HomeMy WebLinkAbout201103162010 DSM Report.pdfMarch 15,201 1
Cover photos from left to right:
The ldaho Power Long Valley Operations Center in Lake Fork, Idaho, received the Leadership in Energy and Environmental Design (LEED) Gold certification in 2009
Irrigation pivot with neiv, low.pressure sprinklers irrigating corn in southern ldaho.
A contractor installing additional attic insulation for a Home Improvement Program participant.
tdaho Power Company Table of Contents
......................................................................................................................................... Table of Contents i ... List of Tables ............................................................................................................................................. 111
List of Figures .......................................................................................................................................... iv
List of Supplements ................................................................................................................................... iv
Glossary of Acronyms ................................................................................................................................. v
Executive Summary ..................................................................................................................................... 1
Introduction .................................................................................................................................................. 3
Demand-Side Management Programs ................................................................................................. >.3
Demand Response Programs ........................................................................................................... 5
Energy Efficiency Programs ............................................................................................................ 6
.................................................................................................................... Market Transformation 6
Other Programs and Activities ......................................................................................................... 6
Program Performance ............................................................................................................................ 7
2010 Activities ................... .. .............................................................................................................. 8
Energy Efficiency Advisory Group ....................................................................................................... 9
............................................................................................................................. Smart Meter Project 10
. . . ........................................................................................................................... Regulatory Inifiatives I0
DSM Expenditures ............................................................................................................................... 10
...................................................................................................................................... Future Plans I2
Marketing .......... ., .............................................................................................................................. 12
Program Evaluation ...................................................................................................................... 13
Customer Satisfaction ........................................................................................................................ 13
Cost-Effectiveness ............................................................................................................................... 15
DSM Annual Report Structure ............................................................................................................. 15
Residential Sector Overview ..................................................................................................................... I7
. . Descr~ptlon ........................................................................................................................................... 17
.............................................................................................................................................. Programs I8
A/C Cool Credit ......................................................................................................................... 20
Ductless Heat Pump Pilot ............................................................................................................. 24
Energy Efficient Lighting .............................................................................................................. 28
Energy House Calls ..................................................................................................................... 31
ENERGY STAR@ Homes Northwest ............................................................................................ 34
Demand-Side Management 2010 Annual Report Page i
Table of Contents Idaho Power Company
Heating & Cooling Efficiency Program ..................................................................................... 38
Home Improvement Program ...................................................................................................... 44
Home Products Program ....................... .. .................................................................................... 47
............................................................................................... Oregon Residential Weatherization 51
Rebate Advantage ........................................................................................................................ 53
See ya later. refrigerators ............................................................................................................. 55
Weatherization Assistance for Qualified Customers .................................................................... 59
Weatherization Solutions for Eligible Customers .......................................................................... 62
Commercial/Industria1 Sector Overview ................................................................................................... 67
. . Descnptlon ........................................................................................................................................... 67
Programs .............................................................................................................................................. 67
. . Bullding Efficiency ........................................................................................................................ 71
Custom Efficiency ......................................................................................................................... 74
Easy Upgrades ............................................................................................................................. 78
FlexPeak Management ............................................................................................................... 84
Holiday Lighting Program ............................................................................................................. 87
Oregon Commercial Audits ....................................................................................................... 89
Inigation Sector Ovel-view ...................................................................................................................... 91 . . Descript~on ........................................................................................................................................... 91
Programs .............................................................................................................................................. 92
. . Irr~gatlon Efficiency Rewards ........................................................................................................ 93
. . Irrlgatlon Peak Rewards ................................................................................................................. 98
Market Transfoimation ............................................................................................................................ 103
Northwest Energy Efficiency Alliance .............................................................................................. 103
NEEA Activities ...................................... ... .................................................................................. 103
Other Programs and Activities ................................................................................................................. 107
Residential Energy Efficiency Education Initiative ........................................................................... 107
. @ Easy Sav~ngs Program .................................... .... ............................................................................. 110
. . . Commercial Education In~tlative ...................................................................................................... 112
Local Energy Efficiency Funds ........................................................................................................ 113
Students for Energy Efficiency .......................................................................................................... 114
Regional Technical Forum ................................................................................................................. 115
Boise City Home Audit Project ..................................................................................................... 115
Regulatory Initiatives ............................................................................................................................... 117
Page ii Demand-Side Management 2010 Annual Report
I Idaho Power Company Table of Contents
Fixed-Cost Adjustment Pilot .............................................................................................................. 117
Isrigation Peak Rewards Filings in Idaho and Oregon ....................................................................... 118
Demand-Side Resource Business Model Filing ................................................................................ 118
Energy Efficiency Rider-Prudency ................................................................................................ 120
Energy Efficiency Rider-Oregon .................................................................................................... 120
Continued Commitment .......................................................................................................................... 121
....... Continued Expansion and Broad Availability of Efficiency and Demand Response Programs 121
............................................................................................... Building-Code Improvement Activity 121
Pursuit of Appliance Code Standards ................................................................................................ 122
.................................................... Promotion of Energy Efficiency through Electricity Rate Design 122
............................................................................................... Third-Party, Independent Verification 122
Idaho Power's Internal Energy Efficiency Commitment ................................................................... 123
CAES Energy Efficiency Research Initiative .............................................................................. 124
Sustainable Operations/Sustainability ......................................................................................... 124
Green Team .................................................................................................................................. 124
Appendices ............................................................................................................................................... 125
............................................ Appendix 1 . Idaho Rider, Oregon Rider, and NEEA funding balances 127
Appendix 2 . 2010 DSM expenses by funding source (dollars) ......................................................... 128 . . Appendix 3 . 2010 DSM program actlvlty .......................................................................................... 129
................................................................. Appendix 4 . DSM expense and perfomance 2002-2010 131
......................................................... Appendix 5 . 2010 DSM program activity by state jurisdiction 143
Table 1 .
Table 2 .
Table 3 .
Table 4 .
Table 5 .
Table 6 .
Table 7 .
Table 8 .
Table 9 .
2010 DSM. sectors. programs. operational type. and energy savings ................................. 7
2010 Program Sector Summary and Energy Use ................................................................ 8
............................................................................ 2010 funding source and energy impact 11
................................................... 2010 Idaho and Oregon Rider expenditures by category 11
................................................................................. 2010 Residential Program Summary 18
2010 Weatherization Solutions for Eligible Customers: individual ........................................................................................................... measure breakdown 64
................................................................ 2010 CommerciaL'Industria1 program summary 67
Custom Efficiency annual energy savings by measure ...................................................... 75
2010 Isrigation program summary ..................................................................................... 92
Demand-Side Management 2010 Annual Report Page iii
Table of Contents Idaho Power Company
Table 10. Option incentives ,. . ...... .. .... .. ... . .. . .... .. . ..... ..... .... ....... . .. . .. . ... . . . ... ....... ....... . .. .... .. . . ...... . . ....... .. .99
Table 11. Total program daily MW reduction without distribution losses using realization
rates .................................................................................................................................. 100
Figure 1. m u a l demand response reduction 2004-2010 (MW) ............................... ,... .................... 4
Figure 2. Annual energy savings 2002-2010 (MWh) ..................................................................... 4
Figure 3. DSM expense history 2002-2010 (millions of dollars) ....................................................... 5
Figure 4. 2010 Oregon and Idaho Rider expenditures by category .......................................... 1
Figure 5. 2010 Idaho and Oregon Rider incentives by sector ........................................................... 12
Figure 6. Percent of customers whose needs are met or exceeded by Idaho Power's energy
efficiency efforts ...... ... ................. ........ ............&.,..... ...................... ,, ....................... ...,,. ,. .. ,I4
Figure 7. How customers heard about See ya later, refrigerator@ ..................................................... 58
LIST OF SUPPLEMENTS
Supplement 1: Cost-Effectiveness
Supplement 2: Evaluation
NEEA Market Effects Evaluations (included on CD with Supplement 2)
Page iv Demand-Side Management 2010 Annual Report
Idaho Power Company Glossary of Acronyms
GLOSSARY OF ACRONYMS
aMW-Average Megawatt
AIC-Air Conditioning
ACB, Inc-Advertising Checking Bureau, Inc.
AMI-Advanced Metering Infrastructure
ARRA-American Reinvestment and Recovery Act
BIC-Benefit Cost
BCA-Building Contractors Association
BCASEI-Building Contractors Association of South East Idaho
BCASWI-Building Contractors Association of Southwestern Idaho, Inc.
BOP-Builder Option Package
BOMA-Building Owners and Managers Association International
BPA-Bonneville Power Administration
CAES-Center for Advanced Energy Studies
CAP-Community Action Partnership
CAPAI-Community Action Partnership Association of Idaho, Inc.
CAIS--Certified Agricultural Irrigation Specialist
CD-Compact Disc
CEE-Consortium for Energy Efficiency, Inc.
CEEN-CAES Energy Efficiency Resource Initiative
CEI-Continuous Energy Improvement
CEL-Cost-Effective Limit
CFL-Compact Fluorescent LampILight
CHQ-Coiporate Headquarters (Idaho Power)
CID-Certified Irrigation Designer
CIS-Customer Information System
CLRIS-Customer and Load Research Information System
COP-Coefficient of Performance
CRM-Customer Relationship Management
CSI-Crime Scene Investigation
CSR-Customer Service Representative
DEER-Database for Energy Efficiency Resources
DHP-Ductless Heat Pump
DOE-Department of Energy
Demand-Side Management 2010 Annual Report Page v
Glossary of Acronyms Idaho Power Company
DSM-Demand-Side Management
DSR-Demand-Side Resource
EA4--Energy Audit 4
ECM-Electronically Commutated Motor
EEAG-Energy Efficiency Advisory Group
EECBG-Energy Efficiency Conselvation Block Grant
EISA-E~tevg)~ I~tdependence artd Secuvit), Act of 2007
ESI-Energy Scene Investigation
ETO-Energy T~ust of Oregon
EPA-Environmental Protection Agency
FCA-Fixed-Cost Adjustment
GMPG-Green Motors Practice Group
GPM-Gallons per Minute
H&CE-Heating & Cooling Efficiency Program
hpHorsepower
HPS-Home Performance Specialist
HSPF-Heating Seasonal Performance Factor
HVAC-Heating, Ventilation, and Air Conditioning
ICGIdaho Consetvation League
IDL-Integrated Design Lab in Boise
IECC-International Energy Conse~vation Code
INL-Idaho National Laboratory
IOER-Idaho Office of Energy Resources
IPUC-Idaho Public Utilities Commission
IRP-Integrated Resource Plan
IRPAC-Integrated Resource Plan Advisory Council
IRS-Internal Revenue Sewice
STEM-Idaho Science, Technology, Engineering and Mathematics
IT-Information Technology
kW-Kilowatt
kwh-Kilowatt-hour
LCD-Liquid Crystal Display
LED-Light-Emitting Diode
LEEF-Local Energy Efficiency Funds
Page vi Demand-Side Management 2010 Annual Report
Idaho Power Company Glossary of Acronyms
LIHEAP-Low Income Home Energy Assistance Program
MOU-Memorandum of Understanding
MHAFB-Mountain Home Air Force Base
MPER-Market Progress Evaluation Report
MW-Megawatt
MWh-Megawatt-hour
NAHB-National Association of Home Builders
NEEM-Northwest Energy Efficient Manufactured Housing Program
NEEA-Northwest Energy Efficiency Alliance
NEMA-National Electrical Manufacturers Association
NPCC-Northwest Power and Conservation Council
NW EM Demo--Northwest Energy Management Demonstration Project
NWES-Northwest ENERGY STAR^
OPUC-Public Utility Commission of Oregon
OSV-On-Site Verification
PCA-Power Cost Adjustment
PCT-Participant Cost Test
PECI-Portland Energy Conservation, Inc.
PLC-Power-Line Carrier
PLMA-Peak Load Management Alliance
PTCS-Performance Tested Comfort System
QA-Quality Assurance
RAD-Responsible Appliance Disposal
RAP-Resource Action Programs
RFP-Request for Proposal
RIM-Ratepayer Impact Measure Test
RS&E-Runyon, Saltzman & Einhom
RTF-Regional Technical Forum
RTUG-Commercial Rooftop Unit Work Group
Rider-Idaho Energy Efficiency Rider and Oregon Energy Efficiency Rider
SCCT-Simple-Cycle Combustion Turbine
SCO-State-Certifying Organization
SEE-Students for Energy Efficiency
SEEARl-State Energy Efficient Appliance Rebate Program
Demand-Side Management 2010 Annual Report Page vii
Glossary of Acronyms Idaho Power Company
SIC-Standard Industrial Classification Codes
SIR-Savings-to-Investment Ratio
SOz-Sulfur Dioxide
SRA-Snake River Alliance
SRVBCA-Snake River Valley Building Contractors Association
TLS-Transport Layer Security
TOU-Time-of-Use
TRC-Total Resource Cost
UC-Utility Cost
USA-Utility Service Agreement
W-Watt
WAQC-Weatlierization Assistance for Qualified Customers
Page viii Demand-Side Management 2010 Annual Report
Idaho Power Company Executive Summary
In 2010, Idaho Power achieved a year of increased energy savings, reduced demand, increased
evaluation and research, and enhanced energy efficiency education and customer outreach. Demand-side
management (DSM) activities focused on evaluation, savings, program participation, customer
satisfaction, and energy efficiency awareness. Through program expansion and improvements,
the company's DSM portfolio of programs and energy savings opportunities have increased.
Idaho Power's overall annual energy savings from energy efficiency activities increased in 2010.
Energy savings for 2009 were 143,146 megawatt hours (MWh), including the Northwest Energy
Efficiency Alliance (NEEA) savings. In 2010, these savings increased over 31 percent to 187,626 MWh.
From Idaho Power's energy efficiency programs alone, the savings increased 30 percent,
from 132,443 MWh in 2009 to 172,292 MWh in 2010. This is enough energy to supply over
13,500 average homes in Idaho Power's service area. Since 2002, Idaho Power's DSM efforts have
accumulated energy savings and demand response reduction greater than any other time in the
company's history. Demand reduction for Idaho Power's demand response programs increased from
218 megawatts (MW) in 2009 to 336 MW in 2010. This is more than twice as large as the capacity of
Idaho Power's Bennett Mountain peaker plant located near Mountain Home, Idaho. Total expenditures
on DSM-related activities increased from almost $35 million in 2009 to $46 million in 2010.
Idaho Power's focus on program evaluation and research in 2010 resulted in process evaluations
completed on five commercial, industrial, and irrigation programs and on four residential programs.
Two different independent third-party contractors conducted these evaluations. The company also
contracted with a third-party consultant to conduct a residential home energy use survey. Idaho Power
continued to participate with other research and evaluation organizations, such as NEEA, the Regional
Technical Forum (RTF), and the Idaho Integrated Design Lab (DL in Boise). Also in 2010,
Idaho Power developed a new integrated database with a unified table structure to store DSM program
data and more effectively track program performance.
The percentage of customers who have a positive perception of Idaho Power's energy efficiency efforts
continued to increase, indicated by the results of Idaho Power's 2010 quarterly customer relationship
survey. Results showed steady improvement aver recent years. Customers' positive perception of
Idaho Power's energy efficiency efforts increased from 39 percent in early 2003 to 57 percent in
late 2010. Idaho Power continued to expand its customer satisfaction measurement activities,
which enabled Idaho Power to identify actionable areas for improvement.
I Pursuit of cost-effective energy efficiency is a primary objective for Idaho Power. Energy efficiency and
demand response provides economic and operational benefits to the company and its customers.
Enhancement of information and programs helps ensure customers have opportunities to learn about
their energy use and participate inprograms. To optimize the acquisition of cost-effective DSM,
Idaho Power has advanced a progressive regulatory model and expanded its educational initiatives. 1 Additionally, Idaho Power played a key role in the launching of the Center for Advanced Energy Studies
(CAES) Energy Efficiency Research Initiative (CEERI).
The Demand Side Managenlent 2010 Annual Report provides a review of the company's DSM activities
and finances throughout 2010, outlines Idaho Power's plans for DSM activities, and satisfies the
reporting requirements set out in the Idaho Public Utilities Commission's (IPUC) Order Nos. 29026
and 29419.
Demand-Side Management 2010 Annual Report Page 1
Executive Summary Idaho Power Company
This page left blank intetltionally.
Page 2 Demand-Side Management 2010 Annual Report
Idaho Power Company Introduction
Idaho Power's DernandSide Management (DSM) 2010 Annzial Report provides a review of the financial
and operational performance of Idaho Power's DSM activities and initiatives for the 2010 calendar year.
The company provides a wide range of opportunities for all customer classes to participate in programs,
to be informed about energy use, and to reduce their energy consumption.
Idaho Power's two main objectives for DSM programs are to achieve all prudent, cost-effective energy
efficiency resources to meet its electrical system's energy and demand needs and to provide customers
with programs and information to help them manage their energy usage, The company achieves these
objectives through the development, implementation, and prudent management of programs that provide
energy and demand savings, and through outreach and education. When possible, Idaho Power
implements identical programs in its Idaho and Oregon service areas.
Customer participation in Idaho Power's energy efficiency and demand response programs continues to
increase, as do energy savings and demand reduction. The energy savings exclusively from
Idaho Power's energy efficiency programs in 2010 was 172,292 megawatt-hour (MWh), a 30 percent
increase over the 132,443 MWh energy savings in 2009. Demand reduction for the demand response
programs also substantially increased in 2010. Combined, the Irrigation Peak Rewards, FlexPeak
Management, and A/C Cool Credit programs resulted in an estimated summer peak reduction of
336 megawatt (MW), which is a 54 percent increase from the reduction achieved in 2009.
In a continuing effort to fulfill the objectives of the Memorandum of Understanding (MOU) which was
signed by Idaho Power, Idaho Public Utilities Commission (IPUC) staff, and Idaho's other
investor-owned utilities on January 25,2010, Idaho Power has made several additions to this year's
report. Included this year is a new appendix attached to this document, titled Appendix 5. This appendix
shows program savings and costs separated into Idaho Power's Idaho and Oregon jurisdictions and by
funding source. The other addition is the 2010 DSMDetaifedExpenses by Program table that reports
expenses by funding source and cost category. This table is included in Supplentent I :
Cost Effectiveness. Supplement 1 shows all of the standard cost-effectiveness tests for its programs,
including the calculation of the Ratepayer Impact Measure (RIM) Test for each program. The company
also continued to enhance its third-party evaluation activities. In 2010, all Idaho Power energy efficiency
programs are shown to be cost-effective, and all of its demand response programs are cost-effective
from both a long-term perspective and for 2010 under a one-year perspective.
Demand-Side Management Programs
The programs within Idaho Power's energy efficiency and demand response portfolio are offered to
four major customer sectors: residential, commercial, industrial, and irrigation. The commercial and -
industrial energy efficiency programs are made available to customers in either sector. The sector is
generally referred to as the commercial/i1~dustria1 sector in this report.
Idaho Power categorized its DSM activities in four categories: demand response, energy efficiency,
market transformation, and other programs and activities. The other programs and activities are
generally to provide customer outreach and education concerning the efficient use of electricity. All of
these activities are coordinated to forward Idaho Power's enhanced commitment to energy efficiency,
demand response, and customer satisfaction.
Figures 1-3 show the historic energy savings, demand reduction, and DSM expenses.
Demand-Side Management 2010 Annual Report Page 3
Introduction Idaho Power Company
Figure 1. Annual demand response reduction 2004-2010 (MW)
200,000
.Market Transformation (NEEA) 180,000
Figure 2. Annual energy savings 2002-2010 (MWh)
Page 4 Demand-Side Management 2010 Annual Report
1 Idaho Power Company Introduction
I
Figure 3. DSM expense history 2002-2010 (millions of dollars)
Demand Response Programs
Demand response programs are considered a resource to reduce Idaho Power's demand for electricity at
specific times of the day and year when electricity is normally in short supply. The new, all-time winter
system peak of 2,528 MW was set onThursday, December 10,2009, at 8:00 a.m. The summer peak in
2010 was 2,930 MW set on Monday, June 28,2010 at 7:00 p.m., below the Idaho Power's all-time
system peak of 3,214 MW on Monday, June 30,2008, at 3:00 p.m. Idaho Power estimates that if it did
not have demand response programs, the summer system peak would have been approximately
3,087 MW on July 16,2010 at 7:00 p.m.
In 2010, Idaho Power's Energy Efficiency and Demand Resp~nse personnel worked closely with
representatives from other departments within the company on two distinct yet related projects. The first
was to optimize the dispatch of the demand response programs on a day-to-day basis to achieve the
greatest possible demand reduction over the longest time period while still having all programs
dispatched at the time of the system peak. For this goal, representatives from the Energy Efficiency,
Power Supply, Compliance, System Dispatch, Regulatory Affairs, Transmission Planning,
and Generation Disoatch deoartments met weekly to determine a potential dispatch schedule for the &
following week. This team considered the upcoming load forecast, weather forecast, generation
availability, and the magnitude of the forecast system peak in order to set a dispatch schedule. The
actual decision to dispatch was made on a day-ahead basis by Power Supply Operations
The second major demand response project for the company in 2010 was to work with members of Load
Forecasting, Power Supply Planning, Load Research, Regulatory Affairs, and Energy Efficiency
Programs to determine the optimum amount of demand response the company can and should plan for in
the long-term Integrated Resource Plan (IRP) process. This research and analysis led to the filing of case
number IPC-E-10-46 in Idaho and Advice number 11-1 in Oregon. Both of these regulatory filings
Demand-Side Management 201 0 Annual Report Page 5
Introduction Idaho Power Company
proposed that the company make substantial changes to the method by which the Irrigation Peak Reward
participants are paid for their demand reduction.
The measure of demand response program performance is the number of MW of reduced electrical
demand that the company needs to serve during system peak periods. In 2010, Idaho Power again
offered three demand response programs. The A/C Cool Credit program was offered to residential
customers and the FlexPeak Management program was offered to commercial/industrial customers.
The Irrigation Peak Rewards program was available for irrigation customers, The Irrigation Peak
Rewards program was modified in 2010 to add the ability to dispatch the program on Saturdays and to
add the potential for the company to use the program starting at 1:00 p.m. instead of 200 p.m.
The program season was also extended from ending on July 3 1 to ending on August 15.
Energy Efficiency Programs
Energy efficiency programs focus on reducing energy usage by identifying homes, buildings,
equipment, or components where energy-efficient design, replacement, or repair can yield energy
savings. These programs are available to all customer sectors. Project measures range from entire
building construction to simple light bulb replacement. Savings from these programs are measured in
terns of reduced kilowatt-hour (kWh) usage, or MWh usage for larger projects. These programs usually
supply energy benefits throughout the year. Idaho Power's energy efficiency offerings include programs
in residential and commercial new constsuction (lost opportunity savings), residential and commercial
retrofit applications, and irrigation and industrial systems improvement or replacement.
Market Transformation
Market transformation is a method of achieving energy savings through engaging and influencing large
national and regional companies and organizations. These organizations are in a position to affect the
design of energy usage in products, services, and practices that affect electricity consumption.
Idaho Power achieves market transformation savings primarily through its participation in Northwest
Energy Efficiency Alliance (NEEA). Idaho Power also supports market transformation accomplished by
appliance or building code modifications or enforcement.
Other Programs and Activities
Other programs and activities represent a range of small projects that are typically research,
development, and education oriented. This categoly includes the Residential Energy Efficiency
Education Initiative, the Easy savingsa Program, the Commercial Educational Initiative, the Local
Energy Efficiency Funds (LEEF), and the Students for Energy Efficiency (SEE). These programs enable
Idaho Power to offer support for projects and educational opportunities not normally covered under
existing programs.
Table 1 provides a list of the DSM programs and their respective sectors, operational category, the state
in which each was available in 2010, and energy savings,
Page 6 Demand-Side Management 2010 Annual Report
Idaho Power Company Introduction
Table 1. 2010 DSM, sectors, programs, operational type, and enevgy savings
Program by Sector Operational Type State Savings
-- Residential
AIC Cool Credit ............................................................ Demand Response
Ductless Heat Pump Pilot ............................................. Energy Efficiency
Energy Efficient Lighting ............................................... Energy Efficiency
Energy House Calls ...................................................... Energy Efficiency
ENERGY STAR^ Homes Northwest ......................... .... Energy Efficiency
Heating & Cooling Efficiency Program ......................... Energy Efficiency
Home Improvement Program ........................................ Energy Efficiency
Home Products Program .............................................. Energy Efficiency
Oregon Residential Weatherization ............................. Energy Efficiency
Rebate Advantage ........................................................ Energy Efficiency
Residential Energy Efficiency Education Initiative ........ Other Programs and Activities
See ya later, refrigeratore ..................................... ... . . Energy Efficiency
Weatherization Assistance for Qualified Customers ..... Energy Efficiency
Weatherization Solutions for Eligible Customers .......... Energy Efficiency
Commercialllndustrial
Building Efficiency ........................................................ Energy Efficiency
.................................... Commercial Edu~ation Initiative Other Programs and Activities
Easy Upgrades ............................................................. Energy Efficiency
FlexPeak Management .......................................... Demand Response
Holiday Lighting Program ........................................... Energy Efficiency
Oregon Commercial Audits ........................................... Energy Efficiency
Custom Efficiency ...................................................... Energy Efficiency
lrrigation
Irrigation Efficiency Rewards ....................................... Energy Efficiency
Irrigation Peak Rewards ........................................... Demand Response
All Sectors
Northwest Energy Efficiency Alliance ............................ Market Transformation
Program Performance
IDIOR
IDlOR
IDlOR
IDIOR
IDIOR
IDIOR
ID
IDlOR
OR
IDIOR
IDIOR
IDIOR
IDIOR
ID
39.0 MW
364 MWh
28,083 MWh
1,199MWh
883 MWh
1,104 MWh
3,986 MWh
1,444 MWh
4 MWh
185 MWh
nla
1,568 MWh
3,742 MWh
313 MWh
10,820 MWh
n/a
35,824 MWh
47.5 MW
249 MWh
n/a
71.580 MWh
10,988 MWh
249.7 MW
15.334 MWh
In 2010, energy savings increased as compared to 2009 for residential, commercial, and industrial by
65 percent, 13 percent, and 38 percent, respectively. There was a 17 percent reduction in the savings
from the irrigation sector. The residential sector savings increased to 42,851 MWh; the commercial
sector savings increased to 46,893 MWh; the industrial sector increased to 71,580 MWh; and the
irrigation sector decreased to 10,968 MWh. The reduction in savings in the irrigation sector was
primarily the result of program maturity and new program requirements that began in 2010. Additional
energy savings continue to be realized through market transformation partnership activities with NEEA.
Customer participation increased in most of the existing programs during the year. The number of
projects completed under the Easy Upgrades program increased from 1,224 projects in 2009 to
1,535 projects in 2010, a 25 percent increase. Participation in the Home Improvement Program
increased by almost 200 percent, from 1,188 homes in 2009 to 3,537 in 2010. As a result of the
continuation of the depressed housing market in 2010, the number of homes given incentives in the
Rebate Advantage program decreased. Surprisingly, the ENERGY STAR' Homes Northwest program
Demand-Side Management 2010 Annual Report Page 7
Introduction Idaho Power Company
participation increased by almost 33 percent by providing incentives for 630 homes in 2010 as compared
to 474 homes in 2009.
A few individual programs were big contributors to overall energy savings. The Custom Efficiency
program accounted for 42 percent of Idaho Power's energy savings from programs, resulting in an
estimated 71,580 MWh of savings. The Easy Upgrades program in the commercial sector provided
21 percent, or 35,824 MWh, of estimated energy savings. In the residential sector, the Energy EMicient
Lighting program saved 28,083 MWh, accounting for 16 percent of overall energy savings by giving
incentives to over one million bulbs in 2010.
Table 2 shows the 2010 annual energy savings, percent of energy usage, number of customers,
and average megawatt (aMW) savings associated with each of the DSM program categories. The table
also provides a comparison of the 2010 contribution of each sector in terms of energy usage and its
respective size in number of customers. Unless otherwise noted, all energy savings presented in this
report are measured or estimated at the customers' meter, excluding line losses.
Table 2. 2010 Program Sector Summary and Energy Use
Energy Efficiency Program Impactsa Idaho Power System Sales
Energy Average Peak Load Percentage
Dlrect Savlngs Energy Reduction Sector Total of Energy Number of
- - - - - Expenses (MWh) (aMW) (MWb (MWh) Usage Customers
Residential ........................................... $ 8,093,078 42,851 4.9 4,983,423 36.70% 408.754
Commercial ....................................... 5,535,273 46,893 5.4 8.7 3,763,495 27.71% 64,647
Industrial .................... ......... ................. 8,778,125 71,580 8.2 9.5 3,128,504 23.02% 121
Irrigation. 2,200.814 10,968 1.3 3.3 1,706,632 12 57% 18,547
MarketTransformation ......................... 2,391,217 15,334 1.8 nla nla nla nla
Total ............................................ ..... 526.998.507 187,626 21.0 21.5 13.580,054 100.0% 492,069
" Energy, average energy, and expense data have been rounded to Ule nearest whole unit, which may result in minor rounding d~fferences.
Includes peak load reduction from both demand response and energy efficiency programs.
201 0 Activities
In 2010, Idaho Power continued to expand its DSM programs in order to increase participation and
energy savings. Many of the activities in 2010 also revolved around evaluation and research.
The company was also engaged in enhanced regulatory reporting and filings.
Idaha Power's residential end-use survey or Home Energy Survey was completed in 2010. The survey
was the latest in a series of periodic end-use studies conducted by Idaho Power, with the last survey
completed in 2004. The primary objective of the 2010 study was to profile residential customers to
better understand their housing and end-use characteristics that included home demographics,
fuel source, home heating and cooling, and appliance and consumer electronics saturation. A copy of
this report is included in Szpple~nent 2: Evaluation.
In 2010, Idaho Power designed and developed a new comprehensive database that will more effectively
store savings results, measure information, and allow for more efficient incentive processing for
customers. The database was developed with a unified table structure across all energy efficiency
programs on a SQL Server database platform that is easily scalable for future program additions and
changes. The database structure allows for the integration of DSM program data with Idaho Power's
customer information system (CIS) along with financial databases for tracking and processing customer
incentive payments. Because of the unified and consistent table structure, the database is well positioned
Page 8 Demand-Side Management 2010 Annual Report
Idaho Power Company Introduction
for the future transition to the new CIS and customer relationship management (CRM) tool that will be
implemented through the federal Smart Grid Investment Grant program. While the database table
structure is consistent across programs, each program has the ability to track custom fields that are
unique to their program. The database application was tested in late 2010 and completed for all but two
programs by the beginning of 201 1. The final programs will be integrated into the system in early 201 1.
Idaho Power collaborated with the City of Boise to serve as the implementer for the Boise City Home
Audit Project. Additionally, the company continued participation with NEEA's Ductless Heat Pump
(DHP) Pilot. Idaho Power also modified the Irrigation Peak Rewards program.
During 2010, Idaho Power began its contractual participation in, and funding of, NEEA under the 2010
to 2014 agreement. NEEA's efforts in the northwest impact Idaho Power's customers by encouraging
regional market transformation. Idaho Power representatives participated on several NEEA committees
and events. Idaho Power also continued to help fund and participate in the Regional Technical Forum
(RTF) and uses the results fiom the RTF's research in program development and
cost-effectiveness analysis.
On March 16,2010, Idaho Power filed case number IPC-E-10-09, which was a request for the IPUC to
designate Idaho Power's expenditure of $50,701,740 in Idaho Rider funds in 2008 and 2009 as
prudently incurred expenses. This prudency filing was the fiist designed to comply with the agreed-upon
principles set forth in the MOU for Prudency Determination of DSM Expenditures. On November 16,
2010, in Order No. 321 13, the IPUC found that the company acted prudently in the administration of its
Rider-funded DSM programs and expenses.
Energy Efficiency Advisory Group
Formed in 2002, the Energy Efficiency Advisory Group (EEAG) provides input on fo~mulating and
implementing energy efficiency and demand reduction programs funded by the Rider. Cunently,
the EEAG consists of 14 members from across Idaho Power's service area and the Pacific Northwest.
Members represent a cross-section of customers, including individuals fiom the residential, industrial,
commercial, and irrigation sectors, as well as representatives for seniors, low-income individuals,
environmental organizations, state agencies, public utility commissions, and Idaho Power.
In 2010, the EEAG met three times, February 18, May 26, and October 26. During the meetings,
Idaho Power requested recommendations and discussion on new program proposals, marketing methods,
and specific measure details; provided a status of the Rider funding and expenses; updated ongoing
programs and projects; and supplied general information on DSM issues. Idaho Power relies on input
from the EEAG to provide a customer and public interest review of energy efficiency and demand
response programs and expenses. The minutes from the 2010 EEAG meetings are included in
Stipplemenf 2: Evalnration.
In addition to the EEAG, Idaho Power solicits further customer input through meeting directly with
stakeholder groups in the residential, commercial, industrial, and irrigation customer sectors.
Idaho Power has also enhanced its relationships with trade allies, trade organizations, and regional
groups committed to increasing the use of energy efficiency programs and measures to reduce
electricity load.
Demand-Side Management 2010 Annual Report Page 9
Introduction Idaho Power Comoanv
Smart Meter Project
Idaho Power continued with the current Smart Meter Project by installing Advanced Meter
IntTastrncture (AMI). The Smart Meter Project will enhance Idaho Power's energy efficiency efforts in
several ways. Hourly data is being collected by these meters and can be viewed by customers via the
Internet. This will enable customers to be more informed and more wisely manage their use of
electricity. Customer hourly energy data and monthly demand data will eventually help to evaluate
energy efftciency and demand response programs. Idaho Power will continue to expand its use of the
power-line communications technology to dispatch demand response programs.
As of February 201 1, Idaho Power had installed 283,500 residential smart meters and
47,756 commercial Smart Meters, totaling 331,256 meters as part of the company's three-year AM1
deployment. While 2009 saw meters installed primarily in the Treasure Valley area, 2010 continued to
deploy meters into Canyon County as well as the Payette and Ontario, Oregon areas served by the
company. By year-end, installations were completed in the Mountain Home area. Work commenced in
the Pocatello area in January 201 1 and will continue until the end of May. From June to December 201 1,
the Twin Falls and Hailey areas will be outfitted with AM1 technology. To date, 83 of the expected
134 substations installations are completed. Overall, the project is on schedule.
Regulatory Initiatives
Idaho Power believes there are three essential components of an effective regulatory model for DSM:
1) the timely recovery of DSM program costs, 2) the removal of financial disincentives,
and 3) the availability of fiancial incentives in order for the company to have the opportunity to earn on
the energy efficiency investments like other investments in which the company is engaged. Since 2002,
Idaho Power has recovered its DSM program costs through the Rider with the intended result of
providing more timely recovery of DSM costs. Coupled with cost recovery is a need for clear and
achievable guidelines for prudency. To address the removal of financial disincentives, Idaho Power is
testing the effects of a fixed-cost adjustment (FCA) mechanism in a five-year pilot initiative. The FCA
pilot just completed year four.
To introduce an option to provide fmancial incentives for DSM, in October the company filed case
number PC-E-10-27 with the IPUC. Part of the filing establishes the company's proposal to move
incentive payments for one DSM program to a regulatory asset account in order to begin earning its
authorized rete of return on the DSM investment. This would allow some energy efficiency investments
to be treated similar to supply-side investments and not treated as inferior investments. In that same
filing, the company proposed moving the recovery of incentive payments of demand response programs
out of the Rider and into the Power Cost Adjustment (PCA) mechanism. This move would treat the cost
recovery of demand response payments similar to other supply-side resource expenses, such as fuel
purchase power and surplus sales.
DSM Expenditures
Funding for DSM programs in 2010 came from several sources. The Rider funds are collected directly
*om customers on their monthly bills. The Idaho Rider is currently 4.75 percent of base rate revenues.
On March 5,2010, Idaho Power filed with the Public Utilities Commission of Oregon (OPUC)
to increase the Oregon Rider from 1.5 percent to 3.0 percent and to eliminate the monthly caps on the
residential and irrigation bills. This was approved on June 1,2010. Energy efficiency and demand
response-related expenses not funded through the Rider, including costs for administration and
Demand-Side Management 201 0 Annual Report
Idaho Power Company Introduction
overhead, are included as part of Idaho Power's ongoing operation and maintenance costs. Total DSM
expenses funded from all sources were $45.8 million in 2010.
Table 3 provides a summary of the 2010 expenses and energy savings by each funding category.
Table 3. 2010 funding source and energy impact -
Funding Source Expenses MWh Savings
............................................. ............................. Idaho Ride .. $ 42,479,692 174,779
Oregon Rider ............................................................................................................................ 1,704,367 9.105
Idaho Power Base Rates ........................................................................................................... 1,648,792 3.742
Total .................................................................................................................... $ 45,832,851 187,626
Table 4 and Figure 4 show Idaho Power's Rider expenses separated by expense category. The expenses
in the Materials category are primarily A/C Cool Credit switches. Other Expenses includes marketing
($514 thousand), program evaluation ($293 thousand), and program training ($190 thousand). Purchased
services includes payments made to NEEA and contract payments made to third-party contractors who
help administer Idaho Power's programs, such as M2M for the Irrigation Peak Rewards program and
JACO for the See ya later, refrigerator program.
Table 4. 2010 ldaho and Oregon Rider expenditures by category
Total %of Total
Incentive Expense ............................... .. ................................................................................ $32,048,751 73%
Labor/Administration ..................................... ... ................................................................................. 2,828,287 6%
Materials ......................................................................................................................................... 345,066 1%
Other Expense ................................................................................................................................. 1,040,237 2%
Purchased Services ......................................................................................................................... 7,921,718 18%
Total 2010 Rider Expenditures, by Category ................................................................................. $44,184,058 100%
'Incentive Expense
LaborIAdministration
Materials
.Other Expense
Purchased Services
Figure 4. 2010 Oregon and ldaho Rider expenditures by category
Demand-Side Management 2010 Annual Report Page 11
Introduction Idaho Power Comoanv
Figure 5 shows Idaho Power Rider incentives expenses separated by type of program and by type of
sector, either Demand Response (DR) or Energy Efficiency (EE).
Figure 5. 2010 ldaho and Oregon Rider incentives by sector
Future Plans
Many of Idaho Power's DSM programs are selected for implementation through its biennial IRP.
The IRP is a public document that details Idaho Power's strategy for economically maintaining the
adequacy of its power system into the future. The IRF' process balances cost, risk, and environmental
concerns in developing a preferred portfolio of future resources that meet the specific energy needs of
Idaho Power and its customers. In 201 1, Idaho Power plans to continue to increase participation,
energy savings, and demand reduction from existing energy efficiency and demand response programs.
Additionally, the company will add measures as identified in the 201 1 IRP to its existing programs and
continue to expand its efforts in energy efficiency education. Idaho Power also plans to expand the
FlexPeak Management program as defined in its contract with EnerNOC, Inc., the third-party demand
response aggregator who administers this program.
Marketing
DSM marketing plans are developed annually. These plans focus on distinct customer segments,
including residential, commercial/industria1, and irrigation. Each segment's marketing plan includes the
goals, strategy, tactics, previous marketing results/research, and budgets for each individual program
within that segment. The plan is reviewed at the six-month mark to ensure tactics are being implemented
and to update information as necessary. A variety of sources help inform marketing decisions.
These include primary research, secondary research, historical performance, and third-party
segmentation software.
As part of the company's awarded Smart Grid Investment Grant, work will continue on the CRM tool in
201 1. This new marketing tool will track customer interactions and centralize customer marketing data,
providing in-depth information about Idaho Power customers. This new technology will allow the
Page 12 Demand-Side Management 2010 Annual Report
Idaho Power Company Introduction
Customer Relations and Energy Efficiency department to better interact with customers, meet their
needs, and accelerate energy efficiency and demand response program participation. Resource
efficiencies in regard to the CRM tool will be gained in part by replacing current manual marketing
processes with automated processes and workflows.
Program Evaluation
Program evaluation is an important facet of Idaho Power's DSM operational activities. Idaho Power
relies on evaluation by third-party contractors, internal analyses, and regional studies to ensure the
ongoing cost-effectiveness of programs through validation of energy savings and demand reduction.
The results of Idaho Power's evaluation efforts are used to enhance or initiate program changes.
Throughout 2010, Idaho Power revised its comprehensive evaluation plan for energy efficiency and
demand response programs. The current evaluation plan is included in Sz~pplement 2: Evaluation.
Although the evaluation plan is expected to be used for scheduling evaluations, the timing of specific
program evaluations will be based on considerations of program evaluation needs, and other relevant
regional studies.
In 2010, the company completed process evaluations on all of its commercial, industrial, and irrigation
programs. It also completed process evaluations on four of its residential energy efficiency programs.
Although Requests for Proposals (RFP) were issued in April 2010, the studies were completed in late
2010, and the final reports were received in early 201 1. All of these studies were conducted under
contract with third-party independent evaluation firms. The company is in the process of reviewing the
recommendations and constrncting implementation plans to incorporate the results of these evaluations
into the program processes. Copies of these evaluations are included in Supplement 2: Evaluation.
Customer Satisfaction
Since 1995, Idaho Power has employed an independent third-party research vendor to eonduct customer
relationship surveys. The intent of these surveys is to measure the overall customer relationship and
satisfaction with Idaho Power. As such, consistency in survey format is an important aspect of being
able to trend results over a period of time. Occasionally, when there are changes in Idaho Power
operations that may significantly affect a customer's relationship with the company, slight changes
or additions have been allowed to the survey instrument to accommodate new relationship attributes.
Because of Idaho Power's increased activity with energy efficiency programs in 2003 and the impact
those programs may have on a customer's satisfaction with the company, Idaho Power added
two questions related to awareness of Idaho Power's energy efficiency efforts to the overall survey
instsument. In 2010, again because of increased activity and interest in Idaho Power's energy efficiency
programs, the company added three additional questions to the survey to measure customers'
participation in, and satisfaction with, Idaho Power's energy efficiency programs. However, it is
important to reiterate that the intent of this survey is not to measure all aspects of any or all energy
efficiency programs offered by Idaho Power. The survey measures satisfaction of a number of different
aspects of the customer's relationship with Idaho Power, including energy efficiency, at a very
high level.
