20140307Petition.pdf

38ffi*.
An IDACORP Company
JULIAA. HILTON
Corporate Counsel
i hi [e-mail]
March 7,2014
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
47 2 W est Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-14-02
Commercial Demand Response Program- ldaho PowerCompany's Petition
for Approva! of Third Amendment to Agreement with EnerNOC, lnc.
Dear Ms. Jewell:
Enclosed forfiling in the above matterare an original and seven (7) copies of ldaho
PowerCompany's Petition forApprovalof Third AmendmenttoAgreementwith EnerNOC,
!nc.
Also enclosed in separate envelopes are an original and seven (7) copies each of
confidential Attachments 1 and 2 to the Petition. A proposed Protective Agreement is
provided forexecution bythe appropriate ldaho Public Utilities Commission Staff attomey.
Please handle the confidential information in accordance with the Protective Agreement
ldaho Power Company requests be executed in this matter.
Sincerely,
JAH:csb
Enclosures
1221 W. ldaho 5t. (83702)
P.O. Box 70
Boise, lD 83707
JULIA A. HILTON (lSB No. 7740)
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
i h ilton @ idahopower. com
lnordstrom @ ida hopower.com
Attorneys for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION FOR
APPROVAL OF lTS AGREEMENT WITH
ENERNOC, INC., TO IMPLEMENT AND
OPERATE A VOLUNTARY
CoMMERCTAL DEMAND RESPONSE )
PROGRAM
COMES NOW, ldaho Power Company ("ldaho Powed' or "Company"), in
accordance with RP 052, and hereby requests that the ldaho Public Utilities
Commission ("Commission") issue its Order approving Amendment No. 3 ('Third
Amendment") to the February 23,2009, Demand Response Agreement between ldaho
Power and EnerNOC, lnc. ("EnerNOC") under which ldaho Power provides a demand
response program for its commercial and industrial customers. ldaho Power has
identified this demand response program as its FlexPeak Management program
("FIexPeak Program").
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. . 1
CASE NO. IPC-E-14-O2
IDAHO POWER COMPANY'S
PETITION FOR APPROVAL OF
THIRD AMENDMENT TO
AGREEMENT WITH ENERNOC,
lNc.
This Petition is based on the following:
I. BACKGROUND
1. On March 2,2009, the Company filed its 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. The FlexPeak Program is a voluntary demand response program targeting
ldaho 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 ldaho 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 ldaho Poweds meter
necessary to reduce demand, tracking participation, and reporting results to Idaho
Power. ldaho Power initiates demand response events by notifying EnerNOC, who
then supplies the requested load reduction to ldaho Power's system.
3. ln Order No.30805 issued on May 15,2009, the Commission approved
the 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. On December 21, 2012, the Company submitted its Application in Case
No. IPC-E-12-29 requesting authority to temporarily suspend two demand response
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 2
programs, A/C Cool Credit and lrrigation Peak Rewards, because the load and resource
balance prepared as part of ldaho Power's 2013 integrated resource planning process
did not show peak hour capacity deficits until July 2016. ln Case No. IPC-E-12-29, the
Company notified the Commission that it was discussing possible contract modifications
with EnerNOC in order to reduce customer costs.
5. On February 6, 2013, parties to Case No. IPC-E-12-29 reached a
settlement in principle that would allow for the temporary suspension of the A/C Coo!
Credit program and lrrigation Peak Rewards program during the 2013 program season
to allow the parties to participate in workshops to discuss a longer term solution for
Idaho Power's demand response programs.
6. On March 7,2013, the Company filed its Petition in Case No. IPC-E-13-04
seeking Commission approval of a second amendment to the Agreement. Because the
Company's load and resource balance indicated it did not need capacity from its
demand response programs until 2016, the Company and EnerNOC amended the
Agreement to reduce the amount of weekly nominated demand reduction obligations,
the available hours of the program, and the amount per kilowatt that ldaho Power pays
to EnerNOC. The modifications resulted in savings of approximately $500,000 in 2013
and maintained customer participation levels.
7. On April 2, 2013, in Order No. 32776, the Commission approved a
stipulation entered into by parties to Case No. IPC-E-12-29. The parties included the
Commission Staff, the ldaho lrrigation Pumpers Association (.llPA'), the ldaho
Conservation League ("lCL"), and the Snake River Alliance ("SR4'1. That stipulation
described terms for the temporary suspension of the A/C Cool Credit program and the
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 3
lrrigation Peak Rewards program. lt also requested that the Commission schedule a
prehearing conference to set a schedule for workshops and a procedural schedule so
that parties and stakeholders could evaluate changes for all three of ldaho Power's
demand response programs for the 2014 program season and beyond.
8. On May 9, 2013, the Commission issued Order No. 32805, which
approved the second amendment to the Agreement and directed the Company to
discuss the future of the FlexPeak Program during the demand response workshops to
be held that summer.
