20191101Compliance Filing.pdf

SIffi*.RTCEIVED
lili ll0Y - I Pl't 2: l8
I ir';i- ,; .-'i--u .ir.litiSlON
An |DACORp COmpanV
November 1,2019
VIA HAND DELIVERY
Diane Hanian, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, ldaho 83714
RE: Case No. IPC-E-15-03
2019 Annual Compliance Filing - Flex Peak Program End-of-Season Report
Dear Ms. Hanian
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 three (3) 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 Regulatory Analyst Paul
Goralski at [phone] or [e-mail].
Sincerely,
Lisa D. Nordstrom
Lead Counsel
lnordsf [e-mail]
LDN:kk
Enclosure
VL^u*rA^-.
Lisa D. Nordstrom
Lead Counsel
PO. Bor 70 (83707)
l22l W. ldaho St.
8oise, lO 83702
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 1"tday of November2019 lserved a true and
correct copy the 2019 FLEX PEAK PROGRAM END-OF-SEASON ANNUAL REPORT
upon the following named parties by the method indicated below, and addressed to the
following:
Commission Staff
Karl T. Klein
Deputy Attorney General
ldaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, ldaho 837 20-007 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
Benjamin J. Otto
ldaho Conservation League
710 North 6th Street
P,O. Box 844
Boise, lD 83701
_ Hand Delivered
_U.S. Mail
_Overnight Mail
FAXX Ema il karl.klein@p uc.idaho.qov
_Hand Delivered
_ U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
qreq@ richardsonadams-com
0
Ktm y Towell utive Assistant
_Hand Delivered
_ U.S. Mail
_Overnight Mail
_FAXX Email dread inq@m indsprinq.com
_Hand Delivered
_ U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
An loAcoRP company
2019 FIex Peak Program
End-of-Season Annual Report
November 1 . 2019
Table of Contents
Table of Contents ,i
ii
ii
1
1
2
3
3
4
8
I
List of Tables
List of Figures
lntroduction
Background
Program Details
Program lncentives
Program Results...... .. .
Participation .... .. , .. ,
Operations.
Load Reduction Analysis .. ..
Program Costs 14
15
16
16
17
Benefit-Cost Analysis
Customer Satisfaction Results
Program Activities for 201 9..........
Conclusion. .
Flex Peak Program Repo(Page i
ldaho Power
List of Tables
Table 1.
Table 2.
Table 3.
Table 4.
201 9 lncentive Structure. .......J
Realization Rate per Event - 2019.10
12
15
Realization Rate per Participant for Each Event - 2019.
Annual Program Costs - 2019...
List of Figures
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Figure 6.
ldaho Power Service Area b
2019 Site Participation by Region Based on Nomination .7
.8
10
11
14
2019 Site Participation by Business Type Based on Nomination
Range of Nominated Load Reduction (kW) , , . , .. ... , ........ .
Average Versus Max Reduction Achieved per Event.........
Average Realization Rate by Each Nomination Size C|ass.......,
Page ii Flex Peak Program Report
ldaho Power Company
lntroduction
The Flex Peak Program ("Program") has been operated by ldaho Power Company
("ldaho Power" or "Company") since 2015. The Program is a voluntary demand response
("DR") program available to large commercial and industrial customers that can reduce
their electrical energy loads for short periods during summer peak days. By reducing
demand on extreme system load days, the Program reduces the amount of generation
and transmission resources required to serve customers. This Program, along with ldaho
Power's other DR programs, lnigation Peak Rewards and the Residential A,/C Cool Credit
Program, have helped delay the need to build supply-side resources.
The results presented in this report are from the 2019 Program season, the Company's
fifth year of operating the Program. ln its fifth year, the Program maintained similar load
reduction and realization rates as the prior year (2018). There were ten new sites added,
and overall participation resulted in the highest hourly load reduction for the season of 31
megawatts (.'MW'). The average realization rate for the three load reduction events that
occurred in the 2019 Program season was 77 percent. Enrollment in the Program
increased slightly for the 2019 Program season and 96 percent of previously participating
sites re-enrolled in the Program. The total Program costs through October 1, 2019 were
$606,129. The cost of having this resource available was $19.55 per kilowatt ("kW")
based on the maximum demand reduction of 31 MW achieved on July 22,2019.