The 2010 results of Idaho Power's qnasterly customer relationship survey showed steady improvement
over recent years. The percentage of customers who have a positive perception of Idaho Power's energy
efficiency efforts continued to grow, with a 46 percent increase in positive customer perception from
2003 to 2010. Customers' positive perception of Idaho Power's energy efficiency efforts increased from
39 percent in early 2003 to 57 percent in late 2010. Idaho Power continues to expand its customer
satisfaction measurement activities, which enable Idaho Power to identify actionable areas for
Demand-Side Management 2010 Annual Report Page 13
I Introduction Idaho Power Comaanv
improvement. Figure 6 depicts quarterly growth in the number of customers who indicated Idaho Power
met or exceeded their needs concerning energy efficiency efforts encouraged by Idaho Power.
Glr2 Qlr4 QtrZ QB4 Qtr2 Qtr4 Qtr2 Qlr4 Qlr2 Qlr4 Qtr2 Qlr4 Qfr2 Mr4 Qlr2 Qlr4
2003 2003 2004 2036 2005 2005 2006 2W6 2007 2W7 2W8 2MKI ZW9 ZW9 2010 2010
12 Month Average
Figure 6. Percent of customers whose needs are met or exceeded by ldaho Power's energy efficiency efforts
In 2010, Idaho Power added three new questions to the general relationship survey related to energy
efficiency programs: 1) Have you participated in any of Idaho Power's energy efficiency programs?
2) Which energy efficiency program did you participate in? 3) Overall, how satisfied are you with the
energy efficiency program? Overall, 33 percent of the survey respondents across all sectors indicated
they have participated in at least one Idaho Power energy efficiency program. Of survey respondents
who have participated in at least one Idaho Power energy efficiency program, 95 percent are "very"
or "somewhat" satisfied with the program.
Several surveys measured customer satisfaction with individual programs in 2010. The surveys also
provide guidance for program modification, marketing, and evaluation. Survey results are presented in
the following program descriptions in this report: DHP Pilot, Heating & Cooling Efficiency (H&CE)
Program, Easy Savings Program, Residential Energy Efficiency Education Initiative, Weatherization
Solutions k r Eligible Customers, Easy Upgrades, and FlexPeak Management.
Idaho Power programs have ongoing customer satisfaction measurements as a follow-up to the
application process. For example, Easy Upgrades provides an ongoing, Web-based customer survey for
its participants. Results of these surveys indicate general satisfaction and help guide program
Page 14 Demand-Side Management 2010 Annual Report
Idaho Power Company Introduction
improvement and marketing efforts. After each session of the Energy Efficiency and Green Living
Series, Idaho Power requests attendees fill out a customer feedback form rating the program. The H&CE
Program provides an opportunity for customer and contractor feedback through sullreys.
Cost-Effectiveness
Idaho Power considers cost-effectiveness of primary importance in the design, implementation,
and tracking of energy efficiency and demand response programs. Because of Idaho Power's diversified
portfolio of programs, most of the new potential for energy efficiency savings in the Idaho Power
service area is based on measures being added to programs, rather than new programs. The process in
the IRP for determining if additional measures should be adopted remains the same as it is for program
inclusion. Specific programs or potential energy savings measures are screened by sector to determine if
the levelized cost of these programs or measures is less than supply-side resource alternatives. If they
are shown to be lower cost than supply-side resources from a levelized cost perspective, the hourly
shaped energy savings is subsequently included in the IRP as a resource.
Prior to the actual implementation of energy efficiency or demand response programs, Idaho Power
perfoms a cost-effectiveness analysis to assess whether a specific potential program design will be cost
effective from the perspective of Idaho Power and its customers. Incorporated into these models is input
from various sources in order to use the most current and reliable information available. When possible,
Idaho Power leverages the experiences of other companies in the region, or throughout the country to
heIp identify specific program parameters.
Idaho Power's goal is for all mature programs to have benewcost (BIC) ratios greater than 1.0 for the
total resource cost (TRC) test, utility cost (UC) test, and participant cost test (PCT) at the program level
and the measure level. Only the program level tests are used in cases where there is significant
interaction between measures. This year, Idaho Power has calculated the RIM test for each program,
and the results of these calculations are included in Supplement 1: Cost-Effectiveness. Idaho Power may
launch a pilot program to evaluate estimates or assumptions in the cost-effectiveness analysis. Following
implementation of a program, cost-effectiveness analyses are reviewed annually, including actual
program information, such as actual program expenses, savings, or participation levels. If measures or
programs are determined to not be cost effective after implementation, the program or measures are
reexamined and modified based on input from the EEAG. In 2010, all of Idaho Power's energy
efficiency programs are shown to he cost-effective from the TRC, UC, and PCT perspectives. All three
of the company's demand response programs are cost-effective from both a long-term perspective as
well as for 2010 under a one-year perspective.
Appendix 4 contains the UC and TRC BIC ratios using actual cost information over the life of each
program through 2010. These B/C ratios are provided as a measure of cost-effectiveness for all
Idaho Power energy efficiency or demand response programs currently being offered where energy
savings and demand reduction are realized. A complete description of Idaho Power's methodology,
input assumptions, sources, and results is presented in Supplervient 1: Cost-Effectiveness.
DSM Annual Report Structure
The structure of Idaho Power's Denland-Side Managenrent 2010 Annual Report remained for the most
part unchanged from the 2009 report, aligning with the reporting requirements included in the MOU
with the IPUC staff.
Demand-Side Management 201 0 Annual Report Page 15
Introduction Idaho Power Company
This main Deniand-Side Managernerit 2010 Atmztal Report document remains similar to previous years,
organized primarily by customer sector categorized by residential, commercial/industria1, and irrigation.
The sector descriptions are followed by information regarding programs in that sector. Each program
description includes a chart containing 2010 and 2009 program metrics in tabular format, followed by a
general description, 2010 activities, cost-effectiveness, customer satisfaction/evaluation, and 201 1 plans.
Each program section contains detailed information in relation to program changes and the reasoning
behind those changes, including details on cost-effectiveness and evaluation. Following the sector and
program sections of the report are descriptions of Idaho Power's activities in market transformation,
other programs and activities, and Idaho Power's regulatory initiatives. The appendices following the
written sections contain tabular information on the 2010 expenses and savings and supply historic
information for all energy efficiency programs and demand response activities at Idaho Power.
Historically, Idaho Power divided its service area into five regions; 1) Canyon, consisting primarily of
Canyon and Gem counties; 2) Western, consisting of the company's Oregon jurisdiction and Adams and
Payette counties; 3) Capital, consisting of Boise, Mountain Home, and the surrounding area;
4) Southern, consisting of the Twin Falls and Sun Valley area; and 5) Eastern, consisting of the
Pocatello, Blackfoot and Salmon areas.
Idaho Power currently divides its service area into three geographic regions; 1) Canyon-West, which
combines the former Canyon and Western regions; 2) Capital, which retains the same geographic area;
and 3) South-East, which combines the former Southern and Eastern regions. Because of the historical
geographic demarcations, the three, historical regions are referred to throughout this report.
Appendices 1 4 remain generally unchanged in form and contain financial, energy and demand savings,
and levelized costs and program life B/C ratios from the UC and the TRC perspectives. In the main
report, Appendix 5 has been added. It contains detailed financial and energy savings information
separated by Idaho Power's two jurisdictions, Idaho and Oregon.
Also included this year are two supplenlents and an attached compact disc (CD). Szlpplentent I: Cost-
Effective~iess contains detailed cost effective~~ess information by program and energy-savings measure
as well as detailed financial information separated by expense category and jurisdiction. Provided in
Supplement 1 are the B/C ratios from the UC, TRC, RIM, and PCT perspectives. The RIM test is a new
addition this year. The RIM test measures the impact to customer bills or rates due to changes in utility
revenues and operating costs caused by an energy efficiency program. Idaho Power used the formula for
the RIM test as provided in the Califorliia Standard Practice Ma~ntal, Economic Analysis of
Denland-Side Progra~iis andProjects, October 2001. Szrpplenienf 2: Evalz~ation contains Idaho Power's
evaluation plans, copies of completed program evaluation reports, research reports, and reports created
by Idaho Power or third parties. A CD containing market progress evaluation reports (MPER) provided
by NEEA is attached to Supplement 2.
Page 16 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector
Description
The Idaho Power service area covers a population of a little more than one million people. At the end of
2010, Idaho Power was serving 408,754 residential customers in its Idaho and Oregon service areas.
During 2010, Idaho Power added 2,123 residential customers, making it the third consecutive year of
relatively modest growth of residential customers within the company's service area. These additional
residential customers represented a slightly lower amount than the 2,258 residential customers added in
2009. A continued sluggish regional economy and few housing starts were the main drivers of this trend.
In 2010, the residential segment represented 39 percent of Idaho Power's total electricity usage and
contributed 45 percent of total revenue for the company.
Milder temperatures, a sluggish economy, energy efficiency activities, customer education,
and successful dispatching of company-sponsored DSM programs led to a system peak of only
2,930 MW on June 28,2010, at 7:00 p.m. For the second consecutive year, Idaho Power did not set a
new summer system peak record. The record summer peak of 3,214 MW was established on June 30,
2008, at 3:00 p.m. Idaho Power continued its education and promotion of energy efficiency programs
and information to all residential customers by participating in local and regional events as well as
conducting target visits with trade allies, contractors, and vendors during the year. These tasks and
activities contributed to increased program participation and improvement in customer
satisfaction results.
Annual program savings in the residential sector of 42,850,839 kwh were recorded as part of 2010
program offerings to customers, with more than a 16-million kwh increase over 2009 program
performance of 25,979,920 kwh. While several programs experienced increased savings in 2010,
the increase in annual savings was driven mostly by growth in customer participation of both the Energy
Efficient Lighting and Home Improvement Programs. The Energy Efficient Lighting program provided
1,190,139 discounted bulbs to customers through retailers during 2010, resulting in 28,082,738 kwh in
annual savings, which more than doubled the sales of 549,846 bulbs in 2009. Participation in the Home
Improvement Program, which offers incentives for increasing attic insulation, grew from 1,661 homes to
3,537 homes in 2010, resulting in 3,986,199 kwh of annual savings. Table 5 provides a summary of
2010 residential program performance for both energy efficiency programs and the one residential
Demand-Side ~anagement 2010 Annual Report
demand response program.
Residential Sector Idaho Power Company
Programs
Table 5. 2010 Residential Program Summary
Total Costs Savings
Annual Peak
Energy Demand
Particioants Utilltv Resource lkWhl (MWI
Demand Response
AIC Cml Credit .................................................. 30,803 homes
Total .............................................................................................................................
Energy Efficiency
Ductless Heal Pump Pilot ...................................... 104 homes
Energy Efticient Lighting ..................................... 1,190.139 bulbs
Energy House Calls ....................... ., .....................
ENERGY STAR* Homes Northwest .........................
Heating 8 Cooling Effidency Program .....................
Home lmpmvement Program ....................................
Home Products Program ............................. .. .......
Oregon Residential Weatherization ..........................
Rebate Advantage ...................................................
See ya later, refrigerator* ......................................
Weatherization Assistance for Qualified Customers..
Weatherizalton Solutions for Eligible Cusfomers .......
1,602 homes
630 homes
217 homes
3,537 homes
16,322 appiiances/fixtures
1 home
35 homes
3.152 refrigeratorslfreezers
400 homaslnon-profits
47 homes
Total .......................................................................................................................... $ 8,093,078 $ 13,763,171 42,850,839
Notes:
See Appendix 3 for notes on rnslhodology and mlumn dafinmons.
Totals may no1 add up due to rounding
Programs available to residential customers include one demand response program, 12 energy efficiency
programs, and an energy efficiency educational initiative. The demand response program A/C Cool
Credit had more than 34,600 customers enrolled as of the end of 2010. The residential efficiency
programs include Energy House Calls, Rebate Advantage, ENERGY STAR@ Homes Northwest, Oregon
Residential Weatherization, Home Products, Energy Efficient Lighting, See ya later, refrigeratorn,
Weatherization Assistance for Qualified Customers (WAQC), H&CE Program, DHP Pilot,
Home Improvement, and Weatherization Solutions for Eligible Customers.
The Boise City Home Audit Project was initiated in 2010. Idaho Power partnered with the City of Boise,
which received funding initiated by the American Reinvestment and Recovery Act (ARRA), to serve as
the program implementer for the city. The combination of financial support through the act and Idaho
Power Rider funds allows the program to be fuel neutral and target 600-700 homes within the city limits
of Boise. The program is scheduled to be completed by spring 2012 and includes a blower-door test,
customer education, installation of compact fluorescent light (CFL) bulbs, low-flow showerhead,
and other energy efficiency measures for qualified customers.
Idaho Power continued to increase its participation in the number of retail and community outreach
events during 2010. Many of these events were partnerships with community retailers, including
Home Depot, Lowe's, Costco, and Fred Meyer. The company also participated in home and garden
shows, several Parade of Homes events across Idaho Power's service area, the Idaho Green Expo, a
library education series, and other community events across the company's service area.
Presentations to community groups and businesses were another emphasis during the year, with nearly
400 presentations conducted in 2010. For example, Idaho Power customer representatives made
Page 18 Demand-Side Management 201 0 Annual Report
Idaho Power Company Residential Sector
approximately 130 presentations to civic and community groups, including chambers of commerce,
school boards, service organizations, and businesses. The presentations took place during such times as
staff meetings, business lunches, and Rotary luncheons; other examples of presentations are provided in
the Residential Energy Efficiency Education Incentive section of this Deninlid-Side Mnnage~l~e~if 2010
Antiual Repo1.f. These partnerships and outreach activities created specific opportunities for the company
to share the importance of energy efficiency and give customers information and options about
participating in programs.
Idaho Power conducts the Burke Customer Relationship survey each year. Fifty-four percent of
residential survey respondents in 2010 indicated Idaho Power is meeting or exceeding their needs with
infomation on how to save energy or reduce their bill. Fifty-three percent of residential respondents
indicated Idaho Power is meeting or exceeding their needs by encouraging energy efficiency with its
customers. Overall, 37 percent of Idaho Power residential customers sur~eyed in 2010 indicated
Idaho Power is meeting or exceeding their needs in offering energy efficiency programs; while
26 percent of the residential survey respondents indicated they have participated in at least
one Idaho Power energy efficiency program. Of residential survey respondents who have participated in
at least one Idaho Power energy efficiency program, 85 percent are "very" or "somewhat" satisfied with
the program.
Demand-Side Management 2010 Annual Report Page 19
Residential Sector-NC Cool Credit Idaho Power Company
AIC Cool Credit
2010 2009
Participation and Savings
Participants participant^)^ 30,803 30,391
Energy Savings (kwh) nla nla
Demand Reduction (MW)'
Program Costs by Funding Source
Idaho Energy Efficiency Rider $7,854,979 $3,305.814
Oregon Energy Efficiency Rider $74,071 $144,622
Idaho Power Funds $73,496 $1,552
Total Program Costs-All Sources $2,002,546 $3,451,988
Program Levelized Costs
Utility Levelized Cost ($/kwh) nla nla
Total Resource BenefitICost Ratio nla nla
Program Life BenefiVCost Ratios
Utility BenefiVCost Ratio 1.11
Total Resource BenefiVCost Ratio 1.11
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2003
Program participation and demand reduction reflect enrollment as of July 3In. Year-end enrollment in the program
was 34,640 homes, with 6,095 new participants joining the program.
Description
A/C Cool Credit is a voluntaly, dispatchable demand response program for residential customers.
Using communication hardware and software, Idaho Power cycles participants' central air conditioners
(AIC) or heat pumps on and off via a direct-load control device installed on the A/C unit. Participants
receive a monthly monetary incentive for participating in the program during the summer season.
This program enables Idaho Power to reduce system peaking requirements during times when summer
peak load is high.
Individual radio-controlled or power-line carrier (PLC) switches are installed on customers' A/C units.
These switches allow Idaho Power to cycle customers' AlCs during a cycling event. As Idaho Power's
Smart Meter project expands across its service area, more new switches wiIl be PLC switches that will
allow broader participation. Under this program, Idaho Paver may cycle participants' A/Cs for up to
40 hours each month in the months of June, July, and August. In return, participants receive a
$7 per-month credit on their Idaho Power bill during July, August, and September.
2010 Activities
The program expanded its presence on the Mountain Home Air Force Base (MHAFB) housing from
522 to 803 total participants. There were three cycling events in 2010, one in each of the summer
months. The three events in 2010 were on June 29 from 4:00 p.m. to 7:00 p.m., July 16 from 4:00 p.m.
to 7:00 p.m., and August 5 from 4:28 p.m. to 7:00 p.m. Due to mild temperatures, all events were cycled
at 50 percent.
Page 20 Demand-Side Management 201 0 Annual Report
Idaho Power Company Residential Sector-NC Cool Credit
Cycling event hours continued to be in three-hour periods, pinpointing the peak time with less potential
impact on participants. Summer 2010 temperatures were mild. This resulted in fewer high-demand days,
so there was less need for cycling to reduce demand. Generally, the need for cycling starts near the end
of June when temperatures rise. With high temperatures milder in 2010, there was less need for NC.
Lower average temperatures also improve a home's ability to cool naturally overnight and retain less
heat the following day.
Marketing approaches during 2010 covered a range of methods, including bill stuffers, direct mail,
follow-up letters, and newspaper advertisements. One successful marketing piece was a letter
accompanied by a dual-purpose piece: a magnet to record important phone numbers mounted to a
cardstock reusable bookmark. This piece was sent out in three waves, with the results ranging from
1 percent to over 2.5 percent sign-up rates. All three waves had about the same response rate range.
Idaho Power employees continued visiting large businesses, providing program information,
and speaking at luncheon presentations.
The Smart Meter installations brought two new opportunities to market the A/C Cool Credit program.
The first was to advertise the program on the back of the door hanger left at the customer's home
when a Smart Meter was installed. This generated sign ups and added to the general awareness of
the program. The second opportunity provided new areas for switch installation as the Smalt Meter
area expanded into areas previously unavailable due to no, or limited, paging reception for the
radio-controlled switches.
A cause-related marketing approach, consisting of partnering with both the Idaho Foodbank and
Southeast Oregon Regional Food Bank, was repeated in 2010. It provided customers an additional
opportunity to sign up for the program. During a "limited time offer," a $20 contribution went to the
food bank in the participant's location for enrolling in the A/C Cool Credit program. The winter
promotion, from October 2009-February 2010, resulted in a total of $22,220, equal to 66,660 meals,
for the Idaho Foodbank, and $1,080, equal to 5,400 pounds of food, for the Southeast Oregon Regional
Food Bank. This marketing approach yielded 1,165 new A/C Cool Credit sign-ups in 2010.
The call center customer service representative (CSR) pilot continued into 2010. CSRs received training
in signing up new N C Cool Credit participants at the point of contact when an Idaho Power customer
initiates or transfers hisher account by phone. This resulted in 86 sign ups in 2010.
Outreach to Heating, Ventilation, and A/C (HVAC) companies continued as-needed to provide their
employees with training on the N C Cool Credit switch. Increasing the HVAC technician's knowledge
of switch boxes contributes to positive customer relations between the customer and the technician
servicing the A/C Cool Credit program participant's N C unit.
hl2010, the two paging providers discontinued their service to the Twin Falls and Pocatello areas.
A search was conducted for alternative paging providers but none were available for that area.
Alternative methods of communicating with the switches were researched. An adequate solution was not
available. This resulted in the inability to cycle the participants in those two areas during summer 2010.
In response, marketing to these areas and installation of new switches was halted.
At the May 26,2010, EEAG meeting, Idaho Power explained some of the paging issues experienced by
customers in the Twin Falls and Pocatello areas. Idaho Power asked EEAG members for feedback and
suggestions on how to proceed with this issue. EEAG members supported crediting those affected
customers on their bill with the use of non-Rider funds. The participants in these areas were paid an
incentive dispite the lack of Smart Meter communication. The company determined that it was less
Demand-Side Management 2010 Annual Report Page 21
Residential Sector-NC Cool Credit Idaho Power Com~anv
expensive to pay an incentive than to again recruit A/C Cool program participants. The Smart Meter
deployment expanded into these affected areas in late 2010, and the company began to replace paging
switches with smart grid-compatible switches. Switches started being changed out in late 2010 with
plans to continue into early spring, with the new switches being operational before the start of cycling
season 201 1.
Idaho Power initiated a process improvement in 2010, by changing the method of transferring data to
contractor, Honeywell, Inc., Utilities Solutions. In the past, each e-mail containing customer information
had to be manually encrypted when sent. This required Honeywell, Inc., to log into a special system to
access the information each time they received an encrypted e-mail. The process kept the customer data
secure, but resulted in additional time and work for both parties. Idaho Power's Information Technology
(IT) department determined that Transport Layer Security (TLS) was an equally secure method of
transferring data between the two parties and did not require manually encoding and decoding.
Once approved and in place, the new process allowed quicker transfer of data, which results in
responding to customer requests in a timelier manner,
Cost-Effectiveness
Although the B/C analysis for the A/C Cool Credit program is based on a 20-year model that uses
financial and DSM alternative costs assumptions from the 2009 LRP, the company also tracks
cost-effectiveness on an annual basis. As published in the 2009 IRP, for peaking alternatives, such as
demand response programs, a 170-MW simple-cycle combustion turbine (SCCT) is used as an avoided
resource cost. Idaho Power's A/C Cool Credit cost-effectiveness model is updated annually with actual
benefits and costs. The benefits are based on peak reduction and shifted energy use. In 2010,
the A/C Cool Credit model update included the expense of paying incentives to the Twin Falls and
Pocatello participants for which no demand reduction was realized. This additional expense had no
effect on the 20-year cost-effectiveness and no material effect on the 2010 annual cost-effectiveness.
From a long-term perspective, the A/C Cool Credit program had a TRC ratio of 1.1 1 and from a
one-year prospective a TRC ratio of 1.23. See Supplement 1: Cost-Effectiveness for details on the
cost-effectiveness assumptions and data.
Customer Satisfaction and Evaluations
In 2010,2,837 accounts ended participation in the A/C Cool Credit program. Of those, 2,807, or 98.9
percent, ended participation at approximately the same time as their Utility Service Agreement (USA)
expired. The USA is the customer's agreement with Idaho Power for electrical service. It begins when
they sign up for service, and ends when they end service.
Approximately 30 accounts, or 1 percent, stopped pa~ticipating in the program for reasons other than the
canceling of electric service. This was determined by an analysis of the end-dates for contract riders,
which are the agreements to participate in the A/C Cool Credit program, and end-dates for USAs.
In early 2010, Idaho Power contracted with Paragon Consulting Services and received a detailed plan to
evaluate the impacts of the 2010 A/C Cool Credit program, Idaho Power is using this evaluation plan as
a basis for conducting a comprehensive impact evaluation in 201 1.
2011 Strategies
In February 201 1, Idaho Power issued an RFP to evaluate the impacts of the A/C Cool Credit program,
including electrical demand reduction and energy impacts, effects of various curtailment strategies on
Page 22 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-AIC Cool Credit
indoor air temperature of participants, strategies to balance load reduction with customer comfort,
estimation of available load reduction as a non-spinning reserve resource, and identification of
parameters to predict potential load reduction. Idaho Power plans to select a contractor in March 201 1.
Customer recruitment and data collection equipment installation will col~clude iu May before the
curtailment season begins. Analysis of the data will begin in September with the final report delivered in
December 201 1.
The 201 1 program target is to reach 40,000 total participants. Once the target is achieved, the company
will continue A/C Cool Credit marketing and promotion to determine if saturation has been achieved or
if it is possible to increase participation. As Smart Meters are iustalled in those areas where the paging
signal is unavailable, the A/C Cool Credit program will be able to expand.
The remaining 1,565 paging switches will be changed out in the Twin Falls and Pocatello areas in early
201 1, so all replacements for these areas will be completed before the start of cycling season 201 1.
The majority of Smart Meter substations in these areas will be completed and operational before June 1,
201 1, with a few exceptions. Once the substation is active, communication to the new switches will be
available. The substations not commissioned before the start of cycling season will either be brought
online shortly thereafter, or serve very few A/C Cool Credit participants. The result is that Idaho Power
can cycle most of the switches/participants in the Twin Falls and Pocatello areas.
Demand-Side Management 2010 Annual Report Page 23
Residential Sector-Ductless Heat Pumo Pilot Idaho Power Company
Ductless Heat Pump Pilot
Participation and Savings
Participants (homes) 104 96
Energy Savings (kwh) 364,000 409,180
Demand Reduction (MW) n/a nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $181,969 $192,264
Oregon Energy Efficiency Rider $7,262 $9.740
Idaho Power Funds $0 $0
Total Program Costs-All Sources $189,231 $202,004
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.044 $.031
Total Resource BenefitICost Ratio $0.103 $.086
Program Life BenefitlCost Ratios
Utility BenefitlCost Ratio 3.47
Total Resource BenefiVCost Ratio 1.38
Program Characteristics
Program Jurisdiction IdahoIOregon
Proaram lnce~tion 2009
Description
Idaho Power joined the Northwest DHP Pilot project in 2009 and implemented the pilot throughout its
service area during 2009. The company extended the project as an Idaho Power DHP pilot through 2010.
A main goal of the Northwest DHP pilot project was to promote the DHP technology as an
energy-saving alternative for customers who primarily heat their homes with electsic heating.
Idaho Power offered customers a $1,000 incentive to participate.
The pmgram targets homes heated with electric zonal systems. Typically, these homes do not have air
ducting, therefore cannot easily have a forced-air heat pump system installed. This provides the
opportunity to encourage the use of DHPs. The types of electric zonal systems in the targeted homes
include baseboard, ceiling, and wall-mounted systems. Homes heated with natural gas forced-air
systems or electric forced-air systems do not qualify. Qualifications include having one indoor unit
installed in the main living area of the home. Since this is where most occupants spend the majority of
their time, and DHP systems can serve up to 1,000 square feet, this is the most efficient application of
the technology.
Other Northwest DHP Pilot goals are to determine how much energy this technology saves in order to
validate an RTF deemed-savings and to obtain customer satisfaction and behavior patterns regarding
the units.
Though the official pilot recruitment period concluded at the end of 2009, field monitoring on selected
homes throughout the Pacific Northwest, billing data analysis, and other evaluations will continue
through 20 1 1.
Page 24 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Ductless Heat Pump Pilot
2010 Activities
Idaho Power targeted 100 participants for NEEA's Northwest DHP Pilot. As participation levels neared
the 100-application limit in 2009, the company announced to contractors that Idaho Power would extend
the pilot and accept additional applications throughout 2010. Completed projects in 2010 exceeded 2009
by eight projects, or 8 percent.
Along with other utilities in the region, Idaho Power decided to continue the pilot to maintain the
valuable momentum created in the marketplace among contractors and customers. Idaho Power
promoted the pilot to customers through an article in its monthly residential customer newsletter,
Customer Connection, and by sending direct mail letters to 28,492 targeted customers based on several
factors, including energy usage during specific months and geographical region. The company also
marketed the pilot to contractors by visiting with them and informing them of the pilot.
In November, Idaho Power held a one-day training session for contractors interested in the DHP Pilot.
The Northwest DHP Pilot sponsored the event. The session covered product training and information on
how to become a participating contractor. There were 31 attendees representing 21 HVAC companies.
In the fourth quarter, Idaho Power, through its new database, improved the method to process DHP
incentive applications. Using the Customer and Load Research Information System (CLRIS), an existing
software platform, a database was developed enabling all of the application data to be entered and stored
for analysis. The database also initiated the incentive payment process. It has enabled the elimination of
multiple files previously used to store data.
Cost-Effectiveness
The Northwest DHP Pilot finished its second year in 2010. Complete details about the regional effort
can be found at the project website at www.nwductless.com. Data collection will be completed for the
13 chosen sites in Idaho Power's service area during 2011, and the post-installation billing data will be
compiled and analyzed by a regional contractor.
The RTF has released provisional annual savings, based on a one indoor-unit installation with at least
m e ton of heating capacity or greater and employ an inverted driven compressor. The savings per unit is
estimated at 3,500 annual kwh until the pilot analysis is completed. The RTF deemed one savings
metric regardless of prior cooling, whether the DHP is displacing electric-resistance heat or zonal heat,
or in what climate zone the unit is located. Participant costs in 2009 were determined by taking the
median price as reported on Idaho Power's applications. These participant prices were used because the
units purchased in Idaho Power's service area were approximately $900 less than the provisionally
deemed regional costs. In 2010 the RTF updated the participant costs to $3,400. This level of expense
confirmed what Idaho Power's data indicated; consequently, the provisionally deemed cost was used for
all cost-effective analysis in 2010. For more detailed information about the cost-effectiveness savings,
calculations, and assumptions, see the Supple~nent 1: Cost-Effectiveness.
Customer Satisfaction and Evaluations
As part of the regional pilot, a NEEA contractor conducted quality assurance (QA) on-site verifications
(OSV). The regional pilot targeted 10 percent of completed installations. In 2010, 13 DHP Pilot projects
in Idaho Power's service area were inspected by NEEA's contractor to ensure projects complied with
program requirements. The QAs proved beneficial for customers, contractors, and Idaho Power.
For example, customers were shown how to operate their systems correctly, the contractors were able to
Demand-Side Management 2010 Annual Report Page 25
Residential Sector-Ductless Heat P u m ~ Pilot Idaho Power Comuanv
review the installation requirements of the DHPs, and Idaho Power was able to observe the
installation process.
Idaho Power mailed a 12-question satisfaction survey to 52 participants in 2010, and 41 surveys were
returned, resulting in a 79 percent response rate. Most respondents heard about the DHP Pilot from their
heating and cooling contractor or a letter from Idaho Power. Sixty-eight percent of the respondents were
aware that Idaho Power offered an incentive for the purchase of a DHP prior to their purchasing one.
Seventy-three percent of the respondents indicated that the Idaho Power incentive influenced their
purchasing decision "a lot." The most common reason cited for installing a DHP was "no ducting
available for other heating sources." Ninety-eight percent of the respondents were "very satisfied"
with the DHP Pilot, and 100 percent said they "definitely would" recommend the program to a friend or
relative. Approximately 93 percent of homeowners rated their contractor as "very knowledgeable,"
while 7 percent of the contractors were rated as "somewhat knowledgeable." Results of the survey are in
Supplement 2: Evalziation.
The surveys have played an important role in evaluating the types of marketing tactics being used.
The results indicate most customers are learning about the incentive program prior to purchasing a
ductless heat pump. This result substantiates the need to market the program. Of equal importance is that
there is not one source but multiple sources needed to reach the customers. This supports the overall
strategy of trying new ways to generate market awareness. It is also apparent that, without the incentive,
these systems might not be installed at the current rate. The survey results also indicate the performance
of the overall program is valued by the customer. This supports the value in providing further
enhancements to make the program even more seamless. In addition, that the majority of the customers
indicate they would recommend the incentive to others makes customers a valuable marketing voice.
Idaho Power is continuing its participation in the Northwest DHP Pilot and evaluation. This extensive
evaluation effort is designed to provide a technical evaluation of DHP technology as a retrofit
opportunity, measure achievable energy savings, assess market response, and provide a process
evaluation of the pilot program.
In 2010, NEEA made available an MPER update for the DHP Pilot. The following are highlights
included in the report. Fifty-nine utilities participated and installed 3,899 units, exceeding the pilot's
installation goal of 2,500 units as of December 31,2009. Participants reported high levels of satisfaction
concerning understanding incentive information, finding a contractor, locating program information, and
receiving their incentive checks in a reasonable time. Of the participants, 66 percent said they would not
or might not have purchased a DHP without the incentive. Pilot participants were interviewed for the
report. Nearly 99 percent of them indicated they have the displaced electric heating equipment in place
but use their DHP as the primary heating source. Of the 20 percent of participants who were planning to
purchase some type of A/C equipment, none of them continued with that plan after they installed their
DHP. Most participants reported receiving non-energy benefits with the DHPs, such as increased
comfort, air filtration, and simple equipment control. The adaptation to large-scale integration projects
remain limited due to the concern of DHPs' performance in severe climate conditions. A copy of the
report is in Supple~nent 2: Evalztation.
2011 Strategies
Idaho Power will continue offering incentives to customers, in 201 1. Idaho Power will increase
participation in local manufacturer-training events held by local wholesalers. These training events
enable Idaho Power to reach and align with contractors not yet familiar with this pilot.
Page 26 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Ductless Heat Pump Pilot
For contractors to be eligible to participate in the DHP Pilot, they must receive mandatory DHP
factory-product training for each of the brands they sell and attend a mandatory Idaho Power orientation.
Product training is attainable via local HVAC wholesalers, manufacturer representatives,
or Idaho Power-sponsored events. The Idaho Power orientation describes specific product features and
installation methods required for incentive application approval. The con~pany orientation further
describes required installation features, such as a DHP with an inverter-driven compressor,
inverter-driven or variable-speed blower, and R410A refrigerant. Rigid line set covers aar also required.
The orientation also describes the requirements to qualify the home, install the DHP in the main living
area, submit all paperwork, and teach the homeowner how to use the DHP. Contractors are alerted that
their first installation will be inspected.
Changes to the pilot in 201 1, include modifying the incentive value fsom $1000 to $750 for installations
completed after January 31,201 1. Idaho Power redistributed the funds to increase the incentive amount
for electric-furnace to air-source heat pump incentive option in the H&CE Program. Idaho Power will
work closely with participating contractors to help them understand and apply the incentive process with
their clients. DHPs remain an emerging technology in the Idaho Power service area.
New marketing methods will be used in 201 1 to reach the target audience. Methods include participating
in residential coupon mailer packets reaching all of the Idaho Power service area, posting articles about
DHPs on social media sites that Idaho Power participates in, and advertising the pilot in newspapers that
service specific areas not generally serviced with natural gas. The traditional ongoing methods, such as
bill inserts and direct mail, will also continue in 201 1.
Satisfaction surveys will be mailed to all 201 1 incentive recipients. The response data will be compiled
and analyzed to help improve all facets of the pilot. The final pilot evaluation report is expected to be
available in 2012. The regional DHP Pilot team will provide limited QA inspections for the region in
201 1. Idaho Power will investigate augmenting the regional QA inspection with its own QA inspections.
Demand-Side Management 2010 Annual Report Page 27
Residential Sector-Energy Efficient Lighting Idaho Power Company
Energy Efficient Lighting
Participation and Savings
Participants (bulbs) 1,190.139 549,846
Energy Savings (kwh) 28,082,738 13,410,748
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $2,442,931 $1,190,065
Oregon Energy Efficiency Rider $58,347 $17,300
Idaho Power Funds $0 $1
Total Proaram Costs-All Sources $2.501.278 $1.207.366
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.020 $0.020
Total Resource BenefiVCost Ratio $0.031 $0.024
Program Life BenefiffCost Ratios
Utility BenefiVCost Ratio 4.54
Total Resource BenefitICost Ratio 3.49
Program Characteristics
Program Jurisdiction IdaholOregon
Program Inception 2002
Description
ENERGY STAR' qualified CFLs are an alternative to standard incandescent light bulbs that result in
saved money, energy, and time. Bulbs come in a variety of wattages, colors, and styles, including bulbs
for three-way lights and dimmable fixtures. ENERGY STAR bulbs use up to 75 percent less energy and
last up to 10 times longer than incandescent bulbs.
The Energy Efficient Lighting program achieves residential energy savings by replacing less-efficient
lighting with more-efficient technology. According to research performed by NEEA, the average older
home has 38 light bulbs. New homes have an average of 77 light bulbs. Changing these bulbs represents
a low-cost, easy way for all customers to achieve energy savings.
2010 Activities
There was record participation in 2010 in the Energy Efficient Lightingprogram, with incentives
provided on over one millicm bulbs. This represents approximately three bulbs per residential account.
Two promotions, one for spiral bulbs and the other for specialty bulbs, such as globes, three-way,
and reflector bulbs, were held during 2010. Idaho Power continued to run an independent retailer
promotion focusing on spiral bulbs priced at about 99 cents per bulb. Fluid Market Strategies (Fluid)
managed this promotion.
In August, the program achieved a contract sales threshold that lowered the administrative fee paid to
Fluid by $0.48 per bulb, resulting in significant cost-savings for the rest of the promotion year. Savings
are estimated at $133,005.
Page 28 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Energy Efficient Lighting
Idaho Power participated in the Bonneville Power Administration (BPA) Change a Light promotion
focused on specialty bulbs. Portland Energy Conservation, Inc. (PECI), managed this promotion from
January to March 2010. BPA awarded the promotion contract to Fluid, beginning April 1,2010.
Fluid administered the promotion for the remainder of 2010 under a new name, Simple Steps,
Smart savings-.
Both PECI and Fluid provided enhanced field support as part of their promotions. Contractor staff from
these two organizations visited stores on a regular schedule to check pricing, stock, and signage.
The result was better visibility of Idaho Power's promotions.
Additional 2010 program activities included direct distribution, in-store events, and an on-air radio
interview. Idaho Power has a small direct distribution program, whereby bulbs are given directly to
customers at approved venues. The idea is that, if given a free bulb, customers might try CFLs for the
first time or be encouraged to replace additional lamps. Guidelines for approved venues and direct
distribution have been developed to ensure customer fairness. Eight considerations a1-e used to evaluate
the appropriateness of distributing CFL bulbs to customers and include identifying venues that have an
energy efficiency tie, a residential focus, and allow for an Idaho Power presence.
During 2010, Idaho Power participated in five in-store events with large and small national retailers
designed to communicate directly to customers at the point of sale. Idaho Power had light displays at the
entrances of stores, and Idaho Power staff was available to answer questions about CFLs.
Idaho Power participated on The HomeFix Show with Joe Prin on 670 KBOI AM. The show reaches an
audience estimated at 19,320 listeners. Program staff from Idaho Power spent an hour on air answering
phone-in questions about lighting. This is an effective, low-cost marketing and education opportnnity.
Cost-Effectiveness
In 2010, the RTF updated savings assumptions for CFLs to differentiate the savings between the typical
twist bulbs and the various specialty bulb types. The RTF determined that specialty CFL use differed
from standard CFL use. While standard twist-CFLs have a storage rate of 36 percent, the RTF voted to
reduce the storage rate for specialty bulbs to 20 percent to account for higher costs, smaller package
size, and reduced socket saturation. Take-back for specialty bulbs was reduced from 5 percent to
0 percent. While the amual savings for retail spiral bulbs remained at 24 kwh after accounting for
storage and take-back, annual savings for specialty-bulbs range from 12.9 kwh to 38 kwh, depending
on their application. For detailed cost-effectiveness assumptions, metrics, and sources,
see St~pplement 1: Cost-Effectiveness.
Customer Satisfaction and Evaluations
In 2010, NEEA released the 2009-2010 Residenfial Lighting Marker Research Sftrdy prepared by the
energy consulting, testing, and certification company KEMA. The study concluded that sales of
ENERGY STAR CFLs declined in the Northwest between 2008 and 2009 and identified several
potential factors for this, including the economy and a "leveling off' of the market. Sales of utility
discounted CFLs declined less significantly than non-utility discounted CFLs. In the NEEA study,
the 2010 sales in the Northwest were expected to be higher than 2009. The study also concluded
consumer satisfaction with CFLs remains fairly high. A copy of this report is included in NEEA Market
Effects Evaluations in Supplement 2: Evaluation.
Demand-Side Management 2010 Annual Report Page 29
Residential Sector-Energy Efficient Lighting Idaho Power Company
2011 Strategies
No major changes are anticipated for the Energy Efficient Lighting program in 201 1. Idaho Power plans
to continue in-store promotions for buy downs and markdowns of bulbs. The spiral bulb promotion with
Fluid has been extended through ~ece*ber 201 1. Since Fluid is the contractor-for both promotions,
the Change a Light contract extension was negotiated to leverage the cost-savings associated with the
regional promotion. The administrative fee for this Idaho Power-only promotion will be at the same rate
as the BPA specialty promotion.
The specialty bulb promotion with BPA will go through September 201 1 and may be extended beyond.
Idaho Power will continue to distribute limited quantities of bulbs directly to customers at approved
public energy efficiency events and continue to participate in in-store educational events. The company
will monitor the market and emerging technologies.
Idaho Power is monitoring industiy trends and federal regulations to determine impacts to utility lighting
programs, such as impacts on market transformation, cost-effectiveness, and value of utility programs.
Specifically, Idaho Power is monitoring implementation of the Energy Independence andSectirity Act
of 2007 (EISA) and the new lighting technologies, such as light-emitting diode (LED) andnew
energy-efficient EISA-compliant incandescent bulbs.
EISA requires, by 2012-2014, specific light bulbs use 30 percent less energy than today's incandescent
bulbs. For traditional A-lamp, the standards will apply to 100-watt (W) bulbs in January 2012 and end
with 40-W bulbs in January 2014. By 2020, a Tier 2 would become effective requiring bulbs to be at
least 70 percent more efficient, effectively equal to today's CFLs.
The EISA, CFLs will be one of the options for customers. The market is unlikely to change immediately
for several reasons. First, the efficiency standards are phased in over several years starting in 2012. The
75-W bulbs must meet the standards by 2013 and 60-W bulbs by 2014. Second, many specialty bulbs,
such as reflectors, globes, and three-way bulbs are exempt from the law. Third, an incandescent bulb or
other bulb technology that is 30 percent more efficient could satisfy the law; however, CFLs are 75
percent more efficient. In 2010, manufacturers introduced a halogen bulb that meets the requirements
but offers only the minimum energy savings required under the law.
