20021107_308.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
BILL EASTLAKE
LYNN ANDERSON
DON HOWELL
RANDY LOBB
DAVE SCHUNKE
BEV BARKER
TONY A CLARK
GENE FADNESS
WORKING FILE
SCOTT WOODBURY
OCTOBER 30, 2002
CASE NO. PAC-02-7 (PacifiCorp)
IDAHO COMPACT FLUORESCENT LIGHT BULB PROGRAM
REQUEST FOR APPROVAL OF TARIFF AND DEFERRED
ACCOUNTING TREATMENT
On October 18, 2002, PacifiCorp dba Utah Power & Light Company (PacifiCorp;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
requesting approval of a proposed new tariff Schedule 20, Residential Energy Efficiency
Program-Compact Fluorescent Light (CFL) Bulb Program.
The proposed CFL program would provide two CFLs, at no direct cost, to the
approximately 000 residential customers in Idaho. The bulbs would be mailed directly to
customers in packages that include the bulbs, information on the benefits of CFLs and advice
on the most energy efficient use of the bulbs. All bulbs carry a two-year warranty through
Energy Technology Laboratories (ETL), are Energy Star certified and carry the Energy Star
label. Energy Star is a certification process sponsored by the US Department of Energ~.
Products meeting Energy Star requirements are built beyond energy efficiency c des and
standards.
DECISION MEMORANDUM
PacifiCorp contends that customers will benefit from the proposed program by
experiencing the positive qualities of CFLs, including reduced energy usage and extended
bulb lives. PacifiCorp is hopeful that the program will trigger customer interest in energy
efficient products and appliances.
PacifiCorp contends that its proposed CFL program is consistent with its
Integrated Resource Plan as reflected in the Company s RAMPP 6 report and is one of several
measures planned to help the Company achieve its demand side management (DSM) target
for fiscal year 2003. The Company maintains that similar CFL programs have been
successfully offered to residential customers in Oregon, Utah and Washington. Program
savings in those states have out performed initial estimates.
PacifiCorp estimates that the proposed CFL program will save 5 720 000 kilowatt
hours annually-50% of which will occur during peak load periods. PacifiCorp intends to
complete distribution of the bulbs by January 1 , 2003. PacifiCorp estimates that the program
will cost $456 000 including the costs of the CFLs, shipping and handling, and customer
education.PacifiCorp proposes to defer the costs of this program until a future rate
proceeding.
Deferred accounting treatment is requested including accrued carrying charges at a
rate equal to the weighted average cost of capital recommended by Commission Staff in its
most recent audit of PacifiCorp s results of operations.This treatment, the Company
contends, is an appropriate, just and reasonable means of providing the Company an
opportunity to seek recovery of its DSM program costs. PacifiCorp is not requesting a
determination of ratemaking treatment of the program costs and related carrying charges at
this time. Such a determination, it states, will be made in a future rate proceeding.
In accordance with Idaho Code ~ 61-307, the Company contends that copies of its
Application are available for public inspection at the Company s offices in Rexburg, Preston
Shelley and Montpelier, Idaho. PacifiCorp requests that its Application be processed under
Modified Procedure and requests that the tariff be approved for effective date of
November 2002.
Commission Decision
Staff recommends that the Company s Application be processed pursuant to
Modified Procedure (i., by written submission rather than by hearing) and that the proposed
DECISION MEMORANDUM
Reference IDAPA 31.01.01.202.02.
effective date (Nov 19) be suspended to allow for a standard 21-day comment period.
mended procedure and acquiesces.
procedure?
Vld/M:PACEO207 _
DECISION MEMORANDUM
The Company has been apprised of Staffs recom-
Does the Commission agree with Staff s proposed
Scott Woodbury