20151103Compliance Filing.pdf

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An IDACORP Company
November 3, 2015
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
RE: Case No. IPC-E-15-03 - Compliance Filing - Flex Peak Program End-of-Season Report
Dear Ms. Jewell:
ln Order No. 33292, the ldaho Public Utilities Commission ("Commission") ordered ldaho
Power Company to file a Flex Peak Program end-of-season report within 80 days after the end of
the season. Therefore, enclosed for filing are an original and seven (7) copies of the Flex Peak
Program end-of-season report containing the information requested by the Commission in the
order.
lf you have any questions regarding this filing, please contact Zach Hanis at 388-2305 or
zharris@idahopower. com.
Very truly yours,
LISAD. NORDSTROM
Lead Counsel
lnordsfi [e-mail]
LDN:kkt
Enclosures
Lisa D. Nordstrom
P.O. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
CERTIFICATE OF SERVICE
! HEREBY CERTIFY that on the 3'd day of November 20151 served a true and
correct copy the FLEX PEAK PROGRAM END-OF-SEASON REPORT upon the
following named parties by the method indicated below, and addressed to the following:
Gommission Staff
Karl T. Klein
Deputy Attorney General
ldaho Public Utilities Commission
47 2 W est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustrial Customerc of ldaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North 6th Street (83702)
P.O. Box 844
Boise, ldaho 83701
X Hand Delivered
_U.S. Mai!
_Overnight Mail
_FAXX Email kar![e-mail]
Hand Delivered
U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
q req@ richardsonadams. com
_Hand Delivered
U.S. Mai!
Overnight Mail
FAX
-X_ Email [e-mail]
_Hand Delivered
U.S. Mail
Overnight Mail
FAXX Email [e-mail]
CERTIFICATE OF SERVICE - 1
SI'ffi*
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UT ILITIE S CCIi,{iY{ ISS
2015 FIex Peak Program
End-of-Season Annual Report
November 3, 2015
ldaho Power
Flex Peak Program End-of-Season Report Page i
ldaho Power
List of Tables
Table 1. 2OlS lncentive Structure. ...........2
Table 2. 2015 Event Realization Rates. .......9
Table 3. Realization Rate Per Participant for Each Event During Season. ..............9
Table 4. Program Costs Through October 1,2015............. ...................12
List of Figures
Figure 1. ldaho Power Service Area ....... ....................5
Figure 2. Distribution of Participants by Region lor 2015.............. ..............6
Figure 3. Distribution by Customer Segment for 2015............. ...................6
Figure 4. Baseline and "Day of Adjustment" Methodology Comparisons....................8
Figure 5. Average Realization Rate by Each Nomination Group ..............11
Attachment
CLEAResult 2015 lmpact Evaluation
Page ii Flex Peak Program End-of-Season Report
ldaho Power
Background
The Flex Peak Program ("Program") is a voluntary demand response ('DR') program
available to industrial and large commercial customers that are capable of reducing their
electrical energy loads for short periods during summer peak days. By reducing
demand on extreme system load days during summer months, the Program reduces the
amount of generation and transmission resources required to serve customers. This
Program, along with ldaho Power Company's ("ldaho Power" or "Company") other DR
programs, lrrigation Peak Rewards and the Residential Air Conditioner Cycling
Program, has helped to delay the need to build supply-side resources.
ldaho Power filed an application with the ldaho Public Utilities Commission
("Commission") on February 4,2015, in Case No. IPC-E-15-03 requesting authority to
replace the existing optional FlexPeak Management DR program that was managed by
a third-party contractor with an optional DR program that would be managed by the
Company. The Commission issued Order No. 33292 on May 7, 2015, authorizing the
Company to implement an internally managed Flex Peak Program under Schedule 82 in
ldaho and continue recovery of its DR program costs in the manner it had been
previously.
As part of Order No. 33292, the Commission ordered the Company to file an annual
end-of-season report that should include the number of participants, number of
participating sites, megawatts ("MW") of DR under contract, MW of DR realized and
incented per dispatch, percent of nominated MW achieved in each dispatch event by
participant, and a detailed program cost analysis. This report addresses the annual
end-of-season reporting requirements.
Page 8 of the Commission's order also requires Idaho Power to file a separate, one-
time report no later than May 7, 2016, that discusses the Company's experience in
running the Program, how the Program's costs and benefits compare to those achieved
under the prior program, how participants have performed under the structure, and
whether changes might improve the Program. The Company will file the onetime
report in 2016.
Program Details
The Program pays participants a financial incentive for reducing load within their facility
and is active June 15 to August 15, between the hours of 2 p.m. to 8 p.m. on
non-holiday weekdays.
Customers with the ability to nominate or provide load reduction of at least 20 kilowatts
("kW") are eligible to enroll in the Program. The 20 kW threshold allows a broad range
of customers the ability to participate in the Program. Participants receive notification of
a load reduction event ("event") two hours prior to the start of the event, and events last
between two to four hours. The Flex Peak Program provided approximately 28 MW at
the generation level of committed load reduction based on the 2015 nomination
amounts.
