20050203Application.pdf

Barton L. Kline #1526
Idaho Power Company
O. Box 70
Boise , Idaho 83707
Telephone No. [phone]
FAX Telephone No. [phone]
Attorney tor Idaho Power Company
RECEiVED
"n, I I ' f"tti-Lt
flJ
f---
Lnns FEB -2 ~M 4:42
, """
, 1 ; ,II: ;;,;j;;)L\'
UTil ,ttES- COr1t'1ISS10N
Street Address tor 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 INSTITUTE TIME-VARIANT PRICING PILOT
PROGRAMS FOR CUSTOMERS PARTICIPATING
IN THE AMR PHASE I IMPLEMENT A TION PROJECT
CASE NO. I PC-05- '
"",
APPLICATION
IDAHO POWER COMPANY (the "Company ot "Idaho Power
accordance with RP 052 and RP 201 et seq hereby applies to the Idaho Public Utilities
Commission (the "Commission ) tor authority to institute two pilot programs tor
customers in the vicinity ot the cities ot Emmett and Letha Idaho ("Emmett Valley
currently participating in the Advanced Meter Reading ("AMR") Phase I Implementation
project.The Company proposes to implement Schedule 4, Energy Watch Pilot
Program , tor customers desiring to take electric service at critical peak pricing energy
rates and Schedule 5 , Time-ot-Day Pilot Program, tor customers desiring to take electric
service at time-ot-use energy rates. The Company proposes both Pilot Programs be
APPLICATION, Page
offered to customers on an optional, voluntary basis. In support ot this Application
Idaho Power submits the tollowing:
BACKGROUND
In its Advance Meter Reading Phase One Implementation Plan submitted
to the Commission in October ot 2003 the Company committed to investigate and tile
with the Commission time-ot-use pricing programs that utilize the capability ot the AMR
technology. Consistent with this commitment the Company has designed two new
residential pricing programs which utilize the hourly energy consumption data made
possible by the Phase One AMR implementation.The design ot each program
incorporates intormation obtained trom the Company s customers who participated in
two tocus groups held in Emmett in early December 2004 as well as input trom
discussions between the Company and Commission Staff held in January 2005.
The proposed Pilot Programs are voluntary taritt options available to all
residential customers in th~ Emmett Valley who have AMR metering installed. Those
customers who choose not to participate in the Pilot Programs will continue to receive
service under Schedule 1 , Residential Service. Customers remaining on the current
residential schedule will not be economically disadvantaged by the participation ot other
residential customers in the Pilot Programs.
II.
PILOT PROGRAM GOALS
The goals ot the Pilot Programs are to provide Idaho Power, the
customers ot Idaho Power and the Commission with the intormation necessary to
APPLICATION , Page 2
evaluate the impacts and benetits ot time-variant pricing to residential customers. By
shifting energy loads to specitic hours in the day, the participating Pilot Program
residential customers may reduce their electric bills. At the same time, Idaho Power
may experience reduced power cost expenses by providing energy to customers during
less expensive time periods. These Pilot Programs will also give Idaho Power an
opportunity to measure customer interest in and satistaction with time-ot-day and critical
peak pricing programs.These Pilot Programs will also enable the Company to
implement and test electronic data transter, billing, and metering systems that are
necessary to successtully otter programs which rely on hourly meter readings. The
Company hopes to enable customers to slightly reduce their Idaho Power bills and peak
power usage though these Pilot Programs.
The Company plans to communicate the availability and details ot these Pilot
Programs through direct mail solicitation , Internet communications, and it necessary,
with workshops in the Emmett Valley.
III.
AVAILABILITY
As proposed by the Company, service under Schedule 4 or Schedule 5
would be available until April 1 , 2006. Residential customers eligible to participate in
the voluntary Pilot Programs will be those customers in the Emmett Valley eligible tor
service under Schedule 1 who have AMR metering in place. Customers interested in
participating will be selected on a tirst-come, tirst-served basis as determined by the
Company. Customers desiring to take service under the Time-ot-Day Pilot Program or
the Energy Watch Pilot Program will be required to notity Idaho Power ot their desire to
APPLICATION, Page 3
participate by May 15 , 2005. The pricing under both Pilot Programs will begin on
June 1 , 2005. The cumulative enrollment under both Pilot Programs will be limited to
300 metered service points, unless the Company chooses to waive this restriction. The
Company desires to enlist approximately 150 customers tor each Pilot Program.
