20160419notice_of_application_order_no_33505.pdf

Office of the Secretary
Service Date
April 19,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-16-03
OF IDAHO POWER COMPANY FOR A )
DETERMINATION OF 2015 DEMAND-SIDE )NOTICE OF APPLICATION
MANAGEMENT EXPENDITURES AS )
PRUDENTLY INCURRED )NOTICE OF
)INTERVENTION DEADLINE
)
)NOTICE OF
)MODIFIED PROCEDURE
)
_____________________________
)ORDER NO.33505
On March 15,2016,Idaho Power Company applied to the Commission for an Order
establishing that it prudently incurred $35,1 96,964 in demand-side management (DSM)
expenses,including $28,495,701 in Idaho Energy Efficiency Rider expenses,and $6,701,263 in
demand response program expenses during 2015.Generally,a utility incurs DSM expenses by
developing and operating programs that are designed to reduce or shift customers’energy
consumption and improve their efficient use of energy.The Commission will allow the utility an
opportunity to recover its DSM expenses through rates if the Commission finds that the expenses
were prudently incurred.However,if the Commission finds any of the DSM expenses were not
prudently incurred,then it will not allow the utility to recover those expenses through rates,and
the disallowed expenses will be borne by the utility’s shareholders and not by customers.
With this Order,the Commission summarizes the Application,directs that it be
processed under the Commission’s Rules of Modified Procedure and sets deadlines for interested
persons to intervene as parties in the case or to otherwise file written comments.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company states that in 2015,DSM efforts
increased the Company’s annual energy savings by 18%and exceeded the savings target
specified in the Company’s Integrated Resource Plan.The Company says its DSM efforts saved
162,533 megawatt hours (MWh),including 140,633 MWh from energy efficiency programs and
21,900 MWh from market transformation initiatives through the Northwest Energy Efficiency
Alliance (“NEEA”).The Company offered its customers 19 energy efficiency programs,three
demand response programs,and several educational initiatives.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505
YOU ARE FURTHER NOTIFIED that the Company primarily attributes these
energy savings to commercial/industrial sector DSM activities (102,074 MWh)and,to a lesser
extent,residential sector DSM activities (24,532 MWh),and irrigation sector DSM activities
(14,027 MWh).The Company reports it enrolled enough participants in its demand response
programs to provide 385 MW of load shedding capacity.and that the programs ultimately
reduced demand by 367 MW and saved customers about $1.6 million.
YOU ARE FURTHER NOTIFIED that the Company funds its Idaho energy
efficiency programs through the Idaho Energy Efficiency Rider,base rates,and the annual Power
Cost Adjustment (PCA).It funds its Idaho demand response programs through base rates and
the PCA.With this Application,the Company asks the Commission to find that the Company
prudently incurred $35.196.964 in expenses to develop and run its DSM programs in 2015.The
Company states these expenses include $28,495,701 in Idaho Energy Efficiency Rider expenses
and $6.70 1.263 in demand response program incentive payments.The Company states it
calculated these expenses after several adjustments to amounts set forth in the DSM Report,
including an exclusion of $441,856 in Rider-funded labor-related expenses.
YOU ARE FURTHER NOTIFIED that the Company’s Application describes the
Company’s evaluation of its DSM programs and whether they were cost-effective in 2015.The
DSM Report discusses the cost-effectiveness of the Company s DSM programs and energy
savings measures.
