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HomeMy WebLinkAbout20120430Annual DSM 2011 Report.pdf Rocky Mountain Power 2011 Energy Efficiency and Peak Reduction Annual Report – Idaho Submitted April 30, 2012 2 Table of Contents Introduction and Executive Summary ............................................................................................ 4  2011 Performance and Activity ...................................................................................................... 6  Company Filings with the Idaho Public Utilities Commission .................................................... 10  Outreach and Communications ..................................................................................................... 12  Peak Reduction Program and Activity .......................................................................................... 14  Energy Efficiency Programs and Activity .................................................................................... 17  Residential Energy Efficiency Programs and Activity ................................................................. 19  Non-Residential Energy Efficiency Programs and Activity ......................................................... 28  Summary of 2011 Results ............................................................................................................. 34  Balancing Account Summary ....................................................................................................... 36  Cost Effectiveness ......................................................................................................................... 37  Appendices:................................................................................................................................... 39  3 Table of Tables Table 1: Total Portfolio Performance ............................................................................................ 4  Table 2: Energy Efficiency and Peak Reduction Annual Results .................................................. 6  Table 3: Program Evaluation Timeline .......................................................................................... 9  Table 4: Load Management Portfolio Performance ..................................................................... 14  Table 5: Irrigation Load Control Program Performance .............................................................. 15  Table 6: Energy Efficiency Portfolio Performance ..................................................................... 17  Table 7: Commercial & Industrial Energy Efficiency Portfolio .................................................. 18  Table 8: Residential Energy Efficiency Portfolio ........................................................................ 18  Table 9: Home Energy Savings Program Performance ............................................................... 19  Table 10: Home Energy Savings Measure Performance ............................................................. 20  Table 11: See ya later, refrigerator® Program Performance ....................................................... 22  Table 12: See ya later, refrigerator® Results ............................................................................... 22  Table 13: Low Income Weatherization Performance .................................................................. 25  Table 14: Conservation Education ............................................................................................... 27  Table 15: Energy FinAnswer Program ........................................................................................ 28  Table 16: Energy FinAnswer by Measure Type .......................................................................... 28  Table 17: FinAnswer Express Program ....................................................................................... 30  Table 18: FinAnswer Express by Measure Type ......................................................................... 30  Table 19: Agricultural Energy Services Program ........................................................................ 32  Table 20: Agricultural Energy Savers by Measure ...................................................................... 33  Table 21: Revenues (Schedule 191) by Customer Type .............................................................. 34  Table 22: Expenditures (Schedule 191) by Customer Type ........................................................ 34  Table 23: Energy Efficiency kWh Saved by Customer Type ...................................................... 35  Table 24: Balancing Account Activity (Schedule 191) ............................................................... 36  4 Introduction and Executive Summary Rocky Mountain Power (the “Company”) working in partnership with its retail customers and with the approval of the Idaho Public Utilities Commission (the “IPUC”), acquires energy efficiency and peak reduction resources as cost-effective alternatives to the acquisition of supply- side resources. These resources assist the Company in efficiently addressing load growth and contribute to the Company’s ability to meet system peak requirements. Company energy efficiency and peak reduction programs provide participating Idaho customers with tools that enable them to reduce or assist in the management of their energy usage, while reducing the overall costs to Rocky Mountain Power’s customers. These resources are a valuable component of Rocky Mountain Power’s resource portfolio and are relied upon in resource planning as a least cost alternative to supply–side resources. Rocky Mountain Power currently offers seven energy efficiency and peak reduction programs in Idaho. In 2011, costs associated with these programs were recovered through the Customer Efficiency Services Rate Adjustment (Schedule 191), with the exception of the expenses associated with the irrigation load control program1. The results of Rocky Mountain Power’s Idaho energy efficiency and peak reduction programs for the reporting period of January 1, 2011 through December 31, 2011 are summarized in Table 1 below. Table 1: Total Portfolio Performance2 System Benefit Revenues Collected 5,356,975$ System Benefit Expenditures (excludes Irrigation) 2,574,217$ Total Expenditures including Irrigation 11,898,261$ MW of Participaton Load (Gross at Generation) 281.4 kWh/Yr Savings (Gross at Generation) 9,660,007 kWh/Yr Savings (at Site) 8,821,524 PTRC TRC UCT RIM PCT Portfolio Cost Effectiveness 4.354 3.958 2.228 1.733 4.870 Levelized Cost ($/kWh) NA NA NA Lifecycle Revenue Impact ($/kWh) (Note: See notes for Table 2 for explanation of Gross Savings and line loss assumptions) Overall first year energy savings for 2011 achieved through energy efficiency programs, decreased approximately 26 percent while Customer Efficiency Services expenditures decreased 27 percent. 1 The Idaho Public Utilities Commission, in Case No. PAC-E-10-07, ordered that the costs associated with the Idaho Irrigation Load Control Program should be allocated as system costs and not situs to Idaho. 2 Savings and expenditures from school projects completed under the Idaho Office of Energy Resources Energy Efficiency Incentives Agreement were removed from the PTRC, TRC and PCT cost effectiveness calculations and results. See Appendix 1. 5 At the end of 2011, the Customer Efficiency Services balancing account had an unfunded balance of $1,564,182. Rocky Mountain Power’s energy efficiency and peak reduction portfolio level performance for 2011 was cost effective across all five cost effectiveness tests. 6 2011 Performance and Activity Program and Sector level results for 2011 are provided on the following table3. Program Schedules are noted in parenthesis in the table. Table 2: Energy Efficiency and Peak Reduction Annual Results Program Units kWh/Yr Savings (at site) kWh/Yr Savings (at generator) Program Expenditures Low Income Weatherization (21)100 228,605 251,363 253,809$ Low Income Education Program (21)168 22,848 25,123 42,500$ Refrigerator Recycling (117)710 943,176 1,037,069 107,033$ Home Energy Savings (118)7,978 2,544,602 2,797,917 613,890$ Total Residential 8,956 3,739,231 4,111,472 1,017,233$ Energy FinAnswer (125)1 9,727 10,634 18,303$ FinAnswer Express (115)70 2,219,662 2,426,668 632,813$ Total Commercial 71 2,229,389 2,437,302 651,116$ Energy FinAnswer (125)13 478,200 521,501 136,064$ FinAnswer Express (115)2 14,311 15,607 67,910$ Agricultural Energy Services (155)7,978 2,360,393 2,574,126 490,980$ Total Industrial 7,993 2,852,904 3,111,234 694,954$ Total Energy Efficiency 8,821,524 9,660,008 2,363,302 Energy Efficiency Evaluation Costs 210,915$ Total System benefit Expenditures - All Programs 2,574,217$ Irrigation Load Control Expenditures (Schedule 72 and 72A) 9,324,044$ Total Idaho Program Expenditures 11,898,261$ 3 Savings values in this table are shown prior to any net-to-gross adjustment. The values at generation include line losses between the customer site and the generation source. The Company’s line losses by sector are 9.96 percent for residential, 9.33 percent for commercial and 9.06 percent for industrial. These values are based on the Company’s 2007 Transmission and Distribution Loss Study by Management Applications Consulting published in October 2008. 7 Major Trends and Activities In 2011, the Company’s energy efficiency program performance decreased across all customer sectors on a kWh/year basis compared to 2010 results. Residential savings decreased by 16 percent, commercial by 35 percent, and industrial by 30 percent (including agricultural sector), respectively. Expenditures related to energy efficiency program delivery decreased in 2011 as compared to 2010 by 27 percent. At a sector level, the residential sector expenditures decreased by 37 percent and commercial and industrial sectors decreased by 17 percent. Results of the irrigation load control program reflect program changes agreed to in a stipulation between the Company, Idaho Irrigation Pumper Association and the Idaho Public Utilities Commission Staff, approved by Commission Order 32235 on April 27, 2011. The order froze program participation to existing participants and the participants were required to either reduce participating loads by 18 percent or accept an 18 percent reduction in the incentive value. Of the 283 megawatts of connected load in 2010, 258 megawatts participated during the 2011 control season (as measured at the customer meter). Cost Effectiveness Consistent with the requirements outlined in the Memorandum of Understanding signed by the Company and Idaho Commission Staff, the Company provides cost effectiveness results utilizing five cost effectiveness tests: 1. PacifiCorp Total Resource Cost Test (PTRC) 2. Total Resource Cost Test (TRC) 3. Utility Cost Test (UCT) 4. Ratepayer Impact Test (RIM) 5. Participant Cost Test (PCT) The PTRC (also referred to as the TRC + Conservation Adder) is a variation of the TRC test. It includes a 10 percent benefit adder to account for non-quantified benefits of conservation resources over supply-side alternatives. This is consistent with Northwest Power Planning and Conservation Act. The TRC compares the total cost of a supply side resource to the total cost of an energy efficiency program resource, including costs paid by the customer in excess of the program incentives provided. This test is used to determine if an energy efficiency program is cost effective from a total cost perspective. The UCT, also referred to as the Program Administrator Test, compares the portion of the resource costs paid directly by the Company. This test is useful in determining the cost effectiveness of the resource from the Company’s perspective; however it does not account for the portion of the cost that is borne directly by customers. 8 The RIM test determines the impact an energy efficiency program has on rates. The ultimate objective of an energy efficiency program is to encourage customers to use less energy, thereby reducing energy sales. The RIM test accounts for the cost of lost revenues to the utility associated with kWh sales reductions. The net impact of these reductions can put near-term upward pressure on rates even when total costs are lower with a successful energy efficiency program than with a supply-side alternative. One challenge with the RIM test however is that its more sensitive than the other tests to differences between long-term projections of marginal costs and long-term projections of rates, two cost streams that are difficult to quantify with certainty. The PCT test compares the portion of the resource cost paid directly by participants to the savings realized by the participant. For the PCT test, bill savings are the realized benefit of energy efficiency rather than the avoided supply-side costs. The results for each test are provided at several levels: 1. Overall portfolio level, consolidation of all Company delivered programs 2. Load control and energy efficiency program portfolios separately 3. Residential and non-residential energy efficiency program portfolios separately 4. At the individual program level Results of the cost effectiveness tests are included in the summary overview for each program. Further details including key inputs and assumptions for each of the cost effectiveness tests are provided in the cost effectiveness section of this report. 