202310062022 Energy Efficiency Annual Report.pdf

ANNUAL REPORT
2022
RECEIVED
Friday, October 6, 2023 1:05:12 PM
IDAHO PUBLIC
UTILITIES COMMISSION
2022 ANNUAL REPORT
TABLE OF CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
COST-EFFECTIVENESS TESTING METHOD . . . . . . . . . . . . . . . . . . . . . .3
RESIDENTIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . .5
RESIDENTIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . . .5
RESIDENTIAL REBATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
WHOLE HOME TIER I INCENTIVE
WHOLE HOME TIER II INCENTIVE
LESSONS – WHOLE HOME TIER I & II
FURNACE INCENTIVES
LESSONS – FURNACE
BOILER – 95% AFUE INCENTIVE
LESSONS – BOILER
COMBINATION BOILER – 95% AFUE INCENTIVE
LESSONS – COMBINATION BOILER
SMART THERMOSTAT INCENTIVES
LESSONS – SMART THERMOSTAT
STORAGE WATER HEATER INCENTIVE
LESSONS LEARNED – WATER HEATER
TANKLESS WATER HEATER TIER I INCENTIVE
TANKLESS WATER HEATER TIER II INCENTIVE
LESSONS – TANKLESS WATER HEATER
LESSONS – RESIDENTIAL PROGRAM
ENERGY EFFICIENCY TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
ENERGY EFFICIENCY OUTREACH AND EDUCATION ACTIVITIES . .10
COMMERCIAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . .16
COMMERICAL ENERGY EFFICIENCY PROGRAM . . . . . . . . . . . . . . . . .16
REBATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
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
ENERGY SAVING KITS
LESSONS – COMMERCIAL PROGRAM
COMMERCIAL PROGRAM OUTREACH, AWARENESS AND EDUCATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
ENERGY EFFICIENCY STAKEHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . .22
SECURING AN ENERGY EFFICIENT FUTURE . . . . . . . . . . . . . . . . . . . . .23
ENERGY EFFICIENCY: NEXT STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
LIST OF TABLES
TABLE 1 . 2022 RESIDENTIAL RIDER BALANCE . . . . . . . . . . . . . . . . . . . . .5
TABLE 2 . 2021 RESIDENTIAL UCT RESULTS . . . . . . . . . . . . . . . . . . . . . . .6
TABLE 3 . 2022 WEB ANALYTICS FOR OCTOBER ENGAGEMENT . . . . .11
TABLE 4 . “HOW DID YOU HEAR ABOUT THE
PROGRAM” RESPONSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
TABLE 5 . REBATES RECEIVED POST OCTOBER
CUSTOMER ENGAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
TABLE 6 . 2022 COMMERCIAL RIDER BALANCE . . . . . . . . . . . . . . . . . . .16
TABLE 7 . 2022 COMMERCIAL UCT RESULTS . . . . . . . . . . . . . . . . . . . . . .16
TABLE 8 . COMMERCIAL WEBSITE ACTIVITY . . . . . . . . . . . . . . . . . . . . . .21
TABLE 9 . ATTENDEE SURVEY RESPONSES AFTER MAY 2022 GAS
HEAT PUMP WEBINAR, DATA PROVIDED BY ENERGY
SOLUTIONS CENTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
TABLE 10 . ATTENDEE SURVEY REPONSES AFTER NOVEMBER
2022 GAS HEAT PUMP WEBINAR, DATA PROVIDED
BY ENERGY SOLUTIONS CENTER . . . . . . . . . . . . . . . . . . . . . .24
LIST OF FIGURES
FIGURE 1 . WEBPAGE REFERENCING THE COMMERCIAL
AND RESIDENTIAL PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . .5
FIGURE 2 . BRANDED PEN AND PENCIL SAMPLES . . . . . . . . . . . . . . . . . .5
FIGURE 3 . SOCIAL MEDIA SAMPLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
FIGURE 4 . 2022 RESIDENTIAL BILL INSERT . . . . . . . . . . . . . . . . . . . . . . .11
FIGURE 5 . SOCIAL MEDIA CUSTOMER ENGAGEMENT . . . . . . . . . . . . .12
FIGURE 6 . BUILDING CONTRACTOR BUILDER EXPO EVENT . . . . . . . .14
FIGURE 7 . ENERGY EFFICIENCY SIGNAGE IN PARADE OF HOMES . . .14
FIGURE 8 . ENERGY EFFICIENCY SIGNAGE IN PARADE OF HOMES . . .14
FIGURE 9 . ENERGY EFFICIENCY GOLF HOLE SPONSORSHIP . . . . . . . .15
FIGURE 10 . BOISE REGIONAL REALTORS ECONOMIC
SUMMIT SPONSORSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
FIGURE 11 . MERIDIAN PUBLIC WORKS EXPO INFO TABLE . . . . . . . . .16
FIGURE 12 . ENERGY EFFICIENCY COLORING BOOK SAMPLE . . . . . . .16
FIGURE 13 . POCATELLO LAW ENFORCEMENT APPRECIATION
COMMUNITY BBQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
FIGURE 14 . COMMERCIAL CUSTOMER EMAIL . . . . . . . . . . . . . . . . . . . .18
FIGURE 15 . COMMERCIAL CUSTOMER BILL ONSERT . . . . . . . . . . . . . .20
FIGURE 16 . COMMERCIAL FOOD SERVICE MAILER . . . . . . . . . . . . . . . .20
FIGURE 17 . ASHRAE GOLF HOLE SPONSORSHIP . . . . . . . . . . . . . . . . . .20
FIGURE 18 . ENERGY EFFICIENCY ASHRAE TECHNICAL
CONFERENCE SPONSORSHIP . . . . . . . . . . . . . . . . . . . . . . . .20
FIGURE 19 . ESC GAS HEAT PUMP WEBINAR INVITATION . . . . . . . . . . .21
FIGURE 20 . COMMERCIAL PROGRAM ADVERTISEMENT IN
IDAHO BUSINESS REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . .21
FIGURE 21 . COLLABORATE EDUCATIONAL COLLATERAL . . . . . . . . . .24
2022 ANNUAL REPORT 1
In 2021 Intermountain revised the Residential Program
offering and launched a new Commercial Program,
both of which went into effect on April 1, 2021 . After
a year of transition, retiring rebates and launching
new and revised rebates, 2022 was the first full year of
data on the revised Residential Program and the new
Commercial Program . The first 9 months of rebate
performance from April through December 2021, for
both Programs, provided some early insight on how
customers and the market might respond to Program
changes, and most early indicators held true: the smart
thermostat rebate quickly grew to one of the most
redeemed rebates after its launch, water heating rebates
grew after the incentive amount was increased, and new
construction rebates decreased as builders converted
from the retired program requirement of Energy Star
Certified homes, to meeting higher energy performance
target requirements and navigating supply chain
issues for high-efficient equipment . On the commercial
side, after initial slow uptake in the Commercial
Program, this Program continued to lag in 2022 .
The Company was successful in securing cost-effective
energy savings . At the Portfolio level, which consists
of the Residential Program and Commercial Program
together, the Energy Efficiency Portfolio was cost-
effective with a Utility Cost Test (UCT) ratio of 1 .3 .
Individually, both the Residential and Commercial
Programs were cost-effective at the Program level,
UCT of 1 .3 and 2 .0 respectively . At the measure level,
the residential storage water heater was the only
measure with a UCT ratio less than 1 .0, at 0 .9, despite
an increased number of redeemed storage water
heater rebates . All other measures were cost-effective .
Customer participation in the Residential Energy
Efficiency Program continued to grow in 2022 . The
number of rebates paid to residential customers
increased from 5,553 rebates in 2021 to 7,945
rebates in 2022, or a 43% increase in participation .
