20080919Bumgarner Direct.pdf

4fECElVEO
_SEP 19 AMtOi;58
IDAHO PUBliC
UTILITIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE )
APPLICATION OF ROCKY )
MOUNTAIN POWER FOR )
APPROVAL OF CHANGES TO ITS )
ELECTRIC SERVICE SCHEDULES )
AND A PRICE INCREASE OF $5.9 )
MILLION, OR 4.0 PERCENT )
CASE NO. PAO..E-08-07
Direct Testimony of
Jeffery W. Bumgarner
ROCKY MOUNTAIN POWER
CASE NO. PAC-E-08-07
September 2008
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Please state your name, business address and present position with Rocky
Mountain Power (the Company), a division of PacifCorp.
My name is Jeffery W. Bumgarner and my business address is 825 NE
4 Multnomah Boulevard, Suite 600, Portland, Oregon, 97232. I am currently
5 employed as the Director of Demand Side Management for Rocky Mountain
6 Power.
7 Qualifications
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Briefly describe your educational and professional background?
I received Bachelor of Science degrees in Finance, Business Management, and
Sociology from the University of Oregon in 1981, and completed the University
of Idaho's Professional Utility Executives for Change summer program in 2003.
I have been employed by PacifiCorp since August 26, 1981. My occupational
experience in the electric utility industry includes assignents in customer care
(call center management, metering and biling); marketing; non-regulated new
product and service development; regulated new product and service
development; new business development; and demand-side management program
design and implementation. I have been in my current position as Director of
Demand Side Management since July 2000.
What are your responsibilties as Director of Demand Side Management
("DSM") for Rocky Mountain Power (the "Company" or "RMP")?
My responsibilities include the development of DSM strategy and management of
DSM program development, implementation and delivery. I work closely with
the Company's integrated resource planing department to identify and
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1 incorporate DSM resource opportnities into the resource planning process. DSM
2 program cost-effectiveness validation, decisions on new program introductions,
3 program modifications and program terminations, as well as DSM investment
4 recovery all fall within my departent's area of responsibility. My
5 responsibilities span PacifiCorp's six state service terrtories.
6 Purpose of Testimony
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What is the purpose of your testimony in this proceeding?
The purpose of my testimony is to provide cost analysis information which
demonstrates that the DSM investments made by Rocky Mountain Power on
behalf of their Idaho customers were prudently incurred. Additionally, I wil
provide an overview of the Company's DSM programs and results the period
from January 1, 2006, through December 31, 2007. This period is in close
alignent with the inception of Schedule 191, the Customer Efficiency Services
Rate Adjustment (DSM surcharge), implemented May 1, 2006, and included
DSM program expenses on and after January 12,2006.
Are you sponsoring exhibits as part of your direct testimony?
Yes. I am sponsoring Exhibit No. 28 which was prepared under my supervision
and direction. Exhibit No. 28 documents the benefits and costs and cost-
effectiveness results of Rocky Mountain Power's Idaho DSM programs.
20 DSM Prudency Demonstration
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Why is Rocky Mountain Power requesting a finding of prudence for their
DSM investments in this case?
In Order No. 30543 approving the increase in the Company's DSM surcharge the
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Idaho Public Utility Commission directed the Company to "provide the
information necessary for a prudency determination in its next general rate
case.
Have the Company's DSM program's undergone any reviews or
evaluations?
Yes. The Company has conducted reviews of the load management programs
through annual program reports and presentations to the Idaho Public Utility
Commission staff. Program pedormance results, including cost effectiveness
assessments, were also filed on the energy efficiency program portfolio for
reporting periods Januar 12, 2006 through March 31, 2007, and January 1, 2007
through December 31, 2007. In addition, some of the programs included within
the Idaho DSM portfolio have been part of multi-state evaluations conducted by
independent third-party evaluators hired to assess program operations, savings
contributions and cost effectiveness.
Have these reviews and the analysis results shown in Exhibit No. 28 found
Rocky Mountain Power's Idaho DSM programs are cost-effective?
Yes. The programs have been cost-effective from both a Total Resource Cost
(TRC) and Utility Cost Test (UCT) perspective. Page 1 of Exhibit No. 28 shows
that the TRC benefit-to-cost ratio of3.6 for the overall DSM portfolio (load
management and energy efficiency excluding NEEA costs and savings) is cost-
effective, with a net TRC benefit to customer of over $9 milion. The TRC and
UCT cost for the load management programs were $9.78/kW-yr and $3 L.50/kW-
yr, respectively, and can be compared against utilty avoided costs of$55.50/kW-
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yr. The levelized TRC and UCT cost of the energy efficiency programs were 3.9
2 cents and 2.5 cents per kWh, respectively, compared against utilty avoided costs
3 of 8.2 cents. The benefit-to-cost ratios incorporate a conservative 10.41 weighted
4 measure life, do not include non-energy benefits and are calculated utilzing net
5 savings, i.e., inclusive of the impacts of free-rider-ship. As an overall portfolio the
6 DSM investments were also cost-effective from both a Rate Impact Test (RIM)
7 and Participant Cost Test (PCT) perspective with benefit-to-cost ratios of 1.126
8 and 9.990, respectively. Looking at the energy efficiency portfolio separately, the
9 energy effciency portfolio was cost-effective under all cost tests except the RIM
10 test where the benefit-to-cost ratio was. 72.
11 DSM Programs
12 Q.Please provide an overview of Rocky Mountain Power's Idaho DSM
13 program portfolio.
14 A.Rocky Mountain Power worked with our customers and the Idaho Commission in
15 tailoring a set of DSM service and financial incentives that provide the greatest
16 opportnity for participation by all customer sectors. The DSM program portfolio
17 provides service incentives to help customers identify energy management and
18 savings opportnities as well as financial incentives to help lower customer
19 energy costs. The financial incentives are designed to assist customer in cost-
20 justifying the completion of energy efficiency projects that lower their energy
21 usage and or improve the energy utilization or efficiency of their facility.
22 Complementing Rocky Mountain Power's DSM program portfolio is the
23 Company's sponsorship of the Northwest Energy Efficiency Allance (NEEA).
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NEEA promotes the regional advancement of energy efficiency efforts, from
assisting with the delivery of utility program services, through education, training
and working with manufacturers and retailers, to helping with the
commercialization of emerging technologies and the advancement of state and
regional energy codes and standards. Communications and awareness building
support of the Company's DSM program portfolio is accomplished through
customer newsletters (Voices), specific program advertising (i.e. See ya later
refrgerator media advertising), the Company's "Do the Bright Thing" campaigns,
the Company's website under the heading "Save energy & money," retailer point
of purchase information and retailer account management, the Company's
Customer and Community Management team and DSM program and project
management personneL. Virtally all customers have had the opportnity to
participate and a great many have directly benefited from the programs offered.
As wil be described later in my testimony, all customers have indirectly benefited
through enhanced cost-efficiencies as a result of this portfolio.
Wil your testimony address all the DSM programs and supporting activity
outlied in your overview of Rocky Mountain Power's DSM program
portfolio above?
My testimony wil describe the vast majority of the activities just covered with the
limited exception of those programs, program components, or supporting
communications not directly approved by the Commission for recovery through
Schedule 191, the DSM surcharge. The Company's large customer curtailment
contracts, the agrcultural load management program participation credits, and
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non-program specific customer communication and education costs wil not be
addressed in my direct testimony or exhibit. These costs are included in the
Company's general rate case filing.
What DSM programs are available to Rocky Mountain Power customers
subject to the DSM surcharge?
The Company offers eight DSM programs, consisting of three residential, three
agrcultural, and two business programs. Collectively, the programs offer a wide
range of services and financial support capable of assisting customers with
virtually any energy efficiency project they wish to pursue. Through this review,
the Company wil demonstrate the programs are prudent and cost-effective for
Idaho. The eight DSM programs are as follows:
Residential Programs
Schedule 21 - Low Income Weatherization
Schedule 117 - Refrgerator/Freezer Recycling
Schedule 118 - Home Energy Savings Incentive
Agricultural Programs
Schedule 72 - Irrgation Load Control Credit Rider
Schedule 72A - Irrgation Load Control Credit Rider Dispatch Program
Schedule 155 - Agrcultural Energy Services Schedule
Business Programs
Schedule 115 - FinAnswer Express
Schedule 125 - Energy FinAswer
In addition to the eight programs, the Company's Idaho portion of the NEEA
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sponsorship is funded through the revenues collected from the DSM surcharge.
Please provide a brief description of the residential programs offered.
The Low Income Weatherization Program is applicable to income qualifyng
residential customers that either own or rent single family, multi-family, or
manufactured home dwellings in all terrtory served by the Company in the State
of Idaho through Schedule 21. The program is administered through parnerships
with local community action agencies including Eastern Idaho Community Action
Partnership in Idaho Falls and SouthEastern Idaho Community Action Agency in
Pocatello. Agency staff determine income eligibility, analyze homes using a
DOE approved audit, and install eligible measures. The program provides
incentives covering 75 percent of the cost of eligible measures directly to our
partnering agencies. The agencies leverage Rocky Mountain Power's funding
with state and federal grants so that services are at no cost to paricipating
households. Weatherization measures including attic, floor and wall insulation,
and upgraded windows are installed in electrically heated homes if determined
cost-effective through an approved audit. Other measures available to electrically
heated homes include ventilation, duct insulation and sealing, weather stripping
and caulking, thermal doors, timed thermostats, and furnace repair and
replacement. In addition, pipe insulation, energy-efficient showerheads,
aerators, and water heater repair and replacement are available to homes with an
electric water heater. Other efficiency measures available in all homes
include compact fluorescent light bulbs (up to eight installed in fixtures used for
two or more hours per day) and refrgerator replacements (existing
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1 refrgerators listed in database or monitored with annual usage of 900 kWh or
2 greater). Health and safety measures related to electricity usage also qualify
3 under the program. In addition to direct incentives for eligible measures,
4 administrative cost reimbursement (subject to caps) is available to the partnering
5 agencies delivering program services at 15 percent of the Company's costs for the
6 direct incentives for weatherization measures.
7 The Refrigerator/Freezer Recycling Program, marketed as the "See ya
8 later refrgerator" program, is available to Idaho customers served on Schedule 1
9 as well as landlords who own appliances in rental properties served by the
10 Company in the State of Idaho where the tenant is biled under Schedule 1. The
11 Refrgerator/Freezer Recycling program focuses on removing older and less
12 efficient refrgerators and freezers from the market and recycling them to avoid
13 their return through the secondary appliance markets. In addition to free pick-up
14 and removal of their working appliance, customers receive a $30 incentive, an
15 instant savings kit containing two compact fluorescent light bulbs, a Bright Ideas
16 booklet on energy savings tips and information on other programs available to
17 them. The Company contracts for the program delivery though a third-pary
18 vendor, J aco Environmental, who runs the program nationally for many utilities.
19 The Home Energy Savings Program is available to Idaho customers with
20 new or existing residences, multi-family units or manufactured homes served on
21 Schedules 1 and 36 as well as landlords who own rental properties served by the
22 Company in the State of Idaho where the tenant is biled under Schedules 1 and
23 36. The program is administered by a program administrator under contract with
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the Company. The program provides incentives for the purchase and installation
of appliances, lighting, electric water heaters, shell measures and cooling
equipment that exceed code or common practice with respect to energy efficiency.
Incentives are available on a per-unit basis for most projects. Two incentive
delivery options are used. For most measures, customers purchase equipment and
submit an incentive application to the program administrator after making the
purchase. For compact florescent lamps (CFL), the program pays retailers to
mark-down their prices for CFLs, resulting in a lower price to the customer at the
point of purchase. Incentives for most measures are available to customers
regardless of who installs the equipment. For cooling equipment installations and
service(s), incentive availability requires that pre-qualified contractors perform
the work to ensure savings are delivered.
Please provide a brief description of the agricultural programs offered.
Rocky Mountain Power currently offers two Irrigation Load Management
Program options; Schedule 72, the scheduled forward program and Schedule
72A, a dispatchable control option first piloted in 2007. Both programs are
available to Idaho agrcultural customers receiving service under Schedule 10.
Under the scheduled forward control program participating growers are placed on
either Monday-Wednesday or Tuesday-Thursday control schedule and are unable
to operate their pumps during those scheduled days between the hours of 2-8 pm,
excluding holidays. If participating in the dispatchable program option, growers
agree to day ahead notification ofload control events Monday-Friday between the
hours of 2-8 pm for up to 52 hours per season (June I-September 15), excluding
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1 weekends and holidays. The company files comprehensive program reports with
2 the Idaho Public Utilities Commission on these two load management programs
3 each November, for more information on these two agrcultural programs please
4 reference the 2006 and 2007 season program reports.
5 The Irrigation Energy Savers Program is available to Idaho irrgation
6 customers taking retail service on Schedule 10. It is designed to be the energy
7 efficiency complement to Schedules 72 & 72A, Idaho's irrgation load
8 management programs. The Irrgation Energy Savers program is delivered via a
9 third-party program administrator and has the following components:
10 · Equipment Exchange - Provides new standard brass sprinkler nozzles to
11 replace worn ones on hand lines, wheel lines and solid set sprinklers systems.
12 Gasket and drain equipment also qualifies.
13 · Pivot and Linear Equipment Upgrades - Incentives are provided for certain
14 pivot and linear system measures including sprinkler packages and regulators.
15 The list of prescriptive incentives is not designed to be exhaustive and other
16 pivot measures are eligible for incentives if energy savings can be calculated
17 and the customer incurs costs to make the changes.
18 · System Consultation - This service provides a simple site specific audit of a
19 customer's irrgation system to promote irrgation management and identify
20 energy savings opportunities. This consultation provides information prior to
21 a full pump test.
22 . Pump Testing - The pump test includes directly measuring pump lift, flow,
23 electrical demand and system pressures, and is performed after the pump has
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been screened and the owner's financial criteria understood.
· System Analysis - The program provides energy engineering to quantify costs
and savings for system changes which are generally the results of a grower
needing to make some production driven changes to irrgation equipment.
Incentives are based on a standard formula tied to costs and first year energy
savings.
Please provide a brief description of the business programs offered.
The FinAnswer Express Program is available to Idaho business customers (other
than Schedule 10). This program is designed to help customers considering new
or replacement lighting, motor, and HVAC (as well as other types of equipment)
to purchase and install high efficiency equipment. This program is designed to
operate in conjunction with the Energy FinAnswer program. Both new
construction and retrofit projects are eligible, though for some measures, incentive
availability and incentive levels vary between retrofit and new construction
installations to reflect codes, standards, and standard practices. Many of the
projects are originated and supported by trade ally networks. Trade alles are the
best source for disseminating program information which occurs primarily
through personal selling supported by providing project specific incentive
estimates for interested customers. To support this important market channel, the
FinAnswer Express program provides specialized trade ally support, through the
use of a hired trade ally coordinator, for many technologies including lighting,
motors and HV AC equipment. In addition, the program contains provisions for
program-paid energy analysis to deliver energy savings calculations, upon
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1 customer request, for energy savings measures not specified in the prescriptive
2 incentive table.
3 The Energy FinAnswer Program is available to all Idaho business
4 customers (other than Schedule 10) with the exception of existing commercial
5 buildings under 20,000 square feet. The program includes program funded
6 energy engineering and cash incentives based on formulas which incorporate
7 project costs as well as energy and capacity savings. On a project specific basis,
8 the available incentive is limited to the amount required to buy the project down
9 to a one year simple payback (based on first year electric energy savings). To
10 enhance new construction market penetration and paricipation, this limitation
11 does not apply to new construction projects covered by energy codes. Incentives
12 are paid after verification that the energy efficiency measures are properly
13 installed, post installation savings estimates calculated and commissioning
14 completed. Project commissioning is par of the program design for Energy
15 FinAnswer, as it ensures proper operation and compliance with the project's
16 design intent before the full incentive payment is made. Program delivery is
17 handled through a combination of third party energy engineering firms and
18 Company personnel (both customer account managers and DSM project
19 managers). Since the Energy FinAnswer program wasn't introduced in Idaho
20 until May 2008, it isn't included in the analysis portion of Rocky Mountain
21 Power's portfolio review at this time.
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Please provide a brief description of Rocky Mountain Power's sponsorship of
the Northwest Energy Efficiency Allance (NEEA).
The Northwest Energy Efficiency Allance (NEEA) is a non-profit organization
working to encourage the development and adoption of energy efficient products
and services. NEEA is supported by the region's electric utilities, public benefits
administrators, state governents, public interest groups and efficiency industry
representatives. The Company provides funding for NEEA through a multiple
year commitment in support of NEE A's activities in Idaho and Washington. The
Company and its customers also provide financial support for NEEA in Oregon,
albeit indirectly, through funding provided the Energy Trust of Oregon as a result
of Oregon's Senate Bil 1149's public purpose charge mechanism. NEEA
leverages the funding they receive to assist utilities in the region with the
advancement of energy efficient technologies. Two such examples include
working with manufacturers and retailers to increase the availability and shelf
space of compact fluorescent lighting and high-efficiency appliances. This type
of work helps make energy savings technologies more readily available for
promotion through utility programs, increasing customer adoption rates and
driving down costs in comparison to competing, less efficient lighting and
appliances. Other examples of the regional work conducted by NEEA in support
of advancing energy efficiency practices and equipment includes their packaging
and distribution of energy efficiency information to builders and architects as well
as their efforts in helping bring along newly commercialized technologies to the
marketplace i.e. energy efficient power supplies for servers and personal
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computers. In conjunction with providing financial support, Rocky Mountain
Power actively participates on NEEA's customer sector advisory groups and
maintains a seat on NEEA's Board of Directors. Both activities provide Rocky
Mountain Power a voice in helping direct NEEA's activities for the greatest value
of our customers and ensure NEEA's coordination with utility program delivery.
The energy savings associated with the Company's sponsorship of NEE A are
allocated back to utilities based on fuding levels.
Do the 2006 and 2007 results shown in Exhibit No. 28 reflect Rocky
Mountain Power's participation in NEEA?
No. The results of NEE A programs, although available for years 2006 and 2007,
are based on Rocky Mountain Power's Idaho portion ofNEEA's funding, not
specifically on identifiable customers and end-use measures. To perform the type
of analysis provided for Rocky Mountain Power's DSM program in Exhibit No.
28 would require more information than is provided utilities by NEEA. That said,
NEEA performs cost-effectiveness calculations on a regional basis and reports
levelized costs for NEEA's energy efficiency acquisitions ofless than $.01 per
kWh. This compares very favorably with utility administered programs that on
average deliver targeted savings at levelized costs of $.03-$.04 per kWh (total
resource cost perspective). The company's Idaho NEEA investments and savings
for calendar years 2006 and 2007 were $359,137/6,054 MWH and
$360,534/3,957 MWH, respectively.
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How does Rocky Mountain Power support the eight programs and related
activities just discussed?
Rocky Mountain Power employees thirteen full-time equivalents (FTE) in the
delivery of the demand-side management programs across their six state servce
area. The core group of 13 FTEs are responsible for program identification,
design, implementation, and administration, as well as in some cases working
directly with business customers in the deíivery ofDSM program services, i.e.
business energy efficiency and irrgation load control programs being the two
most notable examples. Other program delivery support is provided by the
company's business centers, corporate departents (legal, procurement, etc.),
local trade ally networks, and contracted program delivery vendors i.e. Jaco
Environmental, PECI, low income community action agencies, energy
engineering contractors, etc. Of the 13 dedicated in-house DSM employees
approximately one FTE (based on hours) was allocated to the support and
delivery of Idaho DSM programs in each of the calendar years 2006 and 2007.
How does PacifCorp set targets for DSM resources?
DSM resource targets are set as part of the Company's integrated resource
planning process (IRP). Depending on the level of state support, these may be
adjusted, as was initially the case in Idaho, based on availability of funding.
When Rocky Mountain Power's DSM surcharge was approved in Idaho effective
May 1, 2006, the Idaho Public Utilities Commission suggested an initial cap on
DSM investments of 1.5 percent in order to limit customer rate impact while
Rocky Mountain Power demonstrated its ability to cost-effectively deliver DSM
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programs. As a result, Rocky Mountain Power limited the initial program set
offered and operated the available programs under funding caps. In May 2008 the
Idaho Public Utilities Commission approved an increase in the Company's DSM
surcharge, which enabled several program enhancements, and the addition of the
Energy FinAnswer program to the business customer DSM program set. This
increase in funding enables the Company to pursue cost-effective DSM resources,
Going forward, Idaho's DSM targets wil more closely align with the targets
established within the Company's IRP process.
What were the Company's DSM results for 2006 and 2007?
Load management results for Rocky Mountain Power's irrgation load
management programs (Schedules 72 and Schedule 72a) were 56 MW in 2006
and 86 MW in 2007. Detailed information on these two programs, including an
assessment of the cost-effectiveness of the programs, is provided to the Idaho
Public Utilities Commission each November through a formal filing of the
prògram annual report. Rocky Mountain Power is dedicated to continuing to
grow load management programs in Idaho and routinely collaborates with the
Idaho Public Utility Commission staff on program direction and effectiveness.
Energy efficiency program savings (including NEEA) in 2006 were
13,016 MWH and in 2007 were 9,011 MWH. The drop in savings between the
two years, despite almost identical program expenditures, was due to three
primary factors:
. Most of the Irrgation Energy Savers program's 2006 paricipation
and savings were derived from equipment exchange measures.
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1 During 2007, participation of pivot and linear upgrade measures
2 showed a steady increase but there was a decrease in the more
3 immediate equipment exchange measures. Irrgators are showing
4 an interest in the installation of drives on their systems so requests
5 for system consultation and system analysis increased substantially
6 between 2006 and 2007;
7 . The savings attbuted to the Company's NEEA investments
8 dropped from 6,054 MWH in 2006 to 3,957 MWH in 2007. The
9 drop in NEEA's results is attrbuted to upward adjustments in the
10 baselines for lighting and appliances used in developing savings
11 estimates. The more aggressive baseline assumptions are
12 considered quite conservative in that they discount the regional
13 work of NEE A in impacting the national market data used in their
14 development; and
15 . Greater requirements on available funding by the load management
16 programs which detracted from the available funding for other
17 energy efficiency programs, specifically the FinAnswer Express
18 program.
19 As noted previously in my testimony, the NEEA savings and costs were
20 deducted from the other utility programs and investments in the development of
21 Exhibit No. 28 which documents the results and cost-effectiveness of Rocky
22 Mountain Power's Idaho DSM programs.
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Is the Company planning on further expansions of its DSM efforts in 2008
and beyond?
Yes. In May 2008, the Idaho Public Utilities Commission approved an increase
in DSM program funding from 1.5 percent of retail revenue to 3.72 percent of
retail revenue in support of further expanding both the load management and
energy efficiency programs. DSM targets being modeled within the Company's
2007 and 2008 planning processes are migrating towards load management
targets of over 250 MW by 2009 (190 percent increase over 2007 load under
control) and energy efficiency acquisitions averaging nearly 20,000 MWH
annually by 2011 (doubling of savings acquired over 2006 and 2007 levels).
Rocky Mountain Power intends to continue to aggressively pursue DSM to the
degree cost-effective.
Please summarize the Company's conclusions.
The Company's expenditures of tarff rider revenue (and the funds utilized for
irrigation load control participation credits) have been reasonable and prudent. A
portfolio of programs covering all customer classes has been offered with total
savings of over 85 MW of annual load control available and total energy savings
of over 12,000,000 kWh (excluding NEEA) over the 2006 and 2007 calendar
periods. A 1O.41-year levelized utility cost per saved kilowatt hour of3.9 cents
per kWh has been achieved. The levelized avoided costs over the same period
were 8.2 cents per kWh. From a conservative UCT perspective, the cost per kW
for load management investments was $9.78/kW-yr against the Company's
avoided cost of$55.50/kW-yr. Based on program performance and annual
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reports already filed with the Commission and the analysis provided in Exhibit
No. 28 Rocky Mountain Power respectively requests that the Idaho Public Utility
Commission issue a finding of prudence for the Company's DSM expenditures
for reporting periods 2006 and 2007.
Does this conclude your testimony?
Yes.
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tøSEP '9 AM \0: 58
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UT\UTIES cOf.,M\:J~ìV¡ .
Case No. PAC-E-08-07
Exhibit No. 28
Witness: Jeffery W. Bumgarer
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ROCKY MOUNTAIN POWER
Exhibit Accompanying Direct Testimony of Jeffery W. Bumgarer
Program Results
September 2008
Rocky Mountain Power
Exhibit No. 28 Page 1 of 4
Case No. PAC-E-08-07
Witness: Jeffery W. Bumgarner
The tables below present the cost effectiveness findings ofthe Idaho 2006-2007 demand
side management (DSM) program portfolio. The cost effectiveness analysis was
conducted using the 2007 Integrated Resource Plan (IRP) decrement values and the 2007
irrgation avoided cost study. The portfolio includes the following programs:
Residential Programs
Schedule 21 - Low Income Weatherization
Schedule 117 - RefrgeratorlFreezer Recycling
Schedule 118 - Home Energy Savings Incentive
Agricultural Programs
Schedule 72 - Irrigation Load Control Credit Rider
Schedule 72A - Irrgation Load Control Credit Rider Dispatch Program
Schedule 155 - Agricultual Energy Services Schedule
Business Programs
Schedule 115 - FinAswer Express
Table 1: Common Inputs~ ,
Parameter Value
Discount Rate 7.1%
Line Loss Residential 10.23%
Line Loss Commercial 9.63%
Line Loss Irngation 9.37%
Residential Energy Rate ($/kWh)$0.0798
Commercial Energy Rate ($/kWh)$0.0813
Irrigation Energy Rate ($/kWh)$0.0700
.il Measures 't w-k "~,~,,m;"4.f t d~ ,¡¡_~w "BeneûiCost'",
i:;&1 ~~
l ~ ,,,
COSts r Beinênts rNet B"eneûts Ratío'n"
Total Resource Cost Test (PTRC)
+ Conservation Adder $3,687,401 $13,665,301 $9,971,900 3.706
Total Resource Cost Test (TRC)
rNo Adder $3,687,401 $13,107,385 $9,419,983 3.555
Utilty Cost Test (UCT)$5,481,306 $13,107,385 $7,626,079 2.391
Rate Impact Test (RIM)$11,639,616 $13,107,385 $1,467,768 1.126