LED light bulbs are on display at many major retailers. In 2010, ENERGY STAR released criteria for
LED replacement bulbs. As of January 2011, there were approximately 40 products on this list;
87 percent are reflectors. Market prices for LED products are significantly higher than CFLs and
EISA-compliant halogens. Idaho Power will continue to evaluate the price, availability, savings,
and cost effectiveness to see if a cost-effective program could be offered. Idaho Power will continue to
monitor trends and developments in LED technologies.
Page 30 Demand-Side Management 2010 Annual Report
I Idaho Power Company Residential Sector-Energy House Calls
Energy House Calls
2010 2009
Participation and Savings
Participants (bulbs)
Energy Savings (kwh)
Demand Reduction 1MWI
Program Costs by Funding Source
Idaho Energy Efficiency Rider $724,895 $479,174
Oregon Energy Efficiency Rider $37,435 $90,420
Idaho Power Funds $0 $0
Total Proaram Costs-All Sources $762.330 $569.594
Program Levelized Costs
Utility Levelized Cost ($kwh) $0.054 $0.052
Total Resource BenefiffCost Ratio $0.054 $0.052
Program Life BenefitlCost Ratios
Utility BenefiffCost Ratio 3.06
Total Resource BenefiffCost Ratio 3.06
Program Characteristics
Program Jurisdiction IdaholOregon
Program Inception 2002
Description
The Energy House Calls program helps manufachwd and mobile home owners with electric heat reduce
electricity use by improving the home's efficiency. This energy efficiency program provides free
duct-sealing and additional efficiency measures to Idaho Power customers living in Idaho or Oregon in a
manufactured or mobile home and use an electric furnace or heat pump.
Services and products offered through the Energy House Calls program include duct testing and sealing
according to Performance Tested Comfort System (PTCS) standards set by the RTF and adopted by the
BPA; installing five CFL bulbs; providing two furnace filters, along with replacement instructions;
testing water heater temperature for proper setting; and distributing energy efficiency educational
materials for manufactured home occupants. The value of the service is not charged to the customer.
The value of a typical cost range of the average service call would be $325 to $550, depending on the
complexity of the repair. Idaho Power provides the customer with the sub-contractor contact
information, Customers access the service by directly calling one of the recognized, certified
sub-contractors specially trained to provide these services in their region.
Program delivery is under contract with Ecos IQ, Inc., a company with experience managing and
supplying duct-sealing service programs. Ecos IQ, Inc., coordinates the sub-contractors performing
local weatherization and energy efficiency services, processes sub-contractor paperwork, invoices
Idaho Power, and pays sub-contractors for work performed.
Demand-Side Management 2010 Annual Report Page 31
Residential Sector-Energy House Calls Idaho Power Company
2010 Activities
Idaho Power renegotiated the contract with Ecos IQ, Inc., for continuing delivery of the Energy House
Calls program during 2010. Energy House Calls serviced approximately 1,600 manufactured homes
during 2010, resulting in over 1,000,000 kwh savings. Eighty percent of the homes serviced were
located in the Treasure Valley. Twenty percent were outside the Treasure Valley, consisting of
13 percent in Southern Idaho and 7 percent in Eastern Idaho. QA was conducted on 5 percent of the
homes serviced in the program.
In 2010, lower participation was expected in areas outside the Treasure Valley, based on the assumption
those areas were saturated. However, Idaho Power continued to market to all locations within the
company's service area. Throughout the year, it became evident that there is still potential in areas
outside of the Treasure Valley.
Marketing campaigns included a bill stuffer sent to all Idaho Power residential customers, a radio spot
on the The HomeFix Show with Joe Prin on 670 KBOI, a new program brochure to be used by
Idaho Power representatives in the field and at Idaho Power-sponsored events, and a redesign of the
direct-mail letter, including a Spanish version. The direct-mail letters were sent to specific customers
four times during 2010. These additional marketing efforts created increased participation above
expectations. The bill insert was sent in August; the radio spot occuned in March; the brochure was
completed in June; the direct-mail letter was revised in March; and direct mailings were sent in January,
April, May, and July.
Cost-Effectiveness
Savings for Energy House Calls are primarily based on the savings of the duct-sealing of an electrically
heated home. The savings are specific to the different climate zones within the company's service area.
Different savings are also used based on differing types of heating and cooling equipment in the homes
where the measures are installed. Additional savings are gained from the up-to-five CFL bulbs directly
installed in the homes at the time that the duct-sealing is done.
The RTF reviewed the savings assumptions for duct sealing in manufactured homes in 2010; however,
the regional utilities are still reporting the 2007 RTF deemed savings to BPA through its Planning,
Tracking, and Reporting website. To align with the savings reported by the region to BPA,
the 2007 RTF deemed savings have been applied to all Idaho Power homes serviced in 2010.
The updated RTF savings assumptions will be applied to the program in 201 1. The revised savings
have been reviewed, and the program remains cost-effective. For more detailed information about the
cost-effectiveness savings and assumptions, see Stpplernent I: Cost-EfSectivenass.
Customer Satisfaction and Evaluations
To monitor QA in 2010, third-pasty audits, with a survey question, were conducted in 5 percent of the
homes served. Of the 78 homes inspected, 76 homes of those customers expressed that the Energy
House Call was a positive experience. Twenty-three of the 78 homes received a "fail," requiring the
sub-contractor to return to the home to remedy the situation.
Based on the review of the "failed" homes by an Ecos IQ, Inc., representative, 23 homes out of 78 was
not an acceptable failure rate. Twenty-one of the 23 failed homes were the result of a single
sub-contractor. An Ecos IQ, Inc., representative raised the concern to the contractor after each series of
QAs throughout the year. Since the last of the QAs conducted were at the end of 2010, it was apparent
Page 32 Demand-Side Management 201 0 Annual Report
Idaho Power Company Residential Sector-Energy House Calls
the issues had not been resolved. Ecos IQ, Inc., took corrective action against the sub-contractor after the
final results were received.
The remedy to these issues-after the first QA inspections con~pleted in February 2010-was to halt the
use of the worker who had the majority of the problems until he received intensive training from a
master trainer and met the master trainer's criteria post-training. The sub-contractor's performance
seemed to improve during the second round of QA inspections in June, but worsened during the
December inspections, which was followed by termination of the contractor from the program.
In 2010, Idaho Power contracted with Global Energy Partners, LLC, to provide a process evaluation of
the Energy House Calls program. This evaluation included a program data review, program logic model,
intelnal customer survey evaluation, industry best-practices comparison, conclusions,
and recommendations. The final report was received in February 201 1 and indicated that the program
"is successful despite a declining base of eligible participants," and "is surpassing its participation
goals." The report also noted that the program "is well designed," and "has an invested project
specialist." The program "incorporates several best practices," and "has an actionable marketing plan."
Additionally, "the majority of participants recommend the program to others." The main
recommendation for improvement was to develop a more accurate estimate of the eligible market for
this program. Idaho Power intends to incorporate this recommendation using the recently completed
residential end-use survey results. The results of the evaluation are in Sz~pp/el~~ent 2: Eva/ztation.
The company is currently analyzing other recommendations made by the consultants for possible future
implementation. Program changes made in 201 1 will be highlighted in next year's Demand-Side
~ A a ~ e l ~ e n t 201 1 ~nnua/ Report.
2011 Strategies
Plans for the upcoming year include continuing the direct-mail campaign to all of the Idaho Power
service area to improve participation. Because of the rapid turnover of customers in manufactured
homes, Idaho power will update the mailing list culrenily used for the direct-mail letters. The list is
generated from homes designated as being manufactured or mobile identified from the Idaho Power's
CIS. That list is analyzed for homes that appear to use electric heat, based on kwh usage during certain
months of the year. The company will also continue to explore low-cost methods of marketing this
program to all residential customers believed to have electrically heated manufactured homes. This form
of marketing may yield additional word-of-mouth promotion to new, potential program participants.
In June 201 1, the contract with Ecos IQ, Inc., expires. Idaho Power may not renew the contract because
it may be possible that the program could be fully administered internally after that date. The logistics of
such a decision will be evaluated in advance of the contract expiration.
Demand-Side Management 2010 Annual Report
Residential Sector-ENERGY STAR Homes Northwest Idaho Power Company
ENERGY STAR* Homes Northwest
2010
Participation and Savings
Participants (homes) 630 474
Energy Savings (kwh) 883,260 705,784
Demand Reduction (MW) 1 .I
Program Costs by Funding Source
Idaho Energy Efficiency Rider $369,344 $348,829
Oregon Energy Efficiency Rider $6,093 $5,928
Idaho Power Funds $168 $866
Total Proaram Costs-All Sources $375.605 $355.623
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.033 $0.039
Total Resource BenefitlCost Ratio $0.051 $0.055
Program Life BenefiVCost Ratios
Utility BenefiVCost Ratio 2.68
Total Resource BenefiffCost Ratio 2.05
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2003
Description
ENERGY STAR@ Homes Northwest is a regionally coordinated initiative supported by a partnership
between Idaho Power and NEEA to improve energy-efficient construction practices for new,
single-family homes. This program targets the lost opportunity savings and summer-demand reduction
that result from energy-efficient new construction codes and building practices. Idaho Power
accomplishes this by increasing the efficiency of the residential building envelope and
air-delivery system.
The ENERGY STAR Homes Northwest residential construction program builds homes that are at least
15 percent more energy efficient than those built to standard Idaho code. The program specifications for
ENERGY STAR Homes Northwest are verified by independent, third-party home performance
specialists (HPS) and are certified by Advanced Energy, an organization that conducts the certification
inspections for Idaho and the US Environmental Protection Agency (EPA). The homes are more
efficient, comfortable, and durable than standard homes constructed according to local building codes.
Homes that earn the ENERGY STAR label include six required specifications. The specifications found
in all ENERGY STAR qualified homes are 1) effective insulation, 2) high-performance windows,
3) tight construction and sealed ductwork, 4) energy-efficient lighting, 5) ENERGY STAR-qualified
appliances, and 6) efficient heating and cooling equipment.
In 2010, builders involved in ENERGY STAR Homes Northwest receive a $400 incentive per home
built to the Northwest Builder Option Package (BOP) standards, for both gas- and electric-heated homes
in Idaho Power's service area. Builders who enter their homes in a Parade of Homes received the
Page 34 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-ENERGY STAR Homes Northwest
standard $400 incentive plus an additional $600 incentive to encourage builders to construct
ENERGY STAR homes and enter those homes in future Parade of Homes events.
The Idaho Power program collaborates with many local entities for program management, such as
ENERGY STAR Homes Northwest and builders. A large part of the program's role in 2010 was - .
conducting education and training activities for residential new cons&ction indust~y partners.
2010 Activities
Although the 2010 housing market was still in a downturn throughout the Idaho Power service area,
630 ENERGY STAR homes were certified. This is the highest number of homes ever certified in the
Idaho Power service area in a single year. Idaho Power believes the increase in certifications during
2010 is due to builders' understanding of the value in building to ENERGY STAR standards.
Idaho Power implemented a process improvement in 2010 by moving from paper to paperless
certification and incentive processing. HPS electronically entered all field certification data on the
Northwest ENERGY STAR (NWES) database. The Idaho Power program specialist then pulled data
from the database to process incentives. This new process allowed builders to receive their ENERGY
STAR certifications and their Idaho Power incentives more quickly. It alleviated misplaced paperwork
and increased HPS accountability regarding placing certification information into the database in a
timely manner.
Idaho Power conducted numerous ENERGY STAR promotional activities during 2010. The company
presented energy efficiency awards at the Building Contractors Association of Southwest Idaho , Inc.,
(BCASWI) Parade of Homes awards banquet and at the Snake River Valley Building Contractors
Association (SRVBCA) Parade of Home awards banquet.
The company maintained a presence in the building industry by supporting the Building Contractors
Associations (BCA), throughout Idaho Power's service area. Specifically, the company participated in
the BCASWI Builder's Expo, the SRVBCA Builder's Expo, the Magic Valley Builders Association
Parade of Homes, the BCASWI Parade of Homes, SRVBCA Parade of Homes, Building Contractors
Association of South East Idaho (BCASEI) Parade of Homes, and the Idaho BCA Convention.
Media campaigns were used as a method to heighten awareness of the ENERGY STAR Homes
Northwest program. The program specialist was a guest on The HomeFix Show with Joe Prin on
670 KBOI AM, discussing the benefits and values of the ENERGY STAR Homes Northwest program
for both builders and potential homeowners.
Other marketing projects involved adding a message about this program to residential customers'
electric bills. These bill messages encouraged ldaho Power customers to visit ENERGY STAR qualified
homes in their local Parade of Homes events. A program bill stuffer sent information to all residential
customers in the ldaho Power service area.
Idaho Power was a sponsor of the 2010 St. Jude Dream Home in conjunction with NWES.
This ENERGY STAR qualified home was also certified as a National Association of Home Builders
(NAHB) green home and was the first certified and tested net-zero-energy home in Idaho. Idaho Power
and NWES produced a media campaign consisting of radio and newspaper advertising promoting
ENERGY STAR Homes and the St. Jude Dream Home. A Healthy Hon~es Guide, a booklet-targeting
consumers-containing tips and information on healthy, energy-efficient homes, was produced and
distributed throughout the valley as a part of this campaign. In addition, a bill insert promoting
Demand-Side Management 2010 Annual Report Page 35
Residential Sector-ENERGY STAR Homes Northwest Idaho Power Comoanv
ENERGY STAR Homes and the St. Jude Home was sent out during the campaign. The media campaign
culminated in June with the St. Jude Dream Home raffle, with proceeds benefiting the St. Jude
Children's Hospital.
In October 2010, the St. Jude Dream Home 201 1 kickoff and groundbreaking took place. The Dream
Home will be a ENERGY STAR qualified home. This 201 1 home will also be raffled off to benefit the
St. Jude Children's Hospital. Idaho Power will again collaborate on a smaller scale with
Northwest ENERGY STAR to support the St. Jude Dream Home project.
Idaho Power also sponsored Realtor and builder trainings. Two trainings were held in the Boise area
during 2010 to train both builders and HPS on the new 2011 ENERGY STAR specifications.
Northwest ENERGY STAR and Energy Inspectors delivered these trainings respectively.
Northwest ENERGY STAR trainers in the Boise area delivered two additional ENERGY STAR Homes
Realtor trainings. One class toured and received training in the "net-zero" St. Jude Dream Home. Fifty
area Realtors attended both sessions combined. Informal conversation with participants indicated
positive feedback regarding the training.
Cost-Effectiveness
Cost-effectiveness analysis assumptions for the 2010 ENERGY STAR Homes Northwest program
remain the same as 2009. There were no changes in building codes and standards or program
specifications that impacted the program. In summer 2010, the RTF released updated savings for this
program accounting for the new 201 1 higher baseline of building standards for ENERGY STAR homes.
These new savings estimates will be incorporated in the 201 1 program analysis. Savings for the
2010 analysis were estimated to be 1,400 annual kwh for a typical home built to ENERGY STAR home
standards based on a 2008 analysis provided by Ecotope, Inc,. The report was provided in the
Demand-Side Manageinent 2009 Annual Report S2cpplemeni 2: Evaluation. For more detailed
information about the cost-effectiveness savings, calculations, and assumptions, see Supplement I:
Cost-Effective~ias.
Customer Satisfaction and Evaluations
The HPS works with builders to ensure the constructed home is compliant with the Northwest electric-
only BOP. Along with verifying the installation of building components and equipment through on-site
inspections, prior to being qualified, the home must pass a blower door test, air-duct leakage test, and
combustion back-draft tests.
Ten percent of homes certified in the ENERGY STAR Homes Northwest program are reviewed for
QA purposes.
The State-Certifying Organization (SCO) performs QA. Energy Inspectors was the SCO for the State of
Idaho &om May 2009 to December 31,2010. Energy Inspectors is not renewing their contract for 201 1.
The Washington State University Energy Extension Program has been contracted by NEEA to assume
QA and technical assistance duties within the State of Idaho. QA results &om 2010 are in
Supplement 2: Evaluation.
2011 Strategies
The ENERGY STAR Homes Northwest program will be undergoing some changes for 201 1. Due to the
2009 International Energy Conservation Code (IECC) implementation on January 1,201 1, and adoption
by the State of Idaho, gas-heated homes are no longer cost effective. As a result, Idaho Power will no
Page 36 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-ENERGY STAR Homes Northwest
longer be paying incentives on gas-heated homes. The program will be transitioning to an electrically
heated homes program, effective January 1,201 1. Builders involved in ENERGY STAR Homes
Northwest will receive a $1,000 incentive per home built to the Northwest BOP, electric-only standards
in Idaho Power's service area. Builders showcasing their electric-only home in a BCA Parade of Homes
event will receive the standard $1,000 incentive plus an additional $500 parade marketing incentive.
During the October 26,2010, EEAG meeting, incentive payments on all electric homes and the new
code specifications on other utilities was discussed.
Idaho Power plans to continue lnarketing efforts to help sell ENERGY STAR homes, including
educating consumers, Realtors, and appraisers about the benefits and features of ENERGY STAR
homes. Results will be influenced by the housing market's potential improvements. The company is
planning a media campaign in conjunction with Northwest ENERGY STAR in late springtearly summer
201 1 throughout the Idaho Power service area. This campaign will promote the 201 1 St. Jude Dream
Home, ENERGY STAR Homes Northwest, and the program builders. This campaign will include
sending a bill stuffer in June to all residential customers.
Demand-Side Management 201 0 Annual Report Page 37
Residential Sector-Heatina & Coolina Efficiencv Proaram Idaho Power Com~anv
Heating & ~g Efficiency Program
2010 2009
Participation and Savings
Participants (homes) 217 349
Energy Savings (kwh) 1,104,497 1,274,829
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $314,963 $458,216
Oregon Energy Efficiency Rider $12,706 $20,032
Idaho Power Funds $0 $125
Total Program Costs-All Sources $327,669 $478,373
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.025 $0.034
Total Resource BenefitlCost Ratio $0.083 $0.054
Program Life BenefiffCost Ratios
Utility BenefitlCost Ratio
Total Resource BenefitICost Ratio
Program Characteristics
Program Jurisdiction Idaho/Oregon
Program Inception 2007
Description
The H&CE Program provides incentives for the purchase and proper installation of qualified heating and
cooling equipment and services to residential customers.
The objective of the H&CE Program is to acquire kwh savings and provide customers an energy
efficient alternative to other forms of electric space heating. Incentives are provided to residential
customers and HVAC contractors who install eligible equipment and services. The eligible measures in
2010 included air-source heat pumps, open-loop water-source heat pumps, and evaporative coolers.
Participating HVAC companies are required to perform all installations and services, with the exception
of evaporative coolers, which can be self-installed. The program continued through 2010 with the same - - -
portfolio of incentives.
201 0 Activities
The H&CE Program's list of measures and incentives during 2010 included the following:
Air-source heat pump customer incentives for replacing an existing air-source heat pump with a
new air-source heat pump are $200 for minimum efficiency 8.2 heating seasonal performance
factor (HSPF), and $250 for minimum efficiency 8.5 HSPF.
Customer incentives for replacing an existing electric, oil, or propane heating system with a new
air-source heat pump are $300 for minimum efficiency 8.2 HSPF, and $400 for minimum
Page 38 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Heating & Cooling Efficiency Program
efficiency 8.5 HSPF. Homes with oil or propane heating systems must be located in areas where
natural gas is not available.
Incentives for customers or builders for new construction installing an air-source heat pump in
a new home are $300 for minimum efficiency 8.2 HSPF, and $400 for minimum efficiency
8.5 HSPF.
* Open-loop water-source heat pump customer incentive for replacing an existing air-source
heat pump with a new open-loop water-source heat pump is $500 for minimum efficiency
3.5 coefficient of performance (COP).
The customer incentive for replacing an existing electric, oil, or propane heating system witli a
new open-loop water-source heat pump is $1,000 for minimum efficiency 3.5 COP. Homes with
oil or propane heating systems must be located in areas where natural gas is not available.
The incentive for customers with new construction installing an open-loop water-source heat
pump in a new home is $1,000 for minimum efficiency 3.5 COP.
The evaporative cooler customer incentive is $150.
To build and maintain relationsliips with participating contractors, the program specialist visited several
participating contractor shops throughout the year to promote the program, check for program
understanding, and offer support. The program performed 19 random OSV, 8.6 percent of the total
applicants, to verify the information submitted on the paperwork matched what was actually installed at
customers' sites. Overall, OSV results were favorable with respect to the contractors; however, a few
contractors had not installed the required sensor to lock-out strip heat above a certain outdoor
temperature. The program continues to work with contractors to help them understand why this
requirement is necessary.
The federal tax credits, available to qualifying homeowners who install energy-efficient products as
outlined in Section 25C of the Internal Revenue Service (IRS), continued through 2010. It included a
credit of up to $1,500 toward the installation of high-efficiency residential heating and cooling systems.
Feedback from contractors to Idaho Power indicated that the tax credit influenced the ratio of
applications received by Idaho Power relative to the HSPF rating of the equipment being installed.
The federal tax credit program required a minimum HSPF of 8.5. Approximately 95 percent of the
applications received by Idaho Power in 2010 for air source heat pumps were for the 8.5 HSPF rating.
The balance of applications was for the 8.2 HSPF rating.
The program was promoted at various home and garden trade shows and at other community events,
such as the Idaho Green Expo and St. Luke's Women's Show. These opportunities provided direct
access to customers, creating the opportunity to raise awareness of Idaho Power's energy
efficiency incentives.
A new, color brochure was developed, printed, and distributed. It is tailored to the residential
homeowner. The brochures were given to contractors as selling tools when they meet witli their
residential clients. Idaho Power also provides the brochures to interested customers at trade shows and
events. The flier addressed the need for a marketing resource describing the availability of the
incentives, provided guidance on heat pumps, and described important purchase considerations.
Demand-Side Management 201 0 Annual Report Page 39
Residential Sector-Heating & Cooling Efficiency Program Idaho Power Company
Idaho Power held training sessions for contractors in February, March, June, and September that
provided general instruction on heat pumps and program guidelines. Approximately 25 people attended
the sessions. These training sessions remain an important past of the program for two reasons. First,
trainings create opportunities to invite additional contractors into the program. Second, trainings support
the existing participating contractors with an increased ability to leverage the incentive program to
residential clients.
Idaho Power improved the method to process heat pump incentive applications. Using CLRIS,
a database was developed that allowed for all of the application data to be entered and stored for analysis
and for immediate initiation of the incentive payment process. The process improvement enabled the
program specialist to eliminate multiple files previously used to store, manage, and evaluate data.
Idaho Power uses a third-party contractor to pmcess the incentive applications and provide trade-ally
support. In March 2010, Honeywell, Inc., was selected as the new contractor. This change was made to
decrease costs, shorten turnaround time for processing incentive applications, and improve the
contractor and customer satisfaction. The contractors received increased local support because the
Honeywell, Inc., representative could visit contractors at their businesses as needed.
In addition, Honeywell, Inc., provides a variety of timely contractor services, such as picking up
incentive applications, returning calls quickly, and responding to questions in a thorough and customer-
oriented fashion. Honeywell, Inc., has a local presence, so Idaho Power uses them to help troubleshoot
customer/contractor issues via the representative for Honeywell, Inc., resulting in quicker resolution and
increased contractor and customer satisfaction. Idaho Power developed a portal that Honeywell, Inc.,
uses as a program database to process incentive applications. This allows Idaho Power to maintain the
database within the company's system that is secure and yet accessible to the third-party contractor.
Cost-Effectiveness
In August 2010, the RTF reviewed savings and costs for air-source heat pumps along with proper sizing
and installation saving specific to theNorthwest. Idaho Power adopted the updated savings and
calculated savings for all air-source heat pump conversions with an HSPF rating of 8.5 using the
2010 deemed-savings. These savings are specific to climate zone and the presence or absence of centsal
A/C prior to conversion. The updated RTF analysis replaced prior yeas's savings that were based on an
independent third-party analysis conducted for Idaho Power by Ecotope, Inc., in 2009.
Savings estimates for the conversion &om electric forced-air furnaces or upgrades from older air-source
heat pumps to open-loop water-source heat pumps were not analyzed by the RTF. The savings for these
measures are unchanged from the 2009 report. While savings for air-source heat pump upgrades were
also analyzed and released by the RTF in 2010, the savings were not adopted because the analyzed
baseline efficiency was an HSPF of 8.5, which is not aligned with the 2010 program design. In 2010,
the H&CE Program gave incentives for heat pump upgrades at two tiers of efficiency: tier 1 for
air-source heat pumps with an efficiency of at least 8.2 HSPF and tier 2 for heat pumps greater than or
equal to an HSPF of 8.5. Savings for open-loop water-source heat pumps and air-source heat pump
upgrades ase documented in the 2009 Ecotope, Inc., Heat Pwnp Sizing Specifications andHeat Pzrmp
Meastrres Savings Estimates that was provided in the Demand-Side Management 2009 Annual Report
Supplement 2: Evaluation. For more detailed information about the cost effectiveness savings,
calculations, and assumptions, see Strpylement 1: Cost-Efftiveness.
Page 40 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Heating & Cooling Efficiency Program
Customer Satisfactian and Evaluations
Customer satisfaction surveys were mailed to 127 participants in the H&CE Program in 2010.
Surveys containing responses to 14 questions were returned from 66 participants who received
incentives for new heat pumps, resulting in a 52 percent response rate. Respondents were asked to rate
the amount of influence the Idaho Power incentive had in their purchasing decision. Sixty-eight percent
said it had "some" influence, while 13 percent said it had "a lot" of influence. The remaining 19 percent
said it had influenced their decision "not at all." The participants were asked if they were aware of the
incentive program prior to the purchase of their heat pump. Seventy percent said they were aware of the
incentive, while 30 percent said they were not aware of the incentive program. When the participants
were asked to rate their contractor's knowledge of the incentive program, 73 percent said their
contractor was "very knowledgeable." Another 15 percent said their contractor was "somewhat
knowledgeable." The balance of respondents rated their response as "neutral," or "not very
knowledgeable," or "not knowledgeable at all," with percentages of 5 percent, 5 percent, and 3 percent
respectively. The majority of respondents, 77 percent, indicated that they heard about the H&CE
Program from their heating and cooling contractor. Seventy-seven percent of the respondents indicated
they are "very satisfied" with the H&CE Program, and 83 percent said they "definitely would"
recommend the program to a friend or relative.
The survey results indicate the incentive program continues to have substantial influence in customers'
decision process about purchasing a new heat pump. This is further supported in that the majority
claimed being aware of the incentive program prior to the purchase. The current marketing efforts,
therefore, will be continued, and new tactics will be added. In addition, the incentive process will be
further streamlined to continue the favorable opinion the customers conveyed regarding installing
contractors. The contractors' success with the program relies on their ability to understand it, thereby
encouraging more of their customers to participate in it. The survey responses also indicate the majority
of market awareness is being generated by the efforts of the contractors, This would indicate that other
marketing efforts through Idaho Power will further the message whiIe reducing the program dependency
on the contractors' efforts.
Surveys containing eight questions were also sent to the nine incentive recipients for new evaporative
coolers. Five surveys, a 55 percent response rate, were received from these recipients. When they were
asked if they were aware of the incentive prior to their purchase, 60 percent said they were,
and 40 percent said they were not. When asked to rate how much influence the incentive had in the
purchasing decision, 60 percent said the incentive had "a lot" of influence, while 40 percent said it had
influenced the decision "not at all," Sixty percent of the respondents indicated they heard about the
H&CE Program from a retail store.
For ongoing QA, Honeywell, Inc., is the third-party contractor responsible for performing OSVs.
Honeywell, Inc., inspected approximately 22 percent of the projects completed in 2010 for the H&CE
Program. Honeywell, Inc., performed OSVs on 48 installations. Of these 48 installations, 77 percent, or
37 installations, were either compliant or were brought into compliance. Contractors for the remaining
11 projects that had difficulty passing the OSV did not receive an incentive payment.
In 2010, Idaho Power contracted with Global Energy Partners, LLC, to provide a process evaluation of
the H&CE Program. This evaluation included a program data review, program logic model, inte~nal
customer survey evaluation, industry best-practices comparison, conclusions, and recommendations.
The final report was received in February 201 1 and noted that this program is "successful"
and "well designed." The program "is meeting its goals," "incorporates several best practices,"
and "has an actionable marketing plan and satisfied participants." Recommendations for program
Demand-Side Management 2010 Annual Report Page 41
Residential Sector-Heatina & Coolina Efficiencv Proaram Idaho Power Com~anv
improvement centered on enhancing relationships with HVAC contractors, especially those who have
not yet participated in this program. The results of the evaluation are in Szppletnenf 2: Evaltrufion.
The company is currently analyzing other recommendations made by the consultants for possible future
implementation. Program changes made in 201 1 will be highlighted in the Denland-Side Management
201 1 Annzral Repor?.
2011 Strategies
New program marketing tactics will be used in 201 1 to reach the target audience. Tactics include direct
mail to target customers, participating with companies distributing coupon packets from local businesses
to the Idaho Power service area, posting articles about the heat pump incentives on social media sites
that Idaho Power participates in, and advertising in newspapers in specific areas not generally serviced
with natural gas. The ongoing method of using bill inserts will continue in 201 1.
Idaho Power and the program specialist will work closely with the participating contractors to help them
maximize their ability to market the program incentives with their clients. The development of a
premium group of participating contractors is a vital component to the success of the program.
The program specialist and residential customer representatives will visit these contractors and
prospective contractors throughout 201 1.
Satisfaction surveys will he mailed to a11 2011 incentive recipients. The response data will be compiled
and analyzed to help improve all facets of the program,
Enhancements are being made to the incentives available for air-source heat pumps. The first change
will help reduce complexity in the program. Currently there are incentives for two efficiency levels,
heat pumps with minimum HSPF of 8.2 or 8.5. Only 4.8 percent of the incentives paid in 2010 were for
heat pumps with the minimum 8.2 HSPF. The 95.2 percent balance of paid incentives were for heat
pumps with a minimum 8.5 HSPF. In response to this trend and due to the measure's
non-cost-effectiveness, the 8.2 HSPF option is being eliminated in first quarter 201 1. This includes all
the types of program equipment being replaced, such as old air-source heat pumps, electric furnaces, oil
furnaces, and oillpropane furnaces, It also includes new heat pumps being installed in new home
const~uction. The second modification will be to increase the incentive for changing electric furnaces to
air-source heat pumps. This incentive will increase from $400 to $1000. In 2010, about 35 percent of the
air-source heat pump incentives paid were for the replacement of electric furnaces. The goal is to
increase participation by 30 percent in this particular category.
Idaho Power will hold several training sessions for contractors. General instruction on heat pumps as
well as program guidelines will be provided. These training sessions remain an important component of
the program. Sessions create opportunities to invite additional contractors into the program while
fortifying the abilities of the existing participating contractors to promote the incentive program to
residential clients.
Continuous process improvement during 201 1 will focus on maximizing the productivity of
Idaho Power staff and participating contractors involved with the program, and enable more time to be
placed on tasks that add direct value to the program. The goal is to identify opportunities for
complexity-reduction related to tasks performed by Idaho Power and participating contractors. Initial
areas of focus will be on program information and distribution through the H&CE Program website
pages. The navigation and display of content will be reviewed and improved to simplify access and
Page 42 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Heating & Cooling Efficiency Program
comprehension. This is necessary due to the amount of technical information and forms contained in this
program.
Demand-Side Management 2010 Annual Report Page 43
Residential Sector-Home lm~rovement Program Idaho Power Comoanv
Home Improvement Program
2010 2009
Participation and Savings
Participants (homes)
Energy Savings (kwh)
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $944,716 $321,140
Oregon Energy Efficiency Rider $0 $0
Idaho Power Funds $0 $0
Total Program Costs-All Sources $944,716 $321,140
Program Levellzed Costs
Utility Levelized Cost ($/kwh) $0.016 $0.019
Total Resource BenefiVCost Ratio $0.035 $0.032
Program Life BenefitlCost Ratios
Utility BenefiVCost Ratio 8.66
Total Resource BenefiVCost Ratio 4.39
Program Characteristics
Program Jurisdiction
Proaram lnceotion
ldaho
2008
The Home Improvement Program offers incentives to homeowners for installing attic insulation that
reduces energy-use throughout the year while impacting summer peak demand by reducing A/C use.
The program pays an incentive of 15 cents per-square-foot to Idaho residential customers in the
Idaho Power service area for additional attic insulation professionally installed after June 1,2009.
Any insulation contractor can provide this service and there is no preferred-contractor list associated
with this program. New insulation must increase the R-value by R-10 or greater.
A large majority of Idaho Power's residential customers qualify for the program, though specific
program qualifications are required to receive the incentive. Only existing, single-family homes qualify
for an incentive. This includes duplexes and townhomes with the attic area over conditioned space.
Homes must have central A/C or be electrically heated. Only attic insulation installed over conditioned
space qualifies for an incentive. An insulation contractor must professionally install the insulation.
Incentives are paid on added attic insulation up to an R-50.
2010 Activities
In May 2010, a process improvement was implemented when Idaho Power outsourced the program
incentive processing to Advertising Checking Bureau (ACB), Inc., a third-party incentive-processing
company. ACB, Inc., receives, enters, and processes all incentive applications for the Home
Improvement Program. The change resulted in improved incentive processing and payment time.
Various marketing techniques were employed in 2010. A targeted direct-mail campaign began in
May 2010 and ran through July 2010. The direct-mail letter was sent to targeted customers using the
Page 44 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Home Improvement Program
PRIZM marketing segmentation software. Response to this direct-mail piece was very positive with
large numbers of incentive applications coming in during those months. Between May 2010 and July,
640 insulation incentive payments were received and paid.
A Val-Pak Advertisement, in conjunction with the See ya later, refrigerators program, was sent out in
August, September, and October to select zip codes in the Treasure Valley and Eastern Idaho.
Phone-call volume increased substantially within days of each of the three mailings.
A bill insert went out in July, followed by a dual-program bill insert in conjunction with the See ya later,
refrigerator program in November. Both bill inserts resulted in an increased volume of calls regarding
program details and provided opportunities for customer education.
The Home Improvement Program paid 3,537 incentives during 2010, the first full year of the
program's implementation.
Cost-Effectiveness
Savings estimates for the Home Improvement Program attic-insulation measure were based on a
simulation modeling and analysis performed by Ecotope Inc. Their modeling simulated homes with and
without the duct work in the attic area of the home and focused on cooling energy savings benefits from
increased attic insulation. A 2,200 square-foot house was used as the prototype similar to ENERGY
STAR homes. For more detailed information about the cost-effectiveness savings, calculations,
and assumptions, see Stcppleinent 1: Cost-Effecfiveness.
During 2010, the RTF reviewed and deemed weatherization measures including attic insulation from a
heating perspective by climate zone. Because this analysis didnot include the impacts of central NC,
Idaho Power was unable to adopt these savings estimates for 2010 savings. As of February 2011,
the RTF decided to review these measures again and make corrections in 201 1. Idaho Power expects the
savings from cooling will be included in the new deemed savings. The overall cost-effectiveness of the
program measure can then be assessed by the presence of central NC, electric heat, or both.
Customer Satisfaction and Evaluations
Third-party contractors reviewed 7 percent of all insulation jobs completed in the Home Improvement
Program for QA purposes. Of the QA completed in 2010, two installations were considered inadequate.
These issues were addressed with the insulation installers and corrected.
In 2010, the Home Improvement Program was included in the residential process evaluation.
Idaho Power contracted with Global Energy Partners, LLC, to provide a process evaluation of the
Home Improvement Program. This evaluation included a program-data review, program-logic model,
internal customer survey evaluation, industry best-practices comparison, conclusions,
and recommendations. The final report was received in February 201 1 and showed that the program has
"surpassed its participation goal," is "cost effective," has a "very low cost per kwh saved," and "is very
affordable for customers." Recommendations for program improvement included the need to obtain
more primary data from customers to determine customer/contractor satisfaction, barriers to
participation, and customer receptiveness to offering additional measures. The results of the evaluation
are in Szpplement 2: Evahiation.
The company is currently analyzing other recommendations made by the consultants for possible future
implementation. This program is scheduled to be included in an impact evaluation in 201 1.
Demand-Side Management 2010 Annual Report
I
I Residential Sector-Home Improvement Program Idaho Power Company
2011 Strategies
Plans for the upcoming year include a targeted direct-mailing campaign in May and June.
An informational bill stuffer is being planned for June or July 201 1. Due to the success of the Val-Pak
mailing, similar mailings are being planned throughout the year with additional zip codes receiving the
mailer. A marketing campaign consisting of newspaper advertisements and radio spots is planned for
fall 201 1.
In addition to the questions on the customer's program Qualz~cation Applicaiion, a marketing question,
"How did you hear about the program?" was added in 201 1.
Analysis is currently underway to look at adding new measures to the Home Improvement Program in
201 1. Measures being considered and analyzed are walVfloor insulation, windows, duct sealing, and air
infiltration. These measures were discussed in the October 26,2010, EEAG meeting.
Page 46 Demand-Side Management 201 0 Annual Report
Idaho Power Company Residential Sector-Home Products Program
Home Products Program
Participation and Savings
Participants (applianceslfixtures) 16,322
Energy Savings (kwh) 1,443.580
Demand Reduction (MW) nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $813,171
Oregon Energy Efficiency Rider $18,990
Idaho Power Funds $0
Total Prooram Costs-All Sources $832.161
9,499
1,638,038
nla
$498,980
$1 2,283
$50
$511.313
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.057 $0.031
Total Resource BenefitCost Ratio $0.070 $0.051
Program Life BenefiVGost Ratios
Utility BenefiffCost Ratio 2.45
Total Resource BenefiVCost Ratio 1.67
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2008
Description
The Home Products Program provides an incentive payment to Idaho and Oregon residential customers
for purchasing ENERGY STAR@ qualified appliances, lighting, or other products. ENERGY STAR is a
government-backed program that designates products as energy efficient. Appliances and products with
ENERGY STAR must meet higher, stricter efficiency criteria than federal standards.
With the addition of ENERGY STAR qualified freezers in July 2010, current offerings and related
incentives include clothes washers ($501, refsigerators ($30), freezers ($20), light fixtures (up to $15 per
fixture), ceiling fans with light kits, or ceiling fan light-kit attachments (up to $20 per fixture). Program
participation is a simple process for customers. The customer completes the brief incentive application,
submits it with a copy of the sales receipt, and, if the purchase qualifies, receives an incentive check
by mail.
The Home Products Program has two additional product offerings providing the retailerlmanufacturer
the incentive as opposed to the consumer. This can translate into lower retail prices on the most efficient
units, such as those in the showerhead promotion. These products are select energy-efficient electronics
and low-flow showerheads.
Incentive payments to retailers and manufacturers, rather than the end consumer, were intended to drive
the manufacture, distribution, and promotion of more energy-efficient consumer electronics at the retail
level. This mid/upstream incentive model is potentially powerful in changing those markets with a high
volume of sales and small per-product incentive dollars.
Demand-Side Management 2010 Annual Report Page 47
Residential Sector-Home Products Program Idaho Power Company
2010 Activities
Marketing of the Home Products Program to customers occurs primarily through retail outlets.
Idaho Power provided information to store managers and employees through training sessions at store
staff meetings and through periodic visits by Idaho Power representatives. Collateral materials, such as
program brochures with application forms, were distributed to nearly 100 retail stores as needed.
In addition, program modifications were delivered via letters sent directly to store managers.
In May 2010, Idaho Power began outsourcing the processing of applications for the Home Products
Program to a third-party vendor, ACB, Inc. Through an RE' process, a vendor was chosen and ACB,
Inc., began receiving applications. The capability of this vendor allows customers to complete an online
application, print the confilmation page, and mail it with a copy of the sales receipt.
Idaho Power promoted the program directly to residential customers via retail store salespeople,
Idaho Power field staff, bill stuffers, community promotions, an updated Idaho Power program website,
an hour-long interview on The HomeFix Show with Joe Prin on 670 KBOI, and other outreach
activities. During 2010, bill stuffers detailing the program were mailed to all residential customers, one
during the summer (July), and one during the holiday season (November).
With the addition of freezers and the new processing vendor, the program brochure was redesigned and
distributed to retailers in July 2010. The brochure also serves as the application. The customer fills out
the self-mailer application, includes the sales receipt in the built-in pouch, seals the application with the
self-adhesive flap, and places a stamp on the application.
The brochure redesign allowed Idaho Power the opportunity to add an option for customers who wish to
donate their entire incentive to Project Share, an energy assistance program in which Idaho Power
partners with the Salvation Army to help those in need. From July through December, Home Products
Program participants donated $170 to this cause. A Project Share donation thank you card was created
for the Home Products Program and sent to customers who chose to donate.
In addition, hang-tags were produced and distributed to lighting showrooms and retailers who sell
qualifying fixtures. Static clings-small, sticky decals-re also distributed to retailers for placement on
qualifying clothes washers and refrigerators. The prominent focus for using hang tags and clings was to
highlight the respective incentive amounts.
The Consumer Electronics Initiative, in partnership with NEEA, continued in 2010. The initiative
provides an incentive to retailers who sell flat-screen televisions, monitors, and desktop computers that
are 30 percent more energy efficient than the minimum ENERGY STAR standard (ENERGY STAR
+30 computer monitors and desktop computers were added in 2010. NEEA managed all
aspects of the program, while, in 2010 and beyond, the finding for the initiative is taken from NEEA
partners' general funding. Only the retailers who signed contracts with NEEA are involved, though
nearly all retail stores in Idaho Power's service area will have had the opportunity to participate.
Idaho Power assisted in mwketing the initiative through a bill insert duing the holiday season
(December) highlighting the new "Energy Forward" energy-efficient electronics marketing campaign.
The Home Products Program exceeded the targets for 2010. Idaho Power paid 16,322 incentives during
2010. Incentives were issued for approximately 8,885 clothes washers; 6,025 refrigerators; 223 freezers;
676 light fixtures; 36 ceiling fans; and three light kits.
