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HomeMy WebLinkAbout20190315DSM Supplement 1.pdf-f An IDACORP Company MARCH'l 5 . 2019 DEMAND SlDE MANAGM{T ,rl-.' ' I SUPPLEMENT I: Supplement 1 : Cost-Effectiveness ldaho Power Company TleLe oF GoNTENTS Supplement I : Cost-Effectiveness 1 1 2 J 6 6 7 Cost-Effectiveness..... Methodology.. Assumptions..........., Conservation Adder Net-to-Gross.... Results...... 2018 DSM Detailed Expenses by Program Cost-Effectiveness Tables by Pro gram .............10 .............14 .............14Educational Distributions... Energy Effi cient Lighting... Energy House CaIIs............ 16 Heating & Cooling Efficiency Program....... ..18 ..20 ..23Multifamily Energy Savings Program Rebate Advantage .26 .28 .30 .31 .JJ .34 .35 .37 .40 .45 .54 Residential New Construction Pilot Program............... Shade Tree Project ..... Simple Steps, Smart Savings'" Weatherization Assistance for Qualifi ed Customers ..... Weatherization Solutions for Eligible Customers Commercial Energy-Saving Kits .......... Custom Projects New Construction Retrofits Irrigation Efficiency Rewards Page i Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company List of Tables Table 1.2018 non-cost-effective measures ..................10 Table 2.2018 DSM detailed expenses by program (dollars).... .......................1 I Table 3. Cost-effectiveness of 2018 programs by B/C test............ ..................14 Page ii Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company SupplEMENT 1 : Gosr-ErrecrrvENESS Cost-Effectiveness Idaho Power considers cost-effectiveness of primary importance in the design, implementation, and tracking of energy efficiency and demand response programs. Idaho Power's energy efficiency and demand response opportunities are preliminarily identified through the Integrated Resource Plan (IRP) process. Idaho Power uses third-party energy efficiency potential studies to identify achievable cost- effective energy efficiency potential, which is added to the resources included in the IRP. Idaho Power's Program Planning Group (PPG) explores new opportunities to expand current demand-side management (DSM) programs and offerings. Prior to the actual implementation of energy efficiency or demand response programs, Idaho Power performs a preliminary cost-effectiveness analysis to assess whether a potential program design or measure may be cost-effective from the perspective of Idaho Power and its customers. Incorporated in these models are inputs from various sources that use the most current and reliable information available. When possible, Idaho Power leverages the experiences of other utilities in the region and/ or throughout the country to help identify specific program parameters. This is accomplished through discussions with other utilities'program managers and researchers. Idaho Power also uses electric industry research organizations, such as E Source, Northwest Energy Efficiency Alliance (I{EEA) Regional Emerging Technology Advisory Committee, the Consortium for Energy Efficiency (CEE), American Council for an Energy-Efficient Economy (ACEEE), Advanced Load Control Alliance (ALCA), and Association of Energy Service Professionals (AESP), to identiff similar programs and their results. Additionally, Idaho Power relies on the results of program impact evaluations and recommendations from consultants. Idaho Power's goal is for all programs to have benefiVcost (B/C) ratios greater than one for the total resource cost (TRC) test, utility cost test (UCT), and participant cost test (PCT) at the program and measure level where appropriate. Each cost-effectiveness test provides a different perspective, and Idaho Power believes each test provides value when evaluating program performance. If a measure or program is found to be not cost-effective from one or more of the three tests, Idaho Power assesses the program or measure and runs the cost-effectiveness calculations under a variety of scenarios. There are many assumptions when calculating the cost-effectiveness of a given program or measure. For some measures within the programs, savings can vary based on factors such participation levels or the participants' locations. For instance, heat pumps installed in the Boise area will have less savings than heat pumps installed in the McCall area. If program participation and savings increase, fixed costs such as labor and marketing is spread out more and the program cost-effectiveness increases. When a program or measure is shown to be not cost-effective, Idaho Power works with Energy Efficiency Advisory Group (EEAG) to get additional input. If the measure or program is indeed offered, the company explains to stakeholders why the measure or program was implemented or continued and the steps the company plans to take to improve its cost-effectiveness. The company believes this aligns with the expectations of the Idaho Public Utilities Commission (IPUC) and Public Utility Commission Page 1 Demand-Side Management 2018 Annual Report of Oregon (OPUC) In IPUC Order No. 33365, page 9, the IPUC states the following