130626_PACSch155.pdf

Idaho Public Utilities Commission
Case No. PAC-E-13-10, Order No. 32834
June 28, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Rocky Mountain Power seeks changes to irrigation program

The Idaho Public Utilities Commission is taking comment through July 15 on an application by
Rocky Mountain Power to make changes to a tariff for its irrigation customers.

The utility seeks to suspend two portions of an Agricultural Energy Services program: 1) an
exchange under which participants turn in worn nozzles, gaskets or drains for equivalent new
equipment at no cost to the customer and 2) financial incentives to irrigators when they make
pivot and linear equipment improvements.

Rocky Mountain hired a third party, Navigant Consulting, to determine whether the programs
were cost-effective for the utility and its customers. Navigant reported that while there is
uncertainty regarding the analysis, “it appears that the Nozzle Exchange and prescriptive pivot
and linear system upgrades are not cost-effective based on the information available.”

The utility proposes instead a “custom analysis” on a site-by-site basis that would include pre-
installation measurements to develop savings estimates and a post-installation verification of
savings.

The Idaho commission requires that before the cost of energy efficiency programs can be
included in customer rates they must meet cost-effectiveness tests to ensure the cost of the
programs do not exceed the savings realized for all the company’s customers, not just those
who participate in the program.

According to the Navigant study, the nozzle exchange and financial incentive for pivot and
linear equipment improvements fails all the cost-effectiveness tests but one.

Some of the cost tests include:

 a utility cost test that measures whether the program causes the utility’s revenue
requirement to increase. (These programs passed that test.)
 a participant cost test, which demonstrates that those who participate in the program
benefit over the life of the program.
 a ratepayer impact measure that determines whether the program causes utility rates
to increase
 a total resource cost test that measures whether the total costs in the utility service
territory decrease as a result of the programs.

By eliminating the two programs and converting them into a custom program, the program
passes all the cost-effectiveness tests, Rocky Mountain claims.

The commission is taking comment on the company’s proposal through July 15. Comments are
accepted via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and
clicking on "Case Comment or Question Form,” under the “Consumers” heading. Fill in the case
number (PAC-E-13-10) and enter your comments. Comments can also be mailed to P.O. Box
83720, Boise, ID 83720-0074 or faxed to [phone].

A full text of the commission’s order, along with other documents related to this case, is
available on the commission’s Web site. Click on “Electric” and then on “Open Cases” and scroll
down to the above case number.