20161103Compliance Filing.pdf

LISA D. NORDSTROM
Lead Counsel
[e-mail]
November 3, 2016
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
RE: Case No. IPC-E-15-03
R~CEIVED
2016~0 -3 PM 4: 18
1 · . <J \ UBLIC , ,. ·· "'"' ~ ISSION 1 · .• : \..:\ .. :'i n
An IOACORP Company
2016 Annual Compliance Filing -Flex Peak Program End-of-Season Report
Dear Ms. Jewell:
In Order No. 33292, the Idaho Public Utilities Commission ("Commission") ordered Idaho
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.
If you have any questions regarding this filing, please contact Zach Harris at (208) 388-
2305 or [e-mail].
LDN:kkt
Enclosures
Very truly yours,
~~'1~
Lisa D. Nordstrom
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 3rd day of November 2016 I served a true and
correct copy the 2016 FLEX PEAK PROGRAM END-OF-SEASON REPORT upon the
following named parties by the method indicated below, and addressed to the following:
Commission Staff
Karl T. Klein
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-007 4
Industrial Customers of Idaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 2ih Street (83702)
P.O. Box 7218
Boise, Idaho 83707
Dr. Don Reading
6070 Hill Road
Boise, Idaho 83703
Idaho Conservation League
Benjamin J . Otto
Idaho Conservation League
71 O North 6th Street (83702)
P.O. Box 844
Boise, Idaho 83701
CERTIFICATE OF SERVICE - 1
Hand Delivered
__ U.S. Mail
__ Overnight Mail
FAX
_lL Email [e-mail]
__ Hand Delivered
U.S.Mail
__ Overnight Mail
FAX
_lL Email [e-mail]
[e-mail]
__ Hand Delivered
U.S. Mail
__ Overnight Mail
__ FAX
_lL Email [e-mail]
__ Hand Delivered
U.S. Mail
__ Overnight Mail
FAX
_lL Email [e-mail]
F ECC:IVED
2016 Flex Peak Program
End-of-Season Annual Report
November 3, 2016
An IDACORP Company
Table of Contents
Table of Contents ............................................................................................................. i
List of Tables ................................................................................................................... ii
List of Figures .................................................................................................................. ii
Introduction ...................................................................................................................... 1
Background ..................................................................................................................... 1
Program Details ......................................................................................................... 1
Program Incentives .................................................................................................... 2
Program Results .............................................................................................................. 3
Participation ............................................................................................................... 4
Operations .................................................................................................................. 7
Load Reduction Analysis ............................................................................................ 8
Program Costs ......................................................................................................... 13
Benefit-Cost Analysis ............................................................................................... 14
Customer Satisfaction Results ....................................................................................... 14
Program Activities for 2017 ............................................................................................ 15
Conclusion ..................................................................................................................... 16
Flex Peak Program Report Pagei
Table 1.
Table 2.
Table 3.
Table 4.
Idaho Power
List of Tables
2016 Incentive Structure ............................................................................ 3
Realization Rate per Event -2016 ............................................................. 9
Realization Rate per Participant for Each Event -2016 ........................... 11
Annual Program Costs -2016 .................................................................. 14
List of Figures
Figure 1. Idaho Power Service Area .......................................................................... 5
Figure 2. 2016 Site Participation by Region Based on Nomination ........................... 6
Figure 3. 2016 Site Participation by Business Type Based on Nomination ............... 7
Figure 4. Range of Nominated Load Reduction (kW) ................................................ 9
Figure 5. Average Versus Max Reduction Achieved per Event ............................... 10
Figure 6. Average Realization Rate by Each Nomination Size Class ...................... 13
Attachments
CLEAResult Impact Evaluation
Page ii Flex Peak Program Report
This page left blank intentionally.
