20220315DSM Supplement 1.pdf

MARCH 15 20222120S U P P L E M E N T 1
C O S T- E F F E C T I V E N E S S
D E M A N D - S I D E
M A N A G E M E N T
ANNUALREPORT
Printed on recycled paper
SAFE HARBOR STATEMENT
This document may contain forward-looking statements,
and it is important to note that the future results could
differ materially from those discussed. A full discussion
of the factors that could cause future results to differ
materially can be found in Idaho Power’s filings with the
Securities and Exchange Commission.
Demand-Side Management 2021 Annual Report Page i
Supplement 1: Cost-Effectiveness
Table of Contents
Supplement 1: Cost-Effectiveness ..............................................................................................................1
Cost-Effectiveness .................................................................................................................................1
Methodology ........................................................................................................................................2
Assumptions .........................................................................................................................................3
Conservation Adder ..............................................................................................................................5
Net-to-Gross .........................................................................................................................................6
Results ..................................................................................................................................................6
Cost-Effectiveness Tables by Program ......................................................................................................14
Educational Distributions ...................................................................................................................14
Energy House Calls .............................................................................................................................16
Heating & Cooling Efficiency Program ................................................................................................18
Home Energy Report ..........................................................................................................................21
Rebate Advantage ..............................................................................................................................22
Residential New Construction Program ..............................................................................................24
Shade Tree Project ..............................................................................................................................26
Weatherization Assistance for Qualified Customers ..........................................................................27
Weatherization Solutions for Eligible Customers ...............................................................................28
Commercial Energy-Saving Kits ..........................................................................................................29
Custom Projects..................................................................................................................................31
New Construction ...............................................................................................................................34
Retrofits .............................................................................................................................................40
Small Business Direct Install ...............................................................................................................49
Irrigation Efficiency Rewards ..............................................................................................................50
Page ii Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
List of Tables
Table 1. 2021 non-cost-effective measures ................................................................................................8
Table 2. 2021 DSM detailed expenses by program (dollars) .....................................................................10
Table 3. Cost-effectiveness of 2021 programs by benefit/cost test ..........................................................13
Demand-Side Management 2021 Annual Report Page 1
Supplement 1: Cost-Effectiveness
Supplement 1: Cost-Effectiveness
Cost-Effectiveness
Idaho Power considers cost-effectiveness of primary importance in the design, implementation, and
tracking of energy efficiency and demand response programs.
Prior to the actual implementation of energy efficiency or demand response programs, Idaho Power
performs a preliminary analysis to assess whether a potential program design or measure may be
cost-effective. 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 (NEEA) Regional Emerging Technology Advisory Committee (RETAC), the Consortium for Energy
Efficiency (CEE), American Council for an Energy-Efficient Economy (ACEEE), and Advanced Load Control
Alliance (ALCA) to identify 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 benefit/cost (B/C) ratios greater than one for the utility
cost test (UCT) in Idaho, and the total resource cost (TRC) test in Oregon, at the program and measure
level. In addition, Idaho Power looks at both the UCT and TRC, as well as the 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.
In 2020, Idaho Power transitioned to the UCT as the primary cost-effectiveness test in Idaho as directed
by the Idaho Public Utilities Commission (IPUC) in Order Nos. 34469 and 34503. The company will
continue calculating the TRC and PCT because each perspective can help inform the company and
stakeholders about the effectiveness of a particular program or measure. Additionally, programs and
measures offered in Oregon must still use the TRC as the primary cost-effectiveness test as directed by
the Public Utility Commission of Oregon (OPUC) in Order No. 94-590.
Idaho Power uses several 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 as
participation levels or the participants’ locations. For instance, heat pumps installed in the Boise
area will have lower savings than those installed in the McCall area because of climate differences. If
program participation and savings increase, fixed costs (such as labor and marketing) are distributed
more broadly, and the program’s cost-effectiveness increases.
When an existing program or measure is not cost-effective from either the UCT perspective in Idaho or
the TRC perspective in Oregon, Idaho Power works with the Energy Efficiency Advisory Group (EEAG)
to get additional input about next steps. The company must demonstrate why a non-cost-effective
measure or program was implemented, or continued to be offered, and communicate the steps the
company plans to take to improve its cost-effectiveness. This aligns with the expectations of the IPUC
and OPUC.
Page 2 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
In OPUC Order No. 94-590, issued in 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 offered in Oregon pass the TRC test. 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 its Oregon service area.
Non-cost-effective measures and programs may be offered by a utility if they meet one or more of the
following additional conditions specified by Section 13 of OPUC 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 demand-side management (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
For operational and administrative efficiency, Idaho Power endeavors to offer identical programs in
both its Oregon and Idaho jurisdictions; however, due to the different primary cost-effectiveness tests
in each state, measures may not be offered in both states.
Methodology
For its cost-effectiveness methodology, Idaho Power relies on the Electric Power Research Institute
(EPRI) End Use Technical Assessment Guide (TAG); the California Standard Practice Manual and its
subsequent addendum; the National Action Plan for Energy Efficiency’s (NAPEE) Understanding Cost
Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for
Policy-Makers.
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 2021 dollars. The result of the one-year perspective is shown in
Table 3 and the Cost-Effectiveness Tables by Program section in this supplement.
Demand-Side Management 2021 Annual Report Page 3
Supplement 1: 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 deployable demand-reduction capacity for
the company.
As approved in IPUC Order No. 32923 and OPUC Order No. 13-482, the settlement agreement
determined a specific methodology for valuing demand response and defined the annual value of
operating the three demand response programs for the maximum allowable 60 hours to be no more
than $16.7 million. This value has been updated with each Integrated Resource Plan (IRP) based
on changes to the assumed capital cost of the deferred resource and the financial assumptions.
This amount was reevaluated from information in the 2015, 2017, 2019 Second Amended, and 2021
IRPs to be $18.5, $19.8, $19.6, and $21.3 million respectively. In addition, for each IRP cycle the
company has reevaluated the effectiveness of its demand response resources in meeting system needs.
As a result of the analysis completed in preparation for the 2021 IRP, the company identified changes
necessary for the demand response programs to meet evolving system needs. These changes were
approved in IPUC No. 35336 (IPC-E-21-32) and OPUC ADV 1355, will supersede the terms of the 2013
settlement agreement, and include a different cost-effectiveness methodology that Idaho Power will
rely on going forward.
In 2021, the cost of operating the three demand response programs was $8.3 million. Idaho Power
estimates that if the three programs were dispatched for the full 60 hours, the total costs would have
been approximately $11.1 million and would have remained cost-effective under the settlement
agreement methodology
Assumptions
Idaho Power relies on third-party research 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 residential and irrigation measures within this
supplement, savings and costs were derived from either the Regional Technical Forum (RTF) or the
Idaho Power Energy Efficiency Potential Study conducted by Applied Energy Group (AEG).
The RTF regularly reviews, evaluates, and recommends eligible energy efficiency measures and provides
the estimated savings and costs associated with those measures. As the RTF updates these savings and
cost assumptions, Idaho Power applies them to current program offerings and assesses the need to
make any program changes. Idaho Power staff participates 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 2021 dollars. The costs are escalated by
14.9%, which is the percentage provided by the RTF in workbook RTFStandardInformationWorkbook_
v4_5.xlsx.
Idaho Power uses a technical reference manual (TRM) developed by ADM Associates, Inc. for the
savings and cost assumptions in the Commercial and Industrial (C&I) Energy Efficiency Program’s New
Construction and Retrofits options. In 2020, the company began the process to update the assumptions
Page 4 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
in the TRM based on the 2018 International Energy Conservation Code (IECC). The updated TRM will
be the source for most prescriptive savings values for the New Construction and Retrofits in the C&I
Energy Efficiency program and have been implemented as of mid-2021.
Idaho Power also relies on other sources for savings and cost assumptions, such as the Northwest
Power and Conservation Council (NWPCC), 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 a code changes, a 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 in the Demand-Side Management 2021 Annual Report. Generally, the 2021 energy
savings reported for most programs will use the assumptions set at the beginning of the year.
The remaining inputs used in the cost-effectiveness models are obtained from the IRP process. Idaho
Power’s 2019 Second Amended IRP was acknowledged by the IPUC under case IPC-E-19-19 on March
16, 2021 and with the OPUC under case LC 74 on June 4, 2021. Because the 2019 Second Amended IRP
was not acknowledged at the time of the 2021 DSM program planning, Idaho Power had shared with
EEAG its intent to use updated avoided costs based on the 2017 IRP for the 2021 program year.
Appendix C—Technical Appendix of Idaho Power’s 2017 IRP contains the financial assumptions, such
as discount rate, escalation rate and line losses, used in the cost-effectiveness analysis. DSM avoided
costs vary by season and time of day and are applied to an end-use load shape to obtain the value of a
particular measure or program. DSM avoided energy costs are based on both the projected fuel costs
of a peak-load serving resource 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 2017 IRP, the annual avoided capacity cost is $122 per kilowatt
(kW). Transmission and distribution (T&D) benefits are also included in the cost-effectiveness analyses.
In compliance with Order No. 33365, this value is escalated and added to the 2017 DSM avoided
energy costs and included in the cost-effectiveness analysis for 2021. Idaho Power plans to begin using
the financial assumptions from the 2019 Second Amended IRP for program year 2022 with the above
updates.
As recommended by the NAPEE’s Understanding Cost-Effectiveness of Energy Efficiency Programs¸
Idaho Power’s weighted average cost of capital (WACC) of 6.74% is used to discount future benefits
and costs to today’s dollars. Once the DSM avoided 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 test 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 participants. Because the participant benefit is based on the anticipated bill savings of the
Demand-Side Management 2021 Annual Report Page 5
Supplement 1: Cost-Effectiveness
customer, Idaho Power believes an alternate discount rate in place of the WACC is appropriate.
The participant bill savings are based on Idaho Power’s 2021 average customer segment rate, and are
not escalated. The participant bill savings are discounted using a real discount rate of 4.54%. The 4.54%
is based on the 2017 IRP’s WACC of 6.74% and an escalation rate of 2.1%. 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) ÷ (1 + Escalation)) – 1 = Real
Line-loss percentages are applied to the metered-site energy savings to find the energy savings at the
generation level. The Demand-Side Management 2021 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 system line-loss factor is 9.6% while the summer peak line-loss factor is 9.7%.
Conservation 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 nonconservation measure or resource unless the incremental system
cost of such conservation or resource is in excess of 110 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% conservation
adder in energy efficiency cost-effectiveness analyses. In OPUC Order No. 94-590, the OPUC states:
We support the staff’s 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-12-01, “Staff noted that Rocky Mountain
Power and Avista use a 10% conservation adder when calculating the cost-effectiveness of all their DSM
programs.” Staff recommended the utilities have the option to use a 10% adder, and the IPUC agreed
with the recommendation to allow utilities to use the 10% 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, Idaho Power applies the 10% conservation adder in all energy
efficiency measure and program cost-effectiveness analyses when calculating the TRC test.
Page 6 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Net-to-Gross
Net-to-gross (NTG), or net-of-free-ridership (NTFR), is defined by NAPEE’s Understanding
Cost-Effectiveness of Energy Efficiency Programs as a ratio that does the following:
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 100% for
nearly all measure and program cost-effectiveness analyses.
Sensitivity analyses are conducted to show what the minimum NTG percentage needs to be for a
program to remain (or become) cost-effective from either the TRC or UCT perspective. These NTG
percentages are shown in the program cost-effectiveness pages of this supplement.
Results
Idaho Power calculates cost-effectiveness on a program basis and, where relevant, a measure
basis. As part of Supplement 1: Cost-Effectiveness and where applicable, Idaho Power publishes the
cost-effectiveness by measure, the PCT and RIM test at the program level, the assumptions associated
with cost-effectiveness, and the 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, Home Energy Report Program, Multifamily Energy
Savings Program, Small Business Direct Install, Weatherization Assistance for Qualified Customers
(WAQC), and Weatherization Solutions for Eligible Customers programs. These programs have few or no
participant-related costs. For energy efficiency programs, the cost-effectiveness models do not assume
ongoing participant costs.
This supplement contains annual cost-effectiveness metrics for each program using actual information
from 2021 and includes results of the UCT, TRC, PCT, and RIM. Current 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 2021, most of Idaho Power’s energy efficiency programs were cost-effective from the UCT
perspective, except for Energy House Calls, Home Energy Report Program, Small Business Direct Install,
and the two weatherization programs for income-qualified customers.
Demand-Side Management 2021 Annual Report Page 7
Supplement 1: Cost-Effectiveness
Energy House Calls has UCT and TRC ratios of 0.43 and 0.50 respectively. The program’s cost-
effectiveness was impacted by the updated savings assumptions coupled with the suspension of
in-home visits due to COVID-19 from March 2020 through November 2021. Going forward, the
program faces additional cost-effectiveness challenges as the savings assumptions for duct sealing,
LED lightbulbs, showerheads, and faucet aerators have declined or have been deactivated by the RTF.
Because the program would have likely remained cost-effective in 2020 had in-home work not been
suspended, Idaho Power will continue to work through the homes that remain on the waitlist. Idaho
Power will continue to work with stakeholders, including EEAG, to determine the best course of action
in 2022.
The Home Energy Report Program has a UCT of 0.57 and TRC of 0.62. Due to the continuous nature
of the HER program with costs and savings extending numerous years for the same participants,
a program life-cycle cost-effectiveness is utilized to understand the cost-effectiveness of the offering.
The program life cost-effectiveness is calculated to have a UCT of 0.87 and TRC of 0.96. The main drivers
contributing to the lower cost-effectiveness ratios are the relatively short measure life of the reports
and realized savings coming in lower than initially expected. Idaho Power plans to evaluate the program
in 2022 and will continue to work with the vendor to improve the program’s overall cost-effectiveness.
Small Business Direct Install achieved a UCT of 0.99 and TRC of 1.54. The cost-effectiveness ratios
include the costs associated with the 2020 process evaluation which was completed in 2021. If the
evaluation costs are removed, the UCT and TRC ratios for the program are 1.00 and 1.55, respectively.
Idaho Power will continue to monitor the program’s cost-effectiveness as it expands the offering to the
Capital and Canyon-West regions of the service area in 2022.
WAQC had a TRC of 0.31 and a UCT ratio of 0.19, and Weatherization Solutions for Eligible Customers
had a TRC of 0.28 and a UCT ratio of 0.15. To calculate the cost-effectiveness for the income-qualified
weatherization programs, Idaho Power adopted the following IPUC staff recommendations from Case
No. GNR E-12-01:
• Applied a 100% NTG.
• Claimed 100% of energy savings for each project.
• Included indirect administrative overhead costs. The overhead costs of 3.381% were calculated
from the $1,296,605 of indirect program expenses divided by the total DSM expenses of
$38,353,505 as shown in Appendix 3 of the Demand-Side Management 2021 Annual Report.
• Applied the 10% 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.
While the WAQC and Weatherization Solutions for Eligible Customers remain not cost-effective,
unless the Idaho and Oregon commission directs otherwise, Idaho Power will continue to offer the
programs to the company’s limited-income customers on an ongoing basis. Idaho Power will also
Page 8 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
continue to consult with EEAG and the weatherization managers at the Community Action Partnerships
to look for ways to improve the cost-effectiveness of the programs.
The sector cost-effectiveness ratios include all the benefits and costs associated with programs that
produce quantifiable energy savings. The portfolio cost-effectiveness is the sum of all energy efficiency
activities, including those that do not have savings associated, such as overhead expenses. For
2021, the commercial and industrial sector had a UCT of 2.74 and TRC of 1.46, and irrigation sector
had a UCT of 3.33 and TRC of 4.49. The residential and portfolio cost-effectiveness was calculated
with and without the benefits associated with WAQC, which is funded through base rates and not
through the energy efficiency rider. While the program provides real savings to customers that would
otherwise be unable to afford to weatherize their home, it remains not cost-effective. Presenting
the cost-effectiveness of the residential sector with and without WAQC remains consistent with how
other Idaho utilities present their sector and portfolio cost-effectiveness results. Without WAQC, the
residential sector has a UCT of 1.02 and TRC of 0.74 and the portfolio has a UCT of 2.17 and TRC of
2.18. With WAQC, the residential sector has a UCT of 0.80 and TRC of 0.63 and the portfolio has a UCT
of 2.08 and TRC of 2.13.
One hundred two out of 272 individual measures in various programs are not cost-effective from either
the UCT or TRC perspective. Of the 102 measures, 24 are not cost-effective from the UCT perspective.
Eight of those measures are associated with the direct-install programs that had in-home activity
suspended due to COVID-19 restrictions.
These measures have B/C ratios below one due to some administration costs still being incurred to
maintain the program while in-home activity was suspended. For most of the measures offered in
Oregon that fail the TRC, Idaho Power filed 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 specified by Section 13
of Order No. 94-590. These exception requests were approved under UM-1710 or with the specific
program advice filings. The filings and exception requests are noted in Table 1.
Table 1. 2021 non-cost-effective measures
Program Number of Measures Number Fail UCT Notes
Energy House
Calls
8 8 Program impacted by the suspension of in-home activity due to COVID-19 restrictions.
Offering will be modified in 2022 due to cost-effectiveness. Exception requested for the program under UM 1710.
Heating & Cooling
Efficiency
10 5 Program to be modified in 2022 to incorporate updated savings assumptions, new
measures, and recommendations from the 2021 evaluation. Cost-effectiveness exception request for ductless heat pump 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 thermostats
requested and approved with OPUC Advice No. 17-09.
Demand-Side Management 2021 Annual Report Page 9
Supplement 1: Cost-Effectiveness
Program Number of Measures Number Fail UCT Notes
Rebate Advantage 10 0 All measures pass UCT. One measure would be cost-effective with a TRC 1.21 without the inclusion of administration costs. Meets OPUC Order No. 94-590, Section 10. Exception request for the program requested and approved with UM-1710, Order No.
21-079.
Custom Projects 4 3 One measure passes UCT and fail TRC. Would be cost-effective with a TRC of 1.01 without the inclusion of administration costs. Meets OPUC Order No. 94-590, Section 10. One Cohort offering fails UCT and TRC but would be cost-effective without
administration costs. One Cohort offering would be cost-effective from the program-
lifecycle perspective. One Cohort offering failed cost-effectiveness but participation
led to a large cost-effective capital project.
New Construction and Retrofits 2 1 One measure passes UCT and fails TRC. Offered in Idaho only. One measure fails UCT with ratio of 0.89. Measure only offered in Idaho and will be monitored in 2022.
New Construction 18 2 Sixteen measures pass UCT and fail TRC. Offered in Idaho only. Two measures fail UCT with ratios of 0.92 and 0.89. Measures offered in Idaho only and will be monitored in
2022.
Retrofits 44 1 Forty-three measures pass UCT and fail TRC. Of those, thirty-nine are offered in Idaho only. The three measures that are offered in Idaho and Oregon, the measures pass
the TRC without the inclusion of admin costs. Meets OPUC Order No. 94-590, Section
10. One Oregon only measure fails TRC. Measure is included to increase participation
in a cost-effective program. Meets OPUC Order No. 94-590 Section 13. Exception D. One Idaho only measure fails UCT with ratio of 0.91. Measure would be cost-effective without the inclusion of admin costs with a UCT of 1.15.
Irrigation
Efficiency Rewards
6 4 Several measures fail either the UCT, TRC, or both. Program to be modified in 2022
with updated savings assumptions. Measures expected to become cost-effective or removed from the program offering.
Total 102 24
The following tables list the annual program cost-effectiveness results including measure-level cost-
effectiveness. Exceptions to the measure-level tables are programs that are analyzed at the project level
such as: the Custom Projects option of the C&I Energy Efficiency Program, the Custom Incentive option
of Irrigation Efficiency Rewards, Small Business Direct Install, WAQC, and Weatherization Solutions for
Eligible Customers.
The measure-level cost-effectiveness includes the following inputs: measure life, energy savings,
incremental cost, incentives, program administration cost, and non-energy impacts/benefits.
Program administration costs include all non-incentive costs such as: labor, marketing, training,
education, purchased services, and evaluation. Energy and expense data have been rounded to the
nearest whole unit.
2021 DSM Detailed Expenses by Program
Included in this supplement is a detailed breakout of program expenses shown in Appendix 2 of the
Demand-Side Management 2021 Annual Report. These expenses are broken out by funding source
and major-expense type (labor/administration, materials, other expenses, purchased services,
and incentives).
Page 10 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Table 2. 2021 DSM detailed expenses by program (dollars)
Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program
Energy Efficiency Total $ 20,699,788 $ 1,017,538 $ 1,380,241 $ 23,097,567
Residential Total 2,849,542 71,773 1,335,554 4,256,869
Easy Savings: Low-Income Energy Efficiency Education ...––145,827 145,827
Labor/Administrative Expense.....................................–– 20,341 20,341
Materials and Equipment ............................................–– 125,000 125,000
Other Expense .............................................................–– 486 486
Educational Distributions ................................................. 433,963 15,826 – 449,790
Labor/Administrative Expense..................................... 18,730 992 – 19,722
Materials and Equipment ............................................ 367,089 12,370 – 379,459
Other Expense ............................................................. (5,295) (279)– (5,574)
Purchased Services ...................................................... 53,440 2,743 – 56,183
Energy Efficient Lighting ................................................... 41,438 2,194 – 43,631
Labor/Administrative Expense..................................... 17,688 944 – 18,631
Purchased Services ...................................................... 23,750 1,250 – 25,000
Energy House Calls ............................................................ 17,375 882 – 18,257
Labor/Administrative Expense..................................... 7,585 419 – 8,004
Other Expense ............................................................. 4,412 463 – 4,875
Purchased Services ...................................................... 5,378 –– 5,378
Heating & Cooling Efficiency Program .............................. 600,636 34,522 25 635,182
Incentives .................................................................... 333,092 20,825 – 353,917
Labor/Administrative Expense..................................... 133,905 7,048 – 140,953
Materials and Equipment ............................................ 110 6 – 116
Other Expense ............................................................. 59,164 3,384 25 62,573
Purchased Services ...................................................... 74,364 3,259 – 77,623
Home Energy Audit ........................................................... 70,448 –– 70,448
Labor/Administrative Expense..................................... 52,309 –– 52,309
Materials and Equipment ............................................ 1,706 –– 1,706
Other Expense ............................................................. 8,999 –– 8,999
Purchased Services ...................................................... 7,433 –– 7,433
Home Energy Report Program 970,197 –– 970,197
Incentives .................................................................... 935,315 –– 935,315
Labor/Administrative Expense..................................... 22,406 –– 22,406
Other Expense ............................................................. 12,475 –– 12,475
Multifamily Energy Savings Program ............................... 65,525 3,449 – 68,973
Labor/Administrative Expense..................................... 9,929 523 – 10,451
Materials and Equipment ............................................ 54,693 2,879 – 57,572
Other Expense ............................................................. 903 48 – 950
Oregon Residential Weatherization .................................– 4,595 – 4,595
Labor/Administrative Expense.....................................– 3,217 – 3,217
Other Expense .............................................................– 1,378 – 1,378
Rebate Advantage ............................................................. 164,243 8,950 – 173,193
Incentives .................................................................... 84,000 4,000 – 88,000
Labor/Administrative Expense..................................... 55,141 2,903 – 58,044
Materials and Equipment ............................................––– -
Other Expense .............................................................8,502 1,247 – 9,749
Purchased Services ...................................................... 16,600 800 – 17,400
Residential New Construction Program ........................... 246,245 1,356 – 247,600
Incentives .................................................................... 156,000 –– 156,000
Labor/Administrative Expense..................................... 71,985 –– 71,985
Demand-Side Management 2021 Annual Report Page 11
Supplement 1: Cost-Effectiveness
Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program
Materials and Equipment ............................................ 0 –– 0
Other Expense ............................................................. 18,260 1,356 – 19,615
Shade Tree Project ............................................................ 184,680 – –184,680
Labor/Administrative Expense..................................... 52,680 – –52,680
Purchased Services ...................................................... 132,000 – – 132,000
Weatherization Assistance for Qualified Customers ............. – – 1,186,839 1,186,839
Labor/Administrative Expense..................................... – – 69,352 69,352
Other Expense ............................................................. – – 53 53
Purchased Services ...................................................... – – 1,117,434 1,117,434
Weatherization Solutions for Eligible Customers............. 54,793 – 2,863 57,656
Labor/Administrative Expense..................................... (0) – 2,863 2,863
Other Expense ............................................................. 53 – – 53
Purchased Services ...................................................... 54,740 – – 54,740
Commercial/Industrial Total 15,499,626 724,242 9,630 16,233,498
Commercial Energy-Saving Kits ........................................ 71,501 3,117 – 74,617
Labor/Administrative Expense..................................... 11,315 606 – 11,921
Materials and Equipment ............................................ 46,767 2,511 – 49,278
Purchased Services ...................................................... 13,419 – 13,419
Custom Projects ................................................................ 7,966,164 633,110 9,630 8,608,903
Incentives .................................................................... 6,286,416 543,210 – 6,829,625
Labor/Administrative Expense..................................... 350,102 17,925 9,630 377,656
Materials and Equipment ............................................ 834 44 – 878
Other Expense ............................................................. 286,903 18,716 – 305,618
Purchased Services ...................................................... 1,041,910 53,216 – 1,095,126
New Construction ............................................................. 2,673,925 17,246 – 2,691,171
Incentives .................................................................... 2,302,217 2,903 – 2,305,120
Labor/Administrative Expense..................................... 178,197 9,459 – 187,656
Other Expense ............................................................. 5,027 265 – 5,292
Purchased Services ...................................................... 188,483 4,620 – 193,103
Retrofits ............................................................................ 3,735,093 91,657 – 3,826,750
Incentives .................................................................... 2,984,164 52,474 – 3,036,638
Labor/Administrative Expense..................................... 108,644 5,749 – 114,393
Materials and Equipment ............................................ 933 49 – 982
Other Expense ............................................................. 1,336 70 – 1,406
Purchased Services ...................................................... 640,016 33,314 – 673,331
Small Business Direct Install ............................................. 1,052,943 (20,887) – 1,032,056
Labor/Administrative Expense..................................... 19,541 1,061 – 20,602
Other Expense ............................................................. 11,521 606 – 12,127
Purchased Services ...................................................... 1,021,882 (22,555) – 999,327
Irrigation 2,350,620 221,523 35,057 2,607,200
Irrigation Efficiency Rewards ............................................ 2,350,620 221,523 35,057 2,607,200
Incentives .................................................................... 1,992,972 202,622 - 2,195,594
Labor/Administrative Expense..................................... 312,657 16,563 35,057 364,277
Materials and Equipment ............................................ 4,808 274 - 5,082
Other Expense ............................................................. 39,126 2,059 - 41,185
Purchased Services ...................................................... 1,057 5 - 1,061
Market Transformation Total 2,828,794 148,884 – 2,977,678
NEAA ................................................................................. 2,828,794 148,884 – 2,977,678
Purchased Services ...................................................... 2,828,794 148,884 – 2,977,678
Page 12 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program
Other Program and Activities Total $ 2,583,383 $ 130,997 $ (3)$ 2,714,377
Commercial/Industrial Energy Efficiency Overhead ............. 742,155 39,474 (3) 781,626
Labor/Administrative Expense..................................... 640,186 34,291 – 674,477
Other Expense ............................................................. 78,299 3,938 (3) 82,234
Purchased Services ...................................................... 23,670 1,246 – 24,916
Energy Efficiency Direct Program Overhead .................... 279,095 16,987 – 296,082
Labor/Administrative Expense..................................... 278,133 14,671 – 292,804
Other Expense ............................................................. 962 2,316 – 3,278
Oregon Commercial Audit ................................................... – 4,401 – 4,401
Labor/Administrative Expense..................................... – 1,021 – 1,021
Other Expense ............................................................. – 630 – 630
Purchased Services ...................................................... – 2,750 – 2,750
Residential Energy Efficiency Education Initiative ................ 470,432 12,635 – 483,067
Labor/Administrative Expense..................................... 69,498 3,664 – 73,163
Materials and Equipment ............................................ 190,694 3,413 – 194,107
Other Expense ............................................................. 121,074 3,923 – 124,997
Purchased Services ...................................................... 89,166 1,634 – 90,800
Residential Energy Efficiency Overhead ........................... 1,091,701 57,501 – 1,149,202
Labor/Administrative Expense..................................... 209,908 11,091 – 220,998
Other Expense ............................................................. 859,376 45,230 – 904,607
Purchased Services ...................................................... 22,417 1,180 – 23,597
Indirect Program Expenses Total $ 1,070,419 $ 56,143 $ 170,043 $ 1,296,605
Energy Efficiency Accounting and Analysis ...................... 1,043,916 54,802 170,043 1,268,761
Labor/Administrative Expense..................................... 388,154 20,472 158,494 567,120
Other Expense ............................................................. 28,241 1,486 11,548 41,275
Purchased Services ...................................................... 627,521 32,844 – 660,365
Energy Efficiency Advisory Group ..................................... 10,479 552 – 11,031
Labor/Administrative Expense..................................... 841 45 – 886
Other Expense ............................................................. 9,638 507 – 10,145
Special Accounting Entries ............................................... 16,024 789 – 16,814
Special Accounting Entry ............................................. 16,024 789 – 16,814
Demand Response Total $ 760,713 $ 367,528 $ 7,139,037 $ 8,267,278
Residential Total 420,376 25,366 306,247 751,989
A/C Cool Credit ................................................................. 420,376 25,366 306,247 751,989
Incentives ....................................................................– 3,652 306,247 309,899
Labor/Administrative Expense..................................... 78,126 4,136 – 82,262
Materials and Equipment ............................................ (44,370) (2,335)– (46,705)
Other Expense ............................................................. 27,625 1,454 – 29,079
Purchased Services ...................................................... 358,995 18,459 – 377,454
Commercial/Industrial Total 101,236 175,121 225,617 501,973
Flex Peak Program ............................................................ 101,236 175,121 225,617 501,973
Incentives ....................................................................– 169,756 225,617 395,372
Labor/Administrative Expense..................................... 85,053 4,514 – 89,566
Other Expense ............................................................. 16,183 852 – 17,035
Irrigation Total 239,101 167,041 6,607,173 7,013,315
Irrigation Peak Rewards ................................................... 239,101 167,041 6,607,173 7,013,315
Incentives ....................................................................– 154,482 6,601,114 6,755,596
Demand-Side Management 2021 Annual Report Page 13
Supplement 1: Cost-Effectiveness
Sector/Program Idaho Rider Oregon Rider Idaho Power Total Program
Labor/Administrative Expense..................................... 74,046 3,912 6,059 84,016
Materials and Equipment ............................................ 46,677 2,457 – 49,134
Other Expense ............................................................. 33,536 1,765 – 35,301
Purchased Services ...................................................... 84,842 4,425 – 89,267
Grand Total $ 27,943,096 $ 1,721,091 $ 8,689,318 $ 38,353,505
Note: Totals may not add up due to rounding.
Table 3. Cost-effectiveness of 2021 programs by benefit/cost test
Program/Sector UCT TRC RIM PCT
Educational Distributions ..................................................................... 2.39 3.10 0.44 N/A
Energy House Calls ............................................................................... 0.43 0.50 0.23 N/A
Heating & Cooling Efficiency Program .................................................. 1.14 0.36 0.38 0.84
Home Energy Report Program1 ............................................................ 0.57 0.62 0.24 N/A
Multifamily Energy Savings Program2 ................................................... N/A N/A N/A N/A
Rebate Advantage ................................................................................ 1.13 0.66 0.35 1.97
Residential New Construction Pilot Program ....................................... 1.64 0.99 0.43 2.13
Shade Tree Project ................................................................................ 1.07 1.21 0.48 N/A
Weatherization Assistance for Qualified Customers ............................ 0.19 0.31 0.14 N/A
Weatherization Solutions for Eligible Customers ................................. 0.15 0.28 0.12 N/A
Residential Energy Efficiency Sector3...................................................1.02 0.74 0.35 2.61
Commercial Energy-Saving Kits ............................................................ 1.64 2.00 0.55 N/A
Custom Projects ................................................................................... 2.98 1.32 0.91 1.35
New Construction ................................................................................. 2.98 2.70 0.67 3.72
Retrofits ................................................................................................ 2.53 1.27 0.64 1.70
Small Business Direct Install ................................................................. 0.99 1.54 0.46 N/A
Commercial/Industrial Energy Efficiency Sector4 ................................ 2.74 1.46 0.77 1.76
Irrigation Efficiency Rewards ................................................................ 3.32 4.49 0.88 4.58
Irrigation Energy Efficiency Sector5...................................................... 3.33 4.49 0.88 4.58
Energy Efficiency Portfolio6 ..................................................................2.17 2.18 0.70 2.73
1 Cost-effectiveness based on 2021 savings and expenses. Cost-effectiveness ratios also calculated for the program life-cycle. Program life-cycle UCT and TRC 0.87 and 0.96, respectively.
2 In-home work suspended for most of 2021 due to COVID-19. No savings reported for 2021.
3 Residential sector cost-effectiveness excludes WAQC benefits and costs. If included, the UCT, TRC, RIM, and PCT would be 0.80, 0.63, 0.32, and 2.41, respectively.
4 Commercial/Industrial Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds.
5 Irrigation Energy Efficiency Sector cost-effectiveness ratios include savings and participant costs from Green Motors Rewinds.
6 Portfolio cost-effectiveness excludes WAQC benefits and costs. If included, the CT, TRC, RIM, and PCT would be 2.08, 2.13, 0.69, and 2.72 respectively.
Page 14 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Cost-Effectiveness Tables by Program
Educational Distributions
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ....................................................$1,074,116 $449,790 2.39
TRC Test ..................................................1,396,376 449,790 3.10
RIM Test ..................................................1,074,116 2,464,139 0.44
PCT ........................................................ N/A N/A N/A
Cost Inputs Ref
Program Administration ....................................................................................$449,790
Program Incentives ............................................................................................–I
Total UC .............................................................................................................$449,790 P
Measure Equipment and Installation (Incremental Participant Cost) ...............$–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ..................................2,931,280
NPV Cumulative Energy (kWh) ......................................25,080,544 $ 1,074,116 S
10% Credit (Northwest Power Act) ................................107,412
Total Electric Savings ...........................................................$1,181,527 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ........................$ $2,014,350 B
Other Benefits
Non-Utility Rebates/Incentives........................................$–NUI
NEBs ................................................................................$214,848 NEB
Benefits and Costs Included in Each Test
UC Test .......................................................= S * NTG = P
TRC Test .....................................................= (A + NUI + NEB) * NTG = P
RIM Test .....................................................= S * NTG = P + (B * NTG)
PCT ............................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................42%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Notes: Energy savings as reported by the Franklin Energy for the 2020 to 2021 student kits. NEBs for giveaway bulbs, welcome kit bulbs, and energy-saving kits include PV of periodic lightbulb replacement costs. NEBs for student kit include the NPV of therm savings.
No participant costs.
Demand-Side Management 2021 Annual Report Page 15
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Student Energy Efficiency Kit
(SEEK) Program
2020-2021 kit offering. Kits include: high
efficiency showerhead, showertimer, 3 LEDs, FilterTone alarm, digital thermometer, LED nightlight.
No kit Kit IPC_Student Kits 9 174.08 $58.02 $9.15 –– $0.075 4.44 5.59 1
Welcome Kit (Lightbulb only kit)
2 - 250 to 1049 lumen General Purpose bulbs 2 - 1490 to 2600 lumen
General Purpose bulb 1 - LED night light
No kit Kit IPC_Welcome Kit 12 22.86 $9.68 $3.21 – – $0.389 1.09 1.56 2
Nightlight
Give away
LED night light baseline bulb Lamp IPC_Nightlight 10 12.00 $4.25 – – – $0.042 8.43 9.27 3
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act
d No participant costs.e Average program administration and overhead costs to achieve each kWh of savings for each initiative. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 Franklin Energy. 2020-2021. Idaho Power Energy Wise Program Summary Report. 2021. Savings calculated from kit surveys.
2 RTF. ResLighting_Bulbs_v8_2.xlsm. 2020.3 DNV GL. Idaho Power Educational Distributions Impact and Process Evaluation. 2020.
Year: 2021 Program: Educational Distributions Market Segment: Residential Program Type: Energy Efficiency
Page 16 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Energy House Calls
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ...........................................................$7,880 $ 18,257 0.43
TRC Test .........................................................9,085 18,257 0.50
RIM Test .........................................................7,880 34,060 0.23
PCT ................................................................ N/A N/A N/A
Cost Inputs Ref
Program Administration ....................................................................................$18,257
Program Incentives ............................................................................................–I
Total UC .............................................................................................................$18,257 P
Measure Equipment and Installation (Incremental Participant Cost) ...............$–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ..............................................14,985
NPV Cumulative Energy (kWh) ..................................................185,113 $7,880 S
10% Credit (Northwest Power Act) ............................................788
Total Electric Savings .......................................................................$8,668 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ....................................$ 15,803 B
Other Benefits
Non-Utility Rebates/Incentives..................................................$–NUI
NEBs ..........................................................................................$416 NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT .........................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................231%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Notes: NEBs include PV of periodic bulb replacement costs for direct-install LED bulbs. NEBs for faucet aerators include the NPV of water and waste water savings. No participant costs.
Demand-Side Management 2021 Annual Report Page 17
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof
TRC Ratiog
Source/Notes
PTCS Duct
Sealing
Manufactured Home Prescriptive
Duct Sealing - Electric FAF - Heating Zone 1
Pre-existing
duct leakage
Home Residential-
Manufactured Home Idaho -Heating-All
18 972.81 $507.86 ––– $1.218 0.43 0.47 1, 2
PTCS Duct
Sealing
Manufactured Home Prescriptive
Duct Sealing - Electric FAF - Heating Zone 2 or 3
Pre-existing
duct leakage
Home Residential-
Manufactured Home Idaho -Heating-All
18 1,248.19 $651.62 ––– $1.218 0.43 0.47 1, 2
PTCS Duct
Sealing
Manufactured Home Prescriptive
Duct Sealing - Heat Pump - Heating Zone 1
Pre-existing
duct leakage
Home Residential-
Manufactured Home Idaho -Heating-All
18 615.06 $321.09 ––– $1.218 0.43 0.47 1, 2
PTCS Duct Sealing Manufactured Home Prescriptive Duct Sealing - Heat Pump - Heating Zone 2 or 3
Pre-existing duct leakage Home Residential-Manufactured Home Idaho -Heating-All
18 875.72 $457.17 ––– $1.218 0.43 0.47 1, 2
General Purpose LED Direct Install
Direct install-LED_General Purpose, Dimmable, and Three-Way 250 to 1049 lumens (Average
High Use and Moderate Use)
baseline bulb Lamp Residential-All-Lighting-All 12 5.65 $2.39 $2.89 –– $1.218 0.35 0.80 2, 3
Low-flow faucet aerator Direct install. Kitchen. Manufactured Home. Electric Resistance Hot Water.
non- low flow faucet aerator
Aerator Residential-All-Water Heating-Water Heater 10 59.38 $21.43 $56.77 –– $1.218 0.30 1.11 2, 4
Low-flow faucet aerator Direct install. Bathroom. Manufactured Home. Electric
Resistance Hot Water.
non- low flow faucet
aerator
Aerator Residential-All-Water Heating-Water Heater 10 39.92 $14.41 $45.91 –– $1.218 0.30 1.27 2, 4
Water heater pipe covers Up to 6 feet.no existing coverage Pipe wrap Residential-All-Water Heating-Water Heater 10 74.81 $27.00 –– $1.218 0.30 0.33 2, 5
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 RTF. ResMH PerformanceDuctSeal_v3_0.xlsm. 2015.
2 Measure not cost-effective. Program and measures not cost-effective due to some administration costs incurred while the program was suspended due to COVID-19 restrictions. Offering will be modified in 2022.
3 RTF. ResLighting_Bulbs_v8_2.xlsm. 2020.4 RTF. Aerators_v1_1.xlsm. 2018.5 AEG. Potential Study. 2020.
Year: 2021 Program: Energy House Calls Market Segment: Residential Program Type: Energy Efficiency
Page 18 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Heating & Cooling Efficiency Program
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ...........................................................$725,884 $635,182 1.14
TRC Test .........................................................798,472 2,223,826 0.36
RIM Test .........................................................725,884 1,907,966 0.38
PCT ................................................................1,626,700 1,942,560 0.84
Cost Inputs Ref
Program Administration .....................................................................................$281,265
Program Incentives .............................................................................................353,917 I
Total UC ..............................................................................................................$635,182 P
Measure Equipment and Installation (Incremental Participant Cost) ................$1,942,560 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ........................................1,365,825
NPV Cumulative Energy (kWh) ............................................15,236,675 $725,884 S
10% Credit (Northwest Power Act) ......................................72,588
Total Electric Savings .................................................................$798,472 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ..............................$ 1,272,783 B
Other Benefits
Non-Utility Rebates/Incentives..............................................$–NUI
NEBs ......................................................................................$–NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT .........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................n/a
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Note: 2021 cost-effectiveness ratios include evaluation expenses. If evaluation expense were removed from the program’s cost-effectiveness, the UCT and TRC would be 1.19 and 0.36, respectively.
Demand-Side Management 2021 Annual Report Page 19
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Heat Pump
Conversion
Existing Single Family and
Manufactured Home HVAC Conversion to Heat Pump with Commissioning and Sizing (Heating & Cooling Zone Weighted Average)
Conversion to
high efficiency heat pump
Unit Residential-All-Heating-
Air-Source Heat Pump
15 4,279.98 $2,164.16 – $5,799.01 $800.00 $0.222 1.24 0.35 1, 2, 3, 4
Heat Pump Upgrade Existing Single Family and Manufactured Home HVAC Heat Pump Upgrade (Heating
& Cooling Zone Weighted Average)
Heat pump to heat pump upgrade
Unit Residential-All-Heating-Air-Source Heat Pump 15 587.09 $296.86 – $199.21 $250.00 $0.222 0.78 0.99 1, 2, 3, 5
Heat Pump
Upgrade
New Construction Single
Family and Manufactured Home HVAC Heat Pump
Upgrade (Heating & Cooling Zone Weighted Average)
Heat pump
to heat pump upgrade
Unit Residential-All-Heating-
Air-Source Heat Pump
15 584.06 $295.33 – $210.36 $250.00 $0.222 0.78 0.96 1, 2, 3, 5
Open-Loop Heat
Pump
Open loop water source heat
pump for existing construction - 14.00 EER 3.5 COP (Heating & Cooling Zone Weighted Average)
Electric
resistance/ Oil Propane
Unit Residential-All-Heating-
Air-Source Heat Pump
20 9,786.76 $6,083.99 – $18,063.09 $1,000.00 $0.222 1.92 0.33 4, 6
Open-Loop Heat Pump Open loop water source heat pump for new construction - 14.00 EER3.5 COP (Heating & Cooling
Zone Weighted Average)
Electric resistance/ Oil Propane
Unit Residential-All-Heating-Air-Source Heat Pump 20 8,353.94 $5,193.27 – $18,713.58 $1,000.00 $0.222 1.82 0.28 4, 6
Ductless Heat Pump Zonal to DHP. (Heating & Cooling Zone Weighted
Average)
Zonal Electric Unit Residential-All-Heating-Air-Source Heat Pump 15 1,384.29 $699.96 – $4,468.50 $750.00 $0.222 0.66 0.16 1, 4, 13
Heat Pump Water Heater Weighted average of tier 2 and tier 3, heating and cooling
zone, and indoor, basement, garage install location.
Electric water heater Unit Residential-All-Water Heating-Heat Pump
Water Heater
13 1,517.11 $678.67 – $875.54 $300.00 $0.222 1.07 0.62 4, 7
Evaporative Cooler Evaporative Cooler Central Air Conditioning Unit Residential-Single Family Idaho-Cooling-All 12 1,471.00 $1,172.25 – $253.58 $150.00 $0.222 2.46 2.22 8
Prescriptive Duct Sealing Duct Tightness - PTCS Duct Sealing - Average Heating System. Weighted average of Heating Zones 1-3.
Pre-existing duct leakage Unit Residential-Single Family Idaho -Heating-All 20 905.82 $518.14 – $725.69 $350.00 $0.222 0.94 0.61 4, 9, 14
Electronically Commutated Motor (ECM)
Blower Motor
ECM Blower Motor permanent split capacitor (PSC) motor
Unit IPC_ECM 18 2,855.13 $1,625.30 – $300.00 $50.00 $0.222 2.38 1.91 10
Whole-House Fan Whole-House Fan Displaced forced air dx
cooling
Unit Residential-Single Family Idaho-Cooling-All 18 445.60 $514.96 – $700.00 $200.00 $0.222 1.72 0.71 4, 10
Year: 2021 Program: Heating & Cooling Efficiency Program Market Segment: Residential Program Type: Energy Efficiency
Page 20 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Smart Thermostat Smart Thermostat non wi-fi enabled thermostat/no thermostat
Unit Residential-Single Family Idaho -Heating-All 5 576.43 $92.24 – $138.64 $75.00 $0.222 0.45 0.38 11, 12
a Average measure life.
b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.d Incremental participant cost prior to customer incentives.e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.
f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1RTF. ResSF&MHExistingHVAC_v5_1.xlsx. Weighted average of 2021 participants in heating and cooling zones 1-3.2 RTF. ResHeatingCoolingCommissioningControlsSizingSF_v3_6.xlsm. Weighted average of 2021 participants in heating and cooling zones 1-3.3 RTF. ResMHHeatingCoolingCommissioningControlsSizing_v3_4.xlsx. Weighted average of 2021 participants in heating and cooling zones 1-3.
4 Measure not cost-effective from TRC perspective.
5 Measure UTC and TRC cost-effective without inclusion of admin costs.
6 RTF. ResGSHP_v2_7. 2016. Weighted average of 2021 participants in heating and cooling zones 1-3.7 ResHPWH_v5_3.xlsm. 2021. Measure cost-effective without inclusion of admin costs..8 New Mexico Technical Resource Manual for the Calculation of Energy Efficiency Savings. Evaporative Cooling. Santa Fe. 2019.
9 RTF. ResSFDuctSealing_v5_1.xlsm. 2019.
10 Idaho Power engineering calculations based on Integrated Design Lab inputs. 2015.
11 RTF. ResConnectedTstats_v1.3.xlsm. 201812 Measure not cost-effective. Measure is being piloted and will be monitored in 2022.13 Measure not cost-effective from UCT and TRC. Will be monitored in 2022.
14 Measure UCT cost-effective without inclusion of admin costs.
Demand-Side Management 2021 Annual Report Page 21
Supplement 1: Cost-Effectiveness
Home Energy Report
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results Program Year 2021
Test Benefit Cost Ratio
UC Test ...........................................................$550,396 $970,197 0.57
TRC Test .........................................................605,436 970,197 0.62
RIM Test .........................................................550,396 2,326,144 0.24
PCT ................................................................ N/A N/A N/A
Program Year 2021 Cost Inputs Ref
Program Administration .....................................................................................$ $970,197
Program Incentives .............................................................................................–I2021
Total UC ..............................................................................................................$ $970,197 P2021
Measure Equipment and Installation (Incremental Participant Cost) ................$–M2021
Net Benefit Inputs (2020–2026)Ref
Resource Savings
NPV Cumulative Energy (kWh) 2020–2026 .......................79,941,382 $2,966,644 Sall
10% Credit (Northwest Power Act) ......................................296,664
Total Electric Savings .................................................................$3,263,308 Aall
Participant Bill Savings
NPV Cumulative Participant Bill Savings ..............................$6,207,155 Ball
Other Benefits
Non-Utility Rebates/Incentives..............................................$–NUIall
NEBs ......................................................................................$–NEBall
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT ......................................................... N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity (2021).....................................................................................176%
Minimum NTG Sensitivity (2020–2026)...........................................................................114%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Note: 2021 savings as reported by Aclara is 16,666,871 kWh. Idaho Power discounting savings by 5% for reporting and analysis as recommended by evaluators to account for potential double-counting of savings. Percentage will be reviewed in future evaluations
Program Life Cost Inputs (2020–2026)Ref
NPV Program Administration .............................................................................$3,395,048
NPV Program Incentives .....................................................................................–Iall
NPV Total UC ......................................................................................................$3,395,048 Pall
Measure Equipment and Installation (Incremental Participant Cost) ................$–Mall
Program Year 2021 Benefit Inputs Ref
Resource Savings
2021 Annual Gross Energy (kWh) ........................................15,929,074 $ 550,396 S2021
10% Credit (Northwest Power Act) ......................................55,040
Total Electric Savings .................................................................$605,436 A2021
Participant Bill Savings
NPV Cumulative Participant Bill Savings ..............................$1,355,947 B2021
Other Benefits
Non-Utility Rebates/Incentives..............................................$–NUI2021
NEBs ......................................................................................$–NEB2021
Summary of Cost-Effectiveness Results Program Life (2020–2026)
Test Benefit Cost Ratio
UC Test ...........................................................$2,966,644 $3,395,048 0.87
TRC Test .........................................................3,263,308 3,395,048 0.96
RIM Test .........................................................2,966,644 9,602,203 0.31
PCT ................................................................ N/A N/A N/A
Page 22 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Rebate Advantage
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ............................................................$196,114 $ 173,193 1.13
TRC Test ..........................................................215,726 327,190 0.66
RIM Test ..........................................................196,114 562,355 0.35
PCT .................................................................477,162 241,996 1.97
Cost Inputs Ref
Program Administration .....................................................................................$85,193
Program Incentives .............................................................................................88,000 I
Total UC ..............................................................................................................$173,193 P
Measure Equipment and Installation (Incremental Participant Cost) ................$241,996 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ..............................................235,004
NPV Cumulative Energy (kWh) ..................................................3,981,837 $196,114 S
10% Credit (Northwest Power Act) ............................................19,611
Total Electric Savings .......................................................................$215,726 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ....................................$389,162 B
Other Benefits
Non-Utility Rebates/Incentives..................................................$–NUI
NEBs ..........................................................................................$–NEB
Benefits and Costs Included in Each Test
UC Test ......................................................= S * NTG = P
TRC Test ....................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ....................................................= S * NTG = P + (B * NTG)
PCT ...........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................276%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Demand-Side Management 2021 Annual Report Page 23
Supplement 1: Cost-Effectiveness
Year: 2021 Program: Rebate Advantage Market Segment: Residential Program Type: Energy Efficiency
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof
TRC Ratiog
Source/Notes
ENERGY STAR®
manufactured home
Estar_electric_Heating Zone (HZ) 1_Cooling Zone
(CZ) 3
Manufactured home built to Housing and Urban Development
(HUD) code.
Home Residential-Manufactured Home Idaho -Heating-All
45 2,070.80 $1,728.11 – $2,888.68 $1,000.00 $0.288 1.08 0.55 1,2
ENERGY STAR manufactured
home
Estar_electric_HZ2_CZ1 Manufactured home built to HUD code.Home Residential-Manufactured Home
Idaho -Heating-All
45 3,020.26 $2,520.45 – $2,888.68 $1,000.00 $0.288 1.35 0.74 1,2
ENERGY STAR manufactured home
Estar_electric_HZ2_CZ2 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
45 3,022.11 $2,522.00 – $2,888.68 $1,000.00 $0.288 1.35 0.74 1,2
ENERGY STAR manufactured home
Estar_electric_HZ2_CZ3 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
45 3,024.85 $2,524.28 – $2,888.68 $1,000.00 $0.288 1.35 0.74 1,2
ENERGY STAR manufactured home
Estar_electric_HZ3_CZ1 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
45 3,819.13 $3,187.12 – $2,888.68 $1,000.00 $0.288 1.52 0.88 1,2,3
Northwest
Energy Efficient Manufactured (NEEM) home
NEEM_electric_
HZ1_CZ3
Manufactured home
built to HUD code.
Home Residential-
Manufactured Home Idaho -Heating-All
43 2,612.39 $2,147.58 – $4,723.31 $1,000.00 $0.288 1.23 0.43 1,2
NEEM home NEEM_electric_HZ2_CZ1 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
43 3,733.25 $3,069.01 – $4,723.31 $1,000.00 $0.288 1.48 0.58 1,2
NEEM home NEEM_electric_HZ2_CZ2 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
43 3,735.67 $3,071.00 – $4,723.31 $1,000.00 $0.288 1.48 0.58 1,2
NEEM home NEEM_electric_HZ2_CZ3 Manufactured home built to HUD code.Home Residential-Manufactured Home Idaho -Heating-All
43 3,739.15 $3,073.87 – $4,723.31 $1,000.00 $0.288 1.48 0.58 1,2
NEEM home NEEM_electric_HZ3_CZ1 Manufactured home built to HUD code.Home Residential-Manufactured Home
Idaho -Heating-All
44 4,679.39 $3,876.58 – $4,723.31 $1,000.00 $0.288 1.65 0.70 1,2
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses. c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
d Incremental participant cost prior to customer incentives.
e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 RTF. NewMHNewHomesandHVAC_v4_2.xlsm. 2021.
2 Measure not cost-effective from TRC perspective.
3 Measure cost-effective without inclusion of admin costs.
Page 24 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Residential New Construction Program
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test .........................................................$406,537 $247,600 1.64
TRC Test .......................................................517,702 524,876 0.99
RIM Test .......................................................406,537 944,427 0.43
PCT ..............................................................923,337 433,276 2.13
Cost Inputs Ref
Program Administration ....................................................................................$91,600
Program Incentives ............................................................................................156,000 I
Total UC .............................................................................................................$247,600 P
Measure Equipment and Installation (Incremental Participant Cost) ...............$433,276 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) .........................................389,748
NPV Cumulative Energy (kWh) .............................................6,844,616 $406,537 S
10% Credit (Northwest Power Act) .......................................40,654
Total Electric Savings ..................................................................$447,191 A
Participant Bill Savings
NPV Cumulative Participant Savings .....................................$696,826 B
Other Benefits
Non-Utility Rebates/Incentives.............................................$–NUI
NEBs .....................................................................................$70,511 NEB
Benefits and Costs Included in Each Test
UC Test .....................................................= S * NTG = P
TRC Test ...................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ...................................................= S * NTG = P + (B * NTG)
PCT ..........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................61%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Notes: 2018 International Energy Conservation Code (IECC) with amendments adopted in Idaho in 2021.
Demand-Side Management 2021 Annual Report Page 25
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual
Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog Source/Notes
Next Step Home Next Step Home - average per home savings.Home built to International Energy Conservation Code
2018 Code. Adopted 2021.
Home Residential-All-Heating-Air-Source Heat
Pump
61 4,330.53 $4,517.07 $783.46 $4,814.17 $1,733.33 $0.235 1.64 0.99 1
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
d Incremental participant cost prior to customer incentives.e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 NEEA circuit rider code enforcement initiative. 2021 average per home savings. Costs and NEBs from RTF. RESNCMTHouse_ID_v3_1_.xlsm. 2019.
Year: 2021 Program: Residential New Construction Program Market Segment: Residential Program Type: Energy Efficiency
Page 26 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Shade Tree Project
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ............................................................$197,139 $ 184,680 1.07
TRC Test ..........................................................223,316 184,680 1.21
RIM Test ..........................................................197,139 409,312 0.48
PCT .................................................................N/A N/A N/A
Cost Inputs Ref
Program Administration .....................................................................................$184,680
Program Incentives .............................................................................................–I
Total UC ..............................................................................................................$184,680 P
Measure Equipment and Installation (Incremental Participant Cost) ................$–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) from 2013–2017 plantings ...44,173
Cumulative Energy (kWh) from 2021 plantings .........................4,553,126
NPV Cumulative Energy (kWh) ..................................................1,129,418 $158,983 S
10% Credit (Northwest Power Act) ............................................15,898
Total Electric Savings .......................................................................$174,881 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ....................................$181,155 B
Other Benefits
Non-Energy Impacts (Therms) ...................................................$(24,516)NEI
NEBs ..........................................................................................$36,863 NEB
Benefits and Costs Included in Each Test
UC Test .....................................................= S * NTG = P
TRC Test ...................................................= ((A + NEI) * NTG)+NEB = P
RIM Test ...................................................= S * NTG = P + (B * NTG)
PCT ..........................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................124%
Minimum NTG Sensitivity ................................................................................................116%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Note: Annual report shows incremental savings from the 2013 - 2017 planting years. Cost-effectiveness based on the trees distributed in 2021 to coincide with the 2021 financials. Net-to-gross factor of 124% applied to energy savings and therm impacts to account for trees shading neighboring homes per evaluator’s recommendation. Trees distributed in 2021 via the mail are approximately 1 year younger than trees distributed at in person events. Expected savings impact shifted out one year to account for the smaller trees. NEIs include costs associated with increased home heating energy. Other NEBs associated with air quality, stormwater runoff, and carbon dioxide.
Demand-Side Management 2021 Annual Report Page 27
Supplement 1: Cost-Effectiveness
Weatherization Assistance for Qualified Customers
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ............................................................$210,273 $1,101,252 0.19
TRC Test ..........................................................492,102 1,604,565 0.31
RIM Test ..........................................................210,273 1,511,806 0.14
PCT .................................................................N/A N/A N/A
Cost Inputs Ref
Program Administration .....................................................................................$159,934
Community Action Partnership (CAP) Agency Payments ...................................905,302
Total UC ..............................................................................................................$1,065,236 P
Accruals/Reversal of Carryover Dollars ..............................................................121,603
Total Program Expenses .....................................................................................1,186,839
Idaho Power Indirect Overhead Expense Allocation—3.381% ...........................$36,016 OH
Additional State Funding ....................................................................................503,313 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) .........................................291,105
NPV Cumulative Energy (kWh) .............................................4,472,044 $210,273 S
10% Credit (Northwest Power Act) .......................................21,027
Total Electric Savings ..................................................................$231,301 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ...............................$410,555 B
Other Benefits
Non-Utility Rebates/Incentives............................................$–NUI
NEBs ....................................................................................
Health and Safety ..........................................................$245,255
Repair ............................................................................11,113
Other .............................................................................4,433
NEBs Total .............................................................................$260,801 NEB
Benefits and Costs Included in Each Test
UC Test .................................................= S * NTG = P + OH
TRC Test ...............................................= (A + NUI + NEB) * NTG = P + OH + M
RIM Test ...............................................= S * NTG = P + OH + (B * NTG)
PCT .......................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................522%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Notes: Savings based on a billing analysis of the 2016-2018 weatherization projects.
Program cost-effectiveness incorporated IPUC staff recommendations from case GNR-E-12-01. Recommendations include: Claimed 100% of savings; increased NTG to 100%; added a 10% conservation preference adder; health, safety, and repair NEBs; and allocation of indirect overhead expenses. No customer participant costs. Costs shown are from the DOE state weatherization assistance program.
Page 28 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Weatherization Solutions for Eligible Customers
Segment: Residential2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ............................................................$9,095 $59,605 0.15
TRC Test ..........................................................16,670 59,605 0.28
RIM Test ..........................................................9,095 77,363 0.12
PCT .................................................................N/A N/A N/A
Cost Inputs Ref
Program Administration .....................................................................................$7,892
Weatherization LLC Payments ............................................................................49,764
Total Program Expenses/Total UC .....................................................................$57,656 P
Idaho Power Indirect Overhead Expense Allocation—3.381% ...........................$1,949 OH
Additional State Funding ....................................................................................–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ..............................................12,591
NPV Cumulative Energy (kWh) ..................................................193,427 $9,095 S
10% Credit (Northwest Power Act) ............................................909
Total Electric Savings .......................................................................$10,004 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ....................................$17,757 B
Other Benefits
Non-Utility Rebates/Incentives..................................................$–NUI
NEBs ..........................................................................................
Health and Safety ................................................................3,772
Repair ..................................................................................–
Other ...................................................................................2,894
NEBs Total ..................................................................................$6,666 NEB
Benefits and Costs Included in Each Test
UC Test .................................................= S * NTG = P +OH
TRC Test ...............................................= (A + NUI + NEB) * NTG = P + OH + M
RIM Test ...............................................= S * NTG = P + OH + (B * NTG)
PCT .....................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................676%
Average Customer Segment Rate/kWh ...........................................................................$0.085
Line Losses .......................................................................................................................9.60%
Notes: Savings based on a billing analysis of the 2016–2018 weatherization projects. Program cost-effectiveness incorporated IPUC staff recommendations from case GNR-E-12-01. Recommendations include: Claimed 100% of savings; increased NTG to 100%; added a 10% conservation preference adder; health, safety, and repair NEBs; and allocation of indirect overhead expenses. No customer participant costs.
Demand-Side Management 2021 Annual Report Page 29
Supplement 1: Cost-Effectiveness
Commercial Energy-Saving Kits
Segment: Commercial2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ........................................................$122,634 $74,617 1.64
TRC Test ......................................................149,557 74,617 2.00
RIM Test ......................................................122,634 221,878 0.55
PCT .............................................................N/A N/A N/A
Cost Inputs Ref
Program Administration ....................................................................................$74,617
Program Incentives ............................................................................................–I
Total UC .............................................................................................................$74,617 P
Measure Equipment and Installation (Incremental Participant Cost) ...............$–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ....................................296,751
NPV Cumulative Energy (kWh) ........................................2,714,110 $122,634 S
10% Credit (Northwest Power Act) ..................................12,263
Total Electric Savings .............................................................$134,897 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ..........................$ 147,260 B
Other Benefits
Non-Utility Rebates/Incentives........................................$–NUI
NEBs ................................................................................$ 14,660 NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT ..........................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................61%
Average Customer Segment Rate/kWh ...........................................................................$0.057
Line Losses .......................................................................................................................9.60%
Notes: NEBs include PV of periodic bulb replacement costs for direct-install LED bulbs and water, waste water, and therm savings from water-saving devices.
Page 30 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Restaurant Commercial Kit
3-9W LEDs, 2-bathroom aerators, 2-kitchen aerators, 2-exit sign retrofit, 1-pre-
rinse spray valve.
no kit kit IPC_Commercial Kit Restaurant 10 793.11 $300.59 $48.91 – – $0.251 1.51 1.90 1
Retail Commercial
Kit
2-9W LEDs, 2-8W LED BR30s, 1-bathroom aerator, 2-exit
sign retrofit
no kit kit IPC_Commercial Kit Retail 11 214.51 $89.49 $9.68 – – $0.251 1.66 2.00 1
Office Commercial
Kit
2-9W LEDs, 2-bathroom aerators, 1-kitchen
aerator, 2-exit sign retrofit, 1-advance power strip
no kit kit IPC_Commercial Kit Office 12 177.14 $78.04 $16.85 – – $0.251 1.75 2.31 1
a Average measure life.
b Estimated kWh savings measured at the customer’s meter, excluding line losses. c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
d Incremental participant cost prior to customer incentives.
e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.
f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 IPC analysis based on average hours of use by building type and varying electric water heat saturations. Hours of use from TRM. Electric water heat saturation from 2020 participant surveys.
Year: 2021 Program: Commercial Energy-Saving Kits Market Segment: Commercial Program Type: Energy Efficiency
Demand-Side Management 2021 Annual Report Page 31
Supplement 1: Cost-Effectiveness
Custom Projects
Segment: Industrial2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ........................................................$25,613,396 $8,608,903 2.98
TRC Test ......................................................29,841,047 22,550,062 1.32
RIM Test ......................................................25,613,396 28,098,337 0.91
PCT .............................................................27,985,370 20,770,784 1.35
Cost Inputs Ref
Program Administration ....................................................................................$1,779,278
Program Incentives ............................................................................................6,829,625 I
Total UC .............................................................................................................$8,608,903 P
Measure Equipment and Installation (Incremental Participant Cost) ...............$20,770,784 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ....................................53,728,267
NPV Cumulative Energy (kWh) ........................................548,905,116 $25,613,396 S
10% Credit (Northwest Power Act) ..................................2,561,340
Total Electric Savings .............................................................$28,174,736 A
Participant Bill Savings
NPV Cumulative Participant Savings ................................$19,489,434 B
Other Benefits
Non-Utility Rebates/Incentives........................................$–NUI
NEBs ................................................................................$1,666,311 NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT ..........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................54%
Average Customer Segment Rate/kWh ...........................................................................$0.037
Line Losses .......................................................................................................................9.60%
Notes: Energy savings are unique by project and are reviewed by Idaho Power engineering staff or third-party consultants. Each project must complete a certification inspection. Green Rewind initiative is available to agricultural, commercial, and industrial customers. Commercial and industrial motor rewinds are paid under Custom Projects, but the savings are not included in the program cost-effectiveness. Green Rewind savings are included in the sector cost-effectiveness. NEB/impacts on a $/kWh for each end-use. Based on 2019 impact evaluation of other C&I programs.
2021 cost-effectiveness ratios include evaluation expenses. If evaluation expense were removed from the program’s cost-effectiveness, the UCT and TRC would be 2.99 and 1.33, respectively.
Page 32 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Green Motors Program Rewind:
Motor size 15 HP
Green Motors Program Rewind:
Motor size 15 HP
Standard rewind practice Motor MF_Motors 7 525.20 $132.07 $– $143.71 $15.00 $0.031 4.22 0.91 1, 5
Green Motors Program Rewind:
Motor size 20 HP
Green Motors Program Rewind:
Motor size 20 HP
Standard rewind practice Motor MF_Motors 7 702.77 $176.73 $– $160.33 $20.00 $0.031 4.23 1.07 1
Green Motors Program Rewind:
Motor size 25 HP
Green Motors Program Rewind:
Motor size 25 HP
Standard rewind practice Motor MF_Motors 8 893.48 $263.00 $– $183.19 $25.00 $0.031 4.99 1.37 1
Green Motors Program Rewind: Motor size 30 HP
Green Motors Program Rewind: Motor size 30 HP
Standard rewind practice Motor MF_Motors 8 962.42 $283.29 $– $201.19 $30.00 $0.031 4.73 1.35 1
Green Motors Program Rewind: Motor size 40 HP
Green Motors Program Rewind: Motor size 40 HP
Standard rewind practice Motor MF_Motors 8 1,120.77 $329.90 $– $245.86 $40.00 $0.031 4.41 1.29 1
Green Motors Program Rewind: Motor size 50 HP
Green Motors Program Rewind: Motor size 50 HP
Standard rewind practice Motor MF_Motors 8 1,206.18 $355.05 $– $272.18 $50.00 $0.031 4.06 1.26 1
Green Motors
Program Rewind: Motor size 60 HP
Green Motors
Program Rewind: Motor size 60 HP
Standard rewind
practice
Motor MF_Motors 8 1,268.50 $373.39 $– $321.01 $60.00 $0.031 3.76 1.14 1
Green Motors
Program Rewind: Motor size 75 HP
Green Motors
Program Rewind: Motor size 75 HP
Standard rewind
practice
Motor MF_Motors 8 1,305.49 $384.28 $– $346.98 $75.00 $0.031 3.33 1.09 1
Green Motors
Program Rewind: Motor size 100 HP
Green Motors
Program Rewind: Motor size 100 HP
Standard rewind
practice
Motor MF_Motors 8 1,723.08 $507.20 $– $430.43 $100.00 $0.031 3.31 1.15 1
Green Motors
Program Rewind: Motor size 125 HP
Green Motors
Program Rewind: Motor size 125 HP
Standard rewind
practice
Motor MF_Motors 8 1,990.39 $585.88 $– $429.04 $125.00 $0.031 3.14 1.31 1
Green Motors
Program Rewind: Motor size 150 HP
Green Motors
Program Rewind: Motor size 150 HP
Standard rewind
practice
Motor MF_Motors 8 2,366.02 $696.45 $– $477.90 $150.00 $0.031 3.12 1.39 1
Green Motors Program Rewind: Motor size 200 HP
Green Motors Program Rewind: Motor size 200 HP
Standard rewind practice Motor MF_Motors 8 3,138.34 $923.79 $– $575.33 $200.00 $0.031 3.11 1.51 1
Green Motors Program Rewind: Motor size 250 HP
Green Motors Program Rewind: Motor size 250 HP
Standard rewind practice Motor MF_Motors 8 3,798.53 $1,118.12 $– $739.44 $250.00 $0.031 3.04 1.43 1
Green Motors Program Rewind: Motor size 300 HP
Green Motors Program Rewind: Motor size 300 HP
Standard rewind practice Motor MF_Motors 8 4,534.67 $1,334.80 $– $747.42 $300.00 $0.031 3.03 1.65 1
Green Motors Program Rewind: Motor size 350 HP
Green Motors Program Rewind: Motor size 350 HP
Standard rewind practice Motor MF_Motors 8 5,286.56 $1,556.13 $– $783.39 $350.00 $0.031 3.03 1.81 1
Year: 2021 Program: Custom Projects Market Segment: Industrial Program Type: Energy Efficiency
Demand-Side Management 2021 Annual Report Page 33
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog Source/Notes
Green Motors Program Rewind: Motor size 400 HP
Green Motors Program Rewind: Motor size 400 HP
Standard rewind practice Motor MF_Motors 8 5,994.15 $1,764.41 $– $874.97 $400.00 $0.031 3.01 1.83 1
Green Motors Program Rewind: Motor size 450 HP
Green Motors Program Rewind: Motor size 450 HP
Standard rewind practice Motor MF_Motors 8 6,732.12 $1,981.63 $– $956.42 $450.00 $0.031 3.01 1.87 1
Green Motors
Program Rewind: Motor size 500 HP
Green Motors
Program Rewind: Motor size 500 HP
Standard rewind
practice
Motor MF_Motors 8 7,490.56 $2,204.88 $– $1,033.25 $500.00 $0.031 3.01 1.92 1
Green Motors
Program Rewind: Motor size 600 HP
Green Motors
Program Rewind: Motor size 600 HP
Standard rewind
practice
Motor MF_Motors 8 10,137.37 $2,983.99 $– $1,554.95 $600.00 $0.031 3.26 1.76 1
Green Motors
Program Rewind: Motor size 700 HP
Green Motors
Program Rewind: Motor size 700 HP
Standard rewind
practice
Motor MF_Motors 8 11,776.73 $3,466.54 $– $1,696.44 $700.00 $0.031 3.25 1.85 1
Green Motors
Program Rewind: Motor size 800 HP
Green Motors
Program Rewind: Motor size 800 HP
Standard rewind
practice
Motor MF_Motors 8 13,430.58 $3,953.36 $– $1,882.26 $800.00 $0.031 3.25 1.89 1
Green Motors
Program Rewind: Motor size 900 HP
Green Motors
Program Rewind: Motor size 900 HP
Standard rewind
practice
Motor MF_Motors 8 15,077.39 $4,438.11 $– $2,075.09 $900.00 $0.031 3.25 1.92 1
Green Motors Program Rewind: Motor size 1,000 HP
Green Motors Program Rewind: Motor size 1,000 HP
Standard rewind practice Motor MF_Motors 8 16,681.86 $4,910.39 $– $2,236.32 $1,000.00 $0.031 2.23 1.57 1
School Cohort 2020-2021 cohort workshop training no change participant Commercial-School-Miscellaneous-All
1 4,556,394.00 $155,790.20 $– $155,470.89 $90,916.29 $0.031 0.67 0.58 2, 3
Wastewater Energy Efficiency Cohort cohort workshop training no change participant Industrial-Water & Wastewater-All-All
1 965.00 $33.70 $– $960.00 $174.00 $0.031 0.17 0.04 2, 4
Eastern Idaho Water Cohort cohort workshop training no change participant Industrial-Water & Wastewater-All-All
1 674,892.00 $23,571.12 $– $3,416.56 $2,392.00 $0.031 1.01 1.07 2
Municipal Water Supply Optimization Cohort
cohort workshop training no change participant Industrial-Water & Wastewater-All-All
1 963,080.00 $33,636.31 $– $26,591.57 $18,448.00 $0.031 0.70 0.66 2, 3, 5
a Average measure life.
b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.d Incremental participant cost prior to customer incentives.e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.
f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 RTF. Ind_and_Ag_GreenMotorRewind_v3_1.xlsm. 2017.2 2021 average savings per cohort participant.3 Offering cost-effective when viewed from a lifecycle perspective.
4 Offering cost-effectiveness based on one facility that was re-baselined. Participation in the cohort lead to capital projects that totaled 591,296 kWh/yr.
5 Offering cost-effective without inclusion of admin costs.
Page 34 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
New Construction
Segment: Commercial2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test .......................................................$8,013,533 $2,691,171 2.98
TRC Test .....................................................11,251,564 4,160,999 2.70
RIM Test .....................................................8,013,533 11,993,267 0.67
PCT ............................................................14,043,894 3,774,949 3.72
Cost Inputs Ref
Program Administration .....................................................................................$386,051
Program Incentives .............................................................................................2,305,120 I
Total UC ..............................................................................................................$2,691,171 P
Measure Equipment and Installation (Incremental Participant Cost) ................$3,774,949 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ....................................17,536,004
NPV Cumulative Energy (kWh) ........................................170,076,883 $8,013,533 S
10% Credit (Northwest Power Act) ..................................801,353
Total Electric Savings .............................................................$8,814,886 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ..........................$9,302,097 B
Other Benefits
Non-Utility Rebates/Incentives........................................$–NUI
NEBs ................................................................................$ 2,436,678 NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT .........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................34%
Average Customer Segment Rate/kWh ...........................................................................$0.057
Line Losses .......................................................................................................................9.60%
Notes: Non-energy benefits/impacts on a $/kWh for each end-use. Based on 2019 impact evaluation.
Demand-Side Management 2021 Annual Report Page 35
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof TRC Ratiog
Source/Notes
Lighting Interior Light Load Reduction. Part A: 10-19.9% below code.Code standards ft2 Commercial-Miscellaneous-Interior Lighting-All
14 0.43 $0.23 $- $0.13 $0.10 $0.031 2.00 1.74 1
Lighting Interior Light Load Reduction. Part B: 20-29.9% below code.Code standards ft2 Commercial-Miscellaneous-Interior Lighting-All
14 0.86 $0.45 $- $0.25 $0.20 $0.031 2.00 1.80 1
Lighting Interior Light Load Reduction. Part C: Equal to or greater than 30% below code.
Code standards ft2 Commercial-Miscellaneous-Interior Lighting-All
14 1.95 $1.03 $- $0.58 $0.30 $0.031 2.85 1.77 1
Lighting Exterior Light Load Reduction. Minimum of 15% below code.Code standards kW IPC_Outdoor Lighting 15 4,059.00 $1,784.11 $- $287.00 $200.00 $0.031 5.48 4.75 1
Lighting Networked Lighting Controls -
Interior
Code standards kWh Commercial-
Miscellaneous-Interior Lighting-All
12 1.00 $0.46 $- $0.33 $0.26 $0.031 1.57 1.38 1
Lighting Networked Lighting Controls -
Exterior
Code standards kWh IPC_Outdoor
Lighting
12 1.00 $0.37 $- $0.33 $0.20 $0.031 1.58 1.10 1
Lighting Occupancy Sensors Code standards Sensor Commercial-Miscellaneous-Interior Lighting-All
8 329.00 $97.89 $- $134.00 $25.00 $0.031 2.78 0.75 1, 2
Lighting High-Efficiency Exit Signs Code standards Sign IPC_8760 16 28.00 $15.58 $- $10.83 $7.50 $0.031 1.86 1.47 1
A/C Unitary Commercial Air
Conditioners, Air Cooled (Cooling Mode). Split system & single package. Part A: Base to CEE Tier 1
IECC 2018 Code
Standard
Tons Commercial-
Miscellaneous-Cooling-All
15 47.00 $34.03 $- $79.00 $25.00 $0.031 1.29 0.47 1, 2
A/C Unitary Commercial Air Conditioners, Air Cooled (Cooling
Mode). Split system & single package. Part B: Base to CEE Tier 2
IECC 2018 Code Standard Tons Commercial-Miscellaneous-
Cooling-All
15 88.00 $63.72 $- $123.00 $50.00 $0.031 1.21 0.56 1, 2
Heat Pump Heat Pumps, Air Cooled (Cooling
Mode). Split system & single package. Part A: Base to CEE Tier 1
IECC 2018 Code
Standard
Tons Commercial-
Miscellaneous-Cooling-All
15 72.00 $52.14 $- $36.00 $50.00 $0.031 1.00 1.50 1
Heat Pump Heat Pumps, Air Cooled (Cooling
Mode). <= 5 tons. Split system & single package. Part B: Base to CEE Tier 2
IECC 2018 Code
Standard
Tons Commercial-
Miscellaneous-Cooling-All
15 104.00 $75.31 $- $67.00 $70.00 $0.031 1.03 1.18 1
VRF AC Variable Refrigerant Flow Units. Air Conditioner. Part B: Base to CEE Tier 1
IECC 2018 Air Cooled AC Code Standard
Tons Commercial-Miscellaneous-Cooling-All
15 87.00 $63.00 $- $93.00 $35.00 $0.031 1.67 0.72 1, 2
VRF AC Variable Refrigerant Flow Units. <= 5 tons.
A/C. Part C: Base to CEE Tier 2
IECC 2018 Air Cooled AC Code
Standard
Tons Commercial-Miscellaneous-
Cooling-All
15 119.00 $86.17 $- $108.00 $55.00 $0.031 1.47 0.85 1, 2
VRF Heat Pump Variable Refrigerant Flow Units. Heat Pump. Part B: Base to CEE
Tier 1
IECC 2018 Air Cooled AC Code
Standard
Tons Commercial-Miscellaneous-
Cooling-All
15 97.00 $70.24 $- $36.00 $50.00 $0.031 1.33 1.98 1
Year: 2021 Program: New Construction Market Segment: Commercial Program Type: Energy Efficiency
Page 36 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof TRC Ratiog
Source/Notes
VRF Heat Pump Variable Refrigerant Flow Units. <= 5 tons. Heat Pump. Part C: Base to CEE Tier 2
IECC 2018 Air Cooled AC Code Standard
Tons Commercial-Miscellaneous-Cooling-All
15 129.00 $93.41 $- $71.00 $85.00 $0.031 1.05 1.37 1
A/C Air Conditioners, Water Cooled
Any Size
IECC 2018 Air
Cooled AC Code Standard
Ton Commercial-
Miscellaneous-Cooling-All
15 67.00 $48.52 $- $225.00 $40.00 $0.031 1.15 0.24 1, 2
HP Heat Pumps, Water Cooled
Any Size
IECC 2018 Air
Cooled AC Code Standard
Ton Commercial-
Miscellaneous-Cooling-All
15 133.00 $96.31 $- $370.00 $100.00 $0.031 0.92 0.28 1, 2, 6
VRF HP Variable Refrigerant Flow, Water
Cooled Heat Pump <= 64 Tons Base to CEE Tier 1
IECC 2018 Air
Cooled AC Code Standard
Ton Commercial-
Miscellaneous-Cooling-All
15 128.00 $92.69 $- $145.00 $100.00 $0.031 0.89 0.68 1, 2, 6
A/C Air-cooled chiller condenser, IPLV
14.0 EER or higher
IECC 2018 Code
standards
Tons Commercial-
Miscellaneous-Cooling-All
20 102.00 $91.96 $- $209.00 $80.00 $0.031 1.11 0.48 2, 3
A/C Water-cooled chiller electronically
operated, reciprocating and positive displacement
IECC 2018 Code
standards
Tons Commercial-
Miscellaneous-Cooling-All
20 61.00 $55.00 $- $103.00 $40.00 $0.031 1.31 0.58 2, 4
A/C Airside economizer IECC 2018 Code standards Ton of cooling Commercial-Miscellaneous-Cooling-All
15 197.00 $142.65 $- $81.36 $75.00 $0.031 1.76 1.79 1
A/C Water-side Economizer IECC 2018 Code Standard Combined chiller tonnage Commercial-Miscellaneous-Cooling-All
10 153.00 $73.51 $- $725.82 $50.00 $0.031 1.34 0.11 1, 2
A/C Direct evaporative cooler IECC 2018 Code standards Tons Commercial- Miscellaneous- Cooling-All
15 315.00 $228.09 $- $364.00 $200.00 $0.031 1.09 0.67 1, 2
A/C Indirect evaporative cooler IECC 2018 Code Standard Tons Commercial-Miscellaneous-Cooling-All
15 225.00 $162.92 $- $1,553.00 $130.00 $0.031 1.19 0.11 1, 2
A/C Evaporative Pre-Cooler on Air-Cooled Chillers air-cooled condenser coil Tons Commercial-Miscellaneous-Cooling-All
15 63.00 $45.62 $- $173.00 $30.00 $0.031 1.43 0.29 1, 2
A/C Evaporative Pre-Cooler on Air-Cooled Refrigeration Systems air-cooled condenser coil Tons Commercial-Miscellaneous-Refrigeration-All
15 110.00 $59.39 $- $173.00 $30.00 $0.031 1.78 0.37 1, 2
Building Shell Reflective roof treatment IECC 2018 Code Standard ft2 roof area Commercial-Miscellaneous-Cooling-All
15 0.12 $0.08 $- $0.05 $0.05 $0.031 1.57 1.72 1
Controls Energy Management System (EMS) controls. Part A: 1 strategy IECC 2018 Code standards Tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 227.00 $129.51 $17.08 $162.00 $60.00 $0.031 1.93 0.94 1, 2
Controls Energy Management System (EMS) controls. Part B: 2 strategies IECC 2018 Code standards Tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 409.00 $233.35 $17.08 $198.00 $80.00 $0.031 2.52 1.30 1
Demand-Side Management 2021 Annual Report Page 37
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof TRC Ratiog
Source/Notes
Controls EMS controls. Part C: 3 strategies IECC 2018 Code standards Tons of cooling Commercial-Miscellaneous-Ventilation-All
15 473.00 $269.87 $28.46 $233.00 $100.00 $0.031 2.35 1.31 1
Controls EMS controls. Part D: 4 strategies IECC 2018 Code Standard Tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 567.00 $323.50 $59.77 $269.00 $120.00 $0.031 2.35 1.45 1
Controls EMS controls. Part E: 5 strategies IECC 2018 Code standards Tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 617.00 $352.03 $59.77 $304.00 $140.00 $0.031 2.21 1.38 1
Controls Guest room energy management system IECC 2018 Code standards Ton Commercial-Lodging-Ventilation-All 11 550.00 $235.85 $- $57.50 $50.00 $0.031 3.52 3.48 1
Controls Variable speed drive on HVAC system applications IECC 2018 Code standards HP Commercial-Miscellaneous-Ventilation-All
15 582.00 $332.06 $- $153.91 $125.00 $0.031 2.32 2.12 1
Controls Part C: Variable speed drive on Potato/Onion Storage Shed Ventilation
No VFD HP IPC_Onion Potato VSD 10 1,193.00 $393.98 $- $264.00 $250.00 $0.031 1.37 1.44 1
Controls Demand Controlled Kitchen Ventilation Exhaust Hood Kitchen hood with constant speed ventilation motor
HP Commercial-Restaurant-Ventilation-All
15 4,590.00 $2,557.85 $- $248.00 $250.00 $0.031 6.52 7.21 1
Appliances with Electric Dryer Efficient Laundry Machines (electric dryer)IECC 2018 Code standards Unit Commercial- Miscellaneous- Miscellaneous-All
9 814.50 $276.13 $1,171.15 $400.00 $200.00 $0.031 1.23 3.47 5
Refrigeration Efficient Refrigeration Condenser Code standards Ton Commercial- Miscellaneous- Refrigeration-All
15 114.00 $61.55 $- $192.00 $40.00 $0.031 1.41 0.35 1, 2
Automatic High-Speed Doo Refrigerator to Dock Code standards ft2 Commercial-Miscellaneous-
Refrigeration-All
16 360.00 $201.93 $- $167.00 $80.00 $0.031 2.22 1.25 1
Automatic High-Speed Door Freezer to Refrigerator Code standards ft2 Commercial- Warehouse-
Refrigeration-All
16 1,829.00 $1,025.93 $- $167.00 $160.00 $0.031 4.73 5.04 1
Automatic High-Speed Door Freezer to Dock Code standards ft2 Commercial-Warehouse-
Refrigeration-All
16 2,531.00 $1,419.70 $- $167.00 $320.00 $0.031 3.56 6.36 1
High-Volume, Low-Speed Fan High-Volume, Low-Speed Fan Standard high-speedfan Fan Commercial- Warehouse-
Ventilation-All
15 16,733.00 $9,546.98 $- $3,185.00 $2,000.00 $0.031 3.79 2.84 1
Compressed Air Air compressor VFD No existing VFD HP Commercial- Miscellaneous- Miscellaneous-All
13 949.00 $467.37 $- $223.00 $200.00 $0.031 2.04 2.04 1
Compressed Air No-Loss Condensate Drain Open tube with ball valve HP Commercial- Miscellaneous- Miscellaneous-All
10 1,970.00 $748.57 $- $194.00 $200.00 $0.031 2.87 3.23 1
Page 38 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof TRC Ratiog
Source/Notes
Compressed Air Low Pressure Drop Filter Standard filter HP Commercial-Miscellaneous-Miscellaneous-All
10 44.00 $16.72 $- $10.00 $10.00 $0.031 1.47 1.62 1
Compressed Air Refrigerated Compressed Air Dryer Standard air dryer CFM Commercial-Miscellaneous-
Miscellaneous-All
13 10.62 $5.23 $- $6.00 $3.00 $0.031 1.57 0.91 1, 2
Compressed Air Efficient Compress Air Nozzle Code standards unit Commercial- Miscellaneous-
Miscellaneous-All
15 2,223.00 $1,238.15 $- $85.00 $80.00 $0.031 8.31 8.85 1
Engine BlockHeater Control Wall-mounted engine block heater Standard engine block heater
without controls
Unit IPC_Engine Block 15 2,738.00 $1,218.71 $- $70.00 $100.00 $0.031 6.59 8.66 1
Engine Block Heater Controls Engine-mounted engine block heater Standard engine block heater
without controls
Unit IPC_Engine Block 15 2,352.00 $1,046.90 $- $120.00 $150.00 $0.031 4.70 5.97 1
Dairy VFD VFD on milking vacuum pump No existing VFD VFD Commercial-Miscellaneous-
Miscellaneous-All
10 548.00 $208.23 $- $273.00 $170.00 $0.031 1.11 0.79 1, 2
Dairy VFD VFD on milking transfer pump No existing VFD VFD Commercial-Miscellaneous-Miscellaneous-All
10 7,687.00 $2,920.95 $- $1,469.00 $1,500.00 $0.031 1.68 1.88 1
Engine block heater Stationary pump-driven circulating block heater Circulating Block Heater on a Backup Generator <200 kW
per unit IPC_Engine Block 15 1,106.00 $492.29 $- $239.00 $200.00 $0.031 2.10 1.98 1
Engine block heater Stationary pump-driven circulating block heater Circulating Block Heater on a Backup Generator 201-500 kW
per unit IPC_Engine Block 15 2,493.00 $1,109.66 $- $573.00 $350.00 $0.031 2.60 1.88 1
Engine block heater Stationary pump-driven circulating block heater Circulating Block Heater on a Backup Generator 501-1000
kW
per unit IPC_Engine Block 15 4,385.00 $1,951.80 $- $573.00 $500.00 $0.031 3.07 3.03 1
Ice Machines ENERY STAR Ice Machine <200 lbs per day non ENERGY STAR ice machine unit Commercial-Miscellaneous-Miscellaneous-All
9 285.00 $96.62 $- $311.00 $100.00 $0.031 0.89 0.33 1, 2, 6
Ice Machines ENERY STAR Ice Machine >= 200 lbs per day non ENERGY STAR ice machine unit Commercial-Miscellaneous-Miscellaneous-All
9 2,608.00 $884.16 $- $311.00 $300.00 $0.031 2.32 2.48 1
High-Efficiency Battery Chargers High-Efficiency Battery Chargers - Single or Three Phase Code standards unit Commercial-Miscellaneous-Miscellaneous-All
15 3,337.00 $1,858.61 $- $400.00 $200.00 $0.031 6.13 4.06 1
a Average measure life.
b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end-use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.d Incremental participant cost prior to customer incentives.e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.
f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
Demand-Side Management 2021 Annual Report Page 39
Supplement 1: Cost-Effectiveness
1 Idaho Power TRM prepared by ADM Associates, Inc. 2021.
2 Idaho only measure.
3 Idaho Power TRM prepared by ADM Associates, Inc. 2021. Averaged air-cooled chillers.
4 Idaho Power TRM prepared by ADM Associates, Inc. 2021. Averaged water-cooled chillers.5 Idaho Power TRM prepared by ADM Associates, Inc. 2021. NEBs from water savings from RTF. ComClothesWashers_v5_1.xlsm. Simple average. 2018.6 Measure not cost-effective from UCT perspective. Will continue to monitor in 2022.
Page 40 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Retrofits
Segment: Commercial2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ..........................................................$ 9,679,218 $3,826,750 2.53
TRC Test ........................................................14,683,300 11,534,413 1.27
RIM Test ........................................................9,679,218 15,062,372 0.64
PCT ...............................................................18,308,420 10,744,301 1.70
Cost Inputs Ref
Program Administration .....................................................................................$790,112
Program Incentives .............................................................................................3,036,638 I
Total UC ..............................................................................................................$3,826,750 P
Measure Equipment and Installation (Incremental Participant Cost) ................$10,744,301 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) .......................................21,181,022
NPV Cumulative Energy (kWh) ...........................................205,428,909 $9,679,218 S
10% Credit (Northwest Power Act) .....................................967,922
Total Electric Savings ................................................................$10,647,140 A
Participant Bill Savings
NPV Cumulative Participant Savings ...................................$11,235,622 B
Other Benefits
Non-Utility Rebates/Incentives...........................................$–NUI
NEBs ...................................................................................$ 4,036,159 NEB
Benefits and Costs Included in Each Test
UC Test ....................................................= S * NTG = P
TRC Test ..................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ..................................................= S * NTG = P + (B * NTG)
PCT .........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................55%
Average Customer Segment Rate/kWh ...........................................................................$0.057
Line Losses .......................................................................................................................9.60%
Note: Measure inputs from Evergreen Consulting Group or the TRM prepared by ADM Associates, Inc., unless otherwise noted. NEB/impacts on a $/kWh for each end-use. Based on 2019 impact evaluation.
Demand-Side Management 2021 Annual Report Page 41
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure unit End Use Measure Life (yrs)a
Annual Gross
Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross
Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e
UCT Ratiof
TRC Ratiog
Source/Notes
Permanent Fixture Removal Permanent Fixture Removal fixture Commercial-Miscellaneous-
Interior Lighting-All
6 873.61 $183.46 $- $29.08 $22.69 $0.031 3.69 3.59 1
Light Emitting Diode (LEDS)Screw-in or pin-based LED Screw-in or pin-base lamp using higher wattage fixture Commercial-Miscellaneous-
Interior Lighting-All
12 138.06 $63.27 $- $22.80 $4.73 $0.031 7.02 2.57 1
LEDs HID LED screw-in replacement lamp Existing HID lamp using > input watts fixture Commercial-Miscellaneous-
Interior Lighting-All
12 662.71 $303.70 $- $107.70 $49.23 $0.031 4.35 2.60 1
LEDs LED Tubes (type A, B & DM)fixture using higher wattage fixture Commercial-Miscellaneous-
Interior Lighting-All
12 203.00 $93.03 $- $42.86 $12.47 $0.031 4.96 2.08 1
LEDs LED Tubes (type C) or LED Level 1 Retrofit Kit fixture using higher wattage fixture Commercial-Miscellaneous-
Interior Lighting-All
12 309.96 $142.05 $- $85.80 $33.55 $0.031 3.29 1.64 1
LEDs LED Level 1 retrofit kit with single control strategy fixture using higher wattage fixture Commercial-Miscellaneous-Interior Lighting-All
12 289.43 $132.64 $- $127.38 $40.52 $0.031 2.68 1.07 1
LEDs LED Level 1 retrofit kit with multiple control strategy fixture using higher wattage fixture Commercial-Miscellaneous-Interior Lighting-All
12 410.70 $188.21 $- $140.40 $65.71 $0.031 2.40 1.35 1
LEDs LED Level 1 retrofit kit with networked control strategy fixture using higher wattage fixture Commercial-Miscellaneous-Interior Lighting-All
12 455.35 $208.67 $- $142.98 $81.96 $0.031 2.17 1.46 1
LEDs LED fixture or LED Level 2 retrofit kit fixture using higher
wattage
fixture Commercial-
Miscellaneous-Interior Lighting-All
12 440.45 $201.84 $- $178.93 $83.69 $0.031 2.07 1.15 1
LEDs LED fixture or LED Level 2 retrofit kit
with single control strategy
fixture using higher
wattage
fixture Commercial-
Miscellaneous-Interior Lighting-All
12 518.33 $237.53 $- $203.25 $108.85 $0.031 1.90 1.19 1
LEDs LED fixture or LED Level 2 retrofit kit
with multiple control strategy
fixture using higher
wattage
fixture Commercial-
Miscellaneous-Interior Lighting-All
12 599.94 $274.93 $- $282.13 $143.99 $0.031 1.69 1.01 1
LEDs LED fixture or LED Level 2 retrofit kit
with networked control strategy
fixture using higher
wattage
fixture Commercial-
Miscellaneous-Interior Lighting-All
12 722.45 $331.08 $- $348.50 $187.84 $0.031 1.57 0.98 1, 2
LED Exit Sign LED Exit Sign fixture using higher
wattage
sign IPC_8760 12 230.68 $100.50 $- $61.89 $40.00 $0.031 2.13 1.60 1
LED sign lighting retrofit kit LED sign lighting retrofit kit fixture using higher wattage fixture Commercial-Miscellaneous-Interior Lighting-All
12 427.11 $195.73 $- $161.34 $76.68 $0.031 2.18 1.23 1
Lighting Controls (Idaho)Lighting Controls Manual controls controls Commercial-Miscellaneous-Interior Lighting-All
10 159.70 $60.84 $- $85.47 $27.31 $0.031 1.89 0.74 1, 3
Year: 2021 Program: Retrofits Market Segment: Commercial Program Type: Energy Efficiency
Page 42 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
Lighting
Controls (Oregon)
Lighting Controls Manual controls controls Commercial-
Miscellaneous-Interior Lighting-All
10 139.18 $53.03 $-$75.47 $25.00 $0.031 1.81 0.73 1, 15
Refrigeration
Case Lighting
Refrigeration Case Lighting fixture using higher
wattage
lamp Commercial-
Miscellaneous-Refrigeration-All
7 365.73 $90.86 $- $107.23 $52.26 $0.031 1.43 0.84 1, 3
Permanent
Fixture Removal
Permanent Fixture Removal fixture IPC_Outdoor
Lighting
6 1,013.14 $191.07 $- $39.44 $17.69 $0.031 3.89 2.97 1
Light Emitting Diode (LEDS)Screw-in or pin-based LED Screw-in or pin-base lamp using higher wattage fixture IPC_Outdoor Lighting 12 156.95 $57.42 $- $36.02 $3.09 $0.031 7.22 1.54 1
LEDs HID LED screw-in replacement lamp Existing HID lamp using > input watts fixture IPC_Outdoor Lighting 12 743.75 $272.09 $- $106.32 $43.98 $0.031 4.06 2.31 1
LEDs LED Tubes (type A, B & DM)fixture using higher
wattage
fixture IPC_Outdoor
Lighting
12 287.20 $105.07 $- $63.89 $12.24 $0.031 4.97 1.59 1
LEDs LED Tubes (type C) or LED Level 1 Retrofit Kit fixture using higher wattage fixture IPC_Outdoor Lighting 12 526.92 $192.77 $- $125.38 $37.74 $0.031 3.56 1.50 1
LEDs LED Level 1 retrofit kit with single control strategy fixture using higher wattage fixture IPC_Outdoor Lighting 12 646.59 $236.55 $- $167.32 $77.59 $0.031 2.42 1.39 1
LEDs LED Level 1 retrofit kit with multiple
control strategy
fixture using higher
wattage
fixture IPC_Outdoor
Lighting
12 850.79 $311.25 $- $202.36 $119.11 $0.031 2.14 1.50 1
LEDs LED Level 1 retrofit kit with networked control strategy fixture using higher wattage fixture IPC_Outdoor Lighting 12 933.44 $341.49 $- $218.51 $149.35 $0.031 1.92 1.52 1
LEDs LED fixture or LED Level 2 retrofit kit fixture using higher wattage fixture IPC_Outdoor Lighting 12 912.48 $333.82 $- $279.77 $127.75 $0.031 2.25 1.22 1
LEDs LED fixture or LED Level 2 retrofit kit
with single control strategy
fixture using higher
wattage
fixture IPC_Outdoor
Lighting
12 951.89 $348.24 $- $341.84 $152.30 $0.031 2.02 1.06 1
LEDs LED fixture or LED Level 2 retrofit kit with multiple control strategy fixture using higher wattage fixture IPC_Outdoor Lighting 12 753.43 $275.63 $- $269.49 $135.62 $0.031 1.77 1.05 1
LEDs LED fixture or LED Level 2 retrofit kit with networked control strategy fixture using higher wattage fixture IPC_Outdoor Lighting 12 1,636.51 $598.69 $- $556.48 $327.30 $0.031 1.72 1.14 1
LED sign lighting retrofit kit
LED sign lighting retrofit kit fixture using higher wattage fixture IPC_Outdoor Lighting 12 487.27 $178.26 $- $172.05 $68.22 $0.031 2.01 1.02 1
Lighting
Controls (Idaho)
Lighting Controls Manual controls controls IPC_Outdoor
Lighting
10 295.20 $91.36 $- $103.41 $19.82 $0.031 2.27 0.81 1, 3
Lighting Controls
(Oregon)
Lighting Controls Manual controls controls IPC_Outdoor Lighting 10 366.20 $113.34 $- $110.26 $20.12 $0.031 2.80 0.95 1, 2
Air Conditioning (AC) Units Base to CEE Tier 1 working pre-existing system tons Commercial-Miscellaneous-
Cooling-All
15 152.00 $110.06 $- $940.00 $85.00 $0.031 1.23 0.13 3, 4
AC Units Base to CEE Tier 2 working pre-existing system tons Commercial-Miscellaneous-
Cooling-All
15 193.00 $139.75 $- $984.00 $110.00 $0.031 1.20 0.16 3, 4
Demand-Side Management 2021 Annual Report Page 43
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
AC Units <= 5 ton VRF. Base to CEE Tier 2 working pre-existing
system
tons Commercial-
Miscellaneous-Cooling-All
15 161.00 $116.58 $- $1,093.00 $100.00 $0.031 1.11 0.12 3, 4
AC Units VRF.
Base to CEE Tier 1
working pre-existing
system
tons Commercial-
Miscellaneous-Cooling-All
15 129.00 $93.41 $- $1,078.00 $75.00 $0.031 1.18 0.09 3, 4
AC Units Water-cooled AC that meets CEE
Tier 1
working pre-existing
system
tons Commercial-
Miscellaneous-Cooling-All
15 130.00 $94.13 $- $1,237.00 $75.00 $0.031 1.19 0.08 3, 4
AC Units Air-conditioning Tune Up ton Commercial-Miscellaneous-Cooling-All
10 99.50 $47.81 $- $35.00 $25.00 $0.031 1.70 1.38 4
Heat Pump (HP) Units Air Cooled HP Base to CEE Tier 1 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 187.00 $135.41 $- $888.00 $110.00 $0.031 1.17 0.17 3, 4
HP Units <= 5 ton HP Unit. Base to CEE Tier 2 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 219.00 $158.58 $- $919.00 $130.00 $0.031 1.16 0.19 3, 4
HP Units Water-cooled HP that meets CEE Tier 1 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 129.00 $93.41 $- $971.00 $75.00 $0.031 1.18 0.11 3, 4
HP Units <= 5 ton Air-cooled VRF. Base to CEE Tier 2 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 175.00 $126.72 $- $1,034.00 $110.00 $0.031 1.10 0.13 3, 4
HP Units Air-cooled VRF. Base to CEE Tier 1 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 143.00 $103.55 $- $999.00 $90.00 $0.031 1.10 0.11 3, 4
HP Units Water-cooled VRF that meets CEE Tier 1 working pre-existing system tons Commercial-Miscellaneous-Cooling-All
15 75.00 $54.31 $- $1,187.00 $45.00 $0.031 1.15 0.05 3, 4
Chiller Units Air-cooled chiller, IPLV 14.0 EER or higher working pre-existing system tons Commercial-Miscellaneous-Cooling-All
20 154.00 $138.85 $- $784.00 $110.00 $0.031 1.21 0.19 3, 5
Chiller Units Water-cooled chiller electronically operated, reciprocating and positive
displacement
working pre-existing system tons Commercial-Miscellaneous-
Cooling-All
20 91.00 $82.05 $- $596.00 $60.00 $0.031 1.31 0.15 3, 6
Economizers Air-side economizer control addition No prior control Ton of cooling Commercial-Miscellaneous-
Cooling-All
15 279.00 $202.03 $- $155.01 $100.00 $0.031 1.86 1.36 4
Economizers Air-side economizer control repair Non-functional economizer Ton of cooling Commercial-Miscellaneous-
Cooling-All
15 279.00 $202.03 $- $73.65 $50.00 $0.031 3.44 2.70 4
Economizers Water-side economizer control addition No prior control Combined chiller
tonnage
Commercial-Miscellaneous-
Cooling-All
10 153.00 $73.51 $- $725.82 $50.00 $0.031 1.34 0.11 3, 4
Page 44 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
Evaporative
Coolers
Direct evaporative cooler Replacing standard AC
unit
Ton Commercial-
Miscellaneous-Cooling-All
15 350.00 $253.44 $- $1,178.00 $200.00 $0.031 1.20 0.23 3, 4
Evaporative
Coolers
Indirect evaporative cooler Replacing standard AC
unit
ton Commercial-
Miscellaneous-Cooling-All
15 250.00 $181.03 $- $2,367.00 $130.00 $0.031 1.31 0.08 3, 4
Evaporative
Pre-Cooler on Air-Cooled Chillers
Evaporative Pre-Cooler on Air-Cooled
Chillers
existing air-cooled
condenser coil
ton Commercial-
Miscellaneous-Cooling-All
15 63.00 $45.62 $- $173.00 $30.00 $0.031 1.43 0.29 3, 4
Automated Control Systems Energy Management System (EMS) controls with 1 strategy Proposed strategy not existing (retrofit system)tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 372.00 $212.24 $22.77 $198.00 $100.00 $0.031 1.90 1.22 4
Automated Control Systems EMS controls with 2 strategies Proposed strategy not existing (retrofit system)tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 622.00 $354.88 $17.08 $233.00 $150.00 $0.031 2.10 1.62 4
Automated Control Systems EMS controls with 3 strategies Proposed strategy not existing (retrofit system)tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 811.00 $462.71 $51.23 $269.00 $175.00 $0.031 2.31 1.90 4
Automated Control Systems EMS controls with 4 strategies Proposed strategy not existing (retrofit system)tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 1,728.00 $985.91 $273.24 $304.00 $200.00 $0.031 3.89 3.80 4
Automated Control Systems EMS controls with 5 strategies Proposed strategy not existing (retrofit system)tons of cooling Commercial-Miscellaneous-
Ventilation-All
15 1,796.00 $1,024.70 $276.09 $340.00 $225.00 $0.031 3.65 3.55 4
Automated Control Systems EMS controls with 1 strategy Proposed strategy not existing (new system)
tons of cooling Commercial-Miscellaneous-Ventilation-All
15 227.00 $129.51 $17.08 $162.00 $60.00 $0.031 1.93 0.94 3, 4
Automated Control Systems EMS controls with 2 strategies Proposed strategy not existing (new system)
tons of cooling Commercial-Miscellaneous-Ventilation-All
15 409.00 $233.35 $17.08 $198.00 $80.00 $0.031 2.52 1.30 4
Automated Control Systems EMS controls with 3 strategies Proposed strategy not existing (new system)
tons of cooling Commercial-Miscellaneous-Ventilation-All
15 473.00 $269.87 $28.46 $233.00 $100.00 $0.031 2.35 1.31 4
Automated
Control Systems
EMS controls with 4 strategies Proposed strategy not
existing (new system)
tons of
cooling
Commercial-
Miscellaneous-Ventilation-All
15 567.00 $323.50 $59.77 $269.00 $120.00 $0.031 2.35 1.45 4
Automated
Control Systems
EMS controls with 5 strategies Proposed strategy not
existing (new system)
tons of
cooling
Commercial-
Miscellaneous-Ventilation-All
15 617.00 $352.03 $59.77 $304.00 $140.00 $0.031 2.21 1.38 4
Automated
Control Systems
Lodging room occupancy controls Manual controls Unit Commercial-
Lodging-Ventilation-All
11 643.00 $262.69 $- $150.61 $75.00 $0.031 2.77 1.69 4
Electronically
Commutated Motor (ECM)
ECM/PMSM motor in HVAC
applications.
Shaded pole or
permanent split capacitor motor
HP Commercial-
Miscellaneous-Ventilation-All
15 8,815.25 $5,029.52 $- $239.50 $200.00 $0.031 10.63 10.79 4
Demand-Side Management 2021 Annual Report Page 45
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
Premium
Windows
Low U-value, U-factor of .30 or less Standard window sq ft
window area
Commercial-
Miscellaneous-Heating-Electric Furnace
25 9.00 $5.87 $- $22.08 $2.50 $0.031 2.11 0.29 3, 4
Reflective roofing Adding reflective roof treatment non-reflective low pitch roof ft2 roof area Commercial-Miscellaneous-Cooling-All
15 0.12 $0.08 $- $0.05 $0.05 $0.031 1.57 1.72 4
Ceiling Insulation Increase to R38 min. insulation.Insulation level, R11 or less sq ft Commercial-Miscellaneous-Heating-Electric Furnace
25 0.38 $0.25 $- $1.45 $0.20 $0.031 1.18 0.19 3, 4
Wall Insulation Increase to R11 min. insulation.Insulation level, R2.5
or less
sq ft wall
area
Commercial-
Miscellaneous-Heating-Electric Furnace
25 2.82 $1.84 $- $0.64 $0.40 $0.031 3.78 2.78 4
Wall Insulation Increase to R19 min. insulation.Insulation level, R2.5 or less sq ft wall area Commercial-Miscellaneous-Heating-Electric Furnace
25 3.16 $2.06 $- $0.85 $0.55 $0.031 3.18 2.39 4
Laundry Machines High efficiency washer Standard washer, electric dryer Machine Commercial-Miscellaneous-Miscellaneous-All
9 814.50 $276.13 $1,171.15 $400.00 $200.00 $0.031 1.23 3.47 4, 7
HVAC Fan Motor Belts Type AX notched V-belt Type BX notched V-belt Type A solid V-belt Type B solid V-belt HP Commercial-Miscellaneous-Ventilation-All
4 83.00 $11.16 $- $4.40 $5.00 $0.031 1.47 1.76 4
HVAC Fan
Motor Belts
Synchronous belt Standard fan belt HP Commercial-
Miscellaneous-Ventilation-All
4 213.00 $28.64 $- $67.00 $25.00 $0.031 0.91 0.43 3, 16
Engine block
heater
Stationary pump-driven circulating
block heater
Circulating Block Heater
on a Backup Generator <200 kW
unit IPC_Engine Block 15 1,106.00 $492.29 $- $1,268.00 $200.00 $0.031 2.10 0.42 3, 4
Engine block
heater
Stationary pump-driven circulating
block heater
Circulating Block Heater
on a Backup Generator 201-500 kW
unit IPC_Engine Block 15 2,493.00 $1,109.66 $- $2,152.00 $350.00 $0.031 2.60 0.55 3, 4
Engine block
heater
Stationary pump-driven circulating
block heater
Circulating Block Heater
on a Backup Generator 501-1000 kW
unit IPC_Engine Block 15 4,385.00 $1,951.80 $- $2,645.00 $500.00 $0.031 3.07 0.77 3, 4
Engine block
heater
Wall mounted engine block heater standard engine block
heater without controls
Unit IPC_Engine Block 15 2,738.00 $1,218.71 $- $120.00 $100.00 $0.031 6.59 6.54 4
Engine block heater Engine-mounted engine block heater standard engine block heater without controls Unit IPC_Engine Block 15 2,352.00 $1,046.90 $- $170.00 $150.00 $0.031 4.70 4.74 4
High Efficiency Battery Chargers
High Efficiency Battery Chargers Standard battery charger unit Commercial-Miscellaneous-Miscellaneous-All
15 3,337.00 $1,858.61 $- $400.00 $200.00 $0.031 6.13 4.06 4
Page 46 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
High Volume
Low Speed Fan
High Volume Low Speed Fan Standard high-speed fan Fan Commercial-
Warehouse-Ventilation-All
15 16,733.00 $9,339.57 $- $4,185.00 $2,000.00 $0.031 3.71 2.18 4
Compressed Air VFD on air compressor No existing VFD HP Commercial-
Miscellaneous-Miscellaneous-All
13 949.00 $467.37 $- $223.00 $200.00 $0.031 2.04 2.04 4
Compressed Air Low Pressure Filter Standard filter HP Commercial-
Miscellaneous-Miscellaneous-All
10 44.00 $16.72 $- $10.00 $10.00 $0.031 1.47 1.62 4
Compressed Air No-Loss Condensate Drain Open tube with ball valve Unit Commercial-Miscellaneous-Miscellaneous-All
10 1,970.00 $748.57 $- $244.00 $200.00 $0.031 2.87 2.70 4
Compressed Air Efficient Compress Air Nozzle Standard air nozzle Unit Commercial-Miscellaneous-Miscellaneous-All
15 2,223.00 $1,238.15 $- $85.00 $80.00 $0.031 8.31 8.85 4
Compressed Air Efficient Refrigerated Compressed Air Dryer Standard air dryer CFM Commercial-Miscellaneous-Miscellaneous-All
13 10.62 $5.23 $- $6.00 $3.00 $0.031 1.57 0.91 3, 4
Refrigeration Install auto-closer - walk-in no/damaged auto-closer, low temp Door Commercial-Miscellaneous-Refrigeration-All
8 2,509.00 $727.70 $- $736.00 $400.00 $0.031 1.52 0.98 2, 4
Refrigeration Install auto-closer - reach-in Damaged auto-closer, low temp Door Commercial-Miscellaneous-Refrigeration-All
8 326.00 $94.55 $- $736.00 $75.00 $0.031 1.11 0.14 3, 4
Refrigeration Install auto-closer - walk-in No/damaged auto-closer, med. Temp Door Commercial-Miscellaneous-Refrigeration-All
8 562.00 $163.00 $- $736.00 $135.00 $0.031 1.07 0.24 3, 4
Refrigeration Install auto-closer - reach-in Damaged auto-closer, med. Temp Door Commercial-Miscellaneous-Refrigeration-All
8 243.00 $70.48 $- $736.00 $55.00 $0.031 1.13 0.10 3, 4
Refrigeration Anti-sweat heat controls Low/med.temp case without controls Linear ft Commercial-Miscellaneous-Refrigeration-All
8 256.00 $74.25 $- $77.26 $50.00 $0.031 1.28 0.96 3, 4
Evaporative Pre-Cooler
on Air-Cooled Refrigeration Systems
Evaporative Pre-Cooler on Air-Cooled Refrigeration Systems existing air-cooled condenser coil ton Commercial-Miscellaneous-
Refrigeration-All
15 110.00 $59.39 $- $173.00 $30.00 $0.031 1.78 0.37 3, 4
Refrigeration No-heat glass door commercial glass door door Commercial-Miscellaneous-Refrigeration-All
12 779.00 $345.68 $- $664.00 $200.00 $0.031 1.54 0.55 3, 4
Defrost Coil Control Defrost Coil Control - Cooler or Freezer no evaporative coil defrost control per fan Commercial-Miscellaneous-Refrigeration-All
10 195.50 $72.29 $- $500.00 $50.00 $0.031 1.29 0.16 3, 4
Demand-Side Management 2021 Annual Report Page 47
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
Automatic high
speed doors
Freezer to Dock manual or electric
warehouse door
sq ft Commercial-
Warehouse-Refrigeration-All
16 2,812.00 $1,577.32 $- $188.00 $320.00 $0.031 3.87 6.31 4
Automatic high
speed doors
Freezer to Refrigerator manual or electric
warehouse door
sq ft Commercial-
Warehouse-Refrigeration-All
16 2,032.00 $1,139.80 $- $188.00 $160.00 $0.031 5.11 5.00 4
Automatic high
speed doors
Refrigerator to Dock manual or electric
warehouse door
sq ft Commercial-
Warehouse-Refrigeration-All
16 400.00 $224.37 $- $188.00 $80.00 $0.031 2.43 1.23 4
Strip Curtain For walk-in freezers no protective barrier sq ft Commercial-Warehouse-Refrigeration-All
4 210.00 $27.88 $- $9.00 $5.00 $0.031 2.42 1.98 4
Strip Curtain For walk-in refrigerators no protective barrier sq ft Commercial-Warehouse-Refrigeration-All
4 78.00 $10.35 $- $9.00 $5.00 $0.031 1.40 1.00 4
Compressor Head Fan Motor to ECM
Compressor Head Fan Motor to ECM SP or PSC with motors less than or equal to existing motor size
unit Commercial-Grocery-Refrigeration-All
15 345.61 $187.06 $- $228.08 $100.00 $0.031 1.69 0.86 3, 4
Floating Head/Suction Pressures
Head pressure controller Standard head pressure control HP Commercial-Miscellaneous-Refrigeration-All
16 440.00 $249.71 $- $311.90 $160.00 $0.031 1.44 0.84 3, 4
Floating Head/Suction Pressures
Suction pressure controller Standard suction pressure control HP Commercial-Miscellaneous-Refrigeration-All
16 104.00 $59.02 $- $86.91 $40.00 $0.031 1.37 0.72 3, 4
Demand Controlled Kitchen Ventilation Exhaust Hood
VFD installed on kitchen exhaust and/or makeup air fan Kitchen hood with constant speed ventilation motor
HP Commercial-Miscellaneous-Cooking-All
15 4,590.00 $2,557.85 $- $469.00 $250.00 $0.031 6.52 4.60 4
Ice Machines Ice Machines (<200 lbs/day)code per unit Commercial-Miscellaneous-Miscellaneous-All
9 285.00 $96.62 $- $311.00 $100.00 $0.031 0.89 0.33 3, 4, 8
Ice Machines Ice Machines (>200 lbs/day)code per unit Commercial-Miscellaneous-Miscellaneous-All
9 2,608.00 $884.16 $- $311.00 $300.00 $0.031 2.32 2.48 4
Commercial Kitchen Equipment
Efficient Hot Food Holding Cabinet (Half Size)per unit Commercial-Miscellaneous-Cooking-All
10 1,605.05 $610.20 $- $315.94 $200.00 $0.031 2.44 1.84 9
Commercial Kitchen Equipment
Efficient Hot Food Holding Cabinet (Full Size)per unit Commercial-Miscellaneous-Cooking-All
10 2,839.99 $1,079.69 $- $672.68 $400.00 $0.031 2.21 1.56 9
Commercial Kitchen Equipment
Efficient Hot Food Holding Cabinet (Double Size)per unit Commercial-Miscellaneous-Cooking-All
10 5,238.05 $1,991.38 $- $2,838.36 $800.00 $0.031 2.07 0.73 3, 9
Page 48 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing
Measure
unit End Use
Measure
Life (yrs)a
Annual Gross Energy Savings
(kWh/yr)b
NPV DSM Avoided
Costsc NEB
Gross Incremental Participant
Costd
Incentive/
Unit
Admin Cost
($/kWh)e
UCT
Ratiof
TRC
Ratiog
Source/
Notes
New On-
Demand Overwrapper
New On-Demand Overwrapper per unit Commercial-
Grocery-Food Preparation-All
10 1,583.68 $588.26 $- $345.19 $100.00 $0.031 3.95 1.64 10
Commercial
Kitchen Equipment
ENERGY STAR listed electric
combination oven (5-15 pans)
Standard electric oven oven Commercial-
Miscellaneous-Cooking-All
7 5,106.65 $1,295.17 $- $989.08 $800.00 $0.031 1.35 1.24 11
Commercial
Kitchen Equipment
ENERGY STAR listed electric
combination oven (16-20 pans)
Standard electric oven oven Commercial-
Miscellaneous-Cooking-All
7 5,528.10 $1,402.06 $- $555.21 $300.00 $0.031 2.97 2.12 11
Commercial Kitchen Equipment
ENERGY STAR listed electric convection oven Standard electric oven oven Commercial-Miscellaneous-Cooking-All
8 736.40 $218.72 $- $439.97 $180.00 $0.031 1.08 0.52 3, 12
Commercial Kitchen Equipment
ENERGY STAR listed electric fryer Standard fryer fryer Commercial-Miscellaneous-Cooking-All
6 883.76 $185.40 $- $1,296.18 $150.00 $0.031 1.05 0.15 3, 13
Commercial Kitchen Equipment
ENERGY STAR listed electric steamer -Any Size Standard steamer pan Commercial-Miscellaneous-Cooking-All
7 2,995.49 $759.73 $874.80 $73.15 $30.00 $0.031 6.18 10.30 14
Variable Speed Controls Variable speed drive on HVAC system application single speed HVAC system fan/ump HP Commercial-Miscellaneous-Ventilation-All
15 622.00 $354.88 $- $184.55 $125.00 $0.031 2.46 1.92 4
Variable Speed Controls Variable speed drive on potato and onion storage shed ventilation no existing VFD HP IPC_Onion Potato VSD 10 1,193.00 $393.98 $- $264.00 $250.00 $0.031 1.37 1.44 4
Variable Speed
Controls
VFD on milking vacuum pump no existing VFD HP Commercial-
Miscellaneous-Miscellaneous-All
10 3,084.00 $1,171.88 $- $356.00 $250.00 $0.031 3.39 2.85 4
Variable Speed
Controls
VFD on milking transfer pump no existing VFD HP Commercial-
Miscellaneous-Miscellaneous-All
10 11,777.00 $4,475.10 $- $2,052.00 $1,500.00 $0.031 2.40 2.04 4
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses. c NPV of DSM avoided costs. Based on end use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. Total Resource Cost Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
d Incremental participant cost prior to customer incentives.
e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 Evergreen Consulting Group, LLC. Idaho Power Lighting Tool. 2021.
