Utah Energy Efficiency and Peak Reduction Annual Report. January 1, 2013 December 31, 2013

Transcription

1 Utah Energy Efficiency and Peak Reduction Annual Report January 1, 2013 December 31, 2013 Issued May 16, 2014

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3 Rocky Mountain Power Utah Report Table of Contents TABLE OF CONTENTS List of Abbreviations and Acronyms... 5 Executive Summary... 6 Regulatory Activities Advisory Group and Steering Committee Activities Schedule 193 Balancing Account Summary Planning Process Integrated Resource Plan Performance Compared to Forecast Peak Reduction Programs Irrigation Load Control Program Management Program Administration Load Control Events and Performance Evaluation Cool Keeper Program Management Program Administration Evaluation Energy Efficiency Programs Residential Programs Home Energy Savings Program Management Program Administration Infrastructure Evaluation Refrigerator Recycling Program Management Program Administration Infrastructure Evaluation New Homes Page 3 of 50

4 Rocky Mountain Power Utah Report Table of Contents Program Management Program Administration Infrastructure Evaluation Home Energy Reports Program Management Program Administration Evaluation Low Income Weatherization Program Management Program Administration Evaluation Non-Residential Energy Efficiency Program Management Program Delivery Infrastructure Evaluation Communications, Outreach and Education Earned Media Customer Communications wattsmart Campaign Paid Media Public Outreach Program Specific Home Energy Savings Refrigerator/Freezer Recycling ( See ya later refrigerator ) wattsmart New Homes Cool Keeper FinAnswer Express and Energy FinAnswer / wattsmart Business Evaluations Page 4 of 50

5 Rocky Mountain Power Utah Report Abbreviations and Acronyms LIST OF ABBREVIATIONS AND ACRONYMS CFLs DSM ECM HCD HVAC IRP kw kwh LEDs NTG PCT PTRC RIM Schedule 193 TRC UCT Compact fluorescent lights Demand-side management Energy conservation measure Utah Department of Workforce Services, Housing and Community Development Division Heating, ventilation and air conditioning Integrated Resource Plan Kilowatt Kilowatt hour Lighting-emitting diode lights Net-to-Gross Participant Cost Test Total Resource Cost Test with 10 percent adder Ratepayer Impact Measure Test Demand-Side Management Cost Adjustment Total Resource Cost Test Utility Cost Test Page 5 of 50

6 Rocky Mountain Power Utah Report Executive Summary EXECUTIVE SUMMARY Rocky Mountain Power ( Company ) working in partnership with its retail customers and with the approval of the Public Utilities Commission of Utah ( Commission ), acquires energy efficiency and peak reduction resources as cost-effective alternatives to the acquisition of supplyside resources. These resources assist the Company in efficiently addressing load growth and contribute to the Company s ability to meet system peak requirements. Company energy efficiency and peak reduction programs provide participating Utah customers with tools that enable them to reduce or assist in the management of their energy usage, while reducing the overall costs to the Company s customers. These resources are relied upon in resource planning as a least cost alternative to supply-side resources. This report provides details on program results, activities, expenditures, and status of the Demand-Side Management Cost Adjustment tariff rider ( Schedule 193 ) revenue for the performance period from January 1, 2013, through December 31, The Company, on behalf of its customers invested $55.2 million in energy efficiency and peak reduction resource acquisitions during the reporting period. The investment yielded approximately gigawatthours in first year energy savings, 2 2,628,930 megawatt-hours of lifetime savings 3 from 2013 energy efficiency acquisitions and approximately 58.8 megawatts of capacity reduction from energy efficiency savings 4 and realized reductions associated with peak management activities of approximately megawatts 5. Net benefits based on the projected value of the energy savings over the life of the individual measures are estimated at $141.1 million 6. The cost effectiveness of the portfolio including peak load reduction from various perspectives is provided in Table 1. 1 Appendix 1 provides specific requirements from various Docket Numbers and where they are located in the annual report and appendices. 2 Reported ex-ante savings as measured at generation. 3 Estimated lifetime savings of 2013 Energy Efficiency Acquisitions was calculated by multiplying First Year Acquisitions (measured at the generator) by the weighted average measure life of the portfolio of 9.9 years, no discount was assumed for possible savings degradation over the life of the measures. 4 See Appendix 2 for explanation on how the capacity contribution savings values are calculated. 5 Realized load as measured at generation 6 See Table 1 Utility Cost Test Net Benefits. Page 6 of 50