Flex Peak Program Report Page iii
Idaho Power Company
Introduction
The Flex Peak Program ("Program") has been operated by Idaho Power Company
("Idaho Power" or "Company") for two years. Prior to 2015, a similar demand response
("DR") program for commercial and industrial customers was operated by a third-party
vendor. The results presented in this report are from the Company's second year of
operating the Program. In its second year, the Program experienced a growth in
participation (both in number of participants and size diversity), increased load
reduction, high realization rates, and improved customer satisfaction. There were 67
new sites added and the increased participation resulted in the highest hourly load
reduction for the season of 41.5 megawatts ("MW"). The average realization rate for the
three load reduction events that occurred in the 2016 Program season was 98.8
percent. Customer satisfaction remained high with survey results indicating a
satisfaction level of 3.6 out of 4. Enrollment in the Program increased for the season
and 97 percent of previous sites re-enrolled in the Program. The total Program costs
through October 1, 2016, were $744,955. The cost of having this resource available
was $17.95 per kilowatt ("kW") based on (1) the maximum demand reduction achieved
on July 26, 2016, of 41.5 MW for the season compared to $39.48 per kW and (2) the
maximum demand reduction of 39.6 MW under the prior commercial and industrial DR
program in 2014.
Background
The Program is a voluntary 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 Idaho Power's other
DR programs, Irrigation Peak Rewards and the Residential Air Conditioner Cycling
Program, has helped to delay the need to build supply-side resources.
As part of Order No. 33292, the Idaho Public Utilities Commission ("Commission")
ordered the Company to file an annual end-of-season report that should include the
number of participants, number of participating sites, 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.
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. and 8 p.m. on
non-holiday weekdays.
Customers with the ability to nominate or provide load reduction of at least 20 kW are
eligible to enroll in the Program. The 20 kW threshold allows a broad range of
Flex Peak Program Report Page 1
Idaho Power Company
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 parameters of the Program are in Schedule 82,1 and include the following:
• A minimum of three load reduction events will occur each program season.
• Events can occur any weekday, excluding July 4, between the hours of 2 p.m.
and 8 p.m.
• Events can occur up to four hours per day and up to 15 hours per week, but no
more than 60 hours per program season.
• Idaho Power will provide notification to participants two hours prior to the
initiation of an event.
• If prior notice of a load reduction event has been sent, Idaho Power can choose
to cancel the event and notify participants of cancellation 30 minutes prior to the
start of the event.
Program Incentives
The 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. Incentives are calculated using Idaho Power's interval metering billing
data and participants received the incentive checks within 30 days of the end of the
Program season. Participants were mailed their incentive checks by September 15 in
2016. The incentive structure offered for the 2016 season is listed in Table 1.
1 Idaho Power Company, I.P.U.C. No. 29, Tariff No. 101, Schedule 82
Page2 Flex Peak Program Report
Idaho Power Company
Table 1.
Fixed-Capacity Payment Rate* Variable Energy Payment Rate**
$3.25 per Weekly Effective kW Reduction $0.16 per kWh (Actual kW x Hours of Event)
Adjustment for first three events Adjustment after first three events
$2.00 per kW not achieved up to nomination $0.25 per kW not achieved up to nomination
*To be prorated for partial weeks **Does not apply to first three Program events
Program Results
The results reported throughout this report are at the generation level and system
losses have been taken into account. Idaho Power called three load reduction events in
2016. The first event occurred on June 30, the second on July 26, and the third on July
28. The maximum realization rate during the season was 120 percent and the average
for all three events combined was 98.8 percent. 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 26 event at 41.5 MW.
Participants had a committed load reduction of 34.2 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 65 participants totaling 137 sites. Out
of the total number of sites, 70 sites participated in the 2015 season, and 67 sites were
newly added in 2016. There were two sites that did not re-enroll from the 2015 season.
One of the sites closed down and the other site felt the program did not fit its business
operations. The committed load reduction at the end of the season was 33.9 MW,
which was achieved by 137 facility sites.
The first event was called on Thursday, 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 34.2 MW. The
average load reduction was 32.8 MW. The highest hourly load reduction was 34.8 MW
during hour three. The realization rate for this event was 96 percent.
The second event was called on Tuesday, July 26. Participants were notified at 2 p.m.
for a four hour event from 4-8 p.m. The total nomination for this event was 33.5 MW.
