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PACIFICORP
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UIILH rES COM.MfSSlIN
825 E. Multnomah
Portland, Oregon 97232
[phone]
RAClFIC POWER UTAH POWER
October 18, 2002
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83702-5983
Attn: Jean D. Jewell
Commission Secretary
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Re:Compact Fluorescent Light Bulb Program Application
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PacifiCorp (d.a. Utah Power & Light Company) hereby submits for filing an original and..B:ine
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conformed copies of the following application. The Company seeks an effective date of
November 19, 2002. An electronic version of this filing will also be provided to Jean Jewell'
attention.
Original Sheet No. 20 Schedule 20 Residential Energy Efficiency Program -
Compact Fluorescent Light Bulb Program
Overview
PacifiCorp proposes to initiate a Residential Energy Efficiency Rider, Schedule 20, to include a
compact fluorescent light bulb (CFL) program. This program will promote the use of compact
fluorescent light bulbs by providing two bulbs to each Company customer at no direct cost. The
offer will be available to all residential customers - approximately 44 000 households in the
Company s Idaho service territory. The bulbs used in this program will be Energy Star certified
and will carry the Energy Star label.
Program Design
All residential PacifiCorp customers in Idaho will receive two compact fluorescent bulbs in a
package sent directly to their mailing address. The package will include written information on
the benefits of the bulbs, suggestions as to the most energy efficient use of compact fluorescent
bulbs, the importance of shopping for Energy Star certified bulbs and details on their two-year
warranty.
Idaho Public Utilities Commission
October 18, 2002
Page 2
Summary
A cost effectiveness analysis was performed assuming 44 000 participants and $456 000 total
program costs. The expected savings and installation rates utilized in the analysis are included in
Attachment A of the Application.
The company views this offering as a means to educate customers as to the benefits of compact
fluorescent bulbs and will further the acceptance ofthese bulbs in the market place.
It is respectfully requested that all formal correspondence and staff requests regarding this filing
be addressed to:
Bye-mail (preferred)to:datarequest~pacifi corp. com
By regular mail to:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 800
Portland, Oregon, 97232
By fax to:[phone]
Any informal questions concerning this filing should be directed to Bob Lively, at (801) 220-
4052.
Sincerely,
j)d~
Doug LaJ;on
Vice President
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Enclosures
Mary S. Hobson (ISB # 2142)
STOEL RIVES LLP
101 S. Capitol Blvd., Suite 1900
Boise, Idaho 83702-5958
Telephone: [phone]
Facsimile: [phone]
RECEIVED mFILED 0
26U2QCT 18
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or.iOt\HO PUBLIC
JUrIES COMH1SSI€JH
John M. Eriksson (Utah Bar #4827)
STOEL RIVES LLP
201 South Main Street, #1100
Salt Lake City, Utah 84111-4904
Telephone: [phone]
Facsimile: [phone]
Attorneys for PacifiCorp
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application ofPacifiCorp APPLICATION OF PACIFICORP
for Approval of Idaho Compact Fluorescent
Light Bulb Program and for Approval of Deferred Accounting Treatment Case No. PAC'
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Pursuant to Idaho Code ~61-524 and Idaho Public Utilities Commission Rule of
Procedure 52, LD.A. 31.01.01.052, PacifiCorp, doing business as Utah Power &
Light Company ("PacifiCorp" or "the Company ) applies to the Idaho Public Utilities
Commission (Commission) for approval of a new tariff offering energy conserving light
bulbs to Idaho residential customers. PacifiCorp also seeks an accounting order allowing
deferral of the costs of said program including carrying charges. In support of this
Application, PacifiCorp states as follows:
PacifiCorp is an electrical corporation and public utility in the state of Idaho and
is subject to the jurisdiction of the Commission with regard to its public utility
operations. PacifiCorp also provides retail electricity service in the states of California
Oregon, Utah, Washington and Wyoming.
