20041207Application.pdf

BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
P. O. Box 70
Boise , Idaho 83707
Telephone No. [phone]
FAX Telephone No. [phone]
Idaho Pu~ic Utilities Commission
Office of the SecretaryRECEIVED
DEC - 6 2004
Boise, Idaho
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
REVISE THE ENERGY EFFICIENCY
RIDER, TARIFF SCHEDULE
CASE NO.IPC-O4-
APPLICATION
Application is hereby made to the Idaho Public Utilities Commission (the
Commission ) by Idaho Power Company ("Idaho Power" or "the Company ) for an
order approving an increase to the Energy Efficiency Rider, Tariff Schedule 91 , and
effective June 1 , 2005 with a subsequent increase to the Energy Efficiency Rider
effective June 1 , 2007. This Application also describes the Schedule 19 conservation
program developed in compliance with Commission Order No. 29505 issued in the
Company s recent general rate case.
In support of this Application , Idaho Power represents as follows:
APPLICATION , Page
Idaho Power is an Idaho Corporation , whose principal place of business is
1221 West Idaho Street, Boise , Idaho, 83702.
II.
Idaho Power operates a public utility supplying electric service in Southern
Idaho and Eastern Oregon. Idaho Power is subject to the jurisdiction of this
Commission in Idaho and to the jurisdiction of the Oregon Public Utility Commission in
Oregon. Idaho Power is also subject to the jurisdiction of the Federal Energy
Regulatory Commission (the "FERC"
III.
On May 13 , 2002, in Order No. 29026 issued in Case Nos. I PC-02-
and I PC-02-, the Commission authorized the Company to collect a charge known as
the Energy Efficiency Rider (the "Rider ) as a means to fund the implementation of
Demand-Side Management ("DSM") programs in the Company s Idaho service territory.
As a result of Order N. 29026 , a Rider equivalent to .5 percent of the base revenue
became effective on May 16 , 2002, for all customers taking retail service from the
Company. On an annual basis , the Rider generates approximately $2.6 million of DSM
funds.
IV.
Since the implementation of the Rider in May 2002 , numerous DSM
programs, energy efficiency training seminars, research studies, educational
workshops , and pilot programs have been funded by the Rider. The Energy Efficiency
Advisory Group ("EEAG"), formed in May 2002 to provide input to the Company on
APPLICATION , Page 2
DSM program design and implementation strategies, has been instrumental in the
implementation of the various DSM programs and studies.
The Company s 2004 Integrated Resource Plan (the "I RP"), filed with the
Commission on August 27 2004 , selected six Demand-Side Management programs as
part of the preferred portfolio of resources to meet the Company s resource needs over
the ten-year IRP planning horizon. Each of these six programs is designed to be fully
implemented by the end of 2009. The expected cost for these six programs over the
2005 - 2009 time period increases from $5 503 040 in 2005 to $10 843 547 in 2009 for
a total five-year cost of $44 180 445.
VI.
In addition to the DSM programs selected through the IRP process, the
Company plans: 1) to continue making available to its customers other customer-
focused programs; 2) to undertake additional DSM-related research and studies; 3) to
continue its involvement in the Distribution Efficiency Initiative; and , 4) to launch limited
programs targeting energy efficiency for existing residential and commercial buildings.
The Company also expects to incur ongoing administrative costs for managing
incremental DSM efforts. The expected cost for these various programs and
expenditures over the 2005 - 2009 time period totals $4 375 000 for the five-year
period.
VII.
As a part of its DSM efforts , Idaho Power joined the Northwest Energy
Efficiency Alliance (the "Alliance ) in 1996 to support regional energy efficiency market
APPLICATION , Page 3
transformation. The Company s existing contract with the Alliance expires December
, 2004. Idaho Power has entered into a new agreement with the Alliance for the
period January 1 , 2005 through December 31 , 2009 in order to continue Idaho Power
support of energy efficiency market transformation. The expected cost for the Idaho
jurisdiction s share of the Alliance funding over the five-year contract period is
392 800.
VIII.
In Order No. 29505 issued in Case No. IPC-03-, the Commission
directed the Company to work with its Schedule 19 customers and Commission Staff to
develop a conservation program targeted specifically to Schedule 19 customers. As a
result of working with Schedule 19 customers and Commission Staff, the Company has
developed and is hereby requesting authorization to provide a "self-directed" option to
Schedule 19 customers whereby funds assessed through the Energy Efficiency Rider
would be tracked by customer with 100 percent of the funds made available to the
customer for implementation of DSM programs and projects. This same "self-directed"
option would also be made available to the Company s special contract customers. The
self-directed option is more fully described in the testimony of Maggie Brilz , which is
filed herewith.
IX.
In order to provide the funding necessary to support the above described
DSM program expenditures, the Company is requesting through this Application that the
Commission approve an increase in the Rider to allow the Company to collect additional
funds equivalent to 1.5 percent of base revenues effective June 1 2005 and an
APPLICATION , Page 4
additional increase in the Rider to 2.4 percent of base revenues effective June 1 2007.