The average load reduction was 40.3 MW. The highest hourly load reduction was 41.5
MW during hour one. The realization rate for this event was 120 percent.
The third event was called on Thursday, July 28. Participants were notified at 2 p.m. for
a four hour event from 4-8 p.m. The total nomination for this event was 33.9 MW. The
average load reduction was 27 MW. The highest hourly load reduction was 27.7 MW
during hour one. The realization rate for this event was 80 percent. The lower
realization rate for this event was primarily due to some larger sites that underperformed
or reduced participation as a result of having two events in one week.
Flex Peak Program Report Page3
Idaho Power Company
Participation
Idaho Power utilized direct customer mailings to encourage both past participants and
new customers to enroll in 2016. Idaho Power launched a marketing campaign early in
2016 using Customer Representatives to recruit new participants. The Company also
developed new Program literature, as well as a new Program brochure. Potential
commercial and industrial participants were identified early winter with field visits from
Idaho Power Customer Representatives and had a follow up communication in early
spring. This marketing campaign focused on identifying customer characteristics that
make for successful Program participants and also highlighted available incentive
amounts based on customers load size.
The Program was jointly marketed along with Idaho Power's energy efficiency
programs. In addition, the marketing campaign goals were to increase the number and
size diversity (in terms of nominated load reduction) of sites enrolled. By having a
larger diversity of customer sizes enrolled, the Program should be less prone to volatility
in its realization rate. The Company utilized Customer Representative support for the
sites with the largest nominated load reduction with the goal of ensuring all large sites
were able to participate when load reduction events were called. The Company also
used several advertisements in the Energy at Work spring edition of Idaho Power's
quarterly newsletter and included an article promoting the Program in its commercial
and industrial newsletter, Energy Insights.
Idaho Power implemented an educational campaign with both currently enrolled
participants and potential new participants to inform them of DR strategies with the goal
of refining the amount of nominated load reduction from each site to more realistically
align with load reduction potential.
The number of sites enrolled in the Program for 2016 was 137. Of those 137 sites, 67
were newly enrolled during the 2016 season. The total number of sites enrolled in 2016
increased by approximately 90 percent compared to 2015.
Page4 Flex Peak Program Report
Idaho Power Company
Figure 1 represents Idaho Power's service area divided into five regional areas:
Western, Canyon, Capital, Southern, and Eastern.
Figure 1.
Flex Peak Program Report Pages
Idaho Power Company
Figure 2 represents the 137 sites that were enrolled in 2016 and their distribution by
Idaho Power's regional service areas.
Figure 2.
Page6
2016 Site Participation by Region Based on
Nomination
Flex Peak Program Report
Idaho Power Company
Figure 3 represents the 137 sites that were enrolled in 2016 and their diversity based on
business type.
Figure 3.
2016 Site Participation by Business Type Based
on Nomination
Light Industrial\
6% \
Asphalt, Concrete,
Gravel
29%
Agriculture
5% Commercial Property
8%
Other
3%
Operations
Interval metering data provides Idaho 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, Idaho Power provided participants post-event
usage reports that showed hourly baseline, actual usage, and reduction during an
event. The data assisted participants in refining their nomination for future events. This
data also provides information useful in determining which participating sites may have
opportunity to provide more reduction or change their reduction strategy if nomination
amounts were not achieved.
Flex Peak Program Report Page 7
Idaho Power Company
Load Reduction Analysis
Potential load reduction impacts in 2016 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 goal of the
impact evaluation was to calculate load reduction in MW under Idaho Power's
methodology 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. Individual 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 2-3 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 percent of the original baseline 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.
The average nominated kW per site was 247 kW, while the average load reduction was
244 kW per site. The 137 enrolled sites nominated an average of 33.8 MW across the
three events and included 65 unique participants. The average number of sites enrolled
per participant was 2.1.
As Figure 4 below depicts, the most common nominated load reduction was in the 0-50
kW range, accounting for 40 percent of the sites. The 0-50 kW group accounted for 41
of the 67 new sites, which is 61 percent of the new site participation. These results
indicate that expanding the Program availability to smaller customers has been
successful.
