20080805final_order_no_30614.pdf

Office of the Secretary
Service Date
August 5, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER AUTHORIZING AN AIR
CONDITIONER CYCLING PROGRAM
AGREEMENT FOR MOUNTAIN HOME AIR
FORCE BASE
ORDER NO. 30614
CASE NO. IPC-08-
On May 23 , 2008, Idaho Power Company filed an Application requesting
Commission approval of an Air Conditioner Cycling Program Agreement for Mountain Home
Air Force Base. Idaho Power currently operates a residential air conditioning cycling program
under tariff Schedule 81. The program is an optional service that allows the Company to cycle
participating customers' central air conditioners by use of a direct load control device. During
2007, approximately 13 600 customers participated in the program, and the Company estimates
the program reduced demand in July 2007 by an estimated 10.8 MW.
Idaho Power and Mountain Home Air Force Base executed an Agreement to provide
for an Air Conditioner Cycling Program for base housing. It would apply only to residential
customers who take service pursuant to Schedule 1 , although the Air Force Base is a large power
service customer taking service from one service point under Schedule 19. Approximately 1 100
individual residences are on base property and are served through the Base s Schedule 19 service
meter. The Agreement provides for Base residences to participate in the program much the same
way as is currently offered under Schedule 81. The customer would receive a $7 per month
credit for June, July, and August. Because the Air Force Base is a single customer with multiple
residences, however, the Agreement provides for a cumulative credit on the Base s September
bill at the end of the air conditioning season.
On June 25 , 2008, the Commission issued a Notice of Application and Notice of
Modified Procedure to establish a period for interested parties to file written comments.
Comments were filed by the Mountain Home Air Force Base Energy Manager, who supports the
program, and the Commission Staff, who expressed reservations but stated no objection to the
program. Staff was critical of an apparent lack of analysis of the program by Idaho Power, and
questioned whether the Company had adequately considered a possible reduction in the Base
ORDER NO. 30614
demand charges in addition to the $7 monthly credit to be paid to participating residential
customers. Idaho Power filed late comments on July 24, 2008, responding to Staffs concerns.
The Air Conditioning Cycling Program agreed to by Idaho Power and Mountain
Home Air Force Base closely mirrors the existing program offered to residential customers under
Schedule 81. That program has been demonstrated to be cost-effective and an efficient way to
shave demand during peak periods. Idaho Power is confident a similar program for the Air
Force Base will yield similar results. The Company plans to install data logger devices at
customers' air conditioning units to obtain information needed to evaluate the program after it
has operated for a period of time.
The Commission is pleased with this expansion of the existing program. We find it
reasonable and appropriate to approve the Agreement submitted by Idaho Power for an Air
Conditioning Cycling Program for Mountain Home Air Force Base. Although the differences
between the existing Schedule 81 program and the Air Force Base program justify careful
analysis of the program results, we anticipate the Base program will be effective in reducing
demand during the summer peak periods. The Company and Staff should review the program
results and evaluate its overall effectiveness.
ORDER
IT IS HEREBY ORDERED that the Agreement to offer an Air Conditioner Cycling
Program on Mountain Home Air Force Base, submitted by Idaho Power Company, is approved.
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. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30614
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this Sri-
day of August 2008.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
ft:FJ
. D. Jewell
Co missIOn Secretary
bls/O: IPC-08-12 - ws2
ORDER NO. 30614