20110426notice_of_application_order_no_32232.pdf

Office of the Secretary
Service Date
April 26,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )CASE NO.IPC-E-1 1-05
PRUDENCY DETERMINATION OF 2010 )
ENERGY EFFICIENCY RIDER )NOTICE OF APPLICATION
EXPENDITURES )
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.32232
YOU ARE HEREBY NOTIFIED that on March 15,2011,Idaho Power Company
filed an Application requesting a Commission Order establishing that its expenditures of
$42,479,692 in Energy Efficiency Rider funds in 2010 were prudently incurred expenses.
Consistent with the Commission’s instructions that Idaho Power should pursue demand-side
management programs,Idaho Power has implemented or manages a wide range of opportunities
for all customer classes to participate in demand-side management (DSM)and energy efficiency
programs.The Company’s Application states its objectives are to (1)achieve all prudent cost-
effective energy efficiency and demand response resources to meet its electrical system’s energy
and demand needs and (2)provide customers with programs and information to help them
manage their energy usage.Application,p.2.Idaho Power consults with an Energy Efficiency
Advisory Group,formed in May 2002 that provides a broad range of recommendations,
including input on new program proposals,modifications to existing programs,and overall
expenditures of Rider funds.
YOU ARE FURTHER NOTIFIED that the Company states its expenditures on DSM
related activities in 2010 increased to $45.8 million,compared to expenses of approximately $35
million in 2009 and $21 million in 2008.Of the total amount,approximately $42.5 million were
Rider funded expenses.Application,p.4.
YOU ARE FURTHER NOTIFIED that since the Energy Efficiency Rider was
implemented in 2002,Idaho Power has steadily increased the breadth of its DSM and energy
efficiency programs,as well as the level of funding for the programs.Between 2002 and 2007,
the Commission found that the Company had prudently incurred cost-effective DSM-related
Rider expenses of $29 million.Application,p.2 citing Order Nos.30740 and 31039.In 2008
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32232 1
and 2009,the Commission approved DSM-related Rider expenses of $50.7 million.Order No.
32113.
YOU ARE FURTHER NOTIFIED that the Application states that the Company in
2010 continued to expand its DSM programs to increase participation and energy savings.The
Company currently offers 16 energy efficiency programs,3 demand response programs,several
educational initiatives,and offers savings to customers through market transformation programs.
Application,p.3.Overall,energy savings from the total efficiency activities in 2010 totaled
187,626 MWh,an increase of 31%over the energy savings achieved in 2009.The demand
response programs resulted in a total load reduction of 336 MW in 2010,compared with a
reduction of 218 MW in 2009 and 61 MW in 2008.Application,p.3.
YOU ARE FURTHER NOTIFIED that the Company attached its 2010 DSM Annual
Report to the Application.The Report provides detailed cost-effectiveness information by
program and energy savings measures as well as detailed financial information separated by
expense category and jurisdiction.The Company uses four analyses to determine cost-
effectiveness of the programs:the total resource cost perspective,the utility cost perspective,the
participant cost perspective,and the ratepayer impact measure.The Report also contains an
evaluation section that includes the Company’s evaluation plans,copies of completed program
evaluation reports,research reports,and reports completed by the Company or third parties.The
Report contains specific information for each program,including its 2010 activities,a section on
customer satisfaction and evaluations providing an overview of process,impact,and market
effect evaluations.
YOU ARE FURTHER NOTIFIED that the Application states that 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 the programs.During 2010,third party consultants provided
evaluations on nine programs,including the heating and cooling efficiency,energy house calls,
home improvement program,building efficiency,custom efficiency,and irrigation efficiency
programs.Based on the information provided with its Application,Idaho Power requests that the
Commission issue an Order designating the Company’s expenditure of $42,479,692 in Energy
Efficiency Rider funds in 2010 to be prudently incurred expenses.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32232
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure,IDAPA 31.01 .01.201-204.The Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or in opposition with the Commission within
sixty (60)days from the service date of this Notice.The comment must contain a statement of
reasons supporting the comment.
YOU ARE FURTHER NOTIFIED that the Company and other interested parties
have fourteen (14)days after the initial comment period to file reply comments.
YOU ARE FURTHER NOTIFIED that persons desiring a hearing must specifically
request a hearing in their written comments.Written comments concerning this Application may
be mailed to the Commission and Idaho Power at the addresses reflected below:
Commission Secretary Jason B.Williams
Idaho Public Utilities Commission Lisa D.Nordstrom
P0 Box 83720 Idaho Power Company
Boise,Idaho 83720-0074 P0 Box 70
Boise,ID 83707-0070
Street Address for Express Mail:E-Mail:jwillianisidahopower.coni
lnordstrom(4idahopower.corn
472 W.Washington Street
Boise,ID 83702-5918 Darlene Nemnich
Greg W.Said
Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:dnemnichidahopower.com
[e-mail]
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Comments and Questions”
icon,and complete the comment form,using the case number as it appears on the front of this
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32232 3
document.These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices or on the Commission’s web site at
by clicking on “File Room”and then “Electric Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company’s Application for a prudency
determination of 2010 Energy Efficiency Rider expenditures be processed by Modified
Procedure,IDAPA 31.01.01.201-204.Persons interested in submitting written comments in this
matter must do so within 60 days from the service date of this Notice,and may file reply
comments within 14 days after the initial comment period.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32232 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 201 1.
PAUL KJELLA E PRESIDENT
MACK A.REDFORD.COMMISSIONER
6TL Li iL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
I I
Jean D Jee11
Commission Secretary
bIs/O:IPCEi 1-O5ws
NOTICE OF APPLICATION
NOTICE OF MODIFIEI)PROCEDURE
ORDER I’O.32232