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Home My WebLink About200902022008 Energy Watch, Time-of-Day Report.pdfRECE.NE *SIDA~PO. An IDACORP company Courtney Waites Pricing Analyst i: 04 January 30, 2009 Ms. Jean D.Jewell, Secretary Idaho Public Utilties Commission P. O. Box 83720 Boise,ID 83720-0074 RE: Case No. IPC-E-07 -05 2008 Energy Watch and Time-of-Day Programs Annual Report Dear Ms. Jewell: Enclosed please find eight copies of Idaho Power Company's Energy Watch and Time-of-Day Programs Annual Report. This report is filed in compliance with Idaho Public Utilties Commission Order No. 30292. If you have any questions regarding this filing, you can contact me at 388-5612. ~ CW Enclosures c: Ric Gale P&RS Files Legal Files P.O. Box 70 (83707) 1221 W.ldaho St. Boise, 10 83702 .' . . HIDA~PO~" An IDACORP Company 2008 ENERGY WATCH ANDTIME-OF-DAY PROGRAMS ANNUAL REPORT January 30, 2009 Background On April 12, 2007, the Idaho Public Utilities Commission (IPUC) approved Idaho Power's application to continue offering on an ongoing basis two time-variant energy pricing programs for customers with Advanced Meter Reading (AMR) capability in the Emmett and Letha areas: the Energy Watch program and the Time-of-Day program. These two programs were initially approved as pilot programs in March 2005 and were authorized. by the Commission to continue through April 1, 2007. Program Descriptions Energy Watch - The Energy Watch program isa simplified critical peak pricing program in which customers pay a flat energy rate in June, July and August other than during Energy Watch events, when participants pay a significantly highetrate. The Energy Watch events can be called on up to ten weekdays between June 15 and August 15. If called, the Energy Watch event runs between the hours of 5:00-9:00 p.m. and the electricity rate increases to 20ct per kWh. During all other hours, participants pay a rate equal to the 0-300 kWh energy rate under Schedule 1. When an Energy Watch event is called, participants are notified by telephone and/or email by 4:00 p.m. the day preceding the Energy Watch event. The Company utilizes live operators for the notification call for the first Energy Watch event, notifying customers of the Energy Watch event date and times. After the initial Energy Watch event, the Company uses the autodialing system to deliver recorded messages about the next Energy Watch events. Time-of-Day - The Time-of-Day program has two seasons: the summer season and the non-summer season. The summer season runs June 1 through August 31 and has three pricing blocks. There are no time differentiated blocks for the non-summer season. . The following chart outlnes the time blocks and pricing used during the summer of 2008: Time-of-Day Program Summer Pricing 2008 Price Block Days Hours Cents/kWh On-Peak Mon - Fri 1 p.m. - 9 p.m.8.8683Ø I kWh Mid-Peak Mon - Fri 7 a.m. - 1 p.m.6.5148Ø I kWh Off-Peak Mon - Fri 9 p.m. - 7 a.m.4.8074Ø I kWh Off-Peak Sat, Sun, July 4th All hours 4.8074Ø I kWh On the Time-of-Use program, customers who shift their energy consumption from the daytime hours to the late evening and weekend hours are rewarded by paying the lowest rate for electricity. Program Enrollment In an attempt to increase participation in either program, the Company included information on the programs in a bil insert to the Emmett valley customers, advertised the program in the Emmett Messenger and held an in-store event at Albertson's, distributing information and answering customers' questions. As of September 2008, Idaho Power had 54 customers participating in the Energy Watch program and 81 . customers participating in the Time-of-Day program. Currently, about 75% of the customers currently enrolled in one of the programs have been participants since 2005 when the programs were first offered. Program Operation The Energy Watch and Time-of-Day programs were operated in the same way they were in previous years. The Company sent a letter to all program participants in May thanking them for participating and reminding customers of ideas to reduce energy usage during the summer months. Likewise, in May, bil inserts were sent to all customers living in the Emmett and Letha areas soliciting their participation in one of the programs. The Company continues to face the challenge of the manual intervention involved when moving a customer on or off of one of these programs. As has been noted in previous reports, this process requires a 'virtual' meter exchange within the Company's Customer Information System and is very time consuming for our Customer Service Representatives. However, the Meter Data Management System (MDMS) that required manual intervention during the 2005 and 2006 seasons passed acceptance testing in early 2007 and successfully validated, estimated, and aggregated the hourly meter data. For the Energy Watch program, Idaho Power's program managers met on a daily basis . between June 15th and August 15th to analyze forecasted temperatures and system load or supply side issues to determine if an event would be called the next day. The Page 2 of9 . Company called ten Energy Watch events between June1Sth and August1Sth. This year, five events were called in July and five were called in August, with two instances of consecutive events. The following is a list of the event days called: JUNE JULY AUGUST Julv 1st