20080725Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL
DATE:JUL Y 22, 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 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 direct load control devices. The
Application states that during 2007 approximately 13 600 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 the Agreement to provide
an air conditioner cycling program on base housing similar to the Schedule 81 program, which is
available only to Schedule 1 residential customers. The Air Force Base is a Schedule 19 large
power service customer and provides electricity to approximately 1 100 individual residences on
base property. The Agreement allows qualified Air Force Base residences' air conditioners to be
cycled by Idaho Power much the same way as Schedule 81 currently operates. The Air Force
Base would receive a $7 per month credit for June, July, and August for each residence in the
program, but it would be a single, cumulative credit on the Air Force 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.
DECISION MEMORANDUM
Comments were filed by 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 does not object to implementation of the Air Conditioner Cycling Program at
Mountain Home Air Force Base.
CO MMISSI ON D ECISI
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 approved?
'-'-'~ /--~,
Weldon B. Stutzman
Deputy Attorney General
bls/M:IPC-O8-I2 ws2
DECISION MEMORANDUM