20060509final_order_no_30037.pdf

Office of the Secretary
Service Date
May 9, 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-
ORDER NO. 30037
On March 3 , 2006, Idaho Power 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 initially approved in March 2005. Order No. 29737, Case No. IPC-05-2. The
programs were scheduled to expire on April 1 , 2006. The Company proposed 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. The Company also proposed some changes to the
availability of the programs and the rates in the time-of-day pricing categories.
On March 15 , 2006, the Commission issued a Notice of Application and authorized
the pilot programs to continue past the April 1 , 2006 expiration date. Order No. 30001. On
April 18, 2006, the Commission authorized the use of Modified Procedure with a comment
deadline of May 1 , 2006. Order No. 30023. Commission Staff was the only party to file
comments and recommended approval of the Company s Application. With this Order the
Commission approves the Company s Application as more fully set forth below.
THE APPLICATION
The current pilot programs, Schedule 4, Energy Watch Pilot Program, and Schedule
, 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 Company s Application seeks to extend and
continue the programs for an additional year. The programs are voluntary options available to all
residential customers in the Emmett Valley who have AMR metering installed.
Idaho Power employed Northwest Research Group to conduct a customer survey and
RL W Analytics to analyze the usage and billing data associated with these programs. The
Company submitted its report, along with the information from the reports from the two outside
firms on March 29, 2006. This information was reviewed by Staff and is on file with the
Commission in Case No. IPC-05-
ORDER NO. 30037
According to the Application, 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.
DISCUSSION
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 99 61-129 , 328, 501-503, 507, 523 , 524 , and the Commission s Rules of Procedure
IDAPA 31.01.01.000 et seq. formal hearing is not required and we continue to find it
appropriate to process this case by Modified Procedure. IDAPA 31.01.01.201-204.
We have previously authorized these pilot programs to continue past their original
expiration date of April 1 , 2006. Order No. 30001. After examining the Company s report, as
well as the files and records to date for this matter, we find it reasonable to grant the Company
request to continue both the Schedule 4, Energy Watch, and Schedule 5 , Time-of-Use, pilot
programs for an additional year. As we have previously stated, we believe the time-of-use
pricing pilots to be important programs with potential benefit to both customers and the
Company. It appears from the data collected and reported that an additional year of continued
development and further evaluation is needed prior to expanding these programs beyond the pilot
phase and rolling out this technology to a larger section of the Company s service area.
We find that limiting the availability of the programs to households with at least 300
kWh of consumption is reasonable and will allow the Company to focus the efforts of the pilots
on customers with the capability to shift loads significant enough to gain valuable statistical
information. In addition, we find that the proposal to increase the price differential between peak
and off-peak use in the Time-of-Day pilot should provide valuable, and potentially more viable
ORDER NO. 30037
information on the responsiveness of customers to pricing differentials. However, it is our
understanding that the prices for mid-peak and on-peak usage will be different than that
proposed in the Company s Application. The pricing for off-peak will be as proposed in the
Application at $.045053, the mid-peak rate will be the same as the regular Schedule I , over 300
kWh rate of $.060936, and the on-peak rate will be $.083110.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application for authority
to continue its two time-of-use energy pricing pilot programs, Schedule 4 and Schedule 5 , is
granted.
IT IS FURTHER ORDERED that the pilot programs are authorized to continue for
an additional year. The Company s proposed changes and tariffs are approved, with the changes
mentioned above. The Company shall submit updated tariffs to reflect the changes.
IT IS FURTHER ORDERED that the Company is directed to work with Commission
Staff on developing an evaluation plan for the pilot programs, and to submit a final report to the
Commission upon completion of the pilot programs.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 9 61-
626.
ORDER NO. 30037
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 'to/it.
day of May 2006.
ATTEST:
~~~i~~ion Secretary
O:IPC-O6-05 dw3
ORDER NO. 30037
t&i
MARSHA H. SMITH, COMMISSIONER
OMMISSIONER