20160411final_order_no_33497.pdf

Office of the Secretary
Service Date
April 11,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACIFICORP DBA ROCKY MOUNTAIN )CASE NO.PAC-E-16-04
POWER TO CANCEL SCHEDULE 117,)
RESIDENTIAL REFRIGERATOR )ORDER NO.33497
RECYCLING PROGRAM )
On December 3,2015,PacifiCorp dba Rocky Mountain Power (“Rocky Mountain”or
“Company”)filed Tariff Advice No.15-05 requesting authorization to suspend Electric Service
Schedule No.117,Residential Refrigerator Recycling Program (“Program”),because the vendor
for the Program,Jaco Environmental (“Jaco”),had entered into bankruptcy and subsequently
terminated its business operations.The Commission approved suspension of the Program on
December 7,2015.On January 27,2016,Rocky Mountain filed the above-titled Application
seeking the Commission’s authorization to cancel the Program,effective March 1,2016.
On February 3,2016,the Commission issued a Notice of Application and Modified
Procedure with a 21-day comment period.See Order No.33462.Commission Staff (“Staff’)
was the only party to file comments regarding the Company’s Application but neglected to
submit its comments within the 21-day comment period established by the Commission.
THE APPLICATION
Rocky Mountain reported that in 2015 the Company issued a competitive Request for
Proposals (“RfP”)for its Home Energy Savings programs,including the refrigerator recycling
programs.Two vendors submitted bids under the RFP,and Rocky Mountain awarded the
recycling program to Jaco.
Following Jaco’s bankruptcy,Rocky Mountain contracted a third-party vendor named
Navigant to determine if re-instituting the Program was just and reasonable,and in the public
interest.Navigant analyzed the costs and benefits of the Program utilizing information provided
by the Appliance Recycling Centers of America (ARCA).Navigant determined that the Program
is not cost-effective.A memorandum from Navigant to Rocky Mountain is attached to the
Company’s Application as Attachment A.Table 5 in the Application is pulled from the
Navigant memo and demonstrates that the benefit/cost ratio is well below 1.00 for the Program
according to five different cost-effective tests including the Total Resource Cost Test (TRC)and
the Utility Cost Test (UCT).
ORDER NO.33497 1
STAFF COMMENTS
Staff investigated both the cost-effectiveness of the Program and the impact of the
Program on Schedule No.191 —Customer Efficiency Services Rate.Staff concluded that there
are only three companies that operate refrigerator recycling programs near Rocky Mountain’s
service territory:Jaco,ARCA and Consumers Energy (CSG).Jaco has filed for bankruptcy,
ARCA has already provided Program cost data to Rocky Mountain,and CSG currently operates
solely in Iowa.Consequently,Staff supports the Company’s proposal to cancel Schedule No.
117 because the Program is not cost-effective and there are no other vendors available in Rocky
Mountain’s service area.
Staff and the Company discussed Program costs to ascertain whether a lower delivery
cost could be negotiated.According to ARCA,the price it provided for the analysis had already
been reduced from the initial price they provided in their contract bid.Staff also considered
whether or not the Program could be administered internally.Staff determined that the overhead
costs of the Program would still be very high and would not make the Program cost-effective.
Finally,Staff observed that when Rocky Mountain made its initial request to suspend
the Program in December 2015,there was no adjustment made to Schedule No.191.Rocky
Mountain subsequently filed another Application to increase the rates in Schedule No.191
(Customer Efficiency Services Rate)in Case No.PAC-E-16-02.Staff noted that in this
Application the Program has been correctly removed and future DSM costs included in the PAC
E-16-02 case do not include ongoing costs associated with the Program.Thus,Staff concluded
that no future expenses will be incurred as a result of canceling the Program in this case.
FINDINGS AND CONCLUSIONS
The Commission has jurisdiction over PacifiCorp dba Rocky Mountain Power,an
electric utility and its Application seeking the Commission’s authorization to cancel the Schedule
No.117 Program pursuant to Title 61 of the Idaho Code.
The Commission thoroughly reviewed Rocky Mountain’s Application,including
attachments,to cancel its Schedule No.117 Residential Refrigerator Recycling Program.The
Commission finds that the Company’s request to cancel the Program,previously suspended by
the Commission in December 2015,through approval of Tariff Advice No.15-05,is reasonable
and warranted.The Commission finds that the insolvency of the Program’s vendor,Jaco,
coupled with the lack of alternative vendors capable of administering the Program,provide
ORDER NO.33497 2
sufficient justification for the Company’s request to cancel the Program.further,the
Commission finds that the Company’s Application presents adequate evidence that the Company
did make reasonable efforts to search for alternative vendors in its service area and assess the
overall cost-effectiveness of the Program.Consequently,we grant Rocky Mountain’s request to
cancel its Schedule 117.
ORDER
if IS HEREBY ORDERED that Rocky Mountain’s Application seeking the
Commission’s authorization to cancel Schedule No.117,Residential Refrigerator Recycling
Program,is approved.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
ORDER NO.33497 3
Ti’DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /1
day of April 2016.
PA1L KJELLcA DER,PRESIDENT
KRISTINE RAPER,MMISSIONER
ATTEST:
J€tn D.Jewell U6mmissionSecretary
0:PAC-E-I 6-04np2
ERIC ANDERSON,COMMISSIONER
ORDER NO.33497 4