We thus find it reasonable for the Company to continue screening potential programs using each test as a guideline, and to advise us on how the Company's programs fare under each test. When the Company ultimately seeks to recover its prudent investment in such programs, however, we believe the Company may (but need not exclusively) emphasize the UCT-and that test's focus on Company-controlled benefits and costs-to argue whether the programs were cost-effective. In the OPUC Order No. 94-590, issued in Utility Miscellaneous (UM) 551, the OPUC outlines specific cost-effectiveness guidelines for energy efficiency measures and programs managed by program administrators. It is the expectation of the OPUC that measures and programs pass both the UCT and TRC tests. Measures and programs that do not pass these tests may be offered by a utility if they meet one or more of the following additional conditions specified by Section 1 3 of Order No. 94-590: A. The measure produces significant non-quantifiable non-energy benefits (NEB) B. Inclusion of the measure will increase market acceptance and is expected to lead to reduced cost of the measure C. The measure is included for consistency with other DSM programs in the region D. Inclusion of the measure helps increase participation in a cost-effective program E. The package of measures cannot be changed frequently, and the measure will be cost-effective during the period the program is offered F. The measure or package of measures is included in a pilot or research project intended to be offered to a limited number of customers G. The measure is required by law or is consistent with OPUC policy and/or direction If Idaho Power determines a program or measure is not cost-effective but meets one or more of the exceptions set forth by Order No. 94-590, the company files an exceptions request with the OPUC to continue offering the measure or program within it its Oregon service area. For operational and administrative efficiency, Idaho Power endeavors to offer identical programs in both its Oregon and Idaho jurisdictions. Some customers, contractors, and trade allies operate in both states. Program consistency is important for the participants'overall satisfaction with the programs. Offering different program designs would create confusion in the marketplace and could inhibit participation. In addition, program infrastructure is designed to implement consistent programs across the service area. Methodology For its cost-effectiveness methodology, Idaho Power relies on the Electric Power Research Institute (EPRI) End Use kchnical Assessment Guide (TAG); the California Standard Practice Manual and its Page2 Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company Supplement 1 : Cost-Effectiveness ldaho Power Company subsequent addendum, the National Action Plan for Energy Efficiency's (NAPEE) Understanding Cost Effectiveness of Energt Efficiency Programs: Best Practices, kchnical Methods, and Emerging Issues for Policy-Makers; and the National Action Plan on Demand Response. For resource planning, Idaho Power uses the TRC test. This test is used because, as defined in the TAG and Califurnia Standard Practice Manual, it is the most like supply-side tests and provides a useful basis to compare demand- side and supply-side resources. For program planning and evaluation, the company uses the TRC and the UCT test to develop B/C ratios to determine the cost-effectiveness of DSM programs. The PCT provides the company the opportunity to assess a program or measure from the participant perspective and to determine if it is in the best interest of the average customer. For energy efficiency programs, each program's cost-effectiveness is reviewed annually from a one- year perspective. The annual energy-savings benefit value is summed over the life of the measure or program and is discounted to reflect 2018 dollars. The result of the one-year perspective is shown in Supplement I : Cost-Effectiveness. The goal of demand response programs is to minimize or delay the need to build new supply-side resources. Unlike energy efficiency programs or supply-side resources, demand response programs must acquire and retain participants each year to maintain a level of demand-reduction capacity for the company. As part of the public workshops on Case No. IPC-E,-13-14,Idaho Power and other stakeholders agreed on a new methodology for valuing demand response. The settlement agreement, as approved in IPUC Order No. 32923 and OPUC Order No. 13-482, defined the annual cost of operating the three demand response programs for the maximum allowable 60 hours to be 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 2015 IRP to be $18.5 million and again in the 2017 IRP to be $19.8 million. This value is the levelized annual cost of a 170-megawatt (MW) deferred resource over a 20-year life. The demand response value calculation will include this value even in years when the IRP shows no peak-hour capacity deficits. In 2018, the cost of operating the three demand response programs was $8.2 million. Idaho Power estimates