20100625notice_of_application_order_no_32019.pdf

Office of the Secretary
Service Date
June 25 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR AN
ORDER DESIGNATING THE ENERGY
EFFICIENCY RIDER FUNDS SPENT BY
THE COMPANY DURING 2008-2009 AS
PRUDENTL Y INCURRED EXPENSES
CASE NO. IPC-10-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 32019
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on March 16, 2010, Idaho Power Company
Idaho Power" or "Company ) filed an Application with the Commission seeking an Order
designating Idaho Power s expenditures of $50 701 740 in Energy Efficiency Rider ("Rider
funds in 2008 and 2009 as prudently incurred expenses. Idaho Power does not believe that a
technical hearing is necessary in this case and has requested that its Application be processed
under Modified Procedure.
YOU ARE FURTHER NOTIFIED that Idaho Power states that it currently offers 16
energy efficiency programs, 3 demand response programs and several educational initiatives to
its Idaho customers.
YOU ARE FURTHER NOTIFIED that the Application states that annual energy
savings from the Company s energy efficiency activities increased by 62% from 2007 to 2009
posting 140 Gigawatt hour ("GWh") savings in 2008 and an additional 148 GWh savings in
2009. Demand-side management ("DSM") programs reduced load by 48 MW in 2007 61 MW
in 2008, and 218 MW in 2009.
YOU ARE FURTHER NOTIFIED that Idaho Power claims that it has invested
approximately $21 million in DSM resources in 2008, $18.8 million of which was from the
Idaho Rider. In 2009, Idaho Power spent $35 million on DSM-related activities, with $31.8
million being funded by the Idaho Rider. Idaho Power believes that the results of these programs
demonstrate that they are a cost-effective resource for customers.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32019
YOU ARE FURTHER NOTIFIED that Idaho Power asserts that nearly all of its
energy efficiency programs produced savings at a benefit/cost ratio greater than 1.0 when
evaluated at a total resource cost perspective, a utility cost perspective and a participant cost
perspective. The lone exception was the Holiday Lighting program which, due mostly to its
relatively small size and the incremental costs of LED bulbs, was not cost-effective from the
total resource perspective.
YOU ARE FURTHER NOTIFIED that Idaho Power has attached its 2008 and 2009
DSM Annual Reports to its Application. Idaho Power filed its 2008 DSM Annual Report with
the Commission on March 13 2009, pursuant to Order No. 29419 issued in Case No. IPC-03-
19 and in accordance with certain agreed-upon guidelines set forth in the Memorandum of
Understanding for Prudency Determination of DSM Expenditures ("DSM MOU") filed with the
Commission on January 25, 2010. Idaho Power states that the 2009 DSM Annual Report is
intended to satisfy the DSM reporting obligation set forth in Order No. 29419.
YOU ARE FURTHER NOTIFIED that Idaho Power s 2009 DSM Annual Report
includes the following:
a. A template building upon past DSM Annual Reports and expanding the
main document to include two new supplements pertaining to cost-
effectiveness and evaluation;
b. A detailed table of contents;
c. An introduction section;
d. A section on cost-effectiveness which describes the relationship between
the Company s DSM Annual Report and the Northwest Power and
Conservation Council's 6th Power Plan, data inputs, assumptions and
sources;
e. An evaluation section;
f. A program-specific section with detailed information of all of the
Company s programs and initiatives; and
g. A section titled "Other Programs and Activities" that do not produce
actual savings but nevertheless support the Company s overall DSM
agenda.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32019
YOU ARE FURTHER NOTIFIED that Idaho Power calculated cost effectiveness
from the utility and total resource perspectives at the program level across the life of the
programs (2008 DSM Annual Report) and from the participant, utility and total resource
perspectives at the program level (2009 DSM Annual Report), except for those programs with no
customer costs.
YOU ARE FURTHER NOTIFIED that Idaho Power states that in future DSM annual
reports it will include the ratepayer impact cost-effective test.
YOU ARE FURTHER NOTIFIED that Idaho Power used net-to-gross adjustments
for the 2009 DSM Annual Report and third-party evaluators when appropriate for the specific
study or evaluation.
YOU ARE FURTHER NOTIFIED that in the future Idaho Power plans to report the
total cost of evaluating its programs and provide the names of primary outside evaluators and the
titles of internal evaluators for each evaluation listed.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s web site at
www.puc.idaho.gov by clicking on "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code 99 61-524. The Commission may enter any final Order consistent with its authority
under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this case for
the purpose of presenting evidence or cross-examination at hearing shall file a Petition to
Intervene with the Commission no later than fourteen (14) days from the effective date of this
Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32019
ORDER
IT IS HEREBY ORDERED that interested parties shall file a Petition to Intervene
with the Commission no later than fourteen (14) days from the effective date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
;..jr-
day of June 2010.
. K , P SIDENT
~ JfLlJ
MARSHA H. SMITH, COMMISSIONER
\4o-J- A
ATTEST:
O:IPC-10-09-np
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32019