20220712Energy Efficiency Annual Report 2021.pdf

2021
ANNUAL REPORT
2021 ANNUAL REPORT
INDEX
TABLE OF CONTENTS
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
COST-EFFECTIVENESS TESTING METHOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
RESIDENTIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
RESIDENTIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
RESIDENTIAL REBATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
WHOLE HOME INCENTIVE (RETIRED)
LESSONS – WHOLE HOME
WHOLE HOME TIER I INCENTIVE (NEW)
WHOLE HOME TIER II INCENTIVE (NEW)
LESSONS – WHOLE HOME TIER I & II
FURNACE INCENTIVES
LESSONS – FURNACE
COMBI RADIANT HEAT SYSTEM INCENTIVE (RETIRED)
LESSONS – COMBI RADIANT HEAT SYSTEM
BOILER – 95% AFUE INCENTIVE (NEW)
LESSONS – BOILER
COMBINATION BOILER – 95% AFUE INCENTIVE (NEW)
LESSONS – COMBINATION BOILER
FIREPLACE INCENTIVE (RETIRED)
LESSONS – FIREPLACE
SMART THERMOSTAT INCENTIVES (NEW)
LESSONS – SMART THERMOSTAT
WATER HEATER INCENTIVE (RETIRED)
STORAGE WATER HEATER INCENTIVE (UPDATED)
LESSONS LEARNED – WATER HEATER
TANKLESS WATER HEATER INCENTIVE (RETIRED)
TANKLESS WATER HEATER TIER I INCENTIVE (UPDATED)
TANKLESS WATER HEATER TIER II INCENTIVE (NEW)
LESSONS – TANKLESS WATER HEATER
LESSONS – RESIDENTIAL PROGRAM
ADDITIONAL INTERNAL ANALYSIS
RESIDENTIAL PROGRAM OUTREACH, AWARENESS AND EDUCATION . . . . . . . . . . . . . . . . . . . .13
ENERGY EFFICIENCY TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
CUSTOMERS & COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
CONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
HOME BUILDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
COMMERCIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
COMMERICAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
REBATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
CONDENSING UNIT HEATER INCENTIVE
BOILER RESET CONTROL INCENTIVE
HIGH EFFICIENCY CONDENSING BOILER INCENTIVE
FRYER – ENERGY STAR CERTIFIED INCENTIVE
STEAMER – ENERGY STAR CERTIFIED INCENTIVE
GRIDDLE – ENERGY STAR CERTIFIED INCENTIVE
LESSONS – COMMERCIAL PROGRAM
COMMERCIAL PROGRAM OUTREACH, AWARENESS AND EDUCATION . . . . . . . . . . . . . . . . . . .22
ENERGY EFFICIENCY STAKEHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
AVOIDED COST SUBCOMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
ENERGY EFFICIENCY STAKEHOLDER COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
SECURING AN ENERGY EFFICIENT FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
ENERGY EFFICIENCY: NEXT STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
2021 ANNUAL REPORT
LIST OF TABLES
TABLE 1 . RESIDENTIAL 2021 RIDER BALANCE . . . . . . . . . . . . . . . . . . . . .6
TABLE 2 . RESIDENTIAL 2021 UCT RESULTS . . . . . . . . . . . . . . . . . . . . . . . .7
TABLE 3 . THERMAL SAVINGS ESTIMATED PER 80%
AFUE REPLACEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
TABLE 4 . GAS USAGE PER SQUARE FOOT BY HERS INDEX . . . . . . . . . .13
TABLE 5 . COMMERCIAL 2021 RIDER BALANCE . . . . . . . . . . . . . . . . . . . .20
TABLE 6 . COMMERCIAL 2021 UCT RESULTS . . . . . . . . . . . . . . . . . . . . . .21
LIST OF FIGURES
FIGURE 1 . EKOTROPE RATER SAMPLE WHOLE HOME REBATE . . . . . . .8
FIGURE 2 . SEE ACTION ENERGY EFFICIENCY PROGRAM IMPACT
EVALUATION GUIDE, EM&V . . . . . . . . . . . . . . . . . . . . . . . . . . .12
FIGURE 3 . SPREAD THE WORD EMPLOYEE ENGAGEMENT . . . . . . . . .14
FIGURE 4 . ENERGY EFFICIENCY SOCIAL MEDIA POST . . . . . . . . . . . . . .14
FIGURE 5 . ENERGY EFFICIENCY SOCIAL MEDIA POSTS . . . . . . . . . . . .14
FIGURE 6 . VRT BUS ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
FIGURE 7 . FALL SMOKER SWEEPSTAKES . . . . . . . . . . . . . . . . . . . . . . . . .15
FIGURE 8 . RESIDENTIAL CUSTOMER EMAIL . . . . . . . . . . . . . . . . . . . . . .16
FIGURE 9 . OUT WITH THE OLD, IN WITH THE NEW POSTCARD . . . . .16
FIGURE 10 . LAST CALL! DEADLINE NOTIFICATION . . . . . . . . . . . . . . . .17
FIGURE 11 . PARADE OF HOMES AD . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
FIGURE 12 . BCA BUILDER SHOWCASE EVENT . . . . . . . . . . . . . . . . . . . .18
FIGURE 13 . GOLF HOLE SPONSORSHIP . . . . . . . . . . . . . . . . . . . . . . . . . .19
FIGURE 14 . IBCA SPONSOR INFO BOOTH . . . . . . . . . . . . . . . . . . . . . . . .19
FIGURE 15 . WHOLE HOME “MENU” PROMOTIONAL FLYER . . . . . . . . .19
FIGURE 16 . COMMERCIAL PROGRAM BROCHURE . . . . . . . . . . . . . . . .22
FIGURE 17 . COMMERCIAL ESK BILL “ONSERT” . . . . . . . . . . . . . . . . . . . .22
FIGURE 18 . COMMERCIAL CUSTOMER EMAIL . . . . . . . . . . . . . . . . . . . .23
FIGURE 19 . COMMERCIAL PROGRAM MAGAZINE AD . . . . . . . . . . . . . .23
FIGURE 20 . GAS HEAT PUMP GUIDE . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
1 EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
If there was a theme for 2021, it was “out with the
old, in with the new!” In 2021, Intermountain Gas
Company (Intermountain, Company) retired under-
performing rebates, updated existing rebates, and
added new energy efficiency rebates for residential
customers and home builders . The Company also
launched the first-ever commercial energy efficiency
program for commercial customers, creating the
Energy Efficiency Portfolio (EE Portfolio) consisting
of a Residential Program and a Commercial Energy
Efficiency Program . The Energy Efficiency Stakeholder
Committee (EESC) was instrumental in both the
Residential Program revisions and designing the
Commercial Program offering . In addition to input from
the EESC, residential rebate revisions were also based on
recommendations from 3rd party Program evaluators,
ADM & Associates, who conducted a formal evaluation
in 2020 . The Commercial Program design was based
on the Conservation Potential Assessment (CPA) .
The Company managed two Residential Programs in
2021: closing out rebates retired from the “old Program,”
as it was affectionately called, and simultaneously
launching the new residential rebates and Commercial
Program . Residential Program appliance rebates were
officially retired March 31, and applications were
accepted through June 30 to allow customers ample time
to submit final applications . Due to COVID impacts on
home building, and supply chain issues causing longer
home completion times, Whole Home new construction
rebates were accepted through December 31, 2021 .
The new residential rebates and the commercial
rebates went into effect April 1, 2021, no joke .
Customer participation in the Residential Program
continued to grow in 2021 . Taking into consideration
all rebate payments in 2021, (retired Program rebates
and new Program combined), the Company paid a total
of 5,553 rebates to customers, a 22% increase over the
previous year . Of the 5,553 rebates, the high-efficiency
furnace and the new construction residential rebates
were once again the two most redeemed rebates,
followed by smart thermostats, tankless water heaters
and storage water heater rebates . The furnace rebate
redemption rate was down slightly compared to 2020
levels, while new construction rebates increased by
27% over 2020 . Since the storage water heater and
tankless water heaters had cost-effectiveness ratios
greater than 1 .0 in 2020, the Company increased
the rebate incentives for both measures in the April
Residential Program revision . Increased incentives
increased participation: storage water heater rebates
increased by 167%, while tankless water heater rebates
increased by 27% . During the nine months of existence
for the new rebates added to the Program, there were
596 smart thermostat rebates redeemed, followed
by 4 Tier II tankless water heaters (a second tankless
water heater option that was added to the Program),
3 combination boiler rebates and 3 boiler rebates .
At the Program level, the Residential Program was
cost-effective with a Utility Cost Test (UCT) ratio of 1 .5 .
There were no 70% Fireplace rebates paid, and the
combi radiant heat system was not cost-effective with
a UCT of 0 .7 . Low or no uptake of these measures,
confusion surrounding the proper application of the
combi radiant heat system, and lack of cost-effectiveness,
contributed to the retirement of these measures .
Based on nine-months of data, the new Program
rebates were all cost-effective with UCT ratios of 1 .0 or
greater, except for the storage water heater . This was
the only rebate with a UCT less than 1 .0, at 0 .9 . There
were no Whole Home Tier I rebates paid in 2021 .
The Commercial Program was launched April 1, 2021 .
To date, this Program remains in an awareness building
stage . The offering was designed to be a modest
first step in encouraging commercial customers to
pursue energy savings measures . The Commercial
Program offers three space heating rebates and
three commercial kitchen equipment rebates . With
4 rebates paid, the condensing boiler rebate was the
only space heating rebate redeemed out of the three
rebates offered . In the commercial kitchen equipment
category consisting of fryer, steamer and griddle
rebates, there were 4 fryer and 2 steamer rebates paid .
There were no rebates paid for commercial griddles .
Due to the newness of the Program, the Commercial
Program did not meet the cost-effectiveness threshold
of 1 .0 or greater with a UCT of 0 .4 . The high-efficiency
condensing boiler was the most cost-effective with
a UCT of 0 .8, followed by the commercial steamer
and fryer at 0 .5 and 0 .3, respectively . The Company
also conducted a pilot program offering commercial
customers a complementary energy saving kit (ESK)
containing water saving devices to reduce energy
consumed for water heating . ESKs were available
2021 ANNUAL REPORT 2
starting in October 2021 . Initial uptake of ESKs has been
slow as the Company builds awareness of the Program
with commercial customers . Too few kits have been
redeemed to be able to evaluate cost-effectiveness
of this pilot program . The ESKs will continue to be
offered until the 350 offered under the pilot have been
distributed or the Company reevaluates the offering .
The theme of “old and new” also applied to outreach and
education activities . The Company continued to promote
energy saving opportunities to traditional audiences:
customers, contractors, builders, and the community
at large, with the addition of commercial customers .
“Old” outreach methods such as customer bill inserts
and outdoor events like golf hole sponsorships at golf
tournaments remained effective and safe outreach
activities, while the on-going pandemic continued to
limit other indoor, in-person promotional opportunities .
Committed to keeping employees and our communities
safe, the Company adapted outreach activities to
operate within the bounds of safety protocols and tried
new outreach methods such as placing advertisements
on public buses and in construction trade magazines .
The Company also ran a coordinated fall campaign
using email, social media, Company website, and bill
inserts to promote the launch of a savings calculator
designed to help customers estimate potential
savings when installing high-efficient equipment .
To launch the Commercial Program, commercial
customers received the commercial program brochure
as a bill insert in July . In the spirit of “new,” the Company
tried new approaches to outreach: onserts and email .