Page 48 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Home Products Program
In June 2010, Idaho Power began a retailer-based promotion for low-flow showerheads. Fluid Market
Strategies (Fluid), as part of the BPA's regional Simple Steps, Smart saving; program, administers the
program. The industry standard for showerheads is 2.5 gallons per minute (GPM). Showerheads in the
Simple Steps, Smart Savings promotion use 2.0 GPM or less, resulting in less hot water per shower and
less electricity used to make hot water. The promotion is similar to the lighting promotions with
incentives paid to manufacturers, resulting in lower retail prices for the more efficient units.
The showerhead promotion began in June 2010. Marketing for this program includes point-of-purchase
signs, Idaho Power Web content, and the BPA-sponsored website for the regional promotion. Fluid staff
conducts retailer training, visits store site to check retail signs, and monitors sales. In 2010, there were
474 promotional showerheads sold in the Idaho portion of Idaho Power's service area, resulting in
$3,318 in incentives and $199 in administrative costs. The break-out of showerheads sold included 198
of the 1.5 GPM showerheads and 276 of the 2.0 GPM showerheads. Savings realized included 20,935
kwh for the 1.5 GPM showerheads and 18,432 kwh for the 2.0 GPM showerheads.
Cost-Effectiveness
Two new measures were added to the Home Products Program in 2010, ENERGY STAR freezers and
low-flow showerheads. Savings and cost assumptions for freezers were based on deemed data from the
RTF. The RTF savings methodology was also used for low-flow showerheads. After the original RTF
savings were released in May 2010, Idaho Power adjusted the savings downward based on the electric
hot water heater saturation in the Idaho Power service area. This adjustment was based on information
&om Idaho Power's 2004 Home Energy Szrrvey. The electric hot water heater saturation percentage has
since been updated with the 201 0 Home Energy Survey results, and the low-flow showerheads still
remain cost-effective.
Clothes washers and refligerator savings and cost assumptions were also updated by the RTF in 2010.
In summer 2010, the RTF approved changing the methodology and new baselines for calculating the
saving for ENERGY STAR. In 2009, Idaho Power based annual savings of 215.19 kwh and 96.51 kwh
for clothes washer and refrigerator respectively from the Nexant, Demand Side Management Potential
StuBy (2009). As a result of the RW update, the annual energy savings for clothes washers was reduced
to 121 kwh, while refrigerator savings was reduced to 44 kwh. These reductions in savings attributed to
the program's overall reduction in annual savings between 2009 and 2010, despite the increase in
participation.
While the measures reviewed by the RTF still remain cost-effective, it was discovered that the Idaho
Power incentives for refrigerators and fleezers are higher than the RTF's updated participant cost
assumptions. Idaho Power plans to review these costs and incentive levels in 201 1 and adjust the
program accordingly.
The RTF also updated savings and cost assumptions of for ENERGY STAR lights and fixtures in 2010.
These assumptions include LED down-light fixtures, which were unavailable prior to 201 0. Of the
676 light fixtures processed in 2010, the 15 LED fixtures were shown to be not cost-effective.
In addition to the LED light fixtures, the three ceiling fan light kits that received incentives in 2010 were
also shown to be not cost-effective. There is little information on ceiling fan light kits, and the savings
and cost assumptions are based on Idaho Power staff research and assumptions. Since the Home
Products Program gives incentives to all ENERGY STAR products, the ceiling fan light kits and LED
fixtures have remained in the program for consistency purposes and customer satisfaction; however,
Idaho Power will determine if the measure will be removed or modified from the program's offerings
when the other measures within Home Products Program are reviewed in 201 1.
Demand-Side Management 2010 Annual Report
Residential Sector-Home Products Program Idaho Power Company
For more detailed information about the cost-effectiveness of these measures, see Stpplernent I:
Cost-Effectiveness.
Customer Satisfaction and Evaluations
Retail salespeople assisted in promoting the program to Idaho Power's and the retailers' mutual
customers. Information gathered from a question on the incentive application form indicated salespeople
are a proven, effective avenue for marketing the program. In fact, 55 percent of the responses indicated
salespeople were how they learned about the incentive program. This is followed by 20 percent learned
from in-store materials (brochures), 11 percent from one of two bill inserts sent to all residential
customers, 3 percent from the newspaper, 2 percent from the Idaho Power website, 8 percent from other
means, and 1 percent from radio.
The Demand-Side Management 2009 Annual Repoll indicated that a process evaluation would be
completed for the Home Products Program in 2010. Home Products Program was a relatively new
program offering in 2010, and many process changes were implemented; therefore, it was decided to
conduct a process evaluation on other residential programs in 2010. The descriptions and copies of the
process evaluations conducted in 2010 are included in Supplement 2: Evaluation.
2011 Strategies
Based on 2010 successes, the marketing strategy for 201 1 will remain similar with only minimal
adjustments and updates as needed. The Home Products Program will cross-promote with other
Idaho Power programs as opportunities arise and develop promotional materials. Idaho Power will
continually review potential products for addition to the program during 201 1 and beyond.
Participation for 2011 may not have the same spike as 2010; however, participation is expected to
remain constant, or decrease slightly from 2010 numbers. The company speculates much of the increase
in applications in 2010 was due not only to greater customer awareness of the program, but also due to
the Idaho State Energy Efficient Appliance Rebate Program (SEEARP) available to Idaho residential
customers beginning in March 2010. This state-run program offered incentives on many of the same
products as Idaho Power, but at an even higher incentive. Therefore, Idaho Power customers could apply
and receive both incentives, spurring purchases of these appliances during the time the SEEARP was in
effect. Funds supporting the SEEARP program were exhausted in 2010 and are no longer available
in2011.
The Consumer Electronics Initiative partnership with NEEA will continue in 201 1. Idaho Power will
seek opportunities to promote this initiative, when applicable.
Idaho Power will continue to participate in the regional showerhead promotion, Simple Steps,
Smart Savings. The BPA promotion will run through September 201 1, with a likely extension through
the remainder of 201 1.
Page 50 Demand-Side Management 2010 Annual Report
I
I Idaho Power Company Residential Sector--Oregon Residential Weatherization
Oregon Resid,ent[al Weathe~ization
2010 2009
Participation and Savings
Participants (homes) 1 1
Energy Savings (kwh) 320 2,907
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $0 $0
Oregon Energy Efficiency Rider $4,575 $6,359
Idaho Power Funds $1,475 $1,285
Total Program Costs-All Sources $6.050 $7,644
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.01 1 $0.203
Total Resource BenefiUCost Ratio
Program Life BenefiUCost Ratios
Utility BenefiUCost Ratio 2.28
Total Resource BenefiUCost Ratio 1.17
Program Characteristics
Program Jurisdiction Oregon
Pmaram lnce~tion 1980
Description
Idaho Power offers free energy audits for electrically heated customer homes within the Oregon service
area. This is a statutory program offered under Oregon Rate Schedule No. 78. On a customer's request,
an Idaho Power representative visits the home to analyze it for energy efficiency. An estimate of costs
and savings for specific measures is given to the customer. Idaho Power offers financial assistance for a
portion of the costs for weatherization measures, either as a cash incentive or with a 6.5 percent
interest loan.
2010 Activities
During the month of June, Idaho Power sent every Osegon residential customer an informational
brochure about energy audits and home weatherization financing, A total of 15 Oregon customers
responded. Each of the 15 customers returned a card from the brochure indicating interest in a home
energy audit, weatherization loan, or incentive payment. Twelve audits and responses to customer
inquiries to the program were completed.
Idaho Power issued one rebate totaling $46.81 for 320 kwh savings. The rebate and related savings was
for ceiling insulation. There were no loans made through this program during 2010. Two customer
responses were directed to Cascade Natural Gas because their heating source was gas. No customers
canceled their request.
Demand-Side Management 2010 Annual Report
Residential Sector-Oregon Residential Weatherization Idaho Power Company
Cost-Effectiveness
The Oregon Residential Weatherization program is a statutory program as provided for in Oregon Rate
Tariff No. 78. The cost-effectiveness of this program is defined within this tariff. Page 4 of Tariff No. 78
lists the measures that are determined to be cost effective and the required measure life cycles for
specific measures. This tariff also includes the cost-effective limit (CEL) for measure lives of 7, 15,25,
and 30 years. In 2010, the only project competed under the Oregon Residential Weatherization program
was a ceiling insulation measure. The CEL for insulation is $1.34 per annual kwh saved, and the actual
levelized cost of energy savings for the one 2010 project is just over 1 cent from the UC perspective and
6 cents from the TRC perspective, resulting in this program being considered cost effective.
2011 Strategies
Plans for the upcoming year include notifying customers in their May bill about the program.
Idaho Power will complete requested audits and fulfill all cost-effective rebate and loan applications.
Page 52 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Rebate Advantage
Rebate Advantage
201 0 2009
Participation and Savings
Participants (homes) 35 57
Energy Savings (kwh) 164,894 247,348
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $34,283 $43,954
Oregon Energy Efficiency Rider $5,119 $5,571
Idaho Power Funds $0 $0
Total Program Costs-All Sources $39.402 $49,525
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.018 $0.015
Total Resource BenefiffCost Ratio $0.031 $0.029
Program Life BenefitICost Ratios
Utility BenefiffCost Ratio 8.61
Total Resource BenefitlCost Ratio 3.57
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2003
Description
Idaho Power residential customers who purchase a new, all-electric ENERGY STAR^ qualified
manufactured home and site it in Idaho Power's service area are eligible for a $500 rebate through the
Rebate Advantage program. Salespersons receive a $100 incentive for each qualified home they sell.
In addition to offering financial incentives, the Rebate Advantage program promotes and educates
buyers and retailers of manufactured homes about the benefits of owning energy-efficient models.
The Northwest Energy Efficient Manufactured Housing Program (NEEM) establishes quality-control
and energy-efficiency specifications for qualified homes. NEEM is a consortium of manufacturers and
state energy offices in the Northwest. In addition to specifications and quality, NEEM tracks the
production and on-site performance of ENERGY STAR qualified manufactured homes.
The Rebate Advantage program helps Idaho Power customers reduce the initial costs associated with
purchasing a new, energy-efficient ENERGY STAR qualified manufactured home. This enables the
homebuyer to enjoy the long-term benefit of lower electric bills and greater comfort provided by these
homes. In addition, Idaho Power encourages sales consultants to discuss energy efficiency with their
customers during the sales process.
2010 Activities
During 2010, Idaho Power paid 35 incentives on new manufactured homes, which accounted for
approximately 165,000 kwh savings. The depressed housing economy in 2010 had a dramatic effect on
all types of housing and contributed to a lower number of incentives than expected. At least nine of the
previously participating dealerships closed between 2009 and 2010, which had a negative impact on the
Demand-Side Management 2010 Annual Report Page 53
Residential Sector-Rebate Advantage Idaho Power Company
program. Communications with other Northwest utilities conducting similar programs indicated they
also saw a sharp decrease in participation.
The marketing strategy during 2010 was more customer-focused than in the past, as opposed to strictly
using dealerships to promote the program. An Internet-based Google AdWords campaign was created
mid-July, whereby specific keyword searches prompt potential program participants to click on an
advertising link that guides them to the Idaho Power website where they learn more about energy
efficiency programs. From July through December, the campaign received 302 clicks with
285,160 impressions.
Idaho Power continued to support dealerships in 2010 by providing them with Rebate Advantage
brochures, applications, and call-out cards as needed. Customer representatives visited these dealerships
to distribute material, promote the program, and answer salespersons' questions. In April, a letter was
sent to all dealerships promoting the program, the benefits of ENERGY STAR qualified homes, and the
qualifications to participate. This letter was intended as more of a reminder piece and to generate
inquiries they may have since all of the dealerships are aware of the program and many of them
participated in 2010.
Cost-Effectiveness
ENERGY STAR manufactured home ratings are used to determine the energy savings of this program.
These savings are specific to the heating and cooling zones in Idaho Power's service area where the
home will he placed. In addition to varying by climate zone, savings vary depending on whether the
customer purchases a home with or without central A/C or if a heat pump or forced-air furnace is
chosen. For detailed lists of savings by climate zone and housing options, see Supplement I:
Cost-Effectiveness.
Customer Satisfaction and Evaluations
Idaho Power did not conduct any surveys or research on this program in 2010. A program impact
evaluation of the Rebate Advantage program is planned in 201 1. A process evaluation of the Rebate
Advantage program was scheduled for 2010; however, due to the economic downturn and decreased
participation in this program, evaluation funds were reallocated to Energy House Calls.
2011 Strategies
Idaho Power plans to continue the Rebate Advantage program in 201 1, explore new marketing methods,
and promote the program using internal resources and externally at the dealership level. Customer
representatives will enhance relationships with dealerships by visiting each dealership quarterly, offering
program support, answering questions, and distributing materials. The involvement of local Idaho Power
personnel interacting with the local dealers reemphasizes the importance of promoting the benefits of
ENERGY STAR qualified homes and products.
The company will continue to explore additional marketing strategies aimed directly at the end
consumer. These will include continuing, and revising as needed, the Google AdWords campaign;
sending a bill insert to all residential customers, which may be shared with the ENERGY STAR Homes
Northwest program; and revisiting the direct-mail letter finalized in 2010. The letter will be sent to
select Idaho Power customers using Claritas PRIZM segmentation methodology matched with company
customer information.
Page 54 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-See ya later, refrigerator
See ya later, refrigerator@
2010 2000
Participation and Savings
Participants (refrigeratorslfreezers) 3,152 1,661
Energy Savings (kwh) 1,567,736 1,132,802
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $548,872 $297,587
Oregon Energy Efficiency Rider $16,207 $7,815
Idaho Power Funds $0 $0
Total Program Costs-All Sources $565,079 $305,402
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.054 $0.041
Total Resource BenefiVCost Ratio $0.054 $0.041
Program Life BenefiffCost Ratios
Utility BenefitlCost Ratio 1.88
Total Resource BenefiVCost Ratio 1.88
Program Characteristics
Program Jurisdiction IdaholOregon
Program Inception 2009
Description
The See ya later, refrigerator@ program provides incentives to customers for recycling refrigerators and
freezers. The program acquires energy savings through the removal of refrigerators and stand-alone
fseezers from residential homes throughout Idaho Power's service area, focusing on secondary and spare
units commonly found in basements and garages. Customers receive a $30 incentive check mailed after
removal of the unit. Although all qualified units are collected, the program is targeting older, extra units
for maximum savings.
Idaho Power contracts with JACO to provide most services for this program. Idaho Power provides
participant confirmation, supplemental marketing, and internal progfam administration. Marketing
includes newspaper ads, bill inserts, Czistomer Connection afticles, website content, and promotion
at events.
JACO provides customer seivice, unit pickup, unit recycling, reporting, marketing assistance,
and incentive payments. Customers call the JACO customer service center regarding program questions
and scheduling unit collections.
JACO crews pick up units at customers' homes. While still at the customers' homes, JACO cuts the
cord, and the door seals so the refrigerator can no longer be used. JACO then transports and ships the
units to the final recycler. JACO issues the incentive payments to customers and tracks the unit
information at the account level. JACO contracts with Runyon, Saltzman & Einhom (RS&E), a
marketing firm, to provide marketing support. RS&E has experience marketing utility refrigerator
recycling programs nationwide and brings expertise and proprietary market research to Idaho Power's
program.
Demand-Side Management 2010 Annual Report Page 55
Residential Sector-See ya later, refrigerator Idaho Power Company
The See ya later, refrigerator name is trademarked by PacifiCorp. Through its JACO contract,
Idaho Power has been granted the rights to use this trademark. In 2010, PacifiCorp issued brand
guidelines specifying the capitalization, comma use, and trademark symbol for the name.
2010 Activities
During 2010, the program recycled 664 freezers and 2,488 refrigerators for an associated annual savings
of 368,520 kwh and 1,199,216 kwh, respectively.
In 2010, Idaho Power made several program improvements and worked with JACO to refine program
delivery. Early in 2010, Idaho Power and JACO refined the customer verification process to ensure
timely evaluation of participant eligibility. This program requires some sharing of customer data with
JACO. Customers enroll in the program directly with JACO. Idaho Power receives participant data
daily, reviews the information, approves or denies the participant, and transfers completed files back to
JACO. Several process improvements were made to this data transfer procedure. Idaho Power developed
an archive system to store transfeired files and refined a mechanism to search records. Programming
adjustments were made by JACO to ensure data accuracy.
A second program improvement to increase customer satisfaction was the addition of an option for
participants to donate their incentive to Project Share. Project Share is an energy assistance program in
partneiship with the Salvation Asmy. Project Share helps customers in need pay for energy services
including fnels, bills, and furnace repairs. Upon enrollment in See ya later, refrigerator, participants are
given the option to receive their $30 incentive or to donate it to Project Share. Research on similar
donation mechanisms show 2 percent of people choose this option1. The option was launched in
April 2010. Since the option became available, 2.5 percent of participants have donated their incentive,
raising $2,010 for Project Share.
The See ya later, refrigerator program also qualified Idaho Power for the US EPA Responsible
Appliance Disposal (RAD) program. RAD is a voluntary partnership program that began in October
2006 to help protect the ozone layer and reduce emissions of greenhouse gases. Idaho Power joined as a
RAD programpallner in August 2010. The program is free of charge. Companies, such as utilities,
involved in appliance recycling agree to report on units collected and materials recycled. JACO
completes this report for Idaho Power at no charge. The benefits of the program include use of EPA
RAD logo on marketing materials and opportunities for public recognition by EPA, which can serve as
an additional free or low-cost marketing opportunity.
Cost-Effectiveness
In early 2010, a regional review of refrigeratorlfreezer recycling programs was undertaken by the RTF.
The results were approved in June. The previous savings assumption based on the average life was
682-kwh annual savings with a remaining measure life of eight years for either refrigerators or freezers.
The updated savings split out the impacts between freezers and refrigerators and resulted in a differential
remaining measure life. These changes were based on data collected from regional utility programs.
Refrigerators were deemed to have an average remaining life of nine years with an annual average
savings of 482 kwh, and freezers were assigned a shorter remaining life of six years with higher savings
' Source: hrcp:/lwww.taxadrnin.drg/ftalrate/checkoff.htm1
Page 56 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-See ya later, refrigerator
at 555 kwh of annual savings. Both program measures remained cost effective in 2010. For details, see
St~pple?iient 1: Cost-Effectiveness.
Customer Satisfaction and Evaluations
JACO tracks unit statistics for each unit collected, including information on how the customer heard
about the program and when the customer enrolled. Unit statistics about the unit collected include the
age of the unit, the location it is housed, and other data, which help to refine Idaho Power's assumptions
regarding cost-effectiveness.
Results of the 2010 unit data showed that 21 percent of units the program picked up were stand-alone
freezers, and 79 percent of the units were refrigerators. Forty-eight percent of the units were secondary,
33 percent primary, and 19 percent were unknown. The average vintage of units collected was 1983,
with 63 percent of the units manufactured between 1965 and 1990, generally the least-efficient years
of manufacture.
The program reclaims or recycles up to 95 percent of the components of each unit collected. In 2010,
this translated into over 425,489 pounds of material. Reclaimed materials may include oils or
refrigerants that can be distilled and then reused.
JACO and Idaho Power also track data related to the marketing effectiveness of the program. Results of
customer tracking information indicate 45 percent of customers report learning of the program through
bill inserts, which ran in March, July, and October. Twenty percent of customers report learning of the
program through a fsiend or neighbor. Other word-of-mouth activities, such as events and utility
personnel, account for an additional 2 percent of signups. Although appliance retailers also refer
customers to the program, Idaho Power does not pursue this marketing channel because a retailer selling
a new unit will usually pick up and recycle the old one, Newspaper advertisements comprise
seven percent of enrollments. Eighty-one percent of customers enrolling in the program use the toll-free
telephone number. Nineteen percent use the online enrollment form.
Idaho Power uses the customer information that JACO and the company collect to target future
marketing efforts and increase effectiveness of marketing while reducing the cost. Figure 7 indicates
information sources and percentage of responses regarding the 3,152 customers reporting hearing about
the program through particular sources. The category "Other" includes sources, such as community
events, electric utility offices, marketing services, repeat customers, truck ads, Web Internet searches,
and unknown sources.
Demand-Side Management 2010 Annual Report Page 57
Residential Sector-See ya later, refrigerator Idaho Power Company
Figure 7. How customers heard about See ya later, refrigeratore
rn Utility bill Insert
rn Friendlneighbor
Appliance retailerjstore
I Newspaper advertising
m ldaho Power website
rn On-IineAdvertisement
rn Utility newsletter
rn Other
2011 Strategies
Idaho Power plans to continue implementing the program and managing the contract with JACO.
The media plan for 201 1 includes newspaper ads, bill inserts, Valpak ads, and customer newsletters,
pending available space. Keyword pay-per-click ads will be on Google all year. Idaho Power through
RS&E will also run Yahoo behavioral target online ads. The company will continue promotion at energy
efficiency and community outreach events and on the Idaho Power website.
A process evaluation of the See ya later, refrigerator program is scheduled for 201 1.
Page 58 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-WAQC
Weatherization Assistance for Qualified Customers
Participation and Savings
Participants (homeslnon-profits)
Energy Savings (kwh)
Demand Reduction (MW) nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $0 $0
Oregon Energy Efficiency Rider $0 $0
Idaho Power Funds $1,321,132 $1,294,862
Total Program Costs-All Sources $1,321,132 $1,294,862
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.027 $0.021
Total Resource BenefitlCost Ratio $0.035 $0.035
Program Life BenefiffCost Ratios
Utility BenefiVCost Ratio 4.68
Total Resource BenefitlCost Ratio 3.22
Program Characteristics
Program Jurisdiction IdaholOregon
Program Inception 1989
Description
The WAQC program provides funding to install cost-effective weatherization measures in qualified
owner-occupied and rental homes that are electrically heated. In 2010, qualified households included
those with incomes up to 200 percent of the federal poverty level guidelines. Energy efficiency
enhancements allow qualified families to maintain a comfortable home environment, while saving
energy and money otherwise spent on heating, cooling, and lighting. Participants receive
energy-efficiency education to help save energy in their homes. Funding is also provided for the
weatherization of buildings that house nonprofit organizations who serve special needs populations.
In compliance with IPUC Order No. 29505, Idaho Power funds the Community Action Partnership
(CAP) agencies to administer the WAQC program in its service area.
WAQC is modeled after the US Department of Energy (DOE) Weatherization Program. The DOE
program is managed through Health and Human Services offices in Idaho and by the Oregon Housing
and Community Services in Oregon. While ldaho Power funds the program, CAP agencies in the
Idaho Power service area serve as the administrators of WAQC. Federal funds are allocated to the Idaho
Department of Health and Welfare and Oregon Housing and Community Services, then to CAP agencies
based on US Census data of qualifying household income within each CAP agency's geographic area.
The CAP agencies oversee local weatherization crews and contractors, providing services and measures
that improve energy efficiency of the homes. WAQC allows these state agencies to leverage their federal
weatherization dollars and serve more residents by supplementing federal Low Income Home Energy
Assistance Program (LIHBAP) weatherization funds. Homes participating in this program must be
electrically heated.
Demand-Side Management 2010 Annual Report Page 59
Residential Sector-WAQC Idaho Power Company
Energy-saving home measures provided by this program include upgrades to windows, doors,
wall insulation, ceiling insulation, floor insulation, infiltration, ducts, water heaters, pipes, fumace
tune-ups, furnace modification, furnace replacement, and CFLs. Consistent with the State of Idaho
Weatherization Assistance Program, WAQC offers several measures that have costs but do not save
energy or savings cannot be measured. Included in this category are health and safety, vents, furnace
repair, and home energy audits. Health and safety measures are necessary to ensure weatherization
activities do not cause unsafe situations in a customer home or compromise a household's existing
indoor air quality. Other non-energy savings measures are allowed under this program to help facilitate
the effective performance of those measures yielding energy savings.
Energy-saving measures provided to non-profit buildings under this program include upgrades to
windows, doors, wall insulation, ceiling insulation, floor insulation, infiltration, ducts, water heaters,
pipes, fumace tune-ups, fumace modification, furnace replacement, and CFLs. Nonprofit building
measures that have costs, but do not save energy or savings cannot be measured, are health and safety,
vents, furnace repair, and home energy audits.
For more details on the WAQC program, view the most recent regulatory report, Weatherization
Assistance for Qzial@ed Czisto?ners 2009 Aiinztal Report, April 1,2010, located in
Szpplenlent 2: Evaluation.
2010 Activities
During 2010, CAP agencies weatherized 373 electrically heated homes in Idaho and 27 in Oregon,
totaling 400 weatherized homes. Annual energy savings were 3,452 MWh for Idaho and 289 MWh for
Oregon. There were no buildings housing nonprofit organizations that serve special needs populations
weatherized in 2010. The dollar allotment for this fund will carry over and be available for use in 201 1.
Cost-Effecfiveness
The cost-effectiveness for the WAQC program is determined using an energy savings audit program
known as Energy Audit 4 (EA4). The EA4 audit program is used by state weatherization programs and
is approved for use by the DOE. During an initial audit of a potential home, the auditor begins the use of
an EA4. The EA4 compares efficiency of measures prior to weatherization to the efficiency after the
proposed improvement. The output of the EA4 savings-to-investment ratio (SIR) is analogous to a
B/C ratio. If the EA4 computes a SIR of 1.0 or higher, where the energy-savings benefits of the
measures outweigh the cost of the project, the CAP agency is authorized to complete that energy-saving
measure(s). In addition to the individual measure SIR, the entire home weatherization job is required to
show a SIR of 1.0 or higher. In some cases, the SIR accounts for measures that provide no actual
savings, but are provided for either the health or safety of the customer or are required to make the other
measures with savings more effective. Cost-effectiveness details are located in Supplement I:
Cost-Efectiveness.
Customer Satisfaction and Evaluations
The Idaho Power program specialist participates in the Idaho state peer review process, which involves
representatives fiom the CAP agencies, Community Action Partnership Association of Idaho, Inc.
(CAPAI), and the Idaho State Department of Health and Welfare reviewing homes weatherized by each
of the other CAP agencies. Results show that all CAP agency weatherization departments are
weatherizing in accordance with federal guidelines.
Page 60 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-WAQC
Idaho Power personnel reviews weatherized homes with special needs customers as needed or requested
by customers. Annually, Idaho Power participates in the audits of 5 percent of the homes weatherized
under the WAQC program. Additionally, the DOE audits the state agencies each year. The DOE audits
include field work as well as paperwork and billing audits.
2011 Strategies
Idaho Power will continue program funding and participate in the review of WAQC. The company is
involved with the State of Idaho's Policy Advisory Council that serves as an oversight group for
weatherization activities in Idaho. Through this forum, Idaho Power participates in the weatherization
policy for the State of Idaho.
Demand-Side Management 2010 Annual Report Page 61
Residential Sector-Weatherization Solutions for Eliaible Customers Idaho Power Comuanv
Weatherization Sglutiops .. . Eligible Customers
2010 2009
Participation and Savings
Participants (homes)
Energy Savings (kwh)
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $216,202 $160,459
Oregon Energy Efficiency Rider $2,306 $0
Idaho Power Funds $9,917 $2,536
Total Program Costs-All Sources $228,425 $162,995
Program Levelized Costs
Utility Levelized Cost ($/kwh)
Total Resource BenefiVCost Ratio $0.056 $0.059
Program Life BenefiUCost Ratios
Utility BenefiUCost Ratio
Total Resource BenefiUCost Ratio
Program Characteristics
Program Jurisdiction
Prooram lnce~tion 2008
a Oregon Rider balance of $2,306 will be re-classed to the ldaho Rider in 201 1.
Description
Weatherization Solutions for Eligible Customers is an energy efficiency program designed to serve
Idaho Power residential customers who are slightly above poverty level and, therefore, do not financially
qualify for the company's larger weatherization program, WAQC. The program measures and
implementation process minors WAQC. The installation of energy efficiency measures and repairs are
allowed as long as the improvements have a SIR of 1.0 or higher or that ensure the savings due to
interaction between measures. The amount spent on each home is limited to an annual average per
home. Homes considered for this program will be electrically heated and either owned or rented.
If rented, the landlord's permission is needed, backed with an agreement of not increasing the unit's rent
for a minimum of two years.
Idaho customers eligible for this program earn income just above the federal poverty level, which is
adjusted annually. They typically do not have expendable income to participate in other residential
energy efficiency programs and live in similar housing as WAQC customers.
2010 Activities
Home Energy Management, LLC, is the contractor who administers the program throughout
Idaho Power's southern region. The total budget for this area was $200,000, which includes a 10 percent
administrative fee for Home Energy Management, LLC. Qualifying guidelines for the year were
behveen 175 percent and 250 percent of the federal poverty level.
Page 62 Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Weatherization Solutions for Eligible Customers
By year end, Home Energy Management, LLC, weatherized 40 electrically heated homes of eligible
Idaho Power customers, at no cost to the customer. Energy savings achieved was 259,100 kWhIyear,
with an average home savings of 6,477 kWh1year. Total costs were $182,478, with an average job
production cost of $4,147. Twenty manufactured homes, 17 single-family homes, two duplexes, and one
multi family unit were weatherized in 2010. Thirty-six of the 40 weatherized homes in the Southem
region were owner occupied, and four were renter occupied.
In October 2010, Energy Zone, LLC, started weatherizing homes for this program in Idaho Power's
Canyon region. By year-end, Energy Zone, LLC, weatherized seven homes saving 54,209 kwh per year,
or 7,744 average kwh per home. Energy Zone, LLC, averaged $4,494 per home production costs.
Total spending was $34,607, which included administrative fees for the contractor. Of the seven homes
weatherized, three were single-family homes and four were manufactured homes. Six of the homes were
owner occupied, and one was renter occupied.
Marketing of the program was done several ways without additional costs to the program.
The contractors advertised the program in their regions by creating program fliers that were distributed
by contractor employees throughout mobile home parks and at specific property management Realtor
offices. Fliers were also left with previous customers who spread information about the program to
families and friends who might qualify. Word-of-mouth continued to be an effective marketing tool for
the program in 2010.
Cost-Effectiveness
Like the WAQC program, Weatherization Solutions for Eligible Customers program uses the energy
audit sofware program, EA4. During an initial audit of a potential home, the auditor completes an
energy-savings audit using the EA4. The EA4 audit program is used by state weatherization programs
and approved for use by the DOE. If the EA4 computes a SIR of 1.0 or higher, Home Energy
Management, LLC, and Energy Zone, LLC, are authorized to complete that energy-saving measure.
In addition to the individual measure SIR, the entire home weatherization job project is required to show
a SIR of 1.0 or higher. Idaho Power customer representatives in the Southern and Canyon region verify
installed measures in homes of participating customers using actual job sheets submitted by Home
Energy Management, LLC, and Energy Zone, LCC. In addition to the job screening done by the agency,
Idaho Power also assesses cost-effectiveness, looking at the UC test of each measure that is allowed as
part of the contract with Home Energy Management, LLC, that currently includes windows, doors,
insulation, venting, infiltration, ducts, health and safety measures, water heater, pipes, furnace repair,
furnace reolacement. and CFL installation. The cost-effectiveness testing by measure is consistent with
standard n;ethods uskd in other programs. Actual savings and cost mea&esubmitted by CAP agencies
is used in place of deemed measure values to asses cost-effectiveness. The actual average annual savings
estimates are considered more accurate than a deemed number because of the number of inputs that are
applied from the EA4 data analysis. The final savings numbers per measure and a complete list of
cost-effectiveness assumptions can be reviewed in Szppler?ient 1: Cost-Effecfive~lers.
Demand-Side Management 2010 Annual Report Page 63
Residential Sector-Weatherization Solutions for Eliqible Customers Idaho Power Com~anv
Table 6. 2010 Weatherization Solutions for Eligible Customers: individual measure breakdown
Measure Instances installed kwh Savings Cost of measures
Windows .......................................................................... 19 49,343 $ 27.399
Doors ............................................................................. 19 27,514 14,936
Wall Insulation .... 4 13.317 4,774
Ceiling Insulation. 27 48,565 23,863
Floor Insulation .............. .. ............................................. 33 62,075 45,887
Venting ........................................................................... 23 2,981
Infiltration ..................................................................... 27 39,965 14,455
Ducts ............................................................................. 26 28,152 7,774
Health and Safety .............................. .... ........................... 29 10.326
Water heater .................................................................... 14 2,825 1,345
Pipes ................................................................................ 36 1,822 3,605
Furnace repair ................................................................ 8 1.829
Furnace replacement ....................................................... 6 32,808 24,984
CFL install ..................................................................... 44 6,923 972
Audit invest .................................................................... 46 12.221
Total ....................................................................................................................... 313,309 $ 197,351
Customer Satisfaction and Evaluations
Of the 47 participants, all customers provided written positive feedback about the work done in their
home. Each customer filled out a Customer Response/Job Completion Form provided to them at the
final visit and completion of weatherization services at their home. Most customers made positive
comments about how professional the weatherization crew was during the weatherization of their home.
Many customers thanked Idaho Power for the program and reported learning more about using
energy wisely.
2011 Strategies
The program will continue to be offered to Idaho Power customers in the Southern and Canyon regions
in 201 1. Home Energy Management, LLC, is under contract to weatherize 28 homes in Idaho Power's
Southern region, and Energy Zone, LLC, is under contract to weatherize 56 homes in Idaho Power's
Canyon region. Idaho Power will begin efforts to expand the program into the Eastern region.
The annual average cost of $6,500 per home will be used in 201 1 in order to ensure a whole-house
approach. All measures will meet the minimum savings-to-investment threshold when applied through
the state-approved energy audit.
Eligible customers will include Idaho Power customers who heat their homes electrically and earn an
income between 175 percent and 250 percent of the federal poverty level. Customers either purchasing
or renting their homes may be eligible. Idaho Power plans to save an average of 9,000 kwh per
weatherized home per year for a total energy savings of 756,000 kwh annually.
As in 2010, identification of potential participants will be made through several means. Energy
Assistance/LIHEAP applicants at CAP agencies who do not meet income qualifications are sent denial
letters. Program contractors will use thisiist of denied customers at CAP agencies to market the
Weatherization Solutions for Eligible Customers program. Contractors will distribute fliers explaining
Demand-Side Management 2010 Annual Report
Idaho Power Company Residential Sector-Weatherization Solutions for Eligible Customers
the program and qualifying guidelines to customers heating their homes with electricity provided by
Idaho Power in both regions.
Demand-Side Management 2010 Annual Report Page 65
Residential Sector-Weatherization Solutions for Eligible Customers Idaho Power Company
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Page 66 Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector
Description
Idaho Power's commercial and industrial sector consists of over 64,000 customers. In 2010,
the commercial sector's number of new customers increased by 298, an increase of 0.5 percent.
The energy usage of the commercial customers varies from a few kwh each month to several hundred
thousand kwh per month. Commercial customers represent approximately 28 percent of billed sales.
Industrial customers and the special contract sector are Idaho Power's largest individual energy
consumers. There are approximately 121 industrial customers. These customers can use millions of kwh
per month and account for about 23 percent of Idaho Power's system sales.
Energy efficiency amual energy savings increased by 27 percent to 118,473,001 kwh in 2010 when
compared to 2009 program results. Custom Efficiency represented the highest change in magnitude of
savings by increasing program 2010 annual savings by 19,744,463 kwh over 2009 annual savings,
with 91 additional projects over 2009. Building EMiciency saw the highest percentage increase amongst
commercial and industrial programs, with annual savings increasing by 43 percent over 2009 annual
savings. Table 7 is a summary of savings and expenses from the four commercial and industrial energy
efficiency programs and one demand response program.
Programs
Table 7. 2010 Commercialllndustrial program summary
Total Costs Savln~s
Peak
Annual Energy Demand
Program Participants Utlllty Resource (kwh) (MW)
Demand Response
FtexPeak Management ................................. 60 sites $ 1,902,680 $1,902,680 n/a 47.5
Total ................... .. ............................................................................... $ 1,902,680 $1,902,680 47.5
Energy Efflciency
Bu~ldtng Efficiency ............................................. 70 projects $ 1,509,682 $ 3,312,963 10,819,598 0.9
Easy Upgrades .............................................. 1,535 prOjBClS 3,974,410 7,655.397 35,824,463 7.8
Hoi~day Lighting ........................ .. ............... 25 projects 46,132 65,308 248,865 0.0
Custom EMciencv ............................................. 233 projects 8,776,125 17,172,176 71,580,075 9.5
Total ................................................................................................. $14,308,349 $28,205,844 118,473,001 18.2
Note: See Appendlx 3 for notes on methods and column definitions.
Three major programs targeting different energy efficiency projects are available to
commerciaVindustrial customers in the company's Idaho and Oregon service areas. Easy Upgrades
offers a menu of retrofit measures with prescriptive incentive amounts for lighting, HVAC, motors,
building shell, plug loads, and grocery refl-igeration. These energy-saving measures give customers the
ovtion of oersonallv choosing the best selections for incorporating energy efficiency into their business.
The ~ u i l d i n ~ ~fficienc~ pro& is available for new con&ructi& projects and large remodels.
These projects typically capture lost opportunity savings. This program continues to be successful,
incorporating qualified energy savings improvements for lighting, cooling, building shell, and
energy-control options. Participants in the Building Efficiency and Easy Upgrades programs can receive
incentives of up to $10D,000 per site per year for any approved, completed projects. The Custom
Demand-Side Management 2010 Annual Report Page 67
Commercialllndustrial Sector Idaho Power Company
Efficiency program offers financial incentives for large commercial and industrial energy users
undertaking projects that are more complex to improve the efficiency of their electrical systems or
processes. Incentive levels are 70 percent of the project cost or 12 cents per kwh for first-year savings,
whichever is less.
The Holiday Lighting program encourages commercial customers to purchase more-efficient LED
holiday lights. This program is offered to both Idaho and Oregon Customers. In 2010, the Holiday
Lighting program was evaluated from several perspectives, including customer participation, access to
LEDs in the market place, and cost-effectiveness. Based on the outcome of the research, the Holiday
Lighting program will not be offered in 201 1.
Idaho Power continues to offer the Oregon Commercial Audits program to medium and small
commercial customers.
FlexPeak Management is a demand response program offered to Idaho and Oregon commercial and
industrial customers. Idaho Power contracted with EnerNOC, Inc., a third-party aggregator, to reduce
peak demand at critical times. EnerNOC, in turn, contracts directly with Idaho Power's commercial and
industrial customers to achieve demand reduction. In May 2010, Idaho Power received the Demand
Response Program Achievement Award from the Peak Load Management Alliance (PLMA) for its
FlexPeak Management demand response program. PLMA is a non-profit group of organizations with a
business interest in electrical load that is dedicated to creating a community of expertise on demand
response and its role in creating efficient electricity markets.
The Green Rewind measure is available to Idaho Power's agricultural, commercial, and industrial
customers. The sectors' combined 56 Green Rewind motors achieved a total savings of 243,091 kwh in
2010, with 20 commercial/industrial sector motors contributing 55,126 kwh and 36 irrigation sector
motors contributing 187,965 kwh.
Ten service centers in Idaho Power's service area have the necessary equipment and training to perform
Green Rewinds. An estimated 1,200 motor rewinds are occurring annually within these service centers.
Currently, five service centers have signed on as Green Motors Practice Group (GMPG) members.
GMPG also will expand the number of service centers participating in the GMPG's Green Motors
Initiative, leading to market transformation and additional southem Idaho and eastern Oregon
kwh savings.
Motor sellrice centers are paid $2.00 per horsepower (hp) for each National Electrical Manufacturers
Association (NEMA) Standard hp rated motor between 15 and 5,000 hp that receives a verified Green
Rewind. The GMPG requires all service centers to sign and adhere to the GMPG Annual Member
Commitment Quality Assurance agreement. The GMPG follows up with quality check and QA.
Idaho Power continues to use the IDL in Boise to advance energy efficiency practices relating to
building retrofits, remodels, and new constmction. Additionally, the IDL in Boise continues to provide
clients with current and accurate information regarding energy efficiency technologies and best practices
through monthly newsletters, blog updates, and by hosting and facilitating constituent meetings.
In 2010, Idaho Power contracted with the IDL in Boise to perfom the following tasks:
Develop climate design resources specific to Idaho that can be used to facilitate passive
strategies in new commercial and industrial construction projects.
Page 68 Demand-Side Management 2010 Annual Report
Idaho Power Company Commercial/lndustriaI Sector
Conduct research and write a white paper describing a strategy for developing an energy
efficiency labeling program for all commercial, industrial, and retail buildings in Idaho.
Conduct 17 education sessions for architects, engineers, and other design and construction
professions on energy efficiency topics.
Facilitate the Idaho Building Simulation Users' Group to improve the energy
efficiency-related skills of design and engineering professionals.
Conduct research for developing a high-performance speaker's bureau.
Complete post-occupancy evaluations on three facilities that have incorporated energy
efficiency measures.
Create a demonstration and training area for electrical contractors to learn the necessary
skills to successfully install and commission daylight harvesting lighting control systems.
Research common plug load use profiles in office buildings to identify strategies to reduce
plug loads.
Provide building efficiency consultations, design analyses, and plan reviews to
Idaho Power customers.
A considerable amount of time was spent in 2010 reviewing the measure offerings and incentive levels
in Easy Upgrades, Building Efficiency, and Custom Efficiency. Several measure changes were made to
Building Efficiency due to the state adoption of the 2009 IECC. Both measure offerings and incentive
levels within Building Efficiency were changed to address the new code. With a large percentage of
lighting projects completed in both Easy Upgrades and Custom Efficiency, lighting was a focus in 2010.
Based on that review, several changes will be implemented in 201 1 to both programs' lighting offerings.
The changes are designed to make the programs more consistent in their application and review process
and with the program terms and conditions. Additionally, an increased focus was placed on pre- and
post-project inspections on lighting projects.
