HomeMy WebLinkAbout20021030Decision Memo.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
BILL EASTLAKE
LYNN ANDERSON
DON HOWELL
RANDY LOBB
DAVE SCHUNKE
BEV BARKER
TONYA CLARK
GENE FADNESS
WORKING FILE
FROM:
DATE: OCTOBER 30, 2002
RE: CASE NO. PAC-E-02-7 (PacifiCorp)
IDAHO COMPACT FLUORESCENT LIGHT BULB PROGRAM
REQUEST FOR APPROVAL OF TARIFF AND DEFERRED ACCOUNTING TREATMENT
On October 18, 2002, PacifiCorp dba Utah Power & Light Company (PacifiCorp; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a proposed new tariff Schedule 20, Residential Energy Efficiency Program—Compact Fluorescent Light (CFL) Bulb Program.
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 include the bulbs, information on the benefits of CFLs and advice on the most energy efficient use of the bulbs. All bulbs carry a two-year warranty through Energy Technology Laboratories (ETL), are Energy Star certified and carry the Energy Star label. Energy Star is a certification process sponsored by the US Department of Energy. Products meeting Energy Star requirements are built beyond energy efficiency codes and standards.
PacifiCorp contends that customers will benefit from the proposed program by experiencing the positive qualities of CFLs, including reduced energy usage and extended bulb lives. PacifiCorp is hopeful that the program will trigger customer interest in energy efficient products and appliances.
PacifiCorp contends that its proposed CFL program is consistent with its Integrated Resource Plan as reflected in the Company’s RAMPP 6 report and is one of several measures planned to help the Company achieve its demand side management (DSM) target for fiscal year 2003. The Company maintains that similar CFL programs have been successfully offered to residential customers in Oregon, Utah and Washington. Program savings in those states have out performed initial estimates.
PacifiCorp estimates that the proposed CFL program will save 5,720,000 kilowatt hours annually—50% of which will occur during peak load periods. PacifiCorp intends to complete distribution of the bulbs by January 1, 2003. PacifiCorp estimates that the program will cost $456,000 including the costs of the CFLs, shipping and handling, and customer education. PacifiCorp proposes to defer the costs of this program until a future rate proceeding.
Deferred accounting treatment is requested including accrued carrying charges at a rate equal to the weighted average cost of capital recommended by Commission Staff in its most recent audit of PacifiCorp’s results of operations. This treatment, the Company contends, is an appropriate, just and reasonable means of providing the Company an opportunity to seek recovery of its DSM program costs. PacifiCorp is not requesting a determination of ratemaking treatment of the program costs and related carrying charges at this time. Such a determination, it states, will be made in a future rate proceeding.
In accordance with Idaho Code § 61-307, the Company contends that copies of its Application are available for public inspection at the Company’s offices in Rexburg, Preston, Shelley and Montpelier, Idaho. PacifiCorp requests that its Application be processed under Modified Procedure and requests that the tariff be approved for effective date of November 19, 2002.
Commission Decision
Staff recommends that the Company’s Application be processed pursuant to Modified Procedure (i.e., by written submission rather than by hearing) and that the proposed effective date (Nov 19) be suspended to allow for a standard 21-day comment period. Reference IDAPA 31.01.01.202.02. The Company has been apprised of Staff’s recommended procedure and acquiesces. Does the Commission agree with Staff’s proposed procedure?
Vld/M:PACE0207_sw
DECISION MEMORANDUM 3