Flex Peak Program End-of-Season Report Page 1
ldaho Power Company
The parameters of the Flex Peak Program are in Schedule 82, and include the
following:
o A minimum of three load reduction events would occur each Program season
o Events could occur any weekday, excluding July 4, between the hours of 2 p.m.
and 8 p.m.
o Events could occur up to four hours per day and up to 15 hours per week, but no
more than 60 hours per Program season
o ldaho Power would give notification to participants two hours prior to the initiation
of an event
. If prior notice of a load reduction event had been sent, ldaho Power could choose
to cancel the event and notify participants of cancellation 30 minutes prior to the
start of the event
Program lncentives
The Flex Peak Program includes both a fixed and variable incentive payment. The fixed
incentive is calculated by multiplying the actual kW reduction by $3.25 for weeks when
an event is called, or the weekly nominated kW amount by $3.25 for weeks when an
event is not called. The variable energy incentive is calculated by multiplying the kW
reduction by the event duration hours to achieve the total kilowatt-hour ('kwh")
reduction during an event. The variable incentive payment is $0.16 per kWh and is
implemented for events that occur after the first three events.
The Program also includes an incentive adjustment of $2.00 when participants do not
achieve their nominated amount during load reduction events. This adjustment amount
is used for the first three events. After the third event, the adjustment is reduced to
$0.25 per kW. lncentives are calculated using ldaho Power's interva! metering billing
data and participants' incentive checks were mailed within 30 days of the end of the
Program season. Participants were mailed their incentive checks by September 15 in
2015. The incentive structure offered for the 2015 season is listed in Table 1.
Table 1.
Fixed Capacity Payment Rate*Variable Energy Payment Rate**
$3.25 per Weekly Effective kW Reduction
Adjustment for first three events
$2.00 per kW not achieved up to nomination
$0.16 per kWh (Actual kW x Hours of Event)
Adjustment after first three events
$0.25 per kW not achieved up to nomination
*To be prorated for partialweeks **Does not apply to first three Program events
Page2 Flex Peak Program End-of-Season Report
ldaho Power
Program Results
The results throughout this report are at the generation level and system losses have
been taken into account. Idaho Power called three load reduction events in 2015. The
first event occurred on June 30, the second on July 21, and the third on August 4. The
maximum realization rate during the season was 96.6% and the average for all three
events combined was 79.6%. The realization rate is the percentage of load reduction
achieved versus the amount of load reduction committed for an event. The highest
hourly load reduction achieved was during the July 21 event at 25.6 MW.
Participants had a committed load reduction of 28.1 MW in the first week of the
Program, which was the peak committed load reduction for the season. This weekly
commitment, or "nomination", was comprised of 38 participants totaling 72 sites. Out of
the total number of sites, 57 sites participated in the 2014 season, and 15 sites were
newly added in 2015. There were 36 sites that did not re-enroll from the2014 season.
Of the 36 sites that did not re-enroll, 17 were from one customer that chose not to
participate in 2015. However, of the sites that did not re-enroll last season, Idaho
Power has received information from customers that three sites will be enrolled in 2016.
The committed Ioad reduction at the end of the season was 26.37 MW, which was
achieved by 71 facility sites. One site dropped out of the Program during the season
due to its primary pump being taken down and replaced.
The first event was called on Tuesday, June 30. Participants were notified at 2 p.m. for
a four-hour event from 4-8 p.m. The total nomination for this event was 27 .72 MW. The
average load reduction was 23.6 MW. The highest hourly load reduction was 24.1 MW
during hour three. The realization rate for this event was 86.7%.
The second event was called on Tuesday, July 21. Participants were notified at 2 p.m.
for a four-hour event from 4-8 p.m. The total nomination for this event was 26.4 MW.
The average load reduction was 24.9 MW. The highest hourly load reduction was 25.6
during hour one. The realization rate for this event was 96.6%.
The third event was called on Tuesday, August 4. Participants were notified at 2 p.m.
for a three-hour event from 4-7 p.m. The total nomination for this event was 26.2 MW.
The average load reduction was 13.8 MW. The highest hourly load reduction was 14.6
MW during hour three. The realization rate for this event was 55.4%. This was
primarily due to one customer with two sites that was not able to provide their typical
load reduction because of production issues caused by outages from range fires.
These two sites achieved a realization rate of 8o/o in the August 4 event, compared to an
average of 113o/o for the first two events. Had the site's realization rate for the August 4
event been the average of its realization rates from the first two events, the realization
rate for this event would have been 94.8o/o.
Participation
ln anticipation of the 2015 Program season, ldaho Power utilized direct customer
mailings to encourage both past participants and new customers to enroll. Several
communications were sent to former FlexPeak Management program participants prior
Flex Peak Program End-of-Season Report Page 3
ldaho Power Company
to the Commission approving Schedule 82 to advise them about the possible upcoming
Program changes. The Commission granted authorization for the new Company-
managed Program on May 7, 2015. ldaho Power had just over 30 days to recruit
customers for the Flex Peak Program before the season began on June 15,2015.
ln May 2015, Program enrollment mailings were sent to all customers that had
participated in prior seasons from 2012 to 2014. Contents of this mailing included
Program details, a Program application, the Program's incentive structure, and a listing
of the customer's eligible service points. Additionally, the ldaho Power Program
Specialist and Customer Representatives answered specific customer questions by
phone, email, and face to face contact, which helped inform participants of new
Program details.
