20130131notice_of_workshop_order_no_32732.pdf

Office of the Secretary
Serv~ce Datc
January 3 1 , 201 3
BEFOm 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 IRFUGATION ) NOTICE OF
PEAK REWARDS DEMAND RESPONSE ) SETTLEMENT WORKSHOP
PROGRAMS 1
) ORDER NO. 32'732
On December 21, 2012, Idaho Power filed an Application seeking Commission
authorization to "temporarily suspend" its N C Cool Credit and Irrigation Peak Rewards demand
response programs for 2013. The N C 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 Irrigation 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 in the three summer months. ldaho 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. The Company initially requested that the Commission issue its
Order approving the suspension no later than March 1, 20 13. Application at 1, 8.
On January 10, 2013, the Commission issued a Notice of Intervention and Notice of
Prehearing Conference. Timely Petitions to Intervene were filed by the Idaho Irrigation Pumpers
Association, Inc. (the Irrigators); Idaho Conservation League (ICL); and Snake River Alliance
(SRA). The Commission granted these Petitions to Intervene. See Order Nos. 32725, 32718,
327 13. On January 28, 201 3, the Commission issued its Notice of Parties. On January 29, 201 3,
the Commission convened a prehearing conference in this matter.
BACKGROUND
A. The Application
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
NOTICE OF SETTLEMENT WORKSHOP
ORDER NO. 32732
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 [to employ] peak-hour [load reduction] resources like" the AIC and Irrigation
programs in 201 3. 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 develop and review changes to the two programs during
calendar year 20 13. "However, should the Commission deny the Company's request to suspend
the two programs . . ., the Company stands ready to operate the programs in the summer of
20 13." Application at 6. If the Commission approves the temporary suspensions, the Company
would adjust its tariff Schedule 23 (Irrigation) and Schedule 81 (AIC) to show that the customer
incentive payments would be reduced to zero, no new program participants would be accepted in
20 13, and that Idaho Power would not initiate any load control events for either program in 201 3.
Id. at 6-7.
B. Projected Costs and Savings
YOU ARE FURTHER NOTIFIED that the Company has included prefiled direct
testimony in support of its Application. In 2012, Idaho Power witness Theresa Drake states that
the Company spent approximately $5.5 million on the A/C program and approximately $12.3
million on the Irrigation program. Drake at 13, 19. She asserts that temporary suspension of the
A/C program would allow the Company to save approximately $749,000 in payments to
participating customers. Drake at 16. At the prehearing conference, the Company disclosed that
temporary suspension of the Irrigation program would save about $10.9 million in 201 3. The
Company does not anticipate removing any of the customer load control devices but recognizes
that customers may elect to no longer participate in the program. The Company calculates that
15% of customers may elect to have their devices removed which would result in removal costs
to the Company.
1 In the AIC program, customers receive a monthly billing credit of $7.00 for each of the three summer months.
NOTICE OF SETTLEMENT WORKSHOP
ORDER NO. 32732
YOU ARE FURTHER NOTIFIED that the Company also anticipates spending
approximately $650,000 on the A/C program in 2013 for customer 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 "sofiware and
license fees for the AM1 switches." Id. Likewise, if the Irrigation 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.
THE PREHEARING CONFERENCE
The Commission convened its prehearing conference on January 29, 20 13. Idaho
Power, the three intervenors, and Commission Staff participated in the hearing. The purpose of
the prehearing conference was so the parties could advise the Commission on the appropriate
manner to process this case. Order No. 32713 at 4. Despite the Irrigators' initial request that the
Commission schedule a technical hearing to consider the suspensions, all the parties agreed at
the prehearing conference that this Application could be processed without a technical hearing.
The parties further agreed that a settlement workshop be held on February 6, 2013, so that the
parties can discuss the short-term suspension issues (for 2013) and establish a schedule to
address the longer term issues (2014 and beyond) of the two demand reduction programs. In
addition, Idaho Power conceded that the Commission's suspension decision could be made no
later than April l,20 13.
Given the proposal of the parties, we direct that the parties attend a settlement
workshop to address the issues and conditions of whether the A/C and Irrigation programs
should be suspended for 201 3. Based upon the agreement of the parties, the Commission finds
there is good cause to schedule a public workshop on less that 14 days' notice for February 6,
2013. IDAPA 31.01.01.241.
NOTICE OF PUBLIC WORKSHOP
YOU ARE FURTHER NOTIFIED that the Commission will convene a settlement
workshop for the parties and interested persons to commence at 9:00 A.M. ON WEDNESDAY,
FEBRUARY 6, 2013 AT THE COMMISSION HEARING ROOM, 472 WEST
WASHINGTON STREET, BOISE, IDAHO [phone]. The purpose of this settlement
workshop is to allow the participants to discuss the merits and conditions of Idaho Power's
request to suspend customer payments under the AIC and Irrigation programs for 2013.
NOTICE OF SETTLEMENT WORKSHOP
ORDER NO. 32732
Participants at the workshop may also discuss issues related to refining the two programs for
continued operation in 20 14 and beyond.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure, IDAPA 3 1.0 1.0 1.000 et seq.
YOU ARE FURTHER NOTIFIED that the Company's Application and supporting
testimony are available for public inspection on the Commission's web site at
www.puc.idaho.gov 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 55 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.
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
may 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 a settlement workshop is scheduled for February 6,
2013 to discuss the issues of suspending the A/C Cool Credit and Irrigation Peak Rewards
programs for 20 13. The parties are reminded that any agreement regarding the suspension of the
programs during 20 13 should be submitted for our review well before the proposed effective date
of April 1,201 3. Participants may also schedule further workshops to address longer term issues
of the two programs for 2014 and beyond.
NOTICE OF SETTLEMENT WORKSHOP
ORDER NO. 32732 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 / ''
day of January 20 1 3.
PAUL K J E L L A ~ ~ E ~ PRESIDENT
MARSHA H. SMITH. COMMISSIONER
ATTEST:
Cbmmission secretary
NOTICE OF SETTLEMENT WORKSHOP
ORDER NO. 32732 5