Demand-Side Management 2017 Annual Report

200 Pages·2017·2.85 MB·English

by  Idaho Power Company

D E M A N D -S I D E M A N A G E M E N T
2017 Annual Report
M A R C H 15 • 2018
SAFE HARBOR STATEMENT
This document may contain forward-looking statements,
and it is important to note that the future results could
differ materially from those discussed. A full discussion
of the factors that could cause future results to differ
materially can be found in Idaho Power’s filings with the
Securities and Exchange Commission.
Printed on recycled paper
Idaho Power Company Table of Contents
TABLE OF CONTENTS
Executive Summary .....................................................................................................................................1
Introduction ..................................................................................................................................................3
Annual DSM Expense Review Filing and Compliance with Commission Orders ...............................4
DSM Programs Performance .................................................................................................................5
Program Evaluation Approach .............................................................................................................11
Cost-Effectiveness ...............................................................................................................................11
Energy Efficiency Advisory Group .....................................................................................................13
Idaho Power Field Staff .......................................................................................................................15
Future Plans for DSM Programs ..........................................................................................................16
DSM Annual Report Structure.............................................................................................................17
2017 Program Activity ...............................................................................................................................18
DSM Expenditures ...............................................................................................................................18
Marketing .............................................................................................................................................20
Cost-Effectiveness Results...................................................................................................................33
Customer Satisfaction ..........................................................................................................................35
Evaluations ...........................................................................................................................................37
Residential Sector Overview ................................................................................................................38
A/C Cool Credit .............................................................................................................................40
Easy Savings ..................................................................................................................................43
Educational Distributions...............................................................................................................46
Energy Efficient Lighting ..............................................................................................................57
Energy House Calls........................................................................................................................60
Fridge and Freezer Recycling Program .........................................................................................64
Heating & Cooling Efficiency Program ........................................................................................69
Home Energy Audit .......................................................................................................................75
Home Improvement Program ........................................................................................................81
Multifamily Energy Savings Program ...........................................................................................84
Oregon Residential Weatherization ...............................................................................................87
Rebate Advantage ..........................................................................................................................89
Residential New Construction Pilot Program (ENERGY STAR® Homes Northwest) .................92
Shade Tree Project .........................................................................................................................96
Simple Steps, Smart Savings™ ...................................................................................................100
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Weatherization Assistance for Qualified Customers ...................................................................103
Weatherization Solutions for Eligible Customers........................................................................112
Commercial/Industrial Sector Overview ...........................................................................................116
Commercial and Industrial Energy Efficiency Program ..............................................................119
Flex Peak Program .......................................................................................................................131
Oregon Commercial Audits .........................................................................................................134
Irrigation Sector Overview ................................................................................................................136
Irrigation Efficiency Rewards ......................................................................................................139
Irrigation Peak Rewards ...............................................................................................................142
Other Programs and Activities .................................................................................................................145
Green Motors Initiative ......................................................................................................................145
Idaho Power’s Internal Energy-Efficiency Commitment ..................................................................145
Local Energy Efficiency Funds .........................................................................................................146
Market Transformation ......................................................................................................................147
Northwest Energy Efficiency Alliance ........................................................................................147
Program Planning Group ...................................................................................................................153
Regional Technical Forum .................................................................................................................153
Residential Energy Efficiency Education Initiative ...........................................................................154
University of Idaho Integrated Design Lab .......................................................................................159
Glossary of Acronyms .............................................................................................................................163

LIST OF TABLES
Table 1. 2017 DSM programs by sector, operational type, location, and energy
savings/demand reduction ..................................................................................................10
Table 2. 2017 program sector summary and energy usage/savings/demand reduction ...................11
Table 3. 2017 funding source and energy savings ...........................................................................18
Table 4. 2017 DSM program expenditures by category ..................................................................19
Table 5. 2017 DSM program incentives totals by program type and sector ....................................19
Table 6. Cost-effectiveness summary by energy efficiency program .............................................35
Table 7. 2017 residential program summary ...................................................................................38
Table 8. H&CE Program incentives in 2017 ...................................................................................71
Table 9. 2017 WAQC activities and Idaho Power expenditures by agency and county ...............105
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Table 10. 2017 WAQC base funding and funds made available .....................................................107
Table 11. 2017 WAQC review of measures installed ......................................................................108
Table 12. 2017 savings values for WAQC program ........................................................................109
Table 13. 2017 commercial/industrial program summary ...............................................................116
Table 14. 2017 customer satisfaction related to C&I sector programs ............................................117
Table 15. 2017 Custom Projects annual energy savings by primary project measure .....................121
Table 16. 2017 irrigation program summary ...................................................................................137
Table 17. Irrigation Peak Rewards program load reduction for each 2017 event by
program option .................................................................................................................144
Table 18. Irrigation Peak Rewards 2017 potential realization rate ..................................................144
Table 19. 2017 Green Motor Initiative savings, by sector and state ................................................145

