20080620Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL
DATE:JUNE 17, 2008
SUBJECT:CASE NO. IPC-08-
IDAHO POWER'S APPLICATION FOR APPROVAL OF AN AIR
CONDITIONER CYCLING PROGRAM AGREEMENT FOR MOUNTAIN
HOME AIR FORCE BASE
On May 23 , 2008, Idaho Power Company filed an Application requesting
Commission approval of an Air Conditioner Cycling Program Agreement for Mountain 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 600 customers participated in the program, and the Company estimates
it 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 the Air Conditioner Cycling Program on 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.Approximately 100 individual
residences are on base property and are served through Mountain Home Air Force Base
Schedule 19 service.
The Agreement provides for Air Force 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 Air
Force Base s September bill at the end of the air conditioning season.
DECISION MEMORANDUM
Idaho Power asks that its Application for approval of the Agreement with Mountain
Home Air Force Base to provide an Air Conditioner Cycling Program be processed by Modified
Procedure.Staff recommends that Idaho Power s Application be processed by Modified
Procedure with a 21-day comment period.
COMMISSION DECISION
Should the Application of Idaho Power for approval of an Agreement to offer an Air
Conditioner Cycling Program on Mountain Home Air Force Base be processed by Modified
Procedure?
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Weldon B. Stutzman
Deputy Attorney General
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DECISION MEMORANDUM