that if the three programs were dispatched for the full 60 hours, the total costs would have been approximately $l1.3 million and would have remained cost-effective. Assumptions Idaho Power relies on research conducted by third-party sources to obtain savings and cost assumptions for various measures. These assumptions are routinely reviewed internally and with EEAG and updated as new information becomes available. For many of the measures within Supplement I: Cost-Effectiveness, savings and costs were derived from the Regional Technical Forum (RTF), the technical reference manual (TRM), or the ldaho Power Energt Efficiency Potentiol Study conducted by Applied Energy Group (AEG). Idaho Power received end-use load shapes from AEG, which have been applied to each program and measure when applicable. Idaho Power used updated assumptions Page 3 Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company from the 2016 potential study for the 201 8 cost-effectiveness analyses. Due to the timing of the 201 8 potential study, Idaho Power will use any updated assumptions from the 201 8 study in 2019. The RTF regularly reviews, evaluates, and recommends eligible energy efficiency measures and the estimated savings and costs associated with those measures. For instance, because of the rapid changes in the lighting market, the RTF is currently evaluating lighting measures on an annual basis. As the RIF updates these assumptions, Idaho Power applies them to current program offerings and assesses the need to make any program changes. Idaho Power staffparticipates in the RTF by attending monthly meetings and contributing to various sub-committees. Because cost data from the RTF information is in 2012 dollars, measures with costs from the RTF are escalated to 2018 dollars. The costs are escalated by 7.8 percent. This percentage is provided by the RTF in workbook RTFStandardlnformationWorkbook v3 2.xlsx. Idaho Power uses a TRM developed by ADM Associates, Inc. for the Commercial and Industrial Energy Efficiency Program's New Construction and Retrofit options. In 2018, the company contracted with ADM to update the TRM. Idaho Power also relies on other sources, such as the Northwest Power and Conservation Council (I.{WPCC), Northwest Energy Efficiency Alliance (NEEA), the Database for Energy Efficiency Resources (DEER), the Energy Trust of Oregon (ETO), the Bonneville Power Administration (BPA), third-party consultants, and other regional utilities. Occasionally, Idaho Power will also use internal engineering estimates and calculations for savings and costs based on information gathered from previous projects. The company freezes savings assumptions when the budgets and goals are established for the next calendar year unless code and standard changes or program updates necessitate a need to use updated savings. These assumptions are discussed in more detail in the cost-effectiveness sections for each program. As a rule, the 2018 energy savings reported for most programs will use the assumption set at the beginning of the year. An exception would be the Commercial & Industrial Energy Efficiency program. Once the TRM was updated, the company launched changes to the program inAugust 2018. For applications initiated before the change date, the TRM version 1.7 was the source for most savings and cost assumptions for the New Construction and Retrofit options. For applications initiated after the change date, the current TRM version 2.2 is the source for most savings and cost assumptions for the program. The remaining inputs used in the cost-effectiveness models are obtained from the IRP process. Idaho Power's 2015 IRP was acknowledged by the IPUC on December 23,2015 and by the OPUC April 28, 2016 and is the source of all the financial assumptions for the cost-effectiveness analysis. Appendix C-Tbchnical Appendix of Idaho Power's 2015 IRP contains the DSM alternative costs, discount rate, and escalation rate. These DSM alternative costs vary by season and time of day and are applied to an end-use load shape to obtain the value of that particular measure or program. The DSM altemative energy costs are based on both the projected fuel costs of a peaking unit and forward electricity prices as determined by Idaho Power's power supply model, AURORAxmp@ Electric Market Model. The avoided capital cost of capacity is based on a gas-fired, simple-cycle turbine. In the 2015 IRP, the annual avoided capacity cost is $119 per kilowatt (kW). Page 4 Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company As part of the 2015 IRP Case IPC-E-15-19 and2014 DSM prudence Case IPC-E-15-06, parties requested Idaho Power review how transmission and distribution (T&D) costs are treated in the IRP. Idaho Power committed to reviewing the T&D beneflts, and the analysis was presented to EEAG in August 2016. The estimated average value of energy efficiency on T&D deferral is $3.76lkW per year or $0.000429/kilowatt-hour (kwh). In compliance with Order No. 33365, this value is escalated and added to the 2015 DSM alternative energy costs and included in the cost-effectiveness