20121228notice_of_application_order_no_32703.pdf

Office of the Secretary
Service Date
December 28,2012BEFORETHEIDAHOPUBLICUTILITIESCOMMISSION
IN THE MATTER OF PACIFICORP DBA )CASE NO.PAC-E-12-14
ROCKY MOUNTAIN POWER’S )APPLICATION FOR AUTHORITY TO )NOTICE OF APPLICATIONCANCELELECTRICSERVICESCHEDULE)NOS.72 AND 72A IRRIGATION LOAD )NOTICE OF
CONTROL TARIFFS AND APPROVE A )INTERVENTION DEADLINENEWDEMANDSIDEMANAGEMENT)CONTRACT )ORDER NO.32703
_________________________________________________________________________________________
)
On December 7,2012,PacifiCorp dba Rocky Mountain Power (the “Company”)
applied to the Commission for an Order:(1)authorizing it to cancel Electric Service Schedule
72,Irrigation Load Control Credit Rider,and Electric Service Schedule 72A,Dispatchable
Irrigation Load Control Credit Rider;and (2)approving a new demand-side management (DSM)
contract with third party aggregator,EnerNoc,Inc.,for delivery of the irrigation load control
program.The Company asks that Modified Procedure be used,and that the requested changes
take effect on February 1,2013.Application at 1 and 12.Commission Staff has advised the
Commission that the Company has agreed to the suspension of the proposed effective date
during these proceedings.
With this Order,the Commission notifies interested persons of the Application,sets
an intervention deadline,and suspends the proposed effective date.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company’s Application describes the
current irrigation load control program and the new DSM contract with EnerNoc as follows:
A.The Current Irrigation Load Control Program
In 2003,the Company implemented Electric Service Schedule 72,Irrigation Load
Control Credit Rider tariff,to provide irrigation customers with an alternative to receiving firm
service under Electric Service Schedule 10,Irrigation and Soil Drainage Pumping Power
Service.Schedule 72 lets irrigators opt to participate in a load control program that enables them
to manage their energy costs through curtailment.Id.at 2-3.Offerings are made to program
participants based on avoided kilowatts for each of the three summer months.The amount of
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703
credit is based on the price that the Company would have to pay for an equivalent amount of
power on the open market for a block purchase of 30 megawatts (MW).
When the Schedule 72 program began,it had 207 customers with 401 sites,
representing 45 MW of peak reduction.Program participation then increased to a high of 489
customers,1065 sites,and 54 MW of peak reduction capability in 2005.Program participation
has since declined,and in 2012 only 68 customers with 77 sites participated,representing 2.3
MW of peak reduction capability.Id.at 3.
During the 2007 irrigation season,the Company successfully piloted a fully
disapatchable load control solution;while the Company expected 45 MW of participating load,
76 MW ultimately participated in the program under contract.In light of this success,in 2008
the Company implemented Electric Service Schedule 72A as a full enrollment program.
Schedule 72A is a voluntary load reduction program available to irrigators who receive service
under Schedule 10.The program enables the Company to control demand and manage summer
peaks by periodically turning off program pumps.Id.at 4.Participation in the Schedule 72A
program has grown,and participation was capped at 283 MW for the 2011 and 2012 seasons.Id.
Following a series of stipulations between the Company,Idaho Irrigation Pumpers Association
(“IIPA”),and Commission Staff,an agreed-to load control credit was extended through the end
of the 2012 irrigation season.Id.at 5.
During the 2012 season,the Company called 12 control events.Id.Incentive
payments or credits to 2012 participants were based on 244 MW of load.Id.at 6.The average
realized load reduction for the 2012 season was 139 MW,or 57%of participating load.During
the 10-year system peak period,the 2012 average realized load reduction was 117 MW,or 48%
of the participating load.Id.
B.The EnerNOC DSM Contract
In 2012,the Company requested proposals for delivering the irrigation load control
program in the most cost-efficient manner.Id.at 7.The Company sought proposals on two
alternatives:(1)A pay-for-performance model in which the contractor delivers the dispatchable
irrigation load control program and provides capacity,monitoring and load control devices,and
incentives to customers while accepting the risks associated with the program;and (2)an
equipment-and-service model in which the Company continues to operate the program while the
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703
contractor provides the customer service and equipment installation.operation,and maintenance
associated with the program.Id.at 7.
