20130110notice_of_application_order_no_32713.pdf

Office of the Secretary
Service Date
January 10,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-12-29
AUTHORITY TO TEMPORARILY SUSPEND )
ITS A/C COOL CREDIT AND IRRIGATION ) NOTICE OF APPLICATION
PEAK REWARDS DEMAND RESPONSE )
PROGRAMS ) NOTICEOF
) INTERVENTION DEADLINE
1
) NOTICEOF
) PIUCHEARING CONFERENCE
1
) ORDER NO. 32713
On December 21, 2012, Idaho Power filed an Application seeking Commission
authorization to "temporarily suspend" its AIC Cool Credit and Irrigation Peak Rewards demand
response programs. The A/C Cool program allows the utility to periodically "cycle" the central
air conditioning units of participating residential customers during the summer months of June,
July, and August. See tariff Sch. 81. The Peak Rewards program allows the utility to turnoff the
irrigation pumps of participating irrigation customers for a limited number of hours during the
three summer months. See tariff Sch. 23. These two voluntary programs are designed to reduce
loads during summertime peak-hour demand. Customers participating in these two programs are
compensated with billing credits. Idaho Power instituted these programs when it determined it
was "more cost-effective to utilize demand response programs rather than build a simply-cycle
peaking resource" to meet summertime peak-hour demand. Application at 3.
NOTICE OF APPLICATION
A. The Need for Demand Response Programs
YOU ARE HEREBY NOTIFIED that in its Application, the Company reports that its
2013 Integrated Resource Plan (IRP) shows that the peak-hour projected loads for the summer
months does not exceed the Company's generation resources. More specifically, the Company
maintains that its current IRP does not show "a peak-hour deficit until July 2016 and therefore
[there is] no need for near-term peak-hour resources like" the A/C Cool and Irrigation Peak
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PFEHEARING CONFERENCE
ORDERNO. 32713 1
Reward programs. Id. at 2-3. Consequently, the Company requests that it be allowed to
temporarily suspend these two demand response programs for the 2013 season (including the
billing credits)' while the Company works with stakeholders to re-assess the programs so they
can become effective prior to the 2014 summer season. Id. at 5.
YOU ARE FURTHER NOTIFIED that the Company envisions using a collaborative
approach with interested stakeholders to review changes to the two programs during calendar
year 2013. The Company would file an application with the Commission to reactivate the
programs prior to the summer of 2014. Application at 6. "However, should the Commission
deny the Company's request to suspend the two programs through an Order issued by March 1,
201 3, the Company stands ready to operate the programs in the summer of 201 3." Id. If the
Commission approves the temporary suspensions, the Company would adjust its tariff Schedule
23 (Peak Rewards) and Schedule 81 (A/C Cool) to show that the customer incentive payments
would be reduced to zero, no new program participants would be accepted in 2013, and that
Idaho Power would not institute any load control events for either program in 201 3. Id. at 6-7.
B. Costs and Savings
YOU ARE FURTHER NOTIFIED that the Company has included prefiled direct
testimony in support of its Application. In 2012, Idaho Power states that it spent approximately
$5.5 million on the A/C Cool program and approximately $12.3 million on the Irrigation Peak
Rewards program. Drake at 13, 19. Company witness Theresa Drake asserts that temporary
suspension of the A/C Cool program would allow the Company to save approximately $749,000
in payments to participating customers. Drake at 16. The Company does not anticipate
removing any of the A/C load control devices but recognizes that customers may elect to no
longer participate in the program. In such cases, the Company calculates that approximately
15% of customers may elect to have their devices removed at a cost of approximately $85 per
device. Consequently, the Company calculates removal costs in 2013 may be about $425,000.
Id. at 14-15.
YOU ARE FURTHER NOTIFIED that despite the savings, the Company also
anticipates spending approximately $650,000 on the A/C Cool program in 2013 for customer
I In the AIC Cool program, customers receive a monthly billing credit of $7.00 for each of the three summer months.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 3271 3 2
service inquiries, maintenance on the devices, customer service for program participants, and
maintaining access to the data bases. Id. at 14. Additionally, the Company will be responsible
for "software and license fees for the AM1 switches." Id.
