960124.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
RANDY LOBB
GARY RICHARDSON
WORKING FILE
FROM:SCOTT WOODBURY
DATE:JANUARY 24, 1996
RE:CASE NO.  WWP-E-96-1
TERMINATION OF ENERGY EFFICIENCY GRANT PROGRAM
On January 19, 1996, The Washington Water Power Company (Water Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of a revision to its electric tariff Schedule 67—Energy Efficiency Service for New Residential Buildings—Idaho.  As proposed the revision would end direct grants for the installation of weatherization materials and energy efficiency measures in residential buildings, effective for buildings permitted on or after March 1, 1996.  Under the Company’s present tariff grants are available for up to $720 for single-family houses and up to $255 for multi-family units.  There is no rate change or revenue impact associated with the Company’s filing.
The grant program, the Company states, was started in 1989 in an effort to move Pacific Northwest building standards to a greater energy efficiency level.  In support of its Application the Company maintains that current residential construction practices conform to the specifications for which the grants were intended to promote.  Homebuilders, the Company contends, now expect, and builders routinely provide as standard practice, such features as 2x6 exterior wall framing with R-19 insulation, increased roof insulation, double glazed windows, etc.  It is therefore not necessary, the Company contends, to continue the program.  Additionally, the Company states that almost all of the jurisdictions in Water Power’s service territory that originally supported the Northwest Energy Code (NWEC) plan to continue to support either the NWEC or the Model Energy Code (MEC) for residential construction.  The Company contends, that this continued support by building code officials is the most critical element in maintaining energy efficient building practices.
The Company has requested an effective date of March 1, 1996, for the proposed tariff change.
Staff Recommendation
Staff recommends that the Company’s Application be processed under Modified Procedure.  This will provide Staff and north Idaho homebuilders the opportunity to submit comments.
Commission Decision
How does the Commission wish to process the Company’s Application?  Is Modified Procedure appropriate?  If not, what is the Commission’s preference?
Scott Woodbury
vld/M:WWP-E-96-1.sw