20160127Application.pdf

ROCKY MOUNTAIN RECEIVED 1407 W. North Temple, Suite 330
salt Lake ciry, utah 84116Pol'I'ER
?$l[ Jf,H 27 All 9, 36
INi,F,;C PUBLIC
iJT ili i I ES COI-{ i,{lSSlON
January 27,2016
VIA OWRNIGHT DELIWRY
Idaho Public Utilities Commission
472West Washington
Boise,ID 83702-5983
Attn: Jean D. Jewell
Commission Secretary
RE: CASE NO. PAC-E-16-04
IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER
FOR AUTHORITY TO CAI{CEL ELECTRIC SERYICE SCHEDULE II7 _
RESIDENTIAL REFRIGERATOR RECYCLING PROGRAM
Please find enclosed in the above captioned matter an original and seven (7) copies of Rocky
Mountain Power's Application requesting authorization to cancel the Residential Refrigerator
Recycling Program, Electric Service Schedule 117.
For informal questions related to this matter, please contact Michael Snow, DSM Regulatory
Manager, at [phone] or Ted Weston, Idaho State Regulatory Affairs Manager, at (801)
220-2963.
Sincerely,
6,rU, C;:fi\ltt le,W
Bill Comeau
Director, Demand-side Management
Enclosures
Daniel E. Solander (ISB# 8931)
Rocky Mountain Power
1407 W. North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Emai I : danie l. solan der @pacifrcorp. com
Attorneyfor Roclgt Mountain Power
IN THE MATTER OF THE APPLICATION
OF ROCKY MOUNTAIN POWER FOR
AUTHORITY TO CAI\CEL ELECTRIC
SERVICE SCHEDULE II7 - RESIDENTIAL
RETRIGERATOR RECYCLING PROGRAM
BEFORE THE IDAHO PUBLIC UTILITIES COMNIISSION
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CASE NO. PAC.E-16-04
APPLICATION
COMES NOW, Rocky Mountain Power, a division of PacifiCorp (the "Company"),
and in accordance with RP 052 and RP 201, et. seq., hereby petitions the Idaho Public
Utilities Commission (the "Commission") for authority to cancel the Residential Refrigerator
Recycling Program administered through Electric Service Schedule No. I l7 ("Program").
In support of this Application, Rocky Mountain Power states:
L Rocky Mountain Power is authorized to do and is doing business in the state
of Idaho. The Company provides retail electric service to approximately 73,000 customers in
the state of Idaho and is subject to the jurisdiction of the Commission. Rocky Mountain
Power is a public utility in the state of ldaho pursuant to Idaho Code $ 6l-129.
2. This Application is filed pursuant to ldaho Code $$ 6l-301, 6l-307,61-622,
and 6l-623. In particular, Idoho Code $ 6l-623 empowers the Commission to determine the
propriety of proposed rate schedules, $$ 6l-307 and 6l-622 require Commission approval
APPLICATION OF
ROCKY MOUNTAIN POWER
Page I
prior to any increase in rates, and $ 6l-301 requires Idaho retail electric rates to be just and
reasonable.
BACKGROUNI)
3. On December 3, 2015, the Company filed Advice No. 15-05 requesting
authorization to suspend the Program due to the Program vendor, Jaco Environmental
("Jaco"), going out of business. Jaco had contacted the Company to inform it that Jaco would
no longer be able to perform its contractual duties for the Program. The Commission
approved the Program suspension on Decemb er 7 , 2015 .
PROPOSED PROGRAM CAI\CELATION
4. In the third quarter of 2015 the Company issued a competitive Request for
Proposals ("RFP") for its Home Energy Savings program. Included as part of that RFP was a
requests for bids on the appliance recycling program. The RFP requested that vendors take
into account the available options for proposed Program design and planning, Program start-
up and transition, marketing, customer service, processing services, data tracking and
reporting, quality assurance, and compliance.