During the month of October, commercial customers
received a bill onsert, which is a section of the bill
utilized to promote the energy saving kit . Commercial
customers also received an email promoting both
the new Program and ESKs . The Company sought out
promotional opportunities and events with industry
groups related to architecture, commercial HVAC, and
commercial kitchen suppliers . A webpage dedicated
to the Commercial Program was added to the energy
efficiency website, which included a commercial food
service equipment calculator for estimating energy
cost and consumption savings based on upgrades
to high-efficiency equipment . The commercial
calculator is a tool developed and provided by Gas
Technology Institute (GTI), the leading gas industry
research, development, and training organization
of which Intermountain is a long-term member .
The EESC continues to play an integral role in the
evolution of the EE Portfolio . EESC meetings provide
3
the Company an opportunity to report on Program
performance and seek stakeholder input and feedback
regarding energy efficiency . The EESC met in June and
November of 2021 . The June meeting focused on the
implementation of changes to the residential program,
as well as a preview of the 2020 annual report results .
The Company also provided a brief update on the
launch of the Commercial Program, energy efficiency
activities related to gas heat pump technologies, and
participation in the North American Gas Heat Pump
Collaborative (Collaborative) . In November, the EESC
met for a status update on the newly launched revised
residential offering and brand-new commercial offering .
Paul Glanville, Research and Development Director
for GTI, was the special guest speaker at this meeting .
Glanville provided a general overview of gas heat pump
technology, the exciting developments in cold-climate
gas heat pumps, and the role of heat pump technology
in decarbonization . He also explained how GTI is working
to identify and address potential market barriers to bring
gas heat pump technology to the residential market .
Intermountain remains committed to providing
energy efficient choices today as well as a clean,
energy efficient future . The American Gas Association
(AGA) report “Net-Zero Emissions Opportunities for
Gas Utilities,” points to “expanded energy efficiency
initiatives,” and “negative emissions technologies,” as
pathways to net-zero emissions by 2050 .1 As a utility,
Intermountain Gas Company, joined the Low-Carbon
Resources Initiative, a joint effort by the Electric Power
Research Institute (EPRI) and GTI to “address the need
to accelerate development and demonstration of low-
and-zero carbon energy technologies required for
deep decarbonization .”2 As part of this utility-wide, and
industry-wide, effort to provide a clean, energy efficient
future, the energy efficiency program participates in
organizations working to accelerate commercialization
of gas heat pump technologies . Intermountain is a
long-time member of GTI, and the energy efficiency
team specifically participates in the Emerging
Technology Program (ETP) at GTI, a member driven
committee working to accelerate market introduction
and acceptance of innovative technologies to feed
utility energy efficiency programs .” The EE Program
is also a charter member of two new collaborations
working specifically on new gas heat pump technology:
the Gas Heat Pump Consortium (Consortium),
facilitated by the Energy Solutions Center (ESC), and
the North American Gas Heat Pump Collaborative .
The Company continues to evaluate Portfolio
performance and effectiveness through a cycle of
planning, implementation, and evaluation . After
implementing a significant revision to the Residential
Program and launching a new Commercial Program,
the Company will continuously monitor Program
performance during the implementation stage . The
Company will explore the feasibility of implementing
commercial custom projects to secure cost-effective
therm savings in addition to the current prescriptive
offering . In the fall of 2022, the Company plans to
post a Request for Proposal (RFP) for a CPA study, to
update estimated therm savings and explore additional
energy saving opportunities for residential and
commercial customers alike . Continued participation
in the Consortium and Collaborative will allow the
Company to leverage the cooperative effort to raise
awareness about gas heat pumps . As gas heat pump
technology nears commercialization, the Company
plans to provide information about the technology,
explore training opportunities for contractors,
and investigate opportunities and partnerships to
conduct gas heat pump demonstration sites for
both residential and commercial applications .
Customer enthusiasm for energy efficient solutions,
an engaged stakeholder group and a dedicated team
focused on energy efficiency for today and tomorrow,
keep the energy efficiency Programs moving forward
and evolving to meet the energy and money saving
needs of Intermountain Gas Company customers . This
report details 2021 EE Portfolio performance, cost-
effectiveness, lessons learned, and early indications
based on 9 months of performance of the newly
implemented residential changes and newly launched
Commercial Program . Process improvements, outreach
and promotional activities are also presented in the
report, in addition to an explanation of Program
activities designed to promote gas heat pump
technologies and the future of the EE Portfolio .
1 America’s Natural Gas Industry Will Be Essential to Achieve a Net-Zero Emissions Future | American Gas Association (aga .org)
2 LCRI Research Vision (epri .com)
EXECUTIVE SUMMARY
2021 ANNUAL REPORT 4
INTRODUCTION
Intermountain Gas Company, as subsidiary of MDU
Resources Group, is a natural gas local distribution
company that has been serving customers since
1955 . At the end of 2021, Intermountain served
approximately 399,000 customers in 76 communities
across Southern Idaho .
In addition to reliably providing affordable and safe
natural gas for home space and water heating, 2021
marked the fourth year of delivering money and energy
saving opportunities through the energy efficiency
program at Intermountain . The Program’s mission to
secure cost-effective therm savings provides a two-fold
benefit to customers . Individual customers benefit by
reducing energy use and realizing long term savings
through lower monthly bills by installing high-efficiency
equipment . All customers benefit from the efficient
use of natural gas by maximizing today’s assets and
delaying the need for expensive system upgrades . For
the first time, in 2021, Intermountain also began offering
energy saving opportunities for commercial customers;
launching a commercial energy efficiency program .
The Residential Program was approved by the Idaho
Public Utilities Commission (Commission) and went into
effect on October 1, 2017 . All customers receiving natural
gas through the Company’s residential rate schedule
were eligible to participate in the Program . The Program
offers rebates for natural gas equipment meeting specific
high-efficiency requirements and can be applied to
replacement equipment, conversions from other fuel
sources, and new construction . The Residential Program
also offers rebates for the construction of residential
homes that meet specific energy efficiency performance
targets . The Commercial Program was approved by the
Commission on March 8, 2021 and went into effect April
1 of the same year .
COST-EFFECTIVENESS TESTING METHODOLOGY
Intermountain’s objective is for all rebates to have
benefit/cost ratios equal to, or greater than, 1 .0 when
measured by the Utility Cost Test . The UCT measures
cost-effectiveness from the utility company’s perspective
and takes into consideration avoided supply costs,
program administration costs, and incentives paid by
the utility . Rebates undergo cost tests at several stages:
preliminary design, implementation, annual review, and
during Evaluation, Measurement and Verification (EM&V) .
The cost-effectiveness of rebates is also evaluated based
on the customer’s perspective using avoided supply
costs, program administration costs, and net participant
costs in a test commonly referred to as the Total
Resource Cost Test (TRC .) The TRC is not the primary cost
test used for decisions regarding the inclusion of rebate
offerings . In calculating the UCT and TRC, Intermountain
relies on the calculations outlined in the California
Standard Practice Manual and the National Action
Plan for Energy Efficiency’s (NAPEE), Understanding
Cost-effectiveness of Energy Efficiency Programs: Best
Practices, Technical methods, and Emerging Issues for
Policy-Makers .
The energy efficiency team managed both the
Residential and Commercial Programs using one pool
of administrative costs totaling $726,622 . To conduct
cost-effectiveness testing for the respective programs,
the Company assigned administration costs to each
program through a two-step process . The Company first
identified and assigned direct expenses to the respective
programs . For example, the Company purchased a
mailing list of residential home builders in the Company’s
service territory . This expense was deducted from
total administrative expenses and applied solely to the
Residential Program administration expenses . Residential
direct expenses totaled $44,253 . In the same way,
expenses for the commercial energy savings kits totaling
$349 were directly charged to the Commercial Program .
After assigning direct expenses to the appropriate
programs, the remaining pool of administrative expenses
was allocated between the two programs, 80% to
the Residential Program and 20% to the Commercial
Program . A total of $545,888 was allocated to the
Residential Program, and $136,472 to the Commercial
5
Program . Program administration expenses used for
cost-effectiveness testing consisted of the sum of direct
expenses and the respective percentage of administrative
expenses, or $590,141 for the Residential Program and
$136,481 for the Commercial Program .
Program outreach and education activities for both the
Residential and Commercial energy efficiency programs
are contained in this report . Together, the Residential
Program and the Commercial Program make up the
energy efficiency Portfolio . Any Program level discussion
or reporting will specify Residential or Commercial
Program . For simplicity, Program reporting is separated
into two distinct sections which will cover program
funding, program cost-effectiveness, individual measure
cost-effectiveness, lessons learned as well as program
outreach, awareness, and education .
INTRODUCTION
2021 ANNUAL REPORT 6
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
The residential energy efficiency program (Residential
Program) is funded by the Energy Efficiency Charge
(EEC-RS) rider, a monthly per therm charge to residential
customers . In 2021, the Company did not seek a change
to the $0 .02093 EEC-RS approved by the Commission
in Order No . 34454 . The Residential Program began
2021 with an overfunded balance of $1,318,197 . Despite
once again paying out the highest annual total rebate
payout in Residential Program history in 2021, a total of
$3,287,716, Residential Program growth simply did not
keep pace with EEC-RS collections . The EEC-RS ended
the year with an over-collected balance of $2,834,164
as shown in Table 1 . There are several potential factors
contributing to higher than expected revenues: slower
than expected uptake in new Residential Program
offerings due to a learning curve for the updated new
construction rebates, and global supply chain issues
impacting building supplies and appliance inventories .
The Company will continue to monitor fluctuations
in the rider balance and carefully consider any
adjustments to keep rates as stable as possible and
avoid excessive over or under collections balances .
In this section, 2021 performance, cost-
effectiveness, and lessons learned will be covered
for each rebate . Program outreach and promotional
activities by target audience are also included .
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
Cost-effectiveness testing was conducted on all
rebates paid in 2021 . This included rebates that
were either retired or revised, which were only in
effect January through March 31, and the updated
or new rebate offerings added to the Residential
Program, effective beginning April 1, 2021 .
The Residential Program, as an entire portfolio,
shown in Table 2, was cost-effective based on
the UCT analysis with a benefit-to-cost ratio of
1 .5 . The TRC benefit-to-cost ratio was 0 .6 .
Table 1.Residential 2020 Rider Balance
INTERMOUNTIAN GAS COMPANY
Residential Energy Efficiency Program
2021 Rider Balance
Revenue $ 5,393,824
Program Expenses
Residential Rebates $ 3,287,716
Labor 511,077
Program Delivery 59,464
Market Transformation 19,600
Total Program Expenses $ 3,877,857
2021 Rider Deferral
Over/(Under) Collection $ 1,515,967
Prior Year Rider Balance
Over/(Under) Collection $ 1,318,197
Rider Account Balance
Over/(Under) Collection $ 2,834,164
7 RESIDENTIAL ENERGY EFFICIENCY PROGRAM
RESIDENTIAL REBATES
WHOLE HOME INCENTIVE (RETIRED)
The Whole Home incentive provided residential
customers a $1,200 rebate for new construction homes
that were Energy Star Certified and achieved a Home
Energy Rating System (HERS) Score of 75, or lower . There
were 1,685 rebates issued during the 2021 Program
year . This is a 10% increase over the previous Program
year . This offering was retired effective April 1, 2021, in
accordance with Order No . 34980 . It was updated with a
two-tiered incentive, Whole Home I and Whole Home II .
The Whole Home incentive was cost-effective under the
UCT with a cost-effectiveness ratio of 1 .6 . The incentive
was also cost-effective under the TRC with a ratio of 1 .0 .