7 Rocky Mountain Power Utah Report Executive Summary Table 1 - Cost Effectiveness for the Portfolio Benefit/Cost Net Benefits Ratio Total Resource Test plus 10 percent ( PTRC ) total resource cost with the addition of environmental and non-energy benefits $142,814,362 Total Resource Cost Test ( TRC ) $115,301,805 Utility Cost Test ( UCT ) $141,073,900 Participant Cost Test ( PCT ) $129,570,653 Ratepayer Impact ( RIM ) $79,931 The portfolio was cost effective based on all of the five standard cost effectiveness tests for the 2013 reporting period. Annual performance information for 2013 cost effectiveness is provided in detail in Appendix 3. In 2013, the Company completed development of a Technical Reference Library which documents in an electronic database the preliminary measure-level savings data, including the methods, assumptions and sources for those assumptions used for the reporting of program energy savings. Another Company system implementation that began in 2013 was the upgrade of the Company s tracking system which is used by Demand-side management ( DSM ) to store information on completed customer projects. The system is known as DSM Central and integrates with the Technical Reference Library. Together the two systems will improve the process of validating reported savings data and costs. The Company, working with its third-party program delivery administrators 12, collaborates with the following number of retailers, contractors and vendors in the delivery of its energy efficiency programs in Utah: 7 The total resource cost test plus a 10 percent benefit adder to account for non-quantified environmental and nonenergy benefits of conservation resources over supply side alternatives. 8 The TRC compares the total cost of a supply side resource to the total cost of energy efficiency resources, including costs paid by the customer in excess of the program incentives. The test is used to determine if an energy efficiency program is cost effective from a total cost perspective. 9 The UCT compares the total cost incurred by the utility to the benefits associated with displacing or deferring supply side resources. 10 The PCT compares the portion of the resource paid directly by participants to the savings realized by the participants. 11 The RIM examines the impact of energy efficiency on utility rates. Unlike supply-side investments, energy efficiency programs reduce energy sales. Reduced energy sales can lower revenue requirements (see UCT) while putting near-term upward pressure on rates as the remaining fixed costs are spread over fewer kilowatt-hours. 12 See program specific information for backgrounds on third party administrators. Page 7 of 50

8 Rocky Mountain Power Utah Report Executive Summary Table 2 Energy Efficiency Infrastructure Sector Type No. Residential Lighting Retailers 282 Appliances Retailers 125 HVAC 13 Contractors 147 Insulation Contractors 46 Window Contractors 38 Low Income Agencies 1 Commercial and Industrial Lighting Trade Allies 184 HVAC Trade Allies 53 Motors Trade Allies 60 Engineering Firms Heating, ventilation and air conditioning Page 8 of 50

9 Rocky Mountain Power Utah Report Executive Summary 2013 Performance Program and Sector level results for 2013 are provided in Table 3. Table 3 14 Utah Program Results for January 1, 2013 December 31, Load Management Programs kw/yr (at site) kw/yr (at gen) Program Expenditures Cool Keeper (114) 100, ,275 $ 10,340,051 Irrigation Load Control (105) 15,000 16,386 $ 743,345 Total Load Management 115, ,660 $ 11,083,396 Energy Efficiency Programs kwh/yr Savings (at site) kwh/yr Savings (at gen) Program Expenditures Low Income Weatherization (118) 475, ,669 $ 129,097 New Homes (110) 2,138,279 2,337,524 $ 1,413,515 Refrigerator Recycling (117) 13,139,386 14,363,714 $ 1,618,186 Home Energy Savings (111) 89,481,784 97,819,697 $ 20,792,304 Home Energy Reporting 32,298,825 35,308,430 $ 802,595 Total Residential 137,533, ,349,034 $ 24,755,696 Wattsmart Business Commercial (140) 66,524,798 72,320,438 Wattsmart Business Industrial (140) 38,530,080 40,782,163 Wattsmart Business Agricultural (140) 845, ,235 Wattsmart Portfolio (140) $ 14,168,001 Total Wattsmart Business 105,900, ,025,837 $ 14,168,001 Outreach & Communications + Class 4 Outreach and Communication Campaign $ 1,442,042 U of U Ambassador Sponsorship $ 6,426 Total Energy Efficiency 243,433, ,374,870 $ 40,372,164 Total System Benefit Expenditures - All Programs $ 51,455,561 Portfolio Technical Reference Database $ 179,999 Portfolio Code Training $ 52,865 Portfolio DSM Central $ 255,672 Self Direction Credits $ 3,281,617 Total Utah Program Expenditures $ 55,225, Reported savings are ex-ante 15 The values at generation include line losses between the customer site and the generation source. The company s line losses by sector for 2013 are 9.32 percent for residential, 8.71 percent for commercial, 5.85 percent for industrial and 9.24 percent for irrigation. Page 9 of 50

10 Rocky Mountain Power Utah Report Regulatory Activities REGULATORY ACTIVITIES During the reporting period, the Company filed a number of compliance filings, updates and requests with the Commission in support of the Company programs. The Company requested and received approval of tariff modifications for the following: Approval of DSM Adjusted Credit rate increase on Schedule 194, effective March 1, Approval of new Schedule No. 105, Irrigation Load Control Program and cancelation of Schedule 96A, Dispatchable Irrigation Load Control Credit Rider Program, effective March 15, Tariff revisions to Home Energy Savings Schedule 111, effective May 1, Approval to cancel Schedule No. 115 ("Commercial and Industrial Energy Efficiency Incentives Optional for Qualifying Customers"); Schedule No. 125 ("Commercial and Industrial Energy Services Optional for Qualifying Customers"); Schedule No. 126 ("Utah Commercial and Industrial Re-Commissioning Program"); and Schedule No. 192 ("Self-Direction Credit") and approval of the new Schedule No. 140 ("Non-Residential Energy Efficiency"), effective July 1, Approval to cancel Schedule No. 194, DSM Cost Adjustment Credit, effective September 15, 2013, in order to fund changes to the Schedule No. 114, Cool Keeper Program. The Company also received approval or requested the following items: Acknowledgement on April 24, 2013 of the 2013 DSM Semi-Annual Forecast Report in compliance with the Commission Order of August 25, 2009, in Docket No T08 approving the Phase I Stipulation. On March 1, 2013, the Commission issued an Order directing the Company to file supplementary information reporting savings estimates for the 2013 DSM Irrigation Load Control program both in terms of total program participation and contribution to peak. Approval of the optional new application process for the New Homes Program, effective May 7, Acceptance of the 2012 Annual Report, acknowledged September 11, 2013 with supplemental information filed October 7, Acknowledgement on September 27, 2013, for the August 8, 2013 filing of the Schedule No. 193 Balancing Account Analysis. Submitted the Demand Side Management November 1 deferred account and forecast in compliance with the Commission s August 25, 2009, Order in docket No T08. The Commission issued an Order on January 9, Requested approval of the Strategic Outreach and Communications Plan for DSM for 2014 on December 27, The Commission approved the plan on February 12, Advisory Group and Steering Committee Activities Consistent with the discussion in Docket No , the Company seeks input regarding its energy efficiency programs from both the Utah DSM Advisory Group and the DSM Steering Page 10 of 50

11 Rocky Mountain Power Utah Report Regulatory Activities Committee. Both groups include representatives from a variety of constituent organizations. Members of the Steering Committee, who are not already governed by Commission confidentiality rules, signed Confidentiality Agreements with the Company in order to provide input on issues involving sensitive, confidential, or proprietary information. The Company consulted with the DSM Advisory Group or DSM Steering Committee throughout 2013 on the follow matters: January 2, 2013 Steering Committee Deferred Balancing Account Irrigation Load Control February 5, 2013 Steering Committee AFUDC to Debt Rate Cool Keeper Evaluation New Homes Evaluation Northwest Power and Conservation Council and E Source memberships and cost allocations DSM Central Commercial and Industrial Program Updates March 6, 2013 Steering Committee Commercial and Industrial Program Changes New Homes Updates Lawrence Berkeley Labs Offer to Review Decoupling Evaporative Cooling Working Group Update April 24, 2013 Steering Committee Draft Non-Residential Energy Efficiency Tariff Discussion Evaluations / Annual Report Home Energy Reports Cool Keeper Procurement wattsmart Marketing at the University of Utah June 18, 2013 Steering Committee Cool Keeper Procurement Update August 21, 2013 Steering Committee Review Required Filings and Potential Consolidation/Changes Review Deferred Balance at the Portfolio Level Review Annual Report Data Requirements Cool Keeper Procurement Update Carrying Charge Rate Discussion Page 11 of 50