9 Program Evaluation Rocky Mountain Power’s Program Evaluation Timeline (Table 3 below) provides a summary of the scheduled completion of program evaluations. Table 3: Program Evaluation Timeline Program Evaluation Type Status Anticipated Year Complete Program Year(s) Evaluated Evaluator Low Income Weatherization Process and Impact Complete 2011 2007-2009 Cadmus Home Energy Savings Process and Impact In Process Q1 2012 2009-2010 Cadmus See ya later, refrigerator® Process and Impact In Process Q1 2012 2009-2010 Cadmus Energy FinAnswer Process and Impact In Process 2012 2009-2011 Navigant FinAnswer Express Process and Impact In Process 2012 2009-2011 Navigant Irrigation Energy Savers Process and Impact In Process 2012 2009-2011 Navigant As noted in Table 3, the Company completed a third-party independent process and impact evaluation for low income weatherization for program years 2007 – 2009. Findings from these evaluations will be key inputs to ongoing program design considerations as well as inputs to future cost effectiveness determinations. 10 Company Filings with the Idaho Public Utilities Commission The Company made several filings with the Commission regarding its energy efficiency and peak reduction programs during 2011. Summary information concerning these filings is provided as follows: On January 20, 2011, Rocky Mountain Power filed an application with the Commission requesting prospective changes to the Dispatchable Irrigation Load Control program, which is administered through Schedule 72A. This matter was subsequently assigned to Case No. PAC-E- 11-06. Through the application, the Company proposed adding language to the tariff to control participation, in an effort to address adverse impacts to the distribution system. The Company also proposed changing the opt-out or liquidated damages penalty from a variable market price for energy structure to a penalty that results in a decrease in participation credits or participant incentive for each opt-out over 1 per season. Other proposed changes were minor administrative adjustments to tariff language. Ultimately a stipulation was entered into by the Company, Idaho Irrigation Pumper Association and the Idaho Public Utilities Commission Staff to set the operating parameters for the 2011 – 2012 control seasons. The stipulation provided for the following changes in the operation of the program: • For 2011 and 2012, the parties agreed that program participation would be targeted to achieve 232 megawatts of participation load. The company would work to reduce program participation from the 2010 level of 283 megawatts by 18 percent to approximately 232 megawatts. The Company would work with participants to identify the approximate reduction necessary to achieve an 18 percent reduction. Participants without the ability to identify an 18 percent reduction by segmenting pumps would receive a payment equal to 82 percent of their available participation credit incentive. • Incentive payments for 2011 were reduced by $1.45 per kilowatt per year to reflect system constraints. • The Company committed to invest a minimum of $1.3 million in capital improvements to identify and install equipment needed to reduce the constraints on the distribution system prior to the start of the 2012 control season. • As part of the annual irrigation report, the Company agreed to complete a review of circuit loading and recommend any needed changes or investments for the following years’ irrigation season to continue to address circuit load issues. • The dispatch program season was changed to June 1 – August 31 of each year. • During 2011 – 2012 program seasons no new Program participants or additional existing participants load will be accepted into the program. • At the discretion of the Company and by agreement with selected customers, the Company could require the manual operation of selected pumps during control events. • Opt-out provisions were modified to reflect the loss of participation credits rather than market prices. On February 28, 2011, the Company submitted its 2010 Energy Efficiency and Peak Reduction Balancing Account Review with the Commission. 11 On April 27, 2011, the Commission issued an order approving the changes incorporated by the parties in the stipulation. On April 29, 2011, the Company submitted its 2010 Idaho Energy Efficiency and Peak Reduction Annual Report with the Commission. On April 29, 2011, Rocky Mountain Power filed an application with the Commission seeking authorization to suspend future program evaluations for Schedule 21, Low Income Weatherization Services Optional for Income Qualifying Customers. This matter was subsequently assigned to Case No. PAC-E-11-13. On January 18, 2012, the Commission issued an order denying the Company’s request. . 12 Outreach and Communications The following outreach, communications and promotional activities occurred to support Rocky Mountain Power’s energy efficiency programs in 2011. Home Energy Savings program Two bill inserts for the Home Energy Savings program featuring ENERGY STAR® ceiling fans and high efficiency heat pumps. New point-of-purchase materials were developed in 2011. These items included in-store banners for big box retailers, compact fluorescent lighting (“CFL”) cardboard kiosks, CFL booklet, CFL shelf flap, appliance table tents, appliance/lighting danglers and room air conditioner box stickers. A “blue envelope” promotion ran from September 19 to November 15 encouraging the purchase of qualifying dishwashers, clothes washers and refrigerators. A total of 135 applications were received as a result of this effort. In October and November, a retail sales associate promotion ran in an effort to increase appliance redemptions prior to Black Friday. Two direct mail postcards promoting heat pumps and insulation were sent to approximately 1,100 customers in November. New resource manuals, pocket guides and fact sheets were provided to retailers along with key Home Energy Savings program information. See ya later, refrigerator® Newspaper ads for the See ya later, refrigerator® recycling program ran in Idaho Falls, Pocatello and Rexburg papers during spring months. Digital ads through Yahoo and other websites were also a part of the program communications. Three inserts were included in Idaho residential customer bills (April, June and August). In October, residential customers received a mailing with a refrigerator magnet encouraging them to recycle their old refrigerators or freezers. Energy FinAnswer & FinAnswer Express Ads encouraging businesses and organizations to upgrade lighting in advance of changes in federal fluorescent lighting standards ran in Idaho Falls and Pocatello newspapers and in the Idaho Business Review in May and July. A new handout was also developed to educate customers on the lighting standards changes. On May 3, Idaho trade allies were invited to a breakfast to learn about the resources available to help them save energy and money for themselves and their clients with the FinAnswer Express program. 13 Irrigation Load Control Customers on Rate Schedule 10 received a mailing in February with information on the prescheduled and dispatchable load control options. A follow up letter was sent in April to inform customers of program modifications. General Communications Rocky Mountain Power included energy efficiency messages in radio, print and digital ads as part of its ongoing Customer Awareness campaign that ran throughout the year. Residential customers in Idaho received Rocky Mountain Power’s Voices newsletter in bills in January, March, April, May, July, September, October and November. Each issue covered energy efficiency information and tips as well as other service related topics. Other newsletters such as Energy Insights, Energy Connections and Energy Update reach community, business and government audiences on a quarterly or monthly basis. Newsletters included energy efficiency stories geared toward commercial, industrial and agricultural audiences. Rocky Mountain Power has developed a variety of brochures and event materials with information on energy efficiency programs and resources to help customers save money. Customers can visit www.wattsmart.com for information on energy efficiency incentive programs, tips and other resources to save energy and money. This information is also accessible through our main website at www.rockymountainpower.net. Rocky Mountain Power’s Idaho Twitter account (@RMP_Idaho) is used to promote energy efficiency programs, recruit customers and inform customers with tips. Additionally, Rocky Mountain Power’s wattsmart Facebook page (www.facebook.com/ rockymountainpower.wattsmart) points customers to energy efficiency programs and provides conservation ideas. 14 Peak Reduction Program and Activity Peak Reduction programs assist the Company in balancing the timing of customer energy requirements during heavy use hours; deferring the need for higher cost investments in delivery infrastructure and generation resources that would otherwise be needed to serve those requirements for a select few hours each year. These programs help the Company maximize the efficiency of the Company’s existing electrical system and reduce costs for all customers. Programs targeting capacity related resources are often specific to end use loads most prevalent in a given jurisdiction, such as the agricultural pumping loads in the Company’s Idaho service territory. The Company offers two peak reduction programs in Idaho; a pre-schedule and on-call or dispatchable irrigation load control program. For the purpose of this report the two programs are being combined and evaluated as one program. Table 4: Load Management Portfolio Performance4 kW Under Control (Gross - At Gen) 281,362 Realized Load (Gross -At Gen) 178,850 kW Under Control (At Site) 258,000 Realized Load (At Site) 164,000 Total Expenditures 9,324,044$ Participation Credits 6,074,644$ PTRC TRC UCT RIM PCT Program Cost Effectiveness Pass Pass Pass Pass NA 4 Decrement values are considered confidential on load control programs. Cost effectiveness ratios and inputs will be available under a protective agreement. A “Pass” designation equates to a benefit to cost ratio of 1 or better. 15 Irrigation Load Control (Schedule 72 and 72A) Irrigation Load Control (Schedules 72 & 72A) is offered to irrigation customers receiving electric service on Schedule 10, Irrigation and Soil Drainage Pumping Power Service. Participants allow the curtailment of their electricity usage as prescribed in Schedules 72 and 72A in exchange for a participation credit. For most participants their irrigation equipment is set up with a dispatchable two-way control system giving the Company control over their loads. Participants are provided a day-ahead notification in advance of control events and have the choice to opt-out of a limited number of dispatch events per season. A summary of the program performance, expenditures, participation and cost effectiveness results are provided in table 5: Table 5: Irrigation Load Control Program Performance MW Under Control (Gross - At Gen) 281.4 Realized Load 178.9 Expenditures - Total 9,324,044$ Participation Credits 6,074,644$ Program Operations Expense 3,249,400$ Participation (Customers) 235 Participation (Sites) 650 PTRC TRC UCT RIM PCT Program Cost Effectiveness Pass Pass Pass Pass NA Major Trends and Activities The Irrigation Load Control Program was available for 52 hours from June 1 to August 31. The program had the estimated potential to curtail 196 megawatts of load on July 18, the peak day. In 2011 Rocky Mountain Power had three load control events. The first load control dispatch was on June 29 and was estimated to reduce peak system load by 168 megawatts in Idaho. This curtailment represented 69 percent of the potential 2455 megawatts of available load control customer’s peak demand. The second dispatch occurred on July 7 and was estimated to reduce system peak 160 megawatts. This curtailment represented 62 percent of the potential 2586 megawatts of available load control customer’s peak demand. The third dispatch was on July 11 and was estimated to reduce the system peak by 165 megawatts. This curtailment represented 64 percent of the potential 258 megawatts of available load control customer’s peak demand. Idaho load control events for 2011 achieved 62 percent to 69 percent of the available participant peak load. 5 Demand fluctuates month to month. June’s undiversified demand for load control customers was 245 megawatts. 