The Company is also requesting authority to change the method through which the
Rider is assessed on customers' bills from a cents-per-kilowatt-hour charge to a
percentage of base revenue charge. The Company is requesting this charge be
assessed uniformly for all customers taking retail service from the Company.
Simultaneously with the filing of this Application, the Company has filed its
direct case consisting of the testimony and exhibits of witnesses Maggie Brilz and
Timothy Tatum. While the Company believes that this case should be processed under
Modified Procedure, RP 201 , et seq., Idaho Power stands ready for immediate
consideration of this Application, if it is the Commission s determination that a hearing
should be held.
XI.
Attachment 1 to this Application is a copy of Idaho Power s First Revised
Sheet No. 91-1 which shows the Energy Efficiency Rider percentage charge of 1.
percent for the period June 1 2005 through May 31 2007 and the Energy Efficiency
Rider percentage charge of 2.4 percent beginning June 1 2007.
XII.
While the increased Rider charges would not appear on customers bills
until June 1 2005, the Company requests the Commission consider this Application on
a schedule that allows for the issuance of an Order in early spring 2005. Prior to
undertaking significant expenditures for DSM programs, particularly the demand
response programs which require a significant investment in electronic equipment, the
APPLICATION, Page 5
Company desires to receive assurance from the Commission that the Commission
supports the Company s planned DSM programs and additional funding to support the
planned DSM programs.
XIII.
Communications with reference to this Application should be sent to the
following:
Barton L. Kline
Monica B. Moen
Idaho Power Company
O. Box 70
Boise , ID 83707
bkline ~ idahopower.com
mmoen ~ idahopower.com
Maggie Brilz
Pricing Director
Idaho Power Company
O. Box 70
Boise , ID 83707
mbrilz ~ idahopower.com
WHEREFORE, Idaho Power Company respectfully requests that the
Commission issue an order: 1) authorizing the implementation of the Energy Efficiency
Rider charges as proposed in Paragraph VIII of this Application. As provided in
Paragraph VIII , the monthly Energy Efficiency Rider for the period June 1 2005 through
May 31 2007 is 1.5 percent of total base revenue and for the period beginning June 1
2007 forward is 2.4 percent of total base revenue; and 2) approving First Revised Sheet
No. 91-1; and 3) authorizing the implementation of a "self-directed" option for the
Company s Schedule 19 and special contract customers.
DATED this 6th day of December 2004, in Boise, Idaho.
BARTON L. KLINE
Attorney for Idaho Power Company
APPLICATION , Page 6
ATTACHMENT
LP.C. No. 27 Tariff No. 101
First Revised Sheet No. 91-
Cancels
Oriainal Sheet No. 91-
Idaho Power Company
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABILITY
This schedule is applicable to all retail Customers served under the Company s schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company s expenditures for the
analysis and implementation of energy conservation and demand response programs.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Efficiency Rider percentage times the
sum of the monthly billed charges for the base rate components. The Monthly Charge will be
separately stated on the Customer s regular billing.
Eneray Efficiency Rider
Schedule
Effective
June 1,2005
Effective
June 1. 2007
Schedule
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 25
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
5 %
4 %
2.4 %
2.4
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
2.4 %
IDAHO
Issued - December 6 , 2004
Effective - January 6, 2005
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. 27 Tariff No. 101
APPLICABILITY
Oriainal Sheet No. 91-
SCHEDULE 91
ENERGY EFFICIENCY RIDER
This schedule is applicable to all retail Customers served under the Company s schedules and
special contracts. This nergy Efficiency Rider is designed to fund the Company s expenditures for
the analysis and implementation of energy conservation and demand response programs.
MONTHLY CHARGE
The Monthly Charge is a-flat per montR--Gharge for Customers taking service under Schedule
and is a cents per kVVh equal to the applicable Eneray Efficiency Rider percentaae cl1arge equal to the
Energy Efficiency Rider amount times the sum of the monthly billed charges for the base rate
components 'Nhich include the Service CRafge,-Enerav CAaFge,Demand-Gharge, On Peak Demand
Gharae,Basic Charae as a~e. energy consumption for all other Customers.The Monthly Charge
will be separately stated on the Customer s regular billing.
Schedule
Schedule
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 25
Eneray Efficiency RiderEffective Effective
June 1,2005 June 1 2007
$0.30 per meter per month1.010 2.4010
$0.000315 per k\Nh1.010 2.40/0
$0.000178 per kVVh1.0/0 2.40/0
$O.OO~ 76 per kWA1.5 % 2.4%
$0.000139 per kVVh1.5 % 2.40/0
$0.000301 per kWA,-but not to exceed~ 5.00 per meter per month010 2.4010
$0.000301 per kWA,-but not to excee~ 5.00 per meter per month
5 % 2.4010
$0.000565 per k'Nh
$0.000235 per kVVh 010
$0.000565 per kVVh 5 %
$0.000155 per k'.lVh 5 %
$0.000122 per kVVh 5 %
$0.0001-10 per kVVh
$0.000123 per kWh 0/0
$0.000112 per kVVh 010
2.4010
2.4%
Sc~e
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 28
Schedule 29
Schedule 30
2.40/0
2.4%
2.4010
2.40/0