20110929final_order_no_32368.pdf

Office of the Secretary
Service Date
September 29,201
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF IDAHO POWER COMPANY FOR )CASE NO.IPC-E-11-16
APPROVAL OF ITS ENERGY EFFICIENCY )
INCENTIVE AGREEMENT WITH THE )IDAHO OFFICE OF ENERGY RESOURCES )ORDER NO.32368
________________________________________________________________________________________
)
On August 10,2011,Idaho Power Company applied to the Idaho Public Utilities
Commission for an Order approving the Company’s July 21,2011 Energy Efficiency Incentive
Agreement with the Idaho Office of Energy Resources (“OER”).On August 31,2011,the
Commission issued a Notice of Application and Notice of Modified Procedure.See Order No.
32342.Staff,the Idaho Conservation League (ICL),and OER filed comments.
The Commission,having reviewed the Company’s Application and Agreement,the
comments,and the other matters of record,makes the following findings and conclusions and
enters its Order approving the Agreement,effective July 21,2011.
FINDINGS OF FACT
Idaho Power and OER entered the Agreement effective July 21,2011,subject to
Commission approval.The Agreement states that OER has approximately $9.6 million in
federal stimulus funding available for its public school,K-12 Energy Efficiency Project (the “K
12 Project”)over the next 12 months.Idaho Power,on the other hand,offers demand side
management (DSM)energy efficiency programs that include incentive payments to customers
who install qualifying energy efficiency measures.The Agreement sets parameters allowing for
the accumulation and reinvestment of Idaho Power’s incentive payments for qualified energy
efficiency projects implemented by OER’s K-12 Project.The Agreement will allow the parties
to maximize OER’s federal stimulus funds and Idaho Power’s energy efficiency incentives and
enable OER’s efficiency initiatives to benefit Idaho Powefs public school customers when
stimulus funds are no longer available.
The Agreement contemplates that OER will invest federal stimulus funds into energy
efficiency projects for Idaho Power’s public school customers.Idaho Power then will determine
whether the projects qualify for incentive payments under three Company DSM energy
efficiency programs:the Custom Efficiency,Easy Upgrades,and Building Efficiency programs.
ORDER NO.32368 1
The Company will treat OER like any other entity that might apply for incentives from these
programs,and it will evaluate whether an OER-funded project qualifies for incentive payments
according to each DSM program’s existing rules.
Under the Agreement,Idaho Power will pay its incentives for efficiency measures
installed through OER’s K-12 Project into a dedicated fund.These funds will be earmarked for
use in additional cost-effective energy efficiency measures for Company customers identified by
the OER K-12 Project.OER may use up to 10%of these funds to reimburse its reasonable and
prudent administration costs associated with the reinvestment of incentive payments into cost-
effective energy efficiency programs.
The parties expect the Agreement will enable them to accomplish a higher level of
energy efficiency than either party could achieve with its respective programs alone.
We believe leveraging incentive dollars for this purpose represents an opportunity to
pursue additional energy efficiency projects within Idaho’s school buildings.This approach
allows OER to utilize recently completed scoping audits to seamlessly continue efforts to
implement cost-effective energy efficiency measures.Ultimately,we see this decision resulting
in a reduction of energy consumption that will benefit all customers within Idaho Power’s
service territory.
Based on the above,the Commission finds that the Agreement is just and reasonable
and in the public interest.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Idaho Power Company,an electric utility,and
the issues presented in this case pursuant to Idaho Code,Title 61,and the Commission’s Rules of
Procedure,IDAPA 3 1.01.01.000 etseq.
ORDER
IT IS HEREBY ORDERED that the Idaho Power’s Application is granted.The
Commission approves the Agreement.As the Agreement was not effective until July 21,2011,it
applies only to projects implemented on or after that date.When the Company evaluates
whether an OER-funded project qualifies for a DSM program incentive payment,the Company
must use the same criteria it would use to evaluate any other entity’s project.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
ORDER NO.32368
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2011.
MACK A.REDFORD,COMMISSIONER
dL44
MARSHA H.SMITH,COMMISSIONER
ATTEST:
/1 0 /7(7
/
Jn D.JewellO
Commission Secretary
O:IPCEI I 16kk2
ORDER NO.32368 3