20140729notice_of_application_order_no_33082.pdf

Office of the Secretary
Service Date
July 29.2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ROCKY MOUNTAIN POWER )CASE NO.PAC-E-14-07
REQUESTING A PRUDENCY )
DETERMINATION ON ITS DEMAND-SIDE )NOTICE OF APPLICATION
MANAGEMENT EXPENDITURES FOR )
YEARS 2010-2013 )NOTICE OF
)INTERVENTION DEADLINE
)
_________________________________
)ORDER NO.33082
On July 7,2014,PacifiCorp dba Rocky Mountain Power filed an Application
requesting the Commission find that the utility’s demand-side management (DSM)expenses for
the years 2010 through 2013 were prudently incurred.More specifically,Rocky Mountain seeks
to recover $25.76 million in deferred costs for seven DSM programs.“DSM”generally refers to
utility activities and programs that encourage customers (i.e.,on the “demand-side”as opposed
to the “generation side”)to use less overall energy or use less energy during peak usage hours.1
Rocky Mountain’s DSM programs include:Low Income WeatherizationlEducation (Schedule
21);Irrigation Load Control (Schedules 72 and 72A)2;FinAnswer Express (Schedule 115);
Refrigerator Recycling (Schedule 117);Home Energy Saver (Schedule 118);Energy FinAnswer
(Schedule 125);and Agricultural Energy Services (Schedule 155).
BACKGROUND
The Company declares that it has offered a variety of DSM programs to its customers
since the 1970s.In 2006,the Commission approved an enhanced set of DSM programs and
provided a mechanism for cost recovery of Rocky Mountain’s energy efficiency and DSM
programs.Typically,DSM programs have two parts.First,the utility designs and implements a
variety of DSM programs to promote energy efficiency and conservation,or reduce customer
demand during periods of peak demand and/or in times of supply constraint.Second,utilities
DSM programs can be specific and focused such as the immediate and temporary curtailment of usage,or broad
and less immediate such as the installation of energy efficient equipment and other energy efficiency programs.
2 Schedule 72 and 72A were cancelled in Order No.32760 (Case No.PAC-E-12-14)when the Irrigation Load
Control Program was treated as a system-wide benefit in 2011.
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periodically report on the effectiveness of their DSM programs and seek permission to recover
the deferred costs of the DSM programs.
In Order No.29976 issued in March 2006,the Commission authorized Rocky
Mountain to establish a DSM tariff rate (or “rider”)as a separate line item on customers’bills
under tariff Schedule 191.The DSM tariff rider is the mechanism used to recover the costs of the
DSM programs.The Company was authorized to defer the costs of its DSM programs until such
time as the Commission finds that the “Company’s DSM expenditures and programs are or will
be found to be reasonably and prudently incurred and executed.”Order No.29976 at 6.
NOTICE OF APPLICATION
A.The DSM Programs
YOU ARE HEREBY NOTIFIED that Rocky Mountain offered various DSM/energy
efficiency programs during 2010-2013 to all major customer classes including residential,
commercial,industrial and agricultural.Exh.I at 324.The Company offered residential
customers three DSM programs:Home Energy Saver,Residential Refrigerator Recycling,and
Low Income Weatherization.
Home Energy Saver —this program is designed to provide a number of
products and services to customers in new or existing homes,multi-family
housing units,or manufactured homes for customers taking service under
Schedules 1 and 36.Services and products under this program include:attic
insulation,floor insulation,wall insulation,energy efficiency windows,CFL
lighting,and other services.This program is administered by PECT,a private
non-profit corporation,which has been implementing energy efficiency
programs since 1990.Id.at p.326.
Refrigerator Recycling —this program is designed to decrease electric usage
through the voluntary removal and recycling of inefficient refrigerators and
freezers.Customers receive a $30 incentive for each qualifying appliance and
an energy saving kit which includes two CFL bulbs,a refrigerator
thermometer card and other energy-saving educational materials.This
program is administered by JACO Environmental,which is one of the largest
recyclers of household appliances in the United States.Id.at 332-33.
Low Income Weatherization —this program provides energy efficiency
services through local non-profit agencies to residential customers meeting
income-eligible guidelines.Services are provided at no cost to eligible
customers.Services provided under this program including ceiling/wall!floor
insulation,furnace repair,air infiltration,replacement door/windows,and
other services.The Company’s non-profit program administrators include the
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Eastern Idaho Community Action Partnership and Southeastern Idaho
Community Action Partnership.The Company provides 85%of the cost of
approved measures with the balance of funds provided by the Idaho
Department of Health &Welfare.Id.at 335.In addition to conservation
services,the Company also provides energy conservation education to low-
income residential customers for Company customers that receive Low
Income Home Energy Assistance (LIHEAP)funds.The information packet
includes items such as a low-flow showerhead,outlet/switch plate gaskets,
one CFL bulb,and other efficiency products.Id.at 3 34-36.
