20040305_768.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:LYNN ANDERSON
DATE:MARCH 2, 2004
RE:IDAHO POWER ADVICE # 04-, RESIDENTIAL AIR CONDITIONER
CYCLING PILOT PROGRAM
Through this tariff advice Idaho Power (the Company) seeks approval to modify the
manner in which it will conduct the second year of its two-year voluntary residential air
conditioner cycling pilot program (AC program). The original AC program was approved by the
Commission by Order No. 29207 issued March 17, 2003 in Case No. IPC-02-13.
In the first year ofthe AC program, Idaho Power installed programmable thermostats in
the homes of 200 residential volunteers. The Company also installed facilities which allowed it
to periodically control the thermostat set point or to cycle the air conditioner on either a
percentage basis or until a specified temperature was reached. Customers are paid $10 per
month for their 3-month participation each year. If customers opt out of the AC program before
completing their first 3-month obligation, they must either return the programmable thermostat
to Idaho Power or pay $100 for it. It was originally anticipated that 300 additional volunteer
customers would receive programmable thermostats in the second year of the AC program.
In this tariff advice the Company seeks to modify the program for 200 of the 300
customers to be added in the second year. Specifically, those 200 new volunteers would not
receive programmable thermostats, but instead would have direct load control switches installed
on their air conditioners. Idaho Power would then cycle their air conditioners via those switches.
In return for not receiving programmable thermostats these 200 customers would not be charged
if they decide to terminate their participation before participating for three months. All other
aspects of the program would remain unchanged from the original proposal.
DECISION MEMORANDUM MARCH 2, 2004
ST AFF RECOMMENDATION
Staff notes that in its comments filed in Case No. IPC-02-13 it encouraged the
Company to implement and evaluate multiple methods of cycling air conditioners and that in the
Order approving the AC program the Commission found that reasonable program modifications
proposed by Staff and the Northwest Energy Coalition
.. .
should be left to the discretion of Idaho
Power." Staff continues to believe that Idaho Power s evaluation of more than one method of
controlling air conditioners will provide valuable information that will help the Company in its
efforts to reduce its peak summer load. Thus, Staff recommends approval of the proposed AC
program modification.
Lynn Anderson
Corresp/dmemos/advO40 1.ac program
DECISION MEMORANDUM MARCH 2, 2004