Other customer satisfaction research by sector includes the Idaho Power quarterly customer relationship
surveys that ask questions about customer perceptions related to Idaho Power's energy efficiency
programs. In the 2010 surveys, 55 percent of Idaho Power's large commercial and industrial customers
surveyed in 2010 for the Burke Customer Relationship survey indicated Idaho Power was meeting or
exceeding their needs in offering energy efficiency programs. Forty-five percent of survey respondents
indicated Idaho Power was meeting or exceeding their needs with information on how to save energy or
reduce their bill. Sixty-eight percent of respondents indicated Idaho Power was meeting or exceeding
their needs with encouraging energy efficiency with its customers. Overall, 74 percent of the large
commercial and industrial survey respondents indicated they have participated in at least
one Idaho Power energy efficiency program. Of large commercial and industrial survey respondents
who have participated in at least one Idaho Power energy efficiency program, 94 percent are "very"
or "somewhat" satisfied with the program.
The results from surveying Idaho Power's small business customers indicated that 35 percent of these
customers said Idaho Power was meeting or exceeding their needs in offering energy efficiency
programs. Forty-nine percent of survey respondents indicated Idaho Power was meeting or exceeding
their needs with information on how to save energy or reduce their bill. Fifty-five percent of respondents
Demand-Side Management 2010 Annual Report Page 69
Commercial/lndustriaI Sector Idaho Power Company
indicated Idaho Power was meeting or exceeding their needs with encouraging energy efficiency with its
customers. Overall, 16 percent of the small business survey respondents indicated they have participated
in at least one Idaho Power energy efficiency program. Of small business susvey respondents who have
participated in at least one Idaho Power energy efficiency program, 87 percent are "very"
or "somewhat" satisfied with the program.
In 201 1, Idaho Power will focus on successfully integrating all of the new program changes across the
sector programs. That focus will include identifying process improvements, supplying energy efficiency
specific education to Idaho Power trade allies, contractors, and customers, and completing more pre- and
post-project inspections. Additionally, the programs will analyze recommendations from the process
evaluations conducted on the commercial and industrial programs in 2010.
Effective July 14,2012, there will be new Standards for General Sellrice Fluorescent Lamps.
Idaho Power is reviewing the new requirements and will consider them when deciding what changes
to make for the lighting measures and respective incentives for the 2012 commerciaWindustria1
lighting measures.
Page 70 Demand-Side Management 2010 Annual Report
I Idaho Power Company Commercial/lndustriaI Sector-Building Efficiency
Building Efficiency
2010 2009
Participation and Savings
Participants (projects) 70 72
Energy Savings (kwh) 10,819,598 6,146,139
Demand Reduction (MW) 0.9 1.3
Program Costs by Funding Source
Idaho Energy EMciency Rider $1,466,179 $$1,300,466
Oregon Energy Efficiency Rider $43,422 $26,323
Idaho Power Funds $81 $339
Total Program Costs-All Sources $1,509,682 $1,327,128
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.016 $0.024
Total Resource BenefiffCost Ratio $0.035 $0.043
Program Life BenefitlCost Ratios
Ut~lity BenefiKost Ratio 4.62
Total Resource BenefiffCost Ratio 2.69
Program Characteristics
Program Jurisdiction Idaho/Oregon
Program Inception 2004
Description
The Building Efficiency program enables customers in Idaho Power's service area to apply
energy-efficient design features and technologies that would otherwise be lost opportunities for savings
to their projects. The program offers a menu of measures and incentives for lighting, cooling, building
shell, and control-efficiency options. Customers involved in the construction of new buildings or
construction projects with significant additions, remodels, or expansions can receive incentives up to
$100,000. Commercial and industrial customers taking service under, or who will take service under,
Schedule 7 (Small General Service), Schedule 9 (Large General Service), Schedule 19 (Large Power
Service), or special-contract customers are eligible to participate. Program marketing is targeted at
architects, engineers, and other local design professionals.
- Idaho Power is aprimary sponsor of the IDL in Boise, which provides technical assistance and training
I seminars to local architects, en ineers, and designers. Much of this activity is coordinated and supported a? through NEEA's BetterBricks program. The Building Efficiency program sponsors the biannual
BetterBricks awards held in October in Boise. The BetterBricks awards recognize leaders whose work
supports the design and operations of high-performance buildings and their commitment to energy
efficiency. The Building Efficiency program also sponsors technical lunch-and-learn sessions geared to
educate design professionals and the Idaho Building Simulation Users' Group. The Building Simulation
Users' Group is designed to improve the energy efficiency-related simulation skills of local design and
engineering professionals.
Demand-Side Management 2010 Annual Report Page 71
Cornmercialllndustrial Sector-Building Efficiency Idaho Power Company
2010 Activities
The Building Efficiency program completed 68 Idaho and two Oregon projects in 2010, resulting in
10,552,135 kwh in energy savings in Idaho and 267,493 kwh in energy savings in Oregon. The increase
in energy savings is attributed to an increase in the number of projects incorporating energy
management control systems for lighting and HVAC.
New construction and major renovation project design and construction life is much longer than small
retrofits and requires consistency in program measures and operation. To reduce confusion for
customers with long construction projects, the Building Efficiency program did not change in 2010,
maintaining a consistent and clear program for customers.
Fourteen measures are offered through this program and include reduced-power-density lighting,
daylight photo controls, occupancy sensors, high-efficiency exit signs, premium efficiency HVAC units,
additional unit efficiency bonus, efficient complex cooling systems, air-side economizers, reflective roof
treatment, high-performance windows, window shading, energy management control system,
demand-control ventilation, and variable-speed drives.
Technical training and assistance continue to be important in educating design professionals in energy
efficiency design for new constiuction and major renovations. Influencing a project early in the design
phase will have the most impact and least amount of lost opportunity. Seventeen technical training
lunches were completed in 2010, with 338 attendees, including architects, engineers, interior designers,
and project managers. Topics included Integrated Design Principals, Commissioning, Benchmarking +
Measurement and Verification, Daylight in Buildings: Getting the Details Right, Demand Control
Ventilation, Daylight Sensing Electric Lighting Controls, High Performance Classrooms, The Role of
Life Cycle Cost Assessment in Idaho, and Hybrid Cooling and Performance Modeling.
In 2010, Idaho Power evaluated program changes and modifications to be implemented beginning 201 1.
The 2009 IECC was implemented in the State of Idaho effective January 1,201 1. The impact of IECC
2009 on program measure savings and incentives were researched and reviewed. The existing measures
were evaluated along with the current participation levels for each measure. Customer and customer
representative feedback indicated the need to simplify incentive payment calculations. The 201 1
Building Efficiency program has been modified to reflect the impact of these recommendations and
implementation of IECC 2009.
Cost-Effectiveness
To calculate energy savings, the Building Efficiency program measures the incremental efficiency of
each measure over a code or standard-~ractice installation baseline. Savings are calculated through - -
two main methods. When available, savings are calculated using actual measurement parameters for
both the measure at code and at efficiency.
The other method for calculating savings in the program is based on industry-standard assumptions
when precise measurements are not available. Since Building Efficiency is a prescriptive program,
and the measures are being installed in new buildings, there are no baselines of previous measureable
kwh usage in the building. Therefore, industry standard assumptions from regional and national sources
including the RTF, the Database for Energy Efficiency Resources (DEER), and the Consortium for
Energy Efficiency, Inc. (GEE) are used to calculate the savings achieved over how the building would
have used energy absent of efficiency measures.
Page 72 Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector-Building Efficiency
Building Efficiency incentives are based on a variety of methods depending on the measure type.
Incentives are calculated mainly through a dollar-per-unit equation using square footage, tonnage,
operating hours, or kilowatt (kW) reduction as the unit being used. Complete measure level details for
cost-effectiveness can be found in Sz~pple~nent I : Cost-Effective~~ess.
Custamer Satisfaction and Evaluations
In 2010, Idaho Power contsacted with The Cadmus Group, Inc., to provide a process evaluation of the
Building Efficiency program. This evaluation included a program data review, program logic model,
internal customer survey evaluation, industsy best practices comparison, and conclusions and
recommendations. The final report was received in February 201 1 and noted that Idaho Power, as a
primary sponsor of the IDL in Boise, provided free technical assistance and training to local architects
and designers through the Building Efficiency program. The report also noted that this program
increased in participation by 20 percent in the last year. Recommendations for progam improvement
included the need to update program collateral materials and conduct additional market research with
program participants and non-participants. Idaho Power is currently analyzing all recommendations.
The complete report is provided in Szpplement 2: Evaluation.
The comoanv also contracted with The Cadmus Grouo. Inc.. to conduct a Market Characterizution . . . .
Study for this program. Among other things, this study includes a scenasio that applies a comparison of
current and forecasted market penetration to the cost-effective potential estimated in the Demand Side
Management Pafenrial Study, A A ~ I ~ ~ I S ~ 14, 2009 report by Nexant. The gap analysis indicates the Building
Efficiency program is culrently exceeding the savings potential estimates, especially in the HVAC
sector. The analysis also shows current program costs per MWh are approximately one-half of the costs
estimated in the potential study. The complete report is provided in Supplelnent 2: EvaEuation.
The IDL in Boise also performed additional post occupancy evaluations of the program in 2010.
The post-occupancy evaluation specifically focused on opposlunities for pre- and post-intervention
studies and on identifying opportunities for education and further research The final report is scheduled
for delivery in March 201 1, and Idaho Power will consider all viable recommendations identified in
the report.
2011 Strategies
In 201 1, Idaho Power will implement program changes and modifications to align with IECC 2009 as
the base line for energy-savings calculations. The 201 1 program will have simplified incentive
calculations and increased energy efficiencies for qualification. A briefing on the modifications was
presented at the October 26,2010, EEAG meeting, and questions were addressed.
Final reports from The Cadmus Group, Inc.'~, 2010 process evaluations were received in February 201 1.
All viable arocess recommendations will be considered and prioritized for implementation in 201 1.
Process changes implemented in 201 1 will be highlighted inthe ~entand-Side Management 2011
Annual Report.
The Building Efficiency program will continue to sponsor technical training through the IDL in Boise.
Technical trainings will expand to include two to four education sessions based on energy efficiency
education needs of design professionals in the Pocatello, Twin Falls, and Sun Valley markets.
~ e m a n d ~ i d e Management 2010 Annual Report Page 73
Comrnercia111ndustriaI Sector-Custom Efficiency Idaho Power Company
Custom Efficiency
Participation and Savings
Participants (projects)
Energy Savings (kwh)
Demand Reduction iMW)
Program Costs by Funding Source
Idaho Energy Efficiency Rider $8,046,168 $5,816,305
Oregon Energy Efficiency Rider $717,132 $236,910
Idaho Power Funds $14,825 $8,252
Total Program Costs-All Sources $8,778,125 $6,081,467
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.014 $0.013
Total Resource BenefiUCost Ratio $0.027 $0.024
Program Life BenefitlCost Ratios
Utility BenefiUCost Ratio 7.85
Total Resource BenefitICost Ratio
Program Characteristics
Program Jurisdiction
Proaram lncewtion
a Does not include Green Motor Rewinds
Description
The Custom Efficiency program targets energy savings by implementing customized energy efficiency
projects at customers' sites. The program is an opportunity for commercial and industrial customers in
Idaho and Oregon to lower their electrical usage and receive a financial incentive by completing
energy-efficient projects. Incentives reduce customers' payback periods for projects that might not be
completed otherwise. Program offerings include training and education on energy efficiency, energy
auditing services for project identification and evaluation, and financial incentives for project
implementation.
Interested customers submit applications to Idaho Power for potential projects that have been identified
by a third-party consultant, Idaho Power, or by the customer as applicable to the facility. Idaho Power
engineers work with customers and vendors to gather sufficient information to support the
energy-savings calculations.
Project implementation begins after Idaho Power reviews and approves an application, followed by the
fmalization of the terms and conditions of the applicant's and Idaho Power's obligations. In some cases,
large, complex projects may take as long as two years to complete. Oftentimes, Idaho Power conducts
follow-up or post-inspection validation via third-party engineering films. Incentive levels for the
Custom Efficiency program stayed at 70 percent of the project cost, or 12 cents per kwh first-year
savings, whichever is less.
Page 74 Demand-Side Management 2010 Annual Report
Idaho Power Company Commercial/lndustriaI Sector-Custom Efficiency
2010 Activities
A total of 223 projects were completed in 2010 by 152 companies, including 19 Oregonprojects from
12 different companies. Program energy savings increased in 2010 by 38 percent over the prior year,
from 51,836 MWh to 71,525 MWh. Completed projects increased by 74 percent in 2010. The increase
in program participation and energy savings was a direct result of increased participation of lighting and
fan projects. As stated in the sector overview, Green Rewind is available to Idaho Power's Custom
Efficiency customers. This measure maintains the motor's original efficiency and ensures an efficient
use of electricity to run the motor. There were 20 Green Rewind motors in the commerciallindustrial
sector in 2010, contributing 55,125 kwh in savings.
Key components in facilitating customer implementation of energy efficiency projects are facility
energy auditing, customer technical training, and education services. Because the link between energy
audits and completion of projects is historically significant, Idaho Power continued expanding the
number of contractors available for customer scoping audits from six companies in 2009 to eight
companies in 2010. Selection of engineering firms is based on the firm's expertise in all major
equipment areas and their ability to provide resources for customers throughout Idaho Power's
service area.
Technical training and education continue to be important in helping Idaho Power industrial customers
identify where they may have energy efficiency opportunities within their facilities. A total of
10 technical training classes were completed in 2010. Topics included compressed air, chilled water
systems, pumping systems, variable frequency drives, and refrigeration. The level of attendance at these
classes remains high with a total of 234 customers attending the workshops.
The Custom Efficiency program has achieved a high service area penetration rate. Through 2010,
approximately 73 percent of the large power service customers submitted an application for a project.
Idaho Power engineers met with another 18 percent of the customers to discuss energy efficiency
programs and opportunities within customer facilities. In summary, 91 percent of large power service
customers submitted projects to, or met, with Idaho Power.
Table 8 shows the Custom Efficiency program's annual energy savings by end use, number of projects,
and kwh saved.
Table 8. Custom Efficiency annual energy savings by measure
Program Summary By Measure Number of projects kwh saved
Lighting ....................................................................................... ................... 1 59 33,234,770
Fan .................................................................................................................. 28 13,614,289
Compressed Air ............................................................................................ 5 6,738,503
Pump .............................................................................................................. 3 2,567,460
Refrigeration ................... ...... ...................................................................... 14 10,387,189
Other ............................................................................................................... 21 4,982,738
Total ............................................................................................................... 223 71,524,949'
'Does not include Green Motor Rewinds
Cost-Effectiveness
All projects submitted through the Custom Efficiency program must meet cost-effectiveness
requirements, which include TRC, UC, and PCT tests from a project perspective. The program requires
em and-side Management 201 0 Annual Report Page 75
CommercialllndustriaI Sector-Custom Efficiency Idaho Power Company
all costs related to the energy efficiency implementation and energy-savings calculations are gathered
and submitted with the program application. Payback is calculated with and without incentives, along
with the estimated dollar savings for installing energy efficiency measures. As the projects progresses,
any changes to the project are used to recalculate energy savings and incentives before the incentives are
paid to the participant. To aid in gathering or verifying the data required to conduct cost-effectiveness
and energy-savings calculations, third-party engineering firms are sometimes utilized via a Scoping
Audit, Detailed Audit, or engineering measurement and verification services available under the Custom
Efficiency program. Details for cost-effectiveness are in Suppler~~ent 1: Cost-Effectiveness.
Customer Satisfaction and Evaluations
Each project in the Custom Efficiency program is thoroughly reviewed to ensure energy savings
are achieved. Idaho Power engineering staff or a third-party consultant calculates the energy savings.
The verikation process requires end-use measure information, project photographs, and project costs
are collected.
On many projects, and especially larger and more complex projects, Idaho Power or a third-party
consultant conducts on-site power monitoring and data collection before and after project
implementation. The measurement and verification process ensures achievement of projected energy
savings. Verifying applicants' information confirms that demand reduction and energy savings are
obtained and within program guidelines. If changes in scope take place in a project, a recalculation of
energy savings and incentive amounts occurs, based on the actual installed equipment and performance.
The measurement and verification reports provided to Idaho Power include verification of energy
savings, costs, estimates of measure life, and any final recommendations to ensure the persistence
of savings.
In 2010, Idaho Power contracted with The Cadmus Group, Inc., to provide a process evaluation of the
Custom Efficiency program. This evaluation included a program data review, program logic model,
internal customer survey evaluation, industry best practices comparison, conclusions,
and recommendations. The final report was received in Febrnary 2011 and stated that "overall,
the program is operating smoothly from design to implementation," and "in many ways, the Custom
Efficiency program exemplifies a quality efficiency program compared to similar efforts across the
country." Recommendations for program improvement included the completion of the program manual
including pre- and post-inspection protocols and standards and the need to conduct additional market
research with program and trade ally participants. Idaho Power is currently analyzing all
recommendations. Any program changes made in 201 1 will be highlighted in the Demand-Side
Management 2011 Annual Report. The complete report is provided in Supplement 2: Evaluation.
The company also contracted with The Cadmus Group, Inc., to conduct a Market Characterizafion
Study for this program. Among other things, this study includes a scenario that applies a comparison of
current and forecasted market penetration to the cost-effective potential estimated in the Denlandside
Management PotentialSfudy, August 14, 2009 report by Nexant. The gap analysis shows that the
Custom Efficiency program is currently meeting the forecasted achievable potential savings and the
costs per MWh are similar to the forecast in the potential study. The complete report is provided in
Supplement 2: Evaluation.
Because the customers who participate in the Custom Efficiency program are some of Idaho Power's
largest customers, program managers or major customer representatives solicit customer satisfaction
feedback for the Custom Efficiency program. This is authenticated in customers' willingness to
Page 76 Demand-Side Management 201 0 Annual Report
Idaho Power Company Comrnercialllndustrial Sector-Custom Efficiency
participate in the Custom Efficiency program posting the customer's Success Stories on the Idaho Power
website. At the end of 2010, 14 additional Success Stories describing 2010 projects were posted on the
company's website. An example of a success story posted in 2010 refers to a project Roaring Springs
completed early in the year. Idaho Power provided Roaring Springs a $75,665 incentive for energy
efficiency upgrades that reduce Roaring Springs costs and is expected to save about $65,000 in electric
bills per year, according to the owner. The estimated total savings of the project was 822,825 kwh per
year. The owner said, "I can't thank these guys at Idaho Power enough. They really went above and
beyond." Copies of the 2010 Stlccess Stories are provided in Strmrnary 2: Evalztation.
2011 Strategies
In 201 1, Idaho Power plans to continue expanding the Custom Efficiency program through a number of
activities. These activities will include direct marketing of the Custom Efficiency program by
Idaho Power major customer representatives to inform the customers of the Idaho Power energy
efficiency programs available and ways the customer can reduce energy costs. In addition, Idaho Power
will continue to provide site visits and energy audits for project identification; technical training for
customers; funding for detailed energy audits for larger, complex projects; and delivery of
NEEA-sponsored energy improvement practices to customers.
Final reports from The Cadmus Group, Inc.'s, 2010 process evaluations were received in February 201 1.
All viable process recommendations will be considered and prioritized for implementation in 201 1.
Process changes implemented in 201 1 will be highlighted in the Demand-Side Managenlent 2011
Annual Report. The company plans on conducting an impact evaluation in 201 1.
Both the Custom Efficiency and Easy Upgrades programs offer lighting incentives to commercial and
industrial customers. Having lighting programs with different characteristics can cause confusion among
field staff, contractors, and customers. In 2011, Idaho Power will continue to make program changes to
lighting projects within both Custom Efficiency and Easy Upgrades. The objectives will he to develop a
single lighting calculator, standardize terms a~id conditions, and follow a similar project verification
protocol between programs. Better alignment of the incentives between the two programs will lessen
program confusion and potentially increase participant satisfaction.
Demand-Side Management 2010 Annual Report Page 77
CommercialllndustriaI Sector-Easy Upgrades Idaho Power Company
Easy Upgrades
2010 2009
Participation and Savings
Participants (projects) 1,535 1,224
Energy Savings (kwh) 35,824,463 35,171,627
Demand Reduction (MW) 7.8 6.1
Program Costs by Funding Source
ldaho Energy Efficiency Rider
Oregon Energy Efficiency Rider
Idaho Power Funds
Total Program Costs-Ail Sources $3,974,410 $3,325,505
Program Levelized Costs
Utility Levelized Cost ($/kwh)
Total Resource BenefitlCost Ratio $0.024 $0.032
Program Life BenefiVCost Ratios
Utility BenefitICost Ratio 7.93
Total Resource BenefitlCost Ratio 2.94
Program Characteristics
Program Jurisdiction IdaholOregon
Program Inception 2006
Description
The Easy Upgrades program encourages commercial and industrial customers in Idaho and Oregon to
implement energy efficiency retrofits by offering incentives up to $100,000 per-site, per-year.
Eligible measures cover a variety of energy-saving opportunities in lighting, HVAC, motors, building
shell, plug loads, and grocery refrigeration. Although Easy Upgrades is designed to be "easy"
for Idaho Power customers, it is one of the company's largest and most complex programs, containing
143 separate measures. A complete listing of the measures offered through the Easy Upgrades program
is included in Supplement I: Cost-Effectiveness,
Idaho Power commercial or industrial customers taking service under Rate Schedule 7 (Small General
Service), Rate Schedule 9 (Large General Service), Rate Schedule 19 (Large Power Service),
and special-contract customers are eligible. Potential participants first assess their energy-saving
opportunities by talking with their equipment supplier, contractor, or Idaho Power customer
representatives. For projects with expected incentive payments of more than $1,000, applicants must
submit a preliminary application prior to initiating the project. In that case, the customer or contractor
completes the preliminary application form and submits it with relevant worksheet(s) describing the
location and planned scope of their project. On Idaho Power's review and acceptance, the preliminary
application allows a customer to collect an incentive if the project is completed within 90 days.
For smaller projects with expected incentive payments of less than $1,000, customers may elect to skip
the preliminary application and just submit their final application for payment, These projects must have
been completed no more than six months prior to submitting their application for payment. Under the
Easy Upgrades program, incentive payments may be made to the customer's contractor; however,
the customer must specifically assign the payment to the contractor in the application process.
Page 78 Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector-Easy Upgrades
2010 Activities
To Idaho Power's trade allies, contractors, and customers who participated in Easy Upgrades,
2010 appeared to be a relatively normal year. From Idaho Power's perspective, 2010 was a year that
presented many challenges and opportunities. Challenges were created as the program continued to
experience strong growth in the number of projects being submitted. Opportunities were created when
Idaho Power expanded the responsibility of day-to-day program operations to multiple internal program
specialists. Having multiple program specialists involved benefited the program by streamlining
processes, enhancing employee development, leveraging staff experience, and creating more consistent
program management across Idaho Power's commercial and industrial energy efficiency programs.
To ensure projects met the terms and conditions of the program, more pfe-project and post-project
inspections were conducted by Idaho Power. In July, a new program specialist was selected to lead Easy
Upgrades. Idaho Power hired a contract employee to conduct pre- and post-project inspections. Due to
the increase in program participation, employee resources almost doubled from 2009.
As existing program specialists and energy efficiency engineers became involved in day-to-day
operations, process improvements such as streamlining application processing became an initial focus.
The incentive check letter mailed to customers on completed projects was automated, saving valuable
staff time. Additionally, data-entry processes were automated, making them more efficient and
improving accuracy.
In 2010, Idaho Power focused on data-gathering and analysis. In preparation for the 201 1
program-change rollout, Idaho Power contracted with Evergreen Consulting to advise Idaho Power on
lighting options within Easy Upgrades. Evergreen Consulting is a regionally and nationally recognized
energy efficiency consulting group that specializes in energy-efficient lighting program implementation.
This work included redesigning the lighting tool customers and trade allies use in calculating and
submitting incentives for lighting projects.
Idaho Power worked with the company's customer representatives and external trade allies to obtain
feedback on the 2010 program changes being considered for implementation in 201 1.
In addition to developing a new lighting tool, other changes to the program for 201 1 included updating
the program tesms and conditions, revising incentive levels on some measures, and adding new lighting
measure to encourage customers to install technologies that are more efficient.
Easy Upgrades conducted four workshops in December targeting to trade allies and large commercial
customers to review the 201 1 proposed program changes. These workshops were held across
Idaho Power's service area. Workshop topics included new program terms and conditions, application
processing, and a demonstration of the new lighting tool. In addition to program-specific material,
a 90-minute lighting technology training session was given. Trade allies appreciated receiving the
information in advance of the 201 1 program rollout. The lighting tool demonstration and the lighting
training were two highlights of the workshop. Trade allies provided feedback that they would like to see
more lighting training in classes.
Four Btcsiness-Specific Energy Savings Tips brochures were developed for grocery stores, health case
facilities, restaurants, and hotels. These tip sheets provide infomation and ideas on how to save energy,
sewing as a resource for specific businesses. Additionally, Idaho Power customer representatives use the
brochures when meeting with these businesses.
Demand-Side Management 2010 Annual Report Page 79
Commercialllndustrial Sector-Easy Upgrades Idaho Power Company
Presentations were made to various business and orofessional mouos. Idaho Power oarticioates in the
local Building Owners and Managers ~ssociation'Intemationai(~0~~) chapter. The as; Upgrades
program was promoted at other events, including sponsoring the 2010 Idaho Better Bricks awards
inithe 1daho-smart Growth awards.
Cost-Effectiveness
In 2010, Idaho Power did not make changes to the measures offered under the Easy Upgrades program.
For most of the measures, deemed savings and cost from the Nexant Demandside Manageinent
Potential Study (2009) were used for the cost-effectiveness analysis. For the balance of the measures,
engineering estimates were used to calculate expected savings results. In preparation for the program
modifications for 201 1, a cost-effectiveness review or analysis was conducted on all current measures.
For 201 1, several measures that were determined to be not cost-effective were either removed from the
program or modified, The Nexant Demand Side Management Potential Stzidy (2009) identified
six measures that may not be cost effective. These measures were the window shading, flat-panel liquid
crystal display (LCD), occupancy sensor controls for office equipment, high-efficiency coin-operated
washers without electric water, air-cooled multiplex systems, and evaporative-cooled multiplex systems.
After further internal review in consultation with the EEAG, these measures were removed from the
program's offerings for 2011. As for 2010, only three out of the six measures were used by the
customers and comprise 0.2 percent of the measures receiving incentives. The four lighting measures
determined not cost effective in 2009 as well as the other lighting measures were updated for 2011 with
the new lighting tool. Additionally, a new custom line item is now included within the lighting tool to
accept combinations not captured by the prescriptive approach. This new custom option allows the
customer to enter specific information, such as wattages of existing and proposed fixtures, hours of
operations, and costs for a proposed a lighting project. The determination of cost-effectiveness of these
measures is based on these entries.
For current detailed cost-effectiveness assumptions, see Supplement 1: Cost-Effecfivenass.
Customer Satisfaction and Evaluations
As part of the ongoing evaluation process, surveys were sent to 382 program participants in mid-
October, and 113 responded to the survey, resulting in a 30 percent response rate. The purpose of the
suivey was to collect customer feedback on the program and on the products they installed as well as the
contractor used for their project. Over 61 percent of the 113 survey respondents said they learned about
the program "from a contractor, supplier, or vendor." Another 17 percent of these customers indicated
they learned about the program "from an Idaho Power employee."
When asked a series of questions about their experience with Idaho Power and the Easy Upgrades
program, 60 percent "strongly agreed" that Idaho Power staff provided accurate and helpful information.
Sixty-six percent "strongly agreed" that Idaho Power staff was helpful; 53 percent "strongly agreed"
that the Easy Upgrades incentive application forms were easy to follow; and 63 percent "strongly
agreed" that their application was processed in a timely manner.
Ninety-one percent of the respondents indicated they are "very satisfied" with the energy efficiency
equipment they installed under the Easy Upgrades program.
Only 17 percent of the respondents indicated their project would not have changed at all if they had not
participated in the Easy Upgrades program. Of those who said their project would have changed if they
Page 80 Demand-Side Management 2010 Annual Report
Idaho Power Company CommercialllndustriaI Sector-Easy Upgrades
had not participated in the Easy Upgrades program, 40 percent said they would have "kept using
existing equipment," 27 percent would have "canceled the project altogether;" 21 percent said they
would have had to "postpone the project for more than 1 year;" and 16 percent said they would have
"repaired existing equipment." Sixty-six percent of the respondents said they could not have paid the full
cost of the project without the Easy Upgrades incentive. When asked a series of questions about what
influenced their decision about whether or not to do the project, 76 percent said the Easy Upgrades
incentive was "very influential;" and 54 percent said the amount of energy-savings potential was
"very influential."
Respondents were asked a series of questions about the contractor they used for the Easy Upgrades
project. The majority of respondents ranked their contractor "excellent" on quality of work,
courteousness and professionalism, knowledge of equipment and knowledge of the Easy Upgrades
program, completing work in a timely manner, and explaining efficiency aspects of new equipment.
Fifty-five percent said they used the contractor because they had "used them for other projects;"
and 86 percent said they "definitely would" recommend the contractor to a business associate.
Ninety percent of respondents said they were "very likely" to participate in the Easy Upgrades program
again and were "very likely" to recommend the Easy Upgrades program to a business associate.
Copies of these surveys and survey results can be found in Strpplernerit 2: Evaltration.
Results of the customer satisfaction survey were reviewed by the program specialist as part of the
process of identifying changes to the progranl for 201 1. The specialist wanted to know if there were any
issues with the program to address in the 201 1 program changes; there were none. The specialist
presented a few key survey results at Trade Ally Workshops held throughout the Idaho Power service
area early in December 2010. These results incIuded the following:
The important role the trade allies serve for promoting the Easy Upgrades program to
their customers
The significant function the Idaho Power incentive played in helping customers implement
their retrofit projects
The customers' needs for the contractors to provide more information on energy efficiency
measures and how to best use their energy efficiency equipment
The Easy Upgrades program specialist will continue to monitor customer satisfaction wit11 the program
throughout 201 1.
Idaho Power contracted with The Cadmus Group, Inc., to provide a process evaluation of the
Easy Upgrades program. This evaluation included a program data review, program logic model,
internal-customer survey evaluation, industry best practices comparison, conclusions,
and recon~mendations. The final report was received in February 201 1 and indicated that this program A -
had high appeal to Idaho Power customers and has grown rapidly. Recommendations for program
improvement included the need to conduct additional market research with program and trade ally
participants, update program marketing and outreach materials, and inlprove program data tracking and
QA efforts. Idaho Power is cu~~ently analyzing all recommendations. Program changes made in 201 1
will be highlighted in the Deniand-Side Managertietit 2011 ArititralRepot?. The complete report is
provided in Szrppletnerit 2: Evaltration.
Demand-Side Management 2010 Annual Report Page 81
CommercialllndustriaI Sector-Easy Upgrades Idaho Power Company
The company also contracted with The Cadmus Group, Inc., to conduct a Market Cliaracferizafion
Stlidy for this program. Among other things, this study includes a scenario that applies a comparison of
current and forecasted market penetration to the cost-effective potential estimated in the Dentand Side
Managet~ie~lt PofenfialSfzidy, A~11gz1sf 14, 2009 report by Nexant. The gap analysis indicates current
savings from the Easy Upgrades program are outpacing the forecasted achievable potential and this
program has significant potential for growth. The study also predicts this gap to narrow in 2014 and
recommends more aggressive marketing activities may be required in the future. The complete report is
provided in Stipplenienf 2: Eval~iation.
2011 Strategies
Several program changes will be implemented in 201 1. Program participants will be required to sign a
MOU to be eligible to participate in Easy Upgrades. The MOU addresses the tel-ms and conditions
participants are required to follow. More detailed project information will be required on applications.
The additional information will assist in verifying the scope of each project.
Measure changes for 201 1 will include the following.
Lighting
Several administrative and program requirements for lighting projects will be implemented in 201 1.
Changes will include a new lighting tool. Submission of the new lighting tool will be required for
project applications. Manufacturer cut-sheets on equipment being installed will also be required at the
time new projects are submitted. A "custom" option for non-standard lighting applications will be
included in the lighting tool. For example, cost-effective outdoor lighting measures will be eligible for
program incentives under the new non-standard option. Based on cost-effective analysis, several
incentive levels will be modified. Additionally, more pre- and post-installation site verifications will be
perfomled. The program will develop a detailed inspection process for lighting projects.
Building Shell
Premium windows are redefined as those with a Solar Heat Gain Coefficient of 0.30 or less and a
U-factor of 0.30 or less. Window-shade film was removed based on cost-effective analysis. Insulated
and high-speed automatic door measures were removed from Easy Upgrades and moved to the
Custom Efficiency program.
Grocery Refrigeration
The incentives for anti-sweat heat controls, Electronically Commutated Motor (ECM) case fan motors,
and LED display case lighting were increased. Air-cooled multiplex and evaporative-cooled multiplex
systems were removed based on cost-effective analysis.
Plug Load
Flat panel LCD displays, office equipment occupancy sensors, and coin-operated washing machines
(without electric hot water) were removed based on cost-effective analysis.
Final reports from The Cadmus Group, Inc.'~, 2010 process evaluations were received in Febluary,
2011. All viable process recommendations will be considered and prioritized for implementation in
201 1. Process changes implemented in 201 1 will be highlighted in the De~~tand-Side Managenlenf 2011
A~irtrinl Repol?.
Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector-Easy Upgrades
Plans include the provision of educational topics at trade ally workshops. Topics will be focus on
maximizing energy-savings opportunities and increasing customer satisfaction.
Effective July 14,2012, there will be new Standards for General Sewice Fluorescent Lamps.
Idaho Power is aware of these new require~nents and will work with regional market players to develop
strategies in deciding what changes to make for the lighting measures and respective incentives for the
2012 Easy Upgrades program.
Demand-Side Management 2010 Annual Report Page 83
CommercialllndustriaI Sector-FlexPeak Management Idaho Power Company
FlexPeak Management
Participation and Savings
Participants (sites)
Energy Savings (kwh)
Demand Reduction (MW)
60 33
nla nla
47.5 19.3
Program Costs by Funding Source
ldaho Energy Efficiency Rider
Oregon Energy Efficiency Rider
ldaho Power Funds
Total Program Costs-All Sources $1,902,680 $528,681
Program Levelized Costs
Utility Levelized Cost ($/kwh)
Total Resource BenefiVCost Ratio
Program Life BenefitlCost Ratios
Utility BenefiVCost Ratio
nla nla
nla nla
1.14
Total Resource BenefitICost Ratio 1.14
Program Characteristics
Program Jurisdiction Idaho/Oregon
Program Inception 2009
Description
FlexPeak Management is a voluntary demand response program targeting Idaho Power's industrial and
large commercial customers that are capable of reducing their electrical energy loads for short periods
during summer peak days. The program became available to the company's Idaho customers in
May 2009 and to the company's Oregon customers in May 2010. The program objective is to reduce
the demand on Idaho Power's system during peak times through customers' voluntary electrical use
reduction. The program is active June 1 to August 31, between the hours of 2:00 p.m. and 8:OO p.m.
on non-holiday weekdays. Customers receive notification of a demand reduction event two hours prior
to the start of the event, and events last between two and four hours.
In November 2008, EnerNOC, Inc., was selected through a competitive RFP process to implement the
program. Idaho Power entered into a five-year contract with EnerNOC in February 2009. In May 2009,
the IPUC approved the contract in Order No. 30805.
EnerNOC is responsible for developing and implementing all marketing plans, securing all participants,
installing and maintaining all equipment behind Idaho Power's meter used to reduce demand, tracking
participation, and reporting results to Idaho Power. Idaho Power initiates demand response events by
notifying EnerNOC, who then supplies the requested load reduction to the Idaho Power system.
EnerNOC meets with prospective customers to identify their potential to reduce electrical energy load
during active program hours without negative impact to their business operations. Customels initially
enroll in the program by entering into a contract with EnerNOC. EnerNOC then installs
energy-monitoring equipment at the customer site, simulates a demand response event to ensure
customer satisfaction and performance, and officially enrolls the facility in the program.
Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector-FlexPeak Management
Each week, EnerNOC commits a demand reduction level in MW to Idaho Power that EnerNOC is
obligated to meet in a demand reduction event. EnerNOC is subject to financial penalties for failing to
reach the committed MW reduction.
When Idaho Power anticipates the need for capacity, it notifies EnerNOC of the date and time of the
event. Idaho Power has access to near real-time energy-usage data and can continuously monitor the
success of the demand reduction event in aggregate. Customers can also continuously monitor their
demand reduction performance using their individual, near real-time energy-usage data.
2010 Activities
On February 26,2010, as part of Case No. IPC-E-09-02, the company filed with the IPUC a FIexPeak
Managet~ietit 2009 Prelitninary Report dated February 24,2010, in accordance with the request in IPUC
Order No. 30805 for a preliminary evaluation of the program prior to making a request for prudency of
program expenditures. A copy of this report is included in Szpplemenf 2: Evaluation.
Also on February 26,2010, as part of the same case IPC-E-09-02, the company filed a petition
requesting the IPUC approve an amendment to the agreement between Idaho Power and EnerNOC.
The contract changes accomplished clarification of language regarding accrual of energy payments,
adjustment of language regarding baseline calculations, correction of an error in EnerNOC penalty
calculations, and addition of a non-solicitation clause.
On June 2,2010, under Order No. 31098, the IPUC granted the company's Petition for Approval of the
Amendment to the Agreement in June 2010.
In March 2010, the company filed an application with the OPUC to approve the FlexPeak Management
program in its Oregon service area to be made available to Idaho Power Oregon customers. The OPUC
opened docket UM 1473 to evaluate the application, which was approved on June 2,2010,
in Order No. 10-206.
The first week of the program, EnerNOC committed to provide a reduction of 29.96 MW. This weekly
commitment, or "nomination," was comprised of 49 facility sites, of which 30 participated in the
program in 2009 and 19 added in 2010. The reduction at the end of the season was 30.80 MW,
comprised of 64 facility sites. The commitment peaked in July at 34.2 MW.
Idaho Power called four demand response events for the FlexPeak Management program. In each case,
EnerNOC successfully exceeded the committed MW reduction. One event occurred in June, two in July,
and one in August. The highest hourly reduction achieved was in July, at 47.5 MW, which exceeded the
target reduction for the summer of 2010 of 30 MW.
Cost-Effectiveness
Although the BIC analysis for the FlexPeak Management program is based on a 10-year model, the
company also tracks cost-effectiveness on an annual basis. Both calculations use financial assumptions
and DSM alternative costs from the 2009 IRP. As published in the 2009 IRP, for peaking alternatives,
such as demand response programs, a 170-MW SCCT is used as the alternative resource in Idaho
Power's cost-effectiveness analysis. This analysis is updated annually with actual benefits and costs.
For the FlexPeak Management program, the benefits are based on measured demand reduction at the
participants' meter. The costs include the fees paid to EnerNOC and Idaho Power administration for the
program. The 2010 cost-effective analysis demonstrated the FlexPeak program has a TRC ratio of 1.14
Demand-Side Management 2010 Annual Report Page 85
I Commercialllndustrial Sector-FlexPeak Management Idaho Power Company
from a long-term perspective and a TRC ratio of 1.33 for 2010. Szcpple~?tent 1: Cost-Effectiveness
contains details on the cost-effectiveness assumptions and data.
Customer Satisfaction and Evaluations
In early 2010, EnerNOC sent an Annual Customer Survey to 27 of the 2009 participants via e-mail.
Nine participants responded for a 33 percent response rate. On a scale of 1 to 10, 10 being
"very satisfied," the average level of satisfaction with EnerNOC's communication with the participants
was 7.1, the average level of satisfaction with how EnerNOC managed the demand response events was
8.3, the average level of satisfaction with the installation and maintenance of equipment installed at
participants' facilities was 8.1, and the average level of overall satisfaction with EnerNOC was 7.7. On a
scale of 1 to 10, 10 being "extremely likely," when asked how likely they would be to recommend
EnerNOC to a colleague or business partner, the average result was 8.0. Of the nine responses,
three reported no difference in their opinion of Idaho Power based on their participation in the program,
five reported an improved opinion of Idaho Power, and one gave no response.
EnerNOC sent a post-event survey via e-mail after the first event in June 2010 to 125 participants at
53 sites representing all the sites enrolled in the event. Ten participants responded for an 8 percent
response rate. Results were positive. When asked how prepared they felt for the demand response event,
on a scale of 1 to 10,lO being "fully prepared," the average response was 9.1. When asked how likely
they were to recommend EnerNOC to a peer or business partner, on a scale of 1 to 10,lO being
"definitely will," the average response was 9.1. When asked how clear the initial notification they
received from EnerNOC was on the day of the event, on a scale of 1 to 10, 10 being "very clear,"
the average response was 9.9. When asked how satisfied they were with how EnerNOC managed the
demand response event, on a scale of 1 to 10, 10 being "very satisfied," the average response was 9.2.
When asked about their overall satisfaction with EnerNOC, on a scale of 1 to 10, 10 being
"very satisfied," the average response was 8.9.
Copies of these surveys and survey results can be found in Supplement 2: Evaluation,
2011 Strategies
EnerNOC plans to conduct a post-season customer satisfaction survey for the 2010 season first quarter
201 1. The results will be made available to Idaho Power. Idaho Power will continue to evaluate the best
use of the program to meet the program objectives, maximize the benefit to Idaho Power's system, and
refine internal criteria to call demand reduction events.
