Idaho Public Utilities Commission

Case No. PAC-E-10-03, Order No. 31076

May 14, 2010

Contact: Gene Fadness (208) 334-0339, 890-2712

Website: www.puc.idaho.gov

 

PacifiCorp seeks increase in energy efficiency rider

 

The Idaho Public Utilities Commission is taking comments through June 4 on a request by PacifiCorp (Rocky Mountain Power) to increase a surcharge that funds energy conservation programs from 3.7 percent of customer bills to 5.8 percent.

 

If approved by the commission, an average residential bill for a customer who uses 827 kilowatt-hours per month would increase by $1.62 per month. The money collected from the surcharge cannot go to increase company earnings, but must be directed only to investment in energy conservation programs. According to company documents, Rocky Mountain invests about $5.2 million in seven conservation programs, but the programs generated $17.1 million in customer benefits during 2009. Due in part to increased customer participation in the southeast Idaho utility’s conservation programs, Rocky Mountain seeks to increase its yearly investment in the programs to about $8.3 million.

 

As demand for electricity grows, rates will continue to increase. To reduce the size of rate increases, many utilities invest in energy efficiency and demand-side management (DSM) programs as alternatives to building new power plants or buying energy from more costly suppliers. Reducing demand on a utility’s generating system, particularly during times of peak-use, is less expensive per kilowatt-hour than building new power plants to meet demand.

 

Energy efficiency programs encourage more efficient use of electricity, through more efficient appliances and lighting and weatherization efforts. Rocky Mountain’s Home Energy Efficiency program includes financial incentives to customers to invest in energy-efficient washing machines; refrigerators; water heaters; dishwashers; lighting; cooling equipment and services; ceiling, wall and attic insulation; and windows. The lighting savings program resulted in a four-fold increase in lighting savings from 2008 to 2009. There is also a low-income weatherization program and a refrigerator recycling program that during 2009 resulted in 725 units recycled. Participation increased by 40 percent for the same time period in the company’s Energy FinAnswer and FinAnswer Express programs, which provide services and incentives for energy efficiency projects in business and commercial buildings.

 

DSM programs coordinate when electricity is used, shifting use to those time periods when demand on a utility’s generating plants is lower and, thus, less costly. Rocky Mountain Power’s largest DSM effort is an irrigation load control program that increased by about 20 percent from 2008 to 2009, providing the company with 285 megawatts of generation. One megawatt is one million watts, enough electricity to power about 650 average homes.

 

By enrolling in these programs, customers can benefit by using electricity more efficiently, reducing their consumption and their bills. Customers who don’t directly participate also benefit because the cost of the electricity saved system-wide through these programs is about half the cost of electricity generated by a new power plant.

 

Comments are accepted via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case number (PAC-E-10-03) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.

 

A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site at www.puc.idaho.gov. Click on “File Room” and then on “Electric Cases” and scroll down to the above case number.