Page8 Flex Peak Program Report
Idaho Power Company
Figure 4.
Range of Nominated Load Reduction (kW)
60
55 55
so
"' 45 ,! 40
vi 35 •2016 't,,,
0 30 •2015 ~ 25 5 20
U 15
10
5
0
0-50 51-200 201-500 501+
Nominated amount
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 2016 based on average load reduction per event.
Table 2.
Curtailment Event Nominated Average Max Demand Realization
Event Timeframe Demand Demand Reduction Rate*
Reduction Reduction (MW) (MW)
June 30 4-8pm 34.2 32.8 34.8 95.9%
July 26 4-8 pm 33.5 40.3 41.5 120.3%
July 28 4-8 pm 33.9 27.0 27.7 79.6%
Average 33.8 33.4 34.7 98.8%
* Based on average reduction
Figure 5 below shows both the average and peak demand reduction achieved during
each of the three curtailment events. The maximum demand reduction achieved
ranged from a low of 27.7 MW for the July 28 event to a high of 41.5 MW for the July 26
event. The July 28 event's 27.7 MW reduction achieved a realization rate of 79.6
percent, while the July 26 event's 41.5 MW reduction achieved a realization rate of 120
percent. When considered together, the three events had an average realization rate of
98.8 percent.
Flex Peak Program Report Page9
Idaho Power Company
The realization rate analysis shows that maximum load reduction was achieved in the
middle of the Program season during the second event, which correlates with Idaho
Power's overall summer system peak.
Figure 5.
Average Versus Max Reduction Achieved per
Event 45 -.---~~~~~~~~~~~~~~~~~~~~~
-3: 35
~ 30 -t: 25
; 20
Cl, 15 cu ~ 10
5
0
Page 10
June 30th July 26th
Event Date
July 28th
• Average Demand
Reduction
• Max Demand
Reduction
Flex Peak Program Report
Idaho Power Company
Table 3 shows the realization rate for each participant in the Program for 2016.
Table 3.
Season
Participant June 30 Event July 28 Event July 28 Event Av: Number Realization Realization Realization Real
1 170% 149% 164% 161%
2 72% 77% 62% 70%
3 8% 64% 67% 46%
4 82% 86% 97% 88%
5 95% 27% 50% 57%
6 118% 100% 74% 97%
7 138% 431% 38% 202%
8 118% 124% 120% 121%
9 34% 92% 158% 95%
10 203% 216% 38% 152%
11 79% 176% 93% 116%
12 27% 0% 0% 9%
13 58% 65% 58% 60%
14 68% 87% 87% 81%
15 96% 71% 93% 87%
16 76% 71% 76% 75%
17 59% 5% 14% 26%
18 92% 47% 44% 61%
19 86% 73% 119% 93%
20 72% 153% 112% 112%
21 231% 153% 150% 178%
22 54% 149% 194% 132%
23 78% 98% 96% 91%
24 138% 93% 101% 111%
25 23% 6% 27% 19%
26 72% 64% 81% 72%
27 173% 212% 182% 189%
28 79% 3% 3% 28%
29 54% 66% 60% 60%
30 2% 60% 89% 50%
31 111% 139% 132% 127%
32 227% 264% 31% 174%
33 19% 228% 229% 158%
34 62% 221% 84% 122%
35 83% 195% 229% 169%
36 100% 107% 123% 110%
Flex Peak Program Report Page 11
Idaho Power Company
37 320% 1955% 195% 823%
38 196% 106% 25% 109%
39 13% 72% 87% 57%
40 83% 88% 100% 90%
41 70% 62% 68% 67%
42 32% 0% 10% 14%
43 224% 30% 170% 141%
44 81% 112% 213% 135%
45 131% 117% 24% 91%
46 25% 104% 99% 76%
47 20% 11% 32% 21%
48 0% 316% 22% 113%
49 320% 298% 420% 346%
50 99% 69% 66% 78%
51 0% 0% 0% 0%
52 91% 68% 51% 70%
53 106% 112% 104% 107%
54 106% 100% 85% 97%
55 25% 11% 2% 13%
56 108% 24% 47% 60%
57 42% 87% 10% 46%
58 72% 58% 68% 66%
59 103% 92% 87% 94%
60 66% 65% 63% 65%
61 174% 135% 192% 167%
62 113% 302% 60% 158%
63 96% 92% 60% 83%
64 133% 74% 88% 98%
65 52% 19% 73% 48%
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 at 130 percent. The 0-50 kW group had the largest portion of sites enrolled in
the Program, totaling 55 sites that accounted for 40 percent of total enrolled sites. The
second smallest size class, 51-200 kW, had 48 sites enrolled and achieved the lowest
average realization rate at 73 percent. The 201-500 kW group had 28 sites enrolled
and achieved a realization rate of 111 percent. The largest size class, 501 + kW, had six
sites enrolled and achieved a realization rate of 95 percent. Idaho Power will continue
to work with all customer segments to help refine nominations to align closer with
realistic reduction opportunities which will increase the realization rate specific to this
group.