Page 86 Demand-Side Management 201 0 Annual Report
Idaho Power Company Commercialllndustrial Sector-Holiday Lighting Program
Holiday Lighting Program
2010 2009
Participation and Savings
Participants (projects) 25 32
Energy Savings (kwh) 248,865 142,109
Demand Reduction (MW) nla nla
Program Costs by Funding Source
Idaho Energy Efficiency Rider $45,816 $33,673
Oregon Energy Efficiency Rider $316 $257
Idaho Power Funds $0 50
Total Program Costs-All Sources $46,132 $33,930
Program Levellzed Costs
Utility Levelized Cost ($/kwh) $0.024 $0.031
Total Resource BenefitlCost Ratio $0.034 $0.066
Program Life BenefiffCost Ratios
Utility BenefitlCost Ratio 3.63
Total Resource BenefitlCost Ratio 1.87
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2008
Description
The Holiday Lighting program offers incentives to commercial customers to replace incandescent
lighting with more efficient LED holiday lighting. Customers turn in their strings of holiday lights for
recycling at various Pacific Recycling locations and receive a receipt verifying the type and count of
lights. The customer initiates the incentive process by submitting an application to Idaho Power, along
with their recycling receipt and new bulb purchase receipt.
2010 Activities
A 2010 analysis of the program identified that an increasing ratio of mini-incandescent lights to C7 and
C9 lights being turned in for recycling was having a significant impact on program cost-effectiveness.
Additionally, several market observations weie taken into account. Feedback from participants indicated
a preference for LED$ in the future because of the durability and reduced hazard provided by LED
technology. The increased availability of LED lighting in wholesale and retail stores, and use of the
technology in the marketplace led to the acceptance of the LED technology. These factors combined to
indicate that LED usage for holiday displays was becoming the standard choice in the market. Based on
those factors, two program decisions were made: 1) beginning in mid-2010, incentives for
mini-incandescent lights were not offered; and 2) customers were notified that 2010 would be the last
year Idaho Power would offer the program. A bill stuffer went out in October 2010 notifying
commercial customers of these program changes.
In 2010, there were 25 participants in the Holiday Lighting program with a total savings of
248,865 kWWyear. This is approximately half the energy savings achieved in 2009.
Demand-Side Management 2010 Annual Report Page 87
CommercialllndustriaI Sector-Holiday Lighting Program Idaho Power Company
The largest program participant was the Idaho Botanical Garden, with an estimated annual savings of
46,899 kwh. Their Winter Garden Aglow holiday display recycled over 23,000 incandescent lights,
and replaced them with approximately 10,000 LED lights. It is estimated that over 36,500 visitors
attended this event.
Although the incentive was available only to commercial customers, the program was useful as a means
of introducing Idaho Power customers to the advantages of LED technology and helped make LED
lighting the preferred choice when it comes to replacing existing holiday lighting. LED lighting has now
become readily available at most stores supplying holiday lighting to both commercial and residential
markets.
As LED technology developed, LED replacement bulbs became available. When the Holiday Lighting
program originally launched, LED light strings did not have replaceable bulbs. LED replacement bulhs
for use in existing C7 and C9 strings were also not widely available at the time of program startup.
In the past two years, increasing number of customers wanted to turn in bulhs yet keep their strings of
sockets. Idaho Power staff was involved in counting and picking up these bulbs for disposal.
This logistical step would have become an increasing concern had the program continued.
Cost-Effectiveness
In the original program design, savings estimates were computed for both commercial grade LED C7/C9
and mini-LED bulbs. Based on a review of manufacturing specifications of the LED C7lC9 bulbs, it was
calculated they use 5 W less per bulb over a comparable incandescent C7lC9 bulb. LED mini bulbs were
calculated to have 0.41 W of reduction per bulb. With an assumed 12 hours of use daily, seasonal
savings per bulb were estimated to be 2.9 kwh for C7JC9 bulbs and 0.24 kwh for mini LEDs.
As past of the 2009 cost-effective analysis conducted in 2010, mini LEDs were found not cost-effective
and were discontinued from the program midway through 2010 before the holiday season. The cost of
mini LEDs decreased, and the availability of commercial-grade, non-LED mini bulbs declined,
indicating a transformed market. This commercial trend or market transformation of mini-LED bulbs
was mirrored by the emergence of residential programs through large retailers that provided discounts to
customers purchasing LED bulhs and recycling incandescent similar to Holiday Lighting. The Holiday
Lighting program was discontinued after the 2010 holiday season. Cost-effective model assumptions
and analysis are included in Supplement I: Cosf-ESfectiveness.
Customer Satisfaction and Evaluations
Overall, customers conveyed their appreciation for the program. Some customers were disappointed that
incentives on the mini-incandescent were no longer offered. Customers were informed that a major goal
of the program was to achieve market transformation in holiday lighting and with so many displays now
being supported by LEDs, it was clear that LEDs have become a viable and acceptable option.
2011 Strategies
The Holiday Lighting incentive will no longer he offered. However, information regarding the use of
LED technology for holiday displays will be provided on customers' request.
Demand-Side Management 2010 Annual Report
Idaho Power Company Commercialllndustrial Sector-Oregon Commercial Audits
Oregon Commercial Audits
2010 2009
Participation and Savings
Participants (audits) 22 41
Energy Savings (kwh) nla nla
Demand Reduction (MW) nla
Program Costs by Funding Source
nla
ldaho Energy Efficiency Rider
Oregon Energy Efficiency Rider
ldaho Power Funds
Total Program Costs-All Sources $5,049 $20,732
Program Levelized Costs
Utility Levelized Cost ($/kwh) nla nla
Total Resource BenefiffCost Ratio nla nla
Program Life BenefitlCost Ratios
Utility BenefiVCost Ratio nla
Total Resource BenefiVCost Ratio nla
Program Characteristics
Program Jurisdiction Oregon
Program Inception 1983
Description
The Oregon Commercial Audits program identifies opportunities for commercial building owners to
achieve energy savings. This is a statutory program offered under Oregon Rate Schedule No. 82.
Through this program, free energy audits provide evaluations and educational services to customers.
Annual mailings to each customer in the commercial sector communicate program benefits
and offerings.
2010 Activities
Idaho Power sent out its annual mailing to approximately 3,400 Oregon commercial customers in
October 2010. Customers were notified of the availability of no-cost energy audits and provided the
Idaho Power publication Saving Energy Dollars. Twenty-two customers requested an audit, with
15 audits con~pleted by Idaho Power and seven completed by a third-party contractor.
EnerTech Services, the third-party energy auditing contractor, delivered Idaho Power energy efficiency
program information to customers during the audits they conducted. During the delivery of information,
EnerTech Services discussed maintenance and efficiency opportunities that may be available to meet
customer needs.
Cost-Effectiveness
As previously stated, the Oregon Commercial Audits program is a statutory program offered under
Oregon Rate Schedule No. 82. Since the required parameters of the Commercial Energy Audit Program
Demand-Side Management 2010 Annual Report Page 89
Commercialllndustrial Sector-Oregon Commercial Audits Idaho Power Company
are specified in Schedule No. 82, and the company abides by these specifications, this program is
deemed to be cost effective. Idaho Power claims no energy savings from this program.
Customer Satisfaction and Evaluations
An excellent example of the value of an audit is the identification of actual savings opportunities and
incentives in the customer's facility. This was demonstrated during a restaurant audit completed in 2010.
This example descnies customer engagement in energy efficiency opportunities.
During the walk-through evaluation, the customer representative and the customer discussed potential
lighting conversions, refrigeration positioning and temperature control, and window-glazing options.
If the customer followed through on the lighting suggestions by upgrading from T-12 lamps with
magnetic ballasts to T-8 lamps with electronic ballasts, the conversion would save approximately
30 percent of the energy used for lighting.
After the audit, the customer verbally indicated to the customer representative satisfaction with the
discussion regarding potential energy efficiency opportunities at the site. A follow-up call revealed that
the customer was interested in using the Idaho Power energy efficiency programs and conducting a
lighting retrofit. Program requirements and contact infoimation was provided.
2011 Strategies
In 201 1, Idaho Power's audit contractor will continue to introduce participants to energy efficiency
through lighting and HVAC system maintenance by suggesting customers seek alternatives that are
more efficient as they support and replace their existing equipment. EnerTech Services will continue to
help customers identify projects that save energy and help meet the customers' other needs, such as
improving space comfort. The audit process will continue to be used as a way to introduce customers to
available Idaho Power incentive programs.
Page 90 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector
IRRIGATION SECTOR OVERVIEW
Description
The irrigation sector is composed of agricultural customers operating water pumping or water delivery
systems to irrigate agricultural crops or pasturage. The end-use equipment primarily consists of
agricultural irrigation pumps and center pivots. This customer group does not include water pumping for
non-agricultural purposes, such as irrigation of lawns, parks, cemeteries, golf courses, or domestic
water supply.
In December 2010, the active and inactive irrigation service locations totaled 18,547 system-wide.
This is a reduction of 1.4 percent compared to 2009, due to removal of some irrigation meters that were
not used for multiple years. Irrigation customers accounted for 1,706,632 MWh of energy usage in 2010,
which was up from 2009 by over 3 percent. This sector represented about 13 percent of Idaho Power's
total electricity usage and about 23 percent of peak demand. Energy usage for this sector has not grown
significantly in many years; however, there is substantial yearly variation in demand due primarily to the
impact of weather on irrigation needs.
Idaho Power currently offers two programs to the irrigation sector: 1) kigation Peak Rewards,
a demand response program designed to decrease peak demand; and 2) Irrigation Efficiency Rewaids,
an energy efficiency program designed to encourage replacement or improvement of inefficient systems
and components. Idaho Power also pays incentives to customers participating in the Green Rewind,
which is a measure that ensures the motor's original efficiency is maintained if it is rewound at an
approved service center. Table 9 summarizes the overall expenses and program performance for both the
energy efficiency and demand response programs provided to irrigation customers.
The Irrigation Peak Rewards program was able to reduce peak summer demands by almost 250 MW
during the program's peak performance event during the summer of 2010, an increase of 90 MW over
last summer's program performance. More than 500 additional service point locations were enrolled for
the 2010 season.
Irrigation Efficiency Rewards program, which has been in operation since 2003, saw its annual savings
drop by 2,189,189 kwh to 10,968,430 kwh of annual savings as compared to 2009 reported savings.
The reduction in savings in 2010 was primarily the result of fewer menu projects being submitted in
2010. Generally, there seem to be fewer irrigation systems that need to replace or repair the 11 menu
items offered as a result of the program being available or the past four years. In addition, a few
applications were not approved in 2010 due to the new rule adopted in 2010 requiring measures to have
been installed within a year.
Demand-Side Management 2010 Annual Report Page 91
Irrigation Sector Idaho Power Company
Programs
Table 9. 2010 lrrigation program summary
Total Costs Savings
Peak
Annual Demand
Program Participants Utility Resource Energy (kwh) (MW)
Demand Response
Irrigation Peak Rewards ..................... 2,038 setvice points $13,330,626 $13,330,626 n/a 249.7
Total ............................................................................................... $13,330,826 $13,330,826 nla 249.7
Energy Efficiency
Irrigation Efficiency Rewards .............. 753 projects $2,200,814 $6,968,598 10,968,430'
Total ................ .. ............................................................................. $2,200,814 $6.@68,598 10,968,430 3.3
S e e Appendix 3 for notes on methods and column definitions.
Each year, the company conducts a customer relationship survey. Overall, SO percent of Idaho Power
irrigation customer surveyed in 2010 for the Burke Customer Relationship survey indicated Idaho Power
was meeting or exceeding their needs in offering energy efficiency programs. Fifty-eight percent of
survey respondents indicated Idaho Power is meeting or exceeding their needs with information on how
to save energy or reduce their bill. Fifty-six percent of respondents indicated Idaho Power is meeting or
exceeding their needs with encouraging energy efficiency with its customers. Overall, 36 percent of the
irrigation survey respondents indicated they have participated in at least one Idaho Power energy
efficiency program. Of irrigation survey respondents who have participated in at least one Idaho Power
energy efficiency program, 92 percent are "very" or "somewhat" satisfied with the program.
Page 92 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector-Irrigation Efficiency Rewards
lrrigation Efficiency Rewards
2010 2009
Participation and Savings
Participants (projects) 753= 887
Energy Savings (kwh) 10,936,463 13,157,619
Demand Reduction (MW) 3.3 3.4
Program Costs by Funding Source
Idaho Energy Efficiency Rider $2,059,676 $2,112,391
Oregon Energy Efficiency Rider $1 10,034 $152,134
Idaho Power Funds $31,104 $29,371
Total Program Costs-All Sources $2,200,814 $2,293,896
Program Levelized Costs
Utility Levelized Cost ($/kwh) $0.030 $0.026
Total Resource BenefiVCost Ratio $0.096 $0.077
Program Life BenefitICost Ratios
Utility BenefitICost Ratio 5.22
Total Resource BenefiVCost Ratio 1.61
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2003
a Does not include Green Motor Rewinds
The Irrigation Efficiency Rewards program encourages energy efficient equipment use and design in
irrigation systems. Qualified irrigators in Idaho Power's Idaho and Oregon service area can receive
financial incentives and reduce their electricity usage. Incentives for the h~igation Efficiency Rewards
program help the customer recover a portion of the costs of installation of a new, more efficient
irrigation system and energy efficient improvements to an existing irrigation system.
Two separate options help meet the needs for major or minor changes on new or existing systems.
The Custom Incentive Option addresses extensive retrofits of existing systems or new irrigation systems,
providing component upgrades and large-scale improvements. For new systems, the incentive is 25
cents per first year kwh saved above standard installation methods, not to exceed 10 percent of total
project cost. For existing system upgrades, the incentive is 25 cents per first year kwh saved or $450 per
kW demand reduction, whichever is greater, but not to exceed 75 percent of the total project cost.
The qualifying energy efficiency measures include any hardware changes that result in a reduction of the
pumping hp requirement or hours of operation.
Idaho Power reviews, analyzes, and makes recommendations on each application. On each completed
project, before fmal payment, all project information is reviewed. Prior usage history, actual invoices,
and, in most situations, post-usage demand data, is available to verify savings and incentives.
The Menu Incentive Option covers a significant portion of the costs of repairing and replacing specific
components that help the irrigation systemuse less energy. This option is designed for systems in which
Demand-Side Management 2010 Annual Report Page 93
Irrigation Sector-Irrigation Efficiency Rewards Idaho Power Company
small maintenance upgrades provide energy savings from 11 separate measures. These measures include
the following:
New flow control nozzles
Replacement of worn brass or plastic nozzles
Rebuilt or new impact sprinklers
Rebuilt or new wheel line levelers
New low-pressure or rotating type sprinklers
New low-pressure regulators
New drains, riser caps, and gaskets
New wheel line hubs
New pivot gooseneck and drop tube
Leaky pipe repair
New center pivot base boot gasket
Payments are calculated on predetermined average kwh savings per component. Idaho Power reviews
and analyzes each proposal for a system or component modification, determining and verifying the
energy savings.
The Green Rewind program enables customers to maintain the motor's original efficiency and ensures
an efficient use of electricity to run the motor. Motor sellrice centers are paid $2.00 per hp for each
NEMA Standard hp-rated motor between 15 and 5,000 hp that receives a verified Green Rewind.
The RTF originally approved the Green Motors Practices rewinding as an energy efficiency measure and
approved a table of deemed savings in July 2007 for industrial applications. In July 2009, the RTF
reviewed and approved savings for motor rewinds for industrial and agricultural applications. The new
savings were posted in 2010.
In addition to incentives, the program offers customer education, training, and irrigation-system
assessments. Idaho Power agricultural representatives svonsor, coordinate, conduct, and vresent -
educational workshops for irrigation customers, providing expert information and training across
Idaho Power's sellrice area. Energy audits, conducted by Idaho Power agricultural representatives,
evaluate prospective customers' potential savings. ~~ricultural representatives from idaho Power also
engage agricultural irrigation equipment dealers in training sessions, increasing awareness of the
program and promoting it through the irrigation equipment distribution channels. Marketing efforts
include direct mailings, advertisements in agricultural publications, and participation in agricultural
workshops and conferences. Idaho Power's agricultural representatives are funded approximately
30 percent by the Riders and 70 percent from base rates.
Page 94 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector-Irrigation Efficiency Rewards
2010 Activities
There were no major changes made to the basic structure of the program during 2010. However,
a modification regarding the time frame in which irrigation components are eligible for an incentive was
made for all menu payments effective January 4,2010, with approval from the OPUC. Going folward
from Janualy 4,2010, the new eligibility states that customer invoices must be provided to the company
no later than one year after the purchase date of the equipment.
Idaho Power agricultural representatives, program specialist, and agricultural engineer participated in
training that maintains their Certified Irrigation Designer (CID) and Certified Agricultural Irrigation
Specialist (CAIS) certifications. This training allows Idaho Power to maintain its high level of expertise
in the irrigation industry and is sponsored by the Irrigation Association.
Idaho Power continued to market the program by varying the location of workshops and offering new
presentations to irrigation customers. In 2010, Idaho Power provided six workshops promoting the
Irrigation Efficiency Reward program throughout the service area. Approximately 180 customers
attended workshops in Blackfoot, Aberdeen, Burley, Twin Falls, Grand View, and Nampa. Idaho Power
also accepted invitations to present the program at four workshops sponsored by agricultural groups in
Fairfield, Shoshone, Nampa, and Jackpot, Nevada. Exhibitor booths were displayed at regional
agricultural trade shows, including the Eastern and Western Idaho Agriculture Expos, the Agri Action
Ag show, the Idaho Ag Summit, and the Idaho Irrigation Equipment Association show and conference.
Of the 753 irrigation efficiency projects completed in 2010, the 610 associated with the Menu Incentive
Option provided 5,219 MWh of energy savings and 1.02 MW of demand reduction. The Custom
Incentive Option had 143 projects, of which 68 were new irrigation systems and 75 were on existing
systems. This option provided 5,561 MWh of energy savings and 2.23 MW of demand reduction for the
year. Also during 2010, inigation customers contributed 187,965 kwh of energy savings from 36
motors participating in the Green Motor Rewind measure.
In 2010, Idaho Power reviewed the cost-effectiveness of continuing the Green Motor Rewind initiative
for both industrial and agricultural motors. Based on the new RTF-approved energy savings, it was
detelmined that some of the smaller motors did not pass the PCT. For 201 1, rewinds on motors less than
25 hp have been removed from the initiative.
Cost-Effectiveness
Each application under the Custom Incentive Option received by Idaho Power undergoes an assessment
to estimate the energy savings that will be achieved through a customers' participation in the program.
To estimate the effectiveness of a project, Idaho Power uses a service point's previous five years of
electricity usage histo~y and, based on the specific equipment to be installed, calculates the estimated
post-installation energy consumption of the system. The company also verifies the completion of the
system design through aerial photographs, maps, and field visits by Idaho Power agricultural
representatives to ensure the irrigation system is used in the manner the documentation describes.
Each application under the Menu Incentive Option received by Idaho Power also undergoes an
assessment to ensure savings are achieved. Payments are calculated on predetermined average kwh
savings per measure. In some cases, the energy savings estimated in the Menu Incentive Option are
adjusted downward to reflect how the components are actually being used.
Demand-Side Management 2010 Annual Report Page 95
Irrigation Sector-Irrigation Efficiency Rewards Idaho Power Company
In 2010, RTF provisionally deemed updated savings and cost assumptions for several irrigation
hardware measures. Idaho Power reviewed the savings and costs for measures identified for the western
Idaho region. Several RTF measures were either averaged or combined to align with Idaho Power's
program offering. Some measures annual gross energy savings increased and improved the measure's
cost-effectiveness. For instance, the hub replacement measure was identified as not cost-effective in the
2009 Supplernenf I: Cost-Effectiveness. RTF increased savings from 40 kWhJyear, to 69 kWh1year
which improved the measure's TRC from 0.71 to 1.14.
Nearly all the measures remained cost effective, despite the changes made to the measure savings and
cost assumption. However, the rebuilt and new wheel line levelers appeared to not be cost effective
using the new savings assumptions. The RTF reduced savings from 20 kwh per year to 2 kwh per year.
This significant decrease in savings contributed to the TRC dropping from 1.34 in 2009 to 0.27 in 2010.
One factor contributing to the measure's non-cost-effectiveness is the participant cost. RTF assumes the
cost to be $3.25 per unit. However, according to invoices received by Idaho Power through the program,
leveler rebuilding kits cost less than $1.00 while new levelers cost about $12.00. A majority of the
levelers that are eligible for incentives through the program are for the rebuilt levelers; however, the cost
of the new levelers is driving up the average participant cost. Idaho Power is currently reviewing this
measure to determine if the measure is, in fact, cost-effective, or if it will be removed from the menu
offerings. A decision will be made by the summer of 201 1 when Idaho Power reviews other changes to
the program.
For details on the cost-effectiveness assumptions for the Menu Incentive Option, see Supplement I:
Cost-Effec fiveness.
Customer Satisfaction and Evaluations
On January 5,2010 an RTF subcommittee, composed of the Energy Trust of Oregon (ETO), the RTF,
Rocky Mountain Power, and Idaho Power, presented a methodology for calculating the deemed
irrigation hardware measures. The methodology was approved by the RTF. The RTF included a
suggestion that utilities should make appropriate adjustments to the inputs for calculating energy savings
for unique service area characteristics. The RTF's decision stated that the deemed irrigation measures
should be reviewed in 13 months. At the RTF meeting on Janua~y 5,2010, Rocky Mountain Power
announced they were conducting an evaluation of savings from its irrigation hardware program and that
information will be available from the Idaho market. Idaho Power is waiting for the results of this
evaluation before designing additional evaluation. Idaho Power is considering partnering with an Idaho
university to further evaluate and test irrigation equipment that will aid in determining individual
measure savings.
In 2010, Idaho Power contracted with The Cadmus Group, Inc., to provide a process evaluation of the
Irrigation Efficiency Rewards program. This evaluation included a program data review, program logic
model, internal customer survey evaluation, industry best practices comparison, conclusions,
and recommendations. The final report was received in February 201 1 and noted that this is "a robust,
ambitious, and leading-edge irrigation program," and that the program has "strong relationships with
customers and trade allies, credibility, and high demand." Recommendations for program improvement
included the need to conduct additional surveys to provide on-going data regarding program satisfaction,
operation, and market trends. It was also recommended that Idaho Power consider expanding outreach
and assistance efforts to capitalize on the technical strength of a "well-trained" Idaho Power program
staff. Idaho Power is currently analyzing all recommendations. Any program changes made in 201 1 will
be highlighted in the Demand-Side Management 2011 Annual Report. The complete report is provided
in S~cpplemen f 2: Evaluation.
Page 96 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector-Irrigation Efficiency Rewards
2011 Strategies
Marketing plans for 201 1 include conducting three to five customer-based irrigation workshops and
three to five training sessions for irrigation dealers and manufacturers. These workshops and training
sessions enable discussions between Idaho Power representatives, the company's customers,
and irrigation dealers, while continually educating them about the program and ways to participate.
Each year, workshops are conducted in different local areas. Subjects and presentations are updated to
offer new ideas.
Idaho Power is also reviewing the program with input &om customers regarding other energy-saving
measures that can be offered in the Menu Incentive Option. It is also planned to further review
information provided by the RTF and other research to make improvements to the program.
Final reports from The Cadmus Group's, Inc., 2010 process evaluations were received in February 201 1.
All viable process recommendations will be considered and prioritized for implementation in 201 1.
Process changes implemented in 201 1 will be highlighted in the Demand-Side Manage~ilent 2011
Annual Report
Demand-Side Management 2010 Annual Report Page 97
Irrigation Sector-Irrigation Peak Rewards Idaho Power Company
Irrigation Peak Rewards
Participation and Savings
Participants (sewice points)
Energy Savings (kwh)
2,038 1,512
nla nla
Demand Reduction (MW) 249.7 160
Program Costs by Funding Source
Idaho Energy Efficiency Rider $13,096,946 $9,131,929
Oregon Energy Efficiency Rider $184,075 $451,673
Idaho Power Funds $49,805 $71,681
Total Program Costs-All Sources $13,330,826 $9,655,283
Program Leveiized Costs
Utility Levelized Cost ($/kwh) nla nla
Total Resource BenefiUCost Ratio nla nla
Program Life BenefiVCost Ratios
Utility BenefiUCost Ratio 1.43
Total Resource BenefiUCost Ratio 1.37
Program Characteristics
Program Jurisdiction IdahoIOregon
Program Inception 2004
Description
Idaho Power's Irrigation Peak Rewards program is a voluntary program available to all Idaho and
Oregon agricultural irrigation customers. The purpose of the program is to produce a decrease in the
company's system summer peak by turning off specified irrigation pumps with the use of one or more
load control devices during the program season June 15 through August 15.
Idaho Power has operated its Irrigation Peak Rewards program since starting with a pilot program in
2004. Since that time, Idaho Power has made changes to the programmany times with the largest
change being the dispatch option that was added before the 2009 irrigation season.
In 2010, the program was active from June 15 to August 15. All Idaho Power irrigation customers taking
service undes Schedule 24 in both Idaho and Oregon were eligible and participants chose between
three options: 1) the Electric Timer Option, 2) an Automatic Dispatch Option that allows Idaho Power to
remotely turn participants' pumps off, or 3) a Manual Dispatch Option designed for large service
locations with 1,000 hp or greater that allows participating customers, after being notified by
Idaho Power, to choose which pumps to manually turn off during summer peak hours.
Participants in the Electronic Timer Option can choose to have all isrigation pumps on a singIe, metered
service point turned off one, two, or three times per week. Intemptions occur from 4:00 p.m. to
8:00 p.m., and Idaho Power determines the specific weekday or weekdays to schedule the intemption of
all pumps at each service point. Installation fees between $250 and $500 are applied to participating
service locations less than 75 hp.
Page 98 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector-Irrigation Peak Rewards
For customers participating in the dispatch options, load control events could occur up to four hours per
day, up to 15 hours per week, but no more than 60 hours per season. For 2010, dispatchable load control
events could happen between 1:00 p.m. and 8:00 p.m. on weekdays and Saturday. A control device
attached to the customer's individual pump electrical panels allows Idaho Power to remotely control the
pumps. Installation fees between $500 and $1,000 were applied to participating service points with less
than 30 hp.
A customer's incentive appeared as a bill credit that sums the demand credit and energy credit applied to
a customer's monthly bills. Credits are prorated for periods when readingbilling cycles do not align
with the program season dates from June 15 to August 15. All customer incentives participating in the
Electric Timer, Automatic Dispatch, or Manual Dispatch Options are calculated using Idaho Power
meter billing data. In addition, manual option customers' incentives are calculated using interval
metering data. The demand credit is calculated by multiplying the monthly billing kW by the
demand-related incentive amount for the intenuption option selected by the customer. The energy credit
is calculated by multiplying the monthly billing kwh usage by the energy related incentive amount for
the interruption option selected by the customer. Installation fees and opt-out penalties are completed
through manual bill adjustments. Incentives determined from interval meter data for service points
classified as large service locations are completed through a manual process and customers received the
incentives in the form of a check in 2010. Incentives offered are listed in Table 10.
Table 10. Option incentives
- Option Demand Credit Energy Credit
($ per billing kW) ($ per billing kwh)
Timer Option Incentives
One day ........................................................................................ $3.15
Two days ........................................................................................ $4.65 plus $0.002
Three days ........................... ......... ................................................. $4.65 plus $0.007
Automatic & Manual Dispatch Options Incentives ................................ $4.65 plus $0.031
Under the rules of the Automatic and Manual Dispatch Options, participants have the ability to opt out
of dispatch events five times per service point. Each opt-out incurs a fee of $0.005 per kwh based in the
current month's billing kwh, which may be pro-rated to correspond with the dates of program operation
and are completed through manual bill adjustments.
2010 Activities
In 2010 most of the challenges surrounding the dispatch devices and communications that occurred in
the prior year were resolved, working with Idaho Power's third-party contractor. This resulted in the
Irrigation Peak Rewards dispatch load control system working much better. In 2010, the program
achieved a maximum peak load reduction of approximately 249.7 MW. This represents a 38 percent
increase from 2009. Participation has been very good with this program. Of all eligible inrigation service
locations, approximately 11 percent are participating in the program. In 2010, there were 2,038 metered
service points enrolled in the program. Of the 2,038 enrolled service points, approximately 14 percent
were enrolledin the Electric Timer Option and 86 percent were enrolled in the Automatic and Manual
Dispatch Options.
Changes in 2010 included moving the program season from June 1-July 31, to June 15-August 15.
Additionally, the days of the week the program can be activated was extended to include Saturdays.
Demand-Side Management 2010 Annual Report Page 99
Irrigation Sector-Irrigation Peak Rewards Idaho Power Company
These changes were made to help align the program availability to better match Idaho Power's
system peaks.
Idaho Power attempted to distribute the Electric Timer Option participating service points evenly
throughout each weekday, based on cumulative demand reduction potential. However, due to service
point size variability, enrollment requests by customers, enrollment opt-outs, and other variables,
the load reduction could not be exactly balanced. All participants in the Automatic and Manual Dispatch
Options were grouped into five regional areas to be dispatched on each scheduled event day. Table 11
shows the MW reduction achieved daily on a week-by-week basis.
Table 11. Total program daily MW reduction without distribution losses using realization rates
Monday Tuesday Wednesday Thursday Friday
June 15-18 ............................. .. ...................................... 0.7 0.8 0.9 0.8 0.7
June 21-25 ............................................................................ 0.7 0.8 0.9 0.8 0.7
June 28-July 2 ...................................................................... 7.0 192.4a 8.9 7.5 7.3
July5-9 ...................................................... . . ....................... 7.0 8.5 8.9 7.5 221 .O
July 12-16 .............................................................................. 7.0 8.5 8.9 7.5 7.3
July 19-23 ..................................................................... 6.2 7.5 7.8 6.6 6.4
July 2E30 ................ ... ..................................................... 6.2 7.5 7.8 6.6 6.4
August 2-6 .......................... .. ............................................. 3.5 4.2 4.4 143.2 3.6
August 9-13 ..................... .. ................................................. 3.5 4.2 4.4 3.8 3.6
'Shaded cells are days when dispatch events occurred.
Idaho Power continued to market the program by varying the location of workshops and offering new
presentations to irrigation customers. In 2010, Idaho Power provided six workshops promoting the
Irrigation Peak Rewards program throughout the service area. Approximately 180 customers attended
workshops in Blackfoot, Aberdeen, Burley, Twin Falls, Grand View, and Nampa. Idaho Power also
accepted invitations to present the program at four workshops sponsored by agricultural groups in
Fairfield, Shoshone, Nampa, and Jackpot, Nevada. Exhibitor booths were also displayed at regional
agricultural trade shows, including the Eastern and Western Idaho Agriculture Expos, the Agri Action
Ag show, the Idaho Ag Summit, and the Idaho Irrigation Equipment Association show and conference.
In February 2010, a customer mailing was sent to all eligible Idaho Power irrigation customers with at
least one service point over 30 hp. The mailing included a program explanation, a program application,
the program's incentive structure, a listing of the customer's eligible service points, and a potential
incentive estimate for each program option based on the customer's 2009 usage. A second mailing of the
program brochure was sent to all eligible customers with pumps under 30 hp. These customers with less
than 30 hp are less likely to participate because of the installation fees resulting in multi-year payback
from the incentive. If these customers had a desire to participate, all additional information including
application and contract agreement was mailed to them at their request. Additionally, numerous
one-on-one conversation with Idaho Power agriculture representatives familiarized customers with the
new technology and program details.
Based on the results of the 2009 Irrigation Peak Rewards customer survey, process improvement
changes implemented in 2010 included redesigning the program application and rewriting the program
brochure to clarify the program information. The 2010 application worksheet was expanded to contain
actual incentives received for participating service points with the corresponding previous year's
Page 100 Demand-Side Management 2010 Annual Report
Idaho Power Company Irrigation Sector-Irrigation Peak Rewards
enrollment option. Customers who participated in 2009 were automatically re-enrolled at their option for
the 20 10 season.
In addition, Manual Dispatch Option customers received their incentives in the form of a check in 2010.
This payment process change limited enors and customer confusion in 2010.
Cost-Effectiveness
Although the BIC analysis for the Irrigation Peak Rewards program is based on a 20-year model, the
company also tracks cost-effectiveness on an annual basis. Both calculations use financial and DSM
alternative costs assumptions from the W. As published in the 2009 IRP, for peaking alternatives, such
as demand response programs, a 170 MW SCCT is used as the alternative resource for avoided cost.
Idaho Power's cost-effectiveness model representing the program over a 20-year period is updated
annually with actual benefits and costs. The benefits are based on peak reduction and shifted energy use.
In 2010, the company included an estimate of customer costs in the cost-effective analysis. This change
in inputs made the UC and TRC ratios differ. Updating the cost-effectiveness model in 2010 resulted in
a UC BIC ratio of 1.43 from the 20-year perspective and 1.14 for 2010. The UC BIC ratio is 1.37 from
the 20-year perspective and 1.12 for 2010. For details on the cost-effectiveness assumptions, see
Suppleinent 1: Cost-Effectiveness.
Customer Satisfaction and Evaluations
In 2010, Idaho Power conducted a review of the Irrigation Peak Rewards in an effort to ensure the
program's design was aligned with the resource needs identified by the IRP. Analysts and engineers
from Idaho Power's Customer Relations & Energy Efficiency, Power Supply Planning, and Load
Forecasting departments conducted this review. Based on this review, Idaho Power determined there is
an optimum amount of demand response that can be effectively used on Idaho Power's system and there
is a more economical way of paying for the program.
2011 Strategies
Substantial program changes have been proposed by Idaho Power and were filed with the IPUC on
December 10,2010, under Case No. IPUC PC-E-10-46 and the OPUC on January 7,2011,
under Advice No. 1 1-01. These program modifications are a result of Idaho Power's internal review and
input from the Idaho Irrigation Pumpers Associations, Integrated Resource Plan Advisory Council
(WAC), and the EEAG.
Seven program changes are proposed for 201 1 implementation:
Change the incentive structure to a fixed and variable payment that pays customers aportion of
their incentive for participating and a portion of their incentive based on how much the company
uses the program.
Include one program event in the fixed portion of the payment.
Allow the company to pay the variable portion of the incentive through a check at the end of
the season.
Require participants in the Manual Dispatch Option (>lo00 hp) to nominate the amount of kW
they are enrolling in the program.
Demand-Side Management 2010 Annual Report Page 101
Irrigation Sector-Irrigation Peak Rewards Idaho Power Company
Change the baseline calculation for the Manual Dispatch Option from maximum demand in
24 hours prior to the average demand between 10:OO p.m. and 11:OO a.m. prior to an event.
Modify the opt-out penalty for the program to $1 per kW per opt-out.
Add the 8:00 p.m. to 9:00 p.m. hour as an option that customers can sign up for that pays a
higher variable incentive.
Marketing plans for 201 1 will be to maintain customer participation through what will likely be a
transition year from the past incentive structure to the proposed structure if state regulators approve
Idaho Power's proposed changes. Idaho Power will continue to educate customers on the program,
through workshops and agriculture shows, though may have to limit participation levels to near current
levels, based on the overall need for demand response as a resource to meet future loads.
Page 102 Demand-Side Management 2010 Annual Report
1 Idaho Power Company Market Transformation
I
Northwest Energy Efficiency Alliance
NEEA encourages and supports cost-effective market transformation efforts in Idaho, Oregon,
Washington, and Montana. Through partnerships with local utilities, NEEA motivates marketplace
adoption of energy ,saving services and technologies and encourages regional education and marketing
platforms. NEEA provides training and marketing resources across residential, commercial,
and industrial sectors. Idaho Power accomplishes market transformation in its service area through
membership and coordinated activities with NEEA. 2010 was the first year of NEEA's new, five-year
plan. Thus, it was a year of realignment and expansion.
NEEA performs several Market Progress Evaluation Reports (MPER) on various energy efficiency
efforts each year. In addition to the MPERs, NEEA provides market research reports for energy
eficiency initiatives throughout the Pacific Northwest. Each of the reports applicable to Idaho is
included in the NEEA Market Effects Evalitations in Szippleri~ent 2: Evaluation.
In 2010, Idaho Power energy efficiency staff attended advisory meetings, served on sub-committees,
attended the first-ever conference in Seattle, Washington, and participated in NEEA sponsored studies
and research.
NEEA Activities
Commercial and Industrial NEEA Activities in ldaho
NEEA continued to provide support for commercial energy efficient activities in Idaho in 2010.
This included~artial funding of the IDL in Boise and local ~ e t t e r ~ r i c k s ~ trainings and workshops. - -
Idaho ~ower'$commercial sector programs, Building Efficiency and Easy Upgrades, are designed to
leverage NEEA, BetterBricks, and the LDL in Boise activities.
In the industrial sector, NEEA expanded the Continuous Energy Improvement (CEI) efforts to the
small-to-medium-sized businesses, defined as less than 250 employees per site. CEI is a multi-year
strategic effort designed to improve energy efficiency in the industrial sector, Prior CEI efforts focused
on two regional industries considered heavy energy users, 1) the food processing and 2) the pulp and
paper industries. Participants achieve cost savings through the adoption of energy-efficient business
practices. CEI provides expert support, resources, and services, supplying companies with the training
and tools for making energy efficiency a core business value. This effort is supported by providing
technical knowledge to organizations and to Idaho Power customers collaborating on energy efficiency
implementation.
Technical training and education continue to be important in helping Idaho Power industrial customers
identify where they may have energy efficiency opportunities within their facilities. Ten technical
training classes were completed in 2010. Topics included compressed air, chilled water systems,
pumping systems, variable frequency drives, and refrigeration. The level of attendance at these classes
remains high with 234 customers attending the workshops.
A program specialist for the Custom Efficiency program attended two NEAA-sponsored trainings for
The Northwest Energy Management Demonstration Pilot Project. The specialist served as a utility -. -
support, while gathering information regarding the pending energy-management standard.
Demand-Side Management 2010 Annual Report Page 103
Market Transformation Idaho Power Company
The NEEA is partnering with the US DOE to conduct the Northwest Energy Management
Demonstration project (NW EM Demo), an energy management pilot for industrial companies. One of
Idaho Power's large customers is one of the four companies participating in the pilot. The goal of the
project is for participants in the project to help shape the new US energy-management system standard
through their experiences and may play a role refining the pending global energy management standard
for participating industrial companies. Key findings from the NW EM Demo may help inform the new
IS0 50001 International Energy Management Standard for industry, which may impact how companies
worldwide manage energy.
Residential NEEA Activities in ldaho
NEEA's Residential Advisory Committee is comprised of representatives from various utilities,
the BPA, NEEA staff, and occasional representatives from program partner firms and consultants.
The committee meets quarterly to discuss upcoming projects, potential programs, and initiatives.
The residential programs leader usually attends this meeting or sends a residential team member when
topics warrant staff participation. These meetings are a useful mechanism for networking with other
utility peers, getting updates on regional activities and similar utility program efforts, and providing
feedback to NEEA to use in their planning efforts.
NEEA continues to provide support for the ENERGY STAR@ Homes Northwest program offered by
Idaho Power. NEEA offers technical assistance, funding for certifications, and builder and market
support.
In 2009, NEEA launched a Consumer Electronics Initiative. Idaho Power contributed $160,000 to this
multi-year effort, which included manufacturer support and consumer marketing for ENERGY STAR
televisions that are 30 percent more efficient than baseline ENERGY STAR models. Computer monitors
and desktop computers were included in the program in 2010. In 2010 and beyond, the funding for the
Initiative is provided by NEEA's multiple Northwest utilities partners' general funding. Eligible models
and point-of-purchase marketing collateral were placed in Idaho Power's service area.
NEEA representatives throughout 2010 conducted in-store training of sales staff. Energy savings are
being tracked by NEEA, and 2010 data will be available the mid-year 201 1.
In 2010, NEEA conducted a series of focus groups around the Northwest, including Boise, to help
develop the most effective marketing message. With the results, a new marketing campaign, Energy
Forward was developed by NEEA to highlight that the products with the designated Energy Forward are
the most advanced energy-saving products available. New point-of-purchase marketing materials were
created and placed on qualifying units by NEEA representatives throughout the Northwest. A new
website was created to describe the campaign: http://www.energyefficientelectronics.org.
Idaho Power also participated in a NEEA-sponsored DHP study in 2009. The first MPER on the DHP
Pilot became available in 2010. Detailed information about this project is provided in the DHP Pilot
description in this Deniand-Side Management 201 0 Annrral Report.
In December 2010, Idaho Power program specialists, analysts, and leadership attended the Efficiency
Connections Northwest conference in Seattle. Washington. This conference was created bv the region's
utilities and NEEA with the goal to advance energy efi"lciency awareness and its integration in the-
Northwest. Topics at the conference included methods to promote energy efficiency, increasing
collaboration between utilities, new and emerging technologies, markettransformation,
and energy codes.
Page 104 Demand-Side Management 201 0 Annual Report
Idaho Power Company Market Transformation
During 2010, the Idaho Power DHP Pilot program specialist participated in the monthly Web-based
seminar conferences held by NEEA. The goal of the Web-based seminar was to update the Northwest
utilities participating in the DHP incentive program. Topics included year-to-date updates on the number
of incentives paid, NEEA marketing strategies for the program, QA evaluations, contractor performance,
energy evaluation plans, and general feedback from the utilities.
Other NEEA Activities in ldaho
Each year, NEEA undenvrites the Idaho Energy Conference through a contract with the Association of
Idaho Cities. In addition, in 2010 NEEA provided $25,000 in support to the IDL in Boise,
which provides energy consulting services to commercial customers throughout Idaho Power's
service area.
The Residential Energy Efficiency Education Initiative specialist represented Idaho Power on the NEEA
Conduit Online Community Steering Team in 2010. Conduit (www.conduitnw.org) will be an online
resource to facilitate information sharing, coordination, and collaboration among energy efficiency
professionals in the Northwest. Pilot testing is targeted for March 201 1. Idaho Power is involved in this
testing. Conduit is slated for a general launch in May 201 1.
Idaho Power's customer research and analyst leader is an active participant in NEEA's
Cost-Effectiveness Advisoly Committee. This committee meets three to four times a year to review
NEEA cost-effectiveness models, assumptions, and, ultimately, energy-savings estimates. Idaho Power's
energy efficiency analyst participates in NEEA's Northwest Research Group. This group meets
throughout the year to catalogue and coordinate energy efficiency research projects regionally.
