Idaho Public Utilities Commission approves Idaho Power efficiency expenses

The Idaho Public Utilities Commission (PUC) recently reviewed Idaho Power’s demand-side management (DSM) programs and determined that the $44 million the utility spent on the programs in 2017 was prudently incurred.

In its order, the commission also directed Idaho Power to explore the potential for expanding its demand response programs, explore options for evaluating and expanding its energy efficiency offerings and to reconsider its decision to discontinue the Home Improvement Program in 2017

The commission reviews the company’s DSM programs annually to ensure that they are cost-effective. The commission’s decision does not impact rates.

Idaho Power recovers DSM-related expenses through the Energy Efficiency Rider, a 3.75-percent surcharge applied to customer energy usage, as well as base rates and the annual Power Cost Adjustment mechanism. If the PUC determines that the expenses were not prudently incurred, shareholders rather than customers bare the expenses.

In 2017, Idaho Power DSM costs included $37,162,002 in Energy Efficiency Rider expenses and $6,983,314 in demand response program incentives. The expenses included 16 energy efficiency programs, three demand response program and several educational initiatives and market transformation activities through the Northwest Energy Efficiency Alliance (NEEA).

According to Idaho Power, the energy efficiency programs saved 191,471 megawatt-hours (MWh) in 2017, including 85,425 MWh from the commercial/industrial sector, 65,506 MWh from the residential sector, 16,888 MWh from the irrigation sector and an estimated 23,652 MWh through NEEA initiatives. The company’s demand response programs achieved a total demand reduction of 383 megawatts.