To accurately compare year-over-year participation,
the 2022 total of 5,553 rebates included both rebates
paid on measures that were retired or changed, and
the revised rebates that went into effect April 2021
compared to the total rebate count for 2022 .
For the Residential Program, of the 7,945 residential
rebates, the high-efficiency furnace rebate and smart
thermostat rebates were the two most redeemed
rebates, followed by the new construction Whole
Home Tier II rebate, and water heaters . The boiler
and combi boiler tied for last place, with 5 and 6
rebates paid for each measure, respectively .
Participation in the Commercial Program also
increased, but at a far slower pace than the Residential
Program . The Company paid commercial rebates for
seven high-efficiency boilers in the healthcare and
education sectors, an increase over 4 commercial
boilers in 2021 . There were no rebates paid for either
of the other two space heating incentives: condensing
unit heater or boiler reset control . Of the three
commercial kitchen equipment rebates, there were
19 Energy Star fryer rebates paid, compared to 4 in
2021 . There were no rebates paid for the Energy Star
steamer or Energy Star griddle . The Company also
offered complementary Energy Saving Kits (ESK) to
commercial customers to offer some immediate, easy
D-I-Y energy saving devices, and to raise awareness
about the Program . Of the 350 kits purchased
for the pilot offering, 348 kits were placed .
To comply with Order No . 35313 resulting from case
No . INT-G-21-03, Intermountain implemented a one-
time, customer refund to correct an over-collected
Energy Efficiency Charge (EEC) balance of $4,896,882 .
The over-collected balance was due to higher-than-
expected therm sales and slower than forecast uptake of
the revised program . The Company performed a one-
time refund of $4,850,000 in the 2022 PGA . In addition,
to more accurately match on-going revenues with
expenses, the Company filed to decrease the residential
EEC rate . On October 1, 2022, the EEC was reduced
from $0 .02093 per therm to $0 .01564 per therm .
To launch the Commercial Program in 2021 the
Company used an 80/20 expense allocation, assigning
80% of expenses to the Residential Program and 20%
to the Commercial Program . This allocation was based
on the 2018 Conservation Potential Assessment (CPA)
estimation attributing 80% of savings potential to
the Residential Program and 20% to the Commercial
Program . Due to the slow uptake of the Commercial
Program, the 2022 expense allocation was revised .
Costs were direct assigned where the Company was
able to do so . In the case that costs could not be direct
EXECUTIVE SUMMARY
2 EXECUTIVE SUMMARY
assigned, they were assigned based on an analysis
of estimated therm savings and program activities . A
95/5 allocation was applied to this pool of expenses,
assigning 95% to Residential and 5% Commercial .
The Company utilized both tried-and-true outreach
methods and new approaches to raise awareness about
the Residential and Commercial Programs . The annual
residential customer bill insert, combined with the
customer engagement activity resulted in the highest
customer response in the history of the Program .
Participation in the Building Contractor Associations,
both statewide and regionally, continues to be one of
the most effective means of builder and contractor
outreach . For the Commercial Program, the Company
engaged with new industry partners like the American
Society of Heating, Refrigeration and Air-Conditioning
Engineers (ASHRAE) and the Association of Architects
Idaho Chapter (AIA) to raise awareness about energy
efficiency, targeting the design process . The use
of email campaigns to residential and commercial
customers helped build awareness, brand recognition
and provided useful metrics for this outreach method .
The Company’s collaboration with the Energy
Efficiency Stakeholder Committee (EESC) remained a
vital partnership in the advancement of the Energy
Efficiency Portfolio . The Company held two meetings
in 2022 . At the Spring meeting in May, the Company
provided an overview of 2021 program results as a
preview to the annual report . Other agenda items
also included the upcoming request for proposal (RFP)
for a new CPA and the launch of a major project to
streamline rebate processing by working with in-house
talent on the development of a rebate processing
application . The November meeting consisted of
a program update on 2022 rebate performance
as well as outreach and education activities .
The Company demonstrated its commitment to an
energy-efficient future through continued participation
in the North American Gas Heat Pump Collaborative
(Collaborative) and the Energy Solutions Center (ESC)
Gas Heat Pump Consortium . Both groups are focused
on accelerating the introduction and adoption of the
most near-term, highly efficient, lower emission, gas
technology: gas heat pumps . The Company promoted
educational gas heat pump webinars to over 300
industry partners to raise awareness about this
technology . The Company also participated in the
member-driven collaboration Emerging Technology
Program (ETP) facilitated by GTI Energy (GTI), to
accelerate new emerging technologies to expand energy
saving opportunities for Intermountain Gas customers .
This report details the 2022 Energy Efficiency (EE)
Portfolio performance, cost-effectiveness testing, and
outreach and education activities of the Residential
and Commercial Energy Efficiency Programs .
2022 ANNUAL REPORT 3
Intermountain Gas Company, a subsidiary of MDU
Resources Group, is a natural gas distribution company
serving over 410,000 residential, commercial, and
industrial customers in 74 different communities across
Southern Idaho since 1955 .
In addition to reliably providing affordable and safe
natural gas for home space and water heating, 2022
marked the fifth 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 .
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 2021 and went into effect April
1 of the same year . All customers receiving natural gas
through the Company’s commercial rate schedule were
eligible to participate in the Program . The Commercial
Program offers three space heating rebates and three
commercial kitchen equipment rebates .
Cost-Effectiveness
Testing Methodology
Intermountain’s objective is for all rebates to have
benefit/cost ratios equal to, or greater than, one 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 the Evaluation, Measurement and Verification
study (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 .
To conduct cost-effectiveness testing for the respective
programs, the Company assigned expenses to each
Program through a two-step process: direct assignment
and by an expense allocation . The Company first
identified and direct assigned expenses to the respective
Programs . For example, the Company purchased a
mailing list of restaurants in the Company’s service
territory in order to send promotional material about
commercial kitchen equipment rebates . This expense
was applied directly to the Commercial Program expense
workorder . Likewise, all expenses related specifically
to Residential Program activities, were charged to the
residential workorder .
INTRODUCTION
4
To comply with Order No . 35663 to “assign EE costs
when possible or provide explanations as to why costs
are not assignable,” the Company direct assigned
as many Program expenses as possible as well as
re-examined the allocation that was being used for
expenses that could not be direct assigned .
When possible, expenses are applied directly to the
related program . Residential customer promotions
like engagement activities or email campaigns are
direct expensed to the residential program . As are
expenses for training webinars covering specific topics
like, “Whole House and Attic Ventilation,” where the
program relevance and applicability is apparent . The
Company also developed guidelines to directly apply
expenses as they occur, primarily driven by the audience
of the activity . Any expenses related to participation
or promotion in the Building Contractor Association,
focused on residential home building, is expensed to
the Residential Program . Commercial customer email
campaigns, as well as, promotional and educational
activities related with ASHRAE or AIA, whose primary
audience is engineers and architects, is expensed to
the Commercial Program . Community-wide events
are expensed to the residential program as that is the
primary audience .
Labor is the largest expense that could not be direct
assigned . The Energy Efficiency Portfolio, which includes
both the Residential and Commercial Program, is
delivered and administered by all EE staff, no team
member works exclusively on either the Commercial
or Residential program . This is true for both full time
energy efficiency employees and the ESR team . ESRs
engage in business development for both the residential
and commercial sector and also promote the relevant
energy efficiency program to those customers . This has
allowed the Company to leverage the expertise and
flexibility of the team to promote and educate about
either program as the opportunities arise, creating a
one-stop-shop for customers .
While efficient, this model of program delivery does
present some challenges in the ability to directly apply
expenses as they occur . The main challenge to direct
assigning expenses is the administrative time required
to do so . The following examples demonstrate why
labor expenses are more difficult direct expense . ESRs
out in the field take a phone call from a commercial
customer in-between visiting a residential customer
and a developer . Rather than referring the customer
to another contact, they are able to respond to the
customer at that point and time . Program promotion at
Chamber of Commerce events is an audience primarily
related to business, and expenses related to this event
would on the surface apply to the commercial program,
but it is not uncommon to also field questions about
the residential program as attendees are often also
Intermountain residential customers . The Company may
spend time with a vendor designing and negotiating ad
placement for an ad campaign for both the commercial
and residential programs, and while the specific ads can
and are direct assigned to the appropriate program,
expenses for the labor spent developing the general
campaign are more difficult to isolate by program . For
these reasons, the Company focused on applying the
appropriate allocation ratio to shared expenses .
Expenses related to travel, training, meals and
lodging are much smaller than labor and are primarily
investments in activities that cover both commercial
and residential topics . Training webinars with AESP, for
example cover general program administration topics
like program outreach or EM&V, that are relevant to both
Programs . Emerging Technology Program (ETP) member
meetings with the Gas Technology Institute-Energy
(GTI) and the Energy Solutions Center also cover both
residential and commercial equipment and technology
discussions .
INTRODUCTION
2022 ANNUAL REPORT 5
Promotional items (like pens, pencils, banners) are
branded with Intermountain Gas Energy Efficiency logo,
which does not specify commercial or residential, and
the web address used on promotional items points to
a webpage that references both the commercial and
residential program so that these items can be used
for both residential and commercial events . See Figure
1 and 2 . This has allowed the Company to leverage
price breaks for ordering greater quantities and
avoiding additional set up fees, rather than ordering
and managing individual program specific materials
and promo items . Booth kit items like tablecloths are
used for both commercial and residential events and
professionally laundered on an as needed basis, rather
than a per event basis . Rather than maintain and
manage two inventories of promotional items for each
program, there is only one stock of inventory . Meetings
about energy efficient technologies, like gas heat pumps,
consist of commercial and residential sector applications
together .
The Company also re-evaluated the allocation that
was being used for expenses that could not be direct
assigned . When the Company launched the Commercial
Program in 2021, Intermountain used an 80/20
expense allocation, 80% of expenses to the Residential
Program and 20% to the Commercial Program . Without
any history on which to base an expense allocation,
the allocation was based on the 2018 Conservation
Potential Assessment estimate that attributed 80%
of potential savings to the Residential Program and
20% to the Commercial Program . The uptake of the
Commercial Program was much slower than anticipated .
For this reason, and based on Staff recommendation,
the Company prioritized re-evaluating the expense
allocation . Seeking a way to track the activities, or labor,
of the ESR team, the Company conducted an analysis
of service starts recorded in Construction Tracking . In
2021 there were 11,983 residential service starts and
568 commercial starts or a 95% and 5% split between
residential and commercial activity . Assuming secured
therm savings also reflect the effort, or labor, applied
to promotion and rebate processing, program delivery
and administration also very closely reflected the
residential/commercial split witnessed in the analysis
of service starts . Total estimated therm savings for the
Energy Efficiency Portfolio were 652,650 therms: 615,806
attributed to the Residential Program and 36,844 from
the Commercial Program, or a 96/4 split between the
two programs . Since service starts represented actual
activity, or labor, the largest program expense, any
expense that could not be direct assigned was allocated
on a basis of 95% to the residential program and 5% to
the Commercial Program . As the Portfolio grows to a size
where the Company can afford separate staff dedicated
to each program, the Company will begin to directly
assign labor costs for program-specific employees .
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 .
Figure 2. Branded pen and pencil samples
Figure 1. Webpage referencing the commercial and residential programs
6 SECTION TITLE
The Residential Energy Efficiency Program is funded by
the Energy Efficiency Charge (EEC-RS) rider, a monthly
per therm charge to residential customers . As of June
30, 2022, the Company had an over-collected EEC-RS
Program balance of $4,893,882 . The over-collected
balance resulted from: 1) actual therm sales higher than
the forecast used to calculate the current EEC-RS, and
2) the entire, then-current, under-collected balance of
$1,097,907 was included in the determination of the
EEC-RS rate rather than amortizing the balance over
time . Additionally, the large revisions to the Residential
Program that went into effect April 2021 changed
the rebates and rebate amounts upon which the
previous forecast was based . To reduce the $4,893,882
over-collection, the Company completed a one-time
customer refund of $4,850,000 of the over-collected
balance . In addition, to more accurately match on-
going revenues with expenses, the Company filed
to decrease the residential EEC rate . On October 1,
2022, the EEC was reduced from $0 .02093 per therm
to $0 .01564 per therm . The Company will continue
to monitor fluctuations in the rider balance to keep
rates as stable as possible and avoid excessive over
or under collections balances . Table 1 provides
detailed information on the 2022 Rider balance .
Residential Energy
Efficiency Program
In this section, 2022 performance, cost-
effectiveness, and lessons learned will be covered
for each rebate . Program outreach and promotional
activities by target audience are also included .
Cost-effectiveness testing was conducted on all rebates
paid in 2022 . 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 .3 . The
TRC benefit-to-cost ratio was 0 .4 . With the exception
of the furnace incentive, all of the residential rebates
were either revised or new to the Program starting April
2021, therefore year to year rebate counts reported here
compare 9 months of 2021 to the full 12 months of 2022 .
RESIDENTIAL ENERGY
EFFICIENCY PROGRAM
Table 1. 2022 Residential Rider Balance
Revenue $5,738,001
Program Expenses
Residential Rebates $2,555,389
Labor 618,141
Program Delivery 27,185
Special Studies
Market Transformation 23,750
Direct Expenses 47,179
Total Program Expenses $3,271,644
2022 Rider Deferral
Over/(Under) Collection $2,466,357
Prior Year Rider Balance
Over/(Under) Collection $2,834,164
Residential Rider Refund
$(4,850,000)
Rider Account Balance
Over/(Under) Collection $450,521
2022 ANNUAL REPORT 7RESIDENTIAL ENERGY EFFICIENCY PROGRAM
Residential Rebates
Whole Home Tier I Incentive
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 Company received 1 qualifying application for this
incentive during the 2022 Program Year . There were
no qualifying Whole Home Tier I rebates paid in 2021 .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .3 . The TRC ratio was 0 .6 .
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
There were 1,399 rebates paid for this incentive,
compared to 263 in 2021 . The measure was cost-
effective under the UCT analysis, with a benefit-
to-cost ratio of 1 .3 . The TRC ratio was 0 .5 .
Builders are also able to “stack-on” rebates for
qualifying smart thermostats and water heaters to
the Whole Home Tier I or Whole Home Tier II rebate .
Of the 1,400 Whole Home rebates issued in 2022, 716
had at least one qualifying stack-on rebate issued .
To simplify certification of energy performance targets,
Intermountain leveraged the HERS Index rating system,
which measures the same energy performance
targets required for the rebate as for a HERS rating .
HERS ratings are also verified by an independent,
accredited third party home energy rater . Although
a HERS rating is required for Whole Home I & II, the
Program does not have a HERS Index score threshold
requirement . Since measures that do not impact
therm savings can be implemented to achieve a HERS
Index threshold, the Whole Home rebates instead
target the space and water heating equipment and
related home energy performance like air change per
hour (home tightness) and duct leakage limits that
impact therm usage . Another benefit of requiring
a HERS Index score is the fact that the HERS score
is an easy way for a homeowner or home buyer to
compare the energy efficiency performance of a home,
much like a miles-per-gallon comparison of a car .