However, it interest is greater tor one Pilot Program than tor the other, the Company
may accept more volunteers tor one Pilot Program than tor the other in order to enroll
up to 300 total metered service points. Under both ot these Pilot Programs , the energy
rates tor the summer season would differ trom summer season energy rates under
Schedule1. Energy rates tor the non-summer months would be the same as those on
Schedule 1 .
IV.
SCHEDULE 4
ENERGY WATCH
PILOT PROGRAM DESCRIPTION
The Energy Watch Pilot Program provides customers the opportunity to
reduce their electric bills by shifting usage ott ot "critical peak" hours , or hours when the
cost to provide energy is extremely high , and onto other hours ot the day tor which the
cost to provide energy is lower. Although other utilities have often combined a "critical
peak" component with standard time-ot-use pricing, the Company has chosen to add a
critical peak component to tlat pricing. This approach is intended to make the pricing
option more understandable to customers and to create more distinction between the
Energy Watch and Time-ot-Day Pilot Programs. This distinction should enhance the
ability to evaluate the effectiveness of each program.
APPLICATION , Page 4
Energv Watch Periods
Under the Energy Watch Pilot Program, residential customers will be
charged a tlat energy rate tor all kWh used during the summer season with the
exception ot the kWh used during an Energy Watch Period. Energy Watch Periods can
occur on any weekday trom June 15 through August 15, except tor Independence Day
when it tails on a weekday. Energy Watch Periods will be determined by the Company.
The Company will notify Pilot Program participants of the declared Energy Watch Period
by 4:00 p.m. the day ahead by telephone and , where available , email. All Energy
Watch Periods will be tor the hours ot 5:00 to 9:00 p.m. Energy Watch Periods will occur
on no more than 10 days trom June 15 to August 15, tor a total ot 40 hours. During
Energy Watch Periods , the energy rate will be substantially higher than the energy rate
tor all other hours. Under the Energy Watch Pilot Program , the summer and non-
summer seasons are detined the same as under Schedule 1 , with the summer season
beginning on June 1 and ending on August 31.
Energv Watch Energv Rates
Currently, the base energy rate tor Schedule 1 is 5.0863 cents/kWh tor the
tirst 300 kWh and 5.7253 cents/kWh tor all kWh over 300 kWh during the summer
season. During the non-summer season the base energy rate tor Schedule 1 is 5.0863
cents/kWh tor all kWh. For the Energy Watch Pilot Program , the proposed base energy
rate tor all hours other than the Energy Watch Periods is 5.0863 cents/kWh. During the
Energy Watch Periods the proposed base energy rate is 20 cents/kWh. This Pilot
Program will effectively eliminate the over-300 kWh pricing block during the summer
APPLICATION , Page 5
season tor participating customers. During the non-summer, the proposed base energy
rate is the same as the base energy rate under Schedule 1 .
The proposed base energy rates tor the Energy Watch Pilot Program are:
Summer Base Rate
Energy Watch Period 20.0000ct per kWh
08630ct per kWhAll other Hours
Non-Summer Base Rate
All hou rs 08630ct per kWh
Customers participating in the Energy Watch Pilot Program will continue to
pay the monthly Service Charge ot $3.30.
SCHEDULE 5
TIME-OF-DA Y
PILOT PROGRAM DESCRIPTION
The Time-ot-Day Pilot Program provides customers the opportunity to
reduce their bills by shifting usage trom the "on-peak" period , when the cost to provide
energy is highest, to the "off-peak" period , when the cost to provide energy is the
lowest. The Company proposes the time-ot-day pricing be in effect during the summer
season only. During the non-summer season , the pricing would be the same as that
under Schedule
APPLICATION , Page 6
Time-oj-Dav Periods
Under the Pilot Program , residential customers would be provided price
signals to encourage them to shift their energy usage to specitic periods of the day.
The three time-ot-day periods tor the summer season are detined as:
On-Peak:1 :00 p.m. to 9:00 pm. Monday through Friday, except for
Independence Day when it tails on a weekday
Mid-Peak:7:00 a.m. to 1 :00 p.m. Monday through Friday, except tor
ndependence Day when it tails on a weekday
Ott-Peak:9:00 p.m. to 7:00 a.m. all days and all hours on Saturday, Sunday,
and the Fourth ot July
The summer and non-summer seasons are detined the same as under
Schedule 1 , with the summer season beginning June 1 and ending August 31.
Time-oj-Dav Rates
The proposed base energy rates tor the Time-ot-Day Pilot program are:
Summer Base Rates
On- Peak
Mid-Peak
4781 ct per kWh
8090ct per kWh
Ott-Peak 9725ct per kWh
Non-summer Base Rate
All hours 0863ct per kWh
Customers participating in the Time-ot-Day Pilot Program will continue to
pay the monthly Service Charge ot $3.30.
