20070309Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:MARCH 9, 2007
SUBJECT:IDAHO POWER'S APPLICATION TO IMPLEMENT TIME-VARIANT
PRICING PROGRAMS, 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). The Company requests that its Application be processed by
Modified Procedure. Staff also recommends Modified Procedure.
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
DECISION MEMORANDUM
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
the results of the pilot programs, including the high level of customer satisfaction, that it is
proposing to maintain the same program design and pricing going forward as that implemented
for the pilots during the summer of 2006.
STAFF RECOMMENDATION
Staff has read the Company s Application and received the Year Two Final Report
on the Pilot Programs in Case No. IPC-06-05. Staff recommends that the Commission grant
the Company s request to process this case by Modified Procedure with a standard comment
period of 21 days.
CO MMISSI ON D ECISI 0 N
Does the Commission wish to process the Company s Application by Modified
Procedure with a 21-day comment period?
j;L JW,
,--
Donovan E. Walker
DECISION MEMORANDUM