20120410notice_of_application_order_no_32512.pdf

Office of the Secretary
Service Date
April 10,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR A )CASE NO.IPC-E-12-15
DETERMINATION OF 2011 DEMAND-SIDE )
MAI’AGEMENT EXPENDITURES AS )NOTICE OF APPLICATION
PRUDENTLY INCURRED )
)NOTICE OF
)MODIFIED PROCEDURE
)
________________________________
)ORDER NO.32512
On March 15,2012,Idaho Power Company applied for an Order establishing that it
prudently incurred $42,641,706 in demand-side management (“DSM)expenses in 2011.
Application at I.The Conipany asks the Commission to process the Application under Modified
Procedure.Id.at 7.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company says it has implemented or
manages a wide range of opportunities for all customer classes to participate in DSM activities,
consistent with the Commission’s direction that the Company pursue DSM programs to promote
energy efficiency.The Company says it uses DSM programs to (1)provide customers with
programs and information to help them manage their energy usage,and (2)achieve prudent cost-
effective energy efficiency and demand response resources to meet the Company’s electrical
system’s energy and demand needs.Idaho Power consults with an Energy Efficiency Advisory
Group that provides a broad range of recommendations,including input on new program
proposals,modifications to existing programs,and overall expenditures of DSM funds.Id.at 2.
YOU ARE FURTHER NOTIFIED that in this case,Idaho Power seeks a
determination that it prudently incurred $35,623,321 in Idaho Energy Efficiency Rider expenses
and $7,018,385 in custom efficiency incentive expenses,for a total of $42,641,706 in DSM
related expenses.The Company notes that since the Energy Efficiency Rider was implemented
in 2002,Idaho Power has steadily increased the breadth and funding level of its DSM activities.
The Commission found the Company had prudently incurred cost-effective DSM-related Rider
expenses of $29 million from 2002 and 2007.Id.,citing Order Nos.30740 and 31039.
Additionally,the Commission approved DSM-related Rider expenses of $50.7 million from
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32512 1
2008 and 2009.Id.,citing Order No.32113.Further,the Commission found the Company
prudently incurred cost-effective DSM-related Rider expenses of $41.9 million in 2010.Id.,
citing Order No.32331.
YOU ARE FURTHER NOTIFIED that the Application says that in 2011,the
Company continued its DSM programs to increase participation and facilitate energy savings.
The Company currently offers 17 energy efficiency programs (16 of which are cost-effective;the
Home Improvement Program is not),3 demand response programs (all of which are cost-
effective from a long-term perspective;the A/C Cool Credit program was not cost-effective for
2011,however),and several educational initiatives.It also offers savings to customers through
market transformation programs.Id.at 3-4.The Company notes that overall,energy savings
from Idaho Power’s efficiency activities in 2011 totaled 179,424 MWh.Id.at 3.
YOU ARE FURTHER NOTIFIED that the Application attaches the Company’s 2011
DSM Annual Report.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.Id.at 5.The Company uses four cost/benefit 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.Id.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.Id.The Report contains specific information for each program,including its
2011 activities,a section on customer satisfaction and evaluations providing an overview of
process,impact,and market effect evaluations.Id.at 6.
YOU ARE FURTHER NOTIFIED that the Application says that independent,third-
party consultants provide impact and process evaluations to verify that program specifications
are met,recommend improvements to the programs,and validate program-related energy
savings.Id.at 7.During 2011,impact evaluations were completed on eight programs and
process evaluations were completed on two programs.Third-party consultants conducted eight
of the evaluations.Id.
YOU ARE FURTHER NOTIFIED that,based on the information provided with its
Application,Idaho Power requests that the Commission issue an Order designating the
Company’s expenditure of $42,641,706 in 2011 as prudently incurred DSM expenses.Id.at 8.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32512 2
NOTICE OF MODIFIED PROCEDURE
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 Julia A.Hilton
Idaho Public Utilities Commission Lisa D.Nordstrom
P0 Box 83720 Idaho Power Company
Boise,Idaho 83720-0074 P0 Box 70
Boise,ID 83707
Street Address for Express Mail:E-Mail:jhiltonidahopower.com
lnordstrom@,idahopower.corn
472 W.Washington Street
Boise,ID 83702-59 18 Darlene Nemnich
Greg Said
Idaho Power Company
P0 Box 70
Boise,ID 83 707-0070
E-mail:[e-mail]
[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”
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32512 3
icon,and complete the comment form,using the case number as it appears on the front of this
document.These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTI-IER 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
www.puc.idaho.gov by clicking on “File Room”and then “Electric Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and 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 this matter 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.
IT IS FURTHER ORDERED that Idaho Power may file reply comments (if
necessary)within 14 days after the initial comment period.
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NOTICE OF MODIFIED PROCEDURE
ORDER NO.32512 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2012.
ATTEST:
MACK A.R DFO,CMMISSIONER
ARSHA H.SMITH,COMMISSIONER
Jean D.Jewell
Commission Secretary
0:1PC-E-12-I 5kk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32512 5