LESSONS – WHOLE HOME
Intermountain originally intended to sunset this incentive
as of September 30, 2021; however, builders and home
energy raters stated supply chain issues were impacting
the completion of their builds . Due to this development,
Intermountain extended the deadline through December
31, 2021 for this incentive, if the construction permit
for the home was issued prior to April 1, 2021 . Homes
that had a permit issued on and after April 1, 2021, were
measured against the updated Whole Home incentive
targets . Multiple communications were sent to builders
to notify them of the updated deadline .
WHOLE HOME TIER I INCENTIVE (NEW)
The Whole Home Tier I incentive provided residential
customers a $900 rebate for new construction homes
that met the following criteria:
• HERS rated
• Air sealing at or below 3 ACH at 50 Pa
• Ceiling insulation at or above R-49
• Ducts and air handler located inside conditioned
space or duct leakage to outside of less than
4 CFM25/100 ft2 CFA
• Furnace efficiency at or above 97% AFUE
The updated Whole Home incentives no longer require
Energy Star Certification for incentive eligibility . While
homes are still required to be HERS rated, there is no
longer a HERS threshold requirement . Builders are also
able to “stack-on” their savings by combining incentives
for qualifying smart thermostats and water heaters with
the Whole Home rebate . This change was suggested by
INTERMOUNTIAN GAS COMPANY
Residential Energy Efficiency Program2021 UCT Results
Residential Program
Rebate Therm Savings Annual Therm Savings UCT Benefits UCT Costs UCT Ratio
Whole Home 274 461,690 $ 3,619,083 $ 2,194,169 1 .6
Combi Radiant Heat System 113 339 $ 2,382 $ 3,307 0 .7
70% Fireplace 10 - $- $--
.67 EF Water Heater 38 152 $ 751 $ 609 1 .2
Tankless Water Heater 65 8,710 $ 68,276 $ 33,792 2 .0
Whole Home I 161 - $- $ --
Whole Home II 128 33,664 $ 263,884 $ 233,723 1 .1
Furnace 87 235,248 $ 1,599,739 $ 1,222,688 1 .3
Combi boiler 155 465 $ 3,367 $ 2,707 1 .2
Boiler 159 477 $ 3,739 $ 2,707 1 .4
Water Heater 38 456 $ 2,253 $ 2,606 0 .9
Tankless I 65 9,230 $ 72,352 $ 60,659 1 .2
Tankless II 58 232 $ 1,819 $ 1,609 1 .1
Smart Thermostat 44 26,224 $ 113,436 $ 119,284 1 .0
776,887 $ 5,751,082 $ 3,877,857 1.5
Table 2. Residential UCT Results 2021
2021 ANNUAL REPORT 8
the EESC and is a program improvement that was not
offered under the previous iteration of the Program .
The Company received 0 qualifying applications for this
incentive during the 2021 Program Year .
WHOLE HOME TIER II INCENTIVE (NEW)
The Whole Home Tier II incentive provided residential
customers a $700 rebate for new construction homes
that met the following criteria:
• HERS rated
• Air sealing at or below 4 ACH at 50 Pa
• Ducts and air handler located inside conditioned
space or duct leakage to outside of less than
4 CFM25/100 ft2 CFA
• Furnace efficiency at or above 95% AFUE
The updated Whole Home incentives no longer require
Energy Star Certification for incentive eligibility . While
homes are still required to be HERS rated, there is no
longer a HERS threshold requirement . Builders are
also able to “stack-on” rebates for qualifying smart
thermostats and water heaters, which was not offered
under the previous Program . There were 263 rebates
paid for this incentive, the majority of those occurring in
fourth quarter, 2021 .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .1 . The TRC ratio was 0 .4 .
LESSONS – WHOLE HOME TIER I & II
The requirements for this incentive are stretch goals
above building code requirements and may present
a significant learning curve for builders . Idaho Code
requirement for air changes per hour (ACH) was reduced
from 7 to 5 in 2021 . Intermountain’s Program requires
an additional reduction to 3 and 4 ACH respectively
for Whole Home I & II, to qualify for the rebate . The
additional ceiling insulation requirement and supply
chain issues affecting the availability of the higher
efficiency furnaces may be causing additional barriers
to participation .
In addition to an increased learning curve to meet
lower ACH targets, supply chain issues due to COVID-
19 also impacted Whole Home rebates by causing
longer turnaround times for new construction . Build
times increased from five months to eight months, and
sometimes even a year, for completion . There may be
continued slowdown in Whole Home rebates if supply
chain issues persist .
Home energy raters use an energy rating software
to evaluate and verify home energy performance .
Ekotrope is a home energy rating software provider that
offers a service, called Ekotrope Rater, which allows a
rebate incentive, such as Whole Home I & II, to appear
in the modeling software . This is similar to how one
might see a model for LEED certification or Net Zero
building requirements . Intermountain contracted with
Ekotrope to integrate the updated Whole Home rebate
requirements into the home rating software for energy
raters in the Company’s service territory . Raters now see
the Intermountain Gas rebate incentive in the modeling
software . It also allows energy raters to use Ekotrope’s
platform to submit applications directly to the Company .
The platform has quality assurance and quality control
checks in place to ensure that non-qualifying homes
cannot be submitted, as well as displaying the qualifying
rebates in real-time . The ability to submit through
Ekotrope is available to all raters, regardless of the rating
software they use, by creating a free Ekotrope account .
Implementing Ekotrope Rater brings the Intermountain
incentive to the forefront for home energy raters, as
they will see the incentive as a “model” in their rating
software along with the incentive amount (see Figure
1) . The software also creates alerts for the home energy
rater when a requirement is not met and requires further
attention . The ability for raters to submit applications
directly to Intermountain eliminates the administrative
Figure 1. Ekotrope Rater Sample Whole Home Rebate
9
burden of filling out a separate rebate application for
builders, simplifying the process to participate in the
Residential Program .
Due to the new above code requirements of the
incentive, builders often do not realize until the end of
the build process, when the required changes would
be too costly to pursue, that they do not qualify for
the Whole Home rebate . For this reason, builders and
raters alike have requested that the Ekotrope platform
be revised to allow builders to submit rebates on all
qualifying equipment, when they do not meet the Whole
Home criteria . Based on this feedback, Intermountain is
pursuing software changes to accommodate appliance
rebate submissions when Whole Home requirements
are not met, simplifying the application process in
these instances as well . Builders can still earn rebates
for qualifying appliances, while they continue to work
towards meeting the next level energy efficiency targets
required for the Whole Home incentives .
FURNACE INCENTIVE
The furnace incentive provides residential customers a
$350 rebate for the installation of a high-efficient natural
gas furnace with a minimum efficiency rating of 95%
AFUE . A total of 2,704 furnace rebates were issued by
the Company, down slightly from the 2,744 rebates the
previous year .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .3 . The incentive was not
cost-effective under TRC analysis, with a benefit-to-cost
ratio of 0 .4 .
LESSONS – FURNACE
Overall, furnace rebates accounted for 49% of the total
number of rebates issued . New construction homes
accounted for 35% of all furnace rebates, down from 39%
the previous year . The decrease probably reflects the
impact that supply chain issues had on builders .
COMBI RADIANT HEAT SYSTEM INCENTIVE (RETIRED)
The Combi Radiant Heat System provided residential
customers a $1,000 rebate for the installation of a 90%
or greater efficiency condensing tankless combo system
used for space and water heat . There were 3 rebates
paid in the final year of this offering . This incentive was
retired effective April 1, 2021, in accordance with Order
No . 34980 .
The incentive was not cost-effective in its final year under
the UCT analysis, with a benefit-to-cost ratio of 0 .7 . It
was also not cost-effective under the TRC analysis, with a
benefit-to-cost ratio of 0 .2 .
LESSONS – COMBI RADIANT HEAT SYSTEM
From its inception, this incentive was complicated .
Customers and contractors alike either did not
understand what equipment qualified for the rebate,
or they assumed this was a custom incentive offering .
To aid in reducing this confusion the Company updated
Residential Program terms and conditions to require
pre-qualification prior to installation . This change took
effect on February 1, 2021 . Pre-qualification messaging
was also added to the Company website . The Company
did not deny applications without pre-qualification if the
equipment met minimum requirements .
BOILER – 95% AFUE INCENTIVE (NEW)
The Boiler incentive provides customers an $800 rebate
for the installation of a 95% AFUE or greater efficiency
boiler . There were 3 incentives issued in 2021 .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .4 . The incentive was also
cost-effective under the TRC analysis, with a benefit-to-
cost ratio of 1 .0
LESSONS – BOILER
The Boiler incentive was added to the offering based
on customer and contractor feedback . Because a
combination boiler cannot be installed in certain
retrofit situations, the Company added this offering to
complement the addition of the combination boiler .
COMBINATION BOILER – 95% AFUE INCENTIVE (NEW)
The Combination Boiler incentive provides customers
an $800 incentive for the installation of a 95% AFUE or
greater efficiency combination boiler (combi-boiler .)
There were 3 incentives issued in 2021 .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .2 . The incentive was not
cost-effective under the TRC analysis, with a benefit-to-
cost ratio of 0 .3 .
LESSONS – COMBINATION BOILER
This incentive replaced the Combi Radiant Heat System
incentive . This offering is more specific than the previous
combi radiant heat system rebate and clarifies the
combination boiler as a specific piece of equipment
used for both space and water heating, with a minimum
efficiency requirement and a standardized efficiency
rating .
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 10
FIREPLACE INCENTIVE (RETIRED)
The fireplace incentive provided residential customers
a $100 rebate for the installation of a high-efficient
fireplace insert with a minimum efficiency of 70% FE . This
incentive received no qualifying applications for the 2021
Program year . It was retired effective April 1, 2021, in
accordance with Order No . 34980 .
LESSONS – FIREPLACE
While some customers may use a fireplace insert as a
substitute heat source, fireplace inserts are designed
to be a decorative feature and are not typically rated
for energy efficiency . Although some inserts are rated,
there is no standard efficiency rating currently applied
to all fireplace inserts on the market . The CPA found
the estimated annual savings to be lower than previous
estimates . This reduction in savings resulted in a minimal
incentive for fireplace inserts . The above factors, coupled
with historically low participation, led the Company to
retirement this ineffective incentive .
SMART THERMOSTAT INCENTIVE (NEW)
The smart thermostat incentive provided residential
customers a rebate of up to $100 for the installation of a
Wi-Fi enabled and Energy Star Certified smart thermostat .
There were 596 rebates issued during 2021 .
The incentive was cost-effective under the UCT, with a
benefit-to-cost ratio of 1 .0 . It was not cost-effective under
the TRC analysis, with a benefit-to-cost ratio of 0 .6 .
LESSONS – SMART THERMOSTAT
In late 2021, a qualifying thermostat that retails for less
than $100 entered the market . The Company updated
the Residential Program Terms & Conditions to state
rebate amounts would not exceed the price paid for the
equipment and installation .
WATER HEATER INCENTIVE (RETIRED)
The storage water heater incentive provided residential
customers a $50 rebate for the installation of a storage
water heater with a minimum efficiency rating of 0 .67
EF . A total of 4 rebates were issued during 2021 . The
incentive received declining submissions year over year
from its inception in 2018, with 2021 being the lowest
redeemed year .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .2 . The incentive was not
cost-effective under the TRC analysis, with a benefit-to-
cost ratio of 0 .4 .
STORAGE WATER HEATER INCENTIVE (UPDATED)
Based on updated estimated therm savings from the
CPA, the Storage Water Heater incentive was increased
from $50 to $115 . In the 9 months of availability there
were 12 rebates issued, the most of any program year .
The revised Storage Water Heater was not cost-effective
under the UCT analysis, with a benefit-to-cost ratio of 0 .9 .
It was not cost-effective under the TRC analysis, with a
benefit-to-cost ratio of 0 .4 .
