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HomeMy WebLinkAbout20220802Comments.pdf'i-.'i .' - !-j,-i -. -! ii --L. ."., .,.,:; *., V,' 2:29 JAYME B. SULLTVAN BOISE CITY ATTORNEY Ed Jewell ISB No. 10446 Deputy City Attomey BOISE CITY ATTORNEY'S OFFICE 150 N. Capitol Blvd. P.O. Box 500 Boise,ID 83701-0500 Telephone: (208) 608-7950S Facsimile: (208) 384-4454 Email: BoiseCitvAttorney@citvofboise.org ej ewel I @ ciwo fboi se. ore Attorney for Intervenor -,*-iLr;. BEFORE THE IDAIIO PUBLIC UTILITIES COMMISSION Case No. IPC-E-22-08IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR A DETERMINATION OF 2O2T DEMAND-SIDE MANAGEMENT EXPENSES AS PRUDENTLY INCURRED CITY OF BOISE CITYIS FORMAL COMMENTS The city of Boise City ("Boise City") submits these formal comments on the application submitted by Idaho Power Company ("Company") for a prudency determination of its 2021 demand-side management expenses. Boise City, pursuant to Rule 203 of the Commission's Rules of Procedure, IDAPA 31.01.01.203, and pursuant to the Notice of Modified Procedure, OrderNo. 35404, issued on May 13,2022, hereby submits its formal written comments and states as follows: 1. Boise City commends Idaho Power Company ("Company") on their 2021 demand- side management programs ("DSM"), achieving more than 140,000 MWh of energy savings and 312 MW of non-coincident load reduction from demand response. Boise City recommends the Commission find the Company's 2021 DSM expenses prudently incurred and supports the CITY OF BOISE CITY'S FORMAL COMMENTS - I Commission's continued direction to ensure the Company pursues all cost-effective energy efficiency and demand response measures across customer classes. 2. Boise City notes testimony concerning the negative ending balance of the Idaho Energy Efficiency Rider on December 31, 2021. Goralski, Di Testimony at 19. The continued negative balance year-over-year should be carefully considered by the Company and the Commission to ensure all cost-effective energy efficiency opportunities are able to be pursued. Boise City supports efforts to resolve the ongoing negative rider balance, including increasing the existing Idaho Energy Efficiency Rider percentage authorized in Commission Order No. 34871. 3. Boise City recommends the Company, in collaboration with the Energy Efficiency Advisory Group ("EEAG"), work to specifically implement strategies to increase participation and ensrue the benefits of energy efficiency reach residential customers. As noted in Boise City's comments on the Company's 2020 DSM expenses, COVID-l9 energy effrciency program suspensions disproportionately impacted residential customers. The City of Boise looks forward to seeing the impact of Energy House Calls, Home Energy Audits, Multifamily Energy Savings, and Weatherizationprograms operating at full capacity lri.2022. While continued disruptions due to COMD-I9 and associated supply chain constraints are outside of the Company's control, these impacts, coupled witha4D%o decrease inMWhs savedbyresidential customers from2020to2021, necessitate additional effort by the Company and the EEAG to modify existing programs or implement new measures to ensure energy savings from the residential sector are capfured. Boise City is also concerned with the reduction in the overall share of customers participating in energy efficiency programs from 45Yo n 2020 to 35% n 2021,. While Boise City recognizes the Company's success maintaining an overall cost-effective energy efficiency portfolio in a challenging environment, there is opportunity to achieve increased savings going forward if the CITY OF BOISE CITY'S FORMAL COMMENTS - 2 waitlists and backlog of demand for suspended residential programs can be efficiently met alongside the development of innovative new offerings. 4. [n reviewing individual energy efficiency programs implemented by the Company in202l, Boise City offers the following comments: a. Boise City strongly supports the Company's efforts to design the new retail lighting buy-down program, specifically working to ensure customers shopping at neighborhood dollar stores and other markets currently unreached by the market transfomration in LED lighting can purchase the most efficient lighting at affordable prices. Boise City recommends the Company use this as a model to continue to develop programs or specific, targeted outreach that addresses unique market gaps and access to energy-efficient products and appliances. b. Boise City recognizes the challenges and continued efforts by the Company to design a cost-effective residential new construction incentive that is attractive and accessible to home builders. While the UCT increase in 2021 is encouraging, the decreased participation from 248 participants in 2020 to 90 n 2021 is concerning. Boise City views this as a critically important program to ensure the rapid