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HomeMy WebLinkAbout20210315Goralski Direct and Exhibits.pdf BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION OF IDAHO POWER COMPANY FOR A DETERMINATION OF 2020 DEMAND- SIDE MANAGEMENT EXPENSES AS PRUDENTLY INCURRED. ))) ) CASE NO. IPC-E-21-04 IDAHO POWER COMPANY DIRECT TESTIMONY OF PAWEL P. GORALSKI GORALSKI, DI 1 Idaho Power Company Q. Please state your name and business address. 1 A. My name is Pawel P. Goralski. My business 2 address is 1221 West Idaho Street, Boise, Idaho 83702. 3 Q. By whom are you employed and in what capacity? 4 A. I am employed by Idaho Power Company (“Idaho 5 Power” or “Company”) as a Regulatory Consultant in the 6 Regulatory Affairs Department. 7 Q. Please describe your educational background. 8 A. In May of 2007, I received a Bachelor of 9 Business Administration degree in Finance from Boise State 10 University in Boise, Idaho. I have also attended “The 11 Basics: Practical Regulatory Training for the Electric 12 Industry,” an electric utility ratemaking course offered 13 through the New Mexico State University’s Center for Public 14 Utilities, “Electric Utility Fundamentals and Insights,” an 15 electric utility course offered by Western Energy 16 Institute, and “Electric Rates Advanced Course,” an 17 electric utility ratemaking course offered through Edison 18 Electric Institute. 19 Q. Please describe your work experience with 20 Idaho Power. 21 A. In 2017, I was hired as a Regulatory Analyst 22 in the Company’s Regulatory Affairs Department, and in 2020 23 I was promoted to my current position of Regulatory 24 Consultant. My primary responsibilities include supporting 25 GORALSKI, DI 2 Idaho Power Company the Company’s class cost-of-service activities, supporting 1 activities associated with demand-side management (“DSM”), 2 and I have been the Company’s witness supporting its annual 3 Fixed Cost Adjustment calculation and corresponding rates. 4 Q. What is the purpose of your testimony in this 5 case? 6 A. The purpose of my testimony is to present the 7 Company’s request for a determination that $47,010,777 of 8 DSM expenses incurred for the acquisition of demand-side 9 resources in 2020 was prudently incurred. This amount 10 includes $40,477,043 funded in 2020 by the Idaho Energy 11 Efficiency Rider (“Rider”) and $6,533,734 of demand 12 response program incentive payments funded through base 13 rates and tracked annually through the Power Cost 14 Adjustment (“PCA”). 15 My testimony will (1) provide a review of 2020 DSM 16 program performance, including impacts from the COVID-19 17 pandemic, (2) discuss 2020 DSM expenses and adjustments, 18 (3) provide an overview of the economic test results for 19 2020 as the Company has transitioned to the Utility Cost 20 Test (“UCT”) as the primary energy efficiency cost-21 effectiveness test, (4) review evaluation efforts, and (5) 22 describe the input stakeholders provided during the year. 23 GORALSKI, DI 3 Idaho Power Company I. 2020 DSM PROGRAM PERFORMANCE 1 Q. What is Idaho Power’s focus when evaluating 2 program performance? 3 A. Idaho Power takes its responsibility of 4 prudently managing customer funds seriously, and the 5 Company believes it is important to get the maximum value 6 for its customers. The Company’s actions in 2020, and the 7 content of the Demand-Side Management 2020 Annual Report 8 (“DSM 2020 Annual Report”), Attachment 1 to the Application 9 filed in this proceeding, provide evidence supporting the 10 conscientious work Idaho Power employees and leaders made 11 toward using customers’ funds wisely to support DSM 12 activities. 13 Q. Please provide an overview of Idaho Power’s 14 DSM efforts in 2020. 15 A. The 2020 energy savings achievement remained 16 strong and represents Idaho Power’s second highest annual 17 incremental energy savings achievement since the 18 establishment of the Rider in 2002. This was a slight 3 19 percent decrease from the all-time highest annual 20 incremental energy savings achieved in 2019. 21 On a system-wide basis, Idaho Power offered a broad 22 portfolio of energy efficiency programs and demand response 23 programs available to all customer segments and also 24 participated in market transformation efforts through the 25 GORALSKI, DI 4 Idaho Power Company Northwest Energy Efficiency Alliance (“NEEA”). In 1 addition, the Company offered several educational and 2 behavioral initiatives including the Residential Energy 3 Efficiency Education Initiative, seasonal contests, the 4 School Cohort, the Home Energy Report Program, and Water 5 and Wastewater Cohort continuation. 6 As described further in my testimony, in response to 7 the COVID-19 pandemic, the Company modified DSM activity to 8 prioritize the safety of customers, contractors, and Idaho 9 Power staff, while balancing opportunities to maintain 10 program performance. Idaho Power also solicited input from 11 its Energy Efficiency Advisory Group (“EEAG”) on ways to 12 adjust programs impacted by COVID-19 and identify 13 opportunities to increase program effectiveness, delivery, 14 and marketing. A summary of Idaho Power’s 2020 DSM 15 programs is provided in Table 1 below. 16 GORALSKI, DI 5 Idaho Power Company Table 1. 2020 DSM Programs by Sector, Operational Type, 1 and Location 2 Program by Sector Operational Type State A/C Cool Credit ............................................................. Demand Response ID/OR Easy Savings: Low-Income Energy Efficiency Education Energy Efficiency ID Educational Distributions ............................................... Energy Efficiency ID/OR Home Energy Report Program ............................... Energy Efficiency ID Energy Efficient Lighting ............................................... Energy Efficiency ID/OR Energy House Calls ...................................................... Energy Efficiency ID/OR Heating & Cooling Efficiency Program .......................... Energy Efficiency ID/OR Home Energy Audit Program ........................................ Energy Efficiency ID Multifamily Energy Savings Program ............................ Energy Efficiency ID/OR Oregon Residential Weatherization............................... Energy Efficiency OR Rebate Advantage ........................................................ Energy Efficiency ID/OR Residential New Construction Pilot Program ................ Energy Efficiency ID/OR Shade Tree Project ....................................................... Energy Efficiency ID Simple Steps, Smart Savings™ ..................................... Energy Efficiency ID/OR Weatherization Assistance for Qualified Customers ..... Energy Efficiency ID/OR Weatherization Solutions for Eligible Customers........... Energy Efficiency ID Commercial/Industrial Commercial and Industrial Efficiency Program Green Motors—Industrial Energy Efficiency ID/OR New Construction ..................................................... Energy Efficiency ID/OR Retrofits .................................................................... Energy Efficiency ID/OR Commercial Energy-Saving Kit ..................................... Energy Efficiency ID/OR Flex Peak Program ....................................................... Demand Response ID/OR Oregon Commercial Audits ........................................... Energy Efficiency OR Small Business Direct Install.......................................... Energy Efficiency ID/OR Irrigation Irrigation Efficiency Rewards ......................................... Energy Efficiency ID/OR Green Motors—Irrigation .......................................... Energy Efficiency ID/OR Irrigation Peak Rewards ................................................ Demand Response ID/OR All Sectors Northwest Energy Efficiency Alliance ............................ Market Transformation ID/OR 3 Table 1 illustrates the broad availability of 4 programs offered by Idaho Power to its customers in energy 5 efficiency, demand response, and education. Idaho Power’s 6 energy efficiency portfolio was cost-effective, resulting 7 GORALSKI, DI 6 Idaho Power Company in a 2.71 benefit/cost ratio when evaluated from a UCT 1 perspective, a 2.08 benefit/cost ratio when evaluated from 2 a Total Resource Cost (“TRC”) test perspective, and a 2.45 3 benefit/cost ratio when evaluated from a Participant Cost 4 Test (“PCT”) perspective. 5 The DSM 2020 Annual Report provides details for each 6 program, which include: a program description, 2020 7 performance results, program activities, cost-effectiveness 8 ratios, customer satisfaction, and evaluation results when 9 applicable. In addition, the DSM 2020 Annual Report 10 provides a description of Idaho Power’s DSM strategies for 11 2021. 12 Energy Efficiency 13 Q. What level of incremental annual energy 14 efficiency savings was achieved in 2020? 15 A. On a system-wide basis, Idaho Power achieved 16 196,809 megawatt-hours (“MWh”) of incremental annual energy 17 efficiency savings in 2020. This value includes 180,818 18 MWh from Idaho Power’s energy efficiency programs and an 19 estimated 15,991 MWh1 of energy efficiency market 20 transformation savings through NEEA initiatives. Chart 1 21 below shows the incremental annual energy efficiency 22 1 Because Idaho Power will not receive final 2020 savings from NEEA until the second quarter 2021, the NEEA-attributable savings is an estimate provided to Idaho Power by NEEA. GORALSKI, DI 7 Idaho Power Company savings in MWh from 2002 to the current year. Also shown 1 in this chart are the total energy efficiency expenses for 2 each year in millions of dollars. 3 Chart 1. Incremental Annual Energy Efficiency Savings 4 (MWh)and Energy Efficiency Expenses ($ millions) 2002-2020 5 6 Note: 2020 NEEA market-transformation savings are estimated. 7 Q. In 2020, did Idaho Power meet the energy 8 efficiency targets included in its 2017 Integrated Resource 9 Plan (“IRP”)? 10 A. Yes. In 2020, Idaho Power achieved 22 average 11 megawatt-hours (“aMW”) of incremental energy efficiency 12 savings, including NEEA estimated energy savings, which 13 exceeded the economic technical achievable potential 14 included in the 2017 IRP of 15 aMW. The energy efficiency 15 potential identified by the potential study for program 16 year 2020 assumed federally mandated lighting standards 17 would be in place; however due to changes in those federal 18 GORALSKI, DI 8 Idaho Power Company standards, the Company’s programs claimed savings in 2020 1 associated with lighting that were not anticipated at the 2 time the targets were established. 3 Q. Did any programs experience large increases in 4 savings from the prior year? 5 A. Yes. Three programs had significant increases 6 in savings in 2020 as compared to 2019: The Commercial & 7 Industrial (“C&I”) Program Custom Projects option 8 experienced a 33 percent increase due to the completion of 9 several large long-term projects, the Home Energy Report 10 Program experienced a 23 percent increase, which was 11 attributable to the full program rollout to 127,138 12 participants in 2020 compared to the 2019 pilot program 13 which included 24,976 participants, and the Irrigation 14 Efficiency Rewards Program experienced a 28 percent 15 increase in savings due to an increase in the number of 16 projects under the Custom Incentive option. 17 Q. Did the COVID-19 pandemic impact the Company’s 18 DSM activity? 19 A. Yes. Several programs experienced changes due 20 to the impacts of the COVID-19 pandemic. During the 21 initial months of the pandemic, Idaho Power suspended 22 activity that included person-to-person interactions such 23 as installers in customer homes, in-person trade shows, in-24 person vendor trainings, and contractors working at 25 GORALSKI, DI 9 Idaho Power Company business sites. These modifications were necessary and 1 prudent in the interest of safety for customers and those 2 employees and contractors involved in administering the 3 programs. The DSM 2020 Annual Report provides tables 4 summarizing the impacts of COVID-19 on Residential and C&I 5 programs on pages 3-4. 6 Through consultation with EEAG and other 7 stakeholders, the Company adapted and was still able to 8 achieve near-record savings for the 2020 program year. For 9 example, trainings and workshops were moved to a virtual 10 format, and Idaho Power tailored its marketing to provide 11 energy efficiency savings tips for residential customers 12 who may be working or schooling from home. 13 While in-person activity for the Small Business 14 Direct Install (“SBDI”) program was suspended during part 15 of the year, the Company was able to resume customer 16 installations in October 2020 when safety protocols for 17 contractors and customers were applied and in place. 18 Despite the challenges, the program achieved first year 19 savings of 780 MWh. 20 Q. Does the Company engage in customer education 21 and outreach activities for which it cannot quantify or 22 report savings? 23 A. Yes. The Company engages in significant 24 educational awareness activities and marketing efforts that 25 GORALSKI, DI 10 Idaho Power Company are likely to result in energy savings experienced by 1 customers but are not quantified or claimed as part of 2 Idaho Power’s annual savings. These efforts are designed 3 to reach all customer segments and are more fully explained 4 throughout the DSM 2020 Annual Report. In 2020, this 5 included activity such as: holding virtual technical 6 trainings and workshops with customers, producing the 7 Energy@Work newsletters, participating in the Idaho 8 Irrigation Equipment Association Winter Show, hosting or 9 participating in vendor workshops promoting irrigation 10 system efficiency, participating in agricultural shows, 11 publishing residential energy efficiency guides which 12 showcased behavioral changes to save energy, attending 13 other outreach activities such as home shows, sponsoring 14 virtual webinars, and financially supporting the Integrated 15 Design Lab. Several of these activities were held in 16 person before moving to a virtual format after March 2020. 17 Q. Did the Company discontinue any programs 18 during 2020? 19 A. Yes. Idaho Power’s Energy Efficient Lighting 20 and Simple Steps, Smart SavingsTM programs, which are both 21 part of the regional Simple Steps, Smart SavingsTM (“Simple 22 Steps”) program administered by the Bonneville Power 23 Administration (“BPA”), were discontinued by BPA in 24 September 2020 at the end of BPA’s fiscal year. The 25 GORALSKI, DI 11 Idaho Power Company regional program promoted the purchase of energy efficient 1 lighting and appliances through a point-of-sale buydown. 2 BPA’s decision to end the Simple Steps program was made in 3 the fourth quarter of 2019 based on projections the program 4 would no longer be cost effective after 2020. The decrease 5 in cost-effectiveness was due to the ongoing lighting 6 market transformation towards high-efficiency lightbulbs, a 7 decrease in deemed savings, and administrative costs from 8 the contractor. The decision to discontinue the program 9 was later supported by the deactivation of the Regional 10 Technical Forum (“RTF”) workbook on claimed savings for 11 showerheads in mid-2020. Idaho Power committed to 12 participate through the end of the regional program, 13 September 2020, and expected the program to remain cost-14 effective. 15 The mail-by-request Energy-Saving Kits (“ESK”), 16 which are part of the Educational Distributions program, 17 were discontinued in December 2020 after it was determined 18 the kits would no longer be cost effective going forward. 19 However, the Student Energy Efficiency Kits and Welcome 20 Kits will continue to be offered as part of the Educational 21 Distributions program. 22 The decision to discontinue the Energy Efficient 23 Lighting and Simple Steps, Smart SavingsTM programs, as well 24 as the ESK offering under the Educational Distributions 25 GORALSKI, DI 12 Idaho Power Company program, was finalized after discussions with EEAG. The 1 Company has committed to exploring the feasibility of 2 implementing cost-effective variations of these programs in 3 the future. 4 Demand Response 5 Q. What level of demand reduction capacity was 6 available from Idaho Power’s demand response programs in 7 2020? 8 A. The total available capacity of Idaho Power’s 9 three demand response programs was approximately 366 10 megawatts (“MW”). This value represents the total demand 11 response capacity calculated using the total enrolled MW 12 from participants with an expected maximum realization rate 13 for those participants in all three demand response 14 programs. The programs provided actual demand reduction of 15 336 MW during the 2020 program season. Chart 2 below 16 reflects the annual available peak demand reduction 17 capacity and actual load reduction in MW since 2004 and the 18 associated annual expenses in millions of dollars. 19 GORALSKI, DI 13 Idaho Power Company Chart 2. Peak Demand Reduction Capacity (MW) and Demand 1 Response Expenses ($ millions) 2004-2020 2 3 II. 2020 DSM EXPENSES AND ADJUSTMENTS 4 Q. What amount of DSM expenses is the Company 5 requesting the Commission find were prudently incurred? 6 A. In the delivery of energy efficiency, demand 7 response, and market transformation programs, Idaho Power 8 expended $40,477,043 of Rider funds and $6,533,734 of 9 demand response program incentives, for a total of 10 $47,010,777 spent on demand-side resource acquisition in 11 2020. Idaho Power requests that the 2020 Rider-funded DSM 12 expenses, and the 2020 demand response program incentives 13 recovered through base rates and the PCA, be reviewed 14 together for a prudence determination. Exhibit No. 1 to my 15 testimony, 2020 Idaho DSM Expenses and Adjustments for 16 GORALSKI, DI 14 Idaho Power Company Prudence Filing, shows a breakout of these expenses by 1 program, customer sector, and funding source. 2 This year’s Rider-funded DSM expenses increased 6 3 percent compared to the DSM expenses reviewed in last 4 year’s prudence case, Case No. IPC-E-20-15. The increase 5 in 2020 expenses was primarily driven by slightly higher 6 costs to acquire savings in the Educational Distributions 7 Program and the C&I Program Custom Projects and Retrofits 8 options due to a reduction in lighting claimed savings. 9 Q. Please compare the dollar amounts in Exhibit 10 No. 1 to your testimony with Appendix 2, 2020 DSM expenses 11 by funding source (dollars), of the DSM 2020 Annual Report. 12 A. For clarity and ease of understanding, Exhibit 13 No. 1 ties to Appendix 2, which is found on page 152 of the 14 DSM 2020 Annual Report. The first column of Appendix 2 15 labeled “Idaho Rider” and the first column of Exhibit No. 1 16 labeled “Rider Expenses” match at the row labeled “Total 17 Expenses” in Exhibit No. 1 and “Grand Total” in Appendix 2 18 in the amount of $40,409,911. All values in Exhibit No. 1 19 represent DSM expenses for the Idaho service area only. 20 One prior year-end and two current year-end accounting 21 adjustments were necessary to accurately arrive at the 22 total 2020 expenses for purposes of the prudence 23 determination. These three adjustments are listed in 24 Exhibit No. 1 under the Adjustments section as 2019 Idaho 25 GORALSKI, DI 15 Idaho Power Company Labor Prudence Adjustment, Green Power, and SBDI: Small 1 Business Direct Install. 2 Q. Please describe the prior year-end accounting 3 adjustment included in Exhibit No. 1. 4 A. In 2020, Idaho Power made an adjustment of 5 $51,166 to 2019 DSM labor expense in conformance with 6 Commission Order No. 34827 in the Company’s 2019 DSM 7 Prudence filing, Case No. IPC-E-20-15. The $51,166 2019 8 DSM labor disallowance was credited back to the Rider in 9 October 2020 when Order No. 34827 was received. To 10 accurately reflect 2020 DSM spending, an adjustment is 11 necessary to add $51,166 back to the 2020 expenses to 12 reflect the expenses incurred related to 2020 DSM efforts. 13 Q. Please describe the current year-end 14 accounting adjustments included in Exhibit No. 1. 15 A. During the year-end financial close process, 16 two accounting adjustments to the Rider for 2020 were 17 identified, and the corrections were made in January and 18 February of 2021. The first adjustment reverses a credit 19 of $57 that was incorrectly applied to the Rider during 20 2020 instead of the Company’s Green Power program, which is 21 a non-Rider funded program. The second adjustment adds 22 $15,910 of expenses associated with activity for the SBDI 23 Program that occurred in Idaho that were incorrectly 24 charged to the Oregon Energy Efficiency Rider in 2020. 25 GORALSKI, DI 16 Idaho Power Company Q. What amount of Rider-funded employee DSM-1 related labor expense did the Company incur in 2020? 2 A. The 2020 total Rider-funded DSM employee labor 3 expense incurred by the Company was $3,408,382 as it 4 related to managing the DSM program portfolio and pursuing 5 energy efficiency educational and awareness campaigns. 6 Q. What amount of 2020 DSM-related labor is the 7 Company requesting be funded through the Rider? 8 A. The Company is requesting $3,303,013 of the 9 total $3,408,382 in 2020 DSM labor expense to be collected 10 through the Rider. The Company believes it was necessary 11 to spend $3,408,382 for 2020 DSM labor to support the 12 pursuit of cost-effective energy efficiency in the 13 Company’s Idaho service area, but as part of this prudence 14 request, the Company has only included Rider-funded labor 15 based on the annual labor cost cap detailed in Order No. 16 34874. The Company continues to include all program 17 expenses, including total labor, in its cost-effectiveness 18 determinations, and only seeks a prudence determination for 19 the amount based on the Commission’s authorized 20 methodology. 21 Q. How did the Commission state the maximum 22 amount of DSM labor expense be calculated in the Company’s 23 annual prudence request? 24 A. In Order No. 34874, the Commission stated: 25 GORALSKI, DI 17 Idaho Power Company “The Company shall apply the 2% cap to actual average wages 1 per FTE going forward. The baseline for the 2% cap shall 2 be the prior year’s actual average wages per FTE.” 3 Q. Did the Company apply the Commission’s method 4 to determine the amount of labor to be funded by the Rider? 5 A. Yes. Table 2 shows the calculation of the 6 2020 labor expenses applied to the Idaho Rider. The 7 Company applied a 2 percent cap to the 2020 DSM labor 8 expense increase based on the prior year’s actual average 9 wages per FTE, as directed by the Commission, and found 10 $105,369 was in excess of the maximum allowed labor 11 expense. This amount is not included in Rider-funded 12 expenses for 2020 DSM prudence. 13 Table 2. Labor Expense Calculation 2019 Total Actual Labor Expense $ 3,293,785 2019 FTEs ÷ 25.52 2019 Actual Average Wage per FTE $ 129,067 2% Cap x 1.02 2020 Maximum Average Wage per FTE $ 131,648 2020 FTEs x 25.09 2020 Maximum Allowed Labor Expense* $ 3,303,013 2020 Total Actual Labor Expense - $ 3,408,382 Amount in Excess of Maximum Allowed Labor Expense $ (105,369) *2020 maximum allowed labor expense calculated based on actual 2020 FTE 14 equal to total hours/1,912, not displayed rounded value of 25.09. 15 16 Q. What was the year-end 2020 balance of the 17 Rider? 18 A. The Rider account balance on December 31, 19 2020, had a negative, or under-collected balance of 20 GORALSKI, DI 18 Idaho Power Company $12,230,374. Table 3 below shows the January 2020 beginning 1 balance, funding plus accrued interest, expenses, and the 2 ending balance as of December 31, 2020. 3 Table 3. Idaho Energy Efficiency Rider (January-December 4 2020) 5 Idaho Energy Efficiency Rider 2020 Beginning Balance $ (311,045) 2020 Funding plus Accrued Interest as of 12/31/20 28,490,581 Total 2020 Funds 28,179,537 2020 Expenses as of 12/31/20 (40,409,911) Ending Balance as of 12/31/20 $ (12,230,374) 6 III. 2020 COST-EFFECTIVENESS OVERVIEW 7 Q. What is Idaho Power’s overall goal when it 8 comes to DSM cost-effectiveness tests? 9 A. Idaho Power strives to ensure that DSM funds 10 collected from customers are utilized to support the 11 pursuit of cost-effective energy efficiency and demand 12 response programs, with the limited exception of certain 13 policy considerations. This goal is achieved by applying a 14 multi-step process. Prior to the actual implementation of 15 energy efficiency or demand response programs, Idaho Power 16 performs a preliminary cost-effectiveness analysis to 17 assess whether a potential program design or measure will 18 be cost-effective from the perspective of customers as well 19 as the Company. Idaho Power measures cost-effectiveness 20 under three tests: the UCT, the TRC test, and the PCT. A 21 review of each test allows for an economic assessment of 22 GORALSKI, DI 19 Idaho Power Company the life-cycle costs and benefits of a DSM investment from 1 the perspective of DSM program participants, Idaho Power, 2 and non-participating customers. 3 Idaho Power also reviews the cost-effectiveness 4 results for each program and measure on an annual basis to 5 determine whether a program should continue or be modified 6 so it remains cost-effective on an ongoing basis. If a 7 measure or program is identified as non-cost-effective, 8 Idaho Power seeks EEAG input before making its 9 determination on modifying, continuing, or discontinuing an 10 offering. 11 The cost-effectiveness test methodologies and 12 assumptions are described in more detail in the first pages 13 of Supplement 1: Cost-Effectiveness (“Supplement 1”), 14 included in Attachment 1 to the Application in this 15 proceeding. 16 Q. Does Idaho Power believe its application of 17 the standard economic tests is consistent with Commission 18 directives? 19 A. Yes. Idaho Power believes its application of 20 the three economic tests is consistent with prior 21 Commission directives, as described in Order No. 33365:2 22 We thus find it reasonable for the Company to 23 continue screening potential programs using each 24 2 In the Matter of the Application of Idaho Power Company for a Determination of 2014 Demand-Side Management Expenditures as Prudently Incurred, Case No. IPC-E-15-06, Order No. 33365, p. 9-10. GORALSKI, DI 20 Idaho Power Company test as a guideline, and to advise us on how the 1 Company's programs fare under each test. When the 2 Company ultimately seeks to recover its prudent 3 investment in such programs, however we believe the 4 Company may (but need not exclusively) emphasize the 5 UCT-and that test's focus on Company-controlled 6 benefits and costs-to argue whether the programs 7 were cost-effective. As always, the Company 8 ultimately must persuade us that its program 9 investments were prudent under the totality of the 10 circumstances. 11 12 Because Idaho Power must ultimately demonstrate to 13 the Commission that its program investments were prudent 14 under "the totality of the circumstances", the Company 15 continues to evaluate performance from the three 16 perspectives. 17 Q. Has the Commission subsequently issued a 18 determination on the proper economic test perspective for 19 energy efficiency resources in the IRP? 20 A. Yes. In Order No. 34469 issued in Case No. 21 IPC-E-19-11, the Commission ordered “that Idaho Power use 22 the UCT perspective for integrated resource planning.” 23 A. 2020 Cost-Effectiveness Results 24 Q. What were the results of the 2020 cost-25 effectiveness analyses? 26 A. Exhibit No. 2 to my testimony, 2020 Cost-27 Effectiveness Summary by Program, Sector, and Portfolio, 28 shows the results of the UCT, TRC test, and PCT for every 29 energy efficiency program aggregated by sector and for the 30 overall portfolio. As shown in Exhibit No. 2, and below in 31 GORALSKI, DI 21 Idaho Power Company Table 4, all three program sectors and the overall DSM 1 portfolio achieved benefit/cost ratios greater than 1.0 2 from the perspective of all three cost-effectiveness tests. 3 Table 4. 2020 Benefit/Cost by Sector & Portfolio 4 Sector Test (UCT) Cost Test Residential 1.64 1.91 6.41 Commercial/Industrial 3.18 1.62 1.58 Irrigation 4.01 4.09 3.96 Portfolio 2.71 2.08 2.45 5 On an individual program basis, 11 of the 16 energy 6 efficiency programs offered in Idaho for which the Company 7 calculates cost-effectiveness had benefit/cost ratios 8 greater than 1.0 under the UCT. 9 The PCT ratios cannot be calculated for programs 10 that do not have a direct customer cost, and the PCT is 11 shown as “N/A” in Exhibit No. 2 for those programs. The 12 details of these calculations are found in Supplement 1 of 13 the DSM 2020 Annual Report. 14 Q. Did Idaho Power calculate cost-effectiveness 15 for each measure within each energy efficiency program it 16 offers? 17 A. Yes. In 2020, Idaho Power evaluated the 18 benefits and costs of 281 measures. The results of these 19 calculations, along with measure assumption details and 20 GORALSKI, DI 22 Idaho Power Company source documentation, can be found in Supplement 1 to the 1 DSM 2020 Annual Report. 2 Q. How did Idaho Power address any individual 3 measures that are not cost-effective based on one or more 4 tests? 5 A. The cost and benefit values used in the 6 various analyses are based on markets, technologies, 7 economic inputs, savings estimates, and cost estimates, 8 which can change over time. When a measure is identified 9 as non-cost-effective at a specific point in time, Idaho 10 Power first evaluates whether the inputs used in the 11 calculations are still applicable. Then the Company 12 determines if the measure parameters should be modified or 13 if the measure should be eliminated altogether. For 14 additional detail on measure analysis, please refer to 15 Supplement 1 to the DSM 2020 Annual Report. 16 B. Transition to UCT for Energy Efficiency Program 17 Implementation and Evaluation 18 Q. Has the Commission’s directive to rely on the 19 UCT for resource planning impacted program implementation 20 and evaluation? 21 A. Yes. After reviewing Commission Order Nos. 22 33365 and 34469 and consulting with EEAG, the Company is 23 now primarily relying on UCT cost-effectiveness to screen 24 and make program continuation decisions in its Idaho 25 GORALSKI, DI 23 Idaho Power Company service area. Considering the most recent Commission 1 order, coupled with the previous Commission findings that 2 Idaho Power can emphasize the UCT for prudence 3 determinations, the Company will focus the remainder of its 4 program-specific cost-effectiveness discussion on programs 5 that did not pass the UCT for program year 2020. 6 1. Income Qualified Weatherization 7 Q. What were the cost-effectiveness results for 8 the Weatherization Assistance for Qualified Customers 9 (“WAQC”) and Weatherization Solutions for Eligible 10 Customers (“Solutions”) programs? 11 A. As shown in Exhibit No. 2, the WAQC and 12 Solutions programs, both of which are offered to limited-13 income customers, did not achieve the 1.0 benefit/cost 14 ratio threshold in 2020 under the UCT. 15 In 2020, Idaho Power contracted with a third-party 16 consultant to conduct a billing analysis of 2016-2018 17 weatherization jobs for both the WAQC and Solutions 18 programs. The analysis estimated the electric energy 19 savings of the weatherization jobs by comparing whole-home 20 energy usage of the participants, before and after the 21 weatherization jobs, to a matched comparison group. The 22 results of the analysis showed that savings for 23 weatherization jobs have decreased relative to savings 24 reported in previous years. To address the decrease in 25 GORALSKI, DI 24 Idaho Power Company energy savings, and thus cost-effectiveness, Idaho Power is 1 working with EEAG, as well as the weatherization managers 2 that oversee the weatherization work, to discuss ways to 3 improve the cost-effectiveness of the programs. 4 Q. Why do the WAQC and Solutions programs 5 continue to not be cost-effective, and how does Idaho Power 6 attempt to improve them? 7 A. The WAQC and Solutions programs provide real 8 and substantial per home savings, but due to the costs of 9 comprehensive whole-house weatherization, it is difficult 10 for the value of the savings to outweigh the costs. The 11 weatherization services provided through the WAQC program 12 are consistent with the Idaho State Weatherization 13 Assistance Program (“WAP”) guidelines, and both the WAQC 14 and Solutions programs are offered at no charge to the 15 participant. These programs are designed for limited-16 income customers, and Idaho Power believes there are other 17 benefits to these programs that are difficult to quantify, 18 such as health and safety measures. In 2020, 115 homes in 19 Idaho were weatherized through the WAQC program. 