20130307Application.pdf

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Re: Case No.1PtE69-O2-
Commercial Demand Response Program - Idaho Power Company's Petition
for Approval of Second Amendment to Agreement with EnerNOC, Inc.
IN ipc- c—oq--o -i-
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
IDAHO 99 POWER.
L . An IDACORP Company
2iDINAR -7 AMII:55
LISA D. NORDSTROM
Lead Counsel UTIL
Inordstromidahopower.com S uOMsso
March 7, 2013
VIA HAND DELIVERY
fl
Dear Ms. Jewell:
Enclosed for filing in the above matter are an original and seven (7) copies of Idaho
Power Company's Petition for Approval of Second Amendment to Agreement with
EnerNOC, Inc.
Also enclosed in separate envelopes are an original and seven (7) copies each of
confidential Attachments I and 2 to the Petition. Please handle the confidential
information in accordance with the Protective Agreement executed in this matter.
Sincerely,
C7~L --v. (qdx~4v;vl~
Lisa D. Nordstrom
LDN :evp
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
.

.
LISA D. NORDSTROM (ISB No. 5733)
JULIA A. HILTON (ISB No. 7740)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
lnordstromidahoDower.com
ihiItonidahoDower.com
Attorneys for Idaho Power Company
RECE!VIE
7813 MAR -7 AM 11: 55
OAK UTILITES (Ui3U:.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF ITS AGREEMENT WITH
ENERNOC TO IMPLEMENT AND
OPERATE A VOLUNTARY COMMERCIAL
DEMAND RESPONSE PROGRAM
/PL- —/3 /
CASE NO.1Pe=Ee9.92-.....
IDAHO POWER COMPANY'S
PETITION FOR APPROVAL OF
SECOND AMENDMENT TO
AGREEMENT WITH ENERNOC, INC.
//V ('tS4 /Jo• J-e -oq-
COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), in
accordance with RP 052, and hereby requests that the Idaho Public Utilities
Commission ("Commission") issue its Order approving Amendment No. 2 ("Second
Amendment") to the February 23, 2009, Demand Response Agreement between Idaho
Power and EnerNOC, Inc., ("EnerNOC") under which Idaho Power provides a
commercial demand response program for its commercial and industrial customers.
Idaho Power has identified this demand response program as its FlexPeak
Management Program ("FlexPeak Program")
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -1
This Petition is based on the following:
I. BACKGROUND
1.On March 2, 2009, the Company filed an Application with the Commission
seeking approval of a Demand Response Agreement ("Agreement") with EnerNOC to
implement a voluntary demand response program for commercial and industrial
customers.
2.FlexPeak is a voluntary demand response program targeting Idaho
Power's industrial and large commercial customers that are capable of reducing their
electrical energy loads for short periods during summer peak load days. The FlexPeak
Program's objective is to reduce the demand on Idaho Power's system during peak load
times through customers' voluntary electrical use reduction. EnerNOC is responsible
for developing and implementing all marketing plans, securing all participants, installing
and maintaining all equipment beyond Idaho Power's meter necessary to reduce
demand, tracking participation, and reporting results to Idaho Power. Idaho Power
initiates demand response events by notifying EnerNOC, who then supplies the
requested load reduction to Idaho Power's system.
3.In Order No. 30805 issued on May 15, 2009, the Commission approved
the EnerNOC Agreement and authorized the Company to implement the voluntary
demand response program for its commercial and industrial customers. The
Commission subsequently approved an amendment to clarify terms of the Agreement
on June 2, 2010, in Order No. 31098.
4.Participation in the FlexPeak Program has grown since its 2009 inception.
During 2009, EnerNOC enrolled 33 participant sites, a number that has grown to 102
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -2
facility sites by the 2012 season. Over the program years between 2009 and 2012,
Idaho Power has called 8, 4, 14, and 4 events, respectively, for an average load
reduction, excluding the first two years of program ramp-up, of 38 megawatts ("MW").
