20130702press release.pdf

Idaho Public Utilities Commission
Case No. IPC-E-13-14, Notice of Public Workshops
July 2, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Workshops will explore future of demand response programs

A series of four workshops begin July 10 to determine the future of three Idaho Power
Company programs that provide incentives to customers to reduce their electric demand on
the utility’s generation system during peak-use periods.
Last month, the Idaho Public Utilities Commission issued an order allowing Idaho Power to
temporarily suspend two of its demand response programs and modify another. Due primarily
to the economic downturn, Idaho Power claims its generating plants can meet peak demand in
the summer months until at least through 2016 at lower cost than by continuing the programs.
The programs temporarily suspended are A/C Cool Credit, which provides residential customers
who signed up a $7 credit for each of three summer months to allow Idaho Power to remotely
cycle air conditioners on and off during peak-use periods and “Irrigation Peak Rewards,” which
pays irrigators to turn off irrigation pumps through the use of an electric switch connected to
customers’ electrical panels. A third program – modified, but not suspended – is FlexPeak,
directed to industrial and large commercial customers who volunteer to reduce their electric
service loads for short periods during the summer. The programs are just part of about 20
demand response programs offered by Idaho Power.
Idaho Power said it has enough generation to meet peak demand and that suspending the
programs would save customers the approximate $5.5 million it spent during 2012 on A/C Cool
Credit and $12.3 million on Irrigation Peak Rewards. A/C Cool Credit and Irrigation Peak
Rewards were created in 2003 and 2004, respectively. During 2012, the two programs and
FlexPeak reduced demand on Idaho Power’s system by 367 megawatts. One megawatt is
enough power to energize about 650 average-sized homes.
In response to Idaho Power’s petition to suspend the programs, the commission adopted a
negotiated settlement that provides a “continuity payment” of $1 per month to residential
customers during three summer months who have been participating in A/C Cool Credit, even
though air conditioner cycling will not occur. Participating irrigators will also receive continuity
payments, but the amounts vary depending on which Peak Reward option irrigators chose. It is
hoped the continuity payments will keep customers from dropping out of the programs while
they are reviewed.
The workshops are part of the review on how the programs should be conducted after this
year. Open to the public, the workshops are scheduled for July 10, July 23, Aug. 7 and Aug. 19.
All begin at 9 a.m. in the public meeting room of Idaho Power headquarters, 1221 W. Idaho St.
Those interested but who cannot attend can participate in the workshops via telephone by
calling toll-free 1-877-820-7831 and entering the participant code of 2456163#.
Documents regarding this case as well as the case that allowed temporary suspension of the
programs are available on the commission’s Web site at www.puc.idaho.gov. Click on “Electric,”
and then on “Open Cases” and scroll down to Case No. IPC-E-12-29 and Case No. IPC-E-13-14.