Page 12 Flex Peak Program Report
Idaho Power Company
Figure 6 below represents the realization rate achieved by each nomination group,
averaged across all three events. To calculate the results, each site's average load
reduction (across three events) was divided by its average nomination across the three
events and then grouped by size.
Figure 6.
Average Realization Rate by Each Nomination
Size Class
l40% ~--1~30=%~0-----------------------
120% +--
111100% --.. IO ~ 80% +--
0 ~ 60% -­.!::!
iii ~ 40% +--
20% -+---
0% ~-
Program Costs
0-50 51-200 201-500 501+
Range of Nominated Load Reduction (kW}
Program costs totaled $744,955 through October 1, 2016. Incentive payments were the
largest expenditure comprising 86 percent of total costs. The incentive payments were
fixed-capacity payments resulting from the three events called during the 2016 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 for 2016 were $17.95 per kW based on the maximum demand reduction of 41.5
MW, or $22.30 per kW, based on average load reduction for the season of 33.4 MW.
Table 4 below displays the 2016 Program costs by category.
Flex Peak Program Report Page 13
Table 4.
Item
Materials & Equipment
Contract Services
Marketing & Administration
Incentive payments
Total
Benefit-Cost Analysis
2016 Program Costs
$951
$19,836
$84,557
$639,611
$744,955
Idaho Power Company
The Benefit-Cost analysis for the Program is based on a 20-year model that uses
financial and demand-side management alternate cost assumptions from the 2015
Integrated Resource Plan ("IRP"). As part of the public workshops in conjunction with
Case No. IPC-E-13-142, Idaho Power and other stakeholders agreed in a settlement
agreement ("Settlement") on a new method for valuing DR. The Settlement,
as approved in Commission Order No. 32923, defined the annual cost of operating
Idaho Power's three DR programs for the maximum allowable 60 hours must be no
more than $16.7 million. This amount was reevaluated in the 2015 IRP, as agreed upon
in the Settlement, to be $18.5 million.
In 2016, the preliminary cost estimate of operating all three of Idaho Power's DR
programs was $8.9 million through October 1, 2016. It is estimated that if the three
programs were dispatched for the full 60 hours, the total costs would have been
approximately $12.2 million which is below the total annual costs agreed upon in the
Settlement as revised in the 2015 IRP.
Idaho Power's cost-effectiveness for DR programs is updated annually. A more
comprehensive cost-benefit analysis will be included in the Company's 2017 Demand­
Side Management Annual Report when all the data will be available.
Customer Satisfaction Results
Idaho 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 and could be used to improve the Program in future years.
Questions were based on a four point rating scale. Idaho Power received feedback
from 34 of the 64 (excluding Idaho Power) participants enrolled for a response rate of
2 In the Matter of the Continuation of Idaho Power Company's A/C Cool Credit, Irrigation Peak
Rewards, and Flexpeak Demand Response Programs for 2014 and Beyond
Page 14 Flex Peak Program Report
Idaho Power Company
53 percent. The results of the survey were favorable and participants were satisfied, as
shown below:
• When asked, how satisfied were you with the enrollment process, 4 being "very
satisfied," the average response was 3.8.