Table 2. 2022 Residential UCT Results
Residential Program
Rebate Therm Savings
Annual
Therm Savings UCT Benefits UCT Costs UCT Ratio
Whole Home Tier I 161 161 $1,265 $990 1 .3
Whole Home Tier II 128 179,072 $1,407,149 $1,105,571 1 .3
Furnace - 95% AFUE 87 273,876 $1,868,195 $1,385,933 1 .3
Combination Boiler - 95% AFUE 155 930 $6,753 $5,342 1 .3
Boiler - 95% AFUE 159 795 $6,247 $4,451 1 .4
Storage Water Heater 38 1,216 $6,036 $6,568 0 .9
Tankless Water Heater Tier I 65 37,050 $291,139 $236,697 1 .2
Tankless Water Heater Tier II 58 870 $6,836 $5,854 1 .2
Smart Thermostat 44 121,836 $529,128 $521,434 1 .0
615,806 $4,122,748 $3,272,840 1.3
8
Lessons – Whole Home Tier I & II
Upon implementing these energy performance targets
it was previously thought the building process change
required to meet the ceiling insulation requirement
or air change per hour (ACH) target might be the
biggest hurdle to builder participation . Instead,
feedback from home energy raters indicated on-
going supply chain issues impacted the availability
of high-efficient equipment in 2022 often preventing
builders from meeting the 97% AFUE furnace
equipment requirement of Whole Home Tier I . One
rater reported wait times in excess of 12 weeks . This
seemed to match analysis of Whole Home applications .
There were 132 Whole Home applicants that did not
meet the higher Whole Home Tier II rebate amount
because they did not meet the 97%AFUE furnace
requirement . Three other Whole Home II applicants
did not meet Whole Home Tier I requirements due
to either ACH or attic insulation requirements .
Furnace Incentive
The furnace incentive provided 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 3,148 furnace
rebates were issued by the Company, an increase
compared to 2,704 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 40% of the
total number of rebates issued . New construction
homes accounted for 50% of all furnace rebates .
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 5 rebates
issued in 2022, compared to 3 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 promote
efficient space heating when installation of a standard
furnace or combination boiler ins not an option .
Combination Boiler – 95% AFUE Incentive
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 6 incentives issued in 2022 .
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 offering is for a specific piece of equipment used
for both space and water heating, and as such lacks
awareness and may be limited by size and capacity
to specific instances where it can do both jobs .
Smart Thermostat Incentive
The smart thermostat incentive provided
residential customers a rebate of up to $100 for
the installation of an Energy Star Certified smart
thermostat . There were 2,769 rebates issued during
2022 . There were 596 rebates issued in 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
This incentive makes up approximately 35% of the
total residential rebate count . Of the 2,769 rebates
approximately 57% are installed at new construction .
Storage Water Heater Incentive
The storage water heater incentive provided residential
customers a $115 rebate for the installation of a
storage water heater with a minimum efficiency
rating of 0 .68 UEF . A total of 32 rebates were issued
during 2022, compared to 12 rebates in 2021 .
2022 ANNUAL REPORT 9
The incentive was not cost-effective under the
UCT analysis, with a benefit-to-cost ratio of 0 .9 .
The incentive 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
but may lack awareness and availability . This information
was shared with ESRs to help raise awareness about
this new option . New construction accounted for
81% of storage water heater rebates issued .
Tankless Water Heater Tier I Incentive
The Tankless Water Heater Tier I incentive provided
residential customers a $325 rebate for the installation
of a condensing tankless water heater with a minimum
efficiency of 0 .91 UEF . There were 570 rebates paid
in 2022, compared to 142 incentives paid in 2021 .
The incentive was cost-effective under the UCT analysis,
with a benefit-to-cost ratio of 1 .2 . It was not cost-effective
under the TRC analysis, with a benefit-to-cost ratio of 0 .3 .
Tankless Water Heater Tier II Incentive
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 There were 15 rebates issued
in 2022, compared to 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 .2 . 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 continues to increase . New construction
accounted for 75% of all Tier I Tankless Water Heater
rebates, compared to 49% in 2021 . An increasing
number of builders and consumers are choosing high-
efficiency water heating options . Like most equipment,
installation of a tankless water heater is often easier
in new construction than in a retrofit situation .
Tier II – Uptake of this rebate has been slow . The
decision to offer an additional water heating incentive
at a lower efficiency was based on the recommendation
from the EM&V and the EESC . Low uptake may be
an indication that the difference between the initial
purchase price of a Tier I and a Tier II tankless water
heater is 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
In addition to growing participation in the rebate
program to secure cost-effective savings the Company
also strives to embrace efficiency in its processes .
To improve rebate validation and streamline rebate
payment processing with internal systems, the
Company participated in a major project to develop
a rebate processing application (rebate app) . Rather
than purchase a third-party product with a likely on-
going subscription use fee, that might not adequately
meet Program needs, the Company embarked on a
development project with the in-house Enterprise
Information Technology (EIT) department to develop
the rebate app . This user interface will allow the
Company to validate customers, build and maintain
customized libraries of the most frequently rebated
equipment brands and models, builders, contractors,
and home raters . Once rebate applications are entered
and validated, the rebate app will streamline payment
approval, and payment processing, record keeping
of payment and storage of support documents,
such as the rebate application, invoices, pictures,
and notes . Phase I, or the back-office process of the
rebate app, is expected to complete in 2023 . The
Company anticipates beginning work on Phase II of
the rebate app, which will be the customer facing
component that will enable customers to apply for
rebates from their online customer account late 2023 .
RESIDENTIAL ENERGY EFFICIENCY PROGRAM
10
Energy Efficiency Team
Energy Efficiency continued its partnership with
Energy Services Representatives (ESR) to provide a
one-stop-shop experience for builders, contractors,
and customers . Since EE and ESRs pursue the same
audiences, rather than duplicate efforts, energy
efficiency leverages the ESRs daily interactions with
builders, developers, contractors, and customers
to promote energy efficiency . ERSs also participate
in community events like builder contractor
association events, chamber of commerce, and
industry trade shows to promote energy efficiency .
The EE team received valuable feedback from the
field by the ESRs . Through their feedback EE is able
to keep a finger on the pulse of energy efficiency in
the service territory, such as trends in attitudes about
energy efficiency, frequently asked questions about
equipment or about the Program, and any barriers to
participation . This allows EE to better identify areas
for improvement as well as gauge general awareness
about energy saving opportunities within these
customer groups . The monthly check-in meeting
provided an excellent opportunity for this kind of
information sharing, as well as any Program updates .
The EE and ESR team came together for an in-
person training meeting for the first time since
2019 . The meeting agenda was shared with Business
Development to cover the energy efficiency topics
of today and tomorrow . Energy efficiency topics
ranged from a review of current equipment and
new construction rebates to the role of energy
efficiency for a decarbonized future . Emerging
technologies discussion included a brief presentation
from a gas heat pump manufacturer . The group
also brainstormed additional outreach methods
and opportunities for EE and the ESR teams .
The group identified IGC employees as one of the
most under-utilized means of outreach to raise
awareness about the Program . As a result, the ESRs
conducted a brief presentation about the EE Program
at the monthly employee safety meeting in each of
their respective districts . The presentation had a
two-pronged approach: to raise awareness of the EE
Program with employees, encouraging them not only
to take advantage of the Energy Efficiency Program
for their own home but to also share energy saving
opportunities with friends and family, and to provide
EE awareness to employees who also encounter
customers in their day-to-day duties, but do not
have official EE duties . The EE team also conducted
an employee awareness campaign which will be
covered in detail in a later section of this report .
2022 ANNUAL REPORT 11
Energy Efficiency Outreach
and Education Activities
In 2022, the EE Program focused outreach efforts by
audience: employees, new and existing customers,
builders and the home buying community, kids,
business community and the community at large .
Outreach efforts varied from social media to
email campaigns as well as attending community
events and specific event sponsorships .