APPLICATION , Page 7
VI.
LOST REVENUES
Idaho Power is not requesting recovery ot reduced , or lost, revenues which may
result trom the implementation ot these Pilot Programs. However, the Company
believes the issue ot lost revenues, and any mechanism which may be adopted to
address lost revenues, should be tully investigated it either Pilot Program becomes
permanent or is expanded beyond its current scope.
VII.
TARIFFS
Attachment No.1 to this Application is a copy ot Idaho Power s proposed
Schedule 4. Attachment No.2 to this Application is a copy ot Idaho Power s proposed
Schedule 5. The Company requests the Commission consider this Application on a
schedule that allows for the issuance ot an Order in early spring 2005 which would
provide sutticient lead time to enable activation ot this Pilot Program by June 1 , 2005.
The Company requests Schedule 4 and Schedule 5 be approved effective March 4
2005 and remain effective until April 1 , 2006 unless extended upon application ot the
Company and by Order ot the Commission.
VIII.
MODIFIED PROCEDURE
The Company believes that consideration by the Commission ot the
proposals contained in this Application does not require an evidentiary proceeding, and
accordingly the Company requests that this Application be processed under RP 201 et.
APPLICATION , Page 8
seq.allowing for consideration ot issues under moditied procedure, Le., by written
submissions rather than by an evidentiary hearing.
XIV.
NOTICES
Communications with reterence to this Application should be sent to the
tollowing:
Maggie Brilz
Pricing Director
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Barton L. Kline
Senior Attorney
Idaho Power Company
O. Box 70
Boise, Idaho 83707
WHEREFORE , Idaho Power respecttully requests that the Commission
approve under Moditied Procedure the attached Schedule 4 and Schedule 5.
DATED at Boise , Idaho, this 2nd day ot February, 2005.
BART N L. KLINE
Attorney tor Idaho Power Company
APPLICATION , Page 9
ATTACHMENT
Idaho Power Company
I.P.C. No. 27, Tariff No. 101 Ori inal Sheet No. 4-
SCH EDU LE 4
RESIDENTIAL SERVICE
ENERGY WATCH
PilOT PROGRAM
(OPTIONAL)
AVAilABILITY
Service under this schedule is available at points on the Company s interconnected system to
residential Customers in the Emmett Valley where existing facilities of adequate capacity and desired
phase and voltage are adjacent to the Premises to be served , additional investment by the Company
for new transmission , substation or terminal facilities is not necessary to supply the desired service, and
Advanced Meter Reading (AMR) equipment is installed. For the purposes of this schedule, the Emmett
Valley is considered to be the area within the vicinity of the cities of Emmett and Letha, Idaho. Service
under this schedule is limited to no more than 300 metered service points.
The Residential Service Energy Watch Pilot Program is an optional , voluntary service that
provides residential Customers the option to take electric service with a critical peak pricing component.
This schedule will expire on April 1 , 2006.
APPLICABILITY
Service under this schedule is applicable to Electric Service required for residential service
Customers for general domestic uses , including single phase motors of 7112 horsepower rating or less
subject to the following conditions:1. When a portion of a dwelling is used regularly for business , professional or other gainful
purposes , or when service is supplied in whole or in part for business, professional , or other gainful
purposes, the Premises will be classified as non-residential and the appropriate general service
schedule will apply. However, if the wiring is so arranged that the service for residential purposes can
be metered separately, this schedule will be applied to such service.2. Whenever the Customer s equipment does not conform to the Company s specifications
for service under this schedule , service will be supplied under the appropriate General Service
Schedule.
This schedule is not applicable to standby service, service for resale, or shared service.
TYPE OF SERVICE
The type of service provided under this schedule is single phase, alternating current at
approximately 120 or 240 volts and 60 cycles , supplied through one meter at one Point of Delivery.
Upon request by the owner of multi-family dwellings, the Company may provide 120/208 volt service for
multi~family dwellings when all equipment is U L approved to operate at 120/208 volts.
IDAHO
Issued - February 2, 2005
Effective - March 4, 2005
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President , Regulatory Affairs
1221 West Idaho Street, Boise , Idaho
Idaho Pewer Company
.L..P.c, No. 27, Tariff No. 101 jainal Sheet No. 4..