5. Two vendors submitted bids under the RFP one of those vendors was Jaco.
Utilizing the information from the second bid provided under the RFP the Company asked
Navigant to conduct a cost-effectiveness analysis to determine if reinstituting the Program
was just and reasonable, and in the public interest. Navigant's report is provided as
Attachment A to this Application. Table 5 below is pulled from the Navigant report and
shows that based on the Program delivery costs from the remaining RFP bid the benefit/cost
ratio is below 1.00 for the major cost effective tests. Accordingly, given that the Program
APPLICATION OF
ROCKY MOUNTAIN POWER
Page2
does not pass the cost effective tests, the Company requests Commission approval to cancel
Electric Service Schedule No. 117, effective March 1,2016.
Table I
SYLR Level Cost-Effectiveness Results (Residential and Business Pick-Up)
6. Historically the costs associated with delivering the residential refrigerator
recycling program have been recovered through Electric Service Schedule No. 191 -
Customer Efficiency Service Rate. On January 19,2016, the Company filed an applicationr
with the Commission requesting authorization to increase the energy efficiency collection
rate from 2.1 percent to 2.7 percent of customers' bills. The future demand-side management
("DSM") costs included in the analysis used to determine the appropriate rate change
required to align future revenue recovery with future DSM expenditures did not include
ongoing costs associated with delivering Electric Service Schedule ll7 - Residential
Refrigerator Recycling Program
I Case No. PAC-E-I6-02.
APPLICATION OF
ROCKY MOLTNTAIN POWER
Total Resource Cost Test (PTRC)
* Conversation Adder $0.0994 $126,720 $63,639 -$63,081 0.50
Total Resource Cost Test (TRC)
No Adder s0.0994 $126,724 $57,854 -$68,867 0.46
Utility Cost Test (UCT)$0.0994 $126,720 $s7,8s4 -s68,867 0.46
Rate ImpactTest@IM)$2t5,323 $57,854 $217.469 0.21
Participant Cost Test (PCT)$0 s404,582 $404,582 nla
Lifecycle Revenue Impacts
(s/kwh)s0.000010499
Page 3
COMMUNICATIONS
6. Communications regarding this Application should be addressed to:
Ted Weston
Michael Snow
1407 W. North Temple, Suite 330
Salt Lake city, utah 841l6
Telephone: [phone]
Email : ted.weston@pacifi com.com
michael. snow@nacifi corp.com
Daniel E. Solander
1407 W. North Temple, Suite 320
salt Lake city, Utah 84116
Telephone: [phone]
Email : [e-mail]
In addition, the Company respectfully requests that all data requests regarding this matter be
addressed to one or more of the following:
By e-mail (preferred):
By regular mail:
APPLICATION OF
ROCKY MOUNTAIN POWER
datareq uest@oaci fi corp.com
michael.snow@pacifi corp.com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
MODIFIED PROCEDURE
7. The Company believes that consideration of the proposal contained in this
Application does not require an evidentiary proceeding, and accordingly the Company
requests that this Application be processed under RP 201 et seq. allowing for consideration
of this issue under Modified Procedure, i.e., by written submissions rather than by an
evidentiary hearing. [f however, the Commission determines that an evidentiary proceeding
Page 4
is required the Company stands ready to provide supporting testimony.
CONCLUSION
WFIEREFORE, Rocky Mountain Power respectfully requests that the Commission
issue an Order: (l) authorizing that this proceeding be processed under Modified Procedure,
and (2) approving the cancelation of Electric Service Schedule No. ll7 - Residential
Refrigerator Recycling Program, effective March 1,2016.
DATED this 27ft day of January,20l6.
Respectfu lly submitted,
Daniel E. Solander
Attorney for Rocky Mountain Power
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 5
-ROCKYMOUNTAINYpolnea
\ l onlsro. or PAcrFrcoRP
I.P.U.C. No.1
Thirteenth Revision of Sheet No. 8.2
Canceling Twelfth Revision of Sheet No. B.2
Schedule
No.
