130816_PACirrigationtariff.pdf

Idaho Public Utilities Commission
Case No. PAC-E-13-10, Order No. 32879
August 19, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Two Rocky Mountain irrigation programs suspended

The Idaho Public Utilities Commission is granting an application by Rocky Mountain Power to
suspend two efficiency programs for irrigators that have been determined to not be cost-
effective.

The programs, which are suspended effective July 15, include one in which participants turn in
worn nozzles, gaskets or drains for equivalent new equipment at no cost and another where
irrigators are given financial incentives when they make pivot and linear equipment
improvements.

Rocky Mountain hired a third party, Navigant Consulting, which, the commission determined,
“presented clear and compelling evidence,” that the programs are not cost-effective. The
programs are just part of a number of programs funded by a 2.1 percent “Customer Efficiency
Services Rate Adjustment” on all Rocky Mountain Power customer bills. The Idaho commission
requires that all programs funded by the 2.1 percent rider pass cost-effectiveness tests to
ensure their cost does not exceed the savings realized for all the company’s customers, not just
irrigators who participate in the programs. The total program budget for 2012 was about
$652,000.

During some years customer efficiency programs may be cost-effective but then other factors,
such as decreased customer participation and market conditions, may render them not cost-
effective, the commission said. “Therefore, the commission remains vigilant in its oversight and
assessment of these programs and constantly seeks to ascertain whether program funds are
being utilized in a cost-effective manner,” the commission said.

Rocky Mountain will instead continue its “custom analysis” on a site-by-site basis that would
include pre-installation measurements to develop savings estimates and then a post-installation
verification of savings.

A full text of the commission’s order, along with other documents related to this case, is
available on the commission’s Web site at www.puc.idaho.gov. Click on “Electric” and then on
“Open Cases” and scroll down to Case No. PAC-E-13-10.

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