APP.docx

(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF THE WASHINGTON WATER POWER COMPANY FOR APPROVAL OF REVISED ELECTRIC TARIFFS FOR IMPLEMENTATION OF ENERGY EFFICIENCY PROGRAMS FOR RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS
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CASE NOS. WWP-E-98-9
                     WWP-G-98-2
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE

Electric—
YOU ARE HEREBY NOTIFIED that on August 24, 1998 (and by subsequent September 25, 1998 and October 2, 1998, revisions), The Washington Water Power Company (Water Power; Company; WWP) filed an Application with the Idaho Public Utilities Commission (Commission) requesting approval of proposed revisions to the Company’s Electric Schedule 90 Energy Efficiency Tariffs and Extension of the related Schedule 91 funding mechanism.  Pursuant to prior Commission Order, Water Power funds its Schedule 90 electric energy efficiency conservation programs in Idaho by means of a non-by passable distribution charge, i.e., 1 1/2% of retail electric sales.  (Schedule 91 Energy Efficiency Rider).
As described by the Company, the goals of the Schedule 91 Energy Efficiency Rider and Energy Efficiency Programs are to
1.  Maintain continuity in the promotion and support of energy efficiency;
2.  Provide for long-term resource diversity through energy saving programs;
3.  Recognize the timing of resource needs;
4.  Promote the transformation of consumer markets to energy efficient choices; and
5.  Provide customer service value.
The purpose of the Schedule 91 Energy Efficiency Rider, the Company states, is to continue energy efficiency funding irrespective of increased competition in the electric industry.
Water Power’s Schedule 91 Energy Efficiency Rider collects approximately $4.7 million per year.  The revenue funds nine programs.  For the period of 1997 through July 1998, Water Power contends that its programs have resulted in estimated savings of 5.4 aMW (including projects in progress).
In this filing, Water Power proposes the following three changes:
∙Removal of the termination date of December 31, 1999 in the Schedule 90 Energy Efficiency Programs and Schedule 91 Energy Efficiency Rider for the stated purposes of program continuity for customer service and to avoid administrative disruption.
∙Providing a mechanism for program review (examination of funding levels and savings results) and modification in lieu of no termination date.
—Water proposes that its stakeholder group, the External Energy Efficiency Board (Triple E Board), formerly known as the DSM Opportunities Group or “DOG”, be convened annually to review program design results and future programs.  A report will be provided to the Commission in late November of each year.  This proposal, the Company states, essentially formalizes the informal, voluntary public involvement process Water Power has undertaken since 1995.  The Triple E Board and Water Power Staff will also investigate the availability of potential energy efficiency programs on a triennial basis beginning in the year 2000.
∙Several housekeeping revisions (major changes in the programs, the Company contends, are not warranted at this time due to ongoing fine tuning and the opportunity provided by the mechanism for future modifications.)  Revisions proposed at this time include
—Removal of the Manufactured Housing Acquisition Program (MAP).  This was a regional program performed in conjunction with the BPA.
—Duct testing and sealing has been added to the limited-income residential programs.
—The Assisted Technologies program now focus on low-end technologies to increase customer acceptance.  Water Power’s experience with home automation in the past year has shown that the upper-end market does not need utility intervention to increase customer acceptance.
—Throughout the proposed tariff revisions budget ceilings have been removed on a program by program basis.  Other changes include inclusion of Schedules 12 and 22 when program offerings are available to Schedules 11 and 21, respectively.
—The limited income program will incorporate the addition of the federal Department of Energy approved guidelines for health and safety repairs on program-qualified residences.  Also proposed is a revision to the reimbursement process by combining funds of the participating agencies.
—Under the General Rules and Provisions, the budget sealing of $100,000 per calendar year per site and $200,000 per individual project is removed.  These terms were applicable only to the Site Specific and New Technologies programs.  Instead, these two programs will have their own cap of $250,000 per project per year and $150,000 per project per year, respectively.
Water Power has nine active programs plus active participation in the regional market transformation effort, the Northwest Energy Efficiency Alliance.  The programs include:
Program
Sector
∙HVAC — furnace filter component
—duct sealing
∙Limited Income Energy Efficiency
∙Site Specific
∙Trade Ally
∙Resource Management Partnership
∙Energy 2,000—New Technologies
—LED Traffic Lights
—LED Exit Signs
—Assisted Technologies
∙Prescriptive Lighting
∙Prescriptive Fuel Switch
Residential
Residential
Residential
Commercial/Industrial
Commercial/Residential/Industrial
Commercial
Commercial
Commercial
Commercial
Residential
Commercial
Commercial
The Company’s filing include descriptions of programs, and a detailed cost-effectiveness analysis of all existing programs, proposed modifications to ongoing programs and new programs considered for inclusion in the WWP portfolio.
Natural Gas—
Water Power has reviewed the potential for providing natural gas efficiency services to natural gas customers.  The initial DSM tariff rider and program filing in 1995 included a natural gas tariff rider of approximately 0.5% and corresponding program offerings.  The natural gas tariff rider was reduced to 0.00% beginning in 1997 as a result of the lack of cost-effective program opportunities at the time of its approval.  The analysis detailed in the Company’s filing again comes to the conclusion that gas efficiency programs are not sufficiently cost-effective to warrant a programmatic effort at this time.
Water Power will continue to monitor the weighted average cost of gas (WACOG) (as a proxy for the gas avoided costs) and will re-evaluate the cost-effectiveness of natural gas programs should the WACOG increase significantly.  Water Power will re-evaluate the potential for gas efficiency programs if changes in the WACOG, gas end-use technologies or methods of program delivery warrant the effort.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s Application in Case Nos. WWP-E-98-9 and WWP-G-98-2.  The Commission has preliminary found that the public interest regarding the proposed changes to the Company’s Electric Schedule 90 Energy Efficiency Tariff and related Schedule 91 Funding Mechanism may not require a hearing to consider the issues and that the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing.  Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in this proceeding unless it receives the written protest or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used.  Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case Nos. WWP-E-98-9 and WWP-G-98-2 is Friday, October 30, 1998.  Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written protests or comments are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing.  If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it.  Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that the Company’s Application has been filed with the Commission and is available for public inspection during regular business hours at the Commission office and at the Idaho offices of The Washington Water Power Company.  Written comments concerning this Application are to be mailed to the Commission and the Company at the addresses reflected below:
COMMISSION SECRETARYTHOMAS D. DUKICH
IDAHO PUBLIC UTILITIES COMMISSIONMANAGER RATES & TARIFF ADMIN
PO BOX 83720THE WASHINGTON WATER POWER CO.
BOISE, IDAHO  83720-0074E. 1411 MISSION AVENUE
PO BOX 3727
Street Address for Express Mail:SPOKANE, WA 99220
472 W WASHINGTON STDAVID J. MEYER
BOISE, IDAHO  83702-5983VICE PRESIDENT/GENERAL COUNSEL
THE WASHINGTON WATER POWER CO.
E. 1411 MISSION AVENUE
PO BOX 3727
SPOKANE, WA 99220
All comments should contain the case caption and case number shown on the first page of this document.
DATED at Boise, Idaho this day of October 1998.

Myrna J. Walters
Commission Secretary
bls/N:wwpe989.sw
COMMENTS AND ANNOTATIONS
Text Box 1:
TEXT BOXES
Office of the Secretary
Service Date
October 9, 1998