23
234
24
3l
34
35
35A
36
70
73
94
lt8
ELECTRIC SERVICE SCHEDULES - Continued
Class of Service
General Service - Small Power
General Service - Small Power (Residential and Farm)
Interruptible Power Service
Partial Requirements Service - High Voltage
Pacific Northwest Electric Power Planning and Conservation Act -
Residential and Farm Kilowatt-Hour Credit
Optional Time-of-Day General Service - Distribution Voltage
Optional Time-of-Day General Service - Distribution Voltage (Farm)
Optional Time of Day Residential Service
Renewable Energy Rider - Optional
Renewable Enerry Rider - Optional - Bulk Purchase Option
Enerry Cost Adjustment
Home Enerry Saver Incentive Program
(Continued)
Sheet
No.
23.1-23.3
23A.1-23A.4
24.1 - 24.5
3l.l -31.6
34.t - 34.3
35.1 - 35.3
35A.1 -35A.4
36.1-36.3
70.1-70.4
73.1-73.4
94.1
I l8.l - I18.2
Submitted Under Case No. PAC-E-I6-04
ISSUED:January 27,2016 EI'FECTM: March l,2016
ROCKY MOUNTAIN
Po\AIER
a lxvrsro,{ oF PAcrFrcoRP
I.P.U.C. No. 1
Thirteenth T*rclftbRevision of Sheet No. B.2
Canceling TwelfthEle+erth Revision of Sheet No. B.2
Schedule
No.
23
23A
24
3t
34
35
35A
36
70
73
94
ELECTRIC SERVICE SCHEDULES - Continued
Class of Service
General Service - Small Power
General Service - Small Power (Residential and Farm)
Intemrptible Power Service
Partial Requirements Service - High Voltage
Pacific Northwest Electric Power Planning and Conservation Act -
Residential and Farm Kilowatt-Hour Credit
Optional Time-of-Day General Service - Distribution Voltage
Optional Time-of-Day General Service - Distribution Voltage (Farm)
Optional Time of Day Residential Service
Renewable Energy Rider - Optional
Renewable Energy Rider - Optional - Bulk Purchase Option
Enerry Cost Adjustment
Sheet
No.
23.1-23.3
234.1-234.4
24.1-24.s
3t.l -3r.6
34.1 - 34.3
35.1 - 3s.3
35A.1 -354..4
36.1-363
70.1 - 70.4
73.1-73.4
94.1
I 17 Rssidentiel Refrigerater Reeyeling Pregrarn 117,1 117,2
118 Home Enerry Saver Incentive Program 118.1 - 118.2
(Continued)
Submiued Under A.dvie'eCase No. {-64IPAC-E- 1 6-04
ISSUED: January U8,2016 EFFECTM: Janua4;Slvlarch L la16
V,ROCKYMOUNTAINYpclnee
\ o ot ,S'O,, Ot PACTFTCOBP
I.P.U.C. No. I Third Revision of Sheet No. 117.1
Canceling Second Revision of Sheet No. 117.1
ROCKY MOUNTAIN POWER
ELECTRIC SERVICE SCHEDULE NO. 117
STATE OF IDAHO
Residential Refrigerator Recycling
SHEET NO. 117.1 IS SUSPENDED AS OF D
PURPOSE: Service under this tariff is intended ion loads
through the removal and recycling of inefficient
funds availability.
is subject to
APPLICABLE: To all retail tariff Company's electric
service schedules listed on Schedule 191, or management
companies and homeowner associations holder on a quali$ing
rate, in all service territory served by
CUSTOMER PARTICIPA tion is voluntary and is initiated by
contacting a specified toll-free
DESCRIPTION:ive to discontinue use of their working
secondary refrigerator working primary refrigerator and freezer
with new more qualiff for the incentive customers must give up their
appliances for recycling. App llected and recycled to ensure they are not resold on
: Working residential refrigerators and freezers that are a
cubic imum of 32 cubic feet in size, utilizing inside measurements.
VISIONS VICE:
ial, com and industrial customers will receive an incentive of $50 for each
n and/or freezer.Incentives will be available on a maximum of two appliances
per year. The Company may offer a packet with written energyper q
effici
lce
to de
'Serv
the secondary
and instant savings measures.
icipating retailers will receive an incentive of up to $20 for each eligible refrigerator and/or
freezer.