LIST OF FIGURES
Figure 1. Idaho Power service area map .............................................................................................3
Figure 2. Peak demand-reduction capacity and demand response expenses, 2004–2017
(MW and millions [$]) .........................................................................................................5
Figure 3. Annual energy savings and energy efficiency program expenses, 2002–2017
(MWh and millions [$]) .......................................................................................................6
Figure 4. Total DSM expense history, including energy efficiency, demand response, and
NEEA expenses, 2002–2017 (millions [$]) .........................................................................6
Figure 5. DSM expense history by program type, 2004–2017 (millions [$]) .....................................7
Figure 6. Annual incremental energy efficiency savings (aMW) compared with IRP targets,
2002–2017............................................................................................................................7
Figure 7. Annual cumulative energy efficiency savings (aMW) compared with IRP targets,
2002–2017............................................................................................................................8
Figure 8. 2017 DSM program expenditures by category ..................................................................19
Figure 9. 2017 DSM program incentives by segment and sector .....................................................20
Figure 10. Idaho Power customers share energy efficiency information on social media ..................21
Figure 11. Idaho Power “Ways to Save” website screenshot..............................................................22
Figure 12. Idaho Power appearances on KPVI and KTVB .................................................................23
Figure 13. Example of energy efficiency awareness campaign ad .....................................................24
Figure 14. Example of an Idaho Power digital ad ...............................................................................25
Figure 15. The 2017 the Smart-Saver Pledge bill insert .....................................................................28
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Table of Contents Idaho Power Company
Figure 16. Example of Commercial and Industrial Energy Efficiency Program ad ...........................30
Figure 17. Check presentations to Ash Grove Cement and Baker & Murakami
Produce Company ..............................................................................................................32
Figure 18. Customers’ needs “met” or “exceeded” (percent), 2007–2017 .........................................36
Figure 19. Photo of residential ESK ....................................................................................................47
Figure 20. Bookmark in English and Spanish to help promote the ESKs...........................................50
Figure 21. Social media post from realtor about ESKs .......................................................................51
Figure 22. Instagram post about the Student Energy Efficiency Kit Program ....................................52
Figure 23. 2012–2017 participation in the Energy House Calls program ...........................................61
Figure 24. 2017 Energy House Calls participation by region .............................................................61
Figure 25. 2017 Energy House Calls participation by job type ..........................................................62
Figure 26. 2009–2017 Fridge and Freezer Recycling Program participation by year ........................65
Figure 27. Fridge and Freezer Recycling Program Facebook Graphic ...............................................66
Figure 28. How customers heard about Fridge and Freezer Recycling Program in 2017 ..................68
Figure 29. H&CE Program digital ad ..................................................................................................72
Figure 30. Home Energy Audit summary of participating homes in 2017, by county .......................76
Figure 31. Home Energy Audit summary of space and water heating fuel types, 2017 .....................77
Figure 32. Home Energy Audit measures installed in participating homes in 2017 ...........................77
Figure 33. Example of Home Energy Audit program ad ....................................................................78
Figure 34. Multifamily Energy Saving Program door hanger.............................................................85
Figure 35. Digital ad on Snake River Valley Building Contractors Association app .........................93
Figure 36. Social media post for Weatherization Solutions for Eligible Customers program ..........114
Figure 37. Tiny house ........................................................................................................................155
Figure 38. 2017 Winter Energy Efficiency Guide ............................................................................157

LIST OF APPENDICES
Appendix 1. Idaho Rider, Oregon Rider, and NEEA payment amounts (January–
December 2017) ...............................................................................................................169
Appendix 2. 2017 DSM expenses by funding source (dollars) ............................................................170
Appendix 3. 2017 DSM program activity ............................................................................................171
Appendix 4. Historical DSM expense and performance, 2002–2017 ..................................................173
Appendix 5. 2017 DSM program activity by state jurisdiction ............................................................191
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LIST OF SUPPLEMENTS
Supplement 1: Cost-Effectiveness
Supplement 2: Evaluation

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Idaho Power Company Executive Summary
EXECUTIVE SUMMARY
In 2017, Idaho Power had its second largest energy savings year since 2002, when the company
revitalized its energy efficiency programs and began the Idaho and Oregon Energy Efficiency Riders
(Rider) to fund the pursuit of cost-effective energy efficiency. Energy efficiency and demand response
programs provide economic and operational benefits to the company and its customers and support the
wise use of energy by Idaho Power customers.
Idaho Power’s portfolio of energy efficiency program energy savings for 2017 increased to
191,471 megawatt-hours (MWh), including the estimated savings from the Northwest Energy Efficiency
Alliance (NEEA), enough energy to power almost 17,000 average homes a year in Idaho Power’s
service area. This is a 12-percent increase from the 2016 energy savings of 170,792 MWh. In 2017,
the company’s energy efficiency portfolio was cost-effective from both the total resource cost (TRC)
test and the utility cost (UC) test perspectives with ratios of 2.50 and 2.75, respectively. The portfolio
was also cost-effective from the participant cost test (PCT) ratio, which was 3.67. The savings from
Idaho Power’s energy efficiency programs alone, excluding NEEA savings, increased to 167,819 MWh
in 2017 from 146,177 MWh in 2016.
Idaho Power successfully operated all three of its demand response programs in 2017. The total demand
reduction achieved from the company’s programs was 383 megawatts (MW) from an available capacity
of 394 MW. Energy efficiency and demand response are important aspects of Idaho Power’s resource
planning process. Idaho Power’s 2017 achievements in energy savings exceeded the annual savings
target identified in Idaho Power’s 2017 Integrated Resource Plan (IRP).
Total expenditures from all funding sources of demand-side management (DSM) activities increased by
nearly 12 percent, to $48 million in 2017 from $43 million in 2016. DSM program funding comes from
the Idaho and Oregon Riders, Idaho Power base rates, and the annual power cost adjustment (PCA).
The company’s demand response incentives are recovered through base rates and the annual PCA in
Idaho, while Oregon demand response incentives are funded through the Oregon Rider.
With a goal of using customers’ funds wisely, Idaho Power employees and leaders strive to provide
conscientious, prudent, and responsible action and activities that result in cost-effective energy
efficiency.
In 2017, Idaho Power continued to expand the reach and frequency of its residential energy efficiency
campaign with digital and print marketing tactics, including an increase in social media activity.
The company also continued promoting the three Commercial and Industrial (C&I) Energy Efficiency
Program options as a single program.
Idaho Power continued to use stakeholder input to enhance its programs. The company met regularly
with its Energy Efficiency Advisory Group (EEAG) and individual customers seeking input on program
improvement. To find growth in the program portfolio, the company relied on its Program Planning
Group (PPG) that was initiated in 2014, NEEA’s Regional Emerging Technology Advisory Committee
(RETAC), and E Source resources to fill the pipeline with ideas for offerings to its energy efficiency
Demand-Side Management 2017 Annual Report Page 1
Executive Summary Idaho Power Company
programs. Additionally, Idaho Power continued to refine its program processes through evaluations,
customer surveys, and research to make it easier for its customers to participate.
In 2017, Idaho Power continued to distribute Energy-Saving Kits (ESK) at no additional cost to
customers on request. By the end of the year, almost 51,000 ESKs were shipped to customer homes:
27,458 kits to homes with electric water heaters and 23,281 to homes with alternate-source water
heaters. Idaho Power replaced the high-efficiency showerheads in the electric kits with an integrated
high-efficiency showerhead with a thermostatic shower valve (TSV). TSVs reduce the behavioral waste
caused by letting the water run unchecked while it warms up. With a TSV, water flow is automatically
reduced to a trickle when the water reaches 95° F, sending a signal that the water is ready. Also in 2017,
Idaho Power began development of an energy-savings kit for commercial customers and expanded its
cohort programs to include the Continuous Energy Improvement (CEI) Cohort for Schools.
This Demand-Side Management 2017 Annual Report provides a review of the company’s DSM
activities and finances throughout 2017 and outlines Idaho Power’s plans for future DSM activities.
This report also satisfies the reporting requirements set out in the Idaho Public Utilities Commission’s
(IPUC) Order Nos. 29026 and 29419. Idaho Power will provide a copy of the report to the Public Utility
Commission of Oregon (OPUC) under Oregon Docket Utility Miscellaneous (UM) No. 1710.

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