• When asked, how satisfied were you with the notification process, 4 being "very
satisfied," the average response was 3.4.
• When asked, how satisfied were you with the program support from Idaho Power, 4
being "very satisfied," the average response was 3.6.
• When asked, how satisfied were you with the post event performance data, 4 being
"very satisfied," the average response was 3.4.
• When asked, how satisfied were you with the timeliness of receiving the incentive
payment, 4 being "very satisfied," the average response was 3.6.
• When asked, how satisfied were you with the incentive amount, 4 being "very
satisfied," the average response was 3.5.
• When asked, how satisfied were you with the ability to reduce demand in your facility
during scheduled events, 4 being "very satisfied," the average response was 3.4.
• When asked, overall how satisfied are you with Idaho Power's Flex Peak Program, 4
being "very satisfied," the average response was 3.8.
• When asked, how likely would you be to re-enroll in the Flex Peak Program in the
future, 4 being "very likely," the average response was 3.9.
Program Activities for 2017
Recruitment efforts for the 2017 season will begin the first quarter of 2017 to encourage
participation. Idaho Power will meet with existing participants during the off-season to
discuss past-season performance and upcoming season details.
Similar to 2016, the Program will be jointly marketed along with Idaho Power's
applicable energy efficiency programs. The Company will utilize its Customer
Representatives to retain the currently enrolled sites and encourage new sites to
participate.
For the upcoming season, Idaho Power plans to focus on retaining current enrolled
customers and enroll new customers that show interest and are a good fit for the
Program. However, the Company does not plan to actively market the program like it
did in 2016 because the capacity from this past season remained around 35 MW, which
is in line with the desired Program capacity set forth in the Settlement agreement.
Flex Peak Program Report Page 15
Idaho Power Company
Conclusion
The Program is successful in achieving DR load reduction at a lower cost to customers
when compared to the former commercial and industrial DR program. When analyzing
the Program at the generation level, industrial and commercial customers have made
noteworthy contributions to Idaho Power's DR programs. The Program currently
contributes approximately 10-12 percent of the Company's overall DR portfolio and can
be relied on to provide dispatchable load reduction to the electrical grid. The Program
had a total of 137 sites reducing peak demand by 41 .5 MW with 67 new sites enrolling
in 2016. The Program retained 97 percent of past enrolled sites (70 of 72) from the
2015 season. Load reduction event results showed maximum load reductions of 34.8,
41.5, and 27.7 MW, respectively, for the three events, and an average of 34.7 MW. The
events achieved realization rates of 96 percent, 120 percent, and 80 percent,
respectively, averaging 98.8 percent. The total Program costs for 2016 through October
1 were $744,955. The cost of having this resource available was $22.30 per kW based
on average reduction for the season. The Program continues to enjoy high customer
satisfaction results among participants with average survey responses at 3.6 on a scale
of 1 to 4.