Employees
To raise awareness about the Energy Efficiency Program
with employees, EE conducted an email campaign over
a period of three weeks . Employees were asked to
take an Energy Efficiency quiz and were entered into a
drawing for 1 of 3 $25 gift cards in exchange for their
participation, regardless of quiz results . Quiz questions
focused on both Residential and Commercial Programs,
available equipment rebates, where to find information
about rebates, deadlines for applying for rebates, and
the purpose of the Energy Efficiency Program . About
100 employees participated in each round of the three
rounds of the Energy Efficiency quiz . While almost all
respondents correctly identified the purpose of the
program, to help customers save energy and money
and to visit the website for information about rebates,
respondents incorrectly identified high-efficiency
windows as a program rebate . Fortunately, after each
quiz response, correct answers were revealed to
confirm right answers, or remedy wrong answers .
Customers
To ensure all customers are aware of the Energy
Efficiency Program, a Program brochure was included
with each new customer letter . These letters are
sent to customers that start new gas service for the
first time, as well as customers that have changed
locations . There were 33,333 energy efficiency
brochures sent with new customer letters in 2022 .
The Company also maintains a presence on social
media, dedicating a monthly post to an energy
efficiency topic . Energy Efficiency also uses
social media to promote special engagements
like the “Hungry for Savings” sweepstakes or
energy efficient homes featured in the Parade of
Homes . Sample posts are shown in Figure 3 .
Energy Efficiency also conducted its annual customer
engagement activity in conjunction with the annual bill
insert . The 2022 bill insert/customer engagement theme
was “Hungry for Savings?” A bill insert, shown in Figure
4, was sent with all paper bills and a digital version was
included for all online bill payers . The insert provided
the list of all residential rebates and information about
the Home Energy Rating System (HERS), the energy
efficiency score of a home which is also a requirement
of the new construction Whole Home rebate . The
insert also encouraged customers to take an energy
efficiency quiz to be entered into a drawing for a $100
grocery gift card . The quiz consisted of three True/
False questions about home energy usage . Upon
Figure 3. Social Media Samples
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Figure 4. 2022 Residential Bill Insert
12 RESIDENTIAL ENERGY EFFICIENCY PROGRAM
Intermountain Gas
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providing a quiz answer, along with the correct answer
a related energy efficiency tip was revealed . These tips
focused on ways to save energy other than equipment
replacement such as easy, Do-it-Yourself projects
like checking air filters, fixing water leaks and sealing
window and door leaks . Customers that completed
all three quiz questions were automatically entered in
the grocery card sweepstakes, regardless of whether
quiz responses were correct . Ninety-five percent of
responses were correct on all three questions .
To promote the “Hungry for Savings” campaign, in
addition to paper bill inserts with each residential
bill, 211,248 customer emails were sent, and the
campaign was promoted on Facebook, Figure 5 . The
email campaign had an open rate of 60%, a click thru
rate of 10% and over 27,000 page views . Overall, the
campaign resulted in over 12,000 energy efficiency quiz
participants, which far outpaced the best response
rate of approximately 6,000 customer responses to the
2019 engagement activity . There was also a significant
increase in web activity during the month of the bill
insert, as measured by web Analytics, Table 3 .
To attempt to gage the effectiveness of outreach
methods, there is a question on the rebate application,
“How did you hear about the Program?” “Equipment
Dealer/Installer” is the most frequent response
to this question and was removed from Table 4 to
focus on the increase in the following categories
after the October bill insert/customer engagement
activity: bill insert, direct mail (email), social media,
and website . There was also an increase in rebate
applications after the bill insert/customer engagement
activity in October 2022 . Table 4 and Table 5
provide a visual representation of this analysis .
Figure 5. Social Media Customer Engagement
Table 3. 2022 Web Analytics for October Engagement
2022 ANNUAL REPORT 13
Table 4. “How did you hear about the Program” Responses
Table 5. Rebates Received post October Customer Engagement
14 RESIDENTIAL ENERGY EFFICIENCY PROGRAM
Builders and the Home
Buying Community
This was the first full year of the Whole Home Tier I and
Tier II rebate offering, as 2021 was a transition year of
retiring the Energy Star Certified Home requirement
and implementing the energy performance target
requirements for the revised Whole Home Tier I & II .
Partnering with the Building Contractor Associations
(BCA) continued to be one the best outreach methods
to promote the Program with home builders and home
buyers . The Company is a member of five regional
BCAs across the service territory as well as the state
organization, the Idaho Home Builder Association
(IHBA) . To leverage the attendance of BCA members
from across the state all in one location, Intermountain
hosts an information table at the state conference to
raise awareness about the Program . In fact, a Whole
Home builder new to the Program in 2022 noted
“IBCA meeting” on their participation agreement
regarding “how did you learn about the program?”
All five BCAs essentially operate in the same way,
with similar events . Participation on the Associate’s
Council, a committee of non-builder members, provided
networking opportunities with “builder adjacent”
industries such as HVAC contractors, real estate agents,
home lenders, home energy raters and appraisers .
Three signature BCA events provided the most direct
access to builders, the decision makers when it comes
to implementing energy efficiency measures in new
construction, the builder expo, shown in Figure 6, the
Parade of Homes, and the annual golf tournament .
The builder expo is a mandatory event for builders
participating in the Parade of Homes (Parade, POH)
and provided an opportunity for Intermountain to
promote energy efficiency for homes featured in the
Parade of Homes . This event allowed for one-to-one
conversations with builders about the Energy Efficiency
Program . Since different builders participate in the
Parade each year, this is an opportunity to reach
new builders each year . At one builder expo, half of
the builders in attendance were learning about the
IGC Energy Efficiency Program for the first time .
The Parade of Homes is an excellent opportunity to
engage with energy efficient builders, as well as the
home buying community, about home energy efficiency .
The energy efficient features of a home, let alone a
show home, aren’t something one can easily observe
like granite countertops or a spacious kitchen . Due
to the difficulty of highlighting energy efficiency, it is
often an overlooked attribute of the home . In 2022, the
Company partnered with Parade builders who earned
IGC rebates and provided signage and informational
materials to be shared with POH visitors . Signs
highlighting energy efficient equipment in the home and
a HERS certificate, see Figures 7 and 8, were displayed
with the home’s HERS score and energy savings
estimate . One builder even replicated these signs and
placed them in all their model homes to raise awareness
about energy efficient equipment installed in all their
model homes . In Eastern Idaho, during the highest
traffic times, the Company hosted an information table
in the garage space of a parade home to be available
to answer questions and promote the energy efficient
aspects of the home with Parade home visitors .
Figure 6. Building Contractor Builder Expo Event
Figures 7 & 8. :Energy Efficiency Signage in Parade Of Homes
2022 ANNUAL REPORT 15
The Company placed a full-page ad focused on
home energy efficiency in five Parade magazines
across the region, with regional distribution counts
of 8,000 magazines in Eastern Idaho and Magic
Valley each and as high as 63,000 magazines in
Canyon County and 132,000 in Ada County, not
including visits to the digital magazine version . For
the two BCAs that track POH visitors through ticket
sales, they reported approximately 15,000 visitors
to parade homes in their respective events .
Since builders are busy building homes, they do not
typically attend general membership meetings, however
they do tend to participate in BCA golf tournaments . The
Company continued this successful builder outreach
avenue by sponsoring a golf hole at annual BCA golf
tournaments, see Figure 9 . Each team visits every hole
as they progress through the tournament . As a hole
sponsor the Company was provided an opportunity
to visit with each golf team and promote the Energy
Efficiency Program . The Company hosted energy
efficiency themed golf games to raise awareness about
the Energy Efficiency Program, such as the speed hole,
giving a prize to the most “efficient” team . This outreach
approach provided an opportunity to expand outreach
to more BCA builders beyond the smaller group of
Parade builders who attend builder expo events .
In 2022, there were 61 builders who received at least
one Whole Home rebate, this number was up from 21
participating builders in 2021 . Of the 61 participating
builders, 13 were returning builders who received at
least one rebate in 2021, resulting in 48 new builder
participants in 2022 . Builders also have the opportunity
to stack on water heating and smart thermostat
rebates to the Whole Home rebate . Restructuring of the
Whole Home incentive and estimated therm savings
did not include high efficient water heating options or
a smart thermostat . In order to capture these therm
savings in new construction, water heating and smart
thermostat incentives are allowed to be combined with
the Whole Home incentive . In 2022, 49 builders opted
to maximize savings by adding on either a water heater
or smart thermostat, compared to 14 builders in 2021 .