SCHEOULE 4
RESIDENTIAL
ENERGY WATCH
PROGRAM (OPTIONALl
(Continued)
WATER HEATING
Electric storage water heating equipment shall conform to specifications of the Underwriters
Laboratories, Inc., and the Company and its installation shall conform to all National, State , and
Municipal Codes and may be equipped with one or two heating units. No single heating unit shall
exceed 6 kW; and where two heating units are used in a single tank, these units shall be so interlocked
that not more than 6 kW can be connected at anyone time.
RESIDENTIAL SPACE HEATING
All space heating equipment to be served by the Company s system shall be single phase
equipment approved by Underwriters' Laboratories , Inc., and the equipment and its installation shall
conform to all National , State and Municipal Codes and to the following:
Individual resistance-type units for space heating larger than 1 650 watts shall be designed to
operate at 240 or 208 volts, and no single unit shall be larger than 6 kW. Heating units of two kW or
larger shall be controlled by approved thermostatic devices. When a group of heating units, with a total
capacity of more than 6 kW , is to be actuated by a single thermostat, the controlling switch shall be so
designed that not more than 6 kW can be switched on or off at anyone time. Supplemental resistance-
type heaters , that may be used with a heat exchanger , shall comply with the specifications listed above
for such units.
ENERGY WATCH EVENT
An Energy Watch Event is a four-hour period between the hours of 5:00 p.m. and 9:00 p.m. on
weekdays, excluding Independence Day when it falls on a weekday, between June 15 and August 15.
During a Energy Watch Event the price per kWh is set at a higher level than the price per kWh at all
other hours in order to provide a price signal for Customers to shift energy usage off of the four-hour
period. The Company will declare an Energy Watch Event at its sole discretion. No more than
Energy Watch Events will be declared between June 15 and August 15, for a total of no more than 40
Energy Watch Event hours. The Company will contact Customers taking service under this schedule
by 4:00 p.m. the day before an Energy Watch Event is to occur.
SUMMER AND NON.SUMMER SEASONS
The summer season begins on June 1 of each year and ends on August 31 of each year. The
non-summer season begins on September 1 of each year and ends on May 31 of each year.
- - ,'-, -,-,,-,,' ," ..-. -- , ,-, ,-" ," "",
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
IDAHO
Issued.. February 2, 2005
Effective.. March 4, 2005
Id~hQPgwer eom~aflY
l.P.~. ~o, 27. Tariff f'Jo.101 CriQinal 8neetNo. 4..
SOHEDULE 4
ENERGY WATCH
PROG RAM (QPTIONALl
(Continued)
MONTHLY CHARe; ES
The Monthly Charge is the sum of the Service Charge, the Energy Charge, and the Power Cost
Adjustment at the following rates:
Summer Non-summer
Service Charge, per month $3.$3.
Energy Charge, per kWh
Energy Watch Event hours
All other hours
20.0000ct
0863ft
n/a
08630ct
Power Cost Adjustment*, per kWh 6039ct 6039ct
This power Cost Adjustment is computed as provided in Schedule 55.
Minimum Charqe
The monthly Minimum Charge shall be the sum of the Service Charge , the Energy Charge , and
the Power Cost Adjustment.
PAYMENT
The monthly bill rendered for service supplied hereunder is payable upon receipt, and becomes
past due 15 days from the date on which rendered.
.. , ,
" ',n..
, "..
IDAHO
Issued - February 2, 2005
Effective - March 4, 2005
, ..", .. "' ....-- ," ,.. ," -
Issued by IDAHO POWER COMPANY
John R. Gale , Vice President, Regulatory Affairs
1221 West Idaho Street, Boise , Idaho
ATTACHMENT 2
Idaho Power Company
LP.: No. 27. Tariff No. 101 Ori~inal Sheet No. 5-
SCHEDULE S
RESIDENTIAL SERVICE
TIMEROF-DAY
PILOT PROGRAM
(OPTIONAL)
AVAILABILITY
Service under this schedule is available at points on the Company s interconnected system to
residential Customers in the Emmett Valley where existing facilities of adequate capacity and desired
phase and voltage are adjacent to the Premises to be served, additional investment by the Company
for new transmission , substation or terminal facilities is not necessary to supply the desired service , and
Advanced Meter Reading (AMR) equipment is installed. For the purposes of this schedule, the Emmett
Valley is considered to be the area within the vicinity of the cities of Emmett and Letha, Idaho. Service
under this schedule is limited to no more than 300 metered service points.
The Residential Service Time-of-Day Pilot Program is an optional , voluntary service that
provides residential Customers the option to take electric service with seasonal time.of-day energy
rates. This schedule will expire on April 1 , 2006.