analysis for 2018. Idaho Power's 2017 IRP was filed on June 30,2017 with the IPUC under case IPC-E-l7-ll and with the OPUC under case LC 68. Idaho Power's 2017IRP was acknowledged by the IPUC on February 9, 2018 in Order No. 33983 and in by the OPUC on May 23,2018 in Order No. 18-176. Since the2017 IRP was acknowledged after the budgets and goals were set for 2018, the 2015 IRP remained the source for all financial assumptions and cost-effectiveness analysis in 201 8. The 20 I 7 IRP is expected to be the source of all assumptions and analysis for the 2019 program year. For the demand response programs, with inputs from the 20l7IRP, the Company determined the maximum annual cost of running all three demand response programs for the maximum allowable hours of 60 hours has been calculated to be no more than $19.8 million. As recommended by the NAPEE Understanding Cost-Effectiveness of Energt Efficiency Programs, Idaho Power's weighted average cost of capital (WACC) of 6.74 percent is used to discount future benefits and costs to today's dollars. Once the DSM alternative costs and load shapes are applied to the annual kWh savings of a measure or program, the WACC is used to calculate the net present value (NPV) of the annual benefit for the UCT and TRC B/C ratios. However, determining the appropriate discount rate for participant cost and benefits is difficult because of the variety of potential discount rates that can be used by the different participants as described in the TAG. Since the participant benefit is based on the anticipated bill savings of the customer, Idaho Power believes the WACC is not an appropriate discount rate to use. Because the customer bill savings is based on Idaho Power's 2018 average customer segment rate and is not escalated, the participant bill savings is discounted using a real discount rate of 4.44 percent, which is based on the 2015 IRP's WACC of 6.74 percent and an escalation rate of 2.2 percent. The real discount rate is used to calculate the NPV of any participant benefits or costs for the PCT or ratepayer impact measure (RIM) B/C ratios. The formula to calculate the real discount rate is as follows: ((1 + WACC) + (l + Escalation)) - 1 : Real Line-loss percentages are applied to the metered-site energy savings to find the energy savings at the generation level. The Demqnd-Side Management 2018 Annual Report shows the estimated electrical savings at the customer meter level. Cost-effectiveness analyses are based on generation-level energy savings. The demand response program reductions are reported at the generation level with the line losses. The average system line-loss factor is 9.6 percent while the summer peak line-loss factors is 9.7 percent. Page 5 Demand-Side Management 20'18 Annual Report Gonservation Adder The Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act) states the following: . . .any conservation or resource shall not be treated as greater than that of any non-conservation measure or resource unless the incremental system cost of such conservation or resource is in excess of 1 l0 per centum of the incremental system cost of the nonconservation measure or resource. As a result of the Northwest Power Act, most utilities in the Pacific Northwest add a 10-percent conservation adder in energy efficiency cost-effectiveness analyses. In OPUC Order No. 94-590, the OPUC states: We support the staffs position that the effect of conservation in reducing uncertainty in meeting load growth is included in the ten percent cost adder and that no separate adjustment is necessary. Additionally, in IPUC Order No. 32788 in Case No. GNR-E-12-0L, "Staffnoted that Rocky Mountain Power and Avista use a 10 percent conservation adder when calculating the cost-effectiveness of all their DSM programs." Staff recommended the utilities have the option to use a lO-percent adder, and the IPUC agreed with the recommendation to allow utilities to use the 1O-percent adder in the cost- effectiveness analyses for low-income programs. After reviewing the practices of other utilities in the Pacific Northwest, as well as the OPUC Order No. 94-590 and IPUC Order 32788,ldaho Power applies the l0-percent conservation adder in all energy efficiency measure and program cost-effectiveness analyses when calculating the TRC test. Net-to-Gross Net-to-gross (NTG), or net-of-free-ridership (NTFR), is defined by NAPEE's Understanding Cost Effectiveness of Energt Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for Policy-Makers as a ratio that does as follows: Adjusts the impacts of the programs so that they only reflect those energy efficiency gains that are the result of the energy efficiency program. Therefore, the NTG deducts energy savings that would have been achieved without the efficiency program (e.g., 'free-riders') and increases savings for any 'spillover'effect that occurs as an indirect result of the program. Since the NTG attempts to measure what the customers would have done in the absence of the energy efficiency program, it can be difficult to determine precisely. Capturing the effects of Idaho Power's