171017 Idaho Power DSM.pdf

Case No. IPC-E-17-03
Order No. 33908 Final Order
Contact: Matt Evans
[phone] office
[phone] cell
www.puc.idaho.gov

PUC approves expenses tied to Idaho Power
efficiency programs
BOISE (Oct. 17, 2017) – State regulators have found that more than $40 million Idaho Power spent
on efficiency programs was prudently incurred.
Money spent on efficiency programs must be shown to be cost effective in order to be funded by the
Energy Efficiency Rider paid by Idaho Power customers. For residential customers, the rider equals
3.75 percent of the energy-related charges on the monthly bill.
All of Idaho’s major investor-owned utilities have efficiency riders to pay for programs designed to
modify the demand for energy among customers.
Also referred to as demand side management (DSM), the efficiency programs target the demand for
energy rather than its supply, or generation.
The programs are subjected to multiple tests to gage their cost-effectiveness, or that their savings is
greater than their cost.
If the cost is found to exceed the benefit to customers, it is borne by shareholders rather than
customers.
Idaho Power offers its customers 22 efficiency programs, several educational initiatives and three
demand-response programs.
The goal of the demand-response programs is not to cut energy use but rather to shift it away from
periods of peak demand for energy among customers, in order to reduce demand on a utility’s
generation system and prevent or delay the need for new generation.
Idaho Power’s demand-response programs provided the company with 392 MW of load-shedding
capacity in 2016.
Its efficiency programs saved a total of 170,792 megawatt-hours (MWh) in 2016 – enough to power
14,000 “average” homes for a year.
The savings represents a 4-percent increase over 2015 and consisted of 88,161 MWh from
commercial and industrial customers, 42,269 MWh from the residential sector, 15,747 MWh from
irrigators and an estimated 24,616 MWh of energy-efficiency market transformation savings
through the Northwest Energy Efficiency Alliance.
The utility had asked the Commission to approve approximately $31.32 million spent on the
programs for Idaho customers in 2016, in addition to $7.06 million in incentives awarded through
the demand-response programs.
The company also requested Commission approval to recover approximately $1.86 million in
incremental labor costs incurred on the programs between 2011 and 2016.
The Commission’s order approved $40,225,286 in DSM-related expenses, slightly less than the
$40,242,182 requested.
While the bulk of the funding for the DSM programs is through the Energy Efficiency Rider collected
directly from customers at 3.75 percent of base rate revenues (energy use and $5 monthly service
charge), funding for the demand-response programs is included in base rates.
To read the Commission’s decision or review documents filed in the case, go to the Commission’s
website, www.puc.idaho.gov. Click on “Open Cases” under the “Electric” heading, scroll down to
Case Number IPC-E-17-03. Or go here.