20090316Application.pdf

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IDA~POR~
An IDACORP Company
LISA D. NORDSTROM
Senior Counsel
March 13,2009
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-09-05
IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY
FOR AUTHORITY TO REVISE THE ENERGY EFFICIENCY RIDER, TARIFF
SCHEDULE 91.
Dear Ms. Jewell:
Enclosed for filing please find an original and seven (7) copies of the Company's
Application in the above matter.
In addition, enclosed are nine (9) copies of the testimony of Timothy Tatum filed in
support of the Application. One copy of his testimony has been designated as the
"Reporter's Copy." Also enclosed is a disk containing a Word version of Mr. Tatum's
testimony.
In addition, three (3) copies of the Company's press release have been enclosed.
Finally, I would appreciate it if you would return a stamped copy of this letterfor my
file in the enclosed stamped, self-addressed envelope.
Very truly yours,
J;d-fJ.0J ~
Lisa D. Nordstr~J.'
LDN:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, to 83702
LISA D. NORDSTROM, ISB #5733
BARTON L. KLINE, ISB #1526
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
LNordstrom(Çidahopower.com
BKline(Çidahopower.com
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2009 M~,R \3 PM 4: 03
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Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MA TIER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO REVISE THE ENERGY
EFFICIENCY RIDER, TARIFF
SCHEDULE 91.
)
) CASE NO. IPC-E-09-05
)
) APPLICATION
)
)
Idaho Power Company ("Idaho Powet' or "the Company"), in accordance with RP
052 and RP 201 , et seq., hereby respectfully makes application to the Idaho Public Utilties
Commission (the "Commission") for an Order approving an increase to the Energy
Effciency Rider, Tariff Schedule 91, from 2.5 percent to 4.75 percent of base revenues
effective June 1, 2009.
In support of this Application, Idaho Power represents as follows:
I. RIDER BACKGROUND
1. In Order No. 28722 issued in Case Nos. IPC-E-01-07 and IPC-E-01-11, the
Commission directed Idaho Power to develop and file a comprehensive Demand-Side
APPLICATION - 1
Management ("DSM") program to provide customers with opportunities to reduce their
electric consumption. In filings that became part of Case No. IPC-E-01-13, the Company
identified a number of potential DSM programs that could be implemented to assist
customers in reducing their bils and proposed that the expenditures for the analysis and
implementation of energy conservation programs be funded through a charge known as
the Energy Effciency Rider ("Ridet').
2. On November 21, 2001, the Commission issued Order No. 28894 that
directed the Company to implement limited DSM programs for the 2001-2002 winter
heating season but postponed consideration of funding of DSM programs until the
Company's 2002-2003 PCA filing was made in the spring of 2002. The Commission also
instructed Idaho Power to organize an Energy Effciency Advisory Group ("EEAG")
comprised of members from the Company's customer groups, special interest groups,
Commission Staff, and Company personnel to advise the Company on the implementation
of long-term DSM programs.
3. The Commission issued Order No. 29026 on May 13, 2002, authorizing the
implementation of the Energy Effciency Rider as a means to fund DSM programs. The
Rider amount targeted for each customer class was approximately equal to 0.5 percent of
overall class revenue. It was imposed as a flat $0.30 per-month charge to residential
customers and as a cents-per-kilowatt-hour charge for all other customer classes. The
Rider for irrigation customers was capped at a maximum of $15.00 per meter. Although
the Rider would provide approximately $2.6 millon annually for DSM measures, the
Commission recognized "that this initial amount of funding may not be adequate to support
some programs that could be very beneficial" and stated "this amount may be increased in
APPLICATION - 2
the future if necessary to take advantage of other cost-effective DSM measures as
circumstances warrant." Order No. 29026 at 20-21.
4. In Case No. IPC-E-04-29 filed in December 2004, the Company requested
authority to increase the Rider to 1.5 percent of base revenue applied uniformly to all
customer classes. The Commission issued Order No. 29784 on May 13, 2005, authorizing
the current Rider amount of 1.5 percent of base revenues with a monthly funding cap of
$1.75 for residential customers and a cap of $50 per meter per month for irrigation
customers. The Commission stated that "implementing these two caps wil moderate the
Rider increases for residential and irrigation customers, while providing significant funds to
the Company's DSM programs for the next 12 months." Order No. 29784 at 5.