APPLICATION OF P ACIFICORP -
Boise-148204.100002-0001
Page 1
This Application is filed pursuant to Idaho Code ~61-524, which authorizes the
Commission to prescribe the accounting to be used by public utilities subject to its
jurisdiction.
Communications regarding this Application should be addressed to:
Robert Lively
PacifiCorp
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Mary S. Hobson
STOEL RIVES LLP
101 S. Capitol Blvd., Suite 1900
Boise, Idaho 83702-5958
Telephone: [phone]
Facsimile: [phone]
Please send data requests regarding this matter to:
By E-mail (preferred):datarequest~pacificorp. com
By facsimile:[phone]
By mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 800
Portland, OR 97232
Attached to this Application as Exhibit A is PacifiCorp s proposed new Tariff
Schedule 20, Residential Energy Efficiency Program - Compact Fluorescent Light Bulb
Program, with a proposed effective date of November 19, 2002.
With this proposed tariffPacifiCorp seeks to introduce a compact fluorescent
light bulb (CFL) offering to its Idaho residential customers. The proposed CFL program
would provide two CFLs, at no direct cost, to the approximately 44 000 residential
customers in Idaho. The bulbs would be mailed directly to customers in packages that
APPLICATION OF PACIFICORP-
Boise-148204.1 00002-0001
Page 2
include the bulbs, information on the benefits of CFLs and advice on the most energy
efficient use ofthe bulbs. An order form for the purchase of additional CFLs from
Energy Technology Laboratories (ETL), the firm that provides fulfillment services for the
program will also be included. All bulbs carry a two-year warranty through ETL, are
Energy Star certified and carry the Energy Star label. Energy Star is a certification
process sponsored by the U.S. Department of Energy. Products meeting Energy Star
requirements are built beyond energy efficiency codes and standards.
Customers will benefit from the proposed program by experiencing the positive
qualities of CFLs, including reduced energy usage and extended bulb lives. The two-year
warranty will allow for any defective bulbs to be replaced easily. PacifiCorp is hopeful
that the program will trigger customers ' interest in energy efficient products and
appliances.
The proposed CFL program is estimated to save 5 720 000 kWhs annually; fifty
per cent of which will occur during peak load periods. The cost effectiveness of the
program is addressed in Attachment A, Idaho Compact Fluorescent Cost and Savings
Analysis. PacifiCorp intends to complete distribution of the bulbs by January 1 2003.
The CFL program is consistent with PacifiCorp s Integrated Resource Plan as
reflected in the Company s RAMPP-6 Report, and specifically with Chapter 4 dealing
with its Demand Side Management (DSM) planning. The CFL program is one of several
measures planned to help the Company achieve its DSM target for fiscal year 2003.
Similar CFL programs have been successfully offered by the Company to
residential customers in Oregon, Utah and Washington. Results from these programs
indicate that customers are satisfied with the offering. Evaluations have shown that the
APPLICATION OF P ACIFICORP -
Boise-148204.100002-0001
Page 3
program savings have out-performed initial estimates. This Idaho program will have the
advantage of re-using many materials developed for the prior CFL programs, allowing
for significant cost reductions.
10.PacifiCorp estimates that the project will cost $456 000., including the costs of
the CFLs, shipping and handling, and customer education. PacifiCorp proposes to defer
in accordance with this requested authorization, the costs of this program until a future
rate proceeding.
11.Deferred accounting treatment is requested including accrued carrying charges at
a rate equal to the weighted average cost of capital most recently recommended by
Commission Staff in its audit ofPacifiCorp s Results of Operations. This treatment is an
appropriate, just and reasonable means of providing the Company an opportunity to seek
recovery of its DSM program costs. PacifiCorp does not request a determination of
ratemaking treatment of the program costs and related carrying charges at this time. Such
determination will be made in a future rate proceeding.
12.In accordance with Idaho Code ~ 61-307, copies of this Application are available
for public inspection at the Company s offices in Rexburg, Preston, Shelley and
Montpelier, Idaho.
