20040219Notice of Application_Order No 29430.pdf

Office of the Secretary
Service Date
February 18 2004
BEFORE THE IDAHO PUBLIC UTILITIES CO MMISSI 0 N
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
AUTHORITY TO IMPLEMENT AN
IRRIGATION PEAK CLIPPING PILOT
PROGRAM.
CASE NO. IPC-04-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT
DEADLINES
ORDER NO. 29430
On February 5, 2004, Idaho Power Company, filed its Application, pursuant to
Commission Rule of Procedure 52, for authority to institute a pilot program to permit the
Company s customers to participate in its proposed Irrigation Peak Clipping Pilot Program (Pilot
Program) by implementing Tariff Schedule 23. Idaho Power has proposed that its Tariff
Schedule 23 become effective on March 6, 2004. In order to allow adequate time for interested
persons and parties to comment on this matter the Commission suspends the effective date of the
Company s Tariff Schedule 23 until April 5 , 2004 or until the Commission issues an Order
approving, modifying or rejecting the Company s Application, program and tariff.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power s 2002 Integrated Resource Plan
IRP") identified peak resource deficiencies facing its system in upcoming years. In the IRP the
Company represented it would target demand-side measures that address peak-hour demand
reduction as a means of addressing those deficiencies. Idaho Power states the irrigation summer
load is a major portion of its summer peak demand. Idaho Power states that the Irrigation Peak
Clipping Pilot Program is the type of demand response program that could potentially reduce
peak-hour demand by attempting to manage capacity instead of energy.
YOU ARE FURTHER NOTIFIED that Idaho Power contends the purpose of its
proposed Pilot Program is to turn off power to selected irrigation pump(s) behind a metered
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29430
service point(s) using electric switches ("Timers ) during peak weekday hours in the summer
months in order to produce a decrease in the Company s system summer peak. In exchange for
allowing Idaho Power 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
Company states the Pilot Program would be an optional, supplemental service that is described
in its proposed Tariff Schedule 23. Idaho Power is requesting Commission review of this tariff
because its implementation would change the method by which the Company provides electrical
service to irrigation customers who participate in the Pilot Program.
YOU ARE FURTHER NOTIFIED that Idaho Power states customers targeted for
participating in the Pilot Program are those who can have power turned off at a metered service
point(s) for four hours per week, between 4:00 p.m. to 8:00 p., the time when daily summer
peak demand normally occurs, during the calendar months of June, July and August without
impacting crop yield, the choice of crop planted or the design of the irrigation systems. Based
upon input from various irrigation customers Idaho Power contends that four hours of
interruption per week appears to be a reasonable amount.
YOU ARE FURTHER NOTIFIED that in order to be eligible to participate in this
Pilot Program Idaho Power proposes that irrigation customers: must have metered service
point(s) receiving service under the Company s Schedule 24, where the metered service point(s)
serves a water pumping or water delivery system used to irrigate agricultural crops or pasturage;
the customer s metered service point(s) must provide electric service to irrigation pump(s) with
at least 150 cumulative horsepower; 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)
that will be turned off for the selected four hour period.
YOU ARE FURTHER NOTIFIED that the Company proposes to make this Pilot
Program available to up to 50 customers in each of four areas ofIdaho Power s service territory.
Customers will be selected from 1) the Kuna, Melba and Nampa area; 2) the Mountain Home
Bruneau and Grand View area; 3) the Rupert and Paul area; and 4) the American Falls area of
Idaho Power s service territory. Idaho Power proposes that a total of not more than 200
customers will be selected to participate in the Pilot Program. The Company states that it also
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NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29430
may choose to solicit participants to fill any vacancies caused by attrition in order to maintain the
participation objectives.