energy efficiency efforts on free-ridership and spillover is difficult. Due to the uncertainty surrounding NTG percentages, Idaho Power used an NTG of Supplement 1 : Cost-Effectiveness ldaho Power Company Page 6 Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company 100 percent for all measure cost-effectiveness analyses. For the program cost-effectiveness analyses, the B/C ratios shown are based on a 10O-percent NTG. A sensitivity analysis was conducted to show what the minimum NTG percentage needs to be for the program to remain (or become) cost-effective from either the TRC or UC perspective. These NTG percentages are shown in the program cost-effectiveness results in Supplement I : Co s t- Effi ctivene s s. Results Idaho Power determines cost-effectiveness on a measure basis, where relevant, and program basis. As part of Supplement I : Cost-Effectiveness and where applicable, Idaho Power publishes the cost-effectiveness by measure, calculating the PCT and RIM test at the program level, listing the assumptions associated with cost-effectiveness, and citing sources and dates of metrics used in the cost-effectiveness calculation. The B/C ratio from the participant cost perspective is not calculated for the Commercial Energy-Saving Kits, Educational Distributions, Energy House Calls, Multifamily Energy Savings Program, Shade Tree Project, Weatherization Assistance for Qualified Customers (WAQC), and Weatherization Solutions for Eligible Customers programs. These programs have few or no customer costs. For energy efficiency programs, the cost-effectiveness models do not assume ongoing participant costs. Supplement I : Cost-Effectiveness contains annual cost-effectiveness metrics for each program using actual information from 2018 and includes results of the UCT, TRC, PCT, and RIM. Current average customer energy rates are used in the calculation of the B/C ratios from a PCT and RIM perspective. Rate increases are not forecasted or escalated. A summary of the cost-effectiveness by program can be found in Table 3. In 2018, most of Idaho Power's energy efficiency programs were cost-effective, except for Heating & Cooling Efficiency (H&CE) Program, Shade Tree Project, and the weatherizationprograms for income-qualifi ed customers. The H&CE Program has a UC of 1.65, TRC of 0.83, PCT of 1.50. Idaho Power first notified EEAG in August 2016 that the program was anticipated to be not cost-effective from the TRC perspective. Idaho Power has continued to update EEAG of its efforts to improve the program's cost-effectiveness Throughout2}lT and into 20l&,Idaho Power worked toward improving program cost-effectiveness. These tactics included: l) reassigning non-program labor, 2) reducing marketing spend while improving other tactics, 3) reducing contractor incentives from $150 to $50, and 4) adding heat pump water heaters to the program. These efforts were successful in keeping cost-effectiveness ratios from falling in 2018 over 2017 levels. However, calibrations to end-use load shapes created for the 2016 energy efficiency potential study offset cost-effectiveness gains from cost control efforts in 2018. Had Idaho Power used the same load shape as was used for the 2017 program year, the program would have had a TRC just over 1.0. PageT Demand-Side Management 2018 Annual Report Supplement 1 : Cost-Effectiveness ldaho Power Company Due to their high costs, DHPs continue to bring down the cost-effectiveness of the program. The DHP portion of the program has a UCT of 1.37 and TRC 0.69 while the rest of the program has a UCT of 1.82 and TRC of 0.96. Market transformation efforts, specifically the market transformation work provided by NEEA, in the region have failed to drive prices down along with lower net savings in colder climates are the two primary problems plaguing DHP cost-effectiveness. When the company began the Shade Tree Projectin2013, the initial analysis showed that the project would be cost-effective from the UCT and TRC perspective based on preliminary assumptions and then-current DSM alternate costs. The company's intent was to begin claiming savings when the original planted trees were flve years old. Since the Shade Tree Project began in2013,2018 was the first year Idaho Power claimed savings and calculating the cost-effectiveness for the Shade Tree Project. This project is shown to have a UCT of 0.71, a TRC of 0.80. The cost-effectiveness for the program is based on the modeled savings for the tree distributed in 2018 and the costs incurred during 2018. It is estimated that these trees will begin saving 35,425 kWh in 2022 and 116,197 kWh by year 2038. DNV GL created a new savings model to adjust the savings from the enrollment calculator using the data from Idaho Power's 2015-2017 audit of the project. The audit provided information on where the trees were actually planted and the tree mortality. The new savings model calculates the average savings per tree and assumed a measure life of 20 years. This is because the enrollment software, i-Tree, used by the Arbor Day Foundation only estimates saving at 5, 10, I 5, and 