20071130Report for 2007.pdf

eslDA~PO.
An IDACORP compny
11/30/2007
Ms. Jean D. Jewell, Secreta
Idao Public Utilities Commission
P.O. Box 83720
Boise, il 83720-0074
~-£-ob-~~
RE: 2007 Irgation Peak Rewards Program Report
Dear Ms. Jewell:
Enclosed plea find eight copies of Idaho Power Company's Irigation Peak Rewards Progr Report
for 2007 filed in compliance with Order No. 30194. If you have any questions regarding the content of the
report please direct them to Pete Pengily at 208-388-2281 or feel fre to contact me at 208-388-5515.
Sincerely,L~
Tim Tatum
Pricing Analyst
cc: Ric Gale
Maggie Brilz
Pete Pengily
P&RSlLegal Files
Pricing & Regulatory Services
Voice: 208-388-5515
Fax: [phone]
ttatu~idahopower.com
P.O. Box 70 (B3707)
1221 W. Idaho St.
Boise. 1083702
............................................
~IDA~POR~.!'1. 2')(. .:.
AnlDACORP Company
rpC--E-6~-~~
Irrigation Peak Rewards
Program Report
December 1, 2007
............................................
Table of Contents
EXECUTIVE SUMMARy........ ............ ....... ... ..... ....... ...... ...... .............2
Summary of Results.........................................................................3
Conclusions.....................................................................................4
REVIEW OF PARTICIPATION, OPERATIONS, AND LOAD
REDUCTION..................................................................................... 5
Map 1.
Table 1.
Table 2.
Table 3.
Table 4.
Table 5.
Table 6.
Table 7.
Table 8.
List of Maps
Idaho Power service territory and regions .............................................................. 5
List of Tables
Service points by area ...............................................................................................;6
Service point interruption option distribution......................................................... 7
Equipment problem resolution ................................................................................. 8
Realization rates by period........................................................................................ 9
Enrolled load by area ...............................................................................................10
Average MW reduction utilzing realization rates by period ................................ 11
Program costs .......................................................................................................... 14
Benefit-cost model input ......................................................................................... 15
List of Graphs
Graph 1. Participant distribution in each area ........................................................................ 6
Graph 2. Average metered demand (kW)...............................................................................12
Graph 3. Average metered demand (kW) 2nd half of June ...................................................12
Graph 4. Demand impact on Company system load............................................................ 13
2007 Irrigation Peak Rewards Report Page 1
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EXECUTIVE SUMMARY
The Irrigation Peak Rewards Program ("the Program") is a voluntary demand
response program available to Idaho Power's agricultural irrigation customers
since 2004. The Program is designed to reduce peak load by turning off
participating irrigation pumps during peak demand hours through the irrigation
season in return for a financial incentive. Through this Program, the Company
has been successful in reducing load during the summer afternoon hours when
overall costs to provide energy are typically higher.
On September 18, 2006, Idaho Power ("the Company") filed with the Idaho
Public Utilities Commission (''the Commission") a request for authorization to
implement certain changes to the Program to improve participation. The first
proposed change was to increase the demand credits offered to participating
customers. Second, the Company proposed to allow more customers to
participate by decreasing the pump horsepower ("hp") limit from 1 00 hp to 75. On
November 30, 2006 the Commission approved the proposed changes through
Order No. 30194 and subsequently, the Company implemented the changes
during the 2007 irrigation season. The Commission's Order No. 30194 directed
the Company to file a report annually on December 1 for three years. This report
is to provide the Commission with the 2007 results of the Irrigation Peak
Rewards Program, and is filed in compliance with Order No. 30194.
The Program enrollment for 2007 was 947 service points across five geographic
regions of the Company's Idaho and Oregon service territories. Within these five
regions, there were 4,052 eligible metered service points with at least 100
cumulative hp. Another 800 service points were eligible with pumps ranging from
75-99 cumulative hp, with 75 hp being the minimum amount eligible under the
Program. Approximately 1,360 customers operated the 4,852 eligible service
points.
The 2004 Integrated Resource Plan ("IRP") set an initial load reduction target for
the Program of 30 MW. The 2006 changes to the Program were estimated to
achieve an additional 4.5 MW load reduction for a total of 34.5 MW at the
generation level, which is adjusted for line losses. At the customer level this
equates to an overall load reduction of 30.5 MW, which removes line losses. The
peak reduction numbers reported throughout the remainder of this report are
presented at the customer leveL.
2007 Irrigation Peak Rewards Report Page 2
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The Program utilizes pre-programmed, electronic, time-activated switches to turn
off pumps of participating irrigation customers during predetermined intervals in
exchange for a financial incentive. Customers can choose to participate one, two,
or three weekdays per week during the months of June, July, and August. The
following are the interruption options (reported in Mountain Standard Time)
available to customers with the corresponding incentive amounts:
· One weekday per week, 4 p.m. to 8 p.m.
· Two weekdays per week, 4 p.m. to 8 p.m.
· Three weekdays per week, 4 p.m. to 8 p.m.
$2.01 per kW Demand
$3.36 per kW Demand
$4.36 per kW Demand
The monthly incentive amount credited to customers was calculated for each
metered service point by multiplying the monthly biling demand for the months of
June, July, and August by the corresponding incentive amount based on the
interruption option selected by the customer.
Throughout 2007, the Company continued to share Program information and
progress with the Energy Efficiency Advisory Group ("EEAG") members through
program updates. Members of EEAG represent a cross-section of customer
interests including residential, industrial, commercial and agriculturaL. In 2007,
EEAG membership also included Company representation, Commission Staff
members and a representative from the Idaho Irrigation Pumpers Association.
Summary of Results
The following items summarize the key results of the Program on a system-wide
basis:
o In 2007 the Program achieved a maximum peak load reduction of 37.4
MW.
o Two hundred fifty-seven (257) customers, or 19% of the 1,360 eligible
customers, chose to participate in the Program.
o Nine hundred forty-seven (947), or 20%, of the 4,852 eligible metered
service points were enrolled in the Program.
o Of the 947 enrolled service points, fifty-five (55) were pumps with 75-99
hp. All other enrolled pumps were 100 hp or greater.
o The Program achieved a total billng demand enrollment of 182,499 kW.
The total billing demand is the sum of the maximum biling demand from
the previous irrigation season for each service point.
o The Program produces substantial and measurable impacts on peak
demand. The total load reduction from 4-8 p.m. associated with the
2007 Irrigation Peak Rewards Report Page 3
............................................
Program averaged 30.5 MW in June, 32.8 MW in July, and 23.5 MW in
August.
o The Program costs as of September 30,2007 were $1,591,374.
o The Program results show a 30 year average benefit cost (SIC) ratio of
1.10.
Conclusions
o The Company plans to continue the Program because it is a cost-effective
way to reduce customer demand at the optimal time of day.
o Changes to the Program implemented in 2007 increased the number of
participants and helped the Company to achieve its 2004 Integrated
Resource Plan (IRP) targets for peak load reduction.
o The Program achieved a maximum peak load reduction that occurred
during the last two weeks in June of 37.4 MW at the customer leveL. The
average peak reduction in July was 32.8 MW. The Program had a target
load reduction of 30.5 MW at the customer leveL.
2007 Irrigation Peak Rewards Report Page 4
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REVIEW OF PARTICIPATION, OPERATIONS, AND LOAD REDUCTION
1. Participation
Informational letters were mailed in February of 2007 to eligible customers. The
letters were the primary method of marketing the Program. Each customer letter
included a Program explanation, the Program's incentive structure, a listing of the
customer's eligible service points, and a Program application. In addition, a follow
up telephone call was made in March 2007 to all prior Program participants that
had not yet sent in their application. Significant effort, including customer visits,
was made to enroll as many customers as possible.
Map 1 portrays Idaho Power's service territory divided into five regional areas
("region"). The regions are titled Western, Canyon, Capital, Southern, and
Eastern. These regions wil be used throughout this report referring to Program
information.
Map 1. Idaho Power service territory and regions.
2007 Irrigation Peak Rewards Report Page 5
............................................
Graph 1 represents the distribution of Program participants by area.
Graph 1. Distribution of Participants.
Program Participation by Area
Western
3%
Eastern
53%Southern
35%
Table1 lists the total number of eligible service points and the participation levels
by area.
Table 1. Service points by area.
ELIGIBLE SERVICE ENROLLED
IDAHO POWER SERVICE POINTS PECENTAGE
REGION POINTS ENROLLED BY AREA
Western 215 28 13.0%
Canyon 343 27 7.9%
Capital 500 59 11.8%
Twin Falls 1197 121 10.1%
Southern
Mini-Cassia 1036 212 20.5%
Eastern 1561 500 32.0%
TOTAL SERVICE 4,852 947 19.5%POINTS
2007 I rrigation Peak Rewards Report Page 6
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Table 2 compares how the participating service points were distributed across
the Company's service territory, along with the interruption options for each area.
Table 2. Service point interruption option distribution.
INTERRUPT INTERRUPT INTERRUPT
OPTION 1 OPTION 2 OPTION 3
IDAHO POWER 1 2 3
REGION Daysleek DaysIWeek DaysIWeek TOTAL
Western 17 2 9 28
Canyon 17 3 7 27
Capital 38 7 14 59
Twin Falls 39 32 50 121
Southern
Mini-Cassia 152 30 30 212
Eastern 226 147 127 500
TOTAL SERVICE POINTS 489 221 237 947
2. Program Opt-out
During the 2007 irrigation season, ten (10) service points were removed from
Program participation after June 1 due to various unforeseen circumstances by
customers. Under the Program, if a service point is taken out of the Program
after June 1, the participant is assessed a fee of $100. This resulted in a total of
$1,000 which was credited to the Energy Efficiency Rider funding account to
offset the initial Program costs.
3. Interruption Failures
Electronic timers manufactured by Grasslin Controls Corp. (Model GMX-891-0-
24) were used to interrupt power to the customers' pumps during the interruption
period. The timers were installed in the pump motor control circuit to prevent the
pump from running during the interruption period. In order to meet the load
reduction targets of the Program, the Company tries to minimize interruption
failures. However, there were a small number of interruption failures discovered
in 2007. In most cases the failures were corrected quickly with little or no impact
to Program performance.
Most of the electronic timers operated without incident with less than three
percent of participants requesting a follow-up visit. The timer issues requiring a
follow-up visit are detailed in Table 3.
2007 I rrigation Peak Rewards Report Page 7
............................................
Table 3 lists the types of problems resolved by either Company personnel or the
contracted electricians.
Table 3. Known equipment problem resolutions.
ISSUE QUANTITY
Faulty time clock 11
Electrician troubleshooting calls 36
TOTAL 47
While each of the known timer related problems detailed in Table 3 were
resolved in a timely manner, a review of the Company's load research meter data
revealed that there were a number of failures that went undetected for the entire
irrigation season. Sixty-three (63) load research meters are distributed among
the 947 participating service points in order to study the usage patterns of the
customers and the load impact of the Program. The data showed that 94% of the
load research meters recorded successful interruptions throughout the 2007
Program year with 6% failing to record a single interruption during the Program
year. The interruption failures are evident in the load reduction graphs provided
in this report. Upon further investigation, it was found that these failures were due
to various mechanical problems. The Company continues to address this issue
through monitoring of load research data along with an increased number of site
visits for electronic timer inspections.
4. Load Reduction Achieved
The Program load reduction impacts were determined by utilizing information and
conclusions from the impact evaluation conducted in 2004 by Summit Blue
Consulting, LLC. This evaluation utilized load research meter data for both
Program participants and non-participants. This information was used in a
regression analysis to develop a statistical kW load modeL. The model
considered weather conditions, time of day, day of week, and month in
determining realization rates for six 2-week periods during the course of the
irrigation season. The Company has utilzed these realization rates since the
2005 season.
The realization rate is defined as the likelihood an irrigation service point is
operating during the interrupt period, and provides a clear picture of actual
program impacts. The realization rate can be characterized as simply the
percentage of monthly biling demand that is expected to result in an actual load
reduction on the system during a given interruption period. The realization rate is
highest at the end of June and the beginning of July when most irrigation pumps
are operating nearly 24 hours-a-day, 7 days-a-week. The realization rate is lower
later in the irrigation season when irrigation pumps are turned off due to crop
maturity.
2007 Irrigation Peak Rewards Report Page 8
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Table 4 shows the Program evaluation results from the Summit Blue impact
analysis for each of the six 2-week time periods. The highest realization rate
occurred during the second half of June, with a realization rate of 64%. The
lowest realization rate occurred during the second half of August, with a
realization rate of 32%. The average total realization rate is 50%. These
realization rates were used to calculate the program load reduction for this year.
The Company verified the realization rates prepared by Summit Blue for this
report using 2007 load research data. Based on past and current analysis of load
research data, the Company was able to reproduce an overall realization rate
within approximately 2% of the Summit Blue analysis results. Therefore, the
Company believes the realization rates from the Summit Blue analysis continue
to be a reliable and accurate means to estimate the Program's load reduction.
Idaho Power does not propose any changes to the realization rates at this time,
but wil continue to review the realization rates in the future.
Table 4. Realization rates by period.
Idaho Power
PERIOD Realization Rate
1st half of June 41%
2nd half of June 64%
1 st half of July 60%
2nd half of July 53%
1 st half of August 49%
2nd half of August 32%
AVERAGE 50%
The Company attempts to distribute the enrolled kW evenly throughout each
weekday. However, due to service point size variability, enrollment requests by
customers, and enrollment opt-outs, etc., the load cannot be exactly balanced.
The peak billing demand data for the months of June, July, and August 2007
were used to estimate the amount of load enrolled in the Program. The total
billng demand enrolled in the Program was 182,499 kW. Table 5 shows how the
enrolled load was distributed by region.
2007 I rrigation Peak Rewards Report Page 9
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Table 5. Enrolled load by area.
ENROLLED BILLING DEMAND KW* BY REGION
IDAHO POWER REGION 1 2 3 TOTALDayslWeekDaysIeekDaysIeek
Western 8,739 194 684 9,617
Canyon 2,276 327 497 3,100
Capital 14,749 805 1,985 17,539
Twin Falls 9,748 4,757 7,958 22,463
Southern
Mini-Cassia 34,121 7,019 6,213 47,353
Eastern 41,169 22,762 18,496 82,427
TOTAL SERVICE POINTS 110,802 35,864 35,833 182,499
*It is important to note that this billng demand level would be achieved only if 100% of the pumps
enrolled in the Program were all running at the scheduled interruption time.
2007 Irrigation Peak Rewards Report Page 10
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Table 6 shows the average MW reduction by day for each two week period
achieved utilizing the realization rates multiplied by enrolled peak kW.
Table 6. Average MW reduction utilizing realization rates by period.
Realization
Rate MON TUE WED THUR FRI kW
%(MW)(MW)(MW)(MW)(MWJ Average
1 st half of June 41 23.59 23.92 23.95 23.68 23.99 23.83
I2nd half of June 64 36.82 37.34 37.39 36.97 37.44 37.19
1 st half of July 60 34.52 35.01 35.05 34.66 35.10 34.87
I2nd half of July 63 30.50 30.92 30.96 30.62 31.01 30.80
1 st half of AUQust 49 28.59 28.59 28.62 28.30 28.67 28.48
I2nd half of August 32 18.41 18.67 18.69 18.48 18.72 18.60
As reported earlier, the Company has a sample of 63 load research meters
installed on participating service points. These meters are distributed similar to
participation rates for each area. This data was collected and analyzed and is
shown in the following graphs.
