170519 RMP DSM.pdf

Case No. PAC-E-16-14, Order No. 33766
Contact: Matt Evans, [phone] or 520-4763
www.puc.idaho.gov

Commission finds Rocky Mountain Power efficiency
expenses to be prudently incurred
BOISE (May 19, 2017) – State regulators have approved Rocky Mountain Power’s $7.46 million
investment in efficiency programs in 2014 and 2015.
The programs encourage customers to use less energy or shift their energy use to off-peak hours in
an effort to help reduce or eliminate generation costs. They are geared toward all customer classes
and include low-income weatherization and education, Refrigerator Recycling, Home Energy Saver
and Home Energy Reports.
The decision by the Idaho Public Utilities Commission does not impact base rates. Instead, it allows
the company to recover expenses related to the programs through funds generated by an efficiency
rider paid by Rocky Mountain Power’s customers. The rider appears on bills as “Customer
Efficiency Services” and is set at 2.7 percent of the monthly bill amount.
Costs deemed ineffective are borne by the company’s shareholders rather than customers.
Rocky Mountain Power, a division of Pacificorp, provides electric service to approximately 75,000
eastern Idahoans.
In addition to gaging the program’s cost-effectiveness, the commission determines whether the
programs benefit all customers, not just those who directly participate. To do so, commission staff
audited the company’s internal controls and processes and interviewed program managers.
The programs generated 27,102 MWh of savings over the two-year period, exceeding established
targets both years. This savings not only reduces expenses related to power purchases and
generation but also eliminates or delays the need to build costly new generation facilities, the
company said.
Energy savings realized by the programs increased by 38 percent from 2014 to 2015 (11,410 MWh
to 15,692 MWh), largely as a result of changes to the residential programs.
The company said its expenses increased over that period, from $3,222,115 in 2014 to $4,238,600
in 2015, due to increased customer participation.
Three tests were conducted to determine the programs’ cost-effectiveness.
Documents related to this case, including the commission’s final order, are available on the
commission’s Website at www.puc.idaho.gov. Under the “Electric” heading click on “Closed Cases”
and scroll down to Case No. PAC-E-16-14.