6 July’s undiversified demand for load control customers was 258 megawatts. 16 To comply with the settlement agreement approved by the Commission on April, 27, 2011, Rocky Mountain Power studied the distribution system to determine which circuits were affected the most by the Irrigation Load Control Program. It was determined that fourteen circuits on seven substations were most susceptible to high voltage issues relating to the program. Rocky Mountain Power engineered a solution to the problem by replacing manual capacitor banks with automatic sensing capacitors that would turn on and off automatically to maintain acceptable voltage levels. On these 14 circuits, 46 automatic switched capacitors were installed and 59 manual capacitors are being removed. This work is scheduled to be completed before the start of the 2012 irrigation season. Cost Effectiveness The program was cost effective from all perspectives. Decrement values or avoided costs are considered confidential on load control programs. Cost effectiveness ratios and inputs will be available under a protective agreement. A “Pass” designation equates to a benefit to cost ratio of 1 or better. Plans for 2012 The program will be implemented during 2012 in accordance with the Idaho Public Utilities Commission Order 32235 dated April 27, 2011. 17 Energy Efficiency Programs and Activity Energy efficiency programs deliver sustainable energy savings by improving the efficiency of equipment such as motors, lighting and cooling equipment. Energy efficiency is also delivered through improved weatherization of existing buildings, improving the design features of new facilities by ensuring they are constructed to exceed code. In the industrial sector, improvements in industrial equipment or processes can also improve energy utilization and deliver long term energy efficiency resources. Replacement of existing functional equipment, replacement of equipment at the end of its useful life and improvement opportunities all provide opportunities to deliver energy efficiency resources. While each type of opportunity has unique challenges, improvements in these areas all deliver long term energy savings over the life of the installed equipment. To deliver resources from these different opportunities, the Company offers six energy efficiency programs; three targeted to residential customers and three targeted to business customers. The programs are designed to work in a coordinated fashion and provide complementary services (i.e. recycle an existing refrigerator after buying a new Energy Star model) or different incentive options (i.e., Energy FinAnswer incentives at the time a project is completed). Some programs or program features are specifically designed to capture lost opportunities (the Design Assistance provision in Energy FinAnswer), while other programs target retrofit or replacement opportunities in existing structures (i.e., FinAnswer Express and Home Energy Savings). Results for the 2011 Energy Efficiency Portfolio are presented in the following tables: Table 6: Energy Efficiency Portfolio Performance System Benefit Expenditures 2,363,302$ Energy Efficiency First Year Savings kWh/Yr (Gross at Generation) 9,660,007 Energy Efficiency First Year Savings kWh/Yr (at Site) 8,821,524 PTRC TRC UCT RIM PCT Portfolio Cost Effectiveness 1.253 1.139 1.627 0.696 2.149 Levelized Cost ($/kWh) 0.0770$ 0.0770$ 0.0539$ Lifecycle Revenue Impact ($/kWh) 0.0000360$ 18 Table 7: Commercial & Industrial Energy Efficiency Portfolio System Benefit Expenditures 1,346,069$ C&I Energy Efficiency First Year Savings kWh/Yr (Gross at Generation) 5,548,536 C&I Energy Efficiency First Year Savings kWh/Yr (at Site) 5,082,293 PTRC TRC UCT RIM PCT Portfolio Cost Effectiveness 1.296 1.178 1.813 0.794 1.655 Levelized Cost ($/kWh) 0.0762$ 0.0762$ 0.0493$ Lifecycle Revenue Impact ($/kWh) 0.0000178$ Table 8: Residential Energy Efficiency Portfolio System Benefit Expenditures 1,017,233$ Residential Energy Efficiency First Year Savings kWh/Yr (Gross at Generation) 4,111,471 Residential Energy Efficiency First Year Savings kWh/Yr (at Site) 3,739,231 PTRC TRC UCT RIM PCT Portfolio Cost Effectiveness 1.202 1.093 1.413 0.588 3.221 Levelized Cost ($/kWh) 0.0780$ 0.0780$ 0.0604$ Lifecycle Revenue Impact ($/kWh) 0.0000232$ 19 Residential Energy Efficiency Programs and Activity Home Energy Savings Program (Schedule 118) The Home Energy Savings program (Schedule 118) provides a broad framework to deliver incentives for more efficient products and services installed or received by Idaho customers in new or existing homes, multi-family housing units or manufactured homes. The program is delivered through a third party administrator hired by the Company. Program information is available to the public at the program’s web site at http://www.homeenergysavings.net/Idaho/idaho_home.html and can also be accessed through http://www.rockymountainpower.net/env/epi.html, the Company’s Idaho energy efficiency program website. Summary of the program results for 2011 are provided in the table below: Table 9: Home Energy Savings Program Performance kWh/Yr Savings (Gross - At Gen) 2,797,917 kWh/Yr Savings (At Site) 2,544,602 Expenditures 613,890$ Incentives Paid 232,149$ PTRC TRC UCT RIM PCT Program Cost Effectiveness 1.476 1.342 2.115 0.689 2.511 Levelized Cost ($/kWh) 0.0640 0.0640 0.0406 Lifecycle Revenue Impact ($/kWh) 0.0000117$ 20 Details of 2011 measure level participation and savings are provided on the following table: Table 10: Home Energy Savings Measure Performance Home Energy Savings Measures Unit Measure ment # of Units Participants kWh/Yr Savings (Gross - At Site) Clothes Washer-Tier One (1.72 - 1.99 MEF) Units 14 14 3,188 Clothes Washer-Tier Two (2.0 + MEF) Units 1,165 1,165 283,193 Clothes Washer Recycling Units 0 0 0 Dishwasher Units 316 316 12,881 Evaporative Cooler (Portable) Units 0 0 0 Evaporative Coolers (Permanently Installed) Units 3 3 975 Electric Water Heater Units 58 58 5,261 Room AC Units 0 0 0 Refrigerator Units 350 350 34,125 Insulation - Attic sq feet 88,673 83 136,974 Insulation - Floor sq feet 969 3 6,439 Insulation - Wall sq feet 3,823 5 4,949 Windows sq feet 9,037 63 20,152 CAC (15 SEER) Projects 2 2 192 CAC Install Units 0 0 0 CAC Sizing Units 1 1 67 CAC Tune-Up Projects 1 1 30 Duct Sealing - Electric Projects 0 0 0 Duct Sealing - Gas Projects 0 0 0 Heat Pump Upgrade Projects 2 2 1,622 Heat Pump Conversion Units 4 4 12,588 HP Tune up Units 1 1 505 Ceiling Fans Units 17 11 1,819 Fixtures Units 110 40 10,120 CFL-Specialty Units 1,273 127 43,219 CFL-Twister Units 57,286 5,729 1,966,304 Totals 163,105 7,978 2,544,602 kWh/Yr Savings at Generation 2,797,917 (Note: CFL participation is assumed at 10 CFLs per participant.) Major Trends and Activities The Home Energy Savings program savings in 2011 decreased 78 percent in non-CFL measures but increased 128 percent in CFL measures. This resulted in an overall decrease of 24 percent as compared to 2010. The largest decrease in non-CFL participation was seen in weatherization measures. The contractor feedback indicated that overall sales were down compared to 2010 due to economic 21 instability and very mild summer weather. Additionally, appliance sales slowed after the exhaustion of American Recovery and Reinvestment Act of 2009 (ARRA) funds. Special per bulb CFL pricing was instituted in 2011 which contributed to the achievement of 100 percent of lighting goals in Idaho by the end of the year. The program also partnered with Fluid Market Strategies and the regional Simple Steps program that helped contribute to increased savings of 816,000 kWh, which represents nearly 41 percent of lighting savings for 2011. A marketing campaign, which provided incentives to the sales associates in order to drive customer participation, was conducted in the last quarter of 2011. The campaign’s goal was to promote appliance measures such as dishwashers, clothes washers and refrigerators and resulted in a total of 135 applications received from the top retailers such as Sears, Denning’s, and Home Depot. This promotion contributed significantly to appliance savings for the program. A similar promotion will be considered again in 2012. Cost Effectiveness The program was cost effective from all perspectives except the Ratepayer Impact Test. Appendix 1 provides detailed inputs used in the cost effectiveness analysis of this program. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. Plans for 2012 The program is focusing on targeted retailer outreach in 2012, as six retailers in Idaho account for 80 percent of appliance redemptions. Program staff is also focusing on the Qualified Weatherization Contractor Network and bringing new trade allies onto the program. By co- branding, placing product, and co-sponsoring promotions, the program expects to increase participation. 22 See ya later, refrigerator® (Schedule 117) The Residential Refrigerator Recycling Program (Schedule 117) is available to Idaho residential customers through a Company contracted third-party program administrator. Older refrigerators and freezers which are less efficient, yet operational, are taken out of use permanently and recycled in an environmentally responsible manner. The program’s objective is to permanently retire these older and less efficient refrigerators and freezers from the market and recycle the units in order to avoid their re-entry or resale on the secondary appliance market. Program awareness is generated through mass media advertising channels as well as Company communications such as the program’s web site, bill stuffers, and customer newsletters. In addition to free pick-up and a nominal cash incentive, participants receive an energy efficiency packet consisting of two ENERGY STAR®-certified compact fluorescent light bulbs, a refrigerator/freezer thermometer, and energy education materials. A summary of the program results for 2011 are provided in the table below. Table 11: See ya later, refrigerator® Program Performance kWh Savings (Gross - At Gen) 1,037,069 kWh Savings (At Site) 943,176 Expenditures 107,033$ Incentives Paid 21,300$ PTRC TRC UCT RIM PCT Program Cost Effectiveness 1.945 1.768 1.594 0.579 NA Levelized Cost ($/kWh) 0.0418 0.0418 0.0464 Lifecycle Revenue Impact ($/kWh) 0.000006024$ Details of 2011 measure level participation and savings are provided on the following table: Table 12: See ya later, refrigerator® Results Refrigerator Recycling Measure Unit Count Per Unit Savings (kWh/Yr) Gross Savings (kWh/Yr) Refrigerator 542 1,149 622,758 Freezer 168 1,590 267,120 Total Units Recycled 710 889,878 Energy Savings Kits 658 81 53,298 Total (At Site) 943,176 Total (At Generation) 1,037,069 23 Major Trends and Activities Program participation in 2011 decreased approximately 10 percent from 2010 (in terms of unit volumes). A direct mail campaign in October involved approximately 20,000 pieces, and resulted in strong Q4 program activity. Environmental Attributes In terms of the impact of the program on the environment, processing the 710 harvested units resulted in the recycling of more than 44 tons of metal, 7 tons of plastics, 1 ton of tempered glass, the recovery or destruction of more than 300 lbs of refrigerant, and the destruction of more than 400 and 100 lbs of CFC-11 and HCFC-141b, respectively, contained in foam insulation. Cost Effectiveness The 2011 See ya later, refrigerator® program was cost effective from all perspectives except the Ratepayer Impact Test. Appendix 1 provides detailed inputs used in the cost effectiveness analysis of this program. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. Plans for 2012 Goals in 2012 call for 1,000 units to be collected and recycled. Based on successful experiences in late 2010 and late 2011, direct mail will be used again in the May-June time frame. The retail element, begun in 2011 at national chains such as Sears and Best Buy, will be expanded to include R.C. Willey and stand-alone “mom and pop” stores. In addition, cross promotional opportunities with the Home Energy Savings program will be used in retail stores (e.g., through point-of-sale flyer placements). 24 Low Income Weatherization (Schedule 21) The Low Income Weatherization Services program (Schedule 21) is available through a partnership with Eastern Idaho Community Action Partnership (EICAP) in Idaho Falls and South Eastern Idaho Community Action Agency (SEICAA) in Pocatello. These partnerships allow for leveraging of Company funding with federal grants available to EICAP and SEICAA, increasing the number of homes served. Rocky Mountain Power’s funding in 2011 provided rebates that covered 85 percent of the cost of approved energy efficiency measures. Income eligible households receive energy efficiency services at no cost. Participants can be either homeowners or renters residing in single-family homes, manufactured homes and apartments. Table 13 summarizes the program results for 2011. Program expenditures totaled $253,809. Funds received by the agency from other sources (state or federal funding) are not included. Rocky Mountain Power’s program provided funding towards the weatherization of 100 qualifying homes in 2011 with an average program cost per home of $2,538. 25 Table 13: Low Income Weatherization Performance kWh/yr Savings (At Site) 228,605 kWh/yr Savings (Gross - At Gen) 251,363 Expenditures 253,809$ Participation - Total # of Completed/Treated Homes 100 Number of Homes Receiving Specific Measures Ceiling Insulation 37 Floor Insulation 30 Wall Insulation 6 Duct Insulation/Sealing 9 Attic Ventilation 29 Infiltration 57 Water Pipe Insulation and Sealing 88 Water Heater Repair 5 Water Heater Replacement 1 Furnace Repair/Tune-up 36 Furnace Replacement 6 Health & Safety 43 Replacement Windows 37 Thermal Doors 36 Compact Fluorescent Light Bulbs (CFLs) 97 Number of Specific Measures Replacement Refrigerator 13 Total Program Costs PTRC TRC UCT RIM PCT Program Cost Effectiveness 0.817 0.742 0.742 0.429 N/A Levelized Cost ($/kWh) 0.1263 0.1263 0.1263 Lifecycle Revenue Impact ($/kWh) 0.000005332$ Results without additional data request costs PTRC TRC UCT RIM PCT Program Cost Effectiveness 0.957 0.870 0.870 0.469 N/A Levelized Cost ($/kWh) 0.1078 0.1078 0.1078 Lifecycle Revenue Impact ($/kWh) 0.000004542$ Major Trends and Activities Weatherization completions in 2011 more than doubled compared to 2010 program activities. The Low Income Weatherization Program tariff was revised as of December 28, 2010, increasing the Company’s reimbursement from 75 percent of costs on approved measures to 85 percent, and annual funding was increased from $150,000 to $300,000. 26 Cost Effectiveness An evaluation of Low Income Weatherization Services Optional for Income Qualifying Customers program was completed in 2011 by a third party administrator for program years 2007 through 2009. The Company recognizes the importance of the Low Income Weatherization Program and the benefit to the customers by reducing kWh usage and helping to make participant’s bills more affordable, as well as increasing their comfort. However, as described in the Low-Income Weatherization program evaluation, due to many factors the third party evaluator determined that the program was not cost-effective. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. Plans for 2012 We anticipate 2012 weatherization completions will be fairly consistent with 2011 results. 27 Conservation Education Rocky Mountain Power committed to provide a total of $50,000 for an energy education component for the Low Income Weatherization program (Schedule 21). This commitment was made through a stipulation dated April 16, 2009, in Case No. PAC-E-08-01. The Company provided $7,500 in funds for energy efficiency kits to be distributed through the Conservation Education component in May, 2010, and a total of $42,500 in May, 2011 to Eastern Idaho Community Action Partnership (EICAP) and South Eastern Idaho Community Action Agency (SEICAA) to cover their expenses in providing these services. The Conservation Education is designed to provide a group education session and an in-home education session to participants, as well as an energy efficiency kit with easy-install measures. The energy efficiency kits include one 13 watt CFL, one 19 watt CFL, one 23 watt CFL, ten outlet gaskets, one kitchen aerator, one refrigerator temperature card and one luminescent night light. The agencies began offering these services in May, 2011. A total of 168 households completed the conservation education component in 2011. Since it is designed to reach 500 households with the $50,000 funding, it is very likely these conservation education services will continue through 2012 with the monies provided in 2010 and 2011. Table 12 summarizes the program results for 2011. No savings are reported from behavioral changes that may have resulted from the education sessions. Table 14: Conservation Education kWh/yr Savings (At Site) 22,848 kWh/yr Savings (Gross - At Gen) 25,123 Expenditures 42,500$ Completed households 168 Major Trends and Activities The development of the curriculum and implementation of the conservation education component for Rocky Mountain Power customers was delayed as staff from the Community Action Partnership Association of Idaho (CAPAI), EICAP and SEICAA were focusing on the implementation of the Idaho Power education program. These services were offered to our customers beginning in May, 2011. Plans for 2012 We anticipate that 2012 Conservation Education completions will be approximately the same as in 2011 or greater. As of December 31, 2011, there were 332 kits remaining of the 500 Rocky Mountain Power funded in 2010. 28 Non-Residential Energy Efficiency Programs and Activity Energy FinAnswer (Schedule 125) The Energy FinAnswer program is offered to commercial (buildings 20,000 square feet and larger) and industrial customers. The program provides Company-funded energy engineering, incentives of $0.12 per kWh of first year energy savings and $50 per kW of average monthly demand savings up to a cap of 50 percent of the approved project cost. The program is designed to target comprehensive projects requiring project specific energy savings analysis and operates as a complement to the more streamlined FinAnswer Express program. In addition to customer incentives, the program provides design team honorariums (a finder fee for new projects) and design team incentives for new construction projects exceeding current Idaho energy code by at least 10 percent. A summary of the program results are provided in the table below: Table 15: Energy FinAnswer Program kWh/Yr Savings (Gross - At Gen) 532,135 kWh/Yr Savings (At Site) 487,927 Expenditures 154,367$ Incentives Paid 42,932$ PTRC TRC UCT RIM PCT Program Cost Effectiveness 1.657 1.507 1.928 0.857 2.615 Levelized Cost ($/kWh) 0.0563 0.0563 0.0440 Lifecycle Revenue Impact ($/kWh) 0.000001387$ Details of 2011 savings by type of measure are provided on the following table: Table 16: Energy FinAnswer by Measure Type Energy FinAnswer kWh/Yr Savings (at site) by Measure Type Compressed Air 128,051 26% Lighting 14,241 3% Motors 302,120 62% Refrigeration 43,515 9% 487,927 29 Major Trends and Activities A total of 18 Energy FinAnswer projects were completed in 2011 compared to 10 in 2010. Program specific energy savings decreased 67 percent and expenditures decreased 58 percent during 2011 compared to 2010. The Company continues to market the program through its Customer and Community Managers and network of trade allies in concert with the FinAnswer Express program. Cost Effectiveness The 2011 Energy FinAnswer program was cost effective from all perspectives except the Ratepayer Impact Test. Appendix 1 provides detailed inputs used in the cost effectiveness analysis of this program. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. Plans for 2012 Continue to monitor actual and forecasted participation and assess the potential impacts of program modifications similar to those implemented in other markets. 30 FinAnswer Express (Schedule 115) The FinAnswer Express program (Schedule 115) is available to Idaho business customers excluding those served on Schedule 10, which are eligible for program services through the Irrigation Energy Savers program. The FinAnswer Express program is available to help customers improve the efficiency of their new or replacement lighting, HVAC, motors, building envelope and other equipment by providing prescriptive or pre-defined incentives for the most common efficiency measures listed in the program incentive tables. The program also includes custom incentives and technical analysis services for measures not listed in the program incentive tables that improve electric energy efficiency. The program is designed to operate in conjunction with the Energy FinAnswer program. Although incentives available vary, the program provides incentives for both new construction and retrofit projects. The program is primarily marketed through local trade allies who receive support from Company provided sales and training team. The lists of participating vendors posted on the Company website include 21 lighting, 32 HVAC, 27 motor, and 4 other equipment trade allies. A summary of the program results are provided in the table below: Table 17: FinAnswer Express Program7 kWh/Yr Savings (Gross - At Gen) 2,442,275 kWh/Yr Savings (At Site) 2,233,973 Expenditures 700,723$ Incentives Paid 356,726$ PTRC TRC UCT RIM PCT Program Cost Effectiveness 1.175 1.068 1.868 0.732 1.624 Levelized Cost ($/kWh) 0.0816 0.0816 0.0466 Lifecycle Revenue Impact ($/kWh) 0.0000155022$ Details of 2011 savings by type of measure are provided on the following table: Table 18: FinAnswer Express by Measure Type FinAnswer Express kWh/Yr Savings (at site) by Measure Type Lighting 1,584,337 71% Non-Lighting 649,636 29% 2,233,973 7 Savings and expenditures from school projects completed under the Idaho Office of Energy Resources Energy Efficiency Incentives Agreement were removed from the PTRC, TRC and PCT cost effectiveness calculations and results. See Appendix 1. 31 Major Trends and Activities Participation from customers in the government and education sectors was strong in 2011, accounting for almost 70 percent of program’s energy savings. On May 3, 2011, Rocky Mountain Power provided lighting and mechanical/non-lighting program training in combination with the Northwest Trade Ally Network (NW Tan) with technical lighting training in Idaho Falls. Forty- one individuals attended the program training. Cost Effectiveness The program was cost effective from all perspectives except the Ratepayer Impact Test. Appendix 1 provides detailed inputs and assumptions used in the cost effectiveness analysis of this program. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. Plans for 2012 The Company plans to continue to provide marketing and trade ally outreach to target customers with T12 fluorescent lighting to provide information on changes in federal lighting standards coming on July 14, 2012. Site outreach is continuing for trade allies with more resources and field staff visiting the area including lighting technical specialists and non-lighting mechanical outreach trade ally coordinators. These field visits are specifically designed to support the local trade allies with project closure and processing the applications for incentives. 32 Agricultural Energy Services (Schedule 155) Agricultural Energy Services, marketed as Irrigation Energy Savers (Schedule 155), was available in 2011 to Idaho irrigation customers taking retail service on Schedule 10 through a Company contracted third-party program administrator. The program design is intended to be the energy efficiency complement to the Irrigation Load Control programs offered under Schedules 72 & 72A. The 2011 program included the following customer service and measure components: • Equipment Exchange – Provides new standard sprinkler nozzles, gaskets, and drains to replace worn equipment on hand lines, wheel lines and solid set sprinklers systems. • Pivot and Linear Equipment Upgrades – Incentives are provided for certain pivot and linear system measures including sprinkler packages, pressure regulators, and drains. The list of prescriptive incentives is not designed to be exhaustive and other pivot measures are eligible for incentives if energy savings can be calculated and the customer incurs costs to make the changes. • System Consultation – This service provides a simple site specific audit of a customer’s irrigation system to promote irrigation water management and identify energy savings opportunities. This consultation provides information prior to a full pump test. • Pump Testing – The pump test includes directly measuring pump lift, flow, pressure, and electrical demand and is performed after the pump has been screened and the owner’s financial investment criteria understood. • System Analysis – The program provides energy engineering to help growers quantify the costs and savings of their system efficiency upgrades. Often these upgrade decisions are made in conjunction with operational production change considerations impacting a growers equipment needs. Incentives are based on a standard formula tied to costs and first year energy savings. A summary of the program results for 2011 are provided in the table below. Table 19: Agricultural Energy Services Program kWh/Yr Savings (Gross - At Gen) 2,574,126 kWh/Yr Savings (At Site) 