Contractors are also valuable partners in energy
efficiency when it comes to Program awareness and
education with customers . Equipment Dealer/Installer
is the most frequent customer response on the rebate
application question “How did you hear about the
program?” Most contractor outreach is accomplished
through industry adjacent events like BCA events,
AIA, ASHRAE, industry trainings and through ESRs
daily interaction with contractors . In 2022 there were
164 contractors identified on rebate applications, an
increase from 96 the previous year . Sixty-five of the
contractors were considered returning, and 99 were
considered “new,” or 2022 was the first time they
were the contractor on record for the Program .
The real estate community is another home-builder-
adjacent industry that provides another industry for
energy efficiency to partner for raising awareness
about home energy efficiency . While real-estate
licensing and certification have their own continuing
education program regarding “green building” or
home energy efficiency, the Company continues
to reach out to the real-estate community to raise
awareness about energy efficient homes in the
Intermountain Gas service territory . For the first time
in 2022, Energy Efficiency sponsored breakfast at
the Boise Regional Realtors Economic Summit, which
included an opportunity to share Program brochures,
conference attendance, and sponsor promotion at
the beginning of the conference, see Figure 10 .
Figure 9. Energy Efficiency Golf Hole Sponsorship Figure 10. Boise Regional Realtors Economic Summit Sponsorship
16 RESIDENTIAL ENERGY EFFICIENCY PROGRAM
Community
In addition to promoting energy efficiency with
specific target audiences, the Company promoted
energy efficiency with the community at large, with
kids, and with the business community . The Company
participated in the Buy Idaho Show at the Capitol,
a free show open to the public to showcase Idaho
products . At events like the Capitol Classic, a fun
run for parents and kids, and the Meridian Public
Works Expo, Figure 11, the Company incorporated
kid-friendly handouts like energy-saving themed
coloring books, Figure 12, to promote easy ways
to save energy at home and answered questions
about saving energy . Events with membership
organizations like the Chambers of Commerce provided
opportunities to reach out to the business community
by hosting information tables at the Boise Metro
Chamber golf tournament, the Leadership Boise golf
tournament, and the Meridian Chamber State of the
City annual event, as well as the Pocatello Chamber
Law Enforcement Appreciation BBQ, Figure 13 .
Figure 11. Meridian Public Works Expo Info Table
Figure 12. Energy Efficiency Coloring Book Sample
Figure 13. Pocatello Law Enforcement Appreciation Community BBQ
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2022 ANNUAL REPORT 17COMMERCIAL 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 2022 . 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 $463,938 . In 2022, the
Company paid out $503,147 directly to customers
in the form of incentive rebates . Table 6 provides
full details of the 2022 Commercial Rider balance .
In this section, 2022 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, as an entire portfolio,
was cost-effective under the UCT analysis, with
a benefit-to-cost ratio of 2 .0 . The portfolio was
also cost-effective under the TRC analysis, with a
benefit-to-cost ratio of 1 .8, as shown in Table 7 .
Table 6. 2022 Commercial Rider Balance
Revenue $472,346
Program Expenses
Commercial Rebates $53,147
Labor 32,534
Program Delivery 2,321
Special Studies
Market Transformation 1,250
Direct Expenses 3,745
Total Program Expenses $92,997
2022 Rider Deferral
Over/(Under) Collection $379,349
Prior Year Rider Balance
Over/(Under) Collection $84,589
Rider Account Balance
Over/(Under) Collection $463,938
Table 7. 2022 Commercial UCT Results
Commercial Program
Rebate Therm Savings
Annual
Therm Savings UCT Benefits UCT Costs UCT Ratio
Condensing Unit Heater 409 -$-$--
Boiler Rest Control 1,212 -$-$--
High-Efficiency Condensing Boiler 1,295 9,064 $71,225 $18,710 3 .8
Fryer - Energy Star Certified 508 9,652 $44,949 $17,214 2 .6
Steamer - Energy Star Certified 1,054 -$-$--
Griddle - Energy Star Certified 76 -$-$--
Energy Saving Kit 53 18,128 $66,597 $56,168 1 .2
36,844 $182,771 $92,092 2.0
COMMERCIAL ENERGY
EFFICIENCY PROGRAM
18
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 2022 .
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 2022 .
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 7 rebates in 2022 . Two of
the rebated boilers were in the healthcare sector,
and the other five in the education sector .
The incentive was cost-effective under the UCT
analysis, with a cost-effectiveness ratio of 3 .8 . The
incentive was also cost-effective under the TRC
analysis, with a cost-effectiveness ratio of 2 .0 .
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 19 rebates during 2022 .
The incentive was cost effective under the UCT
analysis, with a cost-effectiveness ratio of 2 .6 . The
incentive was also cost-effective under the TRC
analysis, with a cost effectiveness ratio of 15 .2 .
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 received no applications for
the installation of this piece of equipment in 2022 .
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 no applications for
the installation of this piece of equipment in 2022 .
Energy Saving Kits
In order to jump start awareness building about the
Commercial Energy Efficiency Program, the Company
offered complimentary energy savings kits (ESK) to
commercial customers . The kits contained easy to
install Do-It-Yourself devices: kitchen faucet aerators (2),
bathroom faucet aerators (2), a pre-rinse spray valve,
pipe tape and a digital water heater thermometer . The
Company started with 350 ESKs . At the end of 2022,
348 of the 350 kits were placed with customers . The kits
were cost effective with a UCT of 1 .2, and a TRC of 1 .1 .
This measure was a pilot program offered until all kits
were placed . Rather
than carry the offering
into another Program
year, the Company
ended this offering
December 31, 2022,
with two kits remaining
in stock . These two kits
were charged to the
promotional budget
and no savings were
attributed to these
kits . See Figure 14 for a
sample of Commercial
Energy Efficiency email .
Figure 14. Commercial Customer email
2022 ANNUAL REPORT 19
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 . There is equipment readily available
in the market called High Temperature Heating and
Ventilation (HTHV), that does not require condensate
collection . The Company will explore the energy
saving potential of this equipment in the next CPA .
Contractor and customer feedback indicated that the
Program lacks offerings for small/light commercial
customers . These customers are on the commercial rate,
but usage is smaller and may not require a 300K Btu/h
boiler, but smaller sized equipment such as a forced
air furnace or water heater . The Company will address
the potential for energy saving opportunities in the
“light/converted” commercial sector in the next CPA .
The Company is still learning about its customers, their
interest in energy efficiency and more importantly
getting energy efficiency messaging to the right
audience . Unlike the Residential Program where it is
relatively easy to reach out directly to the decision
maker, the homeowner, it is not as easy in the
commercial sector . Although Intermountain has a
customer contact on file, the commercial customer
contact on record isn’t necessarily the person who
manages equipment for the company or is familiar with
building equipment . This sentiment was echoed in EESC
feedback indicating commercial customers aren’t always
familiar with the equipment they have on site or what
equipment might be eligible for an energy efficiency
upgrade . The Company has identified that the next
step to make communications more effective will be to
identify building operators or facility managers who are
more familiar with building equipment and operations .
Gas usage by commercial customers varies greatly
by commercial sector . In order to tailor messaging
to customers, the Company created a customer
database to assign Standard Industrial Classification
(SIC) codes, a U .S . government code used to identify
the primary business purpose, to commercial
customers . This information will allow the Program
to customize communications by sector .
Like the Residential Program, contractors and installers
play a key role in promoting energy efficient options .