Background
ln 2015, the Company requested approval to implement the Flex Peak Program as an
ldaho Power operated program. The ldaho Public Utilities Commission ('lPUC")
approved the Company's request in Order No. 33292,1 and the Public Utility Commission
of Oregon ('OPUC) accepted the proposal from Advice No, 15-03.2 Prior to 2015, a
similar DR program for commercial and industrial customers was operated by a third-
party vendor.
As part of Advice No. 15-03, the OPUC adopted Staffs recommendation that the
Company file an annual end-of-season report with information regarding the Program.
The Company was also directed by the IPUC in Order No. 33292 to file an annual end-
of-season report detailing the results of the Program. ln compliance with the reporting
requirements, the annual end-of-season report includes the following:
o Number of participating customers. Number of participating sites. MW of demand response under contract
1 ln the Matter of ldaho Power's Company's Application for Approval of New Tariff Schedule 82, A
Commercial and lndustial Demand-Response Program (Flex Peak Program), Case No. IPC-E-15-03,
Order No. 33292 (May 7 ,20151.
2Schedule 76, Flex Peak Program, Docket No. ADV 7/Advice No. 15-03 (approved April 28, 2015).
20'19 Flex Peak Program Report Page 1
ldaho Power Company
. MW of demand response realized and incented per dispatch. Percent of nominated MW achieved in each dispatch event by participantr Cost analysis of the Program. Number of events called. Total load dropped for each eventr Event duration. Total capacity payments madeo Total energy payments made. Number of customers who failed to meet their load. Number of Program applications denied due to Program subscription limito Benefits identified with each dispatch of the resource. Assessment of whether the trigger or dispatch price is properly set to utilize the
asset most oftenr Participantattrition. lssues the utility has identified meeting requests to participate in the Program. Changes in baseline methodology taken or anticipated. lmprovements ldaho Power and the Program might benefit from
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 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 763 in Oregon and Schedule 824 in ldaho,
and include the following:
r 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
8pmo 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.. ldaho Power will provide notification to participants two hours prior to the initiation
of an event.
3 ldaho Power Company, P.tl.C. ORE. No. E-27, Schedule 76.
4 ldaho Power Company, l.P.U.C. No. 29, Tariff No. 101, Schedule 82
Page 2 2019 Flex Peak Program Report
ldaho Power Company
o lf prior notice of a load reduction event has been sent, ldaho 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. lncentives are calculated using ldaho Power's interval metering billing data and
participants were issued the incentives within 30 days of the end of the Program season.
Participants can elect to have their incentive checks mailed or their ldaho Power account
credited within the 30 days. The incentive structure offered for the 2019 season is listed
in Table 'l .
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)
Adiustment for first three events
$2.00 per kW not achieved up to nomanation
Adlustment after finst three events
50.25 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 presented throughout this report are at the generation level and system losses
have been considered. ldaho Power called three load reduction events in 2019. The first
event occurred on July 12, the second on July 22, and the third on August 6. The
maximum realization rate achieved during the season was 86 percent during the event
on August 6 and the average for all three events combined was 77 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 22 evenl at 31 MW.
Participants had a committed load reduction of 36,3 MW in the first week of the Program
which was the peak committed load reduction for the season. This was an increase from
2019 Flex Peak Program Report Page 3
ldaho Power Company
the 2018 season at 29.4 MW. This weekly commitment, or "nomination'', was comprised
of customers participating in the Program totaling 145 sites. Out of the total number of
sites, 135 participated in the 2018 season, and ten sites were newly added in 2019. The
committed load reduction at the end of the season was 35.5 MW.
The first event was called on Friday, July 12. Participants were notified at 2 p.m, for a
four-hour event from 4-8 p.m. The total nomination for this event was 36.3 MW. The
average load reduction was 24 MW. The highest hourly load reduction was 25 MW during
hour four. The realization rate for this event was 66 percent. The lower realization rate
for this event was partially due to many sites not being able to curtail energy use on a
Friday afternoon heading into the weekend due to operational and staffing constraints.
The second event was called on Monday, July 22. Participants were notified at2 p.m. for
a four-hour event from 4-8 p.m. The total nomination for this event was 35.7 MW. The
average load reduction was 28.5 MW. The highest hourly load reduction was 31 MW
during hour one. The realization rate for this event was 80 percent.
The third event was called on Tuesday, August 6. Participants were notified at 2 p.m. for
a four-hour event from 4-B p.m. The total nomination for this event was 35 MW. The
average load reduction was 30 MW. The highest hourly load reduction was 30.5 MW
during hour three. The realization rate for this event was 86 percent.
Enrollment specific to the Oregon service area included six participants totaling nine sites
enrolled. These nine sites had an average nominated capacity for the season of 10.6
MW and achieved a maximum reduction during the season of 10.9 MW during hour four
on the July 22 event.
Participation
The number of sites enrolled in the Program for 2019 was 145 from 64 participants, with
ten new sites enrolling for the Program season. The average number of sites enrolled
per participating customer was 2.3. The Program did not experience significant attrition
and re-enrollment in the Program was high as 135 of the 140 sites participating from the
prior season re-enrolled. Four sites from one participant did not re-enroll from the 2018
season because their businesses closed, and the other one site reduced its operating
hours significantly which no longer made it a good program candidate.
This past season ldaho Power continued the auto-enrollment option where existing
participants were re-enrolled in the Program automatically and mailed a confirmation
packet early in March based on the prior year's enrollment information. Participants
notified the Company in writing if they no longer wanted to participate as well as to change
their nomination amount or update/change contact information regarding personnel for
event notification. The auto-enrollment implementation was successful, and the
Company anticipates utilizing this process in the future.
Page 4 2019 Flex Peak Program Report
ldaho Power Company
Pursuant to the Settlement Agreement approved in IPUC Case No. IPC-E-13-145 and
OPUC UM 16536 ("Settlement''), ldaho Power did not actively seek to expand the agreed
upon 35 MW enrollment capacity but did recruit nominated capacity slightly above 35 MW
in case any customers would again need to reduce their nomination before the season
started. The Company has continued to strive to maintain the number and size diversity
(in terms of nominated load reduction) of sites enrolled. The breakout of nomination
groups among the sites has stayed very consistent from the 2018 season with the largest
quantityofsitesfallingwithinthe0-50kWsegmentfollowedby5l-200kW. TheCompany
did not deny any Program applications in 2019.
Below is list of what was conducted in addition to the normal Energy Advisor visits with
existing participants and potential future enrollees.
. February: New brochures and reduction tip sheets were created for distributiono April: Article in Energy@Work print newsletter to over 24,700 customers. April: Article in Energy@Wo* email newsletter to over 11,400 customers. April: Linkedln posto April: Linkedln ado 143,673 impressionso 1,215 clicks to the Flex Peak web pageo August: Linkedln post thanking participants
5 ln the Matter ot the Continuation of ldaho Power Company's UC Cool Credit, lrigation Peak
Rewards, and FlexPeak Demand Response Programs for 2014 and Beyond, Case No. IPC-E-13-14, Order
No. 32923.
6 ln the Matter of ldaho Power Company, Staff Evaluation of the Demand Response Prograrns, UM
1653, Order No. 13-482.
2019 Flex Peak Program Report Page 5
ldaho Power Company
Figure 1 represents ldaho Power's service area divided into three regional areas with
two sub areas: Canyon, (Canyon West) Capital and Southern (South East).
Figure 1.
?
MONTANA
..f--r^
IDAHO
ORE6ON
NEVADA UTAH
Page 6 2019 Flex Peak Program Report
t
.1
Canyon-WestRetlon
v.h a t
aamn
"P'
'-*CapitalReqion
tld,rJ. aft
South-EastReglon-.
cai!
ldeho Power Company
Figure 2 represents the enrolled capacity (total nominations) that were enrolled in 2019
and the distribution by ldaho Power's regional service areas.
Figure 2.
2019 Participation by Region (and sub areas)
based on Nomination
2019 Flex Peak Program Report Page 7
10%
Canyon-West
37%
27%
Canyon
southern
L
South-East
9%
ldaho Power Company
Figure 3.
ABriculture Commercial Property
Food Processing
19%
Education
LiBht lndustrial
6Yo
Asphalt, Concrete,
Gravel
3L%
Water & wastewater
Treatment Facility
16%
,
a
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 data is provided to assist 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.
2019 Flex Peak Program Report
Figure 3 represents the enrolled capacity in 2019 and the diversity based on business
type.