Despite changes to the Program, most past participants and sites re-enrolled. The
number of sites enrolled in the Program for 2015 was 72. Of those 72 sites, 57 were
previously enrolled during the 2014 season. Those 57 returning sites accounted for
79% of the 2015 enrolled service points. The Program also retained 34 of the 48
participants from the2014 season for a7170 customer retention rate.
ln 2015, the average nominated kW per site was 378 kW, while the average load
reduction was 291 kW per site. The 72 enrolled sites nominated an average of 26.9
MW across the three events and included 38 unique participants. The average number
of sites enrolled per participant was 3.1.
Page 4 Flex Peak Program End-of-Season Report
ldaho Power
Figure 1 represents Idaho Power's service area divided
Western, Canyon, Capital, Southern, and Eastern.
Figure 1.
into five regional areas:
Flex Peak Program End-of-Season Report Page 5
ldaho Power Company
Figure 2 represents the 72 service points that enrolled in 2015 and their distribution by
ldaho Power's regional service areas.
Figure 2.
2Ot5 Participation by Region
based on Nomination
Figure 3 represents the 72 service points that enrolled in 2015 and their diversity per
customer segment.
Figure 3.
Water &
Wastewater Z:OLS Participation by Customer Segment
Treatment
Facility
9%
based on Nomination
Refrigerated
Warehouse
Lt%
Other
5o/o
Manufacturing
3%
Light lndustrial
70%
Page 6 Flex Peak Program End-of-Season Report
ldaho Power
Operations
lnterval metering data provides ldaho Power the ability to view all participants' load after
events. This metering data was used to calculate the reduction achieved per site during
load reduction events. Using this data, ldaho Power provided participants post-event
usage reports that showed hourly baseline, actual usage, and reduction during an
event. This tool assisted participants in refining their nomination for future events. This
data provides information useful in determining which participating sites may have an
opportunity to provide more reduction or change their reduction strategy if nomination
amounts were not achieved.
Based on individua! event performance, ldaho Power contacted participants if their
reduction was 25o/o less than the nominated amount for the event. When a participant
did not achieve at least 75o/o of their nominated amount, there were often one or more of
the following factors that influenced the performance:
o Production requirements prevented the ability to curtail or fully implement all load
reduction measures within facility
o Building operators and/or maintenance personnel were out of town or unavailable
during event day
o Enrolled facility was offline or not in production during entire load reduction event
or baseline period due to reduced hours of operation
Load Reduction Analysis
Potential load reduction impacts in 2015 were verified by an impact evaluation
performed by a third-party contractor, CLEAResult. The impact evaluation report
performed by CLEAResult is included as an attachment to this report. The goals of the
impact evaluation were to calculate load reduction in MW under ldaho Power's
methodology, as well as the methodology that was previously used for the Program.
The evaluation also analyzed and verified load reduction per site and per event.
The baseline that load reductions are measured against during load reduction events is
calculated using a 10-day period. The baseline is the average kW of the highest energy
usage days during the event availability time (2-8 p.m.) from the highest three days out
of the last 10 non-event weekdays. lndividual baselines are calculated for each facility
site. Once the original baseline is calculated, there is an additional piece included in the
methodology called the Day-of-Adjustment ("DOA") that is used to arrive at the adjusted
baseline.
Adjustments address situations where load is lower or higher than it has historically
been and the baseline does not accurately reflect the load behavior immediately prior to
the event. The DOA is applied to each site's original baseline by accounting for the
difference between the average baseline kW and the average curtailment day kW
during hours two-three prior to the start of the event. The DOA is calculated as a flat
kW and is applied to all baseline hours and capped at +/- 20% of the original baseline
Flex Peak Program End-of-Season Report Page 7
ldaho Power Company
kW. The DOA is symmetrical, having either an upward or downward adjustment to the
baseline, and is applied to the original baseline kW for each facility site for each hour
during the Program event.
ln determining the reduction amount for each event, there was variation from the
previous baseline methodology compared to the current baseline methodology used in
2015 due to the DOA.
While both methods are commonly accepted throughout the industry, Idaho Power
believes having a symmetrical DOA with caps is a more equitable way to calculate load
reduction for both participants and the Company. The baseline and DOA
methodologies will be compared in greater detail in the one-time Flex Peak Program
report to be filed in 2016 per Order No. 33292.
Figure 4 represents the measured reduction from ldaho Power's baseline and DOA
methodology versus the prior program baseline methodology for the second event on
July 21,2015.
Figure 4.
Difrrrrncr ol5.t MW
70,{x)0
60,000
I 5o.ooo
40.0m
t!ll---T D.yoa *
T
! aalustmrnt !I Prrird I. t .r +ll -
7/21 Uratt
-
ldaho Porirrr Earcline
-
Prior E.srlin?
ldeho Pomr pe.k r.ducton-25.6 Mw
Prtor method perk rrduction-32.4 MW
30,0fi) r' -
20,000--
10,000
la-t '-..'-"-- --+ " 'lltltlalI _._rllItt!llllttalt!!ltl-+ ..- -l 1
10:00 11:00 12:@ l:(P 2:@ 3:00 4:00 5:00 6:00 7:00 E:@ 9:00 10;00AM AM PM PM PM PM PM PM PM PM PM PM PM
Flex Peak Baseline Com pariso n 7 lzV 2015 (All Sitesl
Page 8 Flex Peak Program End-of-Season Report
ldaho Power
CLEAResult also analyzed the realization rate for each event with all sites aggregated
together, as well as on an individual site basis.
Table 2 shows the Program realization rates for 2015 based on peak load reduction per
event.
Table 2.
Event Date ldaho Power Baseline & DOA Previous Baseline & DOA
June 30,2015
July 21,2015
August 4,2015
Season Average
86.70/o
96.6%
55.45o/o
79.6%
91.3%
121.1o/o
80.2%
97.5%
Table 3 shows the realization rate per site for each participant in the Program.
Table 3.
Participant
Number
June 30 Event
Realization
July 2l Event
realization
August 4 Event
Realization
Season
Realization
1 2o/o 2o/o 9%4o/o
2 39Yo 59%660/o 55%
3 100%129o/o 620/o 97%
4 17Yo 128o/o 127o/o 91%
5 84%2060/o 9lYo 127o/o
6 51%69Yo 34o/o 51Yo
7 190o/o 14o/o 13Yo 100%
8 90o/o 74o/o 121Yo 9SYo
9 1560/o 70%760/0 101%
10 395%71%1980/221o/o
11 59o/o 38%95%64%
12 lYo 11%7o/o 60/o
13 17Oo/o 1680/0 116%151o/o
14 2o/o 600 960/o 53%
15 1%92o/o 38o/o 44o/o
15 6lYo 46%1504 40Yo
17 124o/o 106%Oo/o 7704
18 159Yo 1630/o 157%160%
19 103o/o 71%110Yo 95%
20 81o/o 106Yo 77o/o 8$Yo
21 1Yo 61Yo 54o/o 39%
22 46%113%103Yo 87%
23 Oo/o 1904 24o/o 14%
24 35o/o 0o/o 109Yo 48o/o
25 28o/o lYo 18404 71%
26 169Yo 79%1600/o 1360/0
27 392Yo 277o/o 19Yo 229%
28 103o/o 89Yo 0%64Yo
Flex Peak Program End-of-Season Report Page 9
ldaho Power Company
29 635%80o/o 155o/o 290o/o
30 0o/o 0%92o/o 31o/o
31 14o/o 620/o 71o/o 49o/o
32 93o/o 760/o 108%92o/o
33 6SYo 42o/o 12o/o 40o/o
34 78o/o 8Oo/o 159o/o 1060/o
35 95o/o 76%83o/o 85o/o
36 90o/o 77%79o/o 82o/o
37 82%102o/o 117o/o 100o/o
38 55o/o 74o/o 71o/o 67Yo
When broken out across four size classes, the sites with the smallest nominated load
reduction, 0 - 50 kW, achieved the highest average realization rate across the three
events: 137%. The highest realization rate among all nomination groups was the
smallest at 0-50 kW, which supports that the Program change in allowing smaller
participants to enroll helped increase both the Program participation and overall
realization rate.
The second largest size class, 201 - 500 kW, achieved the lowest average realization
rate'. 640/o. The 201-500 kW group had the largest portion of sites enrolled for the
Program and was very diverse in size and facility type. The lower realization rates for
this group were due to production requirements and key personnel being unavailable to
implement the full curtailment of the sites. ldaho Power will work with this customer
segment to help refine nominations to more closely align with realistic reduction
opportunities which will increase the realization rate specific to this group.
Page 10 Flex Peak Program End-of-Season Report
ldaho Power
Figure 5 below represents the realization rate achieved by each nomination group,
averaged across all three events.
Figure 5.
The realization rate analysis results show that maximum load reduction was realized in
the middle of the Program season. This time period is the last week of June through the
middle of July, which correlates with ldaho Power's overall summer system peak.
Program Costs
Program costs totaled $563,292 through October 1,2015. lncentive payments were the
largest expenditure comprising 87o/o of total costs. The incentive payments were fixed
capacity payments resulting from the three events called during the 2015 Program
season. Variable energy payments were not made during the season because the
variable energy payment is implemented starting with the fourth event. Total Program
costs during 2014 were $1,563,211 or $44.66 per kW based on 35 MW. Total Program
costs lor 2015 were $22.53 per kW based on 25 MW. By managing the Flex Peak
Program internally the Company saved its customers nearly $1 million compared to
2014 program costs.
oPlgtc
.9
(!
.B
t!ot
760%
L40%
L20%
LOOYo
80%
60%
40%
20%
o%
s1-200 201-500
Range of Nominated Load Reduction (kW)
Flex Peak Program End-of-Season Report Page 1 1
ldaho Power Company
Table 4 displays the 2015 Program costs through October 1, 2015, by category.
Table 4.
2015 Program Costs
Materials & Equipment
Contract Services
lncentive payments
Marketing & Administration
Tota!
$984
$8,1 38
$487,857
$66,313
$563,292
Benefit-Gost Analysis
The benefit-cost analysis for the Flex Peak Program is based on a 20-year model that
uses financial and demand-side management alternative cost assumptions from
the 2015 lntegrated Resource Plan ("lRP'). As part of the public workshops in
conjunction with Case No. IPC-E-13-14,ldaho Power and other stakeholders agreed ina settlement agreement ("Settlement") on a new method for valuing DR.
The Settlement, as approved in Commission Order No. 32923, determined that the
annual cost of operating the three DR programs for the maximum allowable 60 hours
must be no more than $16.7 million. This amount was reevaluated in the 2015 !RP, as
agreed upon in the Settlement, to be $18.5 million.
The preliminary cost estimate through October 1, 2015, of operating the three DR
programs in 2015 was $8.9 million. lt is estimated that if the three programs were
dispatched for the full 60 hours, the total costs would have been approximately
$11.4 million which is still below the total annual costs agreed upon in the 2013
Settlement as revised in the 2015 lRP.
ldaho Power's cost-effectiveness for DR programs is updated annually. A more
comprehensive benefit-cost analysis will be included in the Company's annual 2016
Demand-Side Management Report when all the data wil! be available.
Customer Satisfaction Results
ldaho Power conducted a post-season survey that was sent via email to all participants
enrolled in the Program. The survey focused on quantifiable questions that encouraged
customer feedback that could be used to improve the Program in future years.
Questions were based on a five point rating scale. ldaho Power received a response
rate of 51o/o. The results of the survey were favorable and participants were satisfied,
as shown below:
o When asked, overall the application process was easy to understand,
5 being "strongly agree," the average response was 4.5
Page 12 Flex Peak Program End-of-Season Report
ldaho Power
When asked, how clear were the notification messages for the Flex Peak Program
events, 5 being "very clear," the average response was 4.9
When asked, how prepared you were for each of the events called this year, 5 being
"very prepared," the average response was 4.2
When asked, how helpful was the post-event performance data in helping you refine
future nominations for the Program, 5 being "very useful," the average response was
4.9
When asked, how helpful was ldaho Power with any questions you had regarding
the Flex Peak Program, 5 being "very helpful," the average response was 4.6
When asked, how satisfied are you with the timeliness of receiving your incentive
payment, 5 being "very satisfied," the average response was 4.7
o When asked, how satisfied are you with your incentive amount, 5 being "very
satisfied," the average response was 4.2
. When asked, how satisfied are you with your overall experience with the Flex Peak
Program, 5 being "very satisfied," the average response was 4.5
o When asked, how likely you would be to re-enroll in the Flex Peak Program in the
future, 5 being "very likely," the average response was 4.9
Program Activities for 2016
Recruitment efforts for the 2016 season will begin in the fourth quarter of 2015 and first
quarter of 2016 to encourage participation for the 2016 Program season. ldaho Power
will meet with existing participants during the off-season from either their ldaho Power
Customer Representative or the Program Specialist to discuss past season
performance and upcoming season details. New customers will be identified mid-winter
with field visits and will have a follow up communication in early spring. Several new
large customers verbally committed to enrolling for the 2016 season at the end of the
2015 season as the groundwork had been laid during the active season to recruit them
for the future. The Company has also published an article promoting the Flex Peak
Program in the "Energy at Work" fall edition of ldaho Power's quarterly newsletter that
was sent to all commercial and industrial customers. The article was well received and
customers have reached out to the ldaho Power Program Specialist to inquire if the
Program is right for them.
ldaho Power plans to launch a marketing campaign early in 2016 with Customer
Representatives to recruit new participants. The Company is also developing new
Program literature and a new Program brochure. This marketing campaign willfocus on
identifying customer dynamics that make successful Program participants and will also
highlight available incentive amounts based on customers' load size. The Program will
be jointly marketed along with ldaho Power's other energy efficiency programs. ln
addition, the marketing campaign goals are to increase the number and size (in terms of
nominated load reduction) diversity of sites enrolled. By having a Iarger diversity of
customer sizes enrolled, the Program would be less prone to volatility in its realization
rate. The Company will utilize Customer Representative support for the sites with the
Flex Peak Program End-of-Season Report Page 13
ldaho Power Company
largest nominated load reduction with the goa! of ensuring all large sites are able to
participate when load reduction events are called.
For the upcoming season, ldaho Power plans to complete an educational campaign
with both enrolled participants and new customers to inform them of DR strategies with
goals of increasing, refining or lowering the amount of nominated load reduction from
each site to more realistically align with load reduction potential.
Gonclusions
A Company-managed program offers customers several benefits. First, there are
significant annual cost savings. The total cost savings this season compared to the
prior year was nearly $1 million. These cost savings flow back to customers through the
Company's Power Cost Adjustment mechanism. Second, all participants were paid
within 30 days of the season ending compared to previous years where the second
installment was paid nearly five months after the end of the season. Lastly, because
the Program is managed by the Company, ldaho Power could cross-market energy
efficiency programs and strengthen the relationship with its participants directly. ln
addition, the Company concluded the following:
o The Program had a total of 72 sites reducing peak demand by 25.6 MW
o The tota! Program costs for 2015 through October 1 were $563,292
o There were 15 new sites recruited to enroll in the 2015 season
o The Program shows high customer satisfaction results among participants
o The cost of having this resource available was $22.53 per kW in 2015 based on 25
MW, $26.32 per kW based on average reduction for the season, and $20.01 per kW
based on max nomination for the season
Despite changing to a Company-managed program, a short timeline to implement
the Program, and modifications to the load reduction calculation methodology, the
Flex Peak Program retained 71o/o of past participants (34 of 48 participants) from the
2014 season
When analyzing the Program at the generation level, industrial and commercial
customers have made noteworthy contributions to ldaho Power's DR programs. The
Flex Peak Program currently contributes approximately 8-10% of the Company's
overall DR portfolio and can be relied upon to provide dispatchable load reduction
for the electrical grid
Curtailment event results showed maximum load reductions of 24.1,25.6, and 14.6
MW, respectively, for the three events, and an average of 21.4 MW. The events
achieved realization rates of 86.70/o, 96.6%, and 55.4o/o, respectively, averaging
79.60/o
Page 14 Flex Peak Program End-of-Season Report
CLEAResult
Flex Peak Demand Response Program
2015 Impact Evaluation
October 2015
PREPARED BY CLEAReSuIt
PREPARED FOR ldaho Power Company
REPORTTNG PERIOD June 1sth - August 15'n, 2015
We change the way people use energyt'
0
CLEAResult
Table of Contents
Executive Summary ..................2
..................2lntroduction
Findings......--....----..-----4
List of Tables
Table 2: Number of Sites by Processing Step.......... ................4
Table 3: Summary of Demand Reduction and Resulting Realization Rate (MW)... ........ 5
Table 5: June 30h Curtailment Event Results by Hour (MW.. . . .. ...........7
Table 7: July 21d Curtailment Event Baseline Results by Hour (MW .. ....... ................. 8
Table 9: August 4th Curtailment Event Results by Hour (MW)........... ........ 9
List of Figures
Figure 1. Count of Sites by Nominated Reduction Group ............................ 5
Figure 3: Summary of Demand Reduction (MW... .. ........ 6
Figure 4. Average Realization Rate by Nominated Reduction Group.......... .................... 6
Figure 5. June 3Oh Curtailment Event Load Profile. ................7
Figure 6. July 21't Curtailment Event Load Profile .................. 8
Figure 7. August 4h Curtailment Event Load Profile ................ I
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CLEAResult
Executive Summary
ldaho Power Company contracted CLEAResult to complete an impact evaluation of the 2015 Flex Peak program,
a voluntary demand response (DR) program that has been available to ldaho Power's commercial and industrial
customers. ln 2015, there were 38 customers and a total of 71 sites enrolled in the program. The goals of the
impact evaluation were to determine the demand reduction (in MW) and realization rate for at least three
curtailment events during the program's June 15th - August 15th season.
CLEAResult completed analyses of curtailment events held on June 30th (4-8pm), July 2'l't (4-8pm), and August
+h 1+-Zpm1, 2015. The results of the curtailment event analyses showed maximum demand reductions of 21.9,
23.3, and 13.3 MW, respectively, for the three events, and an average of 19.5 MW at the meter level. The events
achieved realization rates of 86.7%,96.6%, and 55.4%, respectively, averaging 79.60/o. Allthree events included
71 unique sites, with the aggregate nominated load reduction averaging 24.5 MW across the three events.
The 71 sites enrolled in the program contributed a median nominated reduction of 'l75 kW. Vvhen broken out
across four size classes, the sites with the smallest nominated load reduction, 0-50 kW, achieved the highest
average realization rate across the three events al137o/o. The second largest size class, 201-500 kW, achieved
the lowest average realization rale al640/o.
The results of the impact evaluation show that ldaho Power's 2015 Flex Peak program functioned as intended
and provided up to 23 MW to the electricity grid at the meter level. ln addition, the Flex Peak program is scalable
and with additional participants and more diversity among participants, could contribute more reduction as future
capacity requirements dictate.
lntroduction
Background
The Flex Peak Program is a voluntary demand response (DR) program available to ldaho Power's commercial
and industrial customers. The program's objective is to reduce the demand on ldaho Power's system during
periods of extreme peak electricity use. The program is designed to reduce peak load by paying a financial
incentive to customers to turn off or reduce electrical system load at their facilities during called events. The
program has a fixed payment amount of $3.25lkW per week of nominated load reduction (or actual load reduction
if an event was called) during the program season, and a variable payment amount of $0.16/kWh for energy
savings achieved during curtailment events after the third event.
The Flex Peak program provides customers with a notification two hours prior to the start of curtailment events via
phone and email. Events can be called from June 15h - August 15h anytime ftom 2 - 8pm and can last from 2 - 4
hours.
lmpact Evaluation Goals
ldaho Power contracted CLEAResult to complete an impact evaluation of the 2015 Flex Peak Program. This 2015
impact evaluation has two primary goals:
1. Determine and verify the demand reduction (MW) during 2015 curtailment events
2. Determine realization rate for each event
The results contained in this report will enable ldaho Power to better define the impact of the program on the
electricity grid and provide more accurate estimates of the program's load reduction in the future.
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CLEAResult
Methodology
The section below describes the data used to complete the impact evaluation, the sampling plan, and the
methodology for gathering and processing data, determining baseline, calculating the demand reduction, and
determining the curtailment event realization rates. Note that the methodology detailed below is aligned with the
program's baseline and demand reduction calculation methodology. Two additional baseline methodologies were
tested, with results reported in the accompanying memo "Flex Peak Demand Response Program 2015 lmpact
Evaluation: Alternative Methodologies."
Data Sources
CLEAResult conducted the 2015 Flex Peak impact evaluation through the use of two primary data sources:
interval data (hourly kW readings) and an event-specific participant list. The participant list included site lD,
nomination kW, and the customer's aggregated option. Some interval meter data included error codes for cases
where the source data was missing or estimated. See Table 1 for a list of error codes included in the data. Note
that no site lDs needed to be removed from the analyses due to the presence of errors codes because error
codes were not present during the curtiailment event or baseline periods.
Table 1. Error Code Key
Sampling Plan
The use of hourly interval metering data allowed the impact evaluation's sampling plan to be a census of program
participants (i.e. all participants were considered in the analysis).
Data Gathering and Processing
CLEAResult processed all data provided by ldaho Power using the analytics platform SAS@. The use of SAS@
created a consistent and appropriate data format for all three curtailment events. The interval metering data was
reviewed to identifrT the presence of error codes during the curtailment event period or in the baseline period,
however no occurrences were found.
Determine the Baseline
CLEAResult determined site-specific baselines by first identifying the three days with the greatest demand from
the previous ten non-weekend/holiday and non-curtailment days (hereto called comparison days). The greatest
demand was determined as the day with the highest average demand during the hours of 2pm - 8pm.
CLEAResult then determined each site's unadjusted baseline demand during the event timeframe by averaging
the demand for each hour across all three comparison days.
CLEAResult then calculated a day-of-adjustment (DOA) for each site. The DOA was calculated using the average
of hours 12pm and 1pm (hours 3 and 4 prior to the beginning of the curtailment period) for both the comparison
days and the event day. The DOA was calculated as a flat kW, and was capped al +l- 2oo/o of the value for the
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CLEAResult
same time period during the original baseline window. The DOA was applied to all baseline hours. This was done
to avoid the baseline being affected by participant action to prepare for the curtailment event (e.9. pre-cool the
building). This DOA approach was applied to each service location and summed to arrive at the program's
aggregate baseline.
Calculate Demand Reduction
CLEAResult calculated the demand reduction for each participant by subtracting its load during each hour of the
curtailment event from the participant's adjusted baseline load (determined in the previous steps). The hourly
demand reductions were then aggregated for all participants. The total event impact (both average and maximum
reduction) was calculated by aggregating each participant's results.
Determine Curtailment Event Realization Rate
CLEAResult determined the realization rates for each curtailment event by dividing the aggregate maximum
demand reductions calculated in the previous step by the total nominated load for the all participants included in
the analysis.
Findings
The section below presents the findings of the 2015 Flex Peak program impact evaluation, beginning with a
characterization of the sites enrolled in the program and ending with a presentation of the results of each
curtailment event. Note that numbers presented in tables are expressed in MW at meter level, unless otherwise
indicated. ldaho Power line losses are 9.7o/o for demand to convert from meter level to generation level load
reduction.
Partici pant Characterization
The 2015 Flex Peak program included 71 enrolled sites, accounting for an average of 24.5 nominated MW across
the three events. The 71 sites were accounted for by 38 unique customers.
Tabl6 2: Number of Sites by Processing Step
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CLEAResult
\Nhen site's nominated kW was averaged across the three events, the average nominated load reduction was
344.4 kW, while the median reduction was 175 kW As Figure 1 below depicts, the most common nominated load
reduction was in the 51-200 kW range, accounting for 42o/o of the sites.
Figure 1. Count of Sites by Nominated Reduction Group
o2o
o
cIoo
35
30
25
20
15
10
5
0
201-500 501 +51-200
Range of Nominated Load Reduction (kW)
C urtailment Event Results
Table 3 and Figure 3 below summarize the estimated demand reduction achieved during each of the three
curtailment events and the resulting realization rate. The maximum demand reduction achieved ranged from a low
of 13.3 MW for the August 4h event to a high of 23.3 MW for the July 21't event. The August 4h event's 13.3 MW
reduction resulted in a realization rate of 55.4o/o, while the July 31"t event's 23.3 MW reduction equated to a
96.6% realization rate. \Mren considered together, the three events had an average realization rate of 79.6%.
Table 3: Summary of Demand Reduction and Resulting Realization Rate (MW
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* Based on maximum reduction
We change the way people
Figure 2: Summary of Demand Reduction (MW
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Eo
5,0co
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June 30th
rAvg. Demand Reduction (MW)
July 21st August 4th
rMax Demand Reduction (MW)
CLEAResult
Figure 4 below presents the realization rate achieved by each site group. To calculate the results, each Site lDs
average load reduction (across three events) was divided by their average nomination across the three events.
Sites in the smallest group (0-50 kW of nominated load reduction) achieved the highest average realization rate
(137Yo), while the second largest group (201-500 kW of nominated reduction) achieved the lowest average
realization rale (640/o).