9. On June 4,2013, in Case No. IPC-E-13-14, the Commission issued Order
No. 32823, which directed the Commission Staff to convene an informal prehearing
conference to discuss scheduling for public workshops regarding the continuation
and/or modification of the Company's demand response programs. These public
workshops were held on July 10, July 23, August 7, and August 19,2013, with a final
public workshop and settlement conference on Augusl27,2013.
10. On October 2,2013, ldaho Power requested the Commission approve a
Settlement Agreement signed by ldaho Power, Staff, llPA, lCL, SRA, EnerNOC, and
customer Mike Seaman resolving and settling issues related to the modification and
reinstatement of Idaho Power's demand response programs for 2014 and beyond. ln
Order No. 32923, issued on November 12, 2013, the Settlement Agreement was
approved by the Commission as just, fair, reasonable, and in the public interest.
11. By this Petition, ldaho Power respectfully requests the Commission's
approval of the Third Amendment, which modifies the Agreement to comply with terms
of the Settlement Agreement.
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 4
II. THIRD AMENDMENT TO THE AGREEMENT
12. The Third Amendment to the Agreement aligns with the Settlement
Agreement approved in Case No. IPC-E-13-14. The Third Amendment extends the
contract termination date through the end of the 2014 program season, reduces
payments to EnerNOC, and makes changes to the payment structure. lt also includes
several other changes, including removal of the lower bound of EnerNOC's committed
load reduction, modification of the program availability dates to June 15 through August
15 to align with the Company's other demand response programs, and allows for
notification of dispatch of a demand response event to occur through a web portal.
13. !n order to reduce program costs, the Third Amendment also limits
availability of the FlexPeak Program after the first three dispatch events as described in
more detail in the confidential explanation of the Third Amendment. Because these
limitations in dispatch were not anticipated by the parties to the Settlement Agreement,
ldaho Power consulted its Energy Efficiency Advisory Group ("EEAG') on February 6,
2014, for feedback. The EEAG supported the Company moving fonryard with this
additional term in the Third Amendment.
14. Because EnerNOC has represented to the Company that both the original
Agreement and the subsequent amendments to the Agreement contain information that
is confidential, valuable, proprietary information, the Third Amendment to the
Agreement is being provided to the Commission as Attachment 1 to this Application
under separate cover in accordance with the Commission's rules on the handling of
confidential information. Parties that could profit from the specific financial and
IDAHO POWER COMPANY'S PETITION FORAPPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 5
business mode! data contained in the Third Amendment will be provided with the
confidential explanation of the Third Amendment in lieu of the Third Amendment.
15. The confidential explanation of the Third Amendment to the Agreement is
provided as Attachment 2 to the Application and will be provided to parties upon request
and execution of the Protective Agreement. 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 confidentia! information.
16. To properly bill and administer the FlexPeak Program during the program
season beginning June 15, 2014, ldaho Power respectfully requests the Commission
issue an Order on this matter no Iater than May 31,2014.
III. MODIFIED PROCEDURE
17. ldaho Power believes that a hearing is not necessary to consider the Third
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,
ef seg. lf, 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.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
18. Communication and service of pleadings with reference to this Petition
should be sent to the following:
Julia A. Hilton
Regulatory Dockets
Idaho Power Company
P.O. Box 70
Boise, ldaho 83707
i h i lto n@ idahopower. com
dockets@ id ahopower. com
TamiWhite
ldaho Power Company
P.O. Box 70
Boise, ldaho 83707
twh ite@idahopower. com
IDAHO POWER COMPANY'S PETITION FOR APPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 6
V. REQUEST FOR RELIEF
19. ldaho Power respectfully requests that the Commission issue its Order (1)
authorizing that this matter be processed by modified procedure and (2) approving the
Third Amendment to the Agreement between ldaho Power and EnerNOC without
change or condition no later than May 31,2014.
Respectfully submitted this 7th day of March 2014.
IDAHO POWER COMPANY'S PETITION FORAPPROVAL OF
THIRD AMENDMENT TO AGREEMENT WITH ENERNOC, INC. - 7
Attorney for ldaho Power Company
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPG-E-14-02
IDAHO POWER COMPANY
ATTAGHMENT 1
THIRD AMENDMENT
THE THIRD AMENDMENT
IS CONFIDENTIAL AND
WI LL BE PROVI DED TO
THE APPROPRIATE
PARTIES
UPON EXECUTION
OF THE PROTECTIVE
AGREEMENT
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-14-02
IDAHO POWER COMPANY
ATTACHMENT 2
EXPLANATION OF THIRD AMENDMENT
THE EXPLANATION OF
THE THIRD AMENDMENT
IS CONFIDENTIAL
AND WI LL BE PROVI DED
TO THE PARTIES UPON
REOUEST AND
EXECUTION OF THE
PROTECTIVE
AGREEMENT