HomeMy WebLinkAbout150513_IPCdemandresponse.pdf
Case No. IPC-E-15-03, Order No. 33292
Contact: Gene Fadness (208) 334-0339, 890-2712
www.puc.idaho.gov
Commission OKs Idaho Power proposal
to operate its own demand response program
BOISE (May 13, 2015) – State regulators have agreed to allow Idaho Power Company to
operate its own energy demand reduction program for its large commercial and industrial
customers.
Idaho Power maintains it can operate a program at less cost and with better or equal results
than has the third-party vendor that has been operating the program since 2009. The “Flex
Peak” program, previously operated by EnerNoc Inc., provided financial incentive to large
commercial and industrial customers to curtail their energy use during peak-use hours of the
summer months.
The Idaho Public Utilities Commission granted Idaho Power authority to operate its own
program beginning this summer. “The commission strongly supports the use of commercial
and industrial demand-response programs,” the commission said. “And while EnerNoc’s
program was robust and cost-effective, customers will benefit if the company (Idaho Power)
can deliver similarly reliable demand response at the same or less cost.”
Now is a good time to let Idaho Power try its own program since the utility is not anticipating
capacity deficits for the next few years, the commission said.
Under Idaho Power’s program, the utility will call at least three “dispatch events” between June
15 and August 15, notifying volunteer customers on or about two hours in advance that they
will need to reduce or curtail their energy use. The dispatch events will be during peak-use
hours when demand on Idaho Power’s system is the greatest. Those hours are typically
between 2 p.m. and 8 p.m. on weekdays, excluding holidays. Each dispatch event will last
between two and four hours, but no more than 15 hours per week or 60 hours per summer
season. Idaho Power proposes to provide incentive payments to customers who agree to
participate.
The utility says operating Flex Peak internally will cost from $1.1 million up to $1.4 million if the
entire 35 megawatts of potential savings were dispatched for the maximum allowed 60 hours.
Costs under the EnerNoc program were about $2 million.
Idaho Power said savings from internal operation of Flex Peak will be passed directly to
customers. Further, all customers benefit when Idaho Power does not have to buy or generate
as much power from other more costly sources during peak-use hours when power is the most
expensive.
The commission noted the concerns expressed by commission staff, the Industrial Customers of
Idaho Power and the Idaho Conservation League about Idaho Power operating its own
program. Consequently, it directed Idaho Power to file a report within one year detailing its
experience running the program, cost-and-benefit comparisons to those achieved under
EnerNoc, participant performance and any proposed changes to further improve the program.
The company will also file an annual end-of-season report that will specify, among other items,
number of participants, number of megawatts of demand response achieved and a detailed
cost analysis.
Idaho Power also offers demand-response programs to residential and irrigation customers.
According to Idaho Power, the cost of operating all its demand response programs in 2014 was
$10.6 million, but the value accrued to the company and its customers as a result of the
reduced demand was $16.7 million. Idaho Power plans at least 390 MWs of demand reduction
from all its programs during 2015.
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