NEEA Funding
In 2010, Idaho Power began the first year of the 2010-2014 Regional Energy Efficiency Initiative
Agreement with NEEA. Per this agreement, Idaho Power is committed to fund NEEA based on a
quarterly estimate of expenses, up to the five-year total direct funding amount of $16.5 million,
in support of NEEA's implementation of market transfosmation programs in Idaho Power's service area.
Of this amount in 2010, 100 percent was funded through the Idaho and Oregon Riders.
In 2010, Idaho Power paid $2,391,217 to NEEA. The Idaho jurisdictional share of the payments was
$2,271,656, while $1 19,561 was paid for the Oregon jurisdiction. Other expenses associated with NEEA
activities, such as administration and travel, were paid by Idaho Power.
Preliminary estimates reported by NEEA indicate that Idaho Power's share of regional market
transfosmation MWh savings for 2010 is 15,334 MWh, or 1.8 aMW. Idaho Power relies onNEEA to
report the energy savings and other benefits of NEEA's regional portfolio of initiatives. For further
information about NEEA, visit their website at www.nwalliance.org.
Demand-Side Management 2010 Annual Report Page 105
Market Transformation Idaho Power Company
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Page 106 Demand-Side Management 2010 Annual Report
Idaho Power Comoanv Other Proarams and Activities
OTHER PROGRAMS AND ACTIVITIES
Residential Energy Efficiency Education Initiative
Idaho Power recognizes the value of general energy efficiency awareness and education in creating
behavior change and customer demand for, and satisfaction with, its programs. The Residential Energy
Efficiency Education Initiative's goal is promoting energy efficiency to the residential community
sector. This goal is achieved by creating and delivering educational programs that increase
Idaho Power's energy efficiency program participation and result in energy efficient and
conservation-oriented behaviors and choices.
The Residential Energy Efficiency Education Initiative distributed energy efficiency messages through a
variety of communication methods during 2010. Increased customer awareness of energy-saving ideas
was accomplished via distribution of approximately 8,750 copies of the 96-page book 30 Simple Things
You Can Do To Save Energy, a joint publishing project between Idaho Power and The Earthworks
Group. The book was updated and reprinted. Searchable versions of both the English and Spanish texts
were uploaded to Idaho Power's website during 20 10. Customers may now also download or request
hard copies of the book via the Web.
Through August of 2010, Idaho Power continued to provide weekly energy efficiency messages each
Saturday morning on The HomeFix Show with Joe Prin on 670 KBIO AM. Additionally, energy
efficiency messages aired on KBSU radio through February and March.
In May, Idaho Power launched a new educational project partnership with the Idaho Commission for
Libraries, Avista, and Rocky Mountain Power. The three utilities worked together to make Energy
Efficiency Kits available to all Idaho residents through the public library checkout system. Idaho Power
customers represent 60 percent of the population served. There were 245 kit8 sent to 140 public libraries.
The kits contain a Kill A wattTM Meter, instructions, and energy-saving tips. Based on the first
two quarterly reports, with 71 percent and 89 percent ofjurisdictions reporting respectively,
Idaho Power customers represented 80 percent of the total circulation with 546 checkouts. When library
staff members were asked to estimate the satisfaction of their customers, the majority of the responses
were positive with 18 percent indicating "very satisfied" and 76 percent indicating "satisfied."
In addition to these activities, Idaho Power was one of the sponsors of the third annual Idaho Green
Expo in May. As part of Idaho Power's commitment to the Expo, the company distributed
5,000 re-usable shopping bags with the message "Reduce Your Use" to the more than 8,500 people who
attended the 2010 Expo. Idaho Power's educational emphasis this year at the Expo was about
ENERGY Tools, a full-featured suite of energy efficiency tools available on the company's website.
Participants who visited the booth had the opportunity to sign up for Accozrnt Manager and view
near-real-time data of the energyuse in their homes. This prompted personal discussion about how
individual attendees could reduce their consumption and gave Idaho Power employees the opportunity
to introduce the myriad of available tools, such as the Energy Library, Energy Calculators, Home Audit,
and other customer resources. The message was well-received. Idaho Power staff at the booth interacted
with just over 7 percent of all attendees. Accozrnt Manager sign-ups for the Expo weekend were up
37 percent and 53 percent, respectively, from the two weekends just prior to the Expo. Moreover,
the seven-day period beginning May 8 showed a 23 percent increase in signups over the seven-day
period beginning May 1. Idaho Power presented three educational workshops at this event
1) Smart Meters = Smarter Idaho, 2) Renewable Energy for Your Home or Business, and 3) Building
Your Home Energy Plan. The company also participated on a residential panel that presented
Demand-Side Management 2010 Annual Report Page 107
Other Programs and Activities Idaho Power Company
Building a Greener Idaho. Lastly, Idaho Power partnered with Greenworks Idaho to develop and
administer an exit survey. Information collected about Green Expo attendees centered primarily on why
they attended the show. There were 318 sul-veys completed. The Green Expo participant profiles will be
used to improve messaging and goals and increase Idaho Power's return-on-investment for future
sponsorship of this event. It will also establish a baseline so Idaho Power can begin to track trends
among Green Expo attendees and the population they represent over time. Although 36 percent of the
respondents reported having participated in an energy efficiency program andor AIC Cool Credit, this
behavior ranked seventh out of the eight sustainable practices surveyed.
In September 2010, Idaho Power participated in the St. Luke's Women's Show for the third consecutive
year. The event was important due to the size of the audience and because its demographic component
aligned with Idaho Power's residential energy efficiency target audience. However, the nature of the
show did not allow for the desired depth of interaction as in past years. In 2010, Idaho Power focused on
drawing participants into the booth to complete an in-depth survey, providing Idaho Power with
participant profiles and key market data. The company collected 496 completed surveys, exceeding the
goal of 400. Idaho Power plans on refining the survey for this event in upcoming years and using it to
inform Idaho Power's educational efforts, program marketing activities, and program design.
Key findings were 13 percent of those surveyed stopped at the booth to learn about energy efficiency,
9 percent said they stopped to learn about Idaho Power's programs, and 4 percent said they stopped to
ask a question of the Idaho Power employees at the booth.
Respondents were asked if they had installed or replaced various equipment in their homes in the past
three years. Forty percent of respondents said they had replaced a clothes washer, 37 percent a
refrigerator, and 30 percent a dishwasher. They were also asked a series of demographic questions like
whether they pay the electricity bill at home, what role they play in purchasing or upgrade decisions at
their home, whether they own or rent their home, and their gender, age, and education levels.
Idaho Power further increased its energy efficiency presence in the con~munity by providing program
information at 116 special events. As part of process improvenlent accomplishments, the Outreach
Tracking System was implemented during the second quarter of the year. It captured details of a variety
of outreach activities and requests.
Field staff throughout Idaho Power's service area gave dozens of energy efficiency presentations.
The Customer Relations and Energy Efficiency department provided 20 presentations on Idaho Power's
energy efficiency programs and energy saving ideas to businesses, schools, and community
organizations. The Power to Make a Difference program was delivered 98 times in public schools and
10 times for various civic groups.
Seven of these presentations were part of the 2010 Energy Efficiency & Green Living Series. This series
was re-designed to improve the return on investment. Fewer topics were presented at more locations.
The residential program specialist along with other program specialists presented content. Publicity was
conducted orimarilv via the Internet and aosters/fliers distributed at the venues. In addition to the <
Boise Public Library, sessions were conducted at the Meridian, Eagle, and Ada Community Libraries.
In Twin Falls, the College of Southern Idaho's Sustainability Council hosted two sessions at the
College of Southern ~daho. This year's topics were titled ~i&le Changes Make Cents: T@s, Tricks &
Tools to Reduce Electricity Bills, and Get Ready, Get Set, Go: Powering Hot~ies with
Alternative Energy.
Page 108 Demand-Side Management 2010 Annual Report
Idaho Power Company Other Programs and Activities
The seven sessions combined attracted 135 participants. The Residential Energy Efficiency Education
Initiative collected participant evaluations at the 2010 Energy Efficiency & Green Living Series.
The survey return rate was 69 percent, with 93 participants completing a survey following
the presentations.
Overall, 79 percent of attendees "strongly agree" the infolmation presented was useful, and 66 percent
"strongly agree" the information presented met their expectations. Fifty-six percent said they "definitely
would" and 44 percent said they "probably would" recommend the session to a friend or family
member. Sixty percent said they "very likely" would attend future Energy Efficiency and Green Living
Series presentations, and 36 percent said they are "somewhat likely" to attend future presentations.
When asked what topic they "would attend" the future, 61 percent responded renewable energy;
49 percent responded landscaping for energy efficiency; 44 percent said Idaho Power rebates and
incentive programs; 43 percent said energy-efficient window coverings; and 41 percent said energy
efficiency for older homes. Comments related to what actions they would take as a result of attending
the session included more energy awareness, changing existing light bulbs, making other home
improvements, exploring solar energy options, and looking for ways to better educate themselves.
The Residential Energy Efficiency Education Initiative continued to provide energy efficiency tips in
response to media inquiries and for various Idaho Power publications, such as the Green Powel.
Ne~lsletter, the A/C Cool Credit Newsletter, Custo/~ier Connection, the high billltiered rate customer
letters, the AM1 door hangers, and N ~ M J S Scans.
Idaho Power sponsored two general education efforts during the year. The first was the publication of
the 2010 Energy Efficiency insert for use in The Idaho Stafesnia11 in June. The insert presented
Idaho Power's Energy Efficiency Programs, introduced the SEE program and the Kill A Watt Meter
program, discussed the reasons why energy efficiency is important, and offered energy efficiency tips
regarding choosing a contractor and dealing with the summer heat. It also emphasized ENERGY Tools
and energy use data available through Accozmt Manager as a result of the smart meter installations. The
second campaign began in late November and early December. It promoted Energy Efficient Gift
Giving ideas through various print media and bill inserts to help educate people regarding considerations
when purchasing electronics for their homes.
Idaho Power frequently made additional educational prese~~tations about energy efficiency, Idaho Power
programs, and energy efficiency tips. The company created an energy efficiency presentation to educate
students about the efficient use of energy in their homes. The program targets fourth- to sixth-grade
student audiences. During 2010, the Idaho Power community education team presented Tlie Power to
Make a Difference in 103 classrooms across the service area. Idaho Power is planning to continue
making revisions and improvements to the presentation.
Also during 2010, Idaho Power community education conducted 42 presentations and programs
regarding energy efficiency to senior centers and civic groups within the company's service area.
The Power to Make a Dijference presentation demonstrated the importance of energy efficiency in the
community. The other component of educational outreach was reviewing energy efficiency program
options as well as low- and no-cost ways for customers to save energy and money in their homes
or businesses.
In 2010, Idaho Power contracted with Global Energy Partners, LLC, to provide a process evaluation of
the Residential Energy Efficiency Education Initiative. This evaluation included a program data review, -. - -
program logic model, internal customer survey evaluation, industry best practices comparison,
conclusions, and recommendations. The final report was received in February 201 1 and found that the
Demand-Side Management 2010 Annual Report Page 109
Other Programs and Activities Idaho Power Company
program "conducted a wide variety of marketing and outreach to residential customers," and "is well
received by the customers reached." Recommendations for program improvement included the need for
prioritization of desired behavior changes and the need to gather additional data to enhance the
measurement of success of activities the program undertakes. The results of the evaluation are in
Supple~nenf 2: Evaluation.
The company is currently analyzing other recommendations made by the consultants for possible future
implementation. Program changes made in 201 1 will be highlighted in the Demand-Side Management
2011 Annual Reporf.
During 201 1, the initiative's goals are to increase program participation and promote education and
energy-saving ideas that result in energy-efficient and conservation-oriented behaviors and choices.
Plans for 201 1 include working with other Idaho Power program specialists and participating contractors
to distribute the book 30 Simple Things You Can Do To Save Energy to program participants when
energy efficiency upgrades are made. Idaho Power will continue the partnership with the
Idaho Commission for Libraries, Avista, and PacifiCorp to provide Kill A Watt Meters to libraries
throughout Idaho for lending to library patrons and will work with the libraries to establish another
distribution channel for 30 Simple Things You Can Do To Save Energy. Stand-alone energy efficiency
education tools, such as newsletter fillers, public service announcements, and one-page discussion
starters will be developed and marketed to sustainably-minded businesses and organizations.
Contacts will be made with high schools and other educational institutions to see what additional
opportunities there may be to provide energy efficiency education and materials for students.
The Residential Energy Efficiency Initiative will continue to develop the Outreach Tracking System to
improve the quality of data captured and to continue to increase the effectiveness of outreach efforts.
Easy savings@ Program
As a result of LPUC Order No. 30772, Idaho Power committed to fund energy efficiency education for
customers receiving energy assistance through the federal LIHEAP. Case No. IPC E-08-10 specified
that $125,000 be paid to CAP agencies in the Idaho Power service area on a pro-rated basis. In addition,
the target for the educational information is qualified families who heat their homes with electricity
provided by Idaho Power. As in 2009, CAPAI, signed a contract with Resource Action Programs (RAP)
for provision of the Easy savingsQ Program in 2010.
Two main desired outcomes of the Easy Savings Program are to educate recipients about saving energy
in their homes to reduce energy usage and to allow hands-on experience installing low-cost measures.
The primary target for the program is households qualifying for energy assistance who do not contain
household members who meet criteria for weatherization prioritization. The criteria for a household
prioritized for weatherization services include elderly, disabled individuals, and families with children.
The Easy Savings Program provides a kit containing low-costlno-cost energy-saving items to customers
qualifying to receive a LIHEAP benefit on their Idaho Power bill. Kit items include the following:
Hot water temperature card and refrigerator thermometer
Rope caulk and outlet draft stoppers
Page 11 0 Demand-Side Management 2010 Annual Report
Idaho Power Company Other Programs and Activities
Kitchen faucet aerator and high-efficiency showerhead
LED nightlight and reminder magnets and stickers for the laundry and lights
Quick Sfart Guide to installation (printed in English and Spanish)
Educational materials and information on Idaho Power energy efficiency programs
Easy Savings Survey (printed in Spanish and English)
In 2010, payments totaling $125,000 were sent to regional CAP agency executive directors by
Idaho Power. The agencies are allowed to keep 10 percent of their portion of the $125,000 to cover
expenses for additional time spent on tlie Easy Savings Program.
Kits were delivered to CAPAI prior to January 2010. Throughout the year, 2,594 kits were distributed to
Idaho Power customers approved to receive energy assistance benefits on their Idaho Power bills.
A participant survey inquiring about installation experiences and actions taken to reduce energy use was
included in the kits during 2010. Tracking was done via kitlsurvey numbering system. Returned surveys
were used to track educational impact of the program. A drawing from all returned surveys was held and
six families won a $100 gift certificate each, provided by CAPAI.
Of the 2,594 surveys distributed, 273 completed surveys were received back from customers describing
their experience installing kit items in their homes, resulting in a 10.5 percent response rate.
Nine questions refened to the customer taking a suggested action to reduce energy use, and two other
questions confirming installation of kit items.
Overall, survey results show that over 64 percent of the customers who received the kits and retumed a
survey installed five or more kit items. Over 76 percent of the 268 families answering tlie question
"How much have you learned about saving energy and money in your home?" reported "I learned a lot."
Survey results indicated that 256 families reported recycling or unplugging a second or old refrigerator
or freezer. Infoimation about how to apply for a rebate from Idaho Power's See ya later, refrigerator^
program was included in kit.
Additionally, 258 families reported they lowered, or will lower, their heat during the day and at night.
Other energy efficiency actions taken by participants include 247 families who reported installing both
CFLs and the 23 1 families who reported installing the high-efficiency showerhead included in the kit.
Most families reported adjusting water, refrigerator, or freezer temperature as suggested by the Quick
Start Guide. Copies of the susvey and survey results can be found in Szipplenient 2: Evalztafioti.
In November 2010, CAPAI signed an agreement with RAP to provide 2,127 energy kits for the 201 1
program. The kits will be delivered to the CAPAI warehouse before Janualy 201 1 for distribution to
each agency and to qualified Idaho Power customers throughout tlie year.
In 201 1, each agency will retain 30 percent of their portion of the $125,000 to be used to help pay the
salary of a certified educator, as agreed upon by Idaho Power and the CAPAI agencies. Educators from
each CAP agency will complete the Home Energy Conservation Certification curriculum taught by
CAPAI's Energy Programs coordinator prior to distributing kits to customers. The 201 1 program allows
agencies 30 percent of the total funds as opposed to the 2010 program, which allowed 10 percent.
Demand-Side Management 2010 Annual Report Page 11 1
Other Programs and Activities Idaho Power Company
Educators in regional agencies will distribute kits and conduct seminars for targeted recipients in order
to have all kits distributed prior to the upcoming heating season in the fall.
Continuing in 201 1, customers will be encouraged to return the surveys included in the kits in order to
be entered into a drawing for prizes provided by CAPAI.
Commercial Education Initiative
Idaho Power continued to enhance its Commercial Education Initiative, established in 2008. The main
objectives are to inform and educate commercial customers regarding energy efficiency, enhance
awareness and increase participation in existing commercial energy efficiency and demand response
programs, and enhance customer satisfaction regarding the company's energy efficiency initiatives.
To accomplish these objectives, the program specialist works in tandem with Idaho Power customer
representatives assigned to commercial market segments to capitalize on their established strategic
customer relationships.
The program specialist oversees the distribution of infolmational materials and works directlv with trade - -
allies, who in turn support and promote Idaho Power's energy efficiency programs. ~dditionill~,
the program specialist routinely conducts individual site visits in an effort to customize energy
efficiency rec&mendations fir individual customers or customer segment. Site visits also s&e as field
and staff training opportunities for future site visits.
In 2010, Idaho Power implemented the use of the Equipment Efficiency Specification Sheets developed
by the company in 2009 for customer use. The information contained on these specification sheets focus
on common commercial facility equipment and energy efficiency opportunities.
Idaho Power carried out its plan to capitalize on effective customer projects by creating success stories
that highlight customers' energy efficiency projects. Nineteen customer Success Sfwies were added in
2010 to the Custom Efficiency webpage on the Idaho Power website at
www.idahopower.com/EnergyEficiency/Business/Programs/Custo~fficiency/custo~fficiency~Succ
essStories.cfm and are included in Stpple~nent 2: Evalziatian.
Also in 2010, Idaho Power developed Energy Efficiency Tip Sheets for use by commercial customers.
These tip sheets provide standardized enerm efficiency recommendations tailored to specific
commercial markt segments, which inclu&d restaurants, health care facilities, hote1s;and grocery
stores. Market segments were identified using the North American Industry Classification System's
Standard Industrial Classification (SIC) codes for each segment. Informational materials, including the
health care, hotel, and grocery tip sheets were given to customers during site visits. The restaurant tip
sheet was used in a mass mailing to over 2,100 customer locations. Because of the low return for the
cost required to do target mailings, distribution of the other three target pieces will be done through site
visits and customer request for information.
By year-end, the Commercial Education Initiative staff performed a total of 96 walkthrough evaluations,
contractor visits, and presentations to municipalities and professional groups. Idaho Power provided
input and funding for 48 presentations and training sessions, in collaboration with the IDL in Boise.
Another imp~rtant part of the education initiative is identifying challenges in the delivery of efficiency
education messages to commercial customers. A newly emerging challenge has been locating
appropriate audiences. As the industry matures, audiences needing energy information are not readily
identifiable. The accessibility to receptive audiences has become much more difficult over the past few
Page 112 Demand-Side Management 2010 Annual Report
Idaho Power Company Other Programs and Activities
years. Two years ago, almost any energy topic presentation appropriately marketed was well attended.
In 2010, there were energy efficiency presentations and trainings offered industry-wide with limited new
content, provided to audiences knowledgeable about energy efficiency. Often, attendees were energy
efficiency authorities or established contractors. In most presentations and trainings in 2010,
knowledgeable and experienced attendees outnumbered the audience needing energy efficiency ideas
and practices.
A possible solution for locating untapped markets in need of energy efficiency training was identified
through interactions with another organization that Idaho Power collaborated with in 2010. Idaho Power
conducted a joint presentationltraining in McCall in 2010 with the Snake River Alliance (SRA).
This well-attended event generated numerous requests for information and services. The SRA targets
smaller markets where training and resources are less available. They identified participant fatigue as an
issue, which plagues other organizations concerned with efficiency info~mation and training. Because of
the event, a potential market emerged; the smaller commercial markets in rural areas. Another use of the
smaller market approach in 2010 was an Idaho Power presentation for the Idaho Commission for
Libraries, resulting in high attendance and hrther requests for information and services.
Idaho Power contracted with The Cadmus Group, Inc. to provide a process evaluation of the
Commercial Education Initiative. This evaluation included a program data review, program logic model,
internal customer survey evaluation, indusby hest practices comparison, conclusions,
and recommendations. The final report was received in February 201 1. The report noted that this
initiative provides valuable educational and technical services to commercial customers and supports
many of the programs in Idaho Power's commerciaVindustria1 portfolio. Recommendations for program
improvement included the need to have more clearly defined goals, update marketing materials,
enhance program tracking capabilities, and gather customer feedback. Idaho Power is currently
analyzing all recommendations. Program changes made in 201 1 will be highlighted in the Demand-Side
Management 2011 Annual Report. The complete report is provided in Szpplernent 2: Evaluafion.
In 201 1, the Commercial Education Initiative will seek future opportunities to assist small communities
interested in learning more about energy efficiency. The initiative will continue to conduct site visits,
use the Equipment Efficiency Specification Sheets, distribute target market information tip sheets,
and present at professional meetings. Additionally, the initiative will continue to work with education
programs. such as Boise State University's Small Business Development Center, supporting their
efficiency evaluations for small businesses. Also in 201 1, the initiative will provide consultation to
energy efficiency education programs at local colleges, including College of Western Idaho and the
College of Southern Idaho. A sixth tailored Energy Efficiency Tip Sheet, designed for schools, will be
distributed in 201 1, along with the other five tailored tip sheets providing standasdized and specialized
energy efficiency recommendations.
Final reports from The Cadmus Group's, Inc., 2010 process evaluations were received in Febiuary 201 1
All viable process recommendations will be considered and prioritized for implementation in 201 1.
Process changes implemented in 201 1 will be highlighted in the Demand-Side Manage~nent 2011
Annual Report.
Local Energy Efficiency Funds
The purpose of LEEF is to provide modest fnnding for short-term projects and activities that do not fit
within other categories of energy efficiency programs, but that still provide energy savings or a defined
benefit to the promotion of energy-efficient behaviors or activities.
Demand-Side Management 2010 Annual Report Page 11 3
Other Programs and Activities Idaho Power Company
In 2010, Idaho Power sponsored one LEEF project. A payment of $250 was made to the
Idaho Conservation League (ICL) to sponsor 50 percent of the cost of a home audit and weatherization
demonstration, in support of ICL's 10/10/10 energy efficiency initiative. The initiative was part of a
national effort by conservation organizations to highlight global warming by sponsoring various
demonstrations and activities on October 10,2010. The day's events in Hailey, Idaho, included a public
educational forum that Idaho Power personnel participated in and the home-audit demonstration.
Students for Energy Efficiency
Idaho Power created the SEE program in 2009. Idaho students participate in energy assessments of their
schools and homes using science and math skills to evaluate and provide recommendations regarding
energy improvements and energy efficiency. At numerous presentations, including EEAG, the success
of this program has been praised,
There were two primary initiatives in 2010. The first one was a program for high school students.
The project is designed as a "learning lab" where students gain a better understanding of energy, how it
is measured, and how to use it more efficiently. The second initiative was an elementary program
focused on sixth-grade students. Students receive a tool kit and exercises that the sixth graders work on
in their classroom, as well as take-home exercises to work on with their families.
During the 2010-201 1 school year, over 300 students are participating in the high soh001 program,
and over 6,500 students are participating in the elementary program.
The SEE program promotes targeted educational standards that reinforce the Idaho Department of
Education Content Standards for Science. The four main topics addressed are: 1) defining energy,
2) identifying how energy is used, 3) describing energy measurement methods, and 4) determining how
energy can be used more efficiently.
Schools participating in the SEE program provide benefits to their communities in the form of reduced
energy use and reduced operating costs. Evaluations by program participants were conducted following
the completion of the students' assessment reports, presentations, and participation.
During the summer of 2010, a review of the program activities for the 2009-2010 school year was
conducted with the assistance of the SEE Community Advisory Group, participating teachers and
students, Idaho Power's customer research and analysis; leader, customer research coordinator, and
energy efficiency evaluator. Teacher survey results, as compiled and analyzed by the customer research
coordinator, indicate overwhelming approval and continued interest in the program.
The in-school training schedule was adjusted to include two training sessions per school. The first
two-hour session introduces the program and the Crime Scene Investigation (CSI)/Energy Scene
Investigation (ESI) concept to students; acquaints them with the equipment; and introduces concepts on
assessing lighting, building envelope, plug and phantom loads, and energy usage per square foot.
A second one-hour session assists students in analyzing and understanding energy assessment data they
have collected; using the Easy Upgrades Calculator to determine current energy usage and potential
energy and cost savings based on their recommendations; and determining report format and target
audiences for presentations.
Presentations promoting the SEE program were made to the Idaho Science, Technology, Engineering
and Mathematics (STEM) conference, the Idaho Environmental Education Association conference,
and the Idaho Science Teachers Association conference.
Page 114 Demand-Side Management 201 0 Annual Report
Idaho Power Company Other Programs and Activities
The development of the SEE program followed the IPUC Order No. 30760, dated March 27,2009,
directing the use of a portion of the proceeds from 2007 sulfur dioxide (SOz) emissions credits sold by
Idaho Power. The order called for delivery of the energy education program for two years and a report
summarizing the results. Idaho Power will produce the report following the close of the 2010-201 1
school year.
Regional Technical Forum
The BPA and the Northwest Power and Conservation Council (NPCC) established the RTF in 1999.
Since 2004, Idaho Power has supported the RTF by providing annual financial support, regularly
attending monthly meetings, and participating in various subcommittees.
The foium's puipose is advising BPA, the NPCC, the region's utilities, and organizations, including
NEEA and the ETO on technical matters related to energy efficiency and renewable-resources
development. Activities include the developnlent of standardized protocols for verifying and evaluating
energy savings and tracking conselvation and renewable resource goals. Providing feedback and
suggestions for improving the effectiveness of regional energy efficiency and renewable resource
development programs are additional activities of the RTF. The RTF also recommends a list of eligible
conseivation measures and the estimated savings associated with those measures. Idaho Power takes the
information provided by the RTF into consideration when conducting research and analysis on new and
current measures. The RTF meets 10-12 times annually to review and provide comments on analyses
and other materials prepared by NPCC and BPA staff and RTF contractors. Idaho Power uses the
savings estimate and calculations provided by the RTF when applicable to the Idaho climate zones and
load characteristics.
In 2010, Idaho Power staff participated in all of the RTF's meetings and was involved in various
subcommittees. Idaho Power has been involved in the ongoing Commercial Rooftop Unit Work Group
(RTUG) subcommittee since 2007. Cussently, nine sites in Idaho Power's service area have been
metered since 2008 and is part of the nation's largest publically available rooftop unit data set.
A commercial program specialist actively participates in the RTUG subcommittee meetings.
The Idaho Power Issigation sector specialists contributed to the irrigation measure analysis while on the
Irrigation Hardware Subcommittee during 2009 and early 2010. An Idaho Power Custom Efficiency
program specialist was solicited for the Grocery Refrigeration Subcommittee in 2010 and will remain on
the subcommittee during 201 1. Also in 201 1, the H&CE Progranl specialist will participate on the
Ground-Source Heat Pump Subcommittee.
Boise City Home Audit Project
The City of Boise received stimulus dollars via the US DOE Energy Efficiency Conservation Block
Grant (EECBG). Idaho Power is pastuering with the city to create a limited-term, residential energy
audit project that will include installation of some low-cost energy-saving measures for 650 homes.
The audits will identify larger efficiency needs. Homeowners will be provided information on programs
that can assist them with the costs of implementing these additional measures, such as infolrnation on
the City of Boise's Home Improvement Loan Program.
Idaho Power will design and manage the project, with City approval, and contract with HPS to perform
the energy audits and installation of measures.
The energy audit will include a blower door test, a visual inspection of crawl space and attic, and a
collection of data regarding the home and its energy use. Potential low-cost energy-saving measures that
Demand-Side Management 2010 Annual Report
Other Programs and Activities Idaho Power Company
could be installed in each home include limited sealing of air leaks, such as mastic around furnace unit;
installing CFLs; insulating water pipes that are three feet or less between the water heater and the
structure; and installing a low-flow showerhead. The visit will include educating customers on a variety
of items, such as how to replace their furnace filter or lower the temperature on their water heater.
Participating customers pay $49 for the audit and installation of measures, with the remaining cost
covered by the EECBG funds. This is a great value for the customer. Energy audits of this type normally
cost $300 and more, not including the measures, materials, and labor. The cost of the materials
potentially installed at each home is approximately $100.
Target audience for this project is Boise City residential customers living in single-family, site-built
homes under 3,000 square feet. The homes must be owner-occupied as a year-round residence. It is
necessary for the customer to have lived in the home for at least 12 months, allowing retrieval of a full
year of historical data prior to installation of any measures related to this project. In addition, it is
desirable that the customer plans to stay in the home for the next year or two. This would allow
post-installation data collection based on the same family/electric use style. Twenty-five percent of
targeted homes must be all electric.
Participants will be selected on a first-come, first-served basis. Applicants received beyond the allotment
will be placed on a standby list to be used if an accepted applicant decides not to participate or does
not qualify.
In 2010, the project design was complete. An RFP for auditors was sent, applicants reviewed,
and three companies selected. The selected auditors and QA company completed contracts. In October
2010, the auditors were trained on the project and process. The project launched mid-November, and
marketing letters were sent to a small randomly selected group from a larger target group. The audits
and QA of the audits began after that. Reporting to the city is done monthly and quarterly. Audits and
QA will continue through approximately May 201 1. At that time, the analysis process will begin.
Page 116 Demand-Side Management 2010 Annual Report
Idaho Power Company Regulatory Initiatives
Idaho Power believes there are three essential components of an effective regulatory model for DSM:
1) the timely recovery of DSM program costs, 2) the removal of financial disincentives,
and 3) the availability of financial incentives.
Since 2002, Idaho Power has recovered its DSM program costs through the Rider with the intended
result of providing more timely recovery of DSM costs. To address the removal of financial
disincentives, Idaho Power is testing the effects of a FCA mechanism in a five-year pilot initiative.
The FCA pilot just completed year four. To introduce an option to provide financial incentives for DSM,
the company filed in October Case IPC-E-10-27 to move incentive payments for one DSM program to a
regulatory asset account in order to begin earning its authorized rate of return on the DSM investment.
This will allow some energy efficiency investments to be treated similar to supply-side investments and
not treated as inferior investments. In the same filing, the company also proposed moving the recovery
of incentive payments of demand response programs out of the Rider mechanism and into the PCA
mechanism. This move would treat the cost recovery of demand response incentive payments similar to
other supply-side resource expenses such as fuel, purchase power, and surplus sales. These mechanisms
are discussed in more detail below.
Fixed-Cost Adjustment Pilot
Under the FCA, rates are annually adjusted up or down to recover or refund the difference between the
fixed costs authorized by the IPUC and the fixed costs Idaho Power actually received the previous year
through energy sales. This mechanism removes the financial disincentive that exists when Idaho Power
invests in energy efficiency and demand response resources. The FCA Pilot is limited to the residential
and small commercial classes in recognition of the fact that, for these customers, a high percentage of
fixed costs are recovered through their energy charges.
During the initial three-year period in which the FCA, Schedule 54, was in effect, Idaho Power made
strong progress toward improving and enhancing its efforts to promote energy efficiency and DSM
activities. The company increased the number of energy efficiency and demand response programs it
offers and substantially increased both its investment in DSM activities and the MWh savings obtained
through these activities. Results from the first three years of the pilot indicated that the true-up
mechanism was working as intended.
On October 1,2009, the company filed an application with the IPUC to convert the FCA to an ongoing
and permanent rate schedule. On April 29,2010, the IPUC issued Order No. 31063 extending the FCA
as a pilot for an additional two years, effective January 1,2010.
On May 28,2010, the IPUC issued Order No. 31081 approving the company's request to implement
FCA rates for fixed-cost deferrals in 2009. Beginning June 1,2010, the company implemented an
overall rate adjustment of 1.85 percent to residential and small general service customers to collect a
combined $6.3 million in under-collected fixed costs. Residential customers experienced a rate increase
of 0.1218 cents/kWh, while small general service customers experienced an increase of
0.1535 centskWh. The rate adjustments resulted in a collection of an additional $3.6 million over the
then current billed amounts and will be in place until May 3 1,201 1.
Demand-Side Management 2010 Annual Report Page 117
Regulatory Initiatives Idaho Power Company
Irrigation Peak Rewards Filings in ldaho and Oregon
In 2010, Idaho Power enhanced its traditional annual review of the lrrigation Peak Rewards program by
conducting an additional study in conjunction with its 201 1 IRP analysis. This study was conducted in
an effort to ensure that the program's design is aligned with the resource needs identified by the IRP.
After a thorough review of resource need and demand-reduction potential, the company concluded that
its need for demand response extended beyond 8:00 p.m. to at least 9:00 p.m. Further, the company
concluded that its annual capacity need during the highest 60 hours of demand was expected to valy by
more than 50 percent (167 MW) during the next five years, Based on these findings, the company filed
program modifications to its Irrigation Peak Rewards programs in Idaho (Case No. IPC-E-10-46)
and Oregon (Advice No. 11-01).
In its filings, Idaho Power first sought to include the 8:00 p.m. to 9:00 p.m. hour as an "Extended
Interruption" option on a voluntary basis. Customers willing to accept an extended interruption period
would receive a higher incentive payment for event hours. In return, Idaho Power would be able to
reduce loads across the entire peak period,
Second, in an effort to better align annual program costs with the annual capacity need, the company
proposed to change the incentive structure for the program from a fixed incentive payment methodology
to a methodology that combined a fixed and variable incentive payment. Having a portion of the
incentive based on the actual utilization of the resource would more closely align the cost of demand
response with the variable capacity needed.
Third, to encourage equipment testing and participant familiarity with the program, Idaho Power
recommended the program be modified to allow one program test event per program season that is not
subject to a variable payment.
Overall, the proposed program modifications are reflective of a collaborative process in which
Idaho Power received feedback from numerous stakeholder groups, including the Idaho Irrigation
Pumpers Association, the Commission Staff, the EEAG, and the IRPAC. The revised program,
as proposed, will more closely align program incentives with the company's need for demand response.
The company will continue to monitor the program's performance and report on program results next
year through the Demand-Side Managenlent 2011 Anniral Report.
Demand-Side Resource Business Model Filing
On October 22,2010, Idaho Power filed Case No. PC-E-10-27 with the IPUC requesting authorization
to implement a demand-side resource (DSR) business model that would 1) move demand response
incentive payments into the PCA on a prospective basis beginning June 1,201 1; 2) establish a
regulatory asset for Custom Efficiency program incentive costs beginning January 1,2011; and
3) change the carrying charge on the Idaho Energy Efficiency Rider (Rider) from the customer deposit
rate to the company's authorized rate of return. Idaho Power requested an order by March 15,201 1.
Idaho Power stated in the filing that fi-om a regulatory standpoint, successful DSR business activities
require clear and achievable guidelines for pludency. There must be a timely recovery of out-of-pocket
expenditures that appropriately recognizes the time value of money and does not negatively impact cash
flow in a significant way. Economic disincentives to reduce load must be mitigated through better
pricing, decoupling, or some other mechanism that does not strand fixed cost recovery. Finally,
Page 118 Demand-Side Management 2010 Annual Report
Idaho Power Company Regulatory Initiatives
the company must have the ability to earn on the energy efficiency investments just like any other
business activity in which the company is engaged.
The Rider balance is presently negative by more than $17 million and has been negative since
April 2008. The large growing balance reflects success associated with increasing programs,
expenditures, and savings in DSR. However, continuing to increase the negative balance is problematic.
A Rider account with an extended negative balance breaks the symmetry of the mechanism and
negatively impacts the company's cash flow. The company believes there is a more appropriate path that
would allocate some of the expenses to more suitable alternatives for recovery.
All costs for the demand response programs are presently recovered through the Rider. Currently,
the Idaho Rider charge is 4.75 percent of base rates applied to all customer groups. In this filing,
Idaho Power requested authority to remove recovery of customer and demand-aggregator contractor
incentive payments for all company demand response programs from the Rider balancing account and
transfer these costs to the PCA for 100 percent recovery on a prospective basis. Idaho Power proposed to
begin shifting the recovery of the demand response incentive costs to the PCA beginning with the
company's forecast of April 201 1 through March 2012 power supply costs, cu~rently expected to be
approximately $14.6 million. Idaho Power proposes to include these costs in the PCA in a manner
consistent with the current PCA methodology. The company would forecast Idaho demand response
incentive payments just as it does for its forecast of fuel, purchased power, and surplus sales.
This forecasted amount of demand response incentive costs would be included in PCA rates, effective
June 1,2011.
In addition to moving demand response incentive costs to the PCA, Idaho Power proposed to change the
method of recovering a portion of the energy efficiency program incentive costs. Currently, all energy
efficiency incentive costs are recovered through the Rider balancing accounts. The company proposed to
capitalize the direct incentive payments associated with the Custom Efficiency program to enable the
company to earn a return on a portion of its DSR activities. The company proposed to start booking
incentive payments to a regulatory asset account beginning January 1,201 1. The balance in the account
would be included in the company's revenue requirement at the time of a future rate case and would be
amortized over four years. The then-current commission authorized rate of return would be applied as a
carrying charge during the deferral period and the amortization period. This treatment will keep the
selected DSR assets on par with supply-side assets.
Because of the large negative balance existing in the Rider and because it will take almost two years to
work this balance down given the prospective nature of the company's previously stated requests,
Idaho Power requests that the LPUC authorize the carrying charge on the remaining balance to reflect the
company's authorized rate of return (currently 8.18 overall rate of return with a 10.5 return on equity
component) instead of the interest rate on customer deposits (currently 1.0 percent). Changing the
current carrying charge is particularly important should the IPUC decide against part or all of the
company's requests.
If the IPUC implements the company's two proposals, the 2010 negative Rider balance of $17,592,938
is projected to shrink to a negative $3,356,306 in 201 1 and, in the middle of 2012, it is expected that this
account will approach zero.
On March 3,201 1, Idaho Power filed testimony in support of a settlement Stipulation in this case.
Terms of the Stipulation include moving demand response program incentives associated with the
A/C Cool Credit program, the Irrigation Peak Rewards program, and the FlexPeak Management
program to the PCA on a prospective basis begitming June 1,201 1. A one-year interim per kwh tariff
Demand-Side Management 2010 Annual Report Page 119
Regulatory Initiatives Idaho Power Company
rate will be implemented for each customer class in order to recover the same amount of revenue from
each class as would have been recovered through a DSM Rider charge. The parties agree that incentive
payments of the Custom Efficiency program would be capitalized as a regulatory asset beginning
January 1,2011, with a carrying charge equal to the current IPUC authorized rate of return. Once placed
in rates, this regulatory asset will he amortized over seven years and will earn the then-current,
commission-approved authorized rate of return. The parties also agree that the Idaho Rider carrying
charge will remain at the customer deposit rate. The parties signing the Stipulation were Idaho Power,
IPUC Staff, the ICL, Northwest Energy Coalition, SRA, and CAPAI. The Idaho Irrigation Pumpers
Association, Inc., did not sign the Stipulation, but do not oppose it. The industrial customers of Idaho
Power did not sign the Stipulation and are expected to file testimony in opposition to the Stipulation.
At this time, the IPUC has not issued a final order in this case.
Energy Efficiency Rider-Prudency
On March 16,2010, Idaho Power, under Case No., PC-E-10-09 filed an application to the IPUC for an
order designating Idaho Power's expenditure of $50,701,740 in Idaho Rider funds in 2008 and 2009 as
prudently incurred expenses. This prudency filing was the first designed to comply with the agreed-upon
principles set forth in the MOU for Prudency Determination of DSM Expenditures. The filing included
as attachments to the Demand-Side Managerilent 2009 Airnlial Report, along with two new documents,
Supplement 1: Cost-Effectiveness and Stipplement 2: Evaluation. OnNovember 16,2010, in Order
No. 321 13, the IPUC found that the company acted prudently in the administration of its DSM programs
and found its 2008 and 2009 Rider expenditures were approved for ratemaking purposes. On page 9 of
the Order, the IPUC states; "The Commission exhorts Idaho Power to continue on this path toward
improvement. Idaho Power should seek to employ independent evaluators for all of its DSM programs
and take affirmative steps toward achieving measurable improvements in its documentation, verification
and record-keeping processes for these programs."
Energy Efficiency Rider-Oregon
On March 5,2010, Idaho Power filed a request with the OPUC under Tariff Advice 10-03 to increase
the Rider from 1.5 percent of base rates to 3.0 percent of base rates and to eliminate the funding caps on
residential and irrigation bills. On April 27, this request was approved, effective June 1,2010.
Page 120 Demand-Side Management 2010 Annual Report
Idaho Power Company Continued Commitment
Every year, Idaho Power enhances its commitment to providing DSM programs that offer broader
opportunities for Idaho Power's customers to manage their energy and demand use. Idaho Power also
continues its effort to make its own facilities more energy efficient and to find ways to promote energy
efficiency in its communities and its employees' lives. A review of specific efforts is listed in
the following sections.
Continued Expansion and Broad Availability of Efficiency and
Demand Response Programs
In 2010, Idaho Power broadened the portfolio of programs offered to customers. Programs continue to
add service areas where they are available to customers and continue to add new measures for customer
participation. This expansion of programs and offerings helps ensure more customers each year have the
opportunity to participate in programs. Some highlights for 2010 are as follows:
Weatherization Solutions for Eligible Customers program expanded to the Idaho counties of
Canyon, Gem, Payette, Boise, Washington, Valley, and Adams.