Page 16 Flex Peak Program Report
~ ----··~--·-----
CLEAResult
Flex Peak Demand Response Program
2016 Impact Evaluation
October 2016
PREPARED BY CLEAResult
PREPARED FOR Idaho Power Company
REPORTING PERIOD June 15th -August 15th, 2016
We change the way people use energy™
0
CLEAResult
Table of Contents
Executive Summary .................................................................................................................................................. 2
lntroduction ............................................................................................................................................................... 2
Background ....................................................................................................................... : ......................................... 2
Impact Evaluation Goals ............................................................................................................................................. 2
Methodology ............................................................................................................................................................... 2
Findings ..................................................................................................................................................................... 4
Participant Characterization ....................................................................................................................................... 4
Curtailment Event Results .......................................................................................................................................... 5
Conclusions .............................................................................................................................................................. 9
List of Tables
Table 1. Error Code Key ............................................................................................................................................ 3
Table 2: Number of Sites by Processing Step ........................................................................................................... 4
Table 3: Summary of Demand Reduction and Resulting Realization Rate (MW) ..................................................... 5
Table 4: June 30th Curtailment Event Results by Hour (MW) .................................................................................... 6
Table 5: July 26th Curtailment Event: Baseline Results by Hour (MW) .................................................................... 7
Table 6: July 28th Curtailment Event Results by Hour (MW) .................................................................................... 8
List of Figures
Figure 1. Summary of Demand Reduction (MW) ...................................................................................................... 5
Figure 2. June 30th Curtailment Event Load Profile ................................................................................................... 6
Figure 3. July 26th Curtailment Event Load Profile .................................................................................................... 7
Figure 4. July 28th Curtailment Event Load Profile ................................................................................................... 8
We change the way people use energy TM
CLEAResult
Executive Summary
Idaho Power Company contracted CLEAResult to complete an impact evaluation of the 2016 Flex Peak Program,
a voluntary demand response (DR) program that has been available to Idaho Power's commercial and industrial
customers. 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 26th (4-8pm), and July 28th
(4-8pm), 2016. The results of the curtailment event analyses showed maximum demand reductions of 31.7, 37.8,
and 25.3 MW, respectively, for the three events, and an average of 30.4 MW at the meter level. The events
achieved realization rates of 96.0%, 120.8%, and 79.5%, respectively, averaging 98.8%.
The results of the impact evaluation show that Idaho Power's 2016 Flex Peak Program functioned as intended
and provided up to 37.8 MW to the electricity grid at the meter level. In 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.
Introduction
Background
The Flex Peak Program is a voluntary demand response (DR) program available to Idaho Power's commercial
and industrial customers. The program's objective is to reduce the demand on Idaho 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 tum off or reduce electrical system load at their facilities during called events. The
program has a fixed payment amount of $3.25/kW 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, text message and email. Events can be called from June 15th -August 15th anytime from 2 -8pm and
can last from 2 - 4 hours.
Impact Evaluation Goals
Idaho Power contracted CLEAResult to complete an impact evaluation of the 2016 Flex Peak Program. This 2016
impact evaluation has two primary goals:
1. Determine and verify the demand reduction (MW) during 2016 curtailment events
2. Determine realization rate for each event
The results contained in this report will enable Idaho 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.
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. Throughout this report the event reduction is calculated using
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customers metering data. (meter-level). Actual reductions seen by the Idaho Power system would be larger if
distribution/transmission line losses of 9.76% were included.
Data Sources
CLEAResult conducted the 2016 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 ID,
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.
Table 1. Error Code Key
Error Code Description
1
9
Q
Sampling Plan
Power Outage
Missing Reading
Estimated Reading
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 Idaho 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 identify the presence of error codes during the curtailment event period or in the baseline period, and
two occurrences were found in the second event, which lead to those sites being excluded from the analysis.
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 1 pm (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 at +/-20% of the value for the
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.g. pre-cool the
building). This DOA approach was applied to each service location and summed to arrive at the program's
aggregate baseline.
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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. Note that to maintain consistency with the
program's methodology for calculating demand reduction estimates, participants' hourly demand reduction
estimates that resulted in net load increases were zeroed out. 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 2016 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, unless otherwise indicated.
Participant Characterization
The 2016 Flex Peak Program included 137 enrolled sites, accounting for an average of 30.8 nominated MW
across the three events. The 137 sites were accounted for by 65 unique customers.
Table 2: Number of Sites by Processing Step
Curtailment Event Nominated MW Count of Total Count of Sites Percent of Total
Sites Analyzed Sites Analyzed
June 3Cf' 31.1 137 137 100%
July 2e!' 30.5 137 135 98.5%
July 28~ 30.9 137 137 100%
- -
Average 30.8 137 136 100%
-
When site's nominated kW was averaged across the three events, the average nominated load reduction was 220
kW, while the median reduction was 90 kW.
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Curtailment Event Results
Table 3 and Figure 2 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 25.3 MW for the July 28th event to a high of 37.8 MW for the July 26th event. When considered together, the
three events had an average realization rate of 98.8%.