YOU ARE FURTHER NOTIFIED that the Company says it used the following
benefit/cost tests to determine the cost-effectiveness of its energy efficiency programs and
measures:(1)the total resource cost test (“TRC”);(2)the utility cost test (“UCT”);(3)the
participant cost test (“PCT”):and (4)the ratepayer impact measure test (“RIM”).’The Company
reports that in 2015 its overall energy efficiency portfolio was cost-effective from a TRC and
UCT perspective with ratios of 2.32 and 3.57.Of the Company’s Idaho energy efficiency
The four tests examine a program’s cost-effectiveness from different perspectives.In summary,the TRC
compares program administrator costs and customer costs to utility resource savings,and assesses whether the total
cost of energy in a utility’s service territory will decrease.The UCT compares program administrator costs to
supply-side resource costs,and assesses whether Litility bills will increase.The PCT compares the costs and benefits
of the customer installing the measure,and assesses whether program participants will benefit over the measure’s
life.The RIM measures the impact to customer bills or rates due to changes in utility revenues and operating costs
caused by an energy efficiency program.Under these tests,a program or measure is deemed cost-effective if it has a
benefit’cost ratio above 1 .0.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505 2
programs.1 2 programs passed the TRC and UCT.I program failed the TRC but passed the
UCT,and 2 programs failed both the TRC and UCT.All energy efficiency programs with
customer costs pass the PCT.When assessing the cost-effectiveness of its demand response
programs,the Company does not calculate a benefit/cost ratio.Rather,the Company uses a pre
determined annual value of $1 6.7 million,which was established by Commission Order No.
32923.The Company estimated that the programs would have remained cost-effective if fully
dispatched.
YOU ARE FURTHER NOTIFIED that the Company reports that independent,third-
party consultants were used to provide impact and process evaluations to verify that program
specifications are met,recommend improvements,and validate program-related energy savings.
In 2015,impact evaluations were completed on six programs and process evaluations were
completed on three programs.
YOU ARE FURTHER NOTIFIED that the Company’s Application describes the
input that various stakeholders,including the Company’s Energy Efficiency Advisory Group,
had in developing the Company’s DSM activities.The Company notes that stakeholder input in
2015 led the Company to increase the scope and reach of its marketing efforts for its DSM
programs.
YOU ARE FURTHER NOTIFIEI)that the Application and supporting workpapers.
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at Click on the
“File Room”tab at the top of the page,scroll down to “Open Electric Cases,”and then click on
the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commissions jurisdiction under Title 61 of the Idaho Code,including Idaho
Code §61-501 and -503.The Commission may enter any final Order consistent with its
authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 etseq.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505 3
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this case for
the purpose of presenting evidence or cross-examining witnesses must file a Petition to Intervene
with the Commission,pursuant to Rule 72 and 73 of the Commission’s Rules of Procedure
(IDAPA 31 .0 .01 .000 et seq.).no later than 14 days after the (late of service of this Order.
Persons desiring to present their views without parties rights of participation and cross-
examination are not required to intervene and may present their comments without prior
notification to the Commission or to other parties,as discussed below.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commissions Rules
of Procedure.IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by
Thursday,July 14,2016.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically’request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission
and Idaho Power at the addresses reflected below:
Commission Secretary Lisa D.Nordstrom
Idaho Public Utilities Commission Idaho Power Company’
P0 Box 83720 P0 Box 70
Boise.Idaho 83720-0074 Boise,ID 83707-0070
E-mail:lnordstrom’:idahopower.com
Street Address for Express Mail:dockets(idahopower.com
472 W.Washington Street Connie Aschenbrenner
Boise,ID 83702-5918 Idaho Power Company
P0 Box 70
Boise,ID 83707-0070
E-mail:caschenhrenneridahopower.com
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505 4
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at .ugif[gho.gy.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the frOnt of this document.These comments must also be sent to Idaho Power at the
e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments,if
any,by Thursday,August 4,2016.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that this Application be processed under Modified
Procedure,Rules 201-204,IDAPA 31.01.0l.201-.204.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examining witnesses must file a Petition to Intervene
with the Commission,pursuant to Rules 72 and 73,IDAPA 3 1.01.01.72-73,no later than 14 days
after the date of service of this Order.
IT IS FURTHER ORDERED that persons interested in submitting written comments
must do so by July 14,2016.The Company may file a reply no later than August 4,2016.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505 5
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /‘1”
day of April 2016.
ATTEST:
KRLTINE RAPER,Co4MIssroNER
ERIC ANDERSON,COMMISSIONER
O:IPC-E-l 6-O3bk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33505
PAUL PRESIDENT
6