Idaho Power partnered with City of Boise to implement the Boise City Home Audit Project
to provide reduced priced audits for 600-700 residents.
Idaho Power was a major sponsor of Idaho's first Net-Zero Energy Home promotion in
conjunction with the St. Jude Dream Home campaign.
In June 2010, as part of the Home Products Program, Idaho Power began a showerhead
promotion program for 1.5 GPM and 2.0 GPM units and added freezers to the
program's offerings.
The successful SEE program completed a second year of operation with 300 high school and
6,000 elementary students participating.
New educational material was developed for several programs including a Healthy Homes
Guide and Energy Efficiency Kits available at local libraries.
More information was available on the Web for customers interested in energy efficiency,
including the booklet 30 Silnple Things You Can Do To Save Energy and access to
individualized Energy Tools.
Energy Efficiency Tip Sheets were developed for different sectors of commercial customers.
Custom Efficiency participants' Szrccess Stories were posted to the Idaho Power website.
Building-Code Improvement Activity
Idaho Power was supportive of the legislative effort in the Idaho State legislature to enact the 2009
IECC for implementation January 1,201 1.
Demand-Side Management 2010 Annual Report Page 121
Continued Commitment Idaho Power Com~anv
Pursuit of Appliance Code Standards
In 2010, Idaho Power provided support for efforts for national appliance standards. Letters of support
were provided to both Senator Mike Crapo and Senator James Risch pointing to the broad economic,
operational, and environmental benefits of energy efficiency to the citizens of Idaho.
Promotion of Energy Efficiency through Electricity Rate Design
Idaho Power continues to support a policy of gradually moving all customers into rates designed to
provide cost-based price signals and to encourage the wise and efficient use of energy.
In 2010, Idaho Power took a new look at its policy for how to work with new and expanding large-load
customers. A policy was established that provides service consistent with system capability, that offers a
suite of flexible services, including seasonal shaping and standby service, that provides some mitigation
of rate impacts on existing customers and that considers sustainability, economic development goals,
and environmental effects of using the company" resources. As part of this effort, in August,
the company filed to change the eligibility cap for Schedule 19 customers from 25 MW to 20 MW.
By lowering the size limit, the company can address these service issues to new large loads that may be
coming into the service area. In December 2010, under Order No. 32132, the IPUC approved
the request.
On March 1,2010, as per Order 10-064 in General Rate Case UE 213, Idaho Power implemented
mandatory time-of-use rates (TOU) for all customers on Schedule 9 Primary and Schedule 9
Transmission. With this rate change, all industrial customers on Schedule 19 and Schedule 9 P and T
across the Idaho Power service area are on TOU rates. Idaho Power also implemented a load-factor
pricing rate structure for irrigation customers on Schedule 24 in Oregon. These rate change proposals
were driven by the explicit Idaho Power objective of providing customers with cost-based price signals,
which encourage the wise and efficient use of energy.
Third-Party, Independent Verification
Idaho Power understands that credible and transparent program evaluations are critical to ensuring
maximum program performance. Independent, third-party consultants are used to provide impact and
process evaluations to verify that program specifications are met, provide viable recommendations for
program improvement, and validate energy savings achieved through Idaho Power's programs.
In 2010, process evaluations were completed by third-party consultants on nine programs, including
H&CE Program, Energy House Calls, Home Improvement Program, Residential Energy Efficiency
Education Initiative, Easy Upgrades, Building Efficiency, Custom Efficiency, Commercial Energy
Efficiency Education Initiative, and Irrigation EMiciency Rewards. Copies of these reports can be found
in Supplement 2: Evalzration.
Idaho Power uses independent, third-party contractors for QA and OSV for several programs.
The H&CE Program uses a third-party contractor to perform QA and OSV of approximately 10 percent
of completed customer projects. The Energy House Calls program contracts with third-party experts to
perform QA analysis on approximately 5 percent of homes serviced by the program. These contractors
visit the customer site within approximately one month of the energy house call to verify that the energy
efficiency measures were performed to program specifications. And the ENERGY STAR@ Homes
Northwest program uses contractors for third-party verification, ensuring that each ENERGY STAR
Page 122 Demand-Side Management 2010 Annual Report
Idaho Power Comoanv Continued Commitment
qualified home is built to ENERGY STAR standards. Another third-party contractor provides QA and
certifies each qualifying home as an ENERGY STAR home.
Throughout 2010, Idaho Power participated with NEEA to conduct several third-party evaluations.
These studies included evaluation of the DHP Pilot, Residential Lighting Market Research, Market for
Energy Efficient Electronics, Evaluation of Codes and Standards Market Progress, Northwest
ENERGY STAR Homes Northwest, and several market effects evaluations in the residential,
commercial, and industrial sectors.
The company also funds and participates in the RTF. The RTF is an advisory committee that was
established in 1999 to develop regional standards for verifying and evaluating savings from energy
efficiency programs and measures. Idaho Power uses the RTF as a source for information regarding
energy eficiency programs and measures and uses the RTF databases to provide deemed savings for a
portion of the energy efficiency measures implemented by the company's customers.
ldaho Power's Internal Energy Efficiency Commitment
Idaho Power's continued commitment toward promoting energy efficiency extends beyond encouraging,
providing incentives, and educating its customers.
Idaho Power's corporate headquarters (CHQ) participated in strategic elimination of power loads during
veak use through the FlexPeak Management program. In August, Idaho Power entered into an
ggreernent w i t h ~ n e r ~ ~ ~ to enroll the CHQ;~ Flexpeak ~ana~ement-1daho Power's
commerciaVindustria1 demand response program. EnerNOC enlists and contracts with Idaho Power's
commercial and industrial customers to voluntarily reduce their electricity use primarily during times of
Idaho Power system peaks. EnerNOC provides participants with auditing assistance, energy monitoring
software, demand reduction performance monitoring, coaching, and other related services. The
agreement with Idaho Power to enroll the CHQ was executed in early August 2010. Unlike other
program participants, Idaho Power does not receive any financial incentives to participate. By the end of
August, the company received usage data through EnerNOC's energy monitoring software and
performed CHQ site-testing to establish the amount of load available for reduction. The amount of
reduction EnerNOC commits to achieve on Idaho Power's behalf will be based on the demand reduction
available at the CHQ each week during the active program season beginning in June 201 1. EnerNOC is
obligated to achieve the reduction they nominate, or commit to, each week if Idaho Power calls an event.
EnerNOC works closely with its program participants to estimate their reduction potential accurately.
Idaho Power now has a facility reduction plan in place that could be executed at any time to reduce
electricity use if necessary.
During 2010, the company continued with the multi-year remodel and retrofit of the CHQ, completing
the second floor of the buildmg. The project included installing T-5 lighting that uses 60 percent less
energy than old lighting packages. Natural light supplemented the T-5 lighting, accomplished through
light harvesting near the exterior walls. Additionally, use of shorter 53-inch cubical partitions allowed
more daylight while reducing lighting costs. Further retrofits included occupancy and vacancy sensors in
all enclosed office and meeting spaces, low-flow toilets and automatic sink faucets in the restrooms,
and window blinds that are 60 percent opaque with a horizontal range of motion that never needs closed.
Other projects included the ongoing Payette Operations Center upgrades from T-12 to T-8 high-bay
fluorescent lighting in the garage and materials area. The Canyon Operations Center lighting retrofit
from T-12 to T-8 throughout the facility was completed in 2010. Twin Falls Operations Center's garage
and materials areas received upgrades, from T-12 fixtures to high-bay fluorescent T-8 fixtures.
Demand-Side Management 2010 Annual Report Page 123
I
I Continued Commitment Idaho Power Company
Numerous energy efficiency projects are budgeted for 201 1. The remodel of the CHQ will continue with
a focus on the first floor. A completion of the lighting retrofit at the Payette Operations Center is
planned. Though it will take several years to complete lighting retrofits in the company's sub-stations
across the service area, planning is underway in 201 1. The company is engineering a new
energy-efficient chilled water system for the CHQ with implementation planned during 2012
through 2013.
CAES Energy Efficiency Research lnitiative
The Center for Advanced Energy Studies (CAES) is a public-private technical and policy research
partnership based in Idaho Falls, and comprised of Boise State University, Idaho State University,
University of Idaho, the DOE, and Idaho National Laboratory (INL). The State of Idaho launched the
newest activity under the CAES umbrella on October 27,2010 when Idaho Governor C.L. "Butch" Otter
announced the formation of the CAES Energy Efficiency Research Initiative (CEERI).
Idaho Power was involved in the initial discussion and planning for CEERI, and joined Governor Otter
and other representatives of participating entities in signing a proclamation in support of the initiative's
formation. Signatories included Boise State University, University of Idaho, Boise Metso Chamber of
Commerce, National Resources Defense Council, Idaho Office of Energy Resources (IOER),
Idaho Innovation Council, Micron Technology, and other Idaho-based companies.
I The initiative's initial focus is in four main areas: 1) public outreach and education, 2) workforce
development, 3) college-level curriculum, and 4) researcWtechnica1 development. ldaho Power's
I involvement in CEERI enables the company to positively influence energy-efficiency education and
research. The company will also benefit from educational opportunities for Idaho Power customers and
employees and from the development of a workforce with relevant skills.
I
Sustainable Operations/Sustainability
In 2010, Idaho Power began an internal sustainability effort with a mission to promote and support
exceptional financial, environmental, and social stewardship across Idaho Power business practices.
A Sustainability Council was formed with members representing major company departments with the
expressed vision to make sustainability a corporate value. A sustainability charter containing an
operational definition, mission, vision, and objectives was drafted for review and endorsement by
executive counoil. The objectives for 201 1 include development of a sustainability plan. This plan
included internal and external reporting, and determination of baseline operating parameters for several
Idaho Power facilities, including energy use.
Green Team
During spring 2010, Idaho Power employees started an internal Green Team. The mission of the Green
Team was to champion sustainable activities by Idaho Power and its employees that promoted energy
efficiency, environmental and community stewardship, and the wise use of resources. Some of the
projects worked on during 2010 included a company-wide recycling initiative, the Refugee Community
Garden Project, a no-idling campaign, and a monthly Green Bag educational seminar effort,
Page 124 Demand-Side Management 2010 Annual Report
Idaho Power Company Appendices
This report includes five appendices. Appendix 1 contains financial information for 2010, showing the
beginning balance, ending balance, and the expenditnres for the Idaho and Oregon Riders, BPA funding,
and NEEA payments and credits. Appendix 2 also contains financial information showing expenses by
funding source for each of Idaho Power's energy efficiency programs or activities. Appendix 3 shows
participation, UC, TRC, energy and demand savings, measure life, and levelized costs for Idaho Power's
current energy efficiency programs and activities for 2010. Appendix 4 shows similar data as Appendix
3, but also includes data for past years' program performance, B/C ratios from the utility perspective,
and fsom the TRC perspectives for active programs. An addition to this year's report is Appendix 5.
This new appendix shows program savings and costs separated into Idaho Power's Idaho and Oregon
jurisdictions and by funding source,
Additional information is contained in the supplements provided in separate documents in two formats.
S21pplenlent 1: Cosf-Effectiveness contains detailed cost effectiveness information by program and
energy savings measure. Provided in Supplement 1 are the B/C ratios from the UC, TRC, RIM, and PCT
perspectives. A new table, 2010 DSMDetailed Expenses bjr Progpartl, reports expenses by funding
source and separates the company's DSM expenses by expense type, incentive expenses,
labor/administration, materials, other expenses, and purchased services. Stpplement 2: Evalzration
contains copies of various third-party evaluations and reports. A CD is attached in Supplement 2 and
contains copies of NEEA Market Effects Evalz~ations. A searchable, linked table with the title,
study manager, evaluation type, and other information included with each supplement.
- --
Demand-Side Management 2010 Annual Report Page 125
Appendices Idaho Power Company
This page left blank intentionally.
Page 126 Demand-Side Management 2010 Annual Report
Idaho Power Company Appendices-Appendix 1
Appendix 1. Idaho Rider, Oregon Rider, and NEEAfunding balances - -
1 .........................................................................................................................
2010 Funding plus Accrued Interest 34,605.272
Total 2010 Funds ............................................................................. .............................................................. 24,886,751
2010 Expenses ......................................................................................................................................... (42;479;&92)
2010 YBar-End Balance ................................................................................................................................. $ (17,59,93f)P -
2010 Beginning Balance .......................................................................................................................... $ (886,772)
2010 Funding plus Accrued Interest ......................................................................................................... 697,464
Total 2010 Funds .................... .. ................................................................................................................... (169,'3*68]
2010 Expenses ....................................................................................................................................... (1,704,367)
2010 Year-End Balance $ (t,8-- --5) -
2010 Idaho Power Contractual Obligationa ..............................................................................................
2010 Year-End Balance ............................................................................................................................. .. $ 2,391,217 -
ldaho Power shall prepay estimaled expenses quarterly, Were the amounf shall be amontzed over me rwspsclive quatter. Funding of NEEA, approved by IPUC
Order31080, dated 5112/%0. Reeondlralim W e e n the estimated expend~(ures and the actual expenditures for the quarter will be completed 30 dayg abr
the quarter end or by March 1st for yearend. Atrue-up of the varisnce will be included in the next quarlefs Invoice, not to exceed 125% otlls fiveyear total
direct funding mntrlbuUon
Demand-Side Management 2010 Annual Report Page 127
Appendices-Appendix 2 Idaho Power Company
Appendix 2.2010 DSM expenses by funding source (dollars)
I
SectorlProgram Idaho Rider Oregon Rider Idaho Power Total Program
Energy EfflolencylDemand Response
Resldential
N C Cool Credit ............. ..... $
Ductless Heat Pump Pilot ................................................................
Energy Efficient Lighting
Energy House Calls ....
ENERGY S T A R ~ H O ~ ~ S ............................ .. ...............................
Heating R Cooling Effidency Program ...............................................
Home Improvement Program ...........................................................
Home Products Program .............................. .... .................................
Oregon Residential Weatherization .................................................
Rebate Advantage ............................................................................
See ya later. refrigerator* .................................................................
Weatherization Assistance for Qualified Customers ...........................
Weatherization Solutions for Eligible Customersa ...............................
Commerclalllndustriai
Building EMciency ............................................................................
Easy Upgrad
FiexPeak Management ..
Holiday Lighting ................................................................................
Oregon Commercial Audits ...............................................................
Custom Efficien
Irrigation
irrigation Efficiency Rewards ............................. .. ........................
Irrigation Peak Rewards .................................................................... 13.096. 946
Energy Efflciency Total .................................................................... $ 38.831. 290
Market Transformation
NEEA~ ................ .. ................................................................. 2.271. 656 119. 561 0 2.391. 217
MarketTransformation Total ................................... .... ................. S 2.271.656 $ 119.561 S 0 $ 2.391. 217
Other Programs and Activitles
Residential
Residential Energy Efficiency Education initiative .................... .......... 211. 895 10. 397 0 222. 092
Commercial
Commercial Education initiative ...................................................... 65.327 3. 438 0 68, 765
Other
Energy Efficiency Direct Program Overhead ..................................... 100. 087 7. 831 9. 956 117, 874
Local Energy Efffcisncy Funds ........................................................... 238 13 0 251
Other Programs and Activities Total .............................................. $ 377, 347 $ 21, 679 $ 9, 956 $ 408, 982
indirect Program Expenses
Residential Overhead ................................ .. .................................. 132. 082 6. 941 0 139, 023
CommerciaVlndustriaVIrrigation Overhead ..................................... 143, 140 7.543 0 150, 683
Energy Efficiency Accounting and Analysis ....................................... 698. 907 37. 068 136. 833 872, 808
Energy Efficiency Advisoty Group ...................................................... 2. 651 112 0 2, 763
Special Accounting Entries ............................ ............ ........................ 22.619 1. 414 0 24, 033
indirect Program Expenses Total . 5 399, 399 $ 53, 078 $ 136, 833 $ 1,189, 175
Totals .............................. .... ................................................................. $ 42,479, 892 $ 1.704, 367 $ 1.648, 792 $ 45.832.851
Loregon Rlder balance of $2. 305 will be redassed to the ldaho Rlder In 201 1 . ' NEEA funding addressed in IPUC per Order No . 31080. dated W2110.20H annual expense expected st $3.3 rn (see foolnote. Appendix 1 for
additional information).
Page 128 Demand-Side Management 2010 Annual Report
Appendices--Appendix 3 Idaho Power Company
Appendix 3. 201 0 DSM program activity (continued)
Nominal Levelized
~ o t a l costs Savings Costs'
Annual Peak Total
Energy Demandd Measure Utility Resource
Program Participants ~tilityb ResourceS (MNhJ (Mw) Life ($/kwh) f W h )
Irrigation
Irrigation Efficiency Rewards2 . 753 projects 2,200,814 6,968,598 10,868,430 3.3 8 0.030 0.096
Northwest Energy Effkiency Al
Residential Energy Efficiency Education Initiative ............................................................... $ 222,092 $ 222.092
Commercial . . . Commercial Education inbat~ve ............................................................................................... 68,765 68,755
Other
Energy Efficiency Direct Program Overhead ......................................................................... 117,874 117.874
Local Energy Efficiency Funds ....................................... 1 project 251 251
.................................................................................................. Total Program Direct Expense $ 44643,541 $69,162,332 1m,626,3& 351.7
Indirect Program Expense 1,189,310
Total DSM Expense ................................................................................................................... $ 45,832,851
LeYelizBd Costs are based on financial inputs from ldaho Power's 2009 IRP, and calculations include line loss adjusted energy savings.
The Total Utilii Cost is all est incurred by ldaho Power to implement and manage a DSM program.
The Total Resource Cost is the total expenditures for a DSM program from the potnt of view of ldaho P m r and its customers
Summer Peak Demand is reported where program MW reduction is documented. Demand response program reductions are reported with 13% peak loss assumptions Demand Response
reduction is noncoincident.
'Custom Efficiency savings includes 20 Green Motem Rewsindparticipants totaling 55,126 kwh of annual savings not counted in project Mtals. " Irrigation Efficiency indudes 36 Green Motors participants totaling 187.965 kwh of annual savings not counted in Droiect totals. . - . .
Savings are preliminaw estimates provided by NEEA.
Page 130 Demand-Side Management 2010 ~nnual Report
Idaho Power Company Appendices-Appendix 4
Appendix 4 . DSM expense and performance 2002-2010
Savings and Demand Program Life
Total Costs Reduction Leviliked Cosll a BenefiVCost RatiosQ
Annual Average Peak Measure Total Total Energy Ener& Demand' Life Utility Resourre Total ProgramMear Parti~l~anb Otill(ys Resouroed (Wh) UUlitv Resource
I
AfC Cool Credit
2003 ....................................... 204 $ 275. 645 $ 275.645 0.0
2004 ...................................... 420 287253 287. 253 0.5
2005 .................................... 2.369 754.062 754. 062 3.1
2006 5. 389 1.235. 476 1.235. 476 6.3
2007 ................................. 13. 692 2,426. 154 2.426. 154 122
2008 ....................................... 20. 195 2.969.377 2.969. 377 25.5
2009 ....................................... 30. 391 3.451. 988 3.451. 988 38.5
2010 ....................................... 30. 803 2.002. 546 2.002.546 39.0
Total .......................................... $13,402, 500 $13,402. 500 1.11 1.11
Flexpeak Management
2009 ....................................... 33 528. 681 528.681 19.3
2010 ....................................... 60 1.902.680 1.902. 680 47.5
Total .................. .................. $ 2.431. 361 $ 2.43i. 361 1.14 1.14
lnigation Peak Rewards
2004 .......................................
2005 .......................................
2006 .......................................
2007 .......................................
2008 .......................................
2009 .......................................
2010 ..................... .. ............
Total .-
2009 ................................. ... 96 $ 202. 004 $ 451.605 409.180 0.05 18 $ 0.031 $ 0.086
2010 ....................................... 104 18923 1 439.559 364.000 0.04 20 0.044 0.103
Total ........................................ ZOO $ 391, 235 $ 891, 164 773. 180 20 $ 0.043 S 0.098 3.47 1.38
Demand-Side Management 2010 Annual Report Page 131
Appendices-Appendix 4 Idaho Power Company
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Energy Effkient Paokets
Annual Amrage Peak Measure Total Total
Energy a em and' Life Utility R ~ M - Total
Palticipants UUI~W Resourced (kwh) / a m (MW) P~ars) ($/kwh) rct~wh)
Total .......................................... 2. 925 $ 755 $ 755 155. 757 7 $ oaoi $ 0.007
Energy Efiiuient Lighting
2002 .................................... 11.619 243. 033 310. 643 3,299. 654 0.38 7 0.012 0.015 ...... 2003 ............................ .. 12. 663 314.641 484. 059 3.596. 150 0.41 7 0.014 0.021
2005 ....................................... 43. 760 73.152 107. 810 1.734.M 0.29 7 0.007 0.010
2006 ...................................... 178. 514 298.754 539. 877 6.302. 794 0.72 7 0.008 0.014
2007 ....................................... 219.739 557.646 433. 626 7.207. 439 0.82 7 0.012 0.017
2008 ....................................... 436. 234 1.018. 292 793. 265 14.309.444 1.63 7 0.011 0.013
2009 ....................................... 549.846 1.207. 366 1.456. 796 13.410.748 1.53 5 0.020 0.024
2010 ....................................... 1.190. 139 2.501. 278 3.976. 476 28.082. 738 3.21 5 0.020 0.031
Total .......................................... 2.642. 513 $6.214, 162 $&082, 552 77.943. 613 5 $ 0.018 $ 0.023 454 3.49
Energy Hwse Calls
2002 .................................. 17 26. 053 26. 053 25. 989 0.00 20 0.082 0.082
2003 ..................................... 420 167. 076 167.076 602. 723 0.07 20 0.023 0.023
..................................... 2004 1. 708 725. $81 725. 981 2.349.783 0.27 20 0.025 0.025
2005 ...................................... 891 375. 810 375. 610 1.775. 770 0.20 20 0.017 0.017
2006 ....................................... 819 336.701 336.701 771.244 0.09 20 0.035 0.035
2007 .................................... 700 336.372 67. 616 699. 899 0.08 20 0.039 0.039
2008 ....................................... 1. 099 464.379 464. 379 883. 038 0.10 20 0.045 0.045
2009 . 1. 260 569.594 569. 594 926. 875 0.11 20 0.052 0.052
2010 ...................................... 1.602 762.330 752. 330 1.198. 655 0.14 20 0.054 0.054
Total ......................................... 8 $ 3.784. 096 $ 3.515. 840 9215. 987 20 $ 0.035 $ 0.032 3.06 H
ENERGY STAP Hames
Northwest
2003 ........................... .. ... 13597 13.597
2004 .................................. 44 140. 165 335. 437 101.200 0.01 0.1 25 0.103 0.246
2005 ....................................... 200 253. 105 315. 311 415. MX) 0.05 0.4 25 0.045 0.056
2006 ....................................... 439 469. 609 602. 651 912. 242 0.10 0.9 25 0.038 0.049
Page 132 Demand-Side Management 201 0 Annual Report
Idaho Power Company Appendices..A ppendix 4
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Savings and Demand Program Life
Total Costs Reduction Lwilized Costsa BenefiffCost ~ a t i o s ~
Annual Avenge Peak Measure Total Total
Energy ema and Life ...... . . ....... . ....... ....... ....... Utility Resource "" Total
ENERGY STAR' Homes
Northwest
2007 ....................................... 303 $ 475. OM $ 400.637 629. 634 0.07 0.6 25 $ 0.055 $ 0.047
2008 .......................... ... ...... 254 302. 061 375, 007 468. 958 0.05 0.6 25 0.048 0.059
ZOOS ......................... .. .......... 474 355. 623 498.622 705. 784 0.08 1.1 25 0.039 0.055
2010 ......................... .. ......... 630 375, 605 579.495 883. 260 0.10 25 0.033 0.051
Total ........................................ 2. 344 $ 2384. 808 $ 3.120. 758 4.116. 678 25 $ 0.W $ 0.059 2.68 2.05
Heating 8 Cooling Efficiency
Program
2006 - ... 17. 444 17. 444
2007 ...................................... 4 48821 1 494989 1. 505 0.00 18 27.344 27.710
2008 ...................... .. ........... 359 473. 551 599. 771 561.44 1 0.06 18 0.073 0.092
2009 ................... .. ............ 349 478.373 764. 671 1.274. 829 0.15 18 0.034 0.054
2010 ....................................... 21 7 327. 669 1.073, 604 1.104. 497 0.10 20 0.025 0.083
Total .......................................... 929 $ 1,785, 249 $ 2.950.47 9 2.942, 362 20 $ 0.056 $ 0.092 250 122
Home Improvement Program
2008 ....................................... 282 123. 454 157, 866 317, 814 0.04 25 0.029 0.037
2iM9 ......................... ... ...... 1. 188 321. 140 550. 148 1.338. 876 0.15 25 0.019 0.032
2010 ................................. ..... 3.537 944.716 2.112. 737 3.986. 199 0.46 45 0.016 0.035
Total ........................................ 1.470 $ 444.594 $ 708. 014 1.656. 690 45 $ 0.018 $ 0.028
Home Produds Program
2007 ....................................... 9. 275 9. 275
2308 .. - ....................... .. ...... 3.034 250.860 468. 058 541. 615
2009 ...................................... 9. 499 511.313 844. 811 1.638. 038
2010 ....................................... 16. 322 832.161 1.025. 151 1.443. 580
Total .......................................... 28. 855 $ 1,603. 609 $2,347, 293 3,623, 233 15 $ 0.044 $ 0.064 2.45 I . w
Oregon Residential
Weatherization
2002 ...................................... 24 -662 23.971 4. 580 0.00 25 0.010 0.389
2003 ........................ ... ........ -943
Demand-Side Management 2010 Annual Report Page 133
Appendices-Appendix 4 Idaho Power Company
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Savings and Demand Program Llfe
Total costs Reduction Levilized Costs* BenefiWW Ratiosb
Annual *"ewe Peak Measure Total Total
Energy E n e d ema and' Llfe Utility Resource Totdl - - - = Utilitus ~esouroe~ fWl U t i l i Resource
Oregon Residential
Weatherization
2005 ..................................
2006 ......................................
2007 .......................................
2008
2009 .... .: .................................
201 0 ...................................
Total ......................................
Rebate Advantage
2003 ....................................... 73 27.372 793 99 227. 434 0.03 45 0.008 0.022
2004 ....................................... 105 62.187 178. 712 332. 587 0.04 45 O.MO 0.034
2005 ..................................... 98 46.173 158. 462 312. 311 0.04 45 0.009 0.032
2006 ....................................... 102 52. 673 140. 289 333.494 0.04 45 0.010 0.027
2007 123 89. 269 162.152 554. 018 0.06 45 0.010 0.021
2908 .................................... 107 90. 886 179. 868 463. 401 0.05 46 0.012 0.025
2009 .................... .. ............. 57 49. 525 93. 073 247. 348 0.03 25 0.015 0.029
2010 .................................. 35 39. 402 66. 142 164. 894 0.02 25 0.018 0.031
Total ........................................ 700 $ 408. 088 $ 1.011. 955 2.470. 593 25 $ 0.013 $ 0.032 8.61 3.57
See ye later. refrigerator@
2009 ...................................... 1. 661 305.402 305. 401 1.132. 802 0.13 8 0.041 O.M1
201 0 ..................... .. .............. 3.152 565. 079 565. 079 1.567. 736 8 0.054 0.054
Total 4. 813 $ 870, 481 $ 870. 480 2700. 538
WeathetWtton Solutions for -
Eligible Customers .
2006 ...................................... 16 52.807 48. I62 71.680 0.01 25 0.055 0.050
2008 ...................................... 41 162. 995 162. 995 2l1.720 0.02 25 0.059 0.059
2010 ....................................... 47 226. 425 288, 425 313. 309 0.04 25 0.056 0.056
Total ......................................... 104 $ 444. 227 $ 439. 582 596. 708 25 $ O.OYI 5 0.057 1.98 1.98
Page 134 Demand-Side Management 2010 Annual Report
Idaho Power Company Appendices-Appendix 4
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Prc .
Savlngsand Demand Program Llfe
Total Costs Reduction Leviliied Cost$ BenefitlCost Ratioso
Annual Average peak Measure Total Total
Energy Demand' Life Utility Resource Total
Partictoants USlitf Resourc~ " (kwh1 fMW) Wears) ($/kwh) ($/kwh) Utility Resource
Wmdow NC Trade Up Pilot
Total .......................................... . 3,42 0 $ 8.856. 705 $14.258. 403 22.785. 189 - - 25 $ 0.030 $ 0.048 5.24 359
WAQC-Oreqon
MO2 .....................................
2003 .......................................
2004 ........ - ...........................
2005 ............................... .- .....
2006 .....................................
2007 ......................................
2006 .................... - ................
2009 ...................................
2010 .......................................
Total
WAQCBPA Supplemental
...................................... 75 55.966 118. 255 31 1.347 0.04 25 0.013 0.028 5 2002
2003 ....................................... 57 49.895 106. 915 223.591 0.03 25 0.017 0.036
Demand-Side Management 201 0 Annual Report Page 135
Appendices-Appendix 4 Idaho Power Company
Appendix 4 . DSM expense and performance 2002-201 0 (continued)
Savings and Demand Program Life
Total Costs Reduotion Leviliied Costs* BenefItlCaSt Ratiosb
Annual Average Peak Measure ~ o t a ~ T&I Energy Energf Oemandf Life Utillty Resource ProgramPlear Total Participants UtilityF Resourced (kWh) faMw) (MW) Clears) ($/kwh) ($kwh) Utility Resource
WAQCBPA Supplemental
2003 ....................................... 4 $ 5. 764 $ 9.061 33. 976 0.00 10 $ 0.021 $ 0.033
2004 ................................ .. .. 344 $344
Total .......................................... 4 $ 6, 108 $ 9, 405 33, 976 18 $ 0.023 $ 0.035 -
Building Efliciency -
2004 ...................................... 28.821 28.821
2045 ....................................... 12 194. 066 233.149 494. 239 0.06 0.2 12 0.043 0.052
2008 ....................................... 40 374.008 463.770 704. 541 0.08 0.3 12 0.058 0.072
2007 .................................... 22 669. 032 130. 591 2.817. 248 0.32 0.5 12 0.015 0.040
2008 ............................ ........... 60 1.055.009 1.671.375 6.598. 123 0.75 1 . 0 12 0.017 0.028
2009 .................................... 72 1327. 128 2.358. 434 6.146.139 0.70 1.3 12 0.024 0.043
2010 ..................................... 70 1.509. 682 3.312. 963 10.819.598 1.24 0.9 12 0.016 0.035
Total ...................................... 276 $ 5.157. 747 $ 8.197. 104 27.579. 888 12 $ 0.021 $ 0.034 4.52 2.69
Easy Upgades
2006 ...................................... 31.819 31.819
2007 ....................................... 104 71 1. 494 1.882. 035 5.183. 640 0.59 0.8 12 0.015 0.040
2008 ....................................... 666 2. 992261 10.096. 627 25.928.391 2.96 4.5 12 0.013 0.043
2009 .................... .. ............... 1.224 3.325. 505 10.076. 237 35.171. 627 4.02 6.1 12 0.011 0.032
2010 ....................................... 1. 535 3,974. 410 7.655. 397 35.824. 463 4 09 7.8 12 0.013 0.024
Tatal .......................................... 3. 529 $7.061. 079 $22.086. 718 66.283. 658 12 $ 0.012 % 0.038 7.93 2.94
Holiday L~ghting
Page 136 Demand-Side Management 201 0 Annual Report
Idaho Power Company Appendices-Appendix 4
Appendix 4 . DSM expense and performance 2002-201 0 (continued)
Savings and Demand Program Life
Total Costs Reduction Levillzed Costsa BenefiUCost Ratiosb
Annual Average Peak Measure Total Total
Energy Ene'94 ema and' Life ....-. ...... ..-... . . . ........ ...... Utility Resource Total
ProgramlYear Participants Utilityr Resourced Utillty Resoul
Oregon Commercial Audits
2002 ............................. 24 $ 5200 $ 5. 200
2003 .................................... 21 0 4. 000
2004 ................... ... ........... 7 0 0
2005 .................................... 7 5.450 5. 450
2006 ....................................... 6
2007 ................................. .... 1. 981 1.381
2008 ....................................... 58 56
2009 ....................................... 41 20.732 20. 732
2010 ................................... 27. 5. 049 5. 049
Total .......................................... 128 $ 38. 470 $ 42.47"
Oregon School Eftidency
2005 ....................................... 86 86
2006 .... 6 24. 379 89. 771
Custom Efkiency
2003 .......................................
2004 - .................. ....... ......
2005 - ..................................
2006 .....................................
2007 .......................................
2008 .......................................
2009 ............................ ... .....
2010 .......................................
Irrigation Efficiency
2003 ...................... .. ............. 2 $ 41.089 $ 54.609 36.792 0.00 0.0 15 $ 0.106 $ 0.141
2004 ...................................... 33 120. 808 402. 978 802. 812 0.09 0.4 15 0.014 0.048
Demand-Side Management 201 0 Annual Report Page 137
Appendices-Appendix 4 Idaho Power Company
Appendix 4. DSM expense and performance 2002-2010 (continued)
Savings and Demand Program Life
Total Costs Reduction Levilized Costs' BwnefiffCost F4atiosb
Annual Avwage Peak Measure ~otal Total Energy Enersd Demandf Llfe Utility Resource Total
,.nn,\
Irrigation Efficiency
2005 .......................................
2 m .....................................
2007 ......................................
2008 ......................................
2009. ......................................
2010 .......................................
Building Operator Training
2003 ....................................... 71 5
2004 ....................................... 26
2005 ...................................... 7
Total .......................................
Commercial Education lniti9tim
2005 .......................................
2006 ......................................
2007 ................................ ....
2008 .......................................
2009 .......................................
2010 .......................................
Total ....................................... $ 297,070 $ 291,070 - - - - - - Distribution Eificiency
2005 ....................................... 21,552 43,969
2006 ....................................... 24,306 24,306
Page 138 Demand-Side Management 2010 Annual Report
Idaho Power Company Appendices-Appendix 4
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Savings and Demand Program L M
Total Costs Redudion Leviliied Costsa BenefitlCost ~atios'
Annual Average Peak Measure rota1 Total
Energy E n e d ema and' Life Utility Resource Total
Near Participants UtiliK ~esource~ (kwh) (MWI (Years) ($/kwh) ($/kwh\ Utilitv Resour
Distribution Efficiency
2008 ................................. $ 4. 913 $ .I. 913
Total .......................................... $ 52.9 32 $ 75. 349
DSM Direct Pmgram Overhead
2007 ....................................... 56. 909 56. 909
2008 ....................................... 169.911 169. 911
2009 .................................... ... 164.957 164. 957
201 0 ....................................... 117. 874 117. 874
Total ...................................... $ 509. 651 $ 509,651
Other CgRD and CRC BPA
Total .......................................... $ 495. 654 $ 495. 654
Resldentiai Energy Effiuency
Educaton lni&tive
Total .......................................... $ 630. 887 $ 630. 887 ..-. ..
Solar 4R Smools
2009 ............................. .......... 42. 522 45.522
Total .......................................... $ 42. 522 $ 45. 522
DernandSide Management 201 0 Annual Report Page 139
Appendices-Appendix 4 Idaho Power Company
Appendix 4. DSM expense and performance 2002-2010 (continued)
Savings and Demand - - Program Life
Total Costs Reduction Levllized Costs' BenefiffCost ~ a t i o s ~
Annual Average Peak Measure Total Total Energy Energye ema and' Life Utility Resource Total
Utllitv h,ou--
Local Energy Efficiency Funds
NEEA
2002 ......................... ... ....... $1,286,632 $ 1,286,632 12,925,450 1.48
2003 ....................................... 1,292,748 1,292,748 11,991.580 1.37
2004 ..................................... 1,256.61 1 1,256,611 13,329,071 1 52
2M)5 ....................................... 476.891 476,891 16,422,224 1.87
2006 ...................................... 930.455 930,455 18,597,955 2.12
2007 ....................................... 893,340 893,340 28,601,410 3.27
2008 ....................................... $42.014 942,014 21.024.729 2.40 6
2009 .................................... 968,263 968,263 10,702.998 1.22 8
2010 ...................................... 2,391.217 2,391.217 15,334,073 1.75 9
Total ...................................... $10,438,170 $ 10,438,170 148,929,041 - -
Consumer Electronic Initiative
2009 ....................................... 160,762 160,762
Page 140 DemandSide Management 2010 Annual Report
Idaho Power Company Appendices-Appendix 4
Appendix 4 . DSM expense and performance 2002-2010 (continued)
Savings and Demand Program Ufe
Total Costs Reduction Levilked Costs" Benefiffw WDS'
Annual A-we peak Measure Total Total
........ . fl Energy .... Ener& Demand Life Utility Resource Total
.. (MW) Wears) ($/kwh) ($/kwh) Utillb Resource
2006 ...................................... $ 11.174. 181 $ 20.950. 111 67.026. 303 7.65 44.4
2007 ....................................... 14.896. 816 26.182. 014 91.145. 357 10.40 585
2008 ....................................... 20.213. 215 44.771. 182 128.508. 579 14.61 74.9
2009 ..................................... 33.821. 062 53.090. 852 143.146. 364 16.15 236.6
2010 ....................................... 44.643. 541 69.162. 333 187.626. 344 21.23 357.7
TO- . . ... $139.598.124 $ 234.893.146 710.079.205
Indirect
2002 .......................................
2003 .......................................
2004 .......................................
2005 .......................................
2006 .......................................
2007 .......................................
2008 ....................................
2009 ......................................
2010 .....................................
Total ......................................... $ 8 5 4 4,677,
2002 ....................................... $ 3 7 5 2,061.
Total 2002-2010 ........................ $63.596. 492
Demand-Side Management 2010 Annual Report Page 141
Appendices-Appendix 4 Idaho Power Company
End nates:
' Levelized Casts are based on financial inputs from IPC's 2009 IRP, and Oiculations include line low adjusted energy savings.
a Program life BIC ratios are provided far active pmgams aniy.
'The Total Utility Cwt is all cost incurred by IPC to implement and manage a DSM program.
The Total Resource Cost is the total expenditures for a DSM program from the point of view of IPC and its customen as a whole.
"Average Demand =Annual Energyl8.760 annual houn.
'Peak Demand is reported for programs that directly reduce lwd or measure demand reductions during summer peak season. Peak demand reduction far demand response programs is iepoited at the generation level
assuming 13% peak iine losses and is nonzoincident.
I Peak MN acnreved oasco 07 ma-week o m red.Zlon schea. e
Us ty cos* reflens co ec'ca tunas an pre,.tods o m oan wte-offs
Utility cost reflects only audit and administration costs: there was no further activity in 2006. ' Levelized cost calculation includes bad loan write-off expense and funds collected from previously written off loans.
Beginning in 2005. BPA funds were no longer applied to CAP agency payments. ' Oregon statutory program. The company does not monitor customer implementation of audit recommendations and thus dws not estimate savings for this program. Audit expense not involving outside conbactor services
are booked to general customer service. ' Measure life is weighted life (based on energy savings) of custom option (15 years) and menu options (5 years).
'Savings were adjusted by NEEA in 2010.
Savings are preliminary estimates provided by NEW.
Page 142 Demand-Side Management 2010 Annual Report
Idaho Power Company Appendices-Append% 5
Appendix 5.201 0 DSM program activity hy state jurisdiction
Idaho Oregon
Demand Demand
Reduotion/ Redudionl
Annual Energy Arrnual Energy
Participants UtilityCosts Savings Participants Utility Costs Savings s .............................................. . . 30.482 homes $ 1.928. 447 38.6
Irrigation Peak Rewards .............................................. 2. 005 m i c e points 13.144. 261 245.5
Flexpeak Management 56 sites 1.807. 527 36.1
.....
33 sefvice points 186.565 4 2
4 sites 95. 153 11.4
Residential I
Dudless Heat Pump Pilot ............................................
Energy Efficient Lighting ..............................................
Energy House Galls .....................................................
ENERGY STAR@ Homes Northwest ............................
Heating &Cooling Efficiency Fmgram .........................
Home Improvement Program ......................................
Home Products Program .............................................
Oregon Residential Weatherization .............................
Rebate AdMntage .....................................................
See y later, refrigerators ............................................
Weatherimtion Assistance for Qualified Customers ....
Weatherizabon Solutions for Eligible Customers .........
1M h o r n
1.171. 016 bulbs
1. 525 homes
630 homes
212 homes
3. 537 homes
16. 061 appliancedfD4ures
0 home
30 homes
3.070 refigeratorsMeezem
373 homes/nonprofits
47 homes
3 homes
19.129 bulbs
77 homes
0 homes
5 homes
0 hwnes
261 a p p l i i n ~ u r e s
1 home
5 homes
82 refrigerators/freezers
27 homestnon-profits
0 homes
Commercial
Building Efliciency ....................................................... 6 projeots 1. 466256 20.552. 135 2 projects 43. 426 267.463
Easy Upgrades ............................................................ 1.4 87 projects 3.862.653 35.200. 511 48 projects 111. 757 623.952
Holiday Lighting ........................................................... 25 projects 45. 818 248.865 0 projects 316 0
Oregon Commercial Audits ......................................... 0 audits 0 0 22 audits 5. 049 0
Total .............................. ................................................... .............. ...,.,.,,..,,... $ 5,374. 715 46.001. 511 $ 160.5 48 891.415
Industrial
Custom Eflciency 204 projects 8.060. 252 65.148.471 19 projects 717.873 6.431.604
Total ....................................................................................................................................... $ 8,060, 252 65,148. 471 $ 717. 873 6.431, 604
Demand-Side Management 2010 Annual Report Page 143
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