20070625final_order_no_30350.pdf

Office of the Secretary
Service Date
June 25, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF COMMUNITY ACTION
PARTNERSHIP ASSOCIATION OF IDAHO,
INC. AND IDAHO POWER COMPANY FOR
AUTHORITY TO CONTINUE THE
PRESENT FUNDING LEVEL FOR
WEATHERIZATION ASSISTANCE
AUTHORIZED BY ORDER NO. 29505
CASE NO. IPC-07-
ORDER NO. 30350
On April 9, 2007, Idaho Power Company and the Community Action Partnership
Association of Idaho (CAP AI) filed a Joint Application seeking Commission authorization for
Idaho Power to continue its Weatherization Assistance Program previously authorized in the
Company s 2004 general rate case. Order No. 29505 at 32. CAP AI represents the Community
Action agencies that administer weatherization programs for electric utilities in Idaho. The
Commission set Idaho Power s weatherization funding at $1.2 million per year and required
CAP AI to file an application with the Commission if it desired to extend the funding beyond
June 1 2007. Id. at 33.
On April 26, 2007, the Commission issued a Notice of Application and Modified
Procedure. In its Notice, the Commission invited interested persons to file written comments
regarding the parties' Joint Application. The Commission received comments from the
American Association of Retired Persons (AARP-Idaho), the Idaho Community Action Network
(ICAN), the Commission Staff and four members of the public. After reviewing the Joint
Application and the comments, the Commission approves the continuation of weatherization
funding.
THE APPLICATION
Idaho Power provides funding to designated community agencies to weatherize
.electrically-heated homes occupied by eligible low-income customers and buildings occupied by
non-profit organizations. Application at 2. Idaho Power s program, called Weatherization
Assistance for Qualified Customers (W AQC), is administered through five Idaho and three
Oregon community agencies. Id. The W AQC program enables low-income families to
permanently reduce their energy bills by making their homes more energy efficient. For
ORDER NO. 30350
example, energy conservation measures may include insulation, caulking, efficient windows
timed thermostats, CFL bulbs, and repairs.
The Applicants report that 655 homes were weatherized in 2004 and 2005 with an
estimated energy savings of more than 3 million kWh. According to the Company s 2006
Weatherization Report, Idaho Power funded 540 weatherization projects (538 residences and 2
non-profit units). The average cost of installing conservation measures per residence was
205. Report at 3. Idaho Power s total expenditures for calendar year 2006 were $1.344
million. Application at 3. Idaho Power reported that it saved 2.958 MWh in 2006.
Idaho Power s weatherization program includes all eligible conservation measures
approved by the V.S. Department of Energy. To ensure that each project is cost-effective, Idaho
Power requires that each job have a "savings-to-investment ratio" (SIR) of 1.0 or better. For its
2006 projects, the average SIR value per residence was 2.45. Report at 7. During the last three
years, Idaho Power has funded nearly 1 400 weatherization projects.
CAP AI and Idaho Power assert that continuation of the weatherization program is in
the public interest and will enable "additional low-income families to permanently reduce their
energy bills by making their homes more energy efficient." Application at 4. The Applicants
further state that continued annual funding of the $1.2 million will benefit all of Idaho Power
customers by reducing the overall demand for energy.
THE COMMENTS
1. AARP. AARP-Idaho supported the extension of the weatherization program
because "there is a clear need for weatherization programs which help reduce energy usage, and
thus energy bills, for qualified households." Comments at 1. V sing data from the 2000 Census
the Association estimated that more than 2 100 Idaho households have incomes of less than 50%
of the poverty rate. Id. Based upon 2006 energy prices, AARP calculated that these Idaho
households pay nearly 40% of their income on energy bills. AARP also noted that other sources
of energy assistance such as the Low Income Home Energy Assistance Program (LIHEAP) fall
short of serving all the eligible households in Idaho. AARP concluded that the weatherization
program has saved "more than 7 million kWh, at a savings-to-investment ratio far in excess of
the standard set by the Commission in the (2004) rate case.Id. at 2. For these reasons, the
Association supported the continued funding of the W AQC program.
