point's Timer will be set
to interrupt service on one regularly scheduled weekday per week for each week of the months of
June, July and August 2004. The Company retains the sole right to select the load reduction weekday
for each Metered Service Point. Mass memory meters will be installed on a sample of the participant'
Metered Service Points for Program monitoring and evaluation purposes. The sample of Metered Service
Points selected for monitoring and evaluation will be chosen at the Company s sole discretion.
Notification of load Control Schedule.An interested Customer must sign and return to the
Company an Agreement specifying the Metered Service Point(s) to be included in the Program. If a
Customer is selected for participation in the Program, the Company will return a signed Agreement to
the Customer specifying which Metered Service Point(s) are accepted into the Program. TheCompanys goal is to have sufficient time to enroll Customers and install all Timers by June 1, 2004.Customers may be enrolled in the Program after June 1, 2004 to achieve desired participation levels,
but no later than July 1, 2004.
Early Termination of the Proqram . Before a selected participant's Timer has been installed, aCustomer may decide not to participate in the Program and may terminate the Agreement without
penalty by notifying the Company or its representative.
SPECIAL CONDITIONS
The provisions of this schedule do not apply for any time period that the Company interrupts the
Customer's load for a system emergency or any other time that a Customer's service is interrupted by
events outside the control of the Company. The provisions of this schedule will not affect the
calculation or rate of the regular Customer, Energy or Demand Charges associated with a Customer
standard service schedule.
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF NO.1 01 ORIGINAL SHEET NO. 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PILOT PROGRAM
(Optional)
Uniform IrriGation Peak ClippinG Service Application/ Aqreement
THIS AGREEMENT Made this 2004, between
hereinafter called Customer, whose billingaddress is and IDAHO POWER
COMPANY, a corporation with its principal office located at 1221 West Idaho Street. Boise, Idaho,
hereinafter called Company. This Agreement is for the Metered Service Point(s) identified on the
attached worksheet (Worksheet):
day of
The Customer designates the following person as the Customer's authorized contact:
Authorized Contact:
Phone:
Fax:
Email:
Cell Phone:
NOW, THEREFORE, The Parties agree as follows:1. The Uniform Irrigation Peak Clipping Service Application/Agreement must be signed by
the Customer and the Customer must be the person who is responsible for paying bills for retail electric
service provided by the Company at the Metered Service Point(s) identified in the Worksheet.2. The Customer understands that the information concerning the Metered Service Point(s)
on the Worksheet is based on the best information currently available to the Company. The Incentive
amounts are estimates based on 2003 Billing Demands for the Metered Service Point(s) specified on the
Worksheet. The Customer agrees to specify which Metered Service Point(s) listed on the Worksheet the
Customer wishes to enroll in the Program.3. From time to time during the term of this Agreement and with prior reasonable notice
from the Company, the Customer shall permit the Company or its representative to enter the
Customer's property on which the enrolled Metered Service Point(s) are located to permit the
Company or its representative to install, service, maintain and/or remove Timer(s) on the electrical
panel that services the Customer's irrigation equipment.4. The Customer understands and acknowledges that by participating in the Program, the
Company shall, at its sole discretion, have the ability to interrupt electric service to the Metered Service
Point(s) enrolled in the Program for the hours of 4 p.m. to 8 p.m. Mountain Daylight Savings Time for one
regularly scheduled weekday per week for the months of June, July and August. The Company retains
the sole right to select the load reduction weekday for each Metered Service Point. The Customer also
understands and acknowledges that if a Metered Service Point provides electricity to more than one
irrigation pump, each pump will be scheduled for service interruption on the same weekday cycle.
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President. Regulatory Affairs
1221 West Idaho Street. Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF NO. 101 ORIGINAL SHEET NO. 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PILOT PROGRAM
(Optional)
Uniform IrriGation Peak Clipping Service Application/ Aareement
(Continued)
5. For the Customer's satisfactory participation in the Program, the Company agrees to pay
the Customer $1.75 (the "Incentive ) per kW per month of load reduction measured by the Billing
Demand for the Metered Service Point(s) specified on the Worksheet, for the three calendar months of
June, July and August 2004. The Incentive will be paid in the form of a credit on the Customer's monthly
bill. The Incentive may be prorated for the months of June, July and August 2004 depending on the
Customer's billing cycle.6. If the Customer terminates this Agreement prior to the Customer satisfactorily
participating in the Program through October 1, 2004 while the Metered Service Point(s) are still
connected for service and the Customer remains responsible for paying the bills for electrical service,
the Customer agrees to pay the Company the sum of $100.00, which sum will be included on the
Customer's monthly bill. The Customer's Incentive for the month of termination shall be prorated for the
number of days in that month that the Customer is a participant in good standing in the Program.7. If there is evidence of alteration, tampering, or otherwise interfering with the Company
ability to initiate a load reduction event at a Metered Service Point(s), the Agreement as it applies to
that Metered Service Point will be automatically terminated. The Customer will also be required to
reimburse the Company for the cost of replacement or repair of the Timer, pay the Company the sum of
$100.00 which sum will be included on the Customer's monthly bill and the Company will reverse any
Incentives applied to the Customer's monthly bill for the Metered Service Point as a result of the
Customer's participation in the Program.8. The Company s Schedule 23, any revisions to that schedule and any/or successor
Schedule are to be considered part of this Agreement.9. This Agreement and the rates, terms and conditions of service set forth or incorporated
herein and the respective rights and obligations of the Parties hereunder shall be subject to valid laws
and to the regulatory authority and orders, rules and regulations of the Idaho Public Utilities Commission
and such other administrative bodies having jurisdiction.
10. Nothing herein shall be construed as limiting the Idaho Public Utilities Commission from
changing any terms, rates, charges, classification of service or any rules, regulations or conditions
relating to service under this Agreement, or construed as affecting the right of the Company or the
Customer to unilaterally make application to the Commission for any such change.
11. In any action at law or equity under this Agreement and upon which judgment
rendered, the prevailing Party, as part of such judgment, shall be entitled to recover all costs, including
reasonable attorneys fees, incurred on account of such action.
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO POWER COMPANY
I.P.C. NO. 26, TARIFF NO. 101 ORIGINAL SHEET NO. 23-
SCHEDULE 23
IRRIGATION PEAK CLIPPING
PILOT PROGRAM
(Optional)
Uniform Irriaation Peak Clippina Service Application/Aareement
(Continued)
12. The Company retains the sole right to select and reject the participants to receive
service under Schedule 23. The Company retains the sole right for its employee and its representatives
to install or not install Timers on the Customer s electrical panel at the time of installation depending on,
but not limited to, safety, reliability, or other issues that may not be in the best interest of Idaho Power, its
employees, or its representatives.
13. Under no circumstances shall the Company or any subsidiary, affiliates or parent
Company be held liable to the Customer or any other party for damages or for any loss, whether direct,
indirect, consequential, incidental, punitive, or exemplary resulting from Peak Clipping or from the
Customer's participation in the Program. The Customer assumes all liability and agrees to indemnify and
hold harmless the Company and its subsidiaries, affiliates and parent company for personal injury,
including death, and for property damage caused by the Customer's decision to participate in the
Program and to reduce loads.
The Company makes no warranty of merchantability or fitness for a particular purpose with
respect to the Timer and any and all implied warranties are disclaimed.
(Appropriate Signatures)
IDAHO
Issued - February 5, 2004
Effective - March 6, 2004
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho