20080414Quarterly Progress Report.pdf

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An IOACORP company
4/11/2008
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Ms. Jean D. Jewell, Secreta
Idaho Public Utilities Commission
P.O. Box 83720
Boise, il 83720-0074
RE: Performance-Based Demand-Side Management Incentive Pilot Quarterly Progress
Update
Dear Ms. Jewell:
Pursuant to Order No. 30268, please find the attched Performance-Based Demand-Side Management
Incentive Pilot Quarerly Progress Update for the first quarer of2008.
If you have any questions regarding this update, please feel free to contact me at 388-5515.
¡IÆ-
Tim Tatum
Pricing Analyst
cc: Ric Gale
Greg Said
Pete Pengily
P&RS/Legal Files
Pricing & Regulatory Services
Voice: 208-388-5515
Fax: [phone]
ttatum~idahopower.com
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. 1083702
Idaho Power Company í:
Performance-Based DSM Incentive Pilot
Quarterly Progress Update lfiUn APR \\ Prí 4: 35Year-To-Date March 31, 2008 ¿Jk~~\~Slm\
Market Share Estimate
ENERGY STARiI Homes Completed1 81
Estimated Total New Single-Family
Homes2 . 621
1 st Quarter Market Share Estimate 13.0%
Notes:
(1) The number of ENERGY STAR Homes completed is based on the number of incentive payments
Idaho Power has issued year-to-date, March 31,2008.
(2) The estimate of total new homes is based on a combination of data from the most recent Wells
Fargo Idaho Construction Report dated December 2007 and Idaho Powets records of new
residential service points added during the period.
Quarterly Incentive/Penalty Assessment. Idaho Power wil be eligible for an incentive payment
under the pilot in 2008 if the ENERGY STAR Homes Northwest program achieves an annual
market share above 9.8 percent of total new single-family homes built in the company's service
area. As can be see in the table above, the market share estimate for the first quarter of 2008 is
13 percent. The first quarter market share level should not be viewed as an indicator of the
expected annual market share achievement under the pilot. The first quarter market share level is
likely artificially high due to the seasonality of new home construction combined with the lag time
between the recording of new residential homes in Idaho Power's customer database and the
associated requests for incentive payments under the program. On an annual basis, these factors
should be far less impactful to the market share calculation. While Idaho Power intends to
maximize its market share achievement for ENERGY STAR homes in 2008, it is likely that the
program wil achieve an annual market share level for 2008 that is lower than the first quarter
market share estimate.
Preliminary Program Costs
Expense Category
Incentives
Labor
Marketing
Other Expense
Training
Staff Expense
Total
151 Quarter 2008
$ 61,500
22,399
14,421
(14,143)
71
397
$ 84,645