And, like the Residential Program, while savings
opportunities exist in the equipment replacement
market, considerations regarding energy efficiency are
also important in the design phase . For this reason, the
Company also implemented several outreach efforts
to engineers and architects in the commercial sector .
20 COMMERCIAL ENERGY EFFICIENCY PROGRAM
Commercial Program Outreach,
Awareness and Education
Intermountain continued outreach to commercial
customers through traditional means such as bill
inserts, emails, and bill onserts, see a sample onsert in
Figure 15 . Promotional messaging sent to commercial
customers about the Rebate Program was combined
with offers for a complimentary ESK to help raise
awareness about saving energy in commercial buildings .
The Company also sent a Commercial Program brochure
as a bill insert and utilized an onsert (promotional
message on the utility bill), to promote the Program .
The Company also experimented with customized
messaging by purchasing a restaurant mailing list for
restaurants in the Intermountain service territory . Over
2,300 postcards, Figure 16, were sent to raise awareness
about rebates for commercial kitchen equipment .
It appears that almost every industry organization,
or at least those in the Company’s target audiences,
hosts a golf tournament . The Company attempted to
duplicate the success this outreach method provided
the Residential Program, with industry partners in the
commercial sector . Intermountain sponsored golf holes
with two industry partners in the commercial design and
engineering space: Association of Architects-Idaho (AIA),
Figure 17, and the Idaho Chapter of the American Society
of Heating, Refrigerating and Air-Conditioning Engineers
(ASHRAE) . These events provided opportunities
for one-on-one conversations with industry
participants about commercial energy efficiency .
Intermountain was also a conference sponsor, Figure
18, with AIA and ASHRAE . Sponsorship benefits not
only included educational opportunities for the Energy
Efficiency team through conference attendance, but
also offered an opportunity to host an information
table to visit with conference attendees . These two
types of events provided excellent opportunities to
raise awareness about the Commercial Program, as
the Program continues to be in an awareness building
mode, and the chance to network and leverage
industry relationships in the commercial space .
Figure 15. Commercial Customer bill Onsert
Figure 16. Commercial Food Service Mailer
Figure 18. Energy Efficiency ASHRAE Technical Conference SponsorshipFigure 17.ASHRAE Golf Hole Sponsorship
2022 ANNUAL REPORT 21
The Company combined efforts to raise awareness
about the Commercial Energy Efficiency Program with
market transformation efforts to increase adoption of
gas heat pump technology . Currently, only commercial
gas heat pumps are available for purchase . To raise
awareness about this technology and availability, the
Company promoted a free gas heat pump webinar
hosted by the Energy Solutions Center (ESC), to
industry partners in the commercial sector, Figure
19 . Intermountain provided a unique link to track
attendance by member organization, and all attendee
data and post webinar surveys were collected by ESC
and shared with ESC members . The first webinar was
held in May and was promoted by Intermountain to
all HVAC contractors (both residential and commercial
since most HVAC serve both sectors) participating
in the Energy Efficiency Program, which is to say any
contractor ever identified on a rebate application . Two
HVAC contractors accessed the May webinar through
the Company’s invitation link . ESC hosted an additional
webinar in November 2022 . Intermountain again
promoted the program to all HVAC Program participants,
but also shared this opportunity with contacts
established through participation in AIA and ASHRAE .
Both organizations sent invitations to the gas heat pump
webinar to their full membership . At the November
webinar, there were thirty-four customer (non-utility)
attendees and nine utility attendees attributed to the
Company’s invitation link . Additional details regarding
webinar take-ways will be provided later in this report .
The Company continues to seek out new and
additional audiences to raise awareness about the
Commercial Program in this awareness building
mode . The Company placed advertisements in
the Construction section of the Idaho Business
Review Book of Lists, Figure 20, and continues to
reach out to other industry related organizations
like the Idaho Lodging and Restaurant Association
and Food Agricultural Restaurant Association .
Program outreach activities have been met with mixed
success . The Company tracked website visits as an
indicator of activity effectiveness . Table 8 illustrates
increased activity on the Commercial Program webpage
after commercial customer emails were sent in July and
December . There was a slight increase in web activity
after sending the restaurant mailer in September
2022, which promoted commercial kitchen equipment
rebates and a commercial kitchen savings calculator .
The Company has identified two areas to improve the
effectiveness of commercial outreach activity: proper
audience and education . The Commercial Program was
promoted via email communications to the commercial
customer account contact on record . These contacts
are often responsible for the administration of the
account, such as account payment, but may not be the
building operator or physical plant manager . Other
industry partners have indicated that identifying and
reaching the building operator or resident equipment
manager is a universal challenge in this space . In
addition, the customer’s knowledge about their
own equipment can also be a challenge . In a very
specific example, from EESC stakeholder meeting
feedback, one customer indicated that while they are
receiving the Program energy efficiency messaging,
Figure 19. ESC Gas Heat Pump Webinar Invitation Figure 20. Commercial Program advertisement in Idaho Business Review
www.intgas.com
Build a better tomorrow.
Choose natural gas today.
Natural gas benefits our economy, homes, environment and future. Build a better tomorrow
with energy efficient buildings, high-efficient equipment and affordable, reliable energy. Choose natural gas. Learn about ways to save for your business at www.intgas.com/saveenergy.
22 COMMERCIAL ENERGY EFFICIENCY PROGRAM
just knowing the Company has a boiler rebate isn’t
enough information, stating, “I know we use boilers,
but I didn’t know it had to be certain size, or even how
boilers are sized, so I didn’t know if we would qualify .”
As a next step the Company has identified a plan
to identify and reach customer building operators
and facility managers with energy efficiency
messaging . Continuing to build a robust contractor
network, as well as Program awareness with
architects and engineers, who have the expertise
to field specific equipment questions for customers
will also be key to Program participation .
Intermountain Gas
Intermountain Ga Analytics Go to report
Page
Rows 1 - 1 of 1
Pages
ALL »PAGE: /energy-e ciency_program/commercial-energy-e ciency/Jan 1, 2022-Dec 31, 2022
Explorer
% of Total:0.04%(2,009,983)
780% of Total:0.04%(1,796,234)
00:02:30Avg for View:00:01:38(52.77%)
374% of Total:0.02%(1,504,595)
67.91%Avg for View:79.91%(-15.01%)
56.17%Avg for View:74.86%(-24.96%)
$0.00% of Total:0.00%($0.00)
1.883(100.00%)780(100.00%)00:02:30 374(100.00%)67.91%56.17%$0.00(0.00%)
 Pageviews
…February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022
505050
100100100
150150150
/energy-e ciency_program/commercial-energy-e ciency/
© 2023 Google
All Users0.04% Pageviews
Table 8. Commercial Website Activity
2022 ANNUAL REPORT 23
Intermountain conducted two meetings with the EESC
and one Avoided Cost Subcommittee meeting in 2022 .
On March 9, the Avoided Cost Subcommittee
(Subcommittee) met regarding the on-going discussion
regarding the possible inclusion of distribution costs in
the avoided cost calculation . There is a zero assigned as
a distribution cost placeholder in the current avoided
cost formula . The Company presented a brief history
on the Subcommittee’s work, before presenting a
proposed method to capture variable distribution costs .
The Company noted because utilities are unique and
there is no “one size fits all” solution or best practice of
capturing distribution costs, especially for gas utilities,
this remains a challenge to identify . Distribution costs
have the least impact on cost-effectiveness testing
but require significant effort to identify . After a robust
discussion about the proposed method to capture
distribution costs, the Company was asked to provide
the worksheets to the Subcommittee . Due to the fact
the method relied on confidential inputs; the Company
was asked to revise the method using publicly available
data instead of confidential plan data that could be
shared with Subcommittee . The Company revised the
distribution cost calculation and shared the new method
with the Subcommittee via email along with request
for questions and any further explanations of the
calculation . Further iterations and discussions did not
result in an agreed upon method to capture distribution
costs . The distribution cost component for avoided
costs continues to be a zero-value placeholder . The
Company will review the avoided cost calculation again
as part of its Integrated Resource Plan filing process .