The Company also provided three DSM programs for its commercial,industrial and
agricultural customers.These programs included:
The FinAnswer Express —this program is designed to help commercial and
industrial customers to improve the efficiency of their lighting,HVAC,
electric motors,building envelopes,and other equipment.This program is
administered by two contractors.Id.at 339.
Energy FinAnswer —this program is available to all commercial and industrial
customers with buildings in excess of 20,000 square feet.The program
provides energy engineering incentives of 120 per kWh for the first year
energy savings and $50 per kW of average monthly demand savings up to a
cap of 50%of the approved project cost.This program is operating in
conjunction with the more streamlined FinAnswer Express and also seeks
efficiency improvements in HVAC systems,motors,refrigeration,lighting,
irrigation,and other equipment.Id.at 344-46.
Agricultural Energy Services —this program is designed to improve the
overall energy efficiency of irrigation systems for customers taking service on
tariff Schedule 155.Portions of this program were suspended in 2013 in
Order No.32879.Id.at 342-43.
B.The Deferred Expenses
YOU ARE FURTHER NOTIFIED that Rocky Mountain asserts in its Application
that the seven DSM programs resulted in energy savings for the years 2010-2013.Dir.
Testimony,Table 1.The utility reports that five of the programs were cost-effective in all years
with two exceptions noted here.Application at 4.First,the Company indicated the Agricultural
Energy Service Program was not cost-effective in 2013 when its benefit/cost ratio for the total
resource cost (TRC)test was 0.84.Second,the Company stated that its Low Income
The Company uses several analytical tools to “test”the cost-effectiveness of its DSM programs.These tests
include:the TRC;the utility cost test (UCT)from the utility’s perspective;the participant cost test (PCT)from the
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Weatherization Program was not cost-effective under the TRC or UCT tests in any of the years
under review.Dir.Testimony at 15.The Company reports that it has taken actions to improve
the cost-effectiveness of the Low Income Weatherization program.Id.at 16.Rocky Mountain
requests authorization to recover $25,765,486 in DSM expenses from the DSM rider account and
asserts these expenses were “prudently incurred.”Application at 1.The requested expenses per
year are set out below:
YEAR EXPENDITURES
2010 $7,515,026
2010 $8,100,681 (load control incentives)4
2011 $2,815,694
2012 $3,459,989
2013
_________
$25,765,096
Source:Direct Testimony at p.2.
In support of its Application,the Company submitted prefiled testimony,exhibits,the
results of its cost-effectiveness analysis,and the third-party program evaluation reports.
Application at 1.The Company requests that its Application be processed under Modified
Procedure and Staff concurred.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
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.All Petitions to Intervene must be filed
within 14 days of the service date of this Order.Persons desiring to present their views
without parties’rights of participation 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 following persons are designated as
Rocky Mountain’s representatives in this matter:
average participating customer’s perspective;and the PacifiCorp total cost test (PTCT)which is a variant of the
TRC with a 10%adder to reflect non-energy benefits.Dir.Testimony at 13.
In 2011 the two Irrigation Load Control programs under tariff Schedules 72 and 72A were cancelled and a new
program was offered to customers using a third-party aggregator,EnerNOC.The load control expenses for 2011
and beyond are no longer included in the DSM rider from tariff Schedule 191.Order No.32760.
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Ted Weston
Daniel E.Solander
Rocky Mountain Power
201 S.Main,Suite 2300
Salt Lake City,UT 84111
E-mail:[e-mail]
daniel.solander(pacificorp.com
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has passed,
the Commission Secretary shall prepare a Notice of Parties.Staff counsel will then convene an
informal scheduling conference.
YOU ARE FURTHER NOTIFIED that the Application,testimonies,reports,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 Commissions web site at ucidaho1gov.Click on the “File Room”tab at
the top of the page,scroll down to “Open Electric Cases,”and then click on the case number as
shown on the front of this document.
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 61-503 and 61-336.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 3 1.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene no later than 14 days from the service date of this Order.Once the
deadline for Petitions to Intervene has passed,the Commission Secretary shall prepare and issue
a Notice of Parties.
IT IS FURTHER ORDERED that Staff counsel shall convene an informal scheduling
conference so the parties may discuss how this case will be processed and other case
management issues.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2014.
ATTEST:
PAUL KJELLANDER”PRESIDENT
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MACK A.REDFORD,COMMISSIONER
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MARSHA H.SMITH,COMMISSIONER
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Jean D.Jewe11
Ccrnmission Secretary
bls/O:PAC-E-I 4O7dh
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