LESSONS – WATER HEATER
High Efficiency storage water heaters that require power
venting may present a potential barrier to participation
if the installation of an electrical outlet is also required .
A new high-efficiency storage water heater that does not
require power venting is now available on the market .
In just the limited time the revised rebate was available,
the rebate demonstrated improved performance .
It is anticipated the increased incentive and market
introduction of a storage water heater that does
not require power venting will continue to increase
participation . The Company will monitor future
performance and cost-effectiveness of this incentive .
TANKLESS WATER HEATER INCENTIVE (RETIRED)
The Tankless Water Heater incentive provided residential
customers a $150 rebate for the installation of a
condensing tankless water heater with a minimum
efficiency of 0 .91 EF . There were 134 rebates paid January
-April 2021 . This is a 41% decrease compared to 2020 .
The retired tankless water heater incentive was cost-
effective under the UCT analysis, with a benefit-to-cost
ratio of 2 .0 . It was not cost-effective under the TRC
analysis, with a benefit-to-cost ratio of 0 .3 .
TANKLESS WATER HEATER TIER I INCENTIVE (UPDATED)
Based on increased estimated annual therm savings
from the CPA, the tankless water heater incentive was
increased from $150 to $325 for the installation of a
tankless water heater with a minimum efficiency of 0 .91
UEF . There were 142 incentives paid from April through
December 2021 .
The updated Tankless Water Heater Tier I was cost-
effective under the UCT analysis, with a benefit-to-cost
ratio of 1 .2 . The incentive was not cost-effective under
the TRC analysis, with a benefit-to-cost ratio of 0 .3 .
11
TANKLESS WATER HEATER TIER II INCENTIVE
(NEW)
The Tankless Water Heater Tier II incentive provided
residential customers a $300 rebate for the installation
of a condensing tankless water heater with a minimum
efficiency rating of 0 .87 UEF, and a maximum efficiency
rating of 0 .90 UEF . Based on recommendations
from the EM&V and EESC, the Company offered an
additional tankless water heater rebate with a slightly
lower minimum efficiency requirement, and lower
corresponding rebate amount as well as a lower initial
purchase price . There were 4 rebates issued in 2021 .
The Tankless Water Heater Tier II incentive was cost-
effective under the UCT analysis, with a benefit-to-cost
ratio of 1 .1 . It was not cost-effective under the TRC
analysis, with a benefit-to-cost ratio of 0 .4 .
LESSONS – TANKLESS WATER HEATER
Tier I -The installation of tankless water heaters in new
construction is growing . New construction accounted
for 49% of all Tier I Tankless Water Heater rebates,
compared to 43% in 2020 . Builders and consumers
are choosing high-efficiency water heating options .
Installation of a tankless water heater is often easier in
new construction than in a retrofit situation .
Tier II – Although this rebate has been offered for a
limited time, initial uptake has been low . The difference
between the initial purchase price of a Tier I and a Tier II
tankless water heater may be inconsequential relative to
the higher-efficiency option with a higher incentive . The
Company will continue to monitor performance of this
rebate offering .
LESSONS – RESIDENTIAL PROGRAM
The online form was made available to all residential
customers when the Company’s website was updated on
April 1, 2021 . This led to a 125% increase in the number
of applications submitted via the online form, compared
to the previous year when the online form was only
available through the Contractor Portal . It was a very
popular way for customers to submit smart thermostat
applications . On average, there were 90 online
applications submitted via the online form per month,
compared to 50 applications per month on average the
prior year .
The application form went through a redesign that
went beyond updating the incentives offered on the
application . The Company simplified application options
to one single form, rather than offering two separate
application formats . The redesign of the application form
included adding data fields that were recommended by
EM&V evaluators . The addition of these fields will allow
the Company to identify equipment installation due to
replacement, or for new construction, as well as the
BTU input of the previous equipment for furnaces . New
data collection will also track whether the equipment
was operational at the time of replacement, and the
age of the equipment that was replaced . Initially, these
data fields were just added to the building information
section, but to provide a more robust picture of energy
savings for all equipment, these fields were added to
each incentive section as of September 2021 .
Once released into cyberspace, information tends to
persist beyond usefulness . Old, outdated versions of the
rebate application are no exception . Upon revising the
rebate application, the Company discovered customers
were directed to the outdated version of the form when
using a search engine to find the Intermountain Gas
Rebate Application . To lessen the chance applicants
could access an outdated form, the Company engaged
in search engine optimization (SEO) . SEO influences
search results . In this case, it placed the current rebate
application, the version that is available on the EE
website, in the top position of the results of a web
search . The Company will continue to work on identifying
contractors who have bookmarked old links or printed
the outdated applications to ensure they are using the
most up-to-date versions of the form .
ADDITIONAL INTERNAL ANALYSIS
In 2020, Intermountain commissioned a 3rd party to
conduct the first Program Evaluation, Measurement
and Verification . Figure 2 from the SEE Action Energy
Efficiency Program Impact Evaluation Guide, December
2012 (SEE Action Guide) illustrates the critical role
of EM&V in energy efficiency program planning and
improvement . As the SEE Action Guide notes, EM&V has
“three primary objectives: document the benefits of a
program, identify ways to improve current and future
programs, and support energy demand forecasting and
resource planning by understanding the historical and
future resource contributions of energy efficiency as
compared to other energy sources .” Evaluations are
often a means for applying retroactive energy savings
to a program to demonstrate prudent investment
of customer funds, but beyond the retroactive view,
evaluation plays an important role in improving
programs . Evaluation, according to the SEE Action
Guide, therefore, “both fosters more effective programs
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 12
and justifies increased levels of investment in energy
efficiency as a long-term, reliable energy source .”
EM&V studies performed by independent 3rd party
consultants are comprehensive and informative, but due
to significant investment of time and funds required,
it is not cost-effective to conduct such a study on an
annual basis for each measure . In between formal
evaluations, the Company conducted an in-depth EM&V
type analysis to gain important insights without a huge
cost to its customers . The primary focus of the study
was to investigate the difference between furnace
therm saving estimates from previous studies . The
study also contained analysis of Home Energy Rating
Score (HERS) data as well as database validation .
Intermountain attempted to investigate the estimated
therm savings difference between the CPA study and
the 2020 EM&V for the 95% AFUE furnace measure . The
CPA study estimated annual therm savings of 87 per
unit while the EM&V estimate suggested therm savings
as high as 134 . Given the popularity of the furnace
program, the difference between these numbers can
significantly impact program planning . Intermountain
analyzed the bills of 819 program participants and found
the average participant’s annual gas usage decreased
by approximately 81 .1 therms upon upgrading from
a baseline furnace of 80% AFUE to a 95% AFUE high-
efficient unit . These results shown in Table 3 lend
support to the estimate prescribed in the Company’s
original CPA . The EM&V annual therm saving estimate of
134 was based on newly constructed homes which may
explain why it is higher than analysis based on retrofit
units in generally older homes . These findings provide
context that will be useful as Intermountain commissions
a 3rd party CPA study to be conducted in 2023 .
Based the data available for the 2020 EM&V study,
evaluators recommended the Company collect additional
data from rebate applicants to construct a more robust
savings picture . After the study revealed that useful
information such as installation type and prior unit
efficiency were frequently being left blank on rebate
applications, Intermountain updated the wording and
layout of the forms in April of 2021 to make these fields
clearer to applicants . The update was a success and
improved the response rate on prior unit efficiency
from just 42% to now nearly 90% . This data will greatly
improve the reliability of future billing analyses .
RESNET provided the Company with HERS data for
virtually all the homes constructed since 2016 in the
Intermountain service territory, including both program
participants and non-participants . The EM&V study
analyzed these homes’ billing data and found an overall
strong and significant correlation between HERS Index
and home energy usage, as can be seen in the Table 4 .
The analysis found that in a typical newly constructed
home in Idaho, a HERS decrease of 10 points correlated
with a cumulative reduction of 1,418 therms over a
25-year forecast period . As of 2020, approximately
15% of newly constructed homes in Idaho received a
HERS score, over half of these homes participated in
Intermountain’s rebate program . As these numbers
continue to grow the Company will be able to expand
this analysis further to gain insights on the specific
building attributes that promote energy savings . For
now, it is promising to see that the HERS index provides
a comprehensive and reliable overview of the house’s
energy profile, and the Program will continue to require
a HERS certificate for the Whole Home incentive .
Figure 2. SEE Action Energy Efficiency Program Impact Evaluation Guide, EM&V.
Table 3. Therm Savings Estimated per 80% AFUE replacement
Therm Savings Per Furnace - 80% AFUE Baseline
Program Year Therm Savings
2017-2018 83 .3
2019 76 .6
2020 81 .0
2021 92 .9
Grand Total 81 .1
13
The database validation component of the internal
EM&V consisted of a series of checks to verify that
program tracking sheet data aligns with external sources
including CC&B and county assessor data . The program
tracking sheet records information from all rebate
applications including rebate type, serial numbers,
and house address . It is critical to ensure this data is
accurate as many of these items will be key variables
used in the development of the upcoming CPA study .
The internal EM&V review checked for consistencies
in address spelling, zip codes, and square footages .
Out of the more than 15,000 records contained in the
program tracking sheet, only 23 entries were found to
require correcting, mostly regarding square footage .
PROGRAM OUTREACH, AWARENESS AND EDUCATION – RESIDENTIAL
ENERGY EFFICIENCY TEAM
The theme of “old and new” also applied to Residential
Program outreach and awareness in combining
reliable outreach approaches with new efforts to
deepen engagement and collaboration . Intermountain
continued to build on the partnership between Energy
Efficiency and Energy Services Representatives (ESR)
to raise energy efficiency awareness throughout the
service territory . The Company relied on traditional
outreach approaches like bill inserts and social media
while incorporating new outreach methods as well .
The ESR team of 10 representatives located throughout
the Intermountain Gas Company service territory,
provide a one-stop-shop experience for builders,
contractors, and customers . In their dual role of
business development and energy efficiency, ESRs
field questions about natural gas service, while also
promoting the efficient use of resources and money
saving opportunities with rebates for high-efficiency
equipment . ESRs also participated in a wide range
of events such as building contractor associations
(BCA), chamber of commerce and industry trade
shows . Not only are ESRs promoting energy efficiency
and providing information outside of the Company,
but they are also part of an important feedback
loop, providing valuable insight and feedback
from the field to the Energy Efficiency team .
This year, the Company implemented a standing
monthly meeting to update the ESR team on energy
efficiency trends, address challenges, raise awareness
about frequently asked questions and to provide
energy efficiency resources for the team . A portion
of the meeting was dedicated to sharing any notable
interactions related to energy efficiency, such as
addressing a builder’s objection to energy efficiency,
or discussing trends emerging across the service
territory, including appliance shortages, or common
homeowner misconceptions about energy efficiency .
These discussions allowed the group to brainstorm
approaches to address challenges, share successful
strategies and collaborate directly with the energy
efficiency team on energy efficiency issues .
Two significant actionable items resulted from the
monthly meetings . ESRs identified the Company
employee base as one of the best and most under-
utilized energy efficiency word-of-mouth promotional
opportunities . The EE team has always provided
training sessions and reference materials to the
Customer Experience Team, to ensure they are
able to answer basic Program questions coming to
the customer call center . The ESR team identified
additional employees who interface with customers
but do not specifically have energy efficiency related
duties . To raise awareness with employees in their
regions, ESRs led an informational energy efficiency
presentation at the mandatory district safety meetings .
Presentations focused on raising awareness about
the Program, highlighting available rebates, and
recommending the energy efficiency website .
