190305 Idaho Power EE rider proposal.pdf

Case No: IPC-E-19-06
Order No: 34264
Contact: Matt Evans
Office: [phone]
Cell: [phone]
[e-mail]
State regulators set comment deadline for Idaho
Power proposal to lower efficiency surcharge
BOISE (March 5, 2019) – Idaho Power has proposed slightly lowering the surcharge its customers pay to
fund the utility’s efficiency and conservation programs.
The Idaho Energy Efficiency Rider is currently set at 3.75 percent of the energy charges on a customer’s
bills. Idaho Power has proposed lowering the surcharge to 2.75 percent, effective June 1.
If approved by the Idaho Public Utilities Commission, the change would lower the bill of the typical
residential customer who uses 950 kilowatt-hours per month by 83 cents, or 0.9 percent.
The rider, which appears as “Energy Efficiency Services” on customer bills, funds the implementation
and analysis of the utility’s Demand-Side Management (DSM) programs, so-called because of the fact
that they target customer demand for energy rather than supply.
Decreasing the surcharge to 2.75 percent would better align the DSM programs’ funding with
expenditures reflected in current projections, the utility said in its application.
If the Commission approves the proposal in full, the utility’s annual revenue collection would decrease
by about $10.4 million, according to the application.
The change would not impact Idaho Power’s DSM programs or offerings.
The Commission authorized the rider’s implementation in 2002, as a means to fund Idaho Power’s DSM
programs.
These programs, which include 16 energy efficiency programs, educational initiatives and three demand
response programs designed to shift energy use from periods of peak demand, help the company lower
the demand for energy in order to avoid costs associated with increasing its supply.
Costs associated with the DSM programs are scrutinized annually by the Commission for cost-
effectiveness. The costs can only be recovered from customers if the Commission determines the costs
are prudent, or that all customers would pay more for energy if the programs did not exist.
Upon its implementation in 2002, the rider was set at 0.5 percent of energy sales.
It increased to 4.75 percent in 2009.
The current rate, 3.75 percent, was authorized in 2016 and collects approximately $40 million annually.
At the end of 2018, the company said the rider account had a surplus balance of approximately $5.3
million. A recently completed forecast conducted by the utility found that, absent an adjustment, the
balance will increase to approximately $11.6 million at the end of 2019.
The Commission is accepting written comments on the proposal through April 9. Go here to submit a
comment. Or go to the Commission’s web site, www.puc.idaho.gov and click on “Case Comment Form”
under the “Electric” heading. Please include the case number, IPC-E-19-06.
Comments can also be mailed to P.O. Box 83729, Boise, ID 83720-0074 or faxed to [phone].
All documents filed in this case can be viewed here. Or go to the Commission’s web site,
www.puc.idaho.gov, click on “Open Cases” under the “Electric” heading and scroll down to case number
IPC-E-19-06.