WHEREFORE, PacifiCorp respectfully requests that the Commission consider
this matter under modified procedure and enter its Order approving the proposed new
Tariff
APPLICATION OF P ACIFICORP -
Boise-148204.100002-0001
Page 4
Schedule 20 and authorizing the deferral of the Company s program costs as
requested herein.
DATED this 18th day of October, 2002.
STOEL RIVES LLP
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John M. Eriksson
Attorneys for Defendant PacifiCorp
APPLICATION OF P ACIFICORP -
Boise-148204.100002-0001
Page 5
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HIJYM
c. No. 28 Original Sheet No. 20
UTAH POWER & LIGHT COMPANY
(N)
ELECTRIC SERVICE SCHEDULE NO.
STATE OF IDAHO
Residential Energy Efficiency Program
Compact Fluorescent Lightbulb Program
PURPOSE
Service under this tariff is intended to maXImIze the efficient utilization of the electricity
requirements of existing residential dwellings through the use of compact fluorescent bulbs, and to
influence their future light bulb buying decisions.
APPLICABLE:
To existing residential customers in all territory served by the Company in the state of Idaho. This
tariff will expire June 30, 2003.
DESCRIPTION:
Service under this program is available to improve the energy efficiency of applicable residential
dwellings. The Company will provide, at no direct cost to the Customer, two compact fluorescent bulbs.
The compact fluorescent bulbs will be shipped directly to Customers.
VERIFICATION
All equipment provided under this program is intended to be installed in the Company s service
territory.
RULES AND REGULATIONS
Service under this Schedule is subj ect to the General Rules and Regulations contained in the tariff
of which this Schedule is a part, and to those prescribed by regulatory authorities.
(N)
ISSUED: October 18 , 2002 EFFECTIVE: November 19 2002
ulahnlJB
C. No. 28
Eleventh Revised Sheet No. B.
Cancels Tenth Revised Sheet No. B.
Schedule
No.
UTAH POWER & LIGHT COMPANY
ELECTRIC SERVICE SCHEDULES
STATE OF IDAHO
Class of Service
Sheet
No.
1.1 & 1.2
1 - 6.3
6A.1 - 6AA
1 - 704
7A.1 - 7A.
1 & 8.
1 & 9.
10.1 - lOA
11.1 - 11.3
12.1 - 12.
17.1 - 17.3
19.1 - 19.
(N)
21.1 - 21.5
Residential Service
General Service - Large Power
General Service - Large Power (Residential and Farm)
Security Area Lighting
Security Area Lighting (Residential and Farm)
General Service - Medium Voltage
General Service - High Voltage
lITigation and Soil Drainage Pumping Power Service
Street Lighting - Company-Owned Overhead System
Street Lighting - Customer-Owned System
Temporary Service Connection Facilities
Standby Service
Commercial and Industrial Space Heating
Residential Energy Efficiency Program - Compact
Fluorescent Lightbulb Program
Residential Energy Efficiency Rider
(Continued)
ISSUED: October 18, 2002 EFFECTIVE: November 19, 2002
BlahRLUr
C. No. 28 Original Sheet No. 20
VT AH POWER & LIGHT COMPANY
(N)
ELECTRIC SERVICE SCHEDULE NO.
STATE OF IDAHO
Residential Energy Efficiency Program
Compact Fluorescent Lightbulb Program
PURPOSE:
Service under this tariff is intended to maximize the efficient utilization of the electricity
requirements of existing residential dwellings through the use of compact fluorescent bulbs, and to
influence their future light bulb buying decisions.
APPLICABLE
To existing residential customers in all territory served by the Company in the state of Idaho. This
tariff will expire January 31 2003.
DESCRIPTION:
Service under this program is available to improve the energy efficiency of applicable residential
dwellings. The Company will provide, at no direct cost to the Customer, two compact fluorescent bulbs.
The compact fluorescent bulbs will be shipped directly to Customers.