20 years. In 2018, the bur oak, northern red oak, Greenspire@ littleleaf linden, and tulip tree were the most common species distributed in the project. According to the United States Department ofAgriculture and the Urban Forest Ecosystem Institute, these trees can live up to 500 years. Idaho Power acknowledges that the potential energy savings for a tree may continue to increase beyond year 20, but the savings will be capped at some point regardless of how large the tree grows. For trees distributed in 2018, data around the survivorship of the tree beyond 2038 is also unknown. While the energy saving in 2038 is estimated to be 116,197 kwh, the savings may continue to increase at a diminishing rate before eventually declining due to increased mortality. However, if energy savings were to stay constant beyond year 20, it can be assumed that program would be cost-effective from the UCT and TRC perspective if the program life was revised to 30 years. WAQC had a TRC of 0.52 and a UCT ratio of 0.43, and Weatherization Solutions for Eligible Customers had a TRC of 0.51 and a UCT ratio of 0.37. The programs'cost-effectiveness ratios increased slightly over 2017's ratios. To calculate the programs' cost-effectiveness, Idaho Power adopted the following IPUC staffs recommendations from Case No. GNR E-12-01: Applied a 100-percent NTG Claimed 100 percent of energy savings for each project. Included indirect administrative overhead costs. The overhead costs of 3.017 percent were calculated from the $1,335,208 of indirect program expenses divided by the total DSM expenses of $44,262,080 as shown inAppendix 3 of the Demand-Side Management 2018 Annual Report. Page 8 Demand-Side Management 2018 Annual Report a a a Supplement 1 . Cost-Effectiveness ldaho Power Company Applied the l0 percent conservation preference adder. Amortized evaluation expenses over a three-year period Claimed one dollar of NEBs for each dollar of utility and federal funds invested in health, safety, and repair measures. Eighteen ouit of 279 individual measures in various programs are shown to not be cost-effective from either the UCT or TRC perspective. These measures will be discontinued, analyzed for additional NEBs, modified to increase potential per-unit savings, or monitored to examine their impact on the specific program's overall cost-effectiveness. Specifically, of the 18 non-cost-effective measures, and seven have ratios between 0.90-0.99 and three have ratios between 0.80-0.89. For most of these measures, Idaho Power flled cost-effectiveness exception requests with the OPUC in compliance with Order No. 94-590. Measures and programs that do not pass these tests may be offered by the utility if they meet one or more of the additional conditions specifled by Section 13 of Order No. 94-590. These exception requests were approved under Order No. 15-200 on June 23,2015, or with the specific program advice filings. The filings and exception requests are noted in Table 1. Table 1 .2018 non-cost-effective measures o o Program Number of Measures Notes H&CE Program 7 Cost-effectiveness exception request for ductless heat pumps (DHP) and open-loop water source heat pumps filed with the OPUC under UM-1710. OPUC Order No. 94- 590, Section 13. Approved under Order No. 15-200. Exception request for the program and smart thermostat requested and approved with OPUC Advice No. 17-09. Heat pump water heaters and duct sealing measures would be cost-effective at 1.00 and 1.16 respectively without the inclusion of administration costs. Meets OPUC Order No. 94-590, Section 10. Rebate Advantage 1 Eco-Rated manufactured homes built in Heatin g Zone 1 and Cooling Zone 3 has a TRC of 0.97. Measures would be cost-effective with TRC of 1 .1 0 without the inclusion of administration costs. Meets OPUC Order No. 94-590, Section 10. New Construction 5 Measures offered in both options. Cost-effectiveness exception request filed and and Retrofits approved with OPUC Advice No. '18-08. OPUC Order No. 94-590, Section 13. Exceptions B, C, and D. Retrofit 5 UCT and TRC ranges from 0.85 to 0.97. Cost-effectiveness exception request filed and approved with OPUC Advice No. 18-08. OPUC Order No. 94-590, Section 13. Tn Following the annual program cost-effectiveness results are tables that include measure-level cost-effectiveness. Exceptions to the measure-level tables are programs that are analyzed at the project level. These programs include Custom Projects, the custom option of Inigation Efficiency Rewards, Shade Tree, WAQC, and Weatherization Solutions for Eligible Customers. The measure-level cost-effectiveness includes inputs of measure life, energy savings, incremental cost, incentives, program administration cost, and net benefit. Program administration costs include all non-incentive costs: labor, marketing, training, education, purchased services, and evaluation. Energy and expense data have been rounded to the nearest whole unit. Page 9 Demand-Side Management 2018 Annual Report a Supplement 1 : Cost-Effectiveness ldaho Power Company 2018 DSM Detailed Expenses by Program Included in this supplement is a detailed breakout of program expenses as shown inAppendix 2 of the Demand Side Management 2018 Annual Report. These expenses are broken out by funding source major-expense type (labor/administration, materials, other expenses, purchased services, and incentives). Table 2. 