12 Rocky Mountain Power Utah Report Regulatory Activities August 21, 2013 Advisory Group Status of PacifiCorp's Energy Storage Demonstration Project, Update on Docket No Review Annual Demand-Side Management 2012 Report Review Results of the Integrated Resource Plan on the DSM Forecast Review Program Upgrades and Changes during 2012/2013 Act! wattsmart video contest December 10, 2013 Steering Committee New Homes Program Home Energy Reports Cool Keeper Program Irrigation Load Control December 10, 2013 Advisory Group Program Evaluations Review November 1 Forecast Review 2014 Savings Goals and Budget wattsmart Business Low Income Access to Home Energy Savings Schedule 193 Balancing Account Summary Energy efficiency and peak reduction activities are funded by revenue collected through Schedule 193 Expenditures and are charged as incurred. The DSM balancing account is the mechanism used for managing Schedule 193 revenues collected and tracking the offsetting DSM expenses incurred. As referenced above, on August 14, 2013 the Company filed an application in Docket No to cancel Schedule 194 DMS Cost Adjustment Credit in order to fund improvements to Schedule 114 Air Conditioner Direct Load Control Program. A hearing was held on September 12, 2013 for all interested parties to comment on the filing. Approval of the cancelation of Schedule 194 was received and became effective on September 15, The balancing account summary for 2013 is shown in Table 4. Page 12 of 50

13 Rocky Mountain Power Utah Report Regulatory Activities State of Utah Summary - Balancing Account Monthly Program Costs - Fixed Assets Table 4 Schedule 193 Balancing Account Summary Monthly Net Accrued Costs * Rate Recovery Carrying Charge Cash Basis Accumulated Balance Accrual Based Accumulated Balance Accumulated Balance Total Carrying Costs Balance as of 12/31/12 (12,939,521) (8,292,887) January 2,239, ,371 (3,769,990) (89,422) (14,559,096) (9,444,091) 3,327,274 February 1,840, ,090 (3,595,521) (100,722) (16,414,358) (10,743,262) 3,226,552 March 4,105,880 (378,162) (3,171,663) (104,056) (15,584,197) (10,291,264) 3,122,496 April 3,968,474 55,405 (2,745,405) (97,697) (14,458,825) (9,110,486) 3,024,799 May 4,432,566 (1,259,705) (2,876,433) (89,267) (12,991,959) (8,903,325) 2,935,532 June 3,151, ,876 (3,561,547) (86,109) (13,487,702) (9,189,193) 2,849,423 July 4,851,757 (244,503) (4,488,209) (86,821) (13,210,975) (9,156,969) 2,762,602 August 3,159,027 3,252,543 (4,740,990) (91,363) (14,884,301) (7,577,752) 2,671,239 September 2,652,618 64,463 (4,427,712) (102,911) (16,762,307) (9,391,295) 2,568,328 October 5,504,239 (904,373) (4,114,850) (104,841) (15,477,759) (9,011,119) 2,463,487 November 3,263,632 1,139,337 (3,868,999) (94,611) (16,177,737) (8,571,761) 2,368,876 December 11,905,940 (4,945,115) (4,580,101) (81,033) (8,932,931) (6,272,071) 2,287, totals 51,076,863 (1,985,773) (45,941,421) (1,128,853) *December 2013 total accrual $2,660,861 Column Explanations: Monthly Program Costs Fixed Assets: Monthly expenditures for all DSM program activities posted in Monthly Net Accrued Costs: Monthly net change of program costs incurred during the period not yet posted. Rate Recovery: Revenue collected through Schedule 193. Carrying Charge: Monthly carrying charge based on Cash Basis Accumulated Balance of the account. Cash Basis Accumulated Balance: Current balance of the account; a running total of account activities. A negative accumulative balance means cumulative revenue exceeds cumulative expenditures; positive accumulative balance means cumulative expenditures exceed cumulative revenue. Accrual Based Accumulative Balance: Current balance of account including accrued costs. AFUDC Rate: The carrying charge rate applied to the accumulated balance. AFUDC means Allowance for Funds Used During Construction. Page 13 of 50

