20070412final_order_no_30292.pdf

Office of the Secretary
Service Date
April 12 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO IMPLEMENT TIME-
V ARIANT ENERGY PRICING PROGRAMS ORDER NO. 30292
CASE NO. IPC-07-
On February 28, 2007, Idaho Power Company filed an Application seeking authority
to implement two time-variant energy pricing programs for customers in the Emmett and Letha
Idaho vicinities (Emmett Valley). On March 15, 2007, the Commission issued a Notice of
Application and Modified Procedure establishing a comment deadline of AprilS, 2007. The
only comments received were those of Commission Staff recommending approval of the
Application. With this Order the Commission approves the Company s Application as more
fully set forth below.
THE APPLICATION
The two time-variant pricing programs, Energy Watch and Time-of-Day, were
previously approved as pilot programs in March 2005 , and authorized to continue through April
, 2007. See Order No. 30037, Case No. IPC-06-05. The two pilot programs were available
to customers in the Emmett Valley who had AMR metering installed. Under both pilot
programs, the pricing for energy consumption during the months of June, July, and August
included a time-variant component. For all other months, the pricing was identical to that for
standard residential service under Schedule 1. The Company states that it wishes to continue
offering these programs to customers in the Emmett Valley, allowing continued evaluation and
refinement of the programs and internal systems required to run them.
The Company states that it filed reports with the Commission detailing the results of
the pilot programs' operation. A report for the first year of operation was filed on March 29
2006, and a report for the second year of operation was filed on February 28, 2007. The
Company requests that the Commission take administrative notice of those filings in this
proceeding. The analysis from those reports shows that: Overall, the participants in the pilots
were satisfied with the programs; on average, customers benefited (saved money) by
participating in the programs; on average, the participants reduced household energy demand;
and customer retention in the programs was relatively high. The Company states that based upon
ORDER NO. 30292
the results of the pilot programs, including the high level of customer satisfaction, it is proposing
to maintain the same program design and pricing going forward as that implemented for the
pilots during the summer of 2006.
THE PROGRAMS
Under the Energy Watch Program, Schedule 4, customers will pay a substantially
increased flat rate for energy consumption during a designated Energy Watch Period. Energy
Watch Periods will be determined by the Company. Program participants will be notified of the
declared Energy Watch Period by 4:00 p.m. the day ahead by telephone and, where available, by
e-mail. Energy Watch Periods can occur on any weekday from June 15 through August 15, and
will be for the hours of 5:00 p.m. to 9:00 p.m. The Company proposes that the Energy Watch
Periods will occur on no more than 10 days from June 15 to August 15 , for a total of 40 hours.
The base energy rate for the Energy Watch Program will be equal to the first block Energy
Charge under Schedule 1 , currently 5.4251~ per kWh. During Energy Watch Periods the
proposed base energy rate is 20 cents per kWh. The over-300 kWh pricing block will be
eliminated. Customers participating in the Energy Watch Pilot Program will continue to pay the
monthly service charge of $4.00.
Under the Time-of-Day Program, Schedule 5, customers will be given the
opportunity to reduce their electric bills by shifting their summer usage, based upon three
different price categories, from "on-peak" periods, when the cost to provide energy is highest, to
the "off-peak" periods, when the cost to provide energy is the lowest. During the non-summer
season, the pricing will be the same as that under Schedule 1 , currently 5.4251~ per kWh. The
three time-of-day periods for the summer season are defined and priced as follows:
Time-or-Day Period Definition Energy Rate
On-Peak 1 :00 p.m. to 9:00 p., Monday through Friday 8.3279~ per kWh
Mid-Peak 7:00 a.m. to 1:00 p., Monday through Friday 060~ per kWh
Off-Peak 9:00 p.m. to 7:00 a.m. on all days and all hours 5145~ per kWh
on Saturday, Sunday, and the Fourth of July
The summer and non-summer seasons are defined the same as under Schedule 1
with the summer season beginning June 1 and ending August 31. Customers participating in the
Time-of-Day Pilot Program will continue to pay the monthly service charge of $4.00.
ORDER NO. 30292
STAFF COMMENTS
Staff reviewed the Company s Application as well as the Year Two Final Report on
the Pilot Programs in Case No. IPC-06-05. Staff agreed with the Company that additional
questions and issues remain, particularly with the integration of the AMR meter data into the
Company s billing procedures and operations, that could benefit from continued operation of the
pilot programs prior to a more widespread implementation. Staff recommended that the
Commission grant the Company s Application to continue both programs, and that the Company
be directed to file annual progress reports on the programs by the end of January each year.
DISCUSSION/FINDINGS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application, and the issues involved in this case by virtue of Title 61 , Idaho Code, including
Idaho Code ~~ 61-129, 61-328, 61-501 through 61-503 , 61-507, 61-523 , 61-524, and the
Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. A formal hearing is not required
and we continue to find it appropriate to process this case by Modified Procedure. IDAP
31.01.01.201-204.
After examining the Company s reports on the pilot programs, as well as the files and
records to date for this matter, we find it reasonable to grant the Company s request for
authorization to "implement" time-variant energy pricing programs. This authorization will
essentially continue both the Schedule 4, Energy Watch, and Schedule 5, Time-of-Use, pilot
programs indefinitely. As we have stated previously with the authorization and continuation of
these pilot programs, we believe the time-of-use pricing pilots are important programs with
potential benefits to both customers and the Company. Continued development and further
evaluation is needed prior to expanding these programs beyond the pilot phase and extending this
technology to more of the Company s service area. We expect that these programs will continue
to be operated with the expectation that time-variant pricing will be implemented system wide.
Idaho Power shall file an annual report with this Commission detailing the previous year
progress.
ORDER
IT IS HEREBY ORDERED that Idaho Power s Application seeking authority to
implement two time-variant energy pricing programs is approved. The Company shall file
annual reports by the end of January detailing the previous year s progress for both programs.
ORDER NO. 30292
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 9 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this / f)...
rI'
day of 2007.
RSHA H. SMITH, COMMISSIONER
ATTEST:
~ell
Cbmmission Secretary
O:IPC-O7-0S dw2
ORDER NO. 30292