20 For the Solutions program, the Company has continued 21 a participation requirement that was introduced in 2016 22 requiring landlords to fund at least 10 percent of the 23 project. In 2020, the Company held the average cost per 24 home constant from the 2014 level for the weatherization 25 GORALSKI, DI 25 Idaho Power Company contractors, which helped reduce the cost of the program. 1 The Company continues to support the whole-house philosophy 2 by allowing a $6,000 annual maximum average per-home cost. 3 In 2020, 27 homes in Idaho were weatherized through the 4 Solutions program. Of the 27 homes that were weatherized, 5 15 were single-family, 11 were manufactured homes, and one 6 was a multi-family unit. 7 Q. Does Idaho Power plan to continue offering the 8 WAQC and Solutions programs in the future? 9 A. Yes. While the Company has identified that 10 the programs are not cost-effective under the UCT, unless 11 the Commission directs otherwise, Idaho Power will continue 12 to offer them to the Company’s limited-income customers on 13 an ongoing basis. The Company will also continue to 14 consult the EEAG and weatherization managers who oversee 15 the weatherization work to look for ways to improve the 16 cost-effectiveness of these programs. 17 2. Programs Impacted by COVID-19 18 Q. Did impacts from COVID-19 result in certain 19 programs not being cost-effective? 20 A. Yes. As previously discussed in my testimony, 21 due to safety concerns, in-home activity associated with 22 programs was suspended mid-March, meaning programs that 23 rely on direct install measures or in-home work to achieve 24 savings had reduced opportunities for participation. Due 25 GORALSKI, DI 26 Idaho Power Company to this limitation, Energy House Calls and the Multifamily 1 Energy Savings Program had UCT ratios of 0.63 and 0.14, 2 respectively, in 2020. 3 Q. How has Idaho Power maintained program demand 4 for Energy House Calls and the Multifamily Energy Savings 5 Program once in-home activity is safe to resume? 6 A. While the in-home activity was suspended, the 7 Company’s program specialists have maintained a waitlist of 8 customers or buildings who are eligible for and desire to 9 participate in the programs. Marketing efforts related to 10 the programs have also continued. The overall level of 11 participation was not at a scale for the programs to 12 achieve cost-effectiveness in 2020. However, the Company is 13 confident that both Energy House Calls and the Multifamily 14 Energy Savings Program can be cost effective with a typical 15 year’s participation. At the time of this filing, the 16 Company believes with social distancing and proper safety 17 protocols the programs may be able to resume in-home 18 activity in 2021. The Company will continue to adhere to 19 local, state, and federal guidelines as the pandemic 20 evolves. 21 3. Discontinued Programs 22 Q. Did the Company discontinue any programs which 23 were no longer cost-effective? 24 A. Yes. As noted earlier, The Simple Steps, 25 GORALSKI, DI 27 Idaho Power Company Smart SavingsTM Program had a planned sunset date of 1 September 2020, but the final year UCT cost-effectiveness 2 of 0.78 was lower than expected. Key final year 3 differences from prior-year expectations were large swings 4 in showerhead sales product mix skewing towards showerheads 5 that had large reductions in RTF savings assumptions and 6 incremental lighting savings reaching market saturation. 7 C. 2020 Demand Response Cost-Effectiveness 8 Q. Does Idaho Power evaluate cost-effectiveness 9 for its three demand response programs? 10 A. Yes, however, benefit/cost ratios are not 11 calculated for the three demand response programs. 12 Instead, the methodology used to determine the cost-13 effectiveness of the demand response programs compares the 14 annual cost of operating Idaho Power’s demand response 15 portfolio to the levelized annual cost of a single 170 MW 16 deferred resource over a 20-year life.3 In 2020, the 17 system-wide cost of operating the three demand response 18 programs was approximately $7.7 million ($6.9 million of 19 incentives and $0.8 million of other costs). The amounts 20 attributable to the Idaho-only jurisdiction were $7.3 21 million ($6.5 million of incentives and $0.8 million of 22 other costs). Idaho Power estimated that if the three 23 3 Demand response valuation methodology was reached by settlement agreement and approved in Commission Order No. 32923 as part of Case No. IPC-E-13-14. GORALSKI, DI 28 Idaho Power Company programs were dispatched for the full 60 hours allowed, the 1 total costs would have been approximately $10.9 million on 2 a system-wide basis. 3 Using the 2017 IRP, acknowledged by the Commission 4 in Order No. 33983, Case No. IPC-E-17-11, the maximum 5 annual cost of running all three demand response programs 6 for the maximum allowable hours of 60 hours should be no 7 more than $19.6 million, leading Idaho Power to conclude 8 that its three demand response programs were cost-effective 9 in 2020. 10 IV. EVALUATION ACTIVITY OVERVIEW 11 Q. What is the Company’s approach to DSM program 12 evaluation? 13 A. To ensure the ongoing cost-effectiveness of 14 programs through validation of energy savings and demand 15 reduction, and to guide the efficient management of its 16 programs, the Company relies on evaluations by third-party 17 contractors chosen through a competitive bidding process. 18 Idaho Power uses industry-standard protocols, internal 19 analyses, and regional and national studies to inform its 20 internal and external evaluation efforts. The Company has 21 generally conducted impact evaluations every three years, 22 and process evaluations for relatively new programs, or 23 when a program has significant changes. Supplement 2: 24 Evaluations (“Supplement 2”) to the DSM 2020 Annual Report 25 GORALSKI, DI 29 Idaho Power Company provides additional information regarding how Idaho Power 1 evaluates its programs. 2 Q. How does Idaho Power utilize the evaluations 3 described above? 4 A. Idaho Power uses the results of its 5 evaluations to inform decisions related to program 6 improvement, to compare processes to industry best 7 practices, and to benchmark and validate reported program 8 savings. 9 Q. What evaluation activities took place in 2020? 10 A. In addition to the annual cost-effectiveness 11 analyses that the Company conducts for each program, Idaho 12 Power contracted with several vendors to conduct impact, 13 process, and other evaluations in 2020. Evaluations 14 conducted by these vendors were on the following programs: 15 • Impact and process evaluations on Educational 16 Distributions and Irrigation Efficiency Rewards. 17 • Impact evaluation on Rebate Advantage. 18 • Process evaluation on Home Energy Reports. 19 • Joint billing analysis for the WAQC and 20 Solutions. 21 • Program summary reports and savings analyses for 22 Home Energy Reports, Residential Energy-Saving 23 Kits, Student Energy Efficiency Kits and 24 Commercial Energy-Saving Kits. 25 GORALSKI, DI 30 Idaho Power Company • Additionally, Idaho Power completed internal 1 analyses of the Irrigation Peak Rewards, Flex 2 Peak, and A/C Cool Credit demand response 3 programs. 4 Three of the impact evaluations that were conducted 5 in 2020 analyzed reported savings from the 2019 program 6 year. Realization rates were as follows: 7 • Educational Distributions – 97.2% for overall 8 savings; 100% for number of kits. 9 • Rebate Advantage – 100%. 10 • Irrigation Efficiency Rewards – 97.4% overall kWh 11 (100% Menu and 95.42% Custom). 12 The final reports for these evaluations, and the 13 market effects evaluations conducted by NEEA, are included 14 in Supplement 2 to the DSM 2020 Annual Report. 15 Q. Does Idaho Power have a DSM program evaluation 16 plan for 2021-2022? 17 A. Yes. The evaluation plan is included as 18 Exhibit No. 3 to my testimony and is also included in 19 Supplement 2 to the DSM 2020 Annual Report. In 2021, Idaho 20 Power’s evaluation plan includes the following third-party 21 evaluations: 22 • Impact and process evaluations for Heating & 23 Cooling Efficiency and C&I Custom Projects 24 option. 25 GORALSKI, DI 31 Idaho Power Company • Impact evaluations for A/C Cool Credit, Flex 1 Peak, Irrigation Peak Rewards. 2 • Process evaluation for Small Business Direct-3 Install. 4 • Home Energy Reports savings analysis. 5 V. STAKEHOLDER INPUT 6 Q. What is the EEAG? 7 A. In 2002, Idaho Power formed the EEAG to 8 provide input on enhancing existing DSM programs, 9 recommending new energy efficiency measures, and 10 implementing energy efficiency programs. Members include 11 customer representatives from residential, irrigation, 12 commercial, and industrial sectors, and technical experts, 13 as well as representatives for limited-income individuals, 14 environmental organizations, state agencies, county and 15 city governments, the Commission, the Public Utility 16 Commission of Oregon, and Idaho Power. 17 Q. What is the structure of EEAG meetings? 18 A. The EEAG generally meets quarterly in-person 19 at Idaho Power’s corporate offices and through webinars as 20 needed. Due to COVID-19 safety protocols, all but one EEAG 21 meeting was held virtually in 2020, and the Company found 22 the transition to virtual meetings was successful in 23 maintaining member participation. 24 GORALSKI, DI 32 Idaho Power Company The agenda during EEAG meetings is varied, but 1 typically includes: new energy efficiency program ideas, 2 new measure proposals, marketing methods, specific measure 3 details including cost-effectiveness, the status of energy 4 efficiency expenses, Idaho and Oregon Rider funding, 5 program and project updates, and general information on DSM 6 issues. When appropriate, the Company invites experts to 7 speak on evaluations, research, and other topics of 8 interest to enhance EEAG’s understanding. 9 Q. How did Idaho Power solicit guidance from the 10 EEAG during the 2020 program year? 11 A. The Company held six EEAG meetings throughout 12 2020, one in-person and five webinars. During these 13 meetings, Idaho Power discussed and requested 14 recommendations on a broad range of DSM issues. As 15 explained in greater detail in the DSM 2020 Annual Report, 16 the list below includes some of the topics Idaho Power 17 worked with the EEAG on for development, design, promotion, 18 or input: 19 • COVID-19 Impacts: The Company provided status 20 updates on affected programs throughout the year. 21 The Company shared how it was making activity 22 modifications and EEAG members provided feedback 23 on offering increased virtual program workshops, 24 trainings, and ways to leverage digital and print 25 GORALSKI, DI 33 Idaho Power Company marketing channels to provide energy efficiency 1 tips for customers who may be spending more time 2 at home. 3 • WAQC and Solutions: Idaho Power reviewed with 4 EEAG the results of the third-party energy 5 savings evaluation completed for the Company’s 6 WAQC and Solutions programs. The Company 7 highlighted that future program cost-8 effectiveness would be impacted by incorporating 9 the lower energy savings assumptions from the 10 evaluation and discussed several potential ideas 11 to improve program cost-effectiveness. One EEAG 12 recommended exploring the potential of measure 13 lists. EEAG members also asked additional 14 questions on the types of measures installed and 15 other program funding sources. 16 • Educational Distributions: With the decision to 17 sunset ESKs, an EEAG member suggested a “last 18 chance” marketing tactic to help promote a final 19 push before the program’s end. This resulted in 20 successfully distributing the remaining ESKs in 21 inventory to customers. 22 • Energy Efficient Lighting/Simple Steps, Smart 23 Savings™: With the BPA-administered program 24 ending September 30, 2020, Idaho Power consulted 25 GORALSKI, DI 34 Idaho Power Company with EEAG on pursuing a buydown program for 1 measures in markets that still have cost-2 effective savings potential. EEAG was supportive 3 of the idea and appreciated Idaho Power’s work 4 with Energy Trust of Oregon in exploring 5 potential lighting options for a new program 6 offering. 7 Q. Did Idaho Power work with Commission Staff 8 (“Staff”) in response to concerns raised in 2019 DSM 9 Prudence Comments? 10 A. Yes. The Company met with Staff on January 11 15, 2021 to better understand Staff’s concerns and 12 recommendations for potential adjustments to the Company’s 13 demand response programs. During the meeting, several 14 aspects of the Company’s demand response programs were 15 discussed, including the Value of Demand (“VOD”) 16 calculation and the ability to meet coincident peak when 17 capacity deficient. As part of the discussion, the Company 18 and Staff found an opportunity to update the Effective Load 19 Carrying Capacity (ELCC) portion of the VOD calculation 20 annually to more accurately reflect the availability of 21 demand response programs to meet peak load. 22 GORALSKI, DI 35 Idaho Power Company VI. CONCLUSION 1 Q. Do you believe that the information contained 2 in this testimony and attached exhibits supports a prudence 3 determination for 2020 DSM expenses? 