To also leverage word-of-mouth promotion by Company
employees, the energy efficiency team tested out
an employee referral program as shown in Figure 3 .
Employees received an entry into a quarterly raffle
drawing each time their name was listed on a rebate
application in the “How did you hear about this program”
field . The energy efficiency team was not eligible
Table 4. Gas Usage per Square Foot by HERS Index
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 14
for this promotion . The employee referral program
was implemented in Q4 of 2021 and participation
was low . One raffle drawing was held for a $25 gift
card before the referral program was discontinued .
The Company will continue to fine-tune employee
engagement opportunities to raise Program awareness .
CUSTOMERS AND COMMUNITY
The Company continued to leverage successful,
tried-and-true strategies as well as incorporate new
strategies and tools for energy efficiency messaging .
The target audiences remained the same in 2021:
Intermountain customers, home builders, contractors,
and the community at large . Maintaining health
and safety is always a priority for employees and
those we serve, but even more so during COVID . The
Company adapted outreach methods to promote
EE while operating within safety protocols .
The Company endeavors to engage customers in
energy efficiency from the moment they become
a customer . All new customers receive a welcome
letter with an energy efficiency brochure after
starting gas service . In 2021, Intermountain sent over
40,000 new customer letters and EE brochures .
Maintaining a digital presence continues to be an
important and cost-effective way to share information
and promote energy efficiency . Social media posts
focused on several themes . Of the 12 monthly posts,
three posts promoted the Program in general, and
three posts highlighted the benefits of specific
high-efficiency equipment along with the related
rebate, like smart thermostats and tankless water
heaters, as shown in Figure 4 . Six posts provided
energy efficiency tips for the home such as caulking
for air sealing and weather stripping, and adjusting
ceiling fan directions for the season . Additional
posts leveraged related national days like Earth Day,
Energy Efficiency Day, and Energy Star Day to raise
awareness about the Program, as shown in Figure 5 .
In addition to providing information about rebates
and energy efficiency tips, the Company uses a
mix-and-match communications approach, always
seeking the magic combination to reach and engage
customers in energy efficiency . In 2021 the Company
tried pairing social media outreach and the website,
bill insert and customer email and website, and
new this year, city buses and the EE website .
Figure 3. Spread the Word Employee Engagement
Figure 4. Energy Efficiency Social Media Post
Figure 5. Energy Efficiency Social Media Posts
15
In the Spring of 2021, the energy efficiency team
partnered with business development in a marketing
campaign . The Company contracted with public
transportation provider Valley Regional Transit (VRT) .
Energy Efficiency themed ads wrapped the exterior
of four different buses fueled by compressed natural
gas . The ads varied in size, the largest ad measured
over 18 feet long, and all ads featured the tagline,
“Save Energy, Save Money,” as shown in Figure 6 . The
Company worked with VRT to select routes that would
maximize ad exposure . To engage customers, the
Company simultaneously ran the “Launch into Spring”
sweepstakes . To enter the sweepstakes, customers were
asked to visit a sweepstakes entry page on the energy
efficiency website and submit the nearest cross street
where they saw the bus featuring the “Save Energy, Save
Money” ad . The Company promoted the sweepstakes
on social media using “boosted” posts, which optimized
Facebook posts geographically in the zip codes of the
four bus routes . There were two goals for this activity:
engagement and awareness . Customer engagement was
exceptionally low, receiving very few sweepstake entries .
By conducting an after-action review, the Company
learned a valuable lesson in simple vs . easy . The concept
of asking customers to enter the location of where they
saw an Intermountain Gas bus wrap for a sweepstake
entry, was simple, but entering the sweepstakes was not
easy . Customers had to remember seeing the bus, go to
a computer or phone, go to the website, and enter the
closest intersection in the entry form…not easy . On the
other hand, the goal of raising awareness was deemed
successful . Metrics provided by VRT estimated each bus
averaged more than 300,000 impressions per month .
Four Intermountain energy efficiency wrapped busses
traveling around the Treasure Valley for nine months
resulted in an estimated 10 million plus impressions .
And that, as they say in the business, is a wrap .
For the annual fall campaign, the Company combined
several outreach methods in an educational customer
engagement activity: bill insert, customer email, social
media posts and a web banner . The Company added a
savings calculator to the energy efficiency website that
allows customers to estimate the potential savings of
upgrading a furnace or water heater . The user can select
the efficiency of their current equipment and compare
the savings estimates of several upgraded energy
efficiency options currently rebated by the Company . To
raise awareness of this tool, the Company tied the launch
of the calculator into a comprehensive campaign and
sweepstakes opportunity with the October residential
Figure 6. VRT Bus Advertising
Figure 7. Fall Smoker Sweepstakes
Don’t let your money go up in smoke!
Use our energy efficiency
calculator to estimate potential
savings for installing high-efficient natural gas appliances.
While there, be sure to enter to win a Traeger® smoker.
Go to www.intgas.com/savings-contest/or scan the QR code with your mobile device.
Residential Energy Efficiency Program
www.intgas.com
Boise & Treasure Valley: 208-377-6840 | All Other Areas: 800-548-3679
Savings are Heating Up.
Rebate Minimum Efficiency Incentive Amount
Combination Boiler for Space and Water Heat 95% AFUE $800
Furnace 95% AFUE $350
Boiler 95% AFUE $800
Storage Water Heater .68 UEF $115
Tankless Water Heater Tier I .91 UEF $325
Tankless Water Heater Tier II .87 UEF $300
Smart Thermostat ENERGY STAR® Certified $100
Appliance Rebates
Find rebate details and more tips atwww.intgas.com/saveenergy.
Buying a new home? Look for
an energy efficient home! Ask your builder about the HERS Index Score (Home Energy Rating
System). The HERS Index Score is a way to measure a home’s total energy performance, much like
a “miles-per-gallon” sticker for houses. And remember, when it come to the HERS Index Score,
the lower, the better! A low score means a more affordable, comfortable and energy efficient
home. To learn more visit intgas.com/wholehomerebate.
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 16
customer bill insert, shown in Figure 7 . The fall customer
engagement activity was called the “Fall Smoker
Sweepstakes,” which promoted the savings calculator and
urged customers, “Don’t let your money go up in smoke!”
By visiting the savings calculator page of the energy
efficiency website, customers could enter a drawing for a
sweepstakes prize: a Traeger smoker . In addition to the
paper bill insert, the Company also sent an email to over
290,000 email subscribers, shown in Figure 8, announcing
the savings calculator and Fall Smoker Sweepstakes .
Both Facebook and banners on the “front page” of the
Intermountain Gas Company website were also used
to promote the fall sweepstakes . The combination of
email, bill insert and social media was a successful
combination to raise awareness and engagement . The
residential email campaign had an open rate of 42%,
and a click-thru rate of 35% . The savings calculator
page received over 9,000 views during the promotion
and there were over 2,000 sweepstakes entries . This
was a significant increase compared to a total of 390
sweepstake entries in the 2020 engagement activity .
CONTRACTORS
Contractors continue to be essential partners to the
Program and 2021 was no exception . Communication
with these partners was vital to the successful
implementation of the revised residential offering .
The Company was deliberate in communicating the
deadline for submitting rebates under the old offering,
and promoting the effective date of the new offering,
in addition to raising awareness about new incentives
and increased incentive amounts . The Company sent
both email communications and mailed postcards
with the relevant information, see Figure 9 .
As the rebates were retired and the new offering
was implemented, the energy efficiency team turned
to personalized, individual communications with
contractors . Most communications were to address
Program changes, such as reminding contractors
to use the updated form which required them to fill
out the new data fields added to the form, and to
ensure contractors did not miss new incentives .
The number of contractors participating in the Program
in 2021 remained flat relative to 2020 . There were
73 contractors that participated in 2020 but did not
return in 2021 . On the other hand, there were 72
new contractors participating in 2021 that did not
participate in 2020 . Anecdotal evidence suggests
that contractors lag in participation more than leave
the Program . There are instances of smaller “mom
& pop” HVAC contractors that do much smaller
volume and are only identified on rebate applications
occasionally, versus larger HVAC companies that
participate in the Program on a consistent basis due to
the volume of business . Contractor engagement and
retention continues to be a focus of the Program .
Home energy raters are often lumped into the category
of contractors but play an especially unique role in the
success of the Residential Program . Energy raters truly
have their finger on the pulse of the home building
industry as they are conducting code compliance testing
along with energy code compliance verification and
above code program verification, such as the Company’s
Whole Home rebate program verification . They work
routinely with home builders day in and day out, and they
Figure 8. Residential Customer Email
Out with the old...
Intermountain Gas Rebates are changing or ending!
All equipment installed before 4/1/21 must be submitted by 6/30/21.
Go to
to learn more!
www.intgas.com/saveenergy
In with the new!
NEW Intermountain Gas Energy Efficiency Rebates effective April 1, 2021:
COMBINATION BOILER FOR SPACE & WATER HEAT95% AFUE $800
FURNACE95% AFUE $350
BOILER95% AFUE $800
STORAGE WATER HEATER.68 UEF $115
TANKLESS WATER HEATER I.91 UEF $325
TANKLESS WATER HEATER II.87 UEF $300
SMART THERMOSTATENERGY STAR certified $100
Figure 9. Out with the Old, In with the New Postcard
17
are experts in building code and intimately understand
current building practices . Home energy raters often
provide more candid feedback regarding builder
attitudes around energy efficiency, as well as concerns
and satisfaction about the Residential Program than
could otherwise be obtained . Home energy raters are an
important part of the feedback loop from the frontlines
of residential home building and stay in frequent contact
with the energy efficiency team . In 2021, an energy
rater alerted the energy efficiency team to a meeting
that was being hosted by Ammon Building Inspectors .
Alongside local power provider, Rocky Mountain Power,
the Company was asked to present an overview of
the Residential Program to builders and contractors
attending the meeting . The Company provides
marketing materials to energy raters to help promote
the Residential Program and they are included in all
builder communications as well . The Company maintains
regular, although informal, communications with
energy raters to solicit feedback and market updates .
HOME BUILDERS
Along with the growing in-migration to Idaho and
the requisite boom in home building, the number of
builders participating in the Program also increased . In
2020, 65 home builders participated in the Residential
Program, securing either Whole Home rebates or
appliance rebates, in 2021, there were 74 combined
Whole Home and appliance rebate builder participants .
Several issues had an impact on local builders such as
increased permitting times, world-wide supply chain
issues and Intermountain’s own revision of the Whole
Home new construction rebate . The Company took steps
to accommodate for these challenges and provided
an “easy button” for rebate submissions to help make
energy efficiency easier for new construction builders .
To ease the transition from the retiring Whole Home
rebate to the new revised rebate, the Company set,
what was thought to be at the time, a generous
timeline for final rebate submissions for the retired
Whole Home rebate: homes started before April 1
were initially required to be submitted by September
30, 2021 . Feedback from home energy raters and
home builders reported home completion times were
taking far longer due to longer permitting times and
material delays due to supply chain issues . In some
cases, builders reported delayed home completions
due to waiting on a single part for a furnace, which
delayed code compliance testing, energy performance
testing, and home occupancy . To accommodate these
unique circumstances, the Company managed both
the retired and new Whole Home rebate programs
simultaneously, by implementing the new program
April 1, as planned, and extending the final submission
deadline for old Whole Home rebates to December 31,
2021 . As a result, there were 1,685 old Whole Home
rebates paid in 2021, the highest number of Whole
Home rebates in Program history . There were also 263
Whole Home Tier II rebates paid in the 9 months since
the new Whole Home rebate went into effect . Figure 10
is an example of deadline reminders sent to builders .
There were several changes implemented in the
revision of the Whole Home Rebate . As a result of the
EM&V and discussions with the EESC, the Whole Home
Rebate was redesigned to focus on energy saving
measures that directly impact therm savings . This was
achieved by eliminating some requirements and adding
others . The Energy Star Certification requirement
and the HERS score threshold of HERS score of 75 or
lower were both eliminated . Instead, specific energy
performance targets for air change per hour (ACH)
and duct leakage limits were implemented, and a
high-efficiency heating equipment requirement was
added . To give builders more options to participate, the
redesigned rebate offered two tiers of participation,
Tier I, and Tier II, with Tier II requiring slightly lower
efficiency targets, but still above-code requirements .
Taking into consideration all Whole Home rebates,
both the retired and revised versions of the rebate,
builder participation increased 31% in 2021, with 35
builders participating in 2020 and 46 participating
in 2021 . In 2021, there was an 18% increase in the
number of builders claiming appliance rebates, 33
appliance builders in 2021, over 28 appliance builders
in 2020 . In previous years, Whole Home rebates
and appliance rebates were mutually exclusive, the
revised Whole Home rebate now allows builders to
“stack-on” rebates for qualifying equipment for water
heating and smart thermostats . After 9 months of
availability, 15 Whole Home builders have exercised this
ATTENTION BUILDERS,
Last Call! If your home was permitted before April 1, 2021 and you are planning to apply for the $1,200 Whole Home rebate, all applications must be received by Intermountain Gas by December 31, 2021.
We still have rebates for new construction! The NEW Whole Home rebate program was restructured as Whole Home Tier I ($900) and Whole Home Tier II ($700), effective April 1, 2021. The new rebate structure offers more options including the option to layer on water heating and smart thermostat rebates.
Learn more atwww.Intgas.com/SaveEnergy
WHOLE HOME REBATE PROGRAM
Figure 10. Last Call! Deadline notification
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 18
option to claim additional rebates by including high-
efficiency water heating and/or smart thermostats
in combination with their Whole Home rebate .
Early indicators suggest builders are transitioning from
the retired Whole Home rebate program to the new
tiered Whole Home rebate . Based on feedback from
home energy raters, the ACH energy performance
target is one of the biggest challenges for builders .
This is not surprising given the current building
trends and code requirements . The Idaho Code Board
anticipated that the 2018 Energy Code would present
home builders with a learning curve of how to meet
the 5 ACH code requirement, and the regional lack of
professionals trained to conduct air leakage testing
and verification would present additional challenges .
The 2018 Residential Energy Code was amended to
reduce testing and verification of air leakage limits to
only 20% of all new single-family homes constructed
by each builder . It is too early to know if energy
performance targets will impact builder participation
in the Residential Program . The Company will continue
to monitor participation and feedback and will explore
educational opportunities to assist builders in meeting
the new energy efficiency rebate requirements .
The Company continued to utilize participation in
Building Contractor Association (BCA) events as one of
the most effective outreach methods to reach builders .
As COVID restrictions eased, the Company returned
to participating in the usual BCA events to promote
energy efficiency with the home building community .
The Company participated in the Parade of Homes, a
signature BCA event, in 5 different associations across
the service territory . Levels of participation varied from
title sponsorships which promoted the Residential
Program on all POH marketing materials, to interactive
promotions . To promote the Residential Program, the
Company utilized QR codes on Parade of Home ads;
which, when scanned with the camera of a smartphone,
would take the reader directly to the energy efficiency
website . In Eastern Idaho, the garage space of parade
homes is available to vendors to promote products
with parade visitors . This is an excellent opportunity to
talk about home energy efficiency while standing in an
energy efficient home . The Company took advantage
of this opportunity for the second year in a row . The
energy efficiency team and local ESRs shared booth
hosting duties over the two weekends of the parade .
Prior to the Parade of Homes, each association typically
hosts a builder showcase event, pictured in Figure 11 .
This is an opportunity for non-builder members to
showcase their products to builders, specifically for
the Parade of Homes . This event is usually mandatory
for parade builders, as part of the event is dedicated
to signing parade contracts . Event formats range
from a “speed-dating” type of event where builders
rotate through all the showcase booths two minutes
at a time, to “Around the World Passport” structured
events where builders win prizes in exchange for
“stamps” received for visiting information booths,
and standard presentations over lunch . These events
provide an excellent opportunity to engage with
Figure 12. BCA Builder Showcase Event
No place like home.
Warm, energy-efficient, affordable natural gas
turns your house into a home.
When you choose natural gas, you’re getting safe and reliable energy now that is leading the way to a bright future.
Save energy. Save money. Rebates available for both new construction and appliance replacement
when you choose high-efficiency, natural gas appliances. Go to www.intgas.com/saveenergy to learn
more, or scan the QR code with your mobile device.
www.intgas.com
Figure 11. Parade of Homes ad
19
builders about incorporating energy efficient design,
and rebates, into their showcase parade homes while
they are in the planning and development stage .
In addition to the Parade of Homes, the Company
followed the ‘go where they go’ approach to
builder engagement through BCA Golf tournament
sponsorships . The Company hosted active hole
sponsorships in four different BCA golf tournaments
throughout the service territory as an active hole
sponsor . Of all the BCA events, golf tournaments garner
the highest builder attendance . Hole sponsorship,
pictured in Figure 13, provides an opportunity to visit
each golfer as they progress through the tournament .
As an active hole sponsor the energy efficiency team
coordinates an energy efficiency themed golf game
to raise awareness about rebates and home energy
efficiency . This year the Company participated in the BCA
of South-Eastern Idaho in Pocatello for the first time .
Intermountain Gas Company has long been a major
sponsor of the statewide Idaho Building Contractor
Association (IBCA) . The energy efficiency program
leveraged the sponsorship benefits and provided
information tables, see Figure 14, at the two state
board meetings . Statewide meetings provide an
opportunity to network with BCA associates from
across the service territory all in one location . In 2021,
the energy efficiency team was invited to present to
IBCA members at the summer board meeting . The
presentation included an overview of the revised
program offering, new incentive amounts, and
highlighted the straightforward application process .
The BCAs are valuable partners in sharing the energy
efficiency message with builders and contractors,
but not all residential home builders belong to an
association . To reach this group, the Company purchased
a mailing list of residential home builders filtered by
zip codes within the Company’s service territory . A
“menu-themed” flyer, shown in Figure 15, outlining
both the builder appliance rebate program and the
Whole Home program was mailed to 2,200 residential
home builders . Leveraging another opportunity
to remind builders about the Residential Program,
the list did not filter out known BCA builders, but
instead included both BCA and non-BCA builders .
Figure 13 Golf Hole Sponsorship
Figure 14. IBCA Sponsor Info Booth
Figure 15. Whole Home “Menu” Promotional Flyer
Boise & Treasure Valley: 208-377-6840 | All Other Areas: 800-548-3679www.intgas.com
Build a home,build your rebate!
Choose from Whole Home Tier I or Whole Home Tier II new construction
rebates.
Earn additional savings when you stack rebates for a smart thermostat, or
high-efficiency water heater (or both!)
in addition to your Whole Home rebate.
Where to start? Talk to your home
energy rater, or contact John Fisk at
208-377-6043.
Visit www.intgas.com/saveenergy for program details, rebate forms, and
terms and conditions.
Builder Incentive Menu
Boise & Treasure Valley: 208-377-6840 | All Other Areas: 800-548-3679www.intgas.com
Check

o
u
t
Builder Appliance Rebates
95% AFUE Furnace $35095% AFUE Boiler $800Smart Thermostat (ENERGY STAR Certified) $10095% AFUE Combi Boiler (for space & water heat) $800.68 UEF Tanked Water Heater $115.91 UEF Tankless Water Heater I $325.87 UEF Tankless Water Heater II $300
Whole Home (New Construction) Rebates
Whole Home Tier I $900 HERS Rated, ACH≤3, 97% Furnace, Duct leakage<4 CFM, R-49 Ceiling Insulation
Whole Home Tier II $700 HERS Rated, ACH≤4, 95% Furnace, Duct leakage<4 CFM
Combination: Whole Home, Water Heater,Smart ThermostatExample 1: Whole Home Tier I $900 Smart Thermostat $100 Tanked Water Heater $115 Rebate Total: $1,115
Example 2: Whole Home Tier II $700 Smart Thermostat $100 Tankless Water Heater I $300 Rebate Total: $1,100
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
2021 ANNUAL REPORT 20
COMMERCIAL ENERGY EFFICIENCY PROGRAM
The Commercial Program was approved by the
Commission and went into effect as of April 1, 2021 .
All customers receiving natural gas through the
Company’s GS-1 rate class were eligible to participate
in the Program through 2021 . The Commercial
Program offers rebates on natural gas equipment
meeting specific high-efficiency requirements and can
be applied to replacement equipment, conversion
from other fuel sources, and new construction .
The Commercial Program is funded by the Energy
Efficiency Charge (EEC-GS) rider, a monthly per therm
charge of $0 .00320 to commercial customers . The
EEC-GS went into effect at the launch of the program
April 1, 2021 . The EEC-GS ended the year with an
over-collected balance of $84,589 as illustrated
in Table 5 . In its first year, the Company paid out
$13,836 directly to customers in the form of incentive
rebates .In this section, 2021 performance, cost-
effectiveness, and lessons learned will be covered
for each rebate . Commercial Program outreach,
promotion and education activities are also included .
COMMERCIAL ENERGY EFFICIENCY PROGRAM
The Commercial Program was, not cost-effective under
the UCT analysis, with a benefit to cost ratio of 0 .4 (see
Table 6) . The portfolio was also not cost-effective under
the TRC analysis, with a benefit to cost ratio of 0 .3 .
Table 5. Commercial 2021 Rider Balance.
INTERMOUNTIAN GAS COMPANYCommercial Energy Efficiency Program
2021 Rider Balance
Revenue $ 234,906
Program Expenses
Commercial Rebates $ 13,836
Labor 127,770
Program Delivery 3,811
Market Transformation 4,900
Total Program Expenses $ 150,317
2021 Rider Deferral
Over/(Under) Collection $ 84,589
Prior Year Rider Balance
Over/(Under) Collection $-
Rider Account Balance
Over/(Under) Collection $ 84,589
21 COMMERCIAL ENERGY EFFICIENCY PROGRAM
REBATES
CONDENSING UNIT HEATER INCENTIVE
The Condensing Unit Heater incentive offers customers
a $1,500 rebate for the installation of a high-efficient
unit heater with a minimum efficiency rating of 90%
AFUE . The Company received no applications for the
installation of this piece of equipment in 2021 .
BOILER RESET CONTROL INCENTIVE
The Boiler Reset Control incentive offers customers
a $350 rebate for the installation of a boiler reset
control . The Company received no applications for
the installation of this piece of equipment in 2021 .
HIGH EFFICIENCY CONDENSING BOILER INCENTIVE
The High Efficiency Condensing Boiler incentive offers
customers a $4 .50/kBTUh incentive for the installation
of a high-efficient condensing boiler with a minimum
efficiency rating of 90% Thermal Efficiency (TE) and a
minimum input of 300,000 BTU . The Company issued 4
rebates in the 9 months of the Commercial Program’s
existence . Three of the rebated boilers were in the
education sector, and one in the lodging sector .
The incentive was not cost-effective under the UCT
analysis, with a cost-effectiveness ratio of 0 .8 . The
incentive was also not cost-effective under the TRC
analysis, with a cost-effectiveness ratio of 0 .6 .
FRYER – ENERGY STAR CERTIFIED INCENTIVE
The Fryer incentive offers customers an $800 incentive
for the installation of an Energy Star Certified Fryer .
The Company issued 4 rebates during 2021 .