5. On March 14,2008, the Company requested authority to increase the Rider
to 2.5 percent of base revenue applied uniformly to all customer classes, which the
Commission docketed as Case No. IPC-E-08-03. The Commission issued Order No.
30560 on May 30, 2008, authorizing the current Rider percentage of 2.5 percent of base
revenue applied uniformly to all customer classes, which became effective on June 1,
2008.
II. ENERGY EFFICIENCY SAVINGS
6. Since the Rider was instituted in 2002, Idaho Power has implemented and/or
manageq a broad array of cost-effective DSM programs and energy efficiency initiatives.
,
:,
DSM pro~rams are considered to be cost-effective when energy savings and/or demand
!
reductionl can be achieved at a lower cost than the next best resource alternative. Thesei
:I
program~ benefit customers two-fold with opportunities to lower individual bils and also
iIreduce thle Company's collective rates by minimizing the need to generate additional power
I
iAPPLICATION - 3
i
or buy power from the market. As described in greater detail in the 2008 DSM Annual
Report included as Exhibit NO.1 to the testimony of Timothy E. Tatum that accompanies
this Application, in 2008, Idaho Power offered the following Rider-funded programs to
specific customer classes:
2008 DSM Programs, Sectors, and Operational Type
Program Sector Operational Type
AlC Cool Credit Residential Demand Response
Attic Insulation Pilot Residential Energy Effciency
Building Effciency Program Commercial/Industrial Energy Effciency
Commercial Education Other Programs and
Initiative Commercial/I nd ustrial Activities
Custom Effciency Commercial/I ndustrial Energy Effciency
Easy Upgrades Commercial/I ndustrial Energy Effciency
Energy Effcient Lighting Residential Energy Effciency
Energy House Calls Residential Energy Effciency
ENERGY STAFt Homes
Northwest Residential Energy Effciency
Heating and Cooling
Effciency Residential Energy Effciency
Holiday Lighting Commercial/Industrial Energy Effciency
Home Products Residential Energy Effciency
Home Weatherization Pilot Residential Energy Effciency
Irrigation Effciency
Rewards Irrigation Energy Effciency
I rrigation Peak Rewards Irrigation Demand Response
Local Energy Effciency Other Programs and
Funds All Activities
Northwest Energy Efficiency
Alliance All Market Transformation
Rebate Advantage Residential Energy Effciency
Residential Education Other Programs and
Initiative Residential Activities
APPLICATION - 4
7. In 2008, the American Council for an Energy-Effcient Economy ("ACEEE")
recognized Idaho as "most improved" since its 2006 scorecard, rising from 25th to 13th in its
state rankings. Idaho Power and its customers were a significant part of this achievement.
The energy savings for Idaho Power's energy effciency programs in 2008 was
107,484 megawatt-hours ("MWh"), a 72 percent increase over the 62,544 MWh energy
savings in 2007. The energy savings from all Idaho Power DSM programs, including
market transformation savings, was 140,156 MWh or 16 average megawatts (aMW). The
demand reduction for Idaho Power's demand response programs increased by 20 percent
from 48 MW in 2007 to 58 MW in 2008. Idaho Power believes additional energy savings
and demand reduction can be achieved through new or enhanced programs funded by a
more robust Rider.
II. PROPOSED RIDER INCREASE
8. Since 2002, Idaho Power has been steadily expanding its DSM programs and
other energy effciency initiatives. The current Rider collects approximately $17.4 millon
per year to fund Idaho Power's DSM programs and other energy effciency initiatives. At
the end of 2008, the Rider balancing account had a deficit balance of approximately $3.9
millon. At the current 2.5 percent funding level, the Rider balancing account is expected to
accumulate a deficit of nearly $5.6 millon by June 1, 2009. Based on the Company's
expected DSM program expenditures for 2009, the deficit balance is expected to grow to
an estimated $16.2 milion by year-end 2009 at the current 2.5 percent funding leveL.