Figure 3. Average Realization Rate by Nominated Reduction Group
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160%
140Yo
120o/o
100o/o
80o/o
6QYo
40o/o
20o/o
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Range of Nominated Load Reduction (kW)
CLEAResult
June 30th Curtailment Event
Table 5 below breaks out demand reduction for each hour of the curtailment event. The hour between 6pm and
7pm experienced the largest total reduction (21.9 MW, 86.7% of the total nominated load).
Table 4: June 3dh Curtailment Event Results by Hour (MW)
Figure 5 below presents the load profile of the June 30th curtailment event and its baseline, graphically depicling
the results from Table 5 above. The black line during the curtailment event period depicts the level the
curtailment event energy load profile would have to reach in order to achieve a 100o/o realization rate.
Figure 4. June 30ih Curtailment Event Load Profile
- Energy usage for a given hour is reported in the time reading at the beginning of the hour. For example, energy usage from
4-5pm is depicted in the 4pm reading.
- The Baseline Energy and Cuftailment Event Energy lines do not intersect at the beginning of the event due to the Dayof-
Adjustment (DOA) being calculated pior to the event staft time.
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21.9
100
90
80
70
60
!so-
40
30
20
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CLEAResult
July 21st Curtailment Event
The second Flex Peak event was called in the third week of July. The July 21"t event achieved the highest
demand reduction results out of the three events.
Table 7 below breaks out demand reduction for each hour of the curtailment event by dispatch group. The hour
between 4pm and Spm experienced the largest total reduction (23.3 MW, 96.6% of the total nominated load).
Table 5: July 21"t Curtailment Event: Baseline Results by Hour (MW)
Figure 6 below presents the load profile of the July 21s curtailment event and its baseline, graphically depicting
the results from Table 7 above. The black line during the curtailment event period depicts the level the curtailment
event energy load profile would have to reach in order to achieve a 100o/o realization rate.
Figure 5. July 21"tCurtailment Event Load Profile
Nofes:
- Energy usage for a given hour is repofted in the time reading at the bqinning of the hour. For example, energy usage from
4-5pm is depicted in the 4pm reading.
- The Baseline Energy and Curtailment Event Energy lines do not intersect at the beginning of the event due to the Day-of-
Adjustment (DOA) being calculated prior to the event start time.
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90
80
70
60
50
Eoo
30
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10
EEEEEEEEEEEE(ECLCLOO.CLOO.O.OOCLrNC.{(v)tIO@NOO)O--Time
rBaseline Energy
-Curtailment
Event Energy
-100%
Realization Rate
CLEAResult
August 4th Gurtailment Event
The third Flex Peak event was called in the first week of August. The August 4th event saw the lowest demand
reduction out of the three events.
Table 9 below breaks out demand reduction for each hour of the curtailment event by dispatch group. The hour
between 6pm and 7pm experienced the largest total reduction (13.3 MW).
Table 6: August 4th Curtailment Event Results by Hour (MW)
Figure 7 below presents the load profile of the August 4h curtailment event and its baseline, graphically depicting
the results from Table 9 above. The black line during the curtailment event period depicts the level the curtailment
event energy load profile would have to reach in order to achieve a 100o/o realization rate.
Figure 6" August 4th Curtailment Event Load Profile
90
80
70
60
50
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30
20
10
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rBaseline Energy
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-100o/o
Realization Rate
Nofes:
- Energy usage for a given hour is repofted in the time reading at the beginning of the hour. For example, energy usage from
4-5pm is depicted in the 4pm reading.
- The Baseline Energy and Curtailment Event Energy lines do not intersect at the beginning of the event due to the Dayof-
Adjustment (DOA) being calculated pior to the event start time.
\A/hen considering the poor performance of the August 4th event, compared to the other two events, the reduced
realization rate can be singly attributed to a lack of performance by the site with the largest nominated load
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CLEAResult
reduction in the program. That site achieving a realization rate of 8olo in the August 4h event, compared to an
average of 113% across the first two events. Had the site's realization rate for the August 4h event been the
average of its realization rates from the first two events, the event's realization rate would've increased by 39.4o/o
to 94.8%.
Conclusions
The goals of the 2015 Flex Peak impact evaluation were to determine and verify the demand reduction (MW)
during curtailment events and determine the realization rate for each event.
CLEAResult completed analyses of curtailment events held on June 30th (4 - 8pm), July 21't (4 - 8pm), and
August 4'n (4 - 7pm). All three events included 71 unique sites, with the aggregate nominated load reduction
averaging 24.5 MW across the three events. The results of the analyses showed maximum demand reductions of
21.9,23.3, and'13.3 MW, respectively, forthe three events, and an average of 19.5 MW. The events achieved
realization rates of 86.7o/o,96.6%, and55.4%, respectively, averaging 79.60/o.
The results of the impact evaluation show that ldaho Power's 2015 Flex Peak program functioned as intended
and provided up to 23 MWto the electricity grid at the meter level. ln addition, the Flex Peak program is scalable
and with additional participants and more diversity among participants, could contribute more reduction as future
capacity requi rements dictate.
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