5.While participation had steadily grown between 2009 and 2011,
participating sites declined between 2011 and 2012 from 108 to 102. The weekly
commitment in 2012 peaked in August at 38.8 MW; the average weekly MW reduction
during the entire 2012 season was 34.5 MW.
6.Idaho Power's overall FlexPeak Program costs in 2012 were
approximately $3 million. If the contract with EnerNOC remains unchanged in 2013,
achievable demand reduction is expected to increase and the overall program costs are
expected to increase as well.
II. TEMPORARY SUSPENSION OF DEMAND RESPONSE PROGRAMS
7.On December 21, 2012, the Company submitted an Application in Case
No. IPC-E-12-29 requesting authority to temporarily suspend two demand response
programs, A/C Cool Credit and Irrigation Peak Rewards. This request was made
because the load and resource balance prepared as part of Idaho Power's 2013
integrated resource planning process indicates a lack of near-term peak hour capacity
deficits until July 2016. Moreover, in Order No. 32697 issued on December 18, 2012, in
Case No. GNR-E-1 1-03, the Commission directed Idaho Power to not pay for capacity
prior to the need for it; the Company believed that temporarily suspending the demand
response programs aligned with the Commission's guidance and would result in cost
savings for customers.
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -3
8. The FlexPeak Program was not specifically addressed in the demand
response temporary suspension filing, as the Company is under contract with EnerNOC
and therefore does not have the unilateral ability to suspend payment to EnerNOC prior
to the expiration date of the Agreement, February 2014. The Company indicated on
page 5 of its Application in Case No. IPC-E-12-29 that it was discussing with EnerNOC
the possibility of modifying the contract for the remainder of the contract term with the
goal of reducing costs for customers.
9. A settlement workshop was held on February 6, 2013, to discuss the
temporary suspension of the A/C Cool Credit and Irrigation Peak Rewards programs,
and a settlement in principle was reached by Idaho Power, the Commission Staff, the
Idaho Irrigation Pumpers Association, Inc., the Idaho Conservation League, and the
Snake River Alliance ("Parties"). The Company subsequently filed a settlement
stipulation in Case No. IPC-E-12-29 for Commission approval on February 14, 2013.
The Parties agreed that a temporary suspension of the A/C Cool Credit and Irrigation
Peak Rewards programs for the 2013 program seasons is appropriate. Under a
temporary suspension, the Company will not pay any customer "incentive" payments,
no new program participants will be accepted in 2013, and Idaho Power will not initiate
any load control events in 2013. To promote program participant retention and
satisfaction, the Parties agreed that a continuity payment will be made to each
participant enrolled in the programs in 2013. A/C Cool Credit participants will receive $1
per month for each of the three program months during 2013 (or approximately 14
percent of prior year payments) and Irrigation Peak Rewards participants will receive a
payment that is approximately 17 percent of the 2012 program season payments and is
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -4
based on the Irrigation Peak Rewards option the participant was enrolled in during
2012.
Ill. SECOND AMENDMENT TO THE ENEROC AGREEMENT
10.After discussing potential FlexPeak Program modifications for the 2013
season, Idaho Power and EnerNOC identified amendments to the contract that would
align with both Idaho Power's needs and EnerNOC's current level of participation in the
FlexPeak Program. The amended contract would reduce the weekly MW of nominated
demand reduction obligations to a range of 20 MW to 35 MW. Capping the weekly MW
of nominated demand reduction at the historical level of 35 MW will ensure that current
participation levels are sustainable while limiting future program costs associated with
higher demand reduction levels that the Company has identified it does not need at this
time. The Company anticipates that without changes to the Agreement, EnerNOC will
continue to recruit customers and secure new demand reduction capacity. By capping
the weekly nominated demand reduction at 35 MW, reducing the amount of dispatch
hours available from 60 to 30 and event days from 20 to 10, and reducing the amount
that Idaho Power pays to EnerNOC per kilowatt, Idaho Power expects to save program
expenses of approximately $500,000 in 2013.