2019 Participation by Business Type based on
Nomination
8%
Other
Refrigerated
Warehouse
9%
Page 8
ldaho Power Company
Load Reduction Analysis
An evaluation of the potential load reduction impacts in 2019 was conducted internally by
ldaho Power. The goal of the review performed by ldaho Power was to calculate the load
reduction in MW for the Program. The analysis also verified load reduction per site and
per event.
The baseline methodology used in 2019 is the same methodology utilized in prior
seasons. 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 adjustment 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 forthe 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.
2019 Flex Peak Program Report Page I
ldaho Power Company
As Figure 4 below depicts, the most commonly nominated load reduction was in the 0-50
kW range, accounting for approximately 39 percent of the sites.
Figure 4.
Range of Nominated Load Reduction (kW)
60
55
50
45
40
30
25
57
54 54 52
o
o
fou
25 25 r 2019
r 201820
15
10 99
5
0
0-50 s1-200 201-500
Nominated Amount
501+
Table 2 shows the Program realization rates for 2019 based on average load reduction
per event.
Table 2
' Based on average reduction
Curtailment
Event
Event
Timeframe
Nominated Demand
Reduction
Average
Demand
Reduction
(ilrw)
Max
Demand
Reduction
(Mw)
Realization
Rate*
July 12 4-8 pm 36.3 24 25 660/o
July 22 4-8 pm 35.7 28.5 31 8Oo/o
August 6 4-8 pm 35 30 30.5 86%
Average 35.6 27.5 28.8 77 o/o
Page 10 2019 Flex Peak Program Report
ldaho Power Company
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 25 MW for the July 12 event to a high of 31 MW for the July 22 event. The
July 12 event's average of 24 MW reduction achieved a realization rate of 66 percent,
while the August 6 event's average of 30 MW reduction achieved a realization rate of 86
percent. Combined, the three events had an average realization rale ol77 percent.
Figure 5.
Average & Max Reduction Achieved per Event
r Average Demand Reduction r Max Demand Reduction
35
31 30 30.528.5
25
July 12th )uly 22nd
Event Date
August 6th
30
25
20
15
10
3
=
l!
3lE00oE 5
0
2019 Flex Peak Program Report Page 1 1
24
ldaho Power Company
Participant
Number
July 12 Event
Realization
August 6
Event
Realization
Season
Realization
1 0o/o 103o/o 860/o 63Yo
2 40k 4%2o/o 3o/o
3 8804 110o/o 111o/o 103o/o
lOo/o 7 60/o 19o/o
5 184o/o 135o/o Oo/o '106%
6 71o/o 112o/o 100%94o/o
7 54%69%30o/o 51o/o
8 137 o/o 134o/o NA 135o/o
9 82%111%107o/o 100%
28%91Yo 42o/o
11 1o/o 1%1o/o 1%
12 55o/o 53o/o 9%39%
13 83Yo 92o/o 28o/o 680/o
14 680/o 132o/o 130o/o 110o/o
't5 21o/o 35%74%43%
16 35o/o 6%4o/o 15o/o
17 0o/o 2%56%19o/o
17 3o/o 85o/o 89o/o 11604
19 790k 109o/o 154o/o 114o/o
147o/o 132o/o 104o/o 1260/o
21 82o/o 323o/o 191o/o 199o/o
72o/o 37o/o 37o/o 49o/o
23 129o/o 97o/o 129o/o 118o/o
24 5o/o 10o/o Oo/o 5o/o
62%7 4o/o 82%7 3o/o
26 0o/o 125o/o 7 0o/o 650/o
27 160/o 105o/o 85%69Yo
28 23%3Oo/o 31o/o 28o/o
29 180%214%61o/o 152o/o
30 290%1260/o 713%37 7o/o
31 218%119o/o 217o/o 205o/o
32 77%157o/o 9SYo 110o/o
33 1%41o/o 132o/o 58%
34 9o/o 2600/0 249o/o 17 3o/o
35 14o/o 4%23o/o 14o/o
Page 12 2019 Flex Peak Program Report
Table 3 shows the realization rate for each participant in the Program for 2019.
Table 3.
