20080708Quarterly Progress Report.pdf

*sIDA..PO.
An IDACORP company
4: 47
7/8/2008
Ms. Jean D. Jewell, Secreta
Idao Public Utilities Commission
P.O. Box 83720
Boise, il 83720-0074
RE: Performance-Based Demand-Side Management Incentive Pilot Quarrly Progress
Update, Case No. IPC-E-06-32
Dear Ms. Jewell:
Pursuat to Order No. 30268, please find the attched Performance-Based Demand-Side Management
Incentive Pilot Quarerly Progress Update for the first half of 2008.
If you have any questions regarding ths update, please feel free to contat me at 388-5515.
T-YL
Tim Tatum
Pricing Analyst
cc: Ric Gale
Pete Pengily
Theresa Drake
Becky Arte-Howell
P&RSlLegal Files
Pricing & Regulatory Services
Voice: 208-388-5515
Fax: [phone]
tttu~idaopower.com
P.O. Box 70 (83707)
1221 W.ldaho St.
Boise. 10 83702
Idaho Power Company
Performance-Based Demand-Side Management Incentive Pilot
Quarterly Progress Update
Year-To-Date June 30, 2008
Market Share Estimate
ENERGY STARiI Homes Completed1 130
Estimated Total New Single-Family
Homes2 1,837
1 st Half Market Share Estimate 7.1%
Notes:
(1) The number of ENERGY STAR Homes completed is based on the number of incentive payments
Idaho Power has issued year-to-date, June 30, 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 April 2008 and Idaho Power's records of new residential
service points added during the period.
Quarterly Incentive/Penalty Assessment. Under the Performance-Based Demand-Side
Management Incentive pilot approved by the Commission on March 12, 2007 (Order No. 30268),
Idaho Power is eligible to receive an incentive payment if the market share of homes constructed
under the ENERGY STAR Homes Northwest program in 2008 exceeds 9.8 percent of new single-
family homes completed in Idaho Power's service area in that year. Also under the pilot, a
financial penalty would be levied if Idaho Powets ENERGY STAR Homes Northwest program
fails to reach its 2006 market share achievement of five percent. An annual market share
achievement between five percent and 9.8 percent is considered to be within the "market share
dead-band" under the pilot where Idaho Power is neither eligible for an incentive nor subject to a
penalty. As can be seen in the table above, the market share estimate for the first half of 2008 is
7.1 percent. Idaho Power is taking measures to maximize its market share achievement for
ENERGY STAR homes in 2008. However, based upon the program's performance during the first
half of 2008, it is expected that the program will achieve an annual market share level within the
market share dead-band under the pilot. Therefore, the ENERGY STAR Homes Northwest
program is not currently expected to have a financial impact to the Company for 2008.
1
Preliminary Program Costs
Expense Category
Incentives
Evaluation
Labor
Marketing
Other Expense
Training
Staff Expense
Total
Year-To-Date
June 30, 2008
$ 96,450
3,976
41,698
25,698
(13,673)
(1,113)
1,550
$ 154,585
2