20060315notice_of_application_order_no_30001.pdf

Office of the Secretary
Service Date
March 15 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO CONTINUE ITS TIME-OF- )
USE ENERGY PRICING PILOT PROGRAMS
CASE NO. IPC-06-
NOTICE OF APPLICATION
ORDER NO. 30001
On March 3 , 2006, Idaho Power Company filed an Application for authority to
continue its two time-of-use energy pricing pilot programs for customers in the Emmett Valley.
The pilot programs were approved in March 2005. Order No. 29737, Case No. IPC-05-2. The
programs are currently scheduled to expire on April 1 , 2006. The Company proposes to extend
the programs for an additional year, allowing those that participated in 2005 to continue if they
so desire and also soliciting new participants.
Because the current pilot programs are set to expire on April 1 , 2006, the Company
requested that the Commission process its Application on an expedited basis, or alternatively,
issue an interlocutory Order extending the effectiveness of the pilot programs for a sufficient
time to allow the Commission to fully consider the Application. If the Commission chooses to
extend the effectiveness of the programs pending its consideration of the Application the
Company requests a schedule that would allow an Order to be issued in mid to late April and
sufficient lead time to allow activation of the new programs by June 1 , 2006. The Company
requested processing its Application by Modified Procedure.
With this Order the Commission authorizes Idaho Power to continue its time-of-use
energy pricing pilot programs.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the current pilot programs, Schedule 4, Energy
Watch Pilot Program, and Schedule 5, Time-of-Use Pilot Program, were approved in March
2005 to run through April 1 , 2006. Order No. 29737, Case No. IPC-05-2. The programs are
voluntary options available to all residential customers in the Emmett Valley who have AMR
metering installed.
YOU ARE FURTHER NOTIFIED that Idaho Power employed Northwest Research
Group to conduct a customer survey and RL W Analytics to analyze the usage and billing data
NOTICE APPLICATION
ORDER NO. 30001
associated with these programs. The Company states in its Application that the detailed results
of these pilot programs will be included in the Company s report to the Commission, to be
submitted on or before April 1 , 2006 in compliance with Order No. 29737. Application at 2.
YOU ARE FURTHER NOTIFIED that the Company reports that a preliminary
evaluation of the programs shows that the participant retention rate was high. The Energy Watch
program began with 79 participants and retained 76 by the end of August 2005. The Time-of-
Day program began with 95 participants and retained 92. Application at 3. Preliminary results
suggest that on average customers benefited by participating in the programs. Id. Time-of-day
participants, on average, saved about 5 percent on their bills and Energy Watch participants, on
average, saved about 10 percent on their bills when compared with control groups with similar
usage taking service under Schedule 1. Id. The Company states that the energy load shift, or
decrease in usage, for the time-of-day participants, although apparent, was not statistically
significant. Id. The Energy Watch participants, on average, demonstrated a statistically
significant demand reduction during the Energy Watch hours, reducing their household demand
by 1.33 kW for all Energy Watch hours. Id. Additionally, the Company reports that preliminary
evaluation of the customer survey indicates: participants were satisfied with the programs; 60%
of those responding indicated they would participate again; and 50% responded that they would
recommend these programs to others. Id.
YOU ARE FURTHER NOTIFIED that the Company is not proposing any changes
to the Energy Watch program, Schedule 4. Application at 5. The Company is proposing a
change in the availability of both pilot programs, in that program participation be limited to those
customers whose energy usage equals or exceeds 300 kWh for each of the most recent 12
consecutive billing periods or for all billing periods if the customer has less than 12 months of
billing history. Application at 4. The Company is proposing to change the rates for the time-of
day pricing periods by increasing the price differential between on-peak, off-peak, and mid-peak
rates. Application at 7. By increasing the differentials between time-of-day pricing periods, the
Company intends to increase the financial incentive for customers to shift their energy usage.
Along with its Application the Company filed proposed tariff sheets for both Schedule 4 and
Schedule 5 that provide for the continuation and changes to the pilot programs.
NOTICE APPLICATION
ORDER NO. 30001
FINDIN GS/CON CL USI ONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application, and the issues involved in this case by virtue of Title 61 , Idaho Code, including
Idaho Code ~~ 61-129, 328 , 501-503, 507, 523 , 524, and the Commission s Rules of Procedure
IDAPA 31.01.01.000 et seq.
The Commission notes that it believes the time-of-use energy pricing pilot programs
to be important programs with potential benefit to both customers and the Company.
Consequently we find it reasonable to authorize the continuation of these programs, as the
Company has requested, past their current expiration date of April 1 , 2006. We look forward to
revlewmg the Company s report and findings regarding the first year of operating these
programs. Once the report is received and reviewed we direct Staff to promptly advise the
Commission whether there is a need for further proceedings regarding the Company s proposed
changes to the programs.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company is authorized to continue its
time-of-use energy pricing pilot programs, Schedule 4, Energy Watch Pilot Program, and
Schedule 5, Time-of-Use Pilot Program, past the current April 1 , 2006, expiration date.
NOTICE APPLICATION
ORDER NO. 30001
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this /.5'-;/\.
day of March 2006.
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P AU KJELL DER, PRESIDENT
OWL, IJ
MARSHA H. SMITH, COMMISSIONER
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ATTEST:
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Je D. JewellCo ission Secretary
O:IPC-06-05 dw
NOTICE APPLICATION
ORDER NO. 30001