2018 DSM detailed expenses by program (dollars) Sector/Program ldaho Rider Rider ldaho Power Tota! Program Easy Savings: Low-lncome Energy Efficiency Education Labor/Administrative Expense Materials and Equipment Other Expense Purchased Services Educational Distributions. Labor/Admin istrative Expense Materials and Equipment Purchased Services Energy Efficient Lighting......... lncentives Labor/Administrative Expense Other Expense Purchased Services Energy House Calls... Labor/Admin istrative Expense Materials and Equipment Other Expense Purchased Services Fridge and F reezer Recycling Program............... Labor/Admin istrative Expense Materials and Equipment Other Expense Purchased Services......... Heating & Cooling Efficiency Program................. Labor/Administrative Expense Materials and Equipment Other Expense Purchased Services lncentives Home Energy Audit Labor/Admin istrative Expense Materials and Equipment Other Expense Purchased Services Multifamily Energy Savings Program Labor/Adm in istrative Expense Materials and Equipment Other Expense Purchased Services Oregon Residential Weatherization Labor/Admin istrative Expense Other Expense lncentives 147,936 22,351 125,046 256 283 147,936 22,351 125,046 256 283 3,375,192 49,529 2,2s5,883 1,069,780 2,435,130 1,257,100 55,889 221,251 900,890 160,777 12,582 9,088 18,365 't20,742 33,907 755 1,424 (0) 31,728 585,211 116,398 6,372 71,235 83,841 307,365 264,394 57,485 21,971 50,619 134,318 205,',t3',1 64,221 38,442 37,138 65,330 5,507 3,737 957 812 3,307,782 47,054 2,207,759 1,052,970 2,343,127 1,214,018 53,094 210,614 865,401 146,7't2 11 ,954 8,634 17,491 108,634 33,172 718 1,353 (0) 31,102 565,780 110,579 6,766 69,186 80,408 298,840 264,394 57,485 21,971 50,619 134,31 I 205,1 31 64,221 38,442 37,1 38 65,330 67,409 2,475 48,124 16,81 0 92,003 43,082 2,795 10,637 35,489 14,065 628 454 874 12,108 735 37 71 0 626 19,431 5,819 (3e4) 2,048 3,432 8,525 5,507 3,737 957 812 Page 10 Demand-Side Management 2018 Annual Report Energy Efftciency/Demand Response Total Residential Total $ $ 27,5U,031 $ 8,620,729 $ 3 $ 1,199,257 244,628 1,495,429 $ 1,45,147 $ 30,278,718 10,3't 0,503 Supplement 1 : Cost-Effectiveness ldaho Power Company Sector/Program ldaho Rider Oregon Rider ldaho Power Total Program Rebate Advantage Labor/Administrative Expense Other Expense Purchased Services.... lncentives Residential New Construction Pilot Program..... Labor/Administrative Expense Materials and Equipment Other Expense Purchased Services lncentives Shade Tree Project Labor/Admin istrative Expense Materials and Equipment 4'.1,7'.l4 723 182 6,808 34,000 2 3,762 2,001 422 1,339 147,483 14,458 4,622 21,404 107,000 400,912 59,151 3,884 12,811 6,067 319,000 162,995 36,276 429 9,554 116,736 90,484 40,031 11,096 39,357 1,272,973 43,402 1,555 1,228,017 1,022,471 30,268 24,403 967,799 2 Other Expense Purchased Services Simple Steps, Smart Savings'". Labor/Administrative Expense Purchased Services lncentives Weatherization Assistance for Qualified Customers Labor/Admin istrative Expense Other Expense ........... Purchased Services Weatherization Solutions for Eligible Customers Labor/Administrative Expense Other Expense Purchased Services 1,272,973 43,402 1,555 1,228,O17 24,237 24,237 998,233 6,031 24,403 967,799 Custom Projects Labor/Administrative Expense Other Expense Purchased Services lneentives.......... New Construction.......................... Labor/Admin istrative Expense Other Expense... Purchased Services 8,400,495 564,640 352,090 1 ,1 87,801 6,295,965 2,004,058 184,780 8,831 137,927 1,672,520 5,732,650 296,658 689 26,392 718,604 4,690,307 144,436 4,667 107,780 (5,1 06) 37,096 395,860 29,713 24,887 72,463 268,797 65,587 9,725 465 4,692 50,706 257,529 1 5,614 36 1,389 37,82',1 202,668 1,738 244 1,144 (26e) 618 12,156 12,067 89 8,808,s12 606,420 377,067 1,260,263 6,564,762 2,069,645 1 94,504 9,296 't42,618 1,723,226 5,990,179 312,272 725 27,781 756,425 4,892,975 146,',t74 4,911 '108,924 (5,37s) 37,714 lncentives....... Retrofits................. Labor/Administrative Expense Materials and Equipment ...................... Other Expense Purchased Services lncentives.. Commercial Education lnitiative Labor/Administrative Expense . Materials and Equipment Other Expense Purchased Services Page 11 Demand-Side Management 2018 Annual Report 105,770 13,735 4,439 14,596 73,000 400,910 59,15'l 3,884 '12,811 6,065 319,000 't62,995 36,276 429 9,554 116,736 86,721 38,029 10,674 38,019 Commercial/l ndustrial $$720,711 $12,156 $ 17,0i4,s09 Supplement 1 : Cost-Effectiveness ldaho Power Company Sector/Program ldaho Rider Rider ldaho Power Total lrrigation Efficiency Rewards 2,681,664 336,1 29 7,917 30,1 33 4,931 2,302,554 233,916 17,685 417 1,979 171 2't3,663 38,126 38,012 2,953,706 391,826 8,334 32,226 5,103 2,516,217 Labor/Administrative