3. Incentive checks will be mailed within 30 days of the appliance collection date.
(Continued)
N: Customer
number or
Submitted Under Advice Letter No. l5-05
ISSUED: December 3, 2015 EFFECTM: December 7, 2015
ROCKY MOUNTAIN
POWER
A OVlSlOil OF PACIFTOnP
Second Revision of Sheet No. 117.2
I.P.U.C. No. 1 Canceling First Revision of Sheet No. 117.2
ELECTRIC SERYICE SCIIEDULE NO. ll7 - (Continued)
SHEET NO. 117.2 IS SUSPENDED AS OF DECEMBER 7,2015
ELECTRIC SERYICE REGULATIONS: Service underthis schedule will with
the terms of the Electric Service Agreement between the Customer and
Service Regulations of the Company on file with and approved by
Electric
utilities
of andCommission, including future applicable amendments, will be
incorporated in said Agreement.
Submitted Under Advice Letter No. 15-05
ISSUED: December 3, 2015 EFFECTM: December 7, 2015
ATTACHMENT A
NAvr cANr
Memorandum
To:
-
PacifiCorp/Rocky Mountain Power
From:
-Navigant
Date: January 6,2016
Re: Cost Effectiveness for the See Ya Later Refrigerator Program - Idaho
Navigant has developed this memo in response to PacifiCorp's proposed See Ya Later
Refrigerator Program cost effectiveness modeling needs in the state of Idaho.
This memo presents the cost effectiveness results of individual analysis runs for the state of
Idaho. Each scenario is analyzed using modeled assumptions provided by PacifiCorp. These
scenarios utilize the following assumptions:
Aooided Costs: Navigant utilized the "East" 71,%Plugloads decrement provided in the
2015 PacifiCorp Integrated Resource Plan along with the Idaho Residential Plug load
shape to calculate avoided costs.
Mod.eling Inpzfs: Navigant utilized per unit measure savings provided by PacifiCorp in
the file SYIR RFP C-E Inputs.xlsx.
Energy Rates: Navigant utilized the 2014 rates provided by PacifiCorp and applied an
escalation of '1,.9o/o to arrive at estimated rates for PY2016.
Line Loss Factors: Navigant utilized the residential line loss factor throughout the
analysis.
Eoaluation Period: The evaluation period for this analysis uses progr.iln year 20L6 as
year one.
This memo will begin by addressing the inputs used in the analysis of the Idaho See Ya Later
Program. The cost-effectiveness inputs are as follows:
1375 Walnut Street
Suite 200
Boulder C0 80302
303.728.2500 phone
303.728.2501 lax
Table 1- SYLR In
Discount Rate
Residential Line Loss
Residential Energy Rate ($/kWh)
Inflation Ratel
6.66"/"
11.470/0
$0.1089
7.q)o/o
1 Future rates determined using a 1.9% annual escalator.
Memorandum a I Pacificorp
0u06120L6
Page2of.2
Residential and Business Pick-Up $22.72
Residential and Business Pick-Up
Residential and business pick-up and rerycle 1st refrigeratorlfreezer
Residential and business pick-up and recyde 2nd refrigerator/freezer
The PY2016 cost/benefits results at the program level are as follows:
Table 5 - SYLR Level Cost-Effectiveness Results (Residential and Business Pick-U
Total Resource Cost Test (PTRC) +
Conversation Adder
Total Resource Coet Test (TRC)
NoAdder
Utility Cost Test (UCT)
Rate Impact Test (RIM)
Participant Cost Test (PCT)
Lifecycte Reverrue Impacts ($/k!Vh)
$0.0994
$0.094
$0.0994
$126,720
$126;7n
$126,720
$275,323
$o
$63,639 -$63,081
$52854 -W,f!57
$52854 -fi68,867
$52854 -$217,469
$404,s82 $404,s82
0.50
0.6
0.46
0.21
nla
$0.000010499
Table2-SYLRAnnual
Table 3 - SYLR
Table4-SYLRPartici