Idaho PUC approves IPC efficiency programs, request review of four percent rider
The Idaho Public Utilities Commission (IPUC) on Monday approved the $35.2 million spent last year by the Idaho Power Company as prudently incurred as part of the company’s energy efficiency and demand-response programs during 2015.
Approximately $28.5 million of the $35.2 million investment during 2015 related to energy efficiency. The remaining $6.7 million was spent on demand-reduction, including incentive payments to customers that voluntarily shifted consumption to non-peak times.
Energy efficiency programs resulted in 162,533 megawatt-hours (MWh) of savings, including 21,900 MWh from Idaho Power’s participation in market transformation initiatives offered by the Northwest Energy Efficiency Alliance. The largest amount of energy efficiency savings came from the commercial/industrial sector, at approximately 102,074 MWh. This was followed by the residential sector, at approximately 24,532 MWh, and the irrigation sector, at approximately 14,027 MWh.
The PUC’s annual review ensures that energy programs are cost-effective and save customers money once in place. The approval will not impact customer rates.
The commission also requested that Idaho Power submit a proposal by the end of 2016 that could decrease the four percent Energy Efficiency Rider (EER) currently affecting customers. The rider covers a number of energy efficiency programs. The commission estimates that each year Idaho Power has collected, on average, approximately $13.5 million more than it spends on efficiency. The requested proposal will help determine how that surplus should be spent.
Idaho Power was asked to work cooperatively with commission staff and Idaho Power’s Energy Efficiency Advisory Group to consider offering more programs for residential and small-business customers, similar to utilities in neighboring states.
Idaho Power offers 19 efficiency programs funded by the four percent EER. Three demand-response programs are also offered, and are included in the annual Power Cost Adjustment (PCA). The PCA is part of the Annual Adjustment Mechanism listed on customer bills.