APPLICABILITY
Service under this schedule is applicable to Electric Service required for residential
service Customers for general domestic uses, including single phase motors of 7112 horsepower rating
or less, subject to the following conditions:
1 . When a portion of a dwelling is used regularly for business , professional or ether gainful
purposes, or when service is supplied in whole or in part for business, professional, or other gainful
purposes, the Premises will be classified as non-residential and the appropriate general service
schedule will apply. However, if the wiring is so arranged that the service for residential purposes can
be metered separately, this schedule will be applied to such service.2. Whenever the Customer s equipment does not conform to the Company s specifications
for service under this schedule, service will be supplied under the appropriate General Service
Schedule.
This schedule is not applicable to standby service, service for resale , or shared service.
TYPE OF SERVICE
The type of service provided under this schedule is single phase, alternating current at
approximately 120 or 240 volts and 60 cycles , supplied through one meter at one Point of Delivery.
Upon request by the owner of multi-family dwellings, the Company may provide 120/208 volt service for
multi-family dwellings when all equipment is U approved to operate at 120/208 volts.
IDAHO
Issued - February 2,2005
Effective.. March 4, 2005
'.',. -.- ,.. ' " " ,,' , "
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Pewer Company
~U., ~o.. 27. TariltNo. 101 rJgir')al S~o.
~..~
SCHEDULE 5
RESIDENTIAL SERVICE
TIME-OF-OAY
PILOT PROGRAM
(OPTIONAL)
WATER HEATING
- '
Electric storage water heating equipment shall conform to specifications of the Underwriters
Laboratories, Inc., and the Company and its installation shall conform to all National, State, and
Municipal Codes and may be equipped with one or two heating units. No single heating unit shall
exceed 6 kW; and where two heating units are used in a single tank, these units shall be so interlocked
that not more than 6 kW can be connected at anyone time.
RESIDENTIAL SPACE HEATING
All space heating equipment to be served by the Company s system shall be single phase
equipment approved by Underwriters' Laboratories , Inc., and the equipment and its installation shall
conform to all National , State and Municipal Codes and to the following:
Individual resistance-type units for space heating larger than 1 650 watts shall be designed to
operate at 240 or 208 volts, and no single unit shall be larger than 6 kW. Heating units of two kW or
larger shall be controlled by approved thermostatic devices. When a group of heating units, with a total
capacity of more than 6 kW, is to be actuated by a single thermostat, the controlling switch shall be so
designed that not more than 6 kW can be switched on or off at anyone time. Supplemental resistance-
type heaters, that may be used with a heat exchanger, shall comply with the specifications listed above
for such units.
SUMMER ANI:) NON..SUMMI::R SEASONS
The summer season begins on June 1 of each year and ends on August 31 of each year. The
non..summer season begins on September 1 of each year and ends on May 31 of each year.
TIME PERIODS
The time periods are defined as follows. All times are stated in Mountain Time.
Summer Season
Off-Peak:
1 :00 p.m. to 9:00 pm. Monday through Friday, except for Independence Day
when it falls on a weekday
7:00 a.m. to 1 :00 p.m. Monday through Friday, except for Independence Day
when it falls on a weekday
9:00 p.m. to 7:00 a.m. all days and all hours on Saturday, Sunday, and
ndependence Day.
On-Peak:
Mid -Peak:
Non..summer Season
There are no time-of-day blocks in the Non-summer.
" ,
IDAHO
Issued - February 2, 2005
Effective - March 4, 2005
Issued by IDAHO POWER COMPANY
John R. Gale , Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company
LP.No, 27. Tariff No. 101 Original ~heet No. 5...
SCHEDULE 5
RESIDENTIAL SERVICE
TIME-OF-DAY
PILOT PROGRAM
(OPTIONAL)
MONTHLY CHARGE
The Monthly Charge is the sum of the Service Charge, the Energy Charge , and the Power Cost
Adjustment at the following rates:
Summer Non-summer
Service Charge, per month $3.$3.
Energy Charge , per kWh
On~Peak
Mid-Peak
Off-Peak
All Non-summer Hours
6.4781
8090ct
9725ct
n/a
n/a
n/a
n/a
0863ct
Power Cost Adjustment*, per kWh 6039ct 6039ct
This Power Cost Adjustment is computed as provided in Schedule 55.
Minimum CharQe
The monthly Minimum Charge shall be the sum of the Service Charge, the Energy Charge, and
the Power Cost Adjustment.
PAYMENT
The monthly bill rendered for service supplied hereunder is payable upon receipt, and becomes
past due 15 days from the date on which rendered.
IDAHO
Issued - February 2 2005
Effective - March 4, 2005
Issued by I DAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street , Boise , Idaho