2007 Irrigation Peak Rewards Report Page 11
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Graph 2 displays the average hourly kW for all days in June, July, and August
and shows the average load reduction per participating metered service point
within the load research sample. The graphed data represents all interrupt days
in 2007.
Graph 2. Average metered demand (kW).
TOTAL LOAD REASEARCH DATA FOR 207
250
50
I--AWrage Interrpt Day I
200
3= 150..
&
¡
~ 100
1 2 3 4 5 6 7 8 9 10 11 12 13 1415 1617 181920 21 22 2324
Time of Da (hr)
Graph 3 displays the average hourly kW for all days in the second half of June
and shows the average load reduction per participating metered service point
within the load research sample. The graphed data represents all interrupt days
in the second half of June 2007.
Graph 3. Average metered demand (kW) 2nd half of June.
2nd HALF OF JUNE 2007 LOAD RESEARCH DATA
250
50
I--AWrage Interrpt Day I
200
~ 150
&lI
~ 100ci
o
o 2 3 4 5 7 8 9 10 12 13 14 15 17 18 19 20 22 23 24
Time of Day (hr)
2007 Irrigation Peak Rewards Report Page 12
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Another way to view program impact is to look at total system firm load data. The
system firm load during the summer months has the greatest electrical demand
of the year. The highest peak load historically occurs in late June or July between
4-8 PM.
Graph 4 represents the demand response impact to the entire company system
firm load on various days in July 2007. The reduction in system firm load occurs
at 4 PM for the corresponding days and is approximately 30-40 MW for each day.
Graph 4. Demand response impact on Company system firm load.
Program Impacts on System Load
3,200
3,100
3,000
:i 2,900e'g 2,800
.9 2,700
E 2,600
i 2,500tJ2,400
2,300
2,200
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..ç;~ ....~ ..lì~ ,,~ rt~ rs~ t;~ (¡:? 6~ A\~- qj~ ($': ..ç;': ....~- ..it~
Time
-3-Jul-07
-5-Jul-07
-10-Jul-07
2007 Irrigation Peak Rewards Report Page 13
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COST EFFECTIVENESS
1. Program Costs
Table 7 displays the annual Program costs as of September 30,2007. Program
costs remain consistent on a year to year basis, except that in 2007 increased
customer participation and a higher number of service points enrolled in the
Program under Option 2 and Option 3 resulted in a higher number of incentives
paid to customers.
Table 7. Program costs.
ITEM PROGRAM COSTS
Electronic timers $63,350.23
Contracted electricians $85,521.87
Incentive payments $1,376,025.98
Marketing and
Administration $66,476.31
TOTAL $1,591,374.39
2007 Irrigation Peak Rewards Report Page 14
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2. Benefit-Cost Analysis
The 2007 Peak Rewards Program results were applied to the cost-effectiveness
model that was used when the Program was developed. Table 8 summarizes the
inputs that were used in the cost effectiveness modeL. The Program results
yielded a 30-year average benefit-cost ratio of 1 .10.
Table 8. Benefit-cost model inputs
DESCRIPTION INPUT
Number of metered service points 947
Overall program realization rate 50%
Average service point, billng kW (peak month)193
Enrolled peak, kW 182,499
Average July peak reduction (MW)32.8
Participant distribution by area
Western 3%
Canyon 3%
Capital 6%
Southern 35%
Eastern 53%
Service point interruption option
1 day per week 52%
2 days per week 23%
3 days per week 25%
Actual Proaram Cost (as of Sep. 30, 2007)$1,591,700
2007 Irrigation Peak Rewards Report Page 15