The incentive was not cost effective under the UCT
analysis, with a cost-effectiveness ratio of 0 .3 . The
incentive was also not cost-effective under the TRC
analysis, with a cost effectiveness ratio of 0 .3 .
STEAMER – ENERGY STAR CERTIFIED INCENTIVE
The Steamer incentive offers customers a $1,100
incentive for the installation of an Energy Star Certified
Steamer . The Company issued 2 rebates during 2021 .
The incentive was not cost-effective under the UCT
analysis, with a cost-effectiveness ratio of 0 .5 . The
incentive was also not cost-effective under the TRC
analysis, with a cost-effectiveness ratio of 0 .5 .
GRIDDLE – ENERGY STAR CERTIFIED INCENTIVE
The Griddle incentive offers customers a $200 incentive
for the installation of an Energy Star Certified Griddle .
The Company received 0 applications for this incentive .
LESSONS – COMMERCIAL PROGRAM
Condensing Unit Heaters require special collection of
the condensate generated from the operation of the
unit, which poses a potential barrier to participation
for the incentive . The Company is exploring a pilot
program for high temperature and heating ventilation
unit heaters as another unit heater energy saving option .
INTERMOUNTIAN GAS COMPANY
CommercialEnergy Efficiency Program2021 UCT Results
Commercial Program
Rebate Therm Savings Annual Therm Savings UCT Benefits UCT Costs UCT Ratio
Condensing Unit Heater 409 - $- $--
Boiler Reset Control 1,212 - $- $--
High-Efficiency Condensing Boiler 1,036 4,145 $ 32,492 $ 42,204 0 .8
Fryer 508 2,032 $ 9,428 $ 37,318 0 .3
Steamer 1,054 2,108 $ 9,781 $ 19,259 0 .5
Griddle 76 - $- $ --
ESK 53 318 $ 1,163 $ 51,535 0 .0
8,603 $ 52,864 $ 150,317 0.4
Table 6. Commercial 2021 UCT Results
2021 ANNUAL REPORT 22
The Company is exploring another high-efficiency
unit heater as a possible additional rebate offering .
Contractor and customer feedback revealed commercial
customers are interested in a tankless water heater
rebate option . This measure was not included in the
CPA but will be explored in the next CPA study .
Like the Residential Program, contractors and installers
will be key to promoting energy efficient commercial
options, as contractors are present at the point of
decision and considered subject matter experts by their
customers . Most of the commercial kitchen equipment
rebates in 2021 were attributed to one equipment
installer . The Company will continue to pursue
outreach with commercial contractors and installers
to raise awareness about the Commercial Program .
COMMERCIAL PROGRAM OUTREACH,
AWARENESS AND EDUCATION
The Commercial Program is organized like the
Residential Program with webpages dedicated to
commercial rebates, promotional materials, and
an energy saving calculator for commercial food
service . Additionally, the energy efficiency team
rolled out brand new outreach efforts to help the
Commercial Program enter a new marketplace .
Before launching the Commercial Program with
customers, the Company attempted to first prepare
commercial contractors . The Company mailed the
commercial brochure to over 550 contractors in June .
Over 30,000 commercial customers received the program
brochure as a bill insert, shown in Figure 16, in July 2021 .
The Company also created webpages dedicated to the
Commercial Program . The commercial website mirrors
the residential website by outlining all rebate offerings
and including links to the rebate application, with both
paper and on-line options . There is also a commercial
food service equipment calculator to help commercial
food service customers estimate how much can be saved
by upgrading to high-efficiency natural gas cooking
equipment . This calculator is in a “build your restaurant”
format . It allows customers to compare the energy
usage and cost estimates of standard equipment to high
efficiency equipment, based on the type and volume of
food preparation . The calculator was developed by GTI .
The ESRs have been important partners in the launch
of the Commercial Program . Similar to the Residential
Program, the ESRs are able to discuss the program
with every commercial customer they contact
Figure 16 Commercial Program Brochure
Commercial Energy Efficiency Program
Energy efficient equipment makes your energy dollars go further. In addition to saving more by using efficient equipment, Intermountain
Gas offers rebates to keep even more money in
your pocket. Who doesn’t like that?
Commercial Heating Incentives
Eligible Appliance Efficiency Rating Rebate
Condensing Unit
Heater
90% AFUE or
Greater Efficiency $1,500
Boiler Reset Control N/A $350
High-Efficiency Condensing Boiler
90% or Greater Thermal Efficiency and ≥300kBTUh $4.50/kBTUh
Boise & Treasure Valley: 208-377-6840 | All Other Areas: 800-548-3679
www.intgas.com
Installing high-efficiency natural gas appliances in your business is a smart investment that will save you money.
Commercial Energy Efficiency Program
Commercial Kitchen Equipment Incentives
Eligible Appliance Efficiency Rating Rebate
Fryer ENERGY STAR® Certified $800
Steamer ENERGY STAR® Certified (≥38% cooking eff/≤2,083 BTU/hr/pan idle rate)$1,100
Griddle ENERGY STAR® Certified (≥38% cooking eff/≤2,650 BTU/hr/SQ FT idle rate)$200
Boise & Treasure Valley: 208-377-6840 | All Other Areas: 800-548-3679
www.intgas.com
Eligibility Requirements
• Commercial customers of Intermountain Gas Company (IGC) served on its General Service (GS-1) rate schedule in the state of Idaho. • Rebates apply only to the purchase and installation of new equipment, used equipment does not qualify. • Customer must solely heat the property with natural gas provided by IGC to qualify for all space heating rebates.
Other Terms and Conditions may apply. Go to www.intgas.com/saveenergy for complete details.
One easy to submit application, cash in your pocket, and savings on energy costs ... what’s not to love?
Figure 17 Commercial Customer Email
23 COMMERCIAL ENERGY EFFICIENCY PROGRAM
helping to promote uptake of the new program .
To raise awareness about the Commercial Program,
the Company launched a pilot program to distribute
commercial ESKs . The kits contained items to help save
on water heating, such as a pre-rinse spray valve used
in commercial cooking establishments, and kitchen
and bathroom aerators that could be easily installed by
customers . The ESK pilot program began in October . They
were featured prominently on the commercial website
and promoted through a new format not previously used
by the Program, the onsert (see Figure 18) . The onsert
allowed information regarding the ESK promotion to be
printed on each commercial customer bill and maximized
unused space on the bill . The ESK onsert showed up on
customer bills throughout October . Between October
1, and December 1, the Company received 16 ESK
applications . After sending a promotional email to over
9,300 commercial customer email subscribers (see
Figure 18), the Company received 49 ESK applications
in the five business days following the email promotion,
with a 36% open rate, and a 2 .6% click thru rate .
Although the email promotion achieved a significant
open rate for a first-time email communication, follow
through requests for the ESKs were quite low .
The Company surveyed ESK recipients approximately 6
weeks after receipt of the ESK . Of the 9 survey responses,
67% said they installed the pre-rinse valve . Those that
did not install this device stated they already had one,
or it did not fit their appliance . For the kitchen aerators,
customers specified they either installed both, installed
one or did not install the kitchen aerators . Of the
respondents, 44% reported both aerators were installed,
and an equal number stated at least one was installed .
The 11% that did not install the kitchen aerator said the
device did not fit . The same percentages were reported
for the 2 complimentary bathroom aerators, 44%
installed both, 44% installed one, and he 11% that did not
install the bathroom aerator stated they only had one
bathroom faucet, or they already had a high-efficiency
aerator . The digital water thermostat was the most used
device with 89% confirming they used the thermometer
to measure water temperature . For the remaining
kits, the Company plans to take a more targeted
marketing approach focusing on commercial kitchen/
restaurant customers in conjunction with promoting
incentives for commercial kitchen cooking equipment .
Customers were also asked to rate their satisfaction with
their ESK . A total of six customers rated their satisfaction
a “10,” meaning very satisfied, and added, “Thank you for
helping the businesses on these hard times!” A singular
rating, also the lowest satisfaction rating of a 5, stated,
“most items were not applicable or did not apply to our
building .” Through awareness building strategies like the
ESK pilot program, the Company continues to learn about
Commercial customers and how they use natural gas .
Intermountain Gas Company has long been a supporter
of industry related organizations like the Idaho Chapters
of the American Society of Heating, Refrigeration and
Air-Conditioning Engineers (ASHRAE) and the American
Institute of Architects (AIA) . Like the existing BCA
memberships, these established relationships provided
the perfect outreach opportunity to promote the new
Commercial Program . Unfortunately, with the challenges
Figure 18 Commercial ESK bill “onsert”
Figure 19 Commercial Program Magazine Ad
Earn cash rebates atEarn cash rebates at
Save energy.Save money.
NEW! Commercial Program!
^
2021 ANNUAL REPORT 24
related to COVID, the timing was less than perfect as
neither organization was able to host the traditional
in-person conferences, events, or golf tournaments . The
Company was able to place advertisements about the
Program and attend one in person event (see Figure 19) .
The Company sponsored the annual AIA Design Awards
event which provided an excellent opportunity to connect
with both commercial and residential architects and
engineers and raise awareness about both programs .
The Company also worked to establish relationships
with previously uncontacted industry related
organizations like the Idaho Lodging and Restaurant
Association, which includes hotels and restaurants .
To quickly get the word out, The Company literally sent
word about the Commercial Program to customers via bill
inserts . To continue to raise awareness and participation
in the Program, the Company is exploring ways to market
the Program by segment . Specific information about
commercial customers in the existing customer database
is limited . Standard Industrial Classification (SIC) codes
describe the primary business activity of a company
with more than 10,000 unique classifications . Using a
SIC Code Lookup, the Company is currently working on
verifying, or assigning if not yet identified, the SIC codes
of commercial customers to be able to send customized
program promotions . For example, any customer with an
SIC code of 5812 -Eating Places, could be sent a program
flyer for commercial kitchen equipment rebates . On
the other hand, a customer with an SIC code 3556 –
Food Products Machinery would receive a different EE
communication . Current commercial rebate offerings are
only for space heating . Identifying customers that use
natural gas for processes will be valuable as the Company
explores the possibility of a custom commercial program .
Building something from the ground up takes
time, and that is certainly the case with the new
Commercial Program . COVID Protocols continued
to limit the Company’s ability to attend in person
events to promote the Program for most of the
year, making the Commercial Program launch even
more challenging than it would be under normal
circumstances . COVID impacts on world-wide supply
chain suggest equipment costs for both HVAC and
commercial kitchen equipment are on the rise, and
high-efficiency equipment will be on demand . Material
costs like commercial fryer oil costs are also increasing
making high efficiency option even more practical .
The Company will seek to expand efforts to raise
awareness of the new Commercial Program and promote
energy saving options for commercial customers .
25 COMMERCIAL ENERGY EFFICIENCY PROGRAM
262021 ANNUAL REPORT
ENERGY EFFICIENCY STAKEHOLDERS
The contribution of the Energy Efficiency Stakeholder
Committee is important to the success of the Program .
The Committee meets regularly for Program updates .
Meetings are also an opportunity for the Company to
seek feedback and guidance from industry experts, vet
ideas, and hear from special guest speakers on energy
efficiency related topics . In the spirit of efficiency, rather
than conduct two separate Committee meetings for
residential and commercial, there is one EESC which
includes representatives from both sectors to provide
expertise in their respective fields .
AVOIDED COST SUBCOMMITTEE
The work of the Avoided Cost Subcommittee
(Subcommittee) is on-going . Interested EESC members
joined the Subcommittee specifically to address the
avoided cost model used by the Company for cost-
effectiveness testing . The Company’s current avoided
cost calculation includes avoided commodity and
transportation costs . The Subcommittee agreed to leave
a placeholder for the potential inclusion of distribution
costs in the future .