ORDER NO. 30350
2. ICAN. ICAN also supported continued funding of the program. ICAN stated that
the weatherization program works well with LIHEAP in that weatherizing low-income
residences stretches the available LIHEAP revenues. ICAN recommended that the funding for
Idaho Power s weatherization program be increased to $2 million per year so that more eligible
households may participate in the weatherization program. Comments at 1. Increasing the
funding would allow Idaho Power to "clear the back log of applicants waiting for assistance, and
. . . open the program to more people who need it." Id.
3. Commission Staff.The Staff recommended that the Commission approve the
parties' request to continue operation of the W AQC program at the existing annual funding level
of $1.2 million. During the last three years, Staff estimated that the weatherization program has
saved more than 6 million kWh. During this time, Staff determined that the savings-to-
investment ratio per home (including the cost of health and safety measures) is approximately
5 with a median value of more than 2.0. Comments at 3.
Because the weatherization program costs are specifically included in current rates
Staff recommended that the existing procedures for booking program expenditures and the
carryover of unused funds should be continued. Id. at 4. Staff noted that the carryover of
unexpended funds from one year to another h.elps ensure that the targeted funds actually get
spent on the weatherization program. Staff also recommended that the Company continue to file
a separate annual report for the W AQC program.
Staff commented that it expected the Company and CAP AI to continue working
together to modify the weatherization program to meet changing needs and conditions. Staff
also observed that it may be possible to use the weatherization program as a vehicle for
delivering other demand side management programs such as compact fluorescent light (CFL)
bulbs and efficient appliances. Id. at 4.
Finally, Staff recommended that the Company include the major .elements of the
weatherization in a tariff so that the Community Action agencies and the public may obtain
information about how the program is operated. Id. at 5. Unlike Avista and Rocky Mountain
Power, Idaho Power does not have a tariff for its weatherization program.
4. Public Comments. The Commission also received two public comments urging
continuation of the weatherization program. In particular, one commenter noted that the
ORDER NO. 30350
weatherization program enhances "the quality of life" for families who do not have the financial
resources to make their homes more livable.
Two other comments objected to the $1.2 million funding for the weatherization
program. One commenter urged that tighter controls be placed on how the money is allocated
and that the CAP agencies should verify the household income for eligible participants. Given
the Company s request for a rate increase, the other customer recommended that annual funding
for the weatherization program should be reduced to its former lev.el of $200 000.
DISCUSSION
After reviewing the Joint Application and the comments, we find that it is reasonable
for Idaho Power to continue funding the weatherization program at $1.2 million per year.
both AARP and ICAN noted, the weatherization program works hand-in-hand with the annual
LIHEAP energy assistance program. With a savings-to-investment ratio of 2., the program has
demonstrated that it is a cost effective means of implementing conservation measures and
promoting energy efficiency. We further find that Idaho Power should continue to carryover any
unexpended funds from one year to another and track payments to CAP agencies in a separate
balancing subaccount.
We further find that there is merit in Staffs suggestion that Idaho Power dev.elop a
tariff addressing its weatherization program. We direct the Company to develop a
weatherization tariff that addresses the major elements of the program including general
eligibility, allowable energy conservation measures and program structure.
ORDER
IT IS HEREBY ORDERED that the Joint Application filed by Idaho Power and
CAP AI for continued funding of the weatherization program is granted. Idaho Power shall
continue its annual funding of this program at $1.2 million per year.
IT IS FURTHER ORDERED that Idaho Power continue to book payments to CAP
agencies in a separate balancing subaccount. Any unused weatherization funds shall be carried
over to the following year. Idaho Power shall also continue to file its separate annual report for
the W AQC program.
IT IS FURTHER ORDERED that the Company file a weatherization tariff devoted
to the W AQC.
ORDER NO. 30350
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-07-
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 or in interlocutory Orders previously issued in
this case. 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 ofthe Idaho Public Utilities Commission at Boise, Idaho this .2.5'fJ...
day of June 2007.
/21~
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
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ATTEST:
/kfJ
iD. Jewell
tAmission Secretary
bls/O:IPC-O7-09 dh2
ORDER NO. 30350