20140909notice_of_modified_procedure_order_no_33122.pdf

Office of the Secretary
Service Date
September 9,2014
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
MANAGEMENT EXPENDITURES FOR )MODIFIED PROCEDURE
YEARS 2010-2013 )
___________________________
)ORDER NO.33122
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.’
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).The Company is requesting
permission to recover its DSM expenses from the deferral accounts and is not requesting an
increase in its DSM tariff rider (Schedule No.191).
On July 29,2014,the Commission issued its Notice of Application and set a deadline
for intervention.Order No.33082.Petitions to Intervene were filed by the Idaho Conservation
League (ICL)and Monsanto Company.The Commission granted intervention to ICL and
Monsanto,and issued its Notice of Parties on August 27,2014.The parties subsequently agreed
to process this case under Modified Procedure and proposed a schedule as set out in greater
detail below.In this Order,we establish a schedule to process this case under Modified
Procedure.
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 ofenergy 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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ORDERNO.33122 1
BACKGROUND
The Company has offered a variety of DSM programs to its customers since the
1 970s.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 steps.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
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 No.191.The DSM tariff rider is the mechanism used to recover the costs
of most 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.
THE APPLICATION
A.The DSM Programs
Rocky Mountain offered various DSM/energy efficiency programs during 2010-2013
to all major customer classes including residential,commercial,industrial and agricultural.Exh.
No.1 at 324.The Company offered residential customers three DSM programs:Home Energy
Saver,Residential Refrigerator Recycling,and Low Income Weatherization.These programs are
discussed below.
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 I 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 PECI,a private
non-profit corporation,which has been implementing energy efficiency
programs since 1990.Exhibit No.1 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
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ORDER NO.33122
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
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 334-36.
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
OrderNo.32879.Id.at342-43.
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ORDERNO.33122 3
B.The Deferred Expenses
Rocky Mountain asserts in its Application that the seven DSM programs resulted in
energy savings for the years 2010-2013.Dir.Testimony,p.8,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)test3 was 0.84.
Second,the Company stated that its Low Income 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 $3,874,096
$25,765,486
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 requested and the parties agreed to process the Application
under Modified Procedure with the schedule set out below.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
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
average participating customer’s perspective;and the PaciflCorp 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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ORDERNO.33122 4
of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission on or
before November 14,2014.The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written
comments.Written comments concerning this Application shall be mailed to the Commission
and Rocky Mountain at the addresses reflected below:
Commission Secretary Ted Weston
Idaho Public Utilities Commission Daniel E.Solander
P0 Box 83720 Rocky Mountain Power
Boise,ID 83720-0074 201 S.Main,Suite 2300
Salt Lake City,UT 84111
Street Address for Express Mail:E-mail:[e-mail]
daniel.soIander(pacificorp.corn
472 W.Washington Street
Boise,ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document,Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at y.ugihçgov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to Rocky Mountain at
the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if Rocky Mountain desires to submit reply
comments,it must do so no later than December 1,2014.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application,testimonies,reports,and
exhibits have been filed with the Commission and are available for public inspection during
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ORDERNO.33122 5
regular business hours at the Commission offices.The i\pplication and testimonies are also
available on the Commissions web site at www.puc.idaho.eov.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 §6 1-503 and 61-336.The Commission may enter an final Order consistent with
its authority under Title 61.
YOU 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.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons must file comments in opposition or in support of Rocky Mountain’s
prudency Application no later than November 14.2014.
IT IS FURTHER ORDEREI)that Rocky Mountain may file reply comments,if
necessary.no later than December 1.2014.
IT IS FURTHER ORDERE1)that parties serve their discovery and written comments
on each other via e-mail and that discovery shall be answered within 14 days.
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ORDERNO.33122 6
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this ‘
day of September 2014.
PAUL K LLAN ,PRESIDENT
MACK A REDFOR ,COMMISSIONER
ck
MARSI IA IL SMITTI,COMMISSIONER
ATTEST:
Jean D.Jewell
Commission Secretary
bls/O:PAC-F-I 4-07 dh2
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ORDERNO.33122 7