Participant Cost Test (PCT)$884,603 $8,836,818 $7,952,215 9.990
Table 2: 2006-2007 Program Portfolio
Rocky Mountain Power
Exhibit No. 28 Page 2 of 4
Case No. PAC-E-08-07
Witness: Jeffery W. Bumgarner
Table 3: 2006-2007 TRC and UCT (broken down by
Energy Efficiency and Load Management Portfolios)
Energy Effciency Program Portfolio Load Management Program Portfolio
Total Resource $2,481,147 Total Resource $1,206,254Cost (TRC)Cost (TRC)
Weighted Average 10.41 Total Resource $7,528,222Measure Life Benefits
Discount Rate 7.10%Discount Rate 7.10%
kWh Energy 101,057,237 Benefit Cost Ratio 6.24
Savings
TRC Levelized $0.0390 TRC CostperkW $9.78Cost
Utility Cost (UCT)$1,596,544 Utility Cost (UCT)$3,884,762
Weighted Average 10.41 Utilty Benefits $7,528,222Measure Life
Discount Rate 7.10%Discount Rate 7.10%
kWh Energy 101,057,237 Benefit Cost Ratio 1.94
Savings
UCT Levelized $0.0251 Utility Cost per $31.50CostkW
Comparative Comparative
Electrc Utility $0.0815 Electrc Utility $55.50
A voided Cost A voided Cost
Rocky Mountain Power
Exhibit No. 28 Page 3 of 4
Case No. PAC-E-08-07
Witness: Jeffery W. Bumgarner
Table 4: 2006-2007 TRC and UCT (Energy Effciency
Program Portfolio with low income program broken out)
Total Resource Cost Regular Income Limited Income
Test Portolio Portfolio Total Portolio
Avoided Costs $5,106,735 $472,428 $5,579,163
10% avoided cost
adder $510,674 $47,243 $557,916
Total TRC Benefits $5,617,409 $519,670 $6,137,079
Non-Incentive Costs $909,357 $909,357
Customer Costs $1,342,520 $229,270 $1,571,790
Total TRC Costs $2,251,877 $229,270 $2,481,147
Net TRC Benefits $3,365,531 $290,400 $3,655,932
Benefit Cost Ratio 2.49 2.27 2.47
Regular Income Limited Income
Utilt Cost Test Portolio Portolio Total Portolio
Avoided Costs $5,106,735 $472,428 $5,579,163
Total UCT Benefits $5,106,735 $472,428 $5,579,163
Non-Incentive Costs $909,357 $909,357
Incentive Costs $457,917 $229,270 $687,187
Total UCT Costs $1,367,274 $229,270 $1,596,544
Net UCT Benefits $3,739,461 $243,158 $3,982,619
Benefit Cost Ratio 3.73 2.06 3.49
Rocky Mountain Power
Exhibit No. 28 Page 4 of 4
Case No. PAC-E-08-07
Witness: Jeffery W. Bumgarner
Table 5: 2006-2007 PCT and RIM (Energy Effciency
Program Portfolio with low income program broken out)
Regular Income Limited Income
Partici ant Test Portfolio Portfolio Total Portolio
Lost Revenues $5,578,287 $580,024 $6,158,311
Total Lost Revenues $5,578,287 $580,024 $6,158,311
Customer Project Costs $1,342,520 $229,270 $1,571,790
Incentive Costs ($457,917)($229,270)($687,187)
Total Participant Costs $884,603 $0 $884,603
Net Participant Benefits $4,693,684 $580,024 $5,273,707
Benefit Cost Ratio 6.31 6.96
Regular Income Limited Income
Rate 1m act Test Portolio Portolio Total Portolio
Avoided Costs $5,106,735 $472,428 $5,579,163
Total Avoided Costs $5,106,735 $472,428 $5,579,163
Lost Revenues $5,578,287 $580,024 $6,158,311
Incentive Costs $457,917 $229,270 $687,187
Non-Incentive Costs $909,357 $0 $909,357
Total Non-Participant
Costs $6,945,561 $809,294 $7,754,855
Net Non-Participant
Benefits ($1,838,826)($336,866)($2,175,692)
Benefit Cost Ratio 0.74 0.72