2,360,393 Expenditures 490,980$ Incentives Paid 224,890$ PTRC TRC UCT RIM PCT Program Cost Effectiveness 1.381 1.255 1.743 0.899 1.506 Levelized Cost ($/kWh) 0.0757 0.0757 0.0545 Lifecycle Revenue Impact ($/kWh 0.0000046450$ 33 Details of 2011 savings by type of measure are provided on the following table: Table 20: Agricultural Energy Savers by Measure8 Agricultural Energy Savers kWh/Yr Savings by Measure Type (at Site) Equipment Exchange & Pivot/Linear Upgrade 1,697,132 72% System Design 663,259 28% 2,360,391 Major Trends and Activities The 2011 savings and expenses were 6 percent and 23 percent, respectively, lower compared to 2010 program savings and expenditures. During 2011, 101 site visits were completed to obtain system information used in either a system consultation or an energy analysis evaluation as a part of the Agricultural Energy Services Program. During the same year, 21 post installation inspections were completed to verify project installation and energy savings. The following outreach and event activities were completed for the program in 2011: • Maintained a booth at the Eastern Idaho Ag. Expo and Potato School January 18 – 20, to promote the program and provide program information to customers. • Maintained a booth and met with customers at the Rain For Rent customer appreciation day in Idaho Falls on February 24. • Maintained a booth and met with customers at the Valley Implement customer appreciation day in Preston on February 24. • Met with each of the program participating dealers and provided a summary report of incentives provided to their customers through the program, provided updated program applications and information, and answered program related questions. Cost Effectiveness The program was cost effective from all perspectives except the Ratepayer Impact Test. Appendix 1 provides detailed inputs and assumptions used in the cost effectiveness analysis of this program. Program Evaluation See comments under the Program Evaluation heading in the 2011 Performance and Activities section of this report for evaluation activities related to this program. 8 Table totals may not add up exactly due to rounding 34 Summary of 2011 Results Table 21: Revenues (Schedule 191) by Customer Type Table 22: Expenditures (Schedule 191) by Customer Type (Note – Table 22 does not include Irrigation Load ) Residential 47% Commercial 26% Industrial 8%Agricultural 19% Residential 43% Commercial 21% Industrial 8% Irrigation 27.5% Public Street & Highway 0.5% 35 Table 23: Energy Efficiency kWh Saved by Customer Type Residential 43% Commercial 25% Industrial 5% Irrigation 27% 36 Balancing Account Summary Energy efficiency and peak reduction activities are funded by revenue collected through Schedule 191, Customer Efficiency Services Rate on customer bills. Expenses for energy efficiency programs are charged as incurred and booked to the balancing account. The balancing account activity for 2011 is outlined in the table below. Table 24: Balancing Account Activity (Schedule 191) Balance as of 12/31/10 3,845,843$ Monthly Program Cost - Fixed Assets Accrued Costs Rate Recovery Carrying Charge Cash Basis Accumulated Balance ccrual Basis Accumulated Balance January 94,913.02$ - (418,081.55)$ 3,070.00$ 3,525,744.00$ - February 222,587.37$ - (338,071.76)$ 2,890.00$ 3,413,149.61$ - March 242,913.84$ - (310,853.16)$ 2,816.00$ 3,348,026.29$ - April 213,813.93$ - (284,248.86)$ 2,761.00$ 3,280,352.36$ - May 174,180.12$ - (351,043.79)$ 2,660.00$ 3,106,148.69$ - June 193,591.58$ - (455,326.01)$ 2,479.00$ 2,846,893.26$ - July 138,269.01$ - (785,015.77)$ 2,103.00$ 2,202,249.50$ - August 220,093.03$ - (719,628.69)$ 1,627.00$ 1,704,340.84$ - September 184,203.33$ - (570,028.01)$ 1,260.00$ 1,319,776.16$ - October 103,080.76$ - (389,845.34)$ 980.00$ 1,033,991.58$ - November 255,997.43$ - (353,022.44)$ 821.00$ 937,787.57$ - December 626,340.83$ 380,980.18 (381,809.72)$ 883.00$ 1,183,201.68$ 1,564,181.86 2010 totals 2,669,984.25$ 380,980.18$ (5,356,975.10)$ 24,350.00$ Column Explanations: Monthly Program Costs – Fixed Assets: Monthly expenditures for all energy efficiency and peak reduction program activities. Accrued Costs: Program costs incurred during the period not yet posted. Rate Recovery: Revenue collected through Schedule 191, Customer Efficiency Service Rate. Carrying Charge: Monthly “interest” charge based on “Accumulated Balance” of the account. The current “interest rate” for the Accumulated Balance is 1 percent per year. Accumulated Balance: Current balance of the account. A running total of account activities. If more is collected in “Revenue” than is spent for a given month, the “Accumulated Balance” will be decreased by the net amount. A negative accumulative balance means cumulative revenue exceeds cumulative expenditures; positive accumulative balance means cumulative expenditures exceed cumulative revenue. Accrual Basis Accumulative Balance: Current balance of account including accrued costs. At the beginning of 2011, the unfunded balance was approximately $3.846 million and decreased by approximately $2.282 million during the year. The unfunded balance at the end of 2011 is $1.564 million which includes the accrued cost. 37 Cost Effectiveness Introduction The cost effectiveness of individual programs operated by the Company for 2011 are calculated using actual expenditures and reported savings. Cost-effectiveness is provided at the individual program, load management portfolio, residential energy efficiency portfolio, non-residential energy efficiency portfolio, combined energy efficiency portfolio, and overall energy efficiency and peak reduction program portfolio levels. Deemed savings estimates where applicable were the same as those used in the planning estimates. Energy savings shown in this report are gross savings and the impact of line losses is indicated with an at “site” or at “generation” designation. Line losses are based on the Company’s 2007 line loss study. Net-to-gross assumptions are consistent with planning estimates. The energy savings attributed to each program are shaped according to specific end-use savings (the hourly calculation of when energy is used for the various end-use measures from which the savings are derived). Program costs and the value of the energy savings are then compared on a present value basis with the Company’s 2011 Integrated Resource Plan (IRP) calculated decrement values for energy efficiency resource savings and avoided capacity investments. The energy efficiency resource decrement values are fully shaped to represent the 8,760 hourly values that exist within a calendar year. By matching the hourly savings with the hourly avoided costs, both energy and capacity impacts of energy efficiency savings are recognized. The cost/benefit analysis of the load management programs are based on the avoided value of peak or capacity investments. For purposes of calculating program cost-effectiveness no energy savings are included for the load management programs, only a shift of when the energy is used away from the peak load hours. The five California Standard Practice Manual cost effectiveness tests were utilized in the cost benefit analysis for both energy efficiency and load management programs. Further details are available in Appendix 1. 38 Key Assumptions for Cost Effectiveness Calculations: Cost Effectiveness calculations for programs and measures (or measure groups) within each program will be detailed in the tables in Appendix 1. Global Assumptions used in all cost effectiveness calculations include: Key elements that go into the cost effectiveness calculation for each program include: • KW/kWh Savings Gross • Administrative Expenses • Incentives Paid • Total Utility Costs – including administration and evaluation • Gross Customer Costs • Net To Gross Ratio • Measure Life • Avoided Cost/Resource Decrement Value Please reference Appendix 1, Cost Effectiveness 2011 Idaho Energy Efficiency and Peak Reduction Annual Report for additional information on the key assumptions and inputs for cost effectiveness calculations for each program. Assumption Value Source Discount Rate 7.17%2011 Integrated Resource Plan Line Losses (Idaho Specific) Residential 9.955%2007 MAC Line Loss Study Commercial 9.326%2007 MAC Line Loss Study Industrial 9.055%2007 MAC Line Loss Study 39 Appendices: Appendix 1 – Cost Effectiveness 2011 Idaho Energy Efficiency and Peak Reduction Annual Report Appendix 2 – 2011 Idaho Irrigation Post Peak Report Appendix 1 Cost Effectiveness 2011 Idaho Energy Efficiency and Peak Reduction Annual Report       Rocky Mountain Power 2 Table of Contents  Portfolio and Sector Level Cost Effectiveness ............................................................................... 3  Program Level Cost Effectiveness .................................................................................................. 5  Home Energy Savings Program – Schedule 118 ........................................................................ 5  Refrigerator Recycling (See ya later, refrigerator®) – Schedule 117 ......................................... 6  Low Income Weatherization – Schedule 21 ............................................................................... 7  Energy FinAnswer – Schedule 125 ............................................................................................. 9  FinAnswer Express – Schedule 115 ......................................................................................... 10  Agricultural Energy Services (Irrigation Energy Savers) – Schedule 155 ............................... 12  3 Portfolio and Sector Level Cost Effectiveness The overall energy efficiency and peak reduction portfolio and component sectors were all cost effective on a PacifiCorp Total Resource Cost Test (PTRC), Total Resource Cost Test (TRC), Utility Cost Test (UCT), Ratepayer Impact Test (RIM) and Participant Cost Test (PCT) basis. Decrement values are considered confidential on load control programs. Cost effectiveness ratios and inputs will be available under a protective agreement. A “Pass” designation equates to a benefit to cost ratio of 1 or better. The following table provides the results of all five cost effectiveness tests. Sector and Program Level Cost Effectiveness Summaries: The cost effectiveness results for the sector level are aggregations of the costs and benefits from the component programs. The inputs and assumptions that support these results are contained in the program level cost effectiveness results. 2011 Total Portfolio Energy Efficiency Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0770 $3,346,269 $4,194,207 $847,938 1.253 Total Resource Cost Test (TRC) No Adder 0.0770 $3,346,269 $3,812,916 $466,647 1.139 Utility Cost Test (UCT) 0.0539 $2,531,717 $4,119,958 $1,588,241 1.627 Rate Impact Test (RIM) $5,917,306 $4,119,958 ($1,797,348) 0.696 Participant Cost Test (PCT) $2,232,929 $4,799,498 $2,566,569 2.149 Lifecycle Revenue Impacts ($/kWh) $0.0000359843 2011 Portfolio and Sector Cost Effectiveness Summary Cost Effectiveness Test PTRC TRC UCT RIM PCT 2011 Total Portfolio including Load Control 4.354 3.958 2.228 1.733 4.870 2011 Total Energy Efficiency Portfolio 1.253 1.139 1.627 0.696 2.149 2011 C&I Energy Efficiency Portfolio 1.296 1.178 1.813 0.794 1.655 2011 Residential Energy Efficiency Portfolio 1.202 1.093 1.413 0.588 3.221 2011 Irrigation Load Control Pass Pass Pass Pass A 4 2011 C&I Energy Efficiency Portfolio Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0762 $1,830,179 $2,371,120 $540,941 1.296 Total Resource Cost Test (TRC) No Adder 0.0762 $1,830,179 $2,155,564 $325,385 1.178 Utility Cost Test (UCT) 0.0493 $1,358,529 $2,462,606 $1,104,077 1.813 Rate Impact Test (RIM) $3,100,143 $2,462,606 ($637,537) 0.794 Participant Cost Test (PCT) $1,527,679 $2,527,670 $999,991 1.655 Lifecycle Revenue Impacts ($/kWh) $0.0000178050 2011 Residential Energy Efficiency Portfolio Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0780 $1,516,090 $1,823,087 $306,997 1.202 Total Resource Cost Test (TRC) No Adder 0.0780 $1,516,090 $1,657,352 $141,262 1.093 Utility Cost Test (UCT) 0.0604 $1,173,188 $1,657,352 $484,164 1.413 Rate Impact Test (RIM) $2,817,163 $1,657,352 ($1,159,811) 0.588 Participant Cost Test (PCT) $705,249 $2,271,828 $1,566,578 3.221 Lifecycle Revenue Impacts ($/kWh) $0.0000232203 5 Program Level Cost Effectiveness Home Energy Savings Program – Schedule 118 The tables below present the cost-effectiveness findings of the Idaho Home Energy Savings program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 35% east residential whole house load factor decrement. Table 1: Home Energy Savings Annual Program Costs Program Management and Administration Other Program Costs Incentives Total Utility Costs Net Participant Incremental Cost Lighting $8,389 $962 $56,864 $66,216 $264,836 Appliance $219,494 $25,176 $136,216 $380,886 $267,439 Home Improvement $105,210 $12,068 $36,119 $153,397 $44,886 HVAC $9,368 $1,074 $2,950 $13,392 $8,436 Total $342,461 $39,281 $232,149 $613,891 $585,597 Table 2: Home Energy Savings Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Lighting 2,009,524 103% 2,069,809 85% 1,759,338 5.0 Appliance 351,561 161% 566,013 86% 486,771 14.0 Home Improvement 168,514 75% 126,385 87% 109,955 30.0 HVAC 15,004 99% 14,854 86% 12,774 14.0 Total 2,544,602 95% 2,777,062 86% 2,368,839 Table 3: IRP 35% Load Factor Decrement All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0640 $967,338 $1,428,143 $460,806 1.476 Total Resource Cost Test (TRC) No Adder 0.0640 $967,338 $1,298,312 $330,974 1.342 Utility Cost Test (UCT) 0.0406 $613,890 $1,298,312 $684,422 2.115 Rate Impact Test (RIM) $1,884,943 $1,298,312 ($586,631) 0.689 Participant Cost Test (PCT) $683,949 $1,717,612 $1,033,663 2.511 6 Lifecycle Revenue Impacts ($/kWh) $0.0000117448 Discounted Participant Payback (years) 1.93 Refrigerator Recycling (See ya later, refrigerator®) – Schedule 117 The tables below present the cost-effectiveness findings of the Idaho See-Ya-Later Refrigerator program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 35% east residential whole house load factor decrement. Table 1: See-Ya-Later Annual Program Costs Marketing and Program Development Utility Admin Program Management and Administration Incentives Total Utility Costs Net Participant Incremental Cost Refrigerators $995 $5,178 $56,730 $16,260 $79,163 $7,902 Freezers $286 $1,488 $16,301 $5,040 $23,115 $2,853 Kits $75 $391 $4,289 $0 $4,756 $0 Total $1,357 $7,057 $77,320 $21,300 $107,033 $10,755 Table 2: See-Ya-Later Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Refrigerators 622,758 103% 641,441 49% 311,740 5.00 Freezers 267,120 69% 184,313 57% 104,321 5.00 Kits 53,298 91% 48,501 100% 48,501 6.60 Total 943,176 93% 874,255 53% 464,562 Table 3: IRP 35% Load Factor Decrement All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0418 $96,489 $187,671 $91,182 1.945 Total Resource Cost Test (TRC) No Adder 0.0418 $96,489 $170,610 $74,121 1.768 Utility Cost Test (UCT) 0.0464 $107,034 $170,610 $63,576 1.594 Rate Impact Test (RIM) $294,767 $170,610 ($124,157) 0.579 Participant Cost Test (PCT) $21,300 $369,026 $347,726 17.325 7 Lifecycle Revenue Impacts ($/kWh) $0.000006024 Discounted Participant Payback (years) 0.22 Low Income Weatherization – Schedule 21 The tables below present the cost-effectiveness findings of the Idaho Low Income Weatherization program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 medium IRP 35% east residential whole house load factor decrement. The results for a second scenario with reduced evaluation costs are also presented below. Table 1: Low Income Weatherization Annual Program Costs Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Low Income weatherization $15,941 $200,719 $37,150 $0 $253,809 $0 Table 2: Low Income Weatherization Annual Program Costs – Reduced Data Request Costs Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Low Income weatherization $15,941 $200,719 $7 $0 $216,666 $0 Table 3: Low Income Weatherization Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Low Income weatherization 228,605 65% 148,593 100% 148,593 25.00 Table 4: Low Income Weatherization All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.1263 $253,809 $207,273 ($46,536) 0.817 Total Resource Cost Test (TRC) No Adder 0.1263 $253,809 $188,430 ($65,379) 0.742 Utility Cost Test (UCT) 0.1263 $253,809 $188,430 ($65,379) 0.742 Rate Impact Test (RIM) $438,998 $188,430 ($250,568) 0.429 Participant Cost Test (PCT) $0 $185,189 $185,189 N/A 8 Lifecycle Revenue Impacts ($/kWh) $0.0000053322 Discounted Participant Payback (years) N/A Table 5: Low Income Weatherization with Reduced Data Request Costs All Measures AC: IRP 35% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.1078 $216,666 $207,273 ($9,393) 0.957 Total Resource Cost Test (TRC) No Adder 0.1078 $216,666 $188,430 ($28,236) 0.870 Utility Cost Test (UCT) 0.1078 $216,666 $188,430 ($28,236) 0.870 Rate Impact Test (RIM) $401,855 $188,430 ($213,425) 0.469 Participant Cost Test (PCT) $0 $185,189 $185,189 N/A Lifecycle Revenue Impacts ($/kWh) $0.0000045418 Discounted Participant Payback (years) N/A 9 Energy FinAnswer – Schedule 125 The tables below present the cost-effectiveness findings of the Idaho Energy FinAnswer program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 69% east system load factor decrement. Table 1: Energy FinAnswer Annual Program Costs Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $0 $10,531 $5,057 $1,547 $1,167 $18,303 $3,688 Industrial $0 $67,564 $22,954 $3,781 $41,765 $136,064 $82,447 Total $0 $78,095 $28,012 $5,328 $42,932 $154,367 $86,135 Table 2: Energy FinAnswer Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 9,727 91% 8,852 75% 6,639 15 Industrial 478,200 91% 435,162 75% 326,372 15 Total 487,927 91% 444,014 75% 333,010 Table 3: IRP 69% Load Factor Decrement All Measures AC: IRP 69% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0563 $197,570 $327,460 $129,891 1.657 Total Resource Cost Test (TRC) No Adder 0.0563 $197,570 $297,691 $100,122 1.507 Utility Cost Test (UCT) 0.0440 $154,367 $297,691 $143,324 1.928 Rate Impact Test (RIM) $347,371 $297,691 ($49,679) 0.857 Participant Cost Test (PCT) $114,846 $300,270 $185,424 2.615 Lifecycle Revenue Impacts ($/kWh) $0.0000013874 Discounted Participant Payback (years) 3.17 10 FinAnswer Express – Schedule 115 The tables below present the cost-effectiveness findings of the Idaho FinAnswer Express program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 IRP 69% east system load factor decrement. Table 1a: FinAnswer Express Annual Program Costs – RIM and UCT Perspectives Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $182 $67,063 $44,644 $166,233 $354,692 $632,813 $1,311,514 Industrial $1,298 $4,051 $8,165 $52,362 $2,034 $67,910 $5,820 Total $1,480 $71,113 $52,809 $218,595 $356,726 $700,723 $1,317,334 Table 1b: FinAnswer Express Annual Program Costs – PTRC, TRC, and PCT Perspectives Evaluation Engineering Costs Utility Admin Administration Incentives Total Utility Costs Net Participant Incremental Cost Commercial $182 $67,063 $34,153 $127,168 $278,438 $507,003 $638,226 Industrial $1,298 $4,051 $8,165 $52,362 $2,034 $67,910 $5,820 Total $1,480 $71,113 $42,318 $179,530 $280,472 $574,913 $644,046 Table 2a: FinAnswer Express Savings by Measure Type – RIM and UCT Perspectives Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 2,219,662 96% 2,130,876 76% 1,619,465 12 Industrial 14,311 96% 13,739 76% 10,441 12 Total 2,233,973 2,144,614 1,629,907 Table 2b: FinAnswer Express Savings by Measure Type – PTRC, TRC, and PCT Perspectives Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Commercial 1,695,962 96% 1,628,124 76% 1,237,374 12 Industrial 14,311 96% 13,739 76% 10,441 12 Total 1,710,273 1,641,862 1,247,815 11 Table 3: IRP 69% Load Factor Decrement All Measures AC: IRP 69% LF Decrement Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0816 $938,487 $1,102,393 $163,906 1.175 Total Resource Cost Test (TRC) No Adder 0.0816 $938,487 $1,002,175 $63,688 1.068 Utility Cost Test (UCT) 0.0466 $700,723 $1,309,218 $608,495 1.868 Rate Impact Test (RIM) $1,788,881 $1,309,218 ($479,664) 0.732 Participant Cost Test (PCT) $847,429 $1,376,046 $528,617 1.624 Lifecycle Revenue Impacts ($/kWh) $0.0000155022 Discounted Participant Payback (years) 5.30 Cost Effectiveness Inputs at the Measure Level Rocky Mountain Power and Idaho Office of Energy Resources (OER) has an Energy Efficiency Incentive Agreement in place for completion of public school projects. The Agreement provides for a cooperative relationship to maximize the use of federal funding to promote and execute additional cost effective energy efficiency measures in public schools within the Company’s territory. Because the participant costs reflected total project costs which included non incentivized measures from the Company. All associated costs and energy savings from the school programs were removed from cost effectiveness tests for PTRC, TRC and PCT perspectives 12 Agricultural Energy Services (Irrigation Energy Savers) – Schedule 155 The tables below present the cost-effectiveness findings of the Idaho Agriculture program based on Rocky Mountain Power’s 2011 costs and savings estimates. The Utility discount rate is from the 2011 Integrated Resource Plan (IRP). Cost-effectiveness was tested using the 2011 medium IRP 20% east system commercial cooling load factor decrement. Table 1: Agriculture Annual Program Costs Marketing and Program Development Utility Admin Administration Evaluation Incentives Total Utility Costs Net Participant Incremental Cost Equipment Exchange & Pivot/Linear Upgrade $1,753 $16,104 $172,796 $667 $143,198 $334,518 $207,940 System Design $685 $6,294 $67,531 $261 $81,692 $156,462 $207,632 Total $2,438 $22,398 $240,326 $928 $224,890 $490,980 $415,572 Table 2: Agriculture Savings by Measure Type Gross kWh Savings Realization Rate Adjusted Gross Savings Net to Gross Percentage Net kWh Savings Measure Life Equipment Exchange & Pivot/Linear Upgrade 1,697,132 100% 1,697,132 74% 1,247,392 5.00 System Design 663,259 100% 663,259 74% 487,495 7.00 Total 2,360,391 2,360,391 1,734,888 Table 3: IRP 20% Commercial Cooling Load Factor Decrement All Measures AC: IRP 20% Commercial Cooling Levelized $/kWh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder 0.0757 $681,662 $941,267 $259,605 1.381 Total Resource Cost Test (TRC) No Adder 0.0757 $681,662 $855,697 $174,035 1.255 Utility Cost Test (UCT) 0.0545 $490,980 $855,697 $364,718 1.743 Rate Impact Test (RIM) $951,431 $855,697 ($95,734) 0.899 Participant Cost Test (PCT) $565,404 $851,354 $285,950 1.506 Lifecycle Revenue Impacts ($/kWh) $0.0000046450 Discounted Participant Payback (years) 2.82 (Proprietary and Confidential)       2011 Idaho Irrigation Post Peak Report Executive Sponsor Douglas N. Bennion, P.E. Study Team Manager Kevin W. Thompson Principal Authors Mike Anderson Jake Barker Bill Comeau Tony Perkins Contributors Scott Murdock Susan Smith Nathan Wilson November 2011 Photograph courtesy USDA NRC    2011 Idaho Irrigation Post Report   Field Engineering Page 1 of 19 11/2011        ~~ROCKY MOUNTAIN POWER A <>MSKlH Of " .. ,,,,,,,,,"p    2011 Idaho Irrigation Post Report   Field Engineering Page 2 of 19 11/2011   Table of Contents EXECUTIVE SUMMARY .......................................................................................................................4 SYSTEM LOAD DATA ANALYSIS .......................................................................................................5 Idaho system load data analysis ...............................................................................................................5 Idaho irrigation load .................................................................................................................................5 Geographic Area ......................................................................................................................................5 Crops load detail .......................................................................................................................................8 Idaho Weather ..........................................................................................................................................9 Idaho Transmission System ...................................................................................................................10 IRRIGATION LOAD CONTROL PROGRAM DETAILS ...............................................................11 Review of Program Results ...................................................................................................................11 Load control events in 2011 ...............................................................................................................11 System Concerns with Irrigation Program ............................................................................................15 Voltage issues System Optimization .................................................................................................15 Harmonic issues .................................................................................................................................17 CONCLUSIONS .....................................................................................................................................19            2011 Idaho Irrigation Post Report   Field Engineering Page 3 of 19 11/2011   ~~ROCKY MOUNTAIN POWER A <>MSKlH Of " .. ,,,,,,,,,"p    2011 Idaho Irrigation Post Report   Field Engineering Page 4 of 19 11/2011   EXECUTIVE SUMMARY Rocky Mountain Power conducts an Idaho post peak irrigation system review to understand the impacts of Idaho irrigation load, and in particular the impact of the Idaho Irrigation Load Control Program. This annual report communicates the findings, conclusions, and recommendations resulting from the review. First, the 2011 report analyzes system load data and irrigation load patterns during the 2011 irrigation season (May 1 through August 31). It discusses total Rocky Mountain Power Idaho load versus Idaho irrigation load, and irrigation load control program participants’ load versus non-participants’ load. In addition, it discusses how crop rotations and weather affect irrigation, and summarizes the transmission system load in heavy use irrigation areas. Second, the report analyzes the demand side management Irrigation Load Control Program and the affects the program has on the transmission and distribution system. It discusses the details of the three dispatch events for 2011 and some of the system concerns with the program, including voltage and harmonic issues. Along with the concerns are resolutions that are being implemented or recommended. Finally, the report identifies a number of informational conclusions and a few recommendations. Some of the key informational points from the report are: • Irrigation load in Idaho represents 42% of the State total peak load. • Idaho has just over 4,700 irrigation customers and 45% of these customers participate in the Irrigation Load Control Program. The program was dispatched three times in 2011 and is estimated to have curtailed an average of 164 megawatts each time. • In 2008 the company started noticing high voltage swings on the distribution system whenever the Irrigation Load Control Program was dispatched. A project was initiated in 2011 with work anticipated to be completed by April 2012. As a result, in 2011 the company worked with irrigators to limit load on distribution circuits with voltage concerns. To address the problem, a settlement was reached with the Idaho Commission staff, the Idaho Irrigation Pumper Association, and Rocky Mountain Power. The settlement stated that Rocky Mountain Power would invest a minimum of $1.3 million before the 2012 irrigation season to alleviate known voltage issues.    2011 Idaho Irrigation Post Report   Field Engineering Page 5 of 19 11/2011   SYSTEM LOAD DATA ANALYSIS Idaho Irrigation Load Irrigated agricultural land in southeastern Idaho served by Rocky Mountain Power is primarily in the Snake River Plain. This area is an inverted triangle shape from Shelley on the south to Dubois on the northwest and Ashton on the northeast; Arco on the west to Ririe (northeast of Idaho Falls) on the east. Other areas in Idaho with irrigation agricultural land served by Rocky Mountain Power are: Preston, Malad, Marsh Valley, Montpelier, and in the Gem Valley around Grace, Bancroft and Chesterfield (Figure 1). These other areas have much less irrigation load than the primary area in the Snake River Plain. Irrigation water comes from either surface water—rivers, canals, ditches—or groundwater from wells. The irrigation customers connected to the Rocky Mountain Power system use pumps driven by electric motors to move water from the source, and pressurize it into an irrigation system. Electric pump motor sizes reach 1000 horsepower. The larger pump motors are used for drawing groundwater out of some of the deep wells in the area. Irrigation systems can be a center pivot system1 (Figure 2), a wheel line2 (Figure 3), or hand lines3                                                              1 A pipe with sprinklers carried by wheeled towers in an arc around a center point. 2 A pipe with sprinklers attached on large wheels that is moved in a line across a field. 3 Pipes with sprinklers attached that are laid in a line on the ground. Figure 1. Geographic Area    2011 Idaho Irrigation Post Report   Field Engineering Page 6 of 19 11/2011   (Figure 4). A center pivot system will run continuously for the time it takes for a complete cycle, usually hours or days. Wheel lines and hand lines will run for 8 to 24 hours then be turned off to be moved manually. On the 2011 Idaho system peak day, July 18th, Rocky Mountain Power’s Idaho load4 was 770 megawatts. On this day, it is estimated 76% of the irrigation customers in the load control program with controllable devices were operating. For purposes of this report it is assumed the total irrigation population in Idaho operated at a 76% diversity factor on the peak day. Using customer account data, there was 428 megawatts of Idaho irrigation undiversified demand in July. Applying the 76% diversity factor against the 428 megawatts of demand, yields 325 megawatts of total Idaho irrigation load and 445 megawatts of non-irrigation load on the peak day (Figure 5).   Figure 5. Idaho System Loading                                                              4 Idaho load was 12% of the Rocky Mountain Power total system load 58% 42% Idaho System Loading 07‐18‐2011* Non‐Irrigation Load, 445 MW Irrigation Load: 325 MW Figure 2. Typical Center Pivot Figure 3. Typical Wheel Line – Photograph courtesy USDA NRCS Figure 4. Typical Hand Line – Photograph courtesy USDA ERS    2011 Idaho Irrigation Post Report   Field Engineering Page 7 of 19 11/2011   Rocky Mountain Power had 4,765 irrigation customers connected in the State of Idaho in 2011. The undiversified average demand for these 4,765 irrigation customers was 428 megawatts in July 2011. Of these 4,765 customers there are 2,165, or 45%, that participate in the company’s Irrigation Load Control Program (Figure 6).    In July, the total undiversified demand of customers participating in the load control program was 258 megawatts. Applying the same 76% diversity factor from above to these 258 megawatts yields 196 megawatts of diversified load from customers participating in the load control program in July. Therefore on the peak day—July 18th—of the 325 megawatts of total irrigation load in Idaho, 196 megawatts of load was utilized by load control program participants, and 129 megawatts was utilized by non-participants (Figure 7).   Figure 7. Idaho Irrigation Customer load 40% 60% Idaho Irrigation Customer Load Non‐Load Controlled: 129 MW Load Controlled: 196 MW 55% 45% Idaho Irrigation Customers Total non Load Control Irrigation Customers Total Number of Irrigation Load Control Customers Figure 6. Idaho Irrigation Customers    2011 Idaho Irrigation Post Report   Field Engineering Page 8 of 19 11/2011   Idaho and Utah Crops Load Detail The primary crops grown in the Rocky Mountain Power service territory in southeastern Idaho and in Utah are alfalfa, barley, corn, animal feed grains, potatoes, and wheat. Wheat, barley, and other grains are watered typically in late May, June and July, but watering stops in late July or early August to allow the grains to dry for harvest. Potatoes and corn are watered through the whole summer, in June, July and August. Alfalfa watering stops twice each season in Idaho to allow the crop to be cut, dried, and harvested. The dates these happen vary each year, but generally occur in mid- to late-June and in late- July to early August. Figure 8 below represents the periods of highest load potential using 10 year historical data from the watering periods of the most common crops in the program. The 2010 and 2011 load data for the Big Grassy substation which primarily serves irrigation load is included to denote the variability for any given year.   Figure 8. Irrigation Crop Detail Most of the variability portrayed in the graph is due to weather and the maturation period of the crops. Alfalfa accounts for around 51% of the crop within the program and watering discontinues twice in Idaho each season to allow for drying and harvesting. Although average crop and weather patterns provide a good indicator of what may occur, each individual year may fluctuate drastically. 0 20 40 60 80 100 120 Ma y  31 ,  20 0 7 Ju n  7,  20 0 7 Ju n  14 ,  20 0 7 Ju n  21 ,  20 0 7 Ju n  28 ,  20 0 7 Ju l  5,  20 0 7 Ju l  12 ,  20 0 7 Ju l  19 ,  20 0 7 Ju l  26 ,  20 0 7 Au g  2,  20 0 7 Au g  9,  20 0 7 Au g  16 ,  20 0 7 Au g  23 ,  20 0 7 Au g  30 ,  20 0 7 PE R C E N T A G E  OF  TO T A L  IR R I G A T I O N  LO A D  BY  CR O P Feed Grains UT Corn UT Alfalfa UT Barley ID Alfalfa ID Wheat ID Potatoes ID Big Grassy Sub '10 (%) Big Grassy Sub '11 (%)    2011 Idaho Irrigation Post Report   Field Engineering Page 9 of 19 11/2011   Idaho Weather Irrigation of Southeastern Idaho crops is necessary because the weather during the summer growing season is typically warm and dry. The amount of spring precipitation in May and June, effects when irrigation begins. When there is more precipitation in May and June, irrigation begins later. June, July and August air temperature and precipitation affect the total summer irrigation electrical load. Higher air temperatures and lower precipitation lead to higher summer irrigation load, since more irrigation water will be needed on the crop. Data on precipitation, temperature, and power demand for June through August of 2011 are shown in Figure 9 below.   Figure 9. June – August 2011: Weather and Power Use According to monthly climate summary reports by the Pocatello area branch of the National Weather Service, the summer of 2011 was drier than normal, and August was warmer than normal. Normal precipitation total for these summer months is 2.22 inches. The observed precipitation total for June, July, and August 2011 was 1.15 inches—about 50 percent of normal. Temperatures in June 2011 were 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 10 20 30 40 50 60 70 80 90 100 Te m p .  de g .  F Da i l y  Av g .  Po w e r  MV A June ‐August 2011 Weather and Power Use 2011 Daily Precip., inches 2011 Daily High Temp,  degrees F 2011 Big Grassy + Jefferson  Daily Avg. Power (MVA)    2011 Idaho Irrigation Post Report   Field Engineering Page 10 of 19 11/2011   cooler than normal by about four degrees on average, July 2011 was about normal, and August 2011 was warmer than normal by about three degrees on average. In August 2011 there were seven more days than normal with the high temperature above 90 degrees. Idaho Transmission System Most of Rocky Mountain Power’s southeastern Idaho irrigation customers are served by circuits that originate at one of the eight major transmission substations in the area. These transmission substations and the lower voltage distribution substations and circuits function as a system to supply power to about 91% of all irrigation loads in Idaho. The transmission substations, all in the Snake River Plain in southeastern Idaho, are Amps, Scoville, Big Grassy, Bonneville, Cinder Butte, Goshen, Jefferson and Rigby. These substations delivered 236 megawatts of non-diversified irrigation peak demand to Irrigation Load Control Program customers in July of 2011, see Figure 10 below. The curtailment events in this report were not in response to any limitation on these eight substations since they have adequate transmission capacity to serve all the connected irrigation customers in the area. Rather, the curtailment events are due to other factors affecting the broader system.     0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 DA T E 10 ‐Ap r ‐11 20 ‐Ap r ‐11 30 ‐Ap r ‐11 10 ‐Ma y ‐11 20 ‐Ma y ‐11 30 ‐Ma y ‐11 9‐Ju n ‐11 19 ‐Ju n ‐11 29 ‐Ju n ‐11 9‐Ju l ‐11 19 ‐Ju l ‐11 29 ‐Ju l ‐11 8‐Au g ‐11 18 ‐Au g ‐11 28 ‐Au g ‐11 7‐Se p ‐11 17 ‐Se p ‐11 27 ‐Se p ‐11 7‐Oc t ‐11 17 ‐Oc t ‐11 27 ‐Oc t ‐11 MV A Summer Daily Peaks ‐Idaho Transmission 8 SUB TOTAL Figure 10. Summer Daily Peaks - Idaho Transmission    2011 Idaho Irrigation Post Report   Field Engineering Page 11 of 19 11/2011   IRRIGATION LOAD CONTROL PROGRAM DETAILS Irrigation Load Control (Schedules 72 & 72A) is offered to irrigation customers receiving electric service on Schedule 10, Irrigation and Soil Drainage Pumping Power Service. Participants allow the curtailment of their electricity usage as prescribed in Schedules 72 and 72A in exchange for a participation credit. For most participants their irrigation equipment is set up with a dispatchable two- way control system giving the Company control over their loads. Participants are provided a day-ahead notification in advance of control events and have the choice to opt-out of a limited number of dispatch events per season. Load control events in 2011 The 2011 Irrigation Load Control Program was available for 52 hours from June 1st to August 31st. The program had the estimated potential to curtail 196 megawatts of load on July 18th, the peak day. In 2011 Rocky Mountain Power had three load control events. The first load control dispatch was on June 29, 2011 and was estimated to reduce peak system load by 168 megawatts in Idaho. This curtailment represented 69% of the potential 2455 megawatts of available load control customer’s peak demand. The second dispatch occurred on July 7, 2011 and was estimated to reduce system peak 160 megawatts. This curtailment represented 62% of the potential 2586 megawatts of available load control customer’s peak demand. The third dispatch was on July 11, 2011 and was estimated to reduce the system peak by 165 megawatts. This curtailment represented 64% of the potential 258 megawatts of available load control customer’s peak demand. Idaho load control events for 2011 achieved 62% to 69% of the available participant peak load.                                                              5 Demand fluctuates month to month. June’s undiversified demand for load control customers was 245 megawatts. 6 July’s undiversified demand for load control customers was 258 megawatts.    2011 Idaho Irrigation Post Report   Field Engineering Page 12 of 19 11/2011   First Event: June 29, 2011 Irrigation Conditions: Wetter than normal conditions. The week had above average temperatures with Alfalfa watering being down for cutting. Dispatch Factors: • High temperatures: Second consecutive day of very high temperatures. Peak load was expected to be extremely high. • Generation: The Lakeside plant in Utah was offline for repairs through July 8, 2011. • Transmission: Capacity on the Point of Rocks-Platte line was de-rated for maintenance which severely limits the ability to move wind and coal generated power from Wyoming into Idaho. Program Performance Extrapolating data from the largest irrigation load substations* suggests total Idaho program performance around 168 megawatts on June 29, 2011, providing for an estimated 69% of the potential 245 megawatts of available load control customer’s peak demand. 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 DA T E 1: 2 0 : 0 0  AM 2: 4 5 : 0 0  AM 4: 1 0 : 0 0  AM 5: 3 5 : 0 0  AM 7: 0 0 : 0 0  AM 8: 2 5 : 0 0  AM 9: 5 0 : 0 0  AM 11 : 1 5 : 0 0  AM 12 : 4 0 : 0 0  PM 2: 0 5 : 0 0  PM 3: 3 0 : 0 0  PM 4: 5 5 : 0 0  PM 6: 2 0 : 0 0  PM 7: 4 5 : 0 0  PM 9: 1 0 : 0 0  PM 10 : 3 5 : 0 0  PM MV A 6/29/2011 Curtailment PROJECTED W/O CURTAIL SCADA SUBS' LOAD *Data from the Amps, Scoville, Big Grassy, Bonneville, Cinder Butte, Goshen, Jefferson and Rigby substations. These substations represent approximately 91% of the Idaho Irrigation Load Control Program participants.    2011 Idaho Irrigation Post Report   Field Engineering Page 13 of 19 11/2011   Second event: July 7, 2011 Irrigation Conditions: This week was above average in temperature in Idaho. All crops were in their watering cycle. Dispatch Factors: • High temperatures: Second consecutive day of very high temperatures. Peak load was expected to be extremely high. • Generation: Huntington 2 offline. Program Performance Extrapolating data from the largest irrigation load substations *suggests total Idaho program performance around 160 megawatts on July 7, 2011, providing for an estimated 62% of the potential 258 megawatts of available load control customer’s peak demand. 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 DA T E 1: 1 5 : 0 0  AM 2: 3 5 : 0 0  AM 3: 5 5 : 0 0  AM 5: 1 5 : 0 0  AM 6: 3 5 : 0 0  AM 7: 5 5 : 0 0  AM 9: 1 5 : 0 0  AM 10 : 3 5 : 0 0  AM 11 : 5 5 : 0 0  AM 1: 1 5 : 0 0  PM 2: 3 5 : 0 0  PM 3: 5 5 : 0 0  PM 5: 1 5 : 0 0  PM 6: 3 5 : 0 0  PM 7: 5 5 : 0 0  PM 9: 1 5 : 0 0  PM 10 : 3 5 : 0 0  PM MV A 7/7/2011 Curtailment PROJECTED W/O CURTAIL SCADA SUBS' LOAD *Data from the Amps, Scoville, Big Grassy, Bonneville, Cinder Butte, Goshen, Jefferson and Rigby substations. These substations represent approximately 91% of the Idaho Irrigation Load Control Pr r m r i i n .    2011 Idaho Irrigation Post Report   Field Engineering Page 14 of 19 11/2011   Third Event: July 11, 2011 Irrigation Conditions: All crops were in their watering cycle and the area had higher than average temperatures. Dispatch Factors: • High temperatures: Second consecutive day of very high temperatures. Peak load was expected to be extremely high. • Generation: Cholla 4 offline with a tube leak. Program Performance Extrapolating data from the largest irrigation load substations* suggests total Idaho program performance around 165 megawatts on July 11, 2011, providing for an estimated 64% of the potential 258 megawatts of available load control customer’s peak demand. 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 DA T E 1: 1 5 : 0 0  AM 2: 3 5 : 0 0  AM 3: 5 5 : 0 0  AM 5: 1 5 : 0 0  AM 6: 3 5 : 0 0  AM 7: 5 5 : 0 0  AM 9: 1 5 : 0 0  AM 10 : 3 5 : 0 0  AM 11 : 5 5 : 0 0  AM 1: 1 5 : 0 0  PM 2: 3 5 : 0 0  PM 3: 5 5 : 0 0  PM 5: 1 5 : 0 0  PM 6: 3 5 : 0 0  PM 7: 5 5 : 0 0  PM 9: 1 5 : 0 0  PM 10 : 3 5 : 0 0  PM MV A 7/11/2011 Curtailment PROJECTED W/O CURTAIL SCADA SUBS' LOAD   *Data from the Amps, Scoville, Big Grassy, Bonneville, Cinder Butte, Goshen, Jefferson and Rigby substations. These substations represent approximately 91% of the Idaho Irrigation Load Control    2011 Idaho Irrigation Post Report   Field Engineering Page 15 of 19 11/2011   System Concerns with Irrigation Load Control Program Voltage Issues System Optimization Starting in 2008, Rocky Mountain Power noticed voltage issues on circuits and substations with a large amount of irrigation customers. The following factors were found to contribute to this issue: • The distribution system in Idaho that serves rural, primarily irrigation areas has capacitors that are manually engaged at the beginning of each season as irrigation load increases. The capacitors are disengaged at the end of the season, manually as load decreases. • Irrigation motor loads create inductive and resistive line losses which reduce system voltage. These losses are compensated by the capacitors, which raise system voltage to the proper range. • Irrigation load control events occur while the capacitors are engaged. Each capacitor would have to be manually disengaged then re-engaged after an event, to keep voltage from rising above the proper range during the event. This is not reasonable to do manually. • During an irrigation load control dispatch a high voltage condition is magnified on circuits that serve predominately irrigation loads with a high percentage of Irrigation Load Control Program participants. On these circuits when program load is curtailed the voltage goes high and affects other customers on the circuit. With the instantaneous drop in load, the voltage regulators do not have time to react to maintain appropriate voltage. • Due to (1) the popularity of the program, (2) the concentration of loads on agricultural dominant substations and (3) circuits not having the ability to scale loads, load curtailment events were inadvertently causing high voltage on some circuits or substations. To mitigate some of the issues identified, Rocky Mountain Power installed a 3-step capacitor bank on the 69 kilovolt bus at Big Grassy substation before the 2011 irrigation season. The addition of the stepped capacitor bank improved voltage regulation on the 69 kilovolt bus at Big Grassy substation but did not resolve all the other substation and circuit issues, see Figure 11 below. Furthermore, the irrigation load control program resources in 2010 were dispatched in three or four blocks over 8 to 12 hours. While the dispatch blocks allowed the program to be operationally effective, it negatively impacted the programs cost-effectiveness.    2011 Idaho Irrigation Post Report   Field Engineering Page 16 of 19 11/2011   To address the system and cost-effectiveness issues, a settlement was reached in 2011 with the Idaho Commission staff, the Idaho Irrigation Pumper Association, and Rocky Mountain Power. The settlement stated that Rocky Mountain Power would invest a minimum of $1.3 million dollars before the 2012 irrigation season to reduce the constraints on the system during high participation in the Irrigation Load Control Program. To comply with the settlement agreement Rocky Mountain Power studied the distribution system to determine which circuits were affected the most by the Irrigation Load Control Program. It was determined that fourteen circuits on seven substations were most susceptible to high voltage issues relating to the program. Rocky Mountain Power engineered a solution to the problem by replacing manual capacitor banks with automatic sensing capacitors that would turn on and off automatically to maintain acceptable voltage levels. On these 14 circuits, 46 automatic switched capacitors are being installed and 59 manual capacitors are being removed. This work is scheduled to be completed before the start of the 2012 irrigation season. In addition to the capacitors, voltage meters will be installed on the seven substations supplying the 14 circuits. Four additional meters will be placed out on the distribution circuits to monitor voltages. These meters allow for optimization of the new capacitor controls and ensure they are working properly. 64 66 68 70 72 74 76 5/ 1 5/ 5 5/ 9 5/ 1 3 5/ 1 7 5/ 2 1 5/ 2 5 5/ 2 9 6/ 2 6/ 6 6/ 1 0 6/ 1 4 6/ 1 8 6/ 2 2 6/ 2 6 6/ 3 0 7/ 4 7/ 8 7/ 1 2 7/ 1 6 7/ 2 0 7/ 2 4 7/ 2 8 8/ 1 8/ 5 8/ 9 8/ 1 3 8/ 1 7 8/ 2 1 8/ 2 5 8/ 2 9 Vo l t a g e  in  KV Big Grassy Voltage 2009 2010 2011 Figure 11. Big Grassy Voltage    2011 Idaho Irrigation Post Report   Field Engineering Page 17 of 19 11/2011   Harmonic Issues  Rocky Mountain Power has seen a substantial increase in harmonic issues in 2011. The largest contributors to the harmonic pollution on Rocky Mountain Power’s irrigation feeders are unfiltered variable frequency drives used to drive large irrigation pumps. Harmonic pollution is unrelated to Idaho’s irrigation load control program. Irrigation center-pivot swing arms walked off of their prescribed track, due to harmonic pollution. Center-pivot swing arms follow buried trace wires to determine which route to follow. The signal on the trace wires is similar to the 13th, 17th, and 19th harmonics currents produced by unfiltered variable frequency pump motor drives. The antenna array the center-pivot uses to follow the trace wire was being influenced by harmonic pollution and failed to follow its intended path. Figure 12 below shows the typical antenna array that is used to follow the buried trace wires. Three pivots left their intended path in 2009, one pivot left its intended path in 2010 and eight pivots left their intended paths in 2011. Five of the troubled pivots in 2011 left their intended path multiple times. Efforts to mitigate the harmonic pollution issues included several strategies. First, Rocky Mountain Power provided better feedback and education to irrigators and electrical contractors as to the importance and application of filtering for their variable frequency drives to insure IEEE 519 compliance. Some of Rocky Mountain Power’s customers have been unwilling to add harmonic filtering to their variable frequency drives. Rocky Mountain Power will continue to work with these customers to reduce harmonic pollution levels. Second, Rocky Mountain Power reviewed susceptibility issues with center-pivot system designers and manufacturers. Center-pivot manufacturers were unwilling to change their swing arm tracking design because according to them, the design has worked for the last 30 years with very few problems. Variable frequency drive motors were not widely used in irrigation systems until recent years. Also, manufacturers are now promoting GPS tracking swing arms which will likely replace the older technology in future years, and alleviate this problem. Figure 12. Typical Center Pivot Antenna Array    2011 Idaho Irrigation Post Report   Field Engineering Page 18 of 19 11/2011   Last, Rocky Mountain Power must continually monitor the status of line-type capacitor banks. Capacitors act as higher frequency sinks for higher order harmonics. If one bank is not working correctly, harmonic pollution levels on the system could affect center-pivot swing arm tracking. ~~ROCKY MOUNTAIN POWER A <>MSKlH Of " .. ,,,,,,,,,"p    2011 Idaho Irrigation Post Report   Field Engineering Page 19 of 19 11/2011   CONCLUSIONS The report analysis leads to these conclusions: • The Idaho irrigation load represents a significant percentage of Idaho’s peak load, 42%. • The Irrigation Load Control Program was dispatched three times in 2011 and is estimated to have curtailed an average of 164 megawatts of the available participant peak demand, 64% of the available load control customer’s peak demand.   • The distribution system improvements that will be in place before the 2012 irrigation season are intended to address the known voltage issues. Future distribution circuit and voltage monitoring will need to continue to make sure the system is operating properly. • Harmonic pollution on Rocky Mountain Power’s irrigation distribution circuits continues to be a problem and has caused irrigation pivots to walk out of alignment and contact distribution lines.