Table 3: Summary of Demand Reduction and Resulting Realization Rate (MW)
June 301h 4-8pm 31.1 29.9 31 .7 96.0%
July261h 4-8pm 30.5 36.8 37.8 120.8%
------t i July 2e1t1 4-8pm 30.9 24.6 I 25.3 79.5%
Average 30.8 30.4 31.6 98.8%
* Based on average reduction
Figure 1. Summary of Demand Reduction (MW)
40 -
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ftl
E 10 GI 0 5
Jun 30 Jul26 Jul28
• Avg Demand Reduction (MW) • Max Demand Reduction (MW)
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CLEAResult
June 30th Curtailment Event
Table 4 below breaks out demand reduction for each hour of the curtailment event. The hour between 6pm and
7pm experienced the largest total reduction (31. 7 MW).
Table 4: June 30th Curtailment Event Results by Hour (MW)
Figure 2 below presents the load profile of the June 301h curtailment event and its baseline, graphically depicting
the results from Table 4 above.
Figure 2. June 30th Curtailment Event Load Profile
Notes:
160
140
120
100
80
60
40
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E l1I E a. N
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E a. (")
Baseline Ener
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-curtailment Event Ener
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E a. 0
-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 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. The DOA 's +l-20% cap results in the baseline energy not
intersecting with the curtailment event energy during the period the DOA is calculated.
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July 26th Curtailment Event
The second Flex Peak event was called in the last week of July. The July 26th event achieved the highest demand
reduction results out of the three events.
Table 5 below breaks out demand reduction for each hour of the curtailment event. The hour between 4pm and
5pm experienced the largest total reduction (37.8 MW).
Table 5: July 26th Curtailment Event: Baseline Results by Hour (MW)
Figure 3 below presents the load profile of the July 26th curtailment event and its baseline, graphically depicting
the results from Table 5 above.
Figure 3. July 26'" Curtailment Event Load Profile
160
140
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100
80
60
40
20
E ro E a. N
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Time
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Baseline Energy -curtailment Event Energy
Notes:
E a. 0)
E a. 0
-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 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. The DOA 's +/-20% cap results in the baseline energy not
intersecting with the curtailment event energy during the period the DOA is calculated.
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July 28th Curtailment Event
The third Flex Peak event was called two days after the second event. The July 28th event saw the lowest
demand reduction out of the three events.
Table 6 below breaks out demand reduction for each hour of the curtailment event. The hour between 4pm and
5pm experienced the largest total reduction (25.3 MW).
Table 6: July 28th Curtailment Event Results by Hour (MW)
Figure 4 below presents the load profile of the July 28th curtailment event and its baseline, graphically depicting
the results from Table 6 above.
Figure 4. July 28th Curtailment Event Load Profile
160
140
120
100
! 80
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40
20
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(1J
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Baseline Energy -curtailment Event Energy
Notes:
E a. Ol
E a. 0 ..-
-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 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. The DOA's +/-20% cap results in the baseline energy not
intersecting with the curtailment event energy during the period the DOA is calculated.
When considering the relatively poor performance of the July 28th event compared to the other two events, the
reduced realization rate can be attributed to 22 low performing sites (realization rate <10%) and a lack of
performance by the site with the largest nominated load reduction in the program. Had the realization rates for
these underperforming sites been 100%, the event's realization rate would've increased by 14.9% to 94.4%.
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Conclusions
The goals of the 2016 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 26th (4 -8pm), and July
28th (4 -8pm). The events had an average of 136 unique sites, with an average load reduction of 30.4 MW
across the three events. The results of the analyses showed maximum demand reductions of 31 .8, 37.8, and 25.3
MW, respectively, for the three events, and an average of 31 .6 MW. The events achieved realization rates of
96.0%, 120.8%, and 79.5%, respectively, averaging 98.8%.
The results of the impact evaluation show that Idaho Power's 2016 Flex Peak Program functioned as intended
and provided up to 38 MW to the electricity grid at the meter level. In 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.
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