20081008Quarterly Progress Report.pdf

glDAREiM~n~
10/08/2008
Ms. Jean D. Jewell, Secretai
Idaho Public Utilties Commission
P.O. Box 83720
Boise, il 83720-0074
RE: Performance-Based Demand-Side Management Incentive Pilot Quarterly Progress
Update, Case No. IPC-E-06-32
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 three quarters of2008.
If you have any questions regarding this update, please feel free to contact me at 388-5515.
lY/L
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]
ttatum(Ðidahopower.com
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
Idaho Power Company
Performance-Based Demand-Side Management Incentive Pilot
Quarterly Progress Update
Year-To-Date September 30,2008
Market Share Estimate
ENERGY STAR~ Homes Completed1 165
Estimated Total New Single-Family
Homes2 2,756
3rd Quarter Market Share Estimate 6.0%
Notes:
(1) The number of ENERGY STAR Homes completed is based on the number of incentive payments
Idaho Power has issued year-to-date, September 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 July 2008 and Idaho Powets 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 Power's ENERGY STAR Homes Northwest program
fails to reach its 2006 market share achievement of 5.0 percent. An annual market share
achievement between 5.0 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 third quarter of 2008
is 6.0 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
three quarters of 2008, it is expected that the program wil 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
Sept. 30, 2008
$ 115,150
4,660
56,160
40,310
(13,562)
(323)
3,659
$ 206,054
2