After reviewing five proposals from two qualified vendors,the Company determined
that the least-cost option is a pay-for-performance model submitted by EnerNoc,Inc.,a company
that manages more than 25 pay-for-performance contracts and which purchased the manufacturer
of the Company’s current irrigation load control equipment.Id.at 8.The Company’s resulting
contract with EnerNoc provides:
General Term Description
Term of Agreement 10 years with ability to terminate early
Eligible Customers Schedule 10 customers
Average Demand Response 145 MW
Capacity 40 MW
Capacity Basis Average available capacity measured during the
guarantee period
Pricing Confidential
Performance Guarantees Confidential
Dispatch Limitations 52 hours per year,20 events per year,I to 4 hours
per event
Guarantee Period June 15 —August 15
Weekdays excluding holidays
12 p.m.8 p.m.MST
Non-Guaranteed Capacity May dispatch an event anytime beyond the
Dispatch Limitations and Guaranteed Capacity
Limits,load reductions will not be guaranteed
Id.at 9.In addition,EnerNoc assumes all responsibility for installing,operating,and
maintaining the irrigation load control devices,dispatching services as directed by the Company,
recruiting customers,providing customer service,and issuing the irrigation credits.Id.EnerNoc
will be paid based on the average load available for curtailment less any performance shortfall
adjustments during program events.EnerNoc also receives an incentive to optimize load
curtailment during historical peak times.Id.at 10.Participant curtailment amounts,incentives,
and terms and conditions will be between EnerNoc and qualifying customers.Id.Consistent
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703
with existing program structure,customers will be notified the day before program dispatch and
will be able to opt-out of event participation before loads are controlled.Id.
YOU ARE FURTHER NOTIFIED that in light of the above,the Company asks the
Commission to approve the EnerNoc DSM contract and cancel Electric Service Schedules 72
and72A.Id.at 11.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Rocky Mountain Power’s representatives in this matter:
Ted Weston
Manager,Idaho Regulatory Affairs
Rocky Mountain Power
201 South Main Street,Suite 2300
Salt Lake City,Utah 84111
E-mail:ted.weston(dpacificorp.com
Daniel E,Solander
Senior Counsel
Rocky Mountain Power
201 South Main Street,Suite 2300
Salt Lake City,Utah 84111
E-mail:[e-mail]
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.gov by clicking
on “File Room”and then “Electric Cases.”
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §S 61-502,61-622,and 61-623.The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to become parties in this
matter to conduct formal discovery or present evidence or cross-examine witnesses at any
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703 4
hearing must file a Petition to Intervene with the Commission pursuant to this Commission’s
Rules of Procedure 72 and 73,IDAPA 31.01.01.072 and -.073.The Petition to Intervene must
be filed no later than fourteen (14)days from the service date of this Order.Persons
desiring to present their views without parties’rights of participation and cross-examination are
not required to intervene and may present their comments without prior notification to the
Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the Staff
counsel will convene an informal prehearing conference for the purpose of discussing a schedule
to process this case,the service of discovery,and other issues raised by the parties.
YOU ARE FURTHER NOTIFIED that any hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83 720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail:
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the nature of the case and constraints on the Commission’s time,the
Commission finds that it cannot adequately review the Application before the proposed effective
date of February 1,2013.Pursuant to Idaho Code §S 61-307,61-622 and 61-623,and in light of
the Company’s consent to have the effective date suspended,the Commission hereby suspends
the proposed effective date for a period of thirty (30)days plus five (5)months or such time as
the Commission enters an Order accepting,rejecting,or modifying the request in this matter.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703 5
ORDER
IT IS HEREBY ORDERED that the effective date of the changes proposed in the
Application is suspended until August 3,2013,or such time as the Commission enters an Order
accepting,rejecting,or modifying the request in this matter.
IT IS FURTHER ORDERED that persons desiring to intervene in this matter for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than fourteen (14)days from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2012.
ATTEST:
14
tdJ)7r&
Jean D.Jewell
Commission Scretary
L
MARSHA H.SMITH,COMMISSIONER
O:PAC-E-12-l4kk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32703
PAUL
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