2 Measure not cost-effective from TRC perspective. Measure cost-effective without inclusion of admin costs.
3 Idaho only measure.4 Idaho Power TRM prepared by ADM Associates, Inc. 2021.5 Idaho Power TRM prepared by ADM Associates, Inc. 2021. Averaged air-cooled chillers.
6 Idaho Power TRM prepared by ADM Associates, Inc. 2021. Averaged water-cooled chillers.
7 Idaho Power TRM prepared by ADM Associates, Inc. 2021. NEBs from water savings from RTF. ComClothesWashers_v5_1.xlsm. Simple average. 2018.
8 Measure not cost-effective from UCT perspective. Will continue to monitor in 2022.9 RTF. ComCookingHotFoodCabinet_v3_2. 2020. 10 RTF. ComOnDemandOverwrappers_v1_1. 2018.
11 RTF. ComCookingCombinationOven_v3_1. 2019.
12 RTF. ComCookingConvectionOven_v3_1. Simple average of Half Size Oven savings. 2018.
13 RTF. ComCookingFryer_v3_3. 2020.14 RTF. ComCookingSteamer_v3_1. Calculated per pan savings using Any size savings divided by average steamer size of 6 pans. 2019.15 Measure not cost-effective from TRC perspective. Measure included in the program to increase participation in a cost-effective program and encourage adoption of higher efficiency equipment.
16 Measure not cost-effective from UCT perspective. Measure cost-effective without inclusion of admin costs.
Demand-Side Management 2021 Annual Report Page 49
Supplement 1: Cost-Effectiveness
Notes: NEB/impacts on a $/kWh for each end-use. Based on 2019 impact evaluation of other C&I programs 2021 cost-effectiveness ratios include evaluation expenses. If evaluation expense were removed from the program’s cost-effectiveness, the UCT and TRC would be 1.00 and 1.55, respectively.
Small Business Direct Install
Segment: Commercial2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ........................................................$ 1,020,765 $1,032,056 0.99
TRC Test ......................................................1,585,809 1,032,056 1.54
RIM Test ......................................................1,020,765 2,233,877 0.46
PCT ..............................................................N/A N/A N/A
Cost Inputs Ref
Program Administration .....................................................................................$ 1,032,056
Program Incentives .............................................................................................–I
Total UC ..............................................................................................................$ 1,032,056 P
Measure Equipment and Installation (Incremental Participant Cost) ................$–M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ......................................2,421,842
NPV Cumulative Energy (kWh) ..........................................22,150,523 $ 1,020,765 S
10% Credit (Northwest Power Act) ....................................102,076
Total Electric Savings ...............................................................$1,122,841 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ............................$ 1,201,821 B
Other Benefits
Non-Utility Rebates/Incentives...........................................$–NUI
NEBs ...................................................................................$ 462,967 NEB
Benefits and Costs Included in Each Test
UC Test .....................................................= S * NTG = P
TRC Test ...................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ...................................................= S * NTG = P + (B * NTG)
PCT ..........................................................N/A N/A
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................101%
Average Customer Segment Rate/kWh ...........................................................................$0.057
Line Losses .......................................................................................................................9.60%
Page 50 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Irrigation Efficiency Rewards
Segment: Irrigation2021 Program Results
Summary of Cost-Effectiveness Results
Test Benefit Cost Ratio
UC Test ........................................................$ 8,666,725 $2,607,200 3.32
TRC Test ......................................................85,932,044 19,133,627 4.49
RIM Test ......................................................8,666,725 9,850,067 0.88
PCT ..............................................................85,837,107 18,722,020 4.58
Cost Inputs Ref
Program Administration .....................................................................................$411,606
Program Incentives .............................................................................................2,195,594 I
Total UC ..............................................................................................................$2,607,200 P
Measure Equipment and Installation (Incremental Participant Cost) ................$18,722,020 M
Net Benefit Inputs (NPV)Ref
Resource Savings
2021 Annual Gross Energy (kWh) ......................................9,680,497
NPV Cumulative Energy (kWh) ..........................................122,996,040 $8,666,725 S
10% Credit (Northwest Power Act) ....................................866,672
Total Electric Savings ...............................................................$9,533,397 A
Participant Bill Savings
NPV Cumulative Participant Bill Savings ............................$7,242,867 B
Other Benefits
Non-Utility Rebates/Incentives...........................................$–NUI
NEBs ...................................................................................$$76,398,646 NEB
Benefits and Costs Included in Each Test
UC Test .....................................................= S * NTG = P
TRC Test ...................................................= (A + NUI + NEB) * NTG = P + ((M-I) * NTG)
RIM Test ...................................................= S * NTG = P + (B * NTG)
PCT ..........................................................= B + I + NUI + NEB = M
Assumptions for Levelized Calculations
Discount Rate
Nominal (WACC) ........................................................................................................6.74%
Real ((1 + WACC) / (1 + Escalation)) – 1 .....................................................................4.54%
Escalation Rate ................................................................................................................2.10%
Net-to-Gross (NTG) ..........................................................................................................100%
Minimum NTG Sensitivity ................................................................................................30%
Average Customer Segment Rate/kWh ...........................................................................$0.058
Line Losses .......................................................................................................................9.60%
Notes: Energy savings are combined for projects under the Custom and Menu program. Savings under each Custom project is unique and individually calculated and assessed. For Custom option, NEBs including yield, labor, and other benefits reported by the customer. For Menu option, NEBs from RTF. Green Rewind initiative is available to agricultural, commercial, and industrial customers. Agricultural motor rewinds are paid under Irrigation Efficiency Rewards, but the savings are not included in the program cost-effectiveness. Green Rewind savings are included in the sector cost-effectiveness.
2021 cost-effectiveness ratios include evaluation expenses. If evaluation expense were removed from the program’s cost-effectiveness, the UCT and TRC would be 3.34 and 4.49, respectively.
Demand-Side Management 2021 Annual Report Page 51
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Namea Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)b
Annual Gross Energy Savings (kWh/yr)c
NPV DSM Avoided Costsd NEB
Gross Incremental Participant Coste
Incentive/ Unit
Admin Cost ($/kWh)f UCT Ratiog
TRC Ratioh
Sources/Notes
Nozzle
Replacement
New flow-control-type nozzles
replacing existing brass nozzles or worn out flow control nozzles of same flow rate or less
Brass nozzles or
worn out flow control nozzles of same flow rate or less
Unit IPC_Irrigation 4 25.67 $3.69 $1.82 $6.35 $1.50 $0.043 1.42 0.79 1, 2
Nozzle Replacement New nozzles replacing existing worn nozzles of same flow rate or less
Worn nozzle of same flow rate or less
Unit IPC_Irrigation 4 25.67 $3.69 $1.82 $0.91 $0.25 $0.043 2.72 2.92 1
Sprinklers Rebuilt or new brass
impact sprinklers
Worn sprinkler Unit IPC_Irrigation 4 3.27 $0.47 $9.26 $12.31 $2.75 $0.043 0.16 0.79 1, 2
Levelers Rebuilt or new wheel line levelers Worn wheel line leveler Unit IPC_Irrigation 5 4.51 $0.80 $4.82 $6.23 $0.75 $0.043 0.84 0.89 1, 2
Sprinklers Center pivot/linear move: Install new sprinkler package on an existing system
Worn sprinkler system Unit IPC_Irrigation 5 23.99 $4.24 $11.33 $25.15 $8.00 $0.043 0.47 0.61 1, 2
Gasket Replacement New gaskets for hand lines, wheel lines, or portable mainline Worn gasket Unit IPC_Irrigation 5 16.03 $2.83 $3.75 $1.99 $1.00 $0.043 1.68 2.56 1
Drain
Replacement
New drains, hand lines, wheel
lines, or portable mainline
Worn drain Unit IPC_Irrigation 5 10.42 $1.84 $2.60 $4.36 $3.00 $0.043 0.53 0.96 1, 2
Hub Replacement New wheel line hubs Worn hubs Unit IPC_Irrigation 10 26.37 $13.09 $5.75 $41.49 $12.00 $0.043 1.00 0.47 1, 3, 4
New Goose Necks New goose neck with drop tube or boomback Worn gooseneck Outlet IPC_Irrigation 15 15.14 $11.30 $– $6.99 $1.00 $0.043 6.85 1.63 3, 4
Pipe Repair Cut and pipe press or weld repair of leaking hand lines, wheel lines, and portable mainline
Leaking pipe Joint IPC_Irrigation 8 46.09 $17.30 $11.92 $12.08 $8.00 $0.043 1.73 2.20 1, 4
Gasket
Replacement
New center pivot base
boot gasket
Worn gasket Unit IPC_Irrigation 8 1,924.56 $722.55 $– $391.29 $125.00 $0.043 3.48 1.68 1, 4
a Available measures in the Irrigation Efficiency Rewards Menu Incentive Option. For the Custom Incentive Option, projects are thoroughly reviewed by Idaho Power staff.b Average measure life. c Estimated peak demand reduction measured at the customer’s meter, excluding line losses.
d NPV of DSM avoided costs. Based on end use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act.
e Incremental participant cost prior to customer incentives.f Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.g UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
h TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 RTF. AgIrrigationHardware_v4_1.xlsm. 2019. Weighted average of Western Idaho (14.53%), Eastern Washington & Oregon (1.04%), and Eastern & Southern Idaho (84.34%).
2 Measure not cost-effective. Measure offering modified in 2022 with updated savings assumptions.3 RTF. AgIrrigationHardware_v3_3.xlsm. 2016. Weighted average. Measure not included in v4_1.4 Measure to be removed in 2022 based on updated RTF assumptions.
Year: 2021 Program: Irrigation Efficiency Rewards Market Segment: Irrigation Program Type: Energy Efficiency
Page 52 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Green Motors
Program Rewind: Motor size 15 HP
Green Motors Program
Rewind: Motor size 15 HP
Standard rewind
practice
Motor IPC_Irrigation 18 222.19 $191.32 – $132.16 $15.00 $0.043 7.79 1.49 1
Green Motors
Program Rewind: Motor size 20 HP
Green Motors Program
Rewind: Motor size 20 HP
Standard rewind
practice
Motor IPC_Irrigation 18 297.32 $256.02 – $147.44 $20.00 $0.043 7.81 1.76 1
Green Motors
Program Rewind: Motor size 25 HP
Green Motors Program
Rewind: Motor size 25 HP
Standard rewind
practice
Motor IPC_Irrigation 17 447.57 $369.23 – $168.45 $25.00 $0.043 8.34 2.16 1
Green Motors Program Rewind: Motor size 30 HP
Green Motors Program Rewind: Motor size 30 HP Standard rewind practice Motor IPC_Irrigation 17 482.11 $397.72 – $185.01 $30.00 $0.043 7.84 2.13 1
Green Motors Program Rewind: Motor size 40 HP
Green Motors Program Rewind: Motor size 40 HP Standard rewind practice Motor IPC_Irrigation 17 561.43 $463.16 – $226.09 $40.00 $0.043 7.22 2.04 1
Green Motors Program Rewind: Motor size 50 HP
Green Motors Program Rewind: Motor size 50 HP Standard rewind practice Motor IPC_Irrigation 17 604.21 $498.45 – $250.30 $50.00 $0.043 6.56 1.98 1
Green Motors Program Rewind: Motor size 60 HP
Green Motors Program Rewind: Motor size 60 HP Standard rewind practice Motor IPC_Irrigation 21 553.16 $530.32 – $295.19 $60.00 $0.043 6.33 1.83 1
Green Motors Program Rewind: Motor size 75 HP
Green Motors Program Rewind: Motor size 75 HP Standard rewind practice Motor IPC_Irrigation 21 569.29 $545.78 – $319.08 $75.00 $0.043 5.49 1.75 1
Green Motors Program Rewind: Motor size 100 HP
Green Motors Program Rewind: Motor size 100 HP Standard rewind practice Motor IPC_Irrigation 21 751.39 $720.36 – $395.82 $100.00 $0.043 5.44 1.85 1
Green Motors Program Rewind: Motor size 125 HP
Green Motors Program Rewind: Motor size 125 HP Standard rewind practice Motor IPC_Irrigation 23 555.70 $564.31 – $286.57 $125.00 $0.043 3.79 2.00 1
Green Motors Program Rewind:
Motor size 150 HP
Green Motors Program Rewind: Motor size 150 HP Standard rewind practice Motor IPC_Irrigation 23 660.58 $670.82 – $319.20 $150.00 $0.043 3.76 2.12 1
Green Motors Program Rewind:
Motor size 200 HP
Green Motors Program Rewind: Motor size 200 HP Standard rewind practice Motor IPC_Irrigation 23 876.20 $889.78 – $384.28 $200.00 $0.043 3.74 2.32 1
Green Motors Program Rewind:
Motor size 250 HP
Green Motors Program Rewind: Motor size 250 HP Standard rewind practice Motor IPC_Irrigation 19 1,357.04 $1,214.97 – $493.90 $250.00 $0.043 3.94 2.42 1
Green Motors Program Rewind:
Motor size 300 HP
Green Motors Program Rewind: Motor size 300 HP Standard rewind practice Motor IPC_Irrigation 19 1,620.02 $1,450.42 – $499.24 $300.00 $0.043 3.92 2.80 1
Green Motors Program Rewind:
Motor size 350 HP
Green Motors Program Rewind: Motor size 350 HP Standard rewind practice Motor IPC_Irrigation 19 1,888.64 $1,690.92 – $523.25 $350.00 $0.043 3.92 3.08 1
Year: 2021 Program: Irrigation Efficiency Rewards—Green Motors Market Segment: Irrigation Program Type: Energy Efficiency
Demand-Side Management 2021 Annual Report Page 53
Supplement 1: Cost-Effectiveness
Benefit Cost B/C Tests
Measure Name Measure Descriptions Replacing Measure Unit End Use Measure Life (yrs)a
Annual Gross Energy Savings (kWh/yr)b
NPV DSM Avoided Costsc NEB
Gross Incremental Participant Costd
Incentive/ Unit
Admin Cost ($/kWh)e UCT Ratiof TRC Ratiog
Source/Notes
Green Motors Program Rewind: Motor size 400 HP
Green Motors Program Rewind: Motor size 400 HP Standard rewind practice Motor IPC_Irrigation 19 2,141.43 $1,917.24 – $584.43 $400.00 $0.043 3.90 3.12 1
Green Motors Program Rewind: Motor size 450 HP
Green Motors Program Rewind: Motor size 450 HP Standard rewind practice Motor IPC_Irrigation 19 2,405.07 $2,153.28 – $638.83 $450.00 $0.043 3.89 3.19 1
Green Motors Program Rewind: Motor size 500 HP
Green Motors Program Rewind: Motor size 500 HP Standard rewind practice Motor IPC_Irrigation 19 2,676.03 $2,395.87 – $690.15 $500.00 $0.043 3.90 3.27 1
Green Motors Program Rewind: Motor size 600 HP
Green Motors Program Rewind: Motor size 600 HP Standard rewind practice Motor IPC_Irrigation 24 4,113.93 $4,285.46 – $1,363.20 $600.00 $0.043 5.52 3.06 1
Green Motors Program Rewind: Motor size 700 HP
Green Motors Program Rewind: Motor size 700 HP Standard rewind practice Motor IPC_Irrigation 24 4,779.22 $4,978.49 – $1,487.24 $700.00 $0.043 5.50 3.24 1
Green Motors Program Rewind: Motor size 800 HP
Green Motors Program Rewind: Motor size 800 HP Standard rewind practice Motor IPC_Irrigation 24 5,450.38 $5,677.64 – $1,650.14 $800.00 $0.043 5.49 3.31 1
Green Motors Program Rewind:
Motor size 900 HP
Green Motors Program Rewind: Motor size 900 HP Standard rewind practice Motor IPC_Irrigation 24 6,118.68 $6,373.80 – $1,819.20 $900.00 $0.043 5.48 3.37 1
Green Motors Program Rewind:
Motor size 1,500 HP
Green Motors Program Rewind: Motor size 1,500 HP Standard rewind practice Motor IPC_Irrigation 24 8,423.43 $8,774.65 – $2,682.83 $1,500.00 $0.043 3.77 2.75 1
a Average measure life.b Estimated kWh savings measured at the customer’s meter, excluding line losses.
c NPV of DSM avoided costs. Based on end use load shape, measure life, savings including line losses, and avoided costs by pricing period as acknowledged in the 2017 Integrated Resource Plan. TRC Test Benefit calculation includes 10% conservation adder from the Northwest Power Act
d Incremental participant cost prior to customer incentives.
e Average program administration and overhead costs to achieve each kWh of savings. Calculated from 2021 actuals.f UCT Ratio = (NPV DSM Avoided Costs) / ((Admin Cost/kWh * kWh Savings) + Incentives)
g TRC Ratio = ((NPV DSM Avoided Costs * 110%) + NEB) / ((Admin Cost/kWh * kWh Savings) + Incentives + (Incremental Participant Cost - Incentives))
1 RTF. Ind_and_Ag_GreenMotorRewind_v3_1.xlsm. 2017.
Page 54 Demand-Side Management 2021 Annual Report
Supplement 1: Cost-Effectiveness