AUQust1st July 9th AUQust Sm July 1Sth Auaust 7'h July 24th Auaust14th July 2Sth August 1Sm When an event was called, an email was sent by 11 a.m. to those program participants who supplied an email address notifying them of the next day's scheduled event. This email also triggered the autodialing system which notified all program participants of the upcoming Energy Watch event by telephone. The following is a summary of the results by month of the telephone notification system that was completed by 4 p.m. on the day preceding an Energy Watch event:.Talked to a Live Message left to an No Customer Calls Placed Person Answering Machine Busy Answer Hung Up Other Jun-08 57 49 3 0 2 0 3 86%5%0%4%0%5% . Left Message w/a Live Message left toan No Customer Calls Placed Person Answering Machine Busy Answer Hung Up Other Jul-08 230 184 15 2 6 7 16 86%7%1%3%3%7% Aug"08 301 148 "89 5 8 18 33 49%29%2%3%6%11% Page 3 of9 . Program Results With the acceptance of the MDMSin 2007, Idaho Power was able to internally aggregate and analyze customer data for the 2008 summer season. The following is a review of the results of the Energy Watch and Time-of-Day programs. Energy Watch - In order to analyze the data of the Energy Watch customers, the customers' aggregate hourly usage for each of the days an Energy Watch event was called is graphed below. The chart details the load shape for the Energy Watch customers on event days. All 2008 Energy Watch Event Dates . ~ ~~~~!~~~~~~~~~~~~ ~ ~~~e ~~~M e ~e ~~~~ -W/Olj -0710/2 -07/l/200 -07/4/-"'/2 -081/20 -0I"-03/15/ As can be seen from the graph above, customers substantially reduced their load during the Energy Watch events.. Page 4of9 . . . To further analyze the data, the hourly usage for each day of an Energy Watch event was compared to the hourly usage for the day before and the day after the event. In addition, hourly usage was analyzed during a week in which two event days were called to understand the impacts on customers and how they may respond to two events in one week. The following two charts ilustrate these scenarios: Event Date: July 15th, 2008 ~~~~~~~~~~~~~~~~~~~~~~~~c:c:c:c:c:c:c:c:c:c:c:a.a.a.a.a.a.a.a.a.a.a.a.c:.-N rt 'd in lO "00 en 0 .-N .-N rt 'd in lO "00 en 0 .-N i I I I I I I I I .-.-.-i I I I I I I I I .-.-.-N .-N rt 'd in lO "00 I I I N .-N rt 'd in lO "00 ,,i.-en 0 .-.-en 0 .-.-.-.-.- -07/14/2008 - 07/15/2008 - 07/16/2008 Page 5 of9 Event Dates: August 5th and 7th, 2008 . :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :i :ic:c:c:c:c:c:c:c:c:c:c:ll ll ll ll ll ll ll ll ll ll ll ll c:.-N M o:in \D ,.00 ai 0 .-N .-N M o:in \D ,.00 ai 0 .-NiIIIIIIII.-.-.-i I I I I I I I I .-.-.-N .-N M o:in \D ,.00 I I I N .-N M o:in \D ,.00 I I I.-0'0 .-.-ai 0 .-.-.-.-.- -08/04/2008 - 08/05/2008 -08/06/2008 - 08/07/2008 - 08/08/2008 These charts clearly reflect that customers are reducing their usagedurin9 Energy Watch events. Time of Day -In order to analyze the data of the Time-of-Day customers, the total weekday hourly energy usage for the Time-of-Day customers during the 2008 summer season by month was totaled (excluding Independence Day). The chart below shows the total weekday usage by hour for each of the three summer months. Page 6 of9 . -. . . . 4500 4000 3500 3000 2500 2000 1500 1000 500 o Time. of Day: 2008 Season ~~~~~~c:c:c:c:c:c:m ..ir \0 "00,,,,,,N m ..ir \0 "N0........ Of-Peak Mid-Peak On.Peak Off-Peak -Total June -Total July - Total Aug To evaluate what impact the Time-of-Day rates had on customers' usage patterns during on-peak periods, the hourly usage data was grouped by on-peak, mid-peak and off-peak time periods and compared with the percent of energy consumed during each of those periods. Below is a summary of that data for 2008 weekdays (excluding Independence Day). Page 7 of9 . Time of Day Percent of Usage by Time Period . . On-Peak - Mid-Peak-Off-Peak To identify any changes in overall usage patterns, a comparison was made between the on-peak, mid-peak, and off-peak usage for 2006,2007, and 2008. The chart below summarizes the percent of total use by time period for each year. Period 2006 2007 2008 .. June On-Peak 21.6%27.7%38.1% Mid-Peak 17.7%16.7%25.8% Off-Peak 60.8%55.6%36.1% Julv On-Peak 20.7%28.9%43.1% Mid-Peak 14.2%14.9%22.4% Off-Peak 65.1%56.2%34.6% August On-Peak 22.8%31.1%43.1% Mid-Peak 16.7%17.1%22.5% Off-Peak 60.5%51.8%34.4%.. .. Page 8 of9 r . . . When compared to the total summer season time period usage in 2006 and 2007, the 2008 time period usage shows a significant shift of off-peak usage to on-peak. See the chart below. 70.0% 60~0% 50.0% 40.0% 30.0% 20~0% 10.0% On-Peak Off-Peak 0.0% Mid-Peak - 2008 - 2007 - 2006 Future of the Energy Watch and Time-of-Oay Programs The Energy Watch and Time-of-Day programs continue to provide the Company with valuable information regarding customers' responses to time-variant pricing. Consistent with the findings from previous analyses, Energy Watch program participants appear to reduce load during the Energy Watch events while it appears that Time-of- Day program participants do not engage in load shifting. The Company's ongoing objectives are to better educate customers on ways to reduce usage during high cost time periods, increase participation in both the Energy Watch and Time-of-Day programs, and reevaluate the differentials between the periods of the Time-of-Day program. Page 9 of9