9. To support expected program expenditures, Idaho Power proposes that the
Rider be increased from 2.5 percent to 4.75 percent of base revenue beginning June 1,
2009. In support of this request, Idaho Power has included with this Application the
APPLICATION - 5
testimony and exhibits of Timothy E. Tatum and the Company's proposed Schedule 91
tariff (Attachment No.1). Exhibit No.2, Table I details Idaho Power's expected
expenditures for DSM programs by customer class through 2011. As can be seen from
this exhibit, the expected program expenditures for 2009 through 2011 are $29,668,429;
$29,524,131; and $31,804,744, respectively. The total DSM program cost for the three-
year period is approximately $91 millon. Exhibit No.3, Table II, details the expected
annual program costs, the anticipated Rider funding at the recommended 4.75 percent
level, and the Rider fund balance remaining at the end of each year, 2009 through 2011, at
the proposed funding leveL.
IV. MODIFIED PROCEDURE
10. Idaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure; Le., by written submissions rather than by hearing. RP 201, et
seq. If, however, the Commission determines that a technical hearing is required, the
Company stands ready to present its testimony and support the Application in such
hearing.
V. COMMUNCIATIONS AND SERVICE OF PLEADINGS
11. This Application has been and wil be brought to the attention of Idaho
Power's affected customers by means of news releases to media in the Company's service
area. The news release, a copy of which accompanies this Application, also describes
proposed rate changes associated with Advanced Metering Infrastructure and the Fixed
Cost Adjustment. Idaho Power is currently preparing a customer bil insert and wil file a
copy with the Commission once it has been finalized. Idaho Power wil also keep its
APPLICATION - 6
Application, testimony, and exhibits open for public inspection at its offces throughout the
state of Idaho.
12. Communications and service of pleadings with reference to this Application
should be sent to the following:
Lisa D. Nordstrom
Barton L. Kline
Idaho Power Company
P.O. Box 70
Boise, ID 83707
Inordstrom(Çidahopower.com
bkline(Çidahopower.com
Timothy E. Tatum
John R. Gale
Idaho Power Company
P.O. Box 70
Boise, ID 83707
ttatum(Çidahopower.com
rgale(Çidahopower.com
Vi. REQUEST FOR RELIEF
13. Idaho Power Company respectfully requests that the Commission issue an
order authorizing an increase in the Energy Effciency Rider Tariff from 2.5 percentto4.75
percent of base revenues effective June 1, 2009.
Respectfully submitted this 13th day of March 2009.
APPLICATION - 7
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-09-05
IDAHO POWER COMPANY
ATTACHMENT NO.1
TARIFF
LEGISLATIVE FORMAT
Idaho Power Company FlSecond Revised Sheet No. 91-1
Cancels
I.P.U.C. No. 29, Tariff No. 101 Original First Revised Sheet No. 91-1
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABILITY
This schedule is applicable to all retail Customers served under the Company's schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company's expenditures for the
analysis and implementation of programs and initiatives that promote energy conservation, demand
response and renewable energy options.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Efficiency Rider percentage times the
sum of the monthly biled charges for the base rate components.
Schedule Energy Efficiency Rider
Schedule 1
Schedule 4
Schedule 5
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 39
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
iÆ.75 %
IDAHO
Issued Per IPUC Order No. March 14,2008
Effective - June 1, 2008June 1, 2009
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
PROPOSED TARIFF
Idaho Power Company Second Revised Sheet No. 91-1
Cancels
First Revised Sheet No. 91-1I.P.U.C. No. 29. Tariff No. 101
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABI L1TY
This schedule is applicable to all retail Customers served under the Company's schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company's expenditures for the
analysis and implementation of programs and initiatives that promote energy conservation, demand
response and renewable energy options.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Efficiency Rider percentage times the
sum of the monthly biled charges for the base rate components.
Schedule Energy Efficiency Rider
Schedule 1
Schedule 4
Schedule 5
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 39
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
IDAHO
Issued Per IPUC Order No.
Effective - June 1, 2009
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID