140710_IPCDSM.pdf

Idaho Public Utilities Commission
Case No. IPC-E-14-04, Order No. 33032
Contact: Gene Fadness [phone]

Idaho Power seeks prudency declaration
on $26 million investment in energy efficiency

BOISE (July 10, 2014) – Idaho Power Company is asking state regulators to determine that
nearly $26 million of company investment in energy efficiency and demand-response programs
during 2013 was prudently incurred.

The application does not impact rates. The Idaho Public Utilities Commission is taking public
comment on Idaho Power’s application through July 29.

The efficiency programs are primarily funded through a 4 percent Energy Efficiency Rider on
customer bills. The demand-response programs are included in the annual Power Cost
Adjustment, which is part of the Annual Adjustment Mechanism listed on customer bills. An
energy-efficiency program is one in which less energy is used to perform the same function. A
demand-response program is one that shifts use to non-peak times of day, reducing demand on
a utility’s generation system.

Idaho Power’s 18 energy efficiency programs and educational initiatives contributed toward an
estimated 107,284 megawatt-hours in energy savings during 2013, the company reports. About
18,346 MWh of that savings came from Idaho Power’s participation in market transformation
programs offered by the Northwest Energy Efficiency Alliance. One demand-response program
resulted in a 48-megawatt reduction in demand on Idaho Power’s generation system.

The company’s energy savings and demand reduction are down from the 2012 totals of 170,220
MWh in energy efficiency savings and 438 MW in demand response. Idaho Power says part of
that reduction is attributable to the region’s more stringent methods of evaluating, measuring
and verifying the programs to determine energy efficiency. The reduction in demand response
is due primarily to the one-year suspension of two demand-response programs: an air
conditioner cycling program for residential customers and a load control program for irrigation
customers. Modified versions of the air conditioner cycling and irrigation load control
programs are being resumed this summer.

The company also spent less money on energy efficiency and demand response programs,
about $26.8 million during 2013 compared to $46.3 million during 2012.

The programs must pass cost-effectiveness tests to ensure that the cost of the programs does
not exceed the benefit to customers. One of the tests, the Total Resource Cost test, must show
that all customers benefit from the programs, not just those who directly participate.
Since Idaho Power made the application on March 17, commission staff has been conducting its
own review of the programs.
Some of Idaho Power’s energy efficiency programs include offering customer rebates for
increased use of heating and cooling efficiencies and energy efficient lighting and appliances as
wells as creating efficiencies in commercial and industrial buildings. The one demand-response
program used during 2013, called Flex Peak, allows large commercial and industrial customers
to reduce their electric loads for short periods during peak summer days.

Idaho Power said it retains independent third-party consultants to provide impact and process
evaluations of the programs, recommend improvements and validate energy savings. It also
uses a 14-member Energy Efficiency Advisory Group to assist with the development of the
programs. The EEAG represents a cross-section of customers from the residential, industrial,
commercial and irrigation sectors, other stakeholders and staff members from the Idaho and
Oregon public utility commissions.

Comments are accepted via e-mail through July 29 by accessing the commission’s homepage at
www.puc.idaho.gov and clicking on "Open Cases” under the “Electric” heading. Fill in the case
number (IPC-E-14-04) and enter your comments. Comments can also be mailed to P.O. Box
83720, Boise, ID 83720-0074 or faxed to [phone].

Electric utilities are required to file an annual report of their energy efficiency and demand-
response programs. Idaho Power’s report is available by going to the case file above on the PUC
website and clicking on “DSM Annual Report 2013.”

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