The EESC met on May 5 and November 16, 2022 .
The May meeting focused on a recap of 2021
activities and rebate performance, as well as an
update on 2022 rebate performance . The Company
stated an interest in exploring a weatherization
kit program and fielded questions regarding cost,
cost-effectiveness, and suggestions to research
how other organizations in Idaho have handled
installation and deployment of similar programs .
The November meeting was an opportunity to provide
an update on rebate performance for the first three
quarters of 2022, as well as an overview of promotion
and outreach activities . The Company reported 143
of the 350 the Commercial Energy Savings Kits, a
complimentary savings kit for commercial customers
upon request, had been placed, with additional
ESK promotion planned for later in the year . The
Committee also discussed the slower uptake of
the Commercial Program and steps being taken to
increase awareness and participation in the program .
The Company stated plans to increase outreach
efforts with design engineer and architect industry
partners to continue to raise awareness about
commercial energy efficiency savings opportunities .
A synopsis of the Avoided Cost Subcommittee work,
and EESC meeting notes can be found in Exhibit 1 .
ENERGY EFFICIENCY
STAKEHOLDER COMMITTEE
24 ENERGY EFFICIENT STAKEHOLDER COMMITTEE
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:
• The Emerging Technology Program (ETP) is a
membership-based utility collaboration governed
by GTI Energy (formerly called Gas Technology
Institute) . The collaborations works to “accelerate
the commercialization and adoption of energy
efficient technologies,” and “provides expertise for
program planning, implementation and assessment
as well as tailoring initiatives to meet regional
needs, support pilots and custom programs .”1
• Intermountain Energy Efficiency continued
membership in North American Natural
Gas Heat Pump Collaborative (NAGHPC,
Collaborative) since joining as a charter member
in 2019 . The Collaborative is comprised of
17 dual fuel utilities and energy efficiency
program administrators, representing 33%
of all U .S . and Canadian gas households .2
• 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 .” Through corporate
membership, the Energy Efficiency team is an
active member of the Gas Heat Pump Consortium,
a member driven group whose objective is to
“prepare communication and marketing outreach
materials as well as studies and tools to alert and
educate end users, engineers architects, consultants,
installers, contractors and trade allies about
higher efficiency, lower carbon HVAC option .”3
The Intermountain Energy Efficiency team participated
in the Spring and Fall ETP meetings . These sessions
are dedicated to updates on the market readiness
status of emerging technologies, as well as the status
and outcomes of equipment pilot assessments and
demonstrations for residential and commercial
HVAC, water heating and commercial food service .
The Spring meeting provided an opportunity to
visit the GTI Energy End Use Lab designed to “foster
the development and advancement of natural gas
appliances and equipment, including improvements in
efficiency, safety, performance, cost and emissions .”
The Collaborative continued work to grow its
membership as well as its library of resources . In
addition to the NAGHPC Resource Report which
outlines the role of gas heat pumps in accelerating
decarbonization, the Collaborative also released four
additional documents for customers and contractors,
to aid in market adoption of gas heat pump technology:
a gas heat pump technology opportunity brief, a
residential HVAC opportunity brief, a residential HVAC
brief on installation considerations, and a gas heat
pump water heater consideration for installation . The
Figure 21. Collaborate Educational Collateral
1 Emerging Technology Program • GTI Energy
2 North American Gas Heat Pump Collaborative | Technology for a Cleaner Future
3 Energy Solutions Center | Accelerating Gas Fuel Technologies
2022 ANNUAL REPORT 25
opportunity brief highlights gas heat pump benefits
that are important to customers such as: heating
efficiencies up to 126%, superior performance in cold
climates, high reliability, and lower maintenance .
These resources and updates on gas heat pump
industry news live on the Collaborative website and
are publicly available . Another member-exclusive
deliverable produced by the Collaborative included a
Stakeholder Guide of gas heat pump talking points, to
allow members to communicate the benefits of gas
heat pumps . Participation in the Collaborative allowed
Intermountain to leverage the shared expertise of
the group and develop educational resources for
Intermountain customers and contractors, more cost-
effectively and without duplicating industry efforts .
The EE team is an active member of the ESC Gas Heat
Pump Consortium . As mentioned earlier in the report,
Intermountain partnered with ESC to offer two free
gas heat pump webinars . The webinar also provided
attendees an opportunity to earn 2 .5 professional
development hours . The webinar focused on an
overview of gas heat pumps, commercially available
gas heat pumps, other gas heat pump products and
potential savings from gas heat pumps . ESC surveyed
all webinar attendees to better understand how utilities
can help support the adoption of gas heat pumps .
The results of the survey are illustrated in Table 9 .
The November post-webinar survey also provided
valuable insights from webinar attendees:

These surveys provided confirmation the Company’s
gas heat pump investments are in line with the needs
identified by key industry players . The Company
will continue to address heat pump customer
education and awareness as well as installation
education for contractors, HVAC engineers and
designers to accelerate gas heat pump adoption .
The Company plans to continue to leverage the
collaborative work with industry experts like the
Emerging Technology Program, the Collaborative,
and ESC to accelerate gas heat pump technology
through the development of proven products,
marketing materials, and educational opportunities .

25 SECURING AN ENERGY EFFICIENT FUTURE
Customer rebates............................................43%
Additional “hands on” training.......................17%
Assistance to facilitate installation..................7%
Case studies of GHP installations..................17%
Contractor incentives......................................16%
How can Utilities support you with
the adoption of GHPs?
ESC GHP Webinar Survey Take-Aways
70%
60%
50%
40%
30%
20%
10%
0%
I need to start planning early for replacement, rather than wait until something fails
GHPs are not as new as I initially thought I learned a lot and need to investigate further if GHPs are right for my business
GHPs may be worth looking at when it’s time to replace HVAC equipment
There are a lot more GHP products that I was aware of
Table 9. Attendee Survey Responses after May 2022 Gas Heat Pump webinar, data provided by Energy Solutions Center
Table 10. Attendee Survey Reponses after
November 2022 Gas Heat Pump Webinar, data
provided by Energy Solutions Center
26 SECTION TITLE2021 ANNUAL REPORT 26
The Company strives for continual improvement and
opportunities to increase cost-effective savings for
Intermountain Gas customers in the ever-evolving
environment of energy efficiency . Industry partners,
collaborative efforts and an engaged and robust EESC
continue to be joint partners in this shared mission .
In order No . 35663, issued in case No . INT-G-22-03,
the Idaho Public Utilities Commission deemed the
2021 Program expenses as prudently incurred .
The Commission commended the Company “for
continuing to adjust its EE Program to deliver cost-
effective energy savings to customers, the collaborative
efforts of the Company, its EESC and Staff to provide
and maintain a DSM program that has value .”
In 2023, the Company will complete a Conservation
Potential Assessment with the purpose of both
providing inputs to the Integrated Resource Plan
and as a valuable resource for Program planning . An
updated transportation component of the avoided
costs will also be submitted as an exhibit to IRP filings,
aligning Program planning with the most recent IRP
filing as outlined in Order No . 35663 . In addition,
the Company will continue to direct assign expenses
between the Residential and Commercial Programs
and better explain when costs are not assignable .
The Company will also commission an independent
3rd party to conduct an impact evaluation of the
high-efficiency furnace and Whole Home new
construction measures based on billing analysis .
The Company continues to strive to secure cost-
effective savings for Intermountain Gas residential
and commercial customers, through traditional
methods of resource acquisition rebate programs
as well as working towards an energy efficient
future through market acceleration of energy
efficient technologies and equipment .
ENERGY EFFICIENCY: NEXT STEPS
Intermountain Gas Company
555 S Cole RoadBoise, ID 83709
Tel: [phone]
Fax: [phone]
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