growth in new construction across the Company's service area is as efficient as possible. Boise City notes the impact evaluation planned for 2023 andrecommends the Company consider expanding the planned evaluation to include elements of a process evaluation, specifically customer satisfaction and review of similar program best practices. Boise City continues to support the Company's implementation and development of this pilot program and looks forward to supporting future marketing efforts. CITY OF BOISE CITY'S FORMAL COMMENTS - 3 c. The most recent Energy Efficiency Potential Study identified behavior change programs, like the Company's Home Energy Reports, as having the highest potential energy savings in the residential sector. Boise City recommends the Company work to expand the Home Energy Reports program to reach at least 2020 participation levels or higher where practicable. Home Energy Reports, like the Home Energy Audit program, present a beneficial opportunity to educate customers on energy efficiency and encourage future program participation. d. Boise City appreciates the Company thoughtfully engaging the EEAG in development of the updated energy efficiency educational distribution welcome kits. The increased cost-effectiveness of the educational distribution kits, increasing to 2.39 from 1.45 in 2020, and broad reach to more than 45,000 customers should be built onn2022. 5. While the Commission is asked to evaluate the prudency of 2021 DSM expenses, Boise City recognizes this proceeding as an important opportunity to engage the Commission, Company, and other interested stakeholders on the future of the Company's energy efficiency and demand response offerings. Boise City is encouraged by, and looks forward to, engaging with the EEAG on the program activities identified for 2022 and beyond. See Demand Side Management 2021 Annual Report at 17. Specifically, Boise City recommends the Company pursue the development of a multi-family new construction incentive to fuither transform the new construction market. Boise City also supports the development of the online marketplace, recognizing point of sale rebates and negotiated buy-downs can decrease up-front capital expenses for customers and improve access to energy-effrcient products for households with low and CITY OF BOISE CITY'S FORMAL COMMENTS - 4 moderate incomes. In addition to the new activities identified by the Company, Boise City recommends the Company evaluate the potential demand response opportunity presented by the increasing adoption of electric vehicles. While the existing time of use rate may effectively encourage some customers to avoid on-peak charging, a specific demand response incentive could help ensure electrification of vehicles produces grid benefits in addition to customer savings and emissions reductions. Lastly, while not a new program or measure, Boise City encourages the Company to consider evaluating opportunities, targeting outreach, and presenting achieved savings at a more local level. Integrating a more granular level of detail into energy efficiency reporting could support distribution system planning and provide greater insight into local demand use patterns, offering interesting insights for program implementation and development. 6. In summary, Boise City recommends the Commission find the Company's 2021 DSM program expenses prudently incurred and continues to support the Company's efforts to implement cost-effective DSM programs that respond to changing market dynamics, supply chain and workforce constraints, and ongoing impacts from COVID-19. DATED this 2nd day of August2022. ry&r*tt Ba ie*eil Deputy City Attorney CITY OF BOISE CITY'S FORMAL COMMENTS - 5 CERTIFICATE OF SERVICE I hereby certify that I have on this 2nd day ofAugust 2022, served the foregoing documents on all parties of counsel as follows: JanNoriyuki Commission Secretary 11331 W. Chinden Blvd., Bldg No. 8 suite 201-4 (83714) PO Box 83720 Boise, ID 83720-0074 i an. noriyuki @nuc. idaho. eov RileyNewton Deputy Attomey General Idaho Public Utilities Commission I l33l W. Chinden Blvd., Bldg No. 8 Suite 201-A (83714) PO Box 83720 Boise, D 83720-0074 riley.newton@puc.idaho. eov Lisa Nordstrom Idaho Power Company PO Box 70 Boise,ID 83707 lnordstrom@ idahopower. com dockets@ idahopower.com Connie Aschenbrenner Zack Thompson Idaho Power Company PO Box 70 Boise,ID 83707 caschenbrenner@ idahopower. com zthompson@ idahopower.com tr U.S. Mailtr Personal Deliverytr Facsimileg Electronic Means w/ Consenttr Other: tr U.S. Mailtr Personal Deliverytr FacsimileA Electronic Means w/ Consenttr Other: tr U.S. Mailtr Personal Deliverytr Facsimileg Electronic Means w/ ConsentEI Other: tr U.S. MailO Personal Deliverytr FacsimileV Electronic Means w/ Consenttr Other: Michelle Steel, Paralegal, City of Boise CTTY OF BOISE CITY'S FORMAL COMMENTS - 6