YOU ARE FURTHER NOTIFIED that if the Irrigation Peak Reward program is
suspended, the Company estimates it would spend between $600,000 and $900,000 in program-
related expenses to keep the load control devices operational. Drake at 19. By suspending the
two programs for 2013, the Company estimates a savings of about $1 1.75 million which will
"result in a direct customer benefit recognized in the 20 13 -20 14 PCA." Drake at 22.
YOU ARE FURTHER NOTIFIED that the Company requests that its Application be
processed under Modified Procedure and that the Commission suspend the two programs no later
than March 1, 201 3. The Company proposes to individually notify customers participating in the
two programs. The customer notice letter also advises customers that the Company has filed an
Application with the Commission and that the Application and accompanying documents can be
reviewed at the offices of the PUC or Idaho Power or on their respective web sites. See
Application, Atch. 2.
YOU ARE FURTHER NOTIFIED that the Company's Application and supporting
testimony are available for public inspection on the Commission's web site at
wwtv.puc.idaho.rr;ov by clicking on "File Room" and then "Electric Cases" and scrolling down to
the case number that appears on the first page of this Order.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code $5 61-502, 61-503, 61-507, 61-520, 61-523, and 61-622. The Commission may
enter any final Order consistent with its authority under Title 61.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure
72 and 73, IDAPA 3 1 .O1 .01.072 and -.073. Persons intending to participate at the hearing must
file a Petition to Intervene on or before January 22, 2013. Persons desiring to present their
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 327 13 3
views without parties' rights of participation and cross-examination are not required to intervene
and may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Idaho Power's representatives in this matter:
Lisa D. Nordstrom Courtney Waites
Regulatory Dockets Tim Tatum
Idaho Power Company Idaho Power Company
PO Box 70 PO Box 70
Boise, ID 83707-0070 Boise, ID 83707-0070
E-mail: lnordstrom@idaliopow.:er.com E-mail: cwaites~??idahopower.com -
ttatumir~idahopower.co~n
NOTICE OF PREHEARING CONFERENCE
YOU ARE FURTHER NOTIFIED that the Commission will convene a prehearing
conference in this matter to commence at 1:30 P.M. ON TUESDAY, JANUARY 29,2013 AT
THE COMMISSION'S HEARING ROOM, 472 WEST WASHINGTON STREET,
BOISE, IDAHO [phone]. The purpose of the prehearing conference is to allow the
parties to advise the Commission on the appropriate manner to process this case and to discuss
other procedural issues.
On January 7,201 3, the Idaho Irrigation Pumpers Association, Inc. filed a Petition
to Intervene and Protest to Modified Procedure. The Petition states that the Irrigators have a
direct and substantial interest in this proceeding and intend to participate as a party. This
intervenor is represented by the following for purposes of service:
Eric L. Olsen Anthony Yankel
Racine, Olson, Nye, Budge & 298 14 Lake Road
Bailey, Chartered Bay Village, OH 44140
PO Box 1391 E-mail: tony/ij),vanltel .net
Pocatello, ID 83204- 139 1
E-mail: elo($racinela~v.net
We find that based upon the Petition, intervention by the Irrigators would serve the purpose of
intervention as described by Rule 74 of our Rules of Procedure, IDAPA 3 1 .Ol .O1.074.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted according to the Commission's Rules of Procedure, IDAPA 3 1 .O 1 .01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 327 1 3 4
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
rnay ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail: secretary@,puc.idaho.gov
O R D E R
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than January 22,201 3.
IT IS FURTHER ORDERED that the Petition to Intervene filed by the Idaho
Irrigation Pumpers Association, Inc. is granted.
IT IS FURTHER ORDERED that the Commission shall convene a prehearing
conference in this matter on January 29, 2013, to discuss how this matter should be processed
and other preliminary matters.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 3271 3 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /Q"
day of January 20 1 3.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 3271 3 6