20161101notice_of_application_order_no_33639.pdf

Office of the Secretary
Service Date
November 1, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP OBA ROCKY MOUNTAIN
POWERFORPRUDENCY
DETERMINATION OF DEMAND-SIDE
MANAGEMENT EXPENDITURES
--------------------
) CASE NO. PAC-E-16-14
)
) NOTICE OF APPLICATION
)
) NOTICE OF
) INTERVENTION DEADLINE
)
) ORDER NO. 33639
On October 11, 2016, PacifiCorp dba Rocky Mountain Power applied for an Order
establishing that it prudently incurred demand-side management (DSM) expenditures in 2014
and 2015 of $7,460,715. Generally, DSM refers to utility activities and programs that encourage
customers to use less overall energy or use less energy during peak usage hours. Rocky
Mountain's DSM programs include: Low Income Weatherization/Education (Schedule 21 );
Refrigerator Recycling (Schedule 117); Home Energy Saver (Schedule 118); Home Energy
Reports (no tariff); Non-Residential Energy Efficiency/wattsmart Business (Schedule 140).1
BACKGROUND
The Company declares that it has offered a variety of DSM programs to its customers
since the 1970s. In 2006, the Commission approved a set of DSM programs and provided the
Company with a cost recovery mechanism. Typically, DSM programs have two parts. First, the
utility designs and implements 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 ] 91. 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
1 Energy FinAnswer; FinAnswer Express; and Agricultural Energy Services have been consolidated into a single
"wattsmart Business program." See Order No. 33178. Also, in 2011, the Company's Irrigation Load Control
program was cancelled and treated as a system-wide benefit. As such, the performance results of this program are
not included in annual DSM reports, but are instead submitted as a confidential document to the Commission. See
Order No. 32760.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33639 1
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 during the period under consideration, Rocky
Mountain offered five distinct DSM/energy efficiency programs. Application at 2-3. The
programs are summarized 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 1 and 36. Services and products under this program include
insulation, duct sealing, energy efficient windows, CFL and LED lighting, and
other services. Application attachment 1 at 18-21.
Refrigerator Recycling -this program is designed to decrease electric usage
through the voluntary removal and recycling of inefficient refrigerators and
freezers. Customers receive a $50 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 22-24.
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 include 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. Id. at 24-26.
Low Income Conservation Education -this program targets customers
receiving low-income home energy assistance funds and provides information
about how to better conserve energy and understand their bill. It also provided
customers with measures aimed at furthering those goals. Id. at 26-28
Non-Residential Energy Efficiency -In 2014, commercial and industrial
energy efficiency programs were consolidated into a single portfolio labeled
as wattsmart. The wattsmart program is aimed to help commercial and
industrial customers to improve the efficiency in lighting, HV AC, motors,
building envelopes, and other equipment.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33639 2
B. The Deferred Expenses
YOU ARE FURTHER NOTIFIED that Rocky Mountain asserts that the DSM
programs resulted in energy savings in 2014 and 2015. The utility reports that overall the
programs were cost-effective. Application at 5. However, the Company states that its Low
Income Weatherization Program was not cost-effective under the TRC or UCT tests. Id. at 6.
YOU ARE FURTHER NOTIFIED that Rocky Mountain requests authorization to
recover $7,460,715 in DSM expenses from the DSM rider account and asserts these expenses
were "prudently incurred." Application at 1. This request includes $3,222,115 for expenditures
made in 2014, and $4,238,600 in 2015.
YOU ARE FURTHER NOTIFIED that in support of its Application, the Company
submitted prefiled testimony, an annual DSM report for each year, the results of its cost­
effectiveness analysis, and the third-party program evaluation reports.
YOU ARE FURTHER NOTIFIED that the Company has requested that its
Application be processed under Modified Procedure.
YOU ARE FURTHER NOTIFIED that the Application and supporting documents
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
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.
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. Persons intending to participate in this
matter must file a Petition to Intervene no later than twenty-one (21) 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.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33639 3
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, the
Commission Staff will convene an informal prehearing conference for the parties to discuss a
schedule to process this case and other issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Rocky Mountain Power representatives in this matter:
Ted Weston
Daniel E. Solander
Michael S. Snow
1407 West North Temple, Suite 330
Salt Lake City, Utah 84116
Email:
Data requests in the matter should be addressed to:
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
Email (preferred)
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.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than twenty-one (21) days from the service
date of this Order.
IT IS FURTHER ORDERED that once a Notice of Parties is issued, Staff shall
convene an informal prehearing conference to discuss a schedule to process this case and other
issues as may be raised by the parties.
IT IS FURTHER ORDERED that discovery 1s available pursuant to the
Commission's Rules of Procedure 221-234.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 33639 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of October 2016.
ATTEST:
D. Jewe
ission Secretary
O:PAC-E-16-14 bk
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
, PRESIDENT
ERIC ANDERSON, COMMISSIONER
ORDER NO. 33639 5
3/ s.·-t