11.Because EnerNOC has represented to the Company that both the original
Agreement and the subsequent amendments to the Agreement contain information that
is valuable, proprietary information, the Second Amendment to the Agreement is being
provided to the Commission as Attachment I to this Application under separate cover in
accordance with the Commission's rules on the handling of confidential information.
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -5
The Commission Staff already executed the standard protective agreement in this
docket in 2009, which will enable them to review the Second Amendment.
12.Idaho Power has also included a confidential explanation of the Second
Amendment to the Agreement as Attachment 2 to the Application. This explanation will
be provided upon request and execution of the Protective Agreement. The confidential
explanation will be provided in lieu of the Second Amendment to the Agreement to
interested parties that could profit from the specific financial and business model data
contained in the Second Amendment. Because the explanation document discusses
confidential information, it is also being supplied in a separate envelope consistent with
the Commission's rules on submittal of confidential information.
13.To properly bill and administer the FlexPeak Program during the program
season beginning June 1, 2013, Idaho Power respectfully requests the Commission
issue an order on this matter no later than May 31, 2013.
IV. MODIFIED PROCEDURE
14.Idaho Power believes that a hearing is not necessary to consider the
Second Amendment presented herein and respectfully requests that this Petition be
processed under Modified Procedure; i.e., by written submissions rather than by
hearing. RP 201, et seq. If, however, the Commission determines that a technical
hearing is required, the Company stands ready to present testimony in support of the
Application in such hearing.
V. COMMUNICATIONS AND SERVICE OF PLEADINGS
15.Communication and service of pleadings with reference to this Petition
should be sent to the following:
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -6
Lisa D. Nordstrom
Regulatory Dockets
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Inordstromcidahopower.com
docketsidahoDower.com
Tami White
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
twhite(idahopower.com
VI. REQUEST FOR RELIEF
16. Idaho Power respectfully requests that the Commission issue its Order:
(1) authorizing that this matter be processed by modified procedure and (2) approving
the Second Amendment to the Agreement between Idaho Power and EnerNOC without
change or condition no later than May 31, 2013.
Respectfully submitted this 7th day of March 2013.
LISA D. NORDS OM
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 7th day of March 2013 I served a true and
correct copy of IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC., upon the following
named parties by the method indicated below, and addressed to the following:
Commission Staff
Neil Price
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
X Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email Neil. DriceDuc. idaho.qov
'~~7 ~'~ fz"-~
Elizabeth Paynter, Legal Secretary
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
SECOND AMENDMENT TO AGREEMENT WITH ENERNOC, INC. -8
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-02
IDAHO POWER COMPANY
ATTACHMENT I
SECOND AMENDMENT
S
THE SECOND
AMENDMENT IS
CONFIDENTIAL AND WILL
BE PROVIDED TO THE
APPROPRIATE PARTIES
UPON REQUEST AND
EXECUTION OF THE
PROTECTIVE
AGREEMENT
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-09-02
IDAHO POWER COMPANY
ATTACHMENT 2
EXPLANATION OF SECOND AMENDMENT
THE EXPLANATION OF
THE SECOND
AMENDMENT IS
CONFIDENTIAL
AND WILL BE PROVIDED
TO THE APPROPRIATE
PARTIES UPON REQUEST
AND EXECUTION OF THE
PROTECTIVE
AGREEMENT
CERTIFICATE OF ATTORNEY
.1
ASSERTION THAT MATERIALS REQUESTED AND PROVIDED DURING NE -
COURSE OF AN IDAHO PUBLIC UTILITIES COMMISSION PROCEDIN
ARE PROTECTED FROM PUBLIC INSPECTION
Case No. IPC-E-09-02 cn
The undersigned attorney, in accordance with RP 233, hereby certifies that the
attachments filed with Idaho Power Company's Petition for Approval of Second
Amendment to Agreement with EnerNOC, Inc., contain information that is a trade secret
or privileged or confidential as described in Idaho Code § 9-340, et seq., and § 48-801,
et seq., and as such are exempt from public inspection, examination, or copying.
DATED this 7 th day of March 2013.
Lisa D. Nordstrom
Counsel for Idaho Power Company