20140328Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: MARCH 28, 2014

SUBJECT: IDAHO POWER COMPANY’S PETITION FOR APPROVAL OF THIRD
AMENDMENT TO AGREEMENT WITH ENERNOC, CASE NO. IPC-E-
14-02

On March 7, 2014, Idaho Power Company filed a Petition requesting approval of the
third amendment to the Company’s Agreement with EnerNOC, Inc. EnerNOC pursuant to the
Agreement provides a demand response program for Idaho Power’s commercial and industrial
customers, identified as its Flex Peak Management Program. The objective of the Flex Peak
Program is to reduce demand on Idaho Power’s system during peak load times by customers’
voluntary reduction in electrical use. EnerNOC is responsible for developing and implementing
all marketing plans, securing participants, installing and maintaining all equipment beyond Idaho
Power’s meter necessary to reduce demand, track participation, and report results to the
Company. Petition, p. 2.
The Commission approved the initial Agreement between Idaho Power and EnerNOC
in May 2009, and approved the first amendment to the Agreement in June 2010. In December
2012, Idaho Power filed an application requesting authority to temporarily suspend two demand
response programs, the A/C Cool Credit and Irrigation Peak Rewards programs, because the
Company’s 2013 Integrated Resource Plan did not show peak hour capacity deficits until July
2016. In February 2013, the parties in the case reached a settlement to allow for the temporary
suspension of the A/C Cool Credit Program and Irrigation Peak Rewards Program during the
2013 season. In March 2013, the Company filed a petition seeking Commission approval of
second amendment to the Agreement allowing the Company and EnerNOC to reduce the amount
DECISION MEMORANDUM 2
of weekly nominated demand reduction obligations, the available hours of the program, and the
amount per kilowatt that Idaho Power pays to EnerNOC. The Commission subsequently
approved the second amendment to the Agreement and directed the Company to discuss the
future of the Flex Peak Program during demand response workshops to be held that summer.
Order No. 32805. Public workshops were convened in July and August 2013, with a final public
workshop and settlement conference on August 27, 2013. In October 2013, Idaho Power
requested the Commission approve a settlement agreement signed by the Company and
participating parties relating to the modification and reinstatement of the Company’s demand
response programs for 2014 and beyond. Petition, p. 4. The Commission later issued Order No.
32923 approving the settlement agreement. The Company filed a Petition in this case seeking
approval of the third amendment to modify the Agreement to comply with the terms of the
settlement agreement previously approved by the Commission. Petition, p. 4.
Idaho Power’s Petition states that the third amendment aligns with the settlement
agreement approved in Case No. IPC-E-13-14. It extends the contract termination date through
the end of 2014 program season, reduces payments to EnerNOC, and makes changes to the
payment structure, along with other changes. The third amendment also makes a few changes
not identified in the settlement agreement. Specifically, the third amendment limits availability
of the Flex Peak Program after the first three dispatch events. Idaho Power Petition, p. 5. The
Petition states that because these dispatch limitations were not mentioned in the settlement
agreement, Idaho Power consulted its Energy Efficiency Advisory Group (EEAG), which
supported the Company placing the additional term in the third amendment. Id.
Idaho Power states that EnerNOC believes information in the original Agreement and
subsequent amendments contain information that is confidential, valuable proprietary
information. Accordingly, the Company filed its third amendment under separate cover and in
accordance with the Commission’s rules on handling confidential information. Petition, pp. 5-6.
The Company prepared a confidential explanation of the third amendment that will be available
to parties upon request and execution of the appropriate Protective Agreement.
Idaho Power requests that its Petition for approval of the third amendment to the
EnerNOC Agreement be processed by Modified Procedure. The Company further requests the
Commission issue an Order no later than May 31, 2014. Staff recommends the Commission
DECISION MEMORANDUM 3
issue a Notice of Modified Procedure providing for a 21-day comment period and a 7-day period
for reply comments.
COMMISSION DECISION
Should the Commission issues a Notice of Petition and Notice of Modified Procedure
providing for a 21-day comment period and a 7-day reply comment period?

Weldon B. Stutzman
Deputy Attorney General

bls/M:IPC-E-14-02_ws