VERIFICATION
All equipment provided under this program is intended to be installed in the Company s service
territory.
RULES AND REGULATIONS
Service under this Schedule is subject to the General Rules and Regulations contained in the tariff
of which this Schedule is a part, and to those prescribed by regulatory authorities.
(N)
ISSUED: October 18, 2002 EFFECTIVE: November 19, 2002
Attachment A
Page 1 of 3
To:Rebecca Eberle
From:M. Sami Khawaja
Re:Idaho Compact Fluorescent Cost and Savings Analysis
Date:October 8, 2002
Table 1 summarizes the assumptions used in conduc.ting the cost and savings analysis for
the proposed Idaho Compact Fluorescent Lightbulb (CFL) Program. PacifiCorp provided
the figures for the program budget and participation. The assumptions used for the
analysis are provided in Table 1.
Table 1
Pro ram Assum tions
Costs
Lightbulbs (88,000 bulbs)
Marketing/Education
Program Management
Evaluation
Total
$434 000
000
$5,000
$10,000
$456 000
First Year kWh Savings
Discount Rate
Measure Life
Retail Rate
091
063
Costs and Savings Assumptions
The program distributes two CFLs to each customer in the Idaho service territory. The
cost per two bulb package of CFLs is $9.86. We used an average CFL savings of 65 kWh
per bulb per year based on an average of two recent studies: "Measure Incentives and
Cost-Effectiveness for the California Residential Contractor Program " Robert Mowris &
Associates, September 15, 1999; and "Process and Impact Evaluation of New England
Power Service Company s Appliance Management Program " July 1 , 1999, Research
Into Action and Quantec. These estimates are also in line with the Northwest Energy
Efficiency Alliance assumptions. Two recent studies conducted for the Company by
Quantec in Oregon and Washington found average savings of approximately 82 kWh.
Results
The cost-effectiveness of the CFLs was calculated using Quantec s DICE (Demand
Impact and Cost Effectiveness) model. The model takes the first year kWh savings and
Rebecca Eberle
October 8, 2002
Page 2
Attachment A
Page 2 of 3
allocates it over all the 8 760 hours in a year based on load shapes appropriate for each of
the end-uses. The achieved hourly kWh savings are then multiplied by the appropriate
avoided cost based on the time of day and season during which they occur (summer peak
summer off-peak, winter peak, etc.). The value of the savings is calculated for each year
of the measure life and then discounted back to the present.
Avoided costs are based on both a low and high set ofPacifiCorp s August 2002 Palo
Verde and Mid-Columbia forward price curves.
The proposed program is cost effective under both sets of forward price assumptions.
Table 2a
50% Palo Verde/50% Mid Columbia
Low Scenario
TRC 11.455,840 098 991
UTC 11.455,840 999 083
RIM 446,719 999,083
PART 990,879
Detailed Results
Benefits TRC TRC UTC PART
Avoided Costs 098,991 098 991 999,083 990 879
Bill Reduction
Non-Energy Benefits
Gas Savings
BETC
Tax Savings
Total Benefits 098 991 098 991 999,083 990,879
Costs TRC TRC UTC PART
Other Parties' contribution
Energy Service Charge
Deferred Cost
Other Deferred
Expenses 455.840 455,840 455,840
Lost Revenues
Total Costs 455,840 455,840 455 840
Rebecca Eberle
October 8, 2002
Page 3
Attachment A
Page 3 of 3
Table 2b
50% Palo Verde/50% Mid Columbia
High Scenario
Detailed Results
Benefits TRC TRC UTC PART
Avoided Costs 098 991 669 895 518 086 990 879Bill Reduction
Non-Energy Benefits
Gas Savings
BETC
Tax Savings
Total Benefits 098 991 669,895 518 086 990 879
Costs TRC TRC UTC PART
Other Parties' contribution
Energy Service Charge
Deferred Cost
Other Deferred
Expenses 455 840 455 840 455 840
Lost Revenues
Total Costs 455 840 455 840 455 840