Expense Other Expense 't14 Purchased Services lncentives NEAA 2,375,157 2,375,157 r25,008 125,008 2,500,165 2,500,165Purchased Services Commercial/lndustrial Energy Efficiency Overhead 444,787 307,350 157 112,461 24,819 225,437 171,075 54,362 2,926 101 300 2,525 23,0s1 16,154 8 5,583 1,306 11,865 9,004 2,861 558 409 468,396 323,913 166 118,192 26,125 237,302 180,079 57,223 2,926 101 300 2,525 1,473 632 841 172,2',t5 89,957 1,247 79,170 1,841 1,096,257 1 90,263 849,920 56,075 Labor/Admin istrative Expense Materials and Equipment Other Expense 149 Purchased Services Energy Efficiency Direct Program Overhead....... Labor/Admin istrative Expense Other Expense Home lmprovement Labor/Administrative Expense Other Expense Purchased Services Oregon Commercial Audit '1,473 632 841 8,961 4,498 62 4,308 92 54,125 9,467 42,001 2,657 Labor/Administrative Expense Other Expense Residential Energy Efficiency Education lnitiative.163,255 85,459 1 ,185 74,862 1,749 1,042,132 180,796 807,918 53,418 Labor/Admin istrative Expense Materials and Equipment Other Expense Purchased Services Residential Energy Efficiency Overhead............ Labor/Admin istrative Expense Other Expense Purchased Services Energy Efficiency Accounting and Analysis.......987,281 534,690 507 51,254 28,145 27 180,706 159,880 1,2',t9,241 722,7'15 534 20,826 475,166 17,724 6,924 10,799 98,243 98,243 Labor/Administrative Expense Materials and Equipment Other Expense 20,826 Purchased Services 452,O84 16,837 6,577 10,259 97,820 97,820 23,082 Energy Efficiency Advisory Group 887 347 540 424 424 Labor/Administrative Expense Other Expense Special Accounting Entries Special Accounting Entry . Page 12 Demand-Side Management 2018 Annual Report Total $ 2,681,664 $233,916 $38,126 $ 2,953,706 Market Transformation Total I 2,175,157 $125,008 $- $ 2,500,165 Other Program and Activities Total $ 1,878,538 $99,474 $558 $ 1,978,570 lndirect Program Expensee Total All Sectors Total $ $ r,r01,937 $ 1,'101,937 $ 52,565 $ 52,565 $ 180,706 $ 180,706 $ 1,335,208 1,335,208 Supplement 1 : Cost-Effectiveness ldaho Power Company Sector/Program ldaho Rider Oregon Rider ldaho Power Total A/C Cool Credit 433,659 63,912 (11 ,70e) 15,758 365,697 36,425 3,360 1 829 27,284 4,951 374,285 844,369 67,27',1 (11,708) 16,588 392,981 379,237 Labor/Admin istrative Expense Materials and Equipment Other Expense Purchased Services lncentives.......374,285 Flex Peak Program 58,727 64,316 3,090 61 ,227 310,270 433,313 61,816 371,496 Labor/Admin istrative Expense 58,727 lncentives.......310,270 lrrigation Peak Rewards 230,953 90,337 65,078 2,352 73,185 180,865 4,754 2,808 124 3,843 169,335 6,479,919 12,744 6,891,737 107,836 67,887 2,476 77,028 6,636,510 Labor/Administrative Expense Materials and Equipment Other Expense Purchased Services lncentives.......6,467,175 Table 3. Cost-effectiveness of 2018 programs by B/C test Program/Sector Educational Distributions Energy Efficient Lighting. TRC 4.51 6.64 1.74 0.83 3.00 1.08 't.23 0.80 4.68 0.52 0.51 RIM 0.58 0.59 0.42 o.47 0.47 0.45 0.59 0.57 0.48 0.25 0.22 PCT N/A 13.05 N/A 1.50 N/A 2.09 1.97 N/A 8.54 N/A N/A Heating & Cooling Efficiency Program Multifamily Energy Savings Program.. Rebate Advantage Residential New Construction Pilot Program.. Shade Tree Project Simple Steps, Smart Savings Weatherization Assistance for Qualified Customers................. Weatherization Solutions for Eligible Customers.. Residential Energy Efficiency Sector 2.37 3.16 0.54 10.03 Commercial Energy-Saving Kits.1.56 3.85 3.97 3.58 2.50 2.32 1.79 1.45 0.65 1 .18 0.89 0.87 N/A 1.92 1.88 1.55 Custom Projects.. New Construction Commercial/lndustrial Energy Efficiency Sector*..............3.75 1.87 1.01 1.76 lrrigation Efficiency Rewards 4.57 3.03 1.29 2.73 lrrigation Energy Efficiency Sector*4.60 3.04 1.29 2.73 Energy Efficiency Portfolio...3.04 2.26 0.83 2.85 *Commercialilndustrial Energy Efficiency Sector costefiectiveness ratios include savings and participant costs from Green Motors Rewinds. "*lrrigation Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds. Page 13 Demand-Side Management 2018 Annual Report Demand Response Total Residential Tota! $ $ 723,339 $ 433,659 $ 281,606 $ 36,425 $ $ $ g,l69,4lg 844,369 7,164,475 374,285 Commercialfl ndustrial Total $58,727 $64,316 $ 310,270 $433,313 lrrigation Total s 230,953 $180,865 t 6,479,919$ 6,891,737 Grand Total $ 33,663,001 $$168 S .14,262,080 UCT 2.68 4.67 1.37 1.65 1.60 1.93 2.5',1 0.71 1.44 0.43 0.37 Eoo-ot 6fEc @roc{ Co Eoo)oco op U)IoE(5 E o)o $ oo)(5(L qoc'to E oE -goI**ooOg =o9=E.8PG6Fc ae'd@nb oi =gui.o Q=o 5i 9= E gE 5b q)ti> g @(I > =obxE>onr -o9N-o OOEEc= E3Es j.l2S PHqoo - c<.60)biiE }< EPP"toY-=f,=J 3; Pq r.= .Pe3-oj.>ll o E}HE8; oXo_-= ri o 6- qsa 6 3 ='a--->.=E Od OO O >€,9 iPo o 6o(Dco otrLiJt! ou zzz ogoz sssss9s{too@Xoi'-\f,(!O(.)Y(Odsc.i- 3o; oooaoJog = c3Yo (5 G. coEo)oU) o Eoofoocn(E o =.2toco)aoFz Ef EE = =(oJUZZ o$ rR lo @@ od) tJJz :o:FazE-E3cOe6(E6 6-3 ti,wz : : :oo.:cc)oc oo (o -ooot o:F.EOJqle LOOz o I .9 (E 6oou.l + oog + (!ot .i()o ,E(u_5ECF36oz.oo co @()o lf)o)N. 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