20040810Notice of Investigation Order No 29558.pdf

Office of the Secretary
Service Date
August 10 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF FINANCIAL DISINCENTIVES TO
INVESTMENT IN ENERGY EFFICIENCY BY
IDAHO POWER COMPANY.
NOTICE OF INVESTIGATION
CASE NO. IPC-O4-
OTI CE OF SCHED ULIN G
ORDER NO. 29558
YOU ARE HEREBY NOTIFIED that on May 25 , 2004, the Idaho Public Utilities
Commission (Commission) in Order No. 29505 (Idaho Power Company general rate case No.
IPC- E-03 -13) determined that a separate "proceeding to assess financial disincentives inherent in
Company-sponsored conservation programs is appropriate and should proceed by informal
workshops." The Commission s Order provided in relevant part as follows:
The Commission specifically directs the parties (Idaho Power, NW Energy
Coalition, Industrial Customers of Idaho Power (ICIP) and Commission Staff)
to address possible revenue adjustment when annual energy consumption is
both above and below normal. The parties should also consider how much
adjustment is necessary to remove DSM investment disincentives and
whether (and to what extent) performance-based incentives such as revenue
sharing could or should be incorporated into the resolution of this issue. The
Commission is interested in proposals that could provide Idaho Power the
opportunity to share and retain benefits gained from efficiencies, especially
where efficiencies are derived from innovation and the use of new
technologies.. . In short, the Commission believes opportunities exist for
improvements in operating efficiency that would benefit the Company
shareholders and its customers, and we encourage the parties to creatively
consider the options for a performance-based mechanism to present to the
Commission. The parties to the agreement are directed to propose a
workshop schedule and initiate a proceeding. (emphasis added.
Order No. 29505 at pp. 68, 69.
As a follow up to the Commission s Order, the NW Energy Coalition on June 18
2004 formally requested that a proceeding be initiated and that a workshop schedule be
established. The Commission in this Order establishes a docket to investigate the financial
NOTICE OF INVESTIGATION
NOTICE OF SCHEDULING
ORDER NO. 29558
disincentives which hinder Idaho Power s investment in cost-effective energy efficiency
resources.
YOU ARE FURTHER NOTIFIED that the Northwest Energy Coalition, Commission
Staff, Idaho Power, and the Industrial Customers of Idaho Power (ICIP) have proposed and the
Commission has agreed to the following procedure and schedule for workshops:
A series of three (3) informal workshops is anticipated, to be concluded by
December 15, 2004. The first workshop will be held starting at 9:30 a.
untH approximately 12:30 p.m. on August 24, 2004, at Idaho Power
Company, 1221 West Idaho Street, Boise, Idaho. Dates and locations for
further workshops will be determined at this initial meeting.
The Commission notes that Idaho Power has agreed to underwrite the costs of a
facilitator for the workshops. In order to advance discussions, Idaho Power has also agreed to
circulate a "white paper" analysis of the issues identified by the Commission in Order No. 29505
to Staff, NW Energy Coalition, and ICIP (and other parties that may request the analysis).
COMMISSION FINDINGS
The Commission has reviewed its Order No. 29505 in Case No. IPC-03-13 and
finds it reasonable to initiate an investigation of financial disincentives to investment in energy
efficiency by Idaho Power and to approve the foregoing procedure and schedule for initial
workshop. The Commission believes that the scope of the investigation should be focused on
decoupling and performance based ratemaking.
ORDER
In consideration of the foregoing and as more particularly described above, IT
HEREBY ORDERED and the Commission by this Order does hereby establish Docket No. IPC-
04-15 for investigation of financial disincentives to investment in energy efficiency by Idaho
Power Company.
IT IS FURTHER ORDERED and the Commission does hereby approve the foregoing
schedule for initial workshop in Case No. IPC-04-15. Additional workshops will be pursuant
to agreement of the participating parties and without further notice by the Commission.
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ORDER NO. 29558
IT IS FURTHER ORDERED the Commission directs the participating parties to
provide a written report to the Commission no later than December 15 , 2004 to update the
Commission on the status of the investigative workshops.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /0"""
day of August 2004.
MARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
~D.
. D. Jewell
Commission Secretary
vld/O:IPCEO415 sw
NOTICE OF INVESTIGATION
NOTICE OF SCHEDULING
ORDER NO. 29558