YOU ARE FURTHER NOTIFIED that Idaho Power states each eligible irrigation
customer who desires to participate in this Pilot Program is required to enter into a Uniform
Irrigation Peak Clipping Service Application Agreement ("Agreement") with the Company prior
to being accepted to take part in this Pilot Program.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes to retain the sole right
to select and reject the participants to receive service under Schedule 23. Furthermore, Idaho
Power proposes to retain the sole right to select the load reduction weekday for each metered
service point(s) for the customers that are accepted to participate in the Pilot Program.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes that during the term
of the Agreement with the participating irrigation customer and with prior reasonable notice the
customer shall permit Idaho Power or its representative reasonable access to install, service
maintain and/or remove Timer(s) on the electrical panel that services the participating customer
irrigation equipment. The Company also states that its goal is to enroll customers and install all
Timers by June 1 , 2004. Finally, Idaho Power proposes that customers may be enrolled in the
Pilot Program after June 1 , 2004 to achieve desired participation levels, but no later than July 1
2004.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes the load reduction
produced by each participant will be deemed equal to the billing demand for the enrolled
metered service point(s) for the applicable billing period. The Company proposes that
participants would receive financial incentive for each month they successfully participate in the
Pilot Program. The incentive would be calculated by multiplying $1.75 by the billing demand
for the metered service point that is enrolled in the Pilot Program. The incentive may be prorated
for the months of June, July and August depending on the irrigation customer s billing cycle.
YOU ARE FURTHER NOTIFIED that the Company proposes that the Pilot
Program would be piloted in the 2004 irrigation season and would expire on October 1 , 2004
unless extended by the Company.
YOU ARE FURTHER NOTIFIED that Idaho Power contends the Energy Efficiency
Advisory Group has concurred with the proposal to use Energy Efficiency Rider funds, collected
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ORDER NO. 29430
under Idaho Power Schedule 91 , to finance the Irrigation Peak Clipping Pilot Program. The
Company states that the cost of the Pilot Program for one year will be approximately $294 750.
YOU ARE FURTHER NOTIFIED that Idaho Power has proposed that its Tariff
Schedule 23 become effective on March 6, 2004. In order to allow adequate time for interested
persons and parties to comment on this matter the Commission suspends the effective date ofthe
Company s Tariff Schedule 23 until April 5, 2004 or until the Commission issues an Order
approving, modifying or rejecting the Company s Application.
YOU ARE FURTHER NOTIFIED that the Company s Application to implement
this Pilot Program is merely a proposal subject to public review and Commission approval.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-04-3. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case, and that the issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comment have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or comments are received
within the deadline, the Commission may consider the matter and enter its Order without
hearing. If protests or comments are filed within the deadline, the Commission will consider
them and may set the matter for hearing or may decide the matter and issue its Order on the basis
of the written positions before it. Reference IDAP A 31.01.01.204.
NOTICE OF COMMENT AND REPLY COMMENT DEADLINES
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date of this Notice. The comment must contain a
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ORDER NO. 29430
statement of reasons supporting the comment. IDAP A 31.01.01.202.02. Persons desiring a
hearing must specifically request a hearing in their written comments.
YOU ARE FURTHER NOTIFIED that the Company may file reply comments on
or before seven (7) days after the initial twenty-one (21) day comment period has expired.
YOU ARE FURTHER NOTIFIED that written comments concerning this
Application shall be mailed to the Commission and the Applicant at the addresses reflected
below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
MONICA MOEN
PETER P. PENGILL Y
IDAHO POWER COMPANY
PO BOX 70
BOISE, ID 83707-0070
Email: mmoen(fYidahopower.comStreet Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that Idaho Power s Application can be viewed
online at www.puc.state.id.by clicking on "File Room" and "Electric Cases " or it can
viewed during regular business hours at the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho and Idaho Power Company located at 1221 West Idaho Street in
Boise, Idaho (388-2200).
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter and Idaho Power Company, an electric utility, pursuant to the authority and power granted
under Title 61 of the Idaho Code and the Commission s Rules of Procedure IDAPA
31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29430
ORDER
IT IS HEREBY ORDERED that the effective date of Idaho Power Company
proposed Pilot Program and Tariff Schedule 23 is suspended until April 5, 2004 or until the
Commission issues an Order approving modifying or rejecting the Company s Application in
this case.
IT IS FURTHER ORDERED that this Application be processed under Modified
Procedure. Persons interested in submitting written comments regarding this Application should
do so within twenty-one (21) days of the service date of this Order.
IT IS FURTHER ORDERED that Idaho Power may file reply comments on or before
seven (7) days after expiration of the initial twenty-one day comment period.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of February 2004.
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PAUL KJELLANDER, PRESIDENT
ATTEST:
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Barbara Barrows
Assistant Commission Secretary
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINES
ORDER NO. 29430