4
10
18
July 22 Event
Realization
35Yo
20
22
25
37 139o/o 99%1O1o/o 113%
14o/o38153o/o 550/o
Oo/o 87o/o 700k 52%
40 158%0o/o 66%
25o/o 640k 58o/o4185o/o
98%64Yo 1690/o 111o/o
10o/o4314%11o/o
11Yo 15%12Yo449%o
45 4o/o lYo 110%38o/o
46 0%7 4o/o 9Oo/o
182o/o 34o/o 100o/o4785Yo
48 122o/o o%Oo/o 41o/o
14o/o49 360/o 17o/o
2o/o NA50
51 2Oo/o 37Yo 2Oo/o
Oo/o52259o/o 0o/o 86%
12o/o 12o/o53
54 45o/o 7o/o 18Yo 23o/o
660/o 45%55 14o/o
56 160/o 30o/o 37o/o 28o/o
57 109%122o/o EOO/96%
122o/o 107o/o 105045887o/o
59 83o/o 28o/o 80%640/o
Oo/o 200o/o 135o/o602760/o
lYo 5o/o 1lYo61
62 660/o 630/o
147 o/o5376%60%94o/o
6%64
ldaho Power Company
36 82o/o 82Yo 7lYo 7 8o/o
NA- signifies pafticipants that opted out for that specific event or disenrolled mid-way through the 2019
seasor)
Broken out across four size segments, the sites with the smallest nominated load
reduction, 0-50 kW, achieved a realization rate across the three events at 75 percent.
The 0-50 kW group had the largest portion of sites enrolled in the Program, totaling 57
sites which accounted for 39 percent of total enrolled sites. The second smallest size
class, 51-200 kW, had 54 sites enrolled and achieved the lowest average realization rate
at 67 percent. The 201-500 kW group had 25 sites enrolled and achieved a realization
rate of 75 percent. The largest size class, 501+ kW, had nine sites enrolled and achieved
the highest average realization rate across the three events at 83 percent. ldaho Power
will continue to work with all customer segments to help refine nominations to align closer
with realistic reduction opportunities which will increase the overall program realization
rate.
2019 Flex Peak Program Report Page 1 3
lYo
39
42 I
8%
198%
0%
NA
3%l
NA NA
56Yo l
26Yo I
52o/o
NA 18o/o29o/o
39Yo
ldaho Power Company
Average Realization Rate by Each Nomination
Size Class
90%
80%
70%
60%
50%
40%
30%
20%
70%
o%
0-s0 51-200 201-500 501+
Range of Nominated Load Reduction (kW)
Program Costs
Program costs totaled $606,129 through October 1,2019. lncentive payments were the
largest expenditure comprising approximately 90 percent of total costs.
The incentive payments from the three events called during the 2019 Program season
were broken down as follows: the fixed capacity payments total was $547,527 and the
variable energy payment total was $0. Variable energy payments were not made during
the season because the variable energy payment is implemented starting with the fourth
event.
Preliminarily,T the total Program costs for 2019 are estimated to be $19.55 per kW based
on the maximum demand reduction of 31 MW, or $22.00 per kW, based on average load
reduction for the season of 27.5 MW.
7 Final Program costs for 20'19 will be available after the close of the Company's 2019 financial
reporting year, December 31, 2019.
Page 14 2019 Flex Peak Program Report
83%
7 5v.
67%q,
l!tco
PGN
=tgot
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 5.
ldaho Power Company
Table4 below displays the 2019 year-to-date (YfD') Program costs by expense
category.
Table 4.
Expense Category 2019 YTD Program
C osts
$606,129
Benefit-Cost Analysis
ldaho Power believes the purpose of demand response is to minimize or delay the need
to build new supply-side peaking generation resources and to reduce load during extreme
system peaks. The benefits of having the Program available, and with each load
reduction event, provide ldaho Power a supply side resource to mitigate any system peak
deficits. DR helps fulfill the current system capacity need and prolongs the need to build
new generation resources.
The Benefit-Cost analysis forthe Program is based on a 2O-year model that uses financial
and demand-side management alternate cost assumptions from the 2017 lntegrated
Resource P/an ("lRP"). The Settlement, as approved in IPUC Order No. 32923 and
OPUC Order No. 13-482, established a new method for valuing DR and defined the
annual cost of operating ldaho Power's three DR programs for the maximum allowable
60 hours as no more than $16.7 million.
The annual value calculation will be updated with each IRP based on changes that
include, but are not limited to, need, capital cost, or financial assumptions. This amount
was reevaluated in the 2017 IRP to be $19.8 million.
ln 2019, the preliminary cost estimate of operating all three of ldaho Power's DR programs
was$8.1 millionthrough October 1,2019. lt is estimated that if the three programs were
dispatched for the full 60 hours, the total costs would have been approximately
$11.3 million, which is below the total annual costs agreed upon in the Settlement as
revised in the 2017 lRP.