4 A. Yes. The DSM 2020 Annual Report details Idaho 5 Power’s DSM offerings in program specific sections. Based 6 on the DSM 2020 Annual Report, the testimony set forth 7 above, and the attached exhibits, Idaho Power respectfully 8 requests the Commission determine that $47,010,777 of DSM 9 expenses incurred for the acquisition of demand-side 10 resources was prudently incurred. 11 Q. Does this conclude your testimony? 12 A. Yes, it does. 13 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-04 IDAHO POWER COMPANY GORALSKI, DI TESTIMONY EXHIBIT 1 Expenses Rider Expenses Demand Response Program Incentives Recorded in PCA Total Expenses Energy Efficiency/Demand Response Residential A/C Cool Credit 405,402$ 332,420$ 737,822$ Educational Distributions 3,912,564 -3,912,564 Energy Efficient Lighting 1,603,129 -1,603,129 Energy House Calls 40,492 -40,492 Heating & Cooling Efficiency Program 578,893 -578,893 Home Energy Audit 128,547 -128,547 Multifamily Energy Savings Program 83,951 -83,951 Rebate Advantage 174,670 -174,670 Residential New Construction 471,542 -471,542 Shade Tree Project 27,652 -27,652 Simple Steps, Smart Savings ™93,865 -93,865 Weatherization Solutions for Eligible Customers 198,226 -198,226 Commercial/Industrial Commercial Energy-Saving Kits 97,645 -97,645 Custom Projects 17,533,047 -17,533,047 FlexPeak Program 84,716 247,383 332,099 New Construction 2,278,454 -2,278,454 Retrofits 3,481,992 -3,481,992 SBDI: Small Business Direct Install (c)322,463 -322,463 Irrigation Irrigation Efficiency 3,165,075 -3,165,075 Irrigation Peak Rewards 264,843 5,953,930 6,218,773 Energy Efficiency/Demand Response Total 34,947,166$ 6,533,734$ 41,480,900$ Market Transformation NEEA 2,649,749 -2,649,749 Market Transformation Total 2,649,749$ -$ 2,649,749$ Other Programs and Activities Commercial/Industrial Energy Efficiency Overhead 393,112 -393,112 Energy Efficiency Direct Program Overhead 322,964 -322,964 Residential Energy Efficiency Education Initiative 209,644 -209,644 Residential Energy Efficiency Overhead 985,565 -985,565 Other Programs and Activities Total 1,911,284$ -$ 1,911,284$ Indirect Program Expenses Energy Efficiency Accounting & Analysis 929,467 -929,467 Energy Efficiency Advisory Group 4,448 -4,448 Special Accounting Entries Special Accounting Entries (32,203)-(32,203) Indirect Program Expenses Total 901,712$ -$ 901,712$ Total Expenses 40,409,911$ 6,533,734$ 46,943,645$ Adjustments Prior year-end accounting adjustments: 2019 Idaho Labor Prudence Adjustment (a)51,166 51,166 Current year-end accounting adjustments: Green Power (b)57 57 SBDI: Small Business Direct Install (c)15,910 15,910 2020 Prudence Filing Total 40,477,043$ 6,533,734$ 47,010,777$ (a) $51.2K adjustment for 2019 labor expenses per Order No. 34827. Credit was applied to the Idaho Rider in 2020. (b) Credit to the Idaho Rider that should have been applied to Green Power, a non-rider program. The correction was made in 2021. (c) Idaho Rider expenses of $15.9K that were initially charged to the Oregon Rider. The correction was made in 2021. Idaho Power Company 2020 Idaho DSM Expenses and Adjustments for Prudence Filing Exhibit No. 1 Case No. IPC-E-21-04 P. Goralski, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-04 IDAHO POWER COMPANY GORALSKI, DI TESTIMONY EXHIBIT 2 Program/Sector Utility Cost Test (UCT) Total Resource Cost (TRC) Participant Cost (PCT) Educational Distributions 1.45 2.19 N/A Energy Efficient Lighting 4.56 4.20 7.77 Energy House Calls 0.63 0.77 N/A Heating & Cooling Efficiency Program 1.66 0.81 1.46 Multifamily Energy Savings Program 0.14 0.28 N/A Rebate Advantage 1.69 0.98 2.17 Residential New Construction 1.54 1.20 2.26 Shade Tree Project*N/A N/A N/A Simple Steps, Smart SavingsTM 0.78 3.24 13.23 Weatherization Assistance for Qualified Customers 0.20 0.33 N/A Weatherization Solutions for Eligible Customers 0.13 0.23 N/A Residential Energy Efficiency Sector 1.64 1.91 6.41 Commercial Energy-Savings Kits 1.24 2.38 N/A Custom Projects 3.26 1.61 1.42 New Construction 3.40 2.63 3.14 Retrofits 3.25 1.35 1.56 Small Business Direct Install 1.04 1.61 N/A Commercial/Industrial Energy Efficiency Sector **3.18 1.62 1.58 Irrigation Efficiency 4.00 4.09 3.96 Irrigation Energy Efficiency Sector ***4.01 4.09 3.96 Energy Efficiency Portfolio 2.71 2.08 2.45 2020 Benefit/Cost Tests 2020 Cost-Effectiveness Summary by Program, Sector, and Portfolio * Shade Tree Project tree distributions were suspended in 2020 due to COVID-19, no newly-planted trees in 2020 to report energy savings. ** Commercial/Industrial Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds. *** Irrigation Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds. Exhibit No. 2 Case No. IPC-E-21-04 P. Goralski, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-21-04 IDAHO POWER COMPANY GORALSKI, DI TESTIMONY EXHIBIT 3 2022 2021 2020 2019 2018 2017 2016 2015 1 2014 2013 2012 2011 2010 Educational Distributions I/P Energy Efficient Lighting I I P Energy House Calls I/P I P Heating & Cooling Efficiency Program I/P I/P P I P Home Energy Audit P I P Home Energy Reports I/O O P/O O O Multifamily Energy Savings Program I/P I/P Rebate Advantage I I/P I Residential Energy Efficiency Education Initiative O P Residential New Construction Pilot Program I/P Shade Tree Project O P Simple Steps, Smart Savings™ Weatherization Assistance for Qualified Customers O O P I Weatherization Solutions for Eligible Customers O O P I Commercial Energy-Saving Kits Custom Projects I/P I P I/P I P New Construction I/P I P I I P Retrofits I/P I P I P I P Small Business Direct-Install P Irrigation Efficiency Rewards I/P I/P P/O P/I P A/C Cool Credit O I O I O O O O O O P O Flex Peak Program O I O O O O O O P/O O Irrigation Peak Rewards O I O O O O O O O O O 1 Energy efficiency programs evaluated in 2015 have since been eliminated or combined into another program. Evaluation Type: I = Impact, P = Process, O = Other Program not yet in existence Residential Energy Efficiency Programs Commercial/Industrial Energy Efficiency Programs Demand-Response Programs Irrigation Energy Efficiency Programs Customer Relations and Energy Efficiency 2021-2022 Program Evaluation Plan Exhibit No. 3 Case No. IPC-E-21-04 P. Goralski, IPC Page 1 of 1