Inputs from the Company’s Integrated Resource Plan
(IRP) were utilized to develop a model to identify and
capture related distribution costs for use in the avoided
cost calculation . The Company presented the model to
the Subcommittee for review and input . That review is
still underway, but the lack of distribution costs in the
avoided costs does not impact any cost effectiveness
testing contained in this report . In fact, the future
inclusion of any distribution costs in the avoided cost
calculation will only improve program cost-effectiveness .
27
ENERGY EFFICIENCY STAKEHOLDER COMMITTEE
Intermountain conducted two EESC meetings in
2021 . The first meeting was held on June 2, 2021 . The
Company provided a brief review of impact and process
recommendations from the third-party Evaluation,
Measurement and Verification (EM&V) study conducted
by ADM & Associates, and the actions taken by the
Company to implement those recommendations . The
energy efficiency team provided the EESC with program
updates on overall Program performance, in addition to
status updates on rebates, education and community
outreach activities . An overview of participation in GTI’s
Emerging Technology Program (ETP) and the North
American Gas Heat Pump Collaborative (Collaborative)
was also provided . The EE team walked through the plan
to launch the Commercial Program .
The second EESC meeting was held on November 4, 2021 .
Most of the meeting focused on Program activities and
status updates following the April 1 launch of the revised
residential offering and the brand-new commercial
offering . The energy efficiency team presented the details
of a community wide awareness campaign advertising on
Valley Regional Transit buses, and a residential builder
mailing . The Company also discussed plans for a fall
campaign to launch a savings calculator in conjunction
with the annual bill insert and outlined the ESK program
deployed in October 2021 . Intermountain expressed
an interest in exploring a pilot type program for high
temperature heating and ventilation (HTHV) unit heaters
for the Commercial Program, which would first require
an energy savings analysis to verify savings . Continued
rebate growth was reported year-to-date for rebates,
but the Company acknowledged the potential for some
slowdown in rebate redemptions due to world-wide
supply chain impacts on the local markets, especially
as Intermountain experienced its own impacts in the
form of material delays for new service line installs and
increased times to complete new builds .
To continue to raise awareness about gas heat pump
technology, the Company arranged for a special guest
presentation from Paul Glanville, the R & D Director
at the Gas Technology Institute . Glanville presented
information on gas fired heat pumps . He provided an
overview of how gas heat pumps work and the different
types of heat pumps . Glanville also outlined the role
for energy efficiency coupled with decarbonized fuels
to drive greenhouse gas reductions . The presentation
provided an overview of gas heat pump technology
successfully being utilized in commercial buildings, as
well as the product demonstrations, and steps that are
being taken to reduce market barriers to gas heat pump
technology adoption for residential use .
The commitment, expertise, and input of the EESC
and Subcommittee is an integral part of the energy
efficiency program cycle of planning, implementation,
and evaluation . All EESC meetings were conducted
virtually . While meeting virtually started as a necessity
during the world-wide pandemic, the virtual meeting
format provided a level of convenience that facilitates
participation from stakeholders throughout the service
territory .
ENERGY EFFICIENCY STAKEHOLDERS
2020 ANNUAL REPORT 28
SECURING AN ENERGY EFFICIENT FUTURE
Intermountain is continually exploring cost-effective
energy saving solutions that can be implemented today,
in addition to seeking the energy saving measures
of tomorrow . The Company participated in several
member driven groups, each focused on different stages
and efforts of bringing new innovative energy saving
products to market . This endeavor often feels like trying
to solve the riddle of which came first, the chicken or
the egg . Manufacturers do not want to build products
if there is not a market for the product . Consumers
cannot demand a product they do not know about or
do not know they want . This is the crux of the work in
securing an energy efficient future, to influence both
the market push and market pull . The strategy is to
attack the “riddle” from all sides, influencing market
push, by getting manufactures to bring new products
to market, and prompting market pull, by raising
awareness and educating customers to create demand
for new energy efficient solutions . Organizations like
GTI and the Collaborative are working to address the
development of cost-effective, commercially viable
energy efficient technologies, and to prep the market
to receive these products through customer and
contractor education, product demonstrations and
providing support for energy saving incentives .
Energy Efficiency specifically, continued participation
on the member-driven collaborative, the Emerging
Technology Program . ETP is focused on the introduction
and acceptance of new emerging technologies for
energy efficiency programs . Intermountain virtually
attended the Spring and Winter ETP meetings .
Presentations covered a range of technologies like micro
cogeneration (mCHP) and gas heat pump technology
requisite applications, water heating, HVAC, laundry,
food service, for the various sectors, commercial,
industrial, and residential . Meetings provided updates
on the status and findings of product testing to verify
savings and performance, as well as addressing
market readiness and potential market barriers .
Through its membership in GTI, Intermountain was
one of six sponsors of the “Residential Thermally-
driven Heat Pump Combi-Demonstration” Phase I &
II, during the 2019-2020 heating season . The project
was designed to establish a low-cost thermally
driven gas heat pump (THP) .3 The demonstration
was a pre-production design of the gas heat pump,
custom air-handler, and other system components .
To follow up on the important work of this
demonstration, Intermountain was one of 14 U .S . and
Canadian utility sponsors of the white paper finalized
in 2019, “The Gas Heap Pump Technology and Market
Roadmap,” (Roadmap) .4 The purpose of the Roadmap was
to “identify opportunities, information gaps, impediments
and strategies to accelerate the commercialization and
market acceptance of gas heat pumps in North America .”
The goals included: gathering and sharing high-level
stakeholder input from manufacturers, developing
a technical assessment summary of domestic and
international gas heat pump products, market conditions
and market barriers and identifying next steps . GTI
focused on working with manufacturers to get from pre-
production design to commercialization . The Roadmap
identified the barriers and challenges the industry might
face on that road to commercialization and identified
the next steps to be taken down said road . The North
American Gas Heat Pump Collaborative was the group
to act beyond the identification of next steps and put
in motion the actual implementation of those steps .
In 2021, the Company continued its membership in the
Collaborative since joining as a charter member in 2019 .
The Collaborative has evolved from a collection of utilities
and energy efficiency program administrators working
together through the facilitation by a third party, to a
well-organized, 501(c)(3) entity working to accelerate the
adoption of innovative gas technologies through strategic
intervention .” Resource Innovations (RI), formerly the
facilitator, is now the contracted administrator of the
Collaborative . An official board of directors has been
formed, as well as a communications committee in
addition to the committees focused on the initiative work:
residential HVAC gas heat pump committee and gas heat
pump water heater committee . The Collaborative has
completed the initial work of conducting supply chain and
consumer research and identified a 2022 scope of work
for both committees . Scoped activities identified include
manufacturer outreach and engagement, establishing the
gas heat pump in technical reference manuals . The scope
of work also includes accelerating codes and standards
and product certifications, and developing installer
support materials, to name a few . The Collaborative
coordinated an outreach schedule to promote the
Collaborative at industry related conferences and events
29 SECURING AN ENERGY EFFICIENT FUTURE
and continues to recruit new members to join this
collective effort . The Collaborative has also launched
a website, www .gasheatpumpcollab .org, to share gas
heat pump resources such as technology overviews,
results of field demonstrations, as well as a white paper
outlining the benefits of gas heat pumps: sustainable,
affordable, feasible and reliable . These are the types of
activities that will accelerate adoption of gas heat pump
technology, but it is collaboration, the true purpose of
the Collaborative, that will influence adoption more
quickly than Intermountain could achieve working alone .
MDU Resources Group is a corporate member of the
Energy Solutions Center (ESC) . ESC is a non-profit
organization that promotes energy-efficiency natural
gas solutions for use by residential, commercial, and
industrial energy users . ESC also creates educational and
marketing materials, case studies and training manuals
to “enhance the success of those utility customer service
professionals responsible for enhancing customer
productivity, efficiency, reliability and comfort .”5 In 2021,
the energy efficiency team leveraged the corporate
membership and participated on the ESC Gas Heat
Pump Consortium (Consortium), whose objective is “to
more effectively alert and educate end users, engineers,
architects, consultants, installers, contractors and trade
allies about this higher efficiency, lower carbon HVAC
option .” In December 2021, the Consortium produced
a gas heat pump guide (see Figure 20) that can be
branded with the Intermountain Gas logo, which will
be valuable to share with contractors and customers .
The Consortium also plans to launch a half-day gas heat
pump workshop designed for utility employees, and
a separate workshop for contractors . Intermountain
will leverage these resources to raise awareness and
education for groups critical to the advancement of
gas heat pumps, including the energy efficiency team,
the ESR team and HVAC and plumbing contractors .
Figure 20 Gas Heat Pump Guide
3 https://www .gti .energy/wp-content/uploads/2021/12/Gas-Absorption-Heat-Pump-Combi_2-Pager_2021-12-03 .pdf
4 https://www .gti .energy/wp-content/uploads/2020/09/Gas-Heat-Pump-Roadmap-Industry-White-Paper_Nov2019 .pdf
5 https://www .energysolutionscenter .org/default .aspx
2021 ANNUAL REPORT 30
ENERGY EFFICIENCY: NEXT STEPS
The Program has finally settled into a cycle of planning,
implementation, and evaluation . After implementing a
pilot-like first time residential energy efficiency program
in 2018, and receiving overwhelming customer response
that continues to grow, the Company conducted its first
formal EM&V study in 2020 . The Company used the
recommendations from EM&V for planning the Program
revisions and implemented the recommended changes .
To continue delivering cost-effective energy savings
to customers, the Company plans to submit an RFP to
contract for another CPA in preparation for the next
IRP cycle, and to continue to put forth the best energy
efficient solutions for Intermountain’s customers .
In case No . INT-G-21-03, the Company submitted a
proposed EM&V schedule for 2021-2024 . An impact
evaluation for residential water heaters, both storage
and tankless, was planned for all water heating
rebates paid through 2022 . From Program inception
in 2017 through 2020 there have only been 27
storage water heater rebates and 610 tankless water
heater rebates . Both incentives were increased in the
Program revision that went into effect April 2021 and
are showing signs of increased participation in the
first 9 months of availability . These rebates would not
be eligible for evaluation since they have less than
1 year of history to evaluate and would not provide
significant data to justify a formal evaluation . For
this reason, the Company plans to revise the EM&V
schedule to include a process evaluation and impact
evaluation of all residential measures through 2023 .
Similarly, an impact evaluation was planned for
commercial kitchen equipment rebates paid through
2022 . With only 4 fryers and 2 steamer rebates paid,
there has not been enough participation to warrant the
investment in a formal EM&V study . The Company will
continue to monitor Commercial Program participation
and plans to conduct a process evaluation of the
Commercial Program for all activity through 2022 .
Case intervenors in INT-G-21-04, recommended the
Company evaluate the feasibility of targeted digital
behavioral EE programs to “derive significant savings
without the usual overhead of customer costs associated
with equipment replacement rebates .” The Company will
explore ways to provide customers with cost-effective
energy saving measures beyond equipment replacement .
In order No . 35313, issued in case No . INT-G-21-03,
the Idaho Public Utilities Commission deemed the
2020 Program expenses as prudently incurred .
The Commission commended the Company “for
continuing to adjust its young EE Program to deliver
cost-effective energy savings to customers .” The
Company will continue to evaluate its effectiveness
in securing cost-effective savings and meeting the
energy saving needs of Intermountain Gas customers
as the energy efficiency program continues to grow .
31 ENERGY EFFICIENCY: NEXT STEPS
Intermountain Gas Company
555 S Cole RoadBoise, ID 83709
Tel: [phone]
Fax: [phone]
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