The Company believes by calling at least three events per season the Program will be
more effective in providing consistent and reliable reduction. Having a minimum of three
events allows the Company to test processes and software and helps customers fine tune
their curtailment plan. The Company did not call more than three load reduction events
during the 2019 Program season because ldaho Power's generation resources were
sufficient to satisfy system load. However, in all three events the Program provided a
20'19 Flex Peak Program Report Page 15
$1,113
$57,489
$547,527
Materials & Equipment
Marketing & Administration
lncentive payments
Total
ldaho Power Company
resource to assist Load Serving Operators balancing the forecast when it did not align
with actual peak load, as well as potentially avoid additional market purchases. Based
on market prices for each of the days in 2019 the Program was dispatched, ldaho Power
estimates the Program saved a total of $13,000 worth of energy purchases.
ldaho Power's cost-effectiveness evaluation for DR programs is updated annually. A
more comprehensive coslbenefit analysis will be included in the Company's Demand-
Side Management 2019 Annual Report when all the data will be available.
Customer Satisfaction Results
ldaho Power conducted a post-season online survey this year which was sent to all
participants. The survey questions were based on a five-point rating scale. ldaho Power
received feedback trom 24 of 63 (excluding the ldaho Power facility that participates)
participants enrolled for a response rate of 38 percent. Overall, the results from the survey
were favorable with roughly 96 percent of respondents stating they would likely re-enroll
in the Program in the future and about 88 percent of respondents stating they were
satisfied with their overall experience with the Program. The results from the 2019 survey
will be discussed in more detail in Supplement Two of the 2019 Demand-Side
Management Annual Report.
ln addition to the survey, the Company engaged customers at the end of the season by
sending thank you cards to all participants with an average realization rate of 60 percent
or greater across all three events during the 2019 season.
Program Activities for 2020
The primary improvement ldaho Power and the Program could benefit from is more
consistent load reduction when events are called to achieve a higher realization rate. The
Company will continue to communicate the value proposition with enrolled participants
and the importance of active participation when events are called. Recruitment efforts for
the 2020 season will begin the fourth quarter of 2019 to encourage participation. ldaho
Power will meet with existing participants during the off-season to discuss past-season
performance and upcoming season details. The Program Specialist has already started
working with potential candidates for the 2020 season with an increased focus on
enrolling national chain stores within our service area. This customer type makes a good
candidate for the program due to extended operating hours, non-production load types
and consistent energy usage profiles.
Page 16 20'19 Flex Peak Program Report
The variable energy price for utilizing the Program after the third event is $0.16/kWh and
could be considered the dispatch price for calling load reduction events beginning with
the fourth event. The price of $0,16/kWh is typically higher than the energy market price.
The Company believes the variable energy price is appropriate because having a
dispatch price below $0.16/kwh could cause the Company to call events more frequently
resulting in reduced participant performance and event fatigue. The Company also
believes that a lower dispatch price to trigger more load reduction events could send the
wrong signal regarding the purpose of the Program and DR.
ldaho Power Company
The Program will be jointly marketed along with ldaho Power's applicable energy
efficiency programs as needed. The Company will utilize its Energy Advisors to retain
the currently enrolled sites and encourage new sites to participate.
For the upcoming season, ldaho Power plans to focus on retaining currently enrolled
participants and will more pro-actively work with the Marketing Specialist to promote the
Program at Company sponsored events and trainings. The Company recognizes there
is attrition over time and many participants may reduce their nomination based on
operational and business needs, so it is important to consistently have approximately 37
MW of nominated capacity available. This level of nominated capacity will allow events
to achieve 35 MW of load reduction considering the typical realization rate of nominated
capacity ranging from 85-95 percent.
Conclusion
The Program currently contributes approximately ten percent of the Company's overall
DR portfolio and can be relied on to provide dispatchable load reduction to the electrical
grid. When analyzing the Program at the generation level, industrial and commercial
customers have made noteworthy contributions to ldaho Power's DR programs. The cost
of having this resource available was $22.00 per kW based on average reduction (27.5
MW) for the season.
2019 Flex Peak Program Report Page 17