14 Rocky Mountain Power Utah Report Planning Process PLANNING PROCESS Integrated Resource Plan The Company develops a biennial integrated resource plan ( IRP ) as a means of balancing cost, risk, uncertainty, supply reliability/deliverability and long-run public policy goals. The plan presents a framework of future actions to ensure the Company continues to provide reliable, reasonable-cost service with manageable risks to the Company s customers. Energy efficiency and peak management opportunities are incorporated into the plan based on their availability, characteristics and costs. Energy efficiency and peak management resources can be divided into four general classes based on their relative characteristics, the classes are: Class 1 DSM (Resources from fully dispatchable or scheduled firm capacity product offerings/programs) Capacity savings occur as a result of active Company control or advanced scheduling. Once customers agree to participate, the timing and persistence of the load reduction is involuntary on their part within the agreed limits and parameters. Class 2 DSM (Resources from non-dispatchable, firm energy and capacity product offerings/programs) Sustainable energy and related capacity savings are achieved through facilitation of technological advancements in equipment, appliances, lighting and structures or sustainable verifiable changes in operating and maintenance practices, also commonly referred to as energy efficiency resources. Class 3 DSM (Resources from price responsive energy and capacity product offerings/programs) Short-duration energy and capacity savings from actions taken by customers voluntarily based on pricing incentives or signal. Class 4 DSM (Resources from energy efficiency education and non-incentive based voluntary curtailment programs/communications pleas) Energy and/or capacity reduction typically achieved from voluntary actions taken by customers, to reduce costs or benefit the environment through education, communication and/or public pleas. As technical support for the IRP, a third-party analysis is conducted to estimate the magnitude, timing and cost of alternative energy efficiency and peak management options. 16 The main focus of the study has been on resources with sufficient reliability characteristics that are anticipated to be technically feasible and assumed achievable during the IRP s 20-year planning horizon. The estimated achievable energy efficiency potential identified in the 2013 study for Utah was 389 average megawatts or 13 percent of retail sales. 17 By definition this was the energy efficiency potential that may be achievable to acquire during the 20-year planning horizon if determined 16 Assessment of Long-term, System-Wide Potential for Demand-Side and Other Supplemental Resources, dy/pacificorp_dsmpotential_final_vol%20i.pdf 17 Ibid, page 75. Page 14 of 50

15 Rocky Mountain Power Utah Report Planning Process least cost and cost-effective compared to supply-side alternatives within the Company s integrated resource planning process. The achievable technical potential by sector is shown in Table 5. The 2013 potential study indicates that 60 percent of the achievable technical potential for the Company, excluding Oregon 18, is in Utah. 19 Table 5 Utah Energy Efficiency Achievable Technical Potential by Sector Sector Average Megawatts in 2032 Percent of Retail Sales Residential % Commercial % Industrial 103 9% Irrigation 2 10% Street Lighting 3 29% Energy efficiency resources vary in their reliability, load reduction and persistence over time. Based on the significant number of measures identified in the potential study it is difficult to incorporate each measure as a standalone resource in the IRP. To address this issue, energy efficiency measures are bundled by their relative cost to reduce the number of combinations to a more manageable number. The evaluation of energy efficiency resources within the IRP is also informed by state specific evaluation criteria. While all states generally use commonly accepted cost effectiveness tests, some states require variations in calculating or prioritizing the tests. Washington and Oregon utilize the total resource cost but allow for consideration of nonenergy benefits and a 10 percent regional conservation credit in the determination of cost effectiveness. Utah utilizes the utility cost test as the primary determination of cost effectiveness. The Company evaluates program implementation cost effectiveness (both prospectively and retrospectively) under a variation of five tests to identify the relative impact and/or value to customers and the Company (i.e. utility cost, total resource cost, near-term rate impact, program value to participants, etc.). The 2013 Integrated Resource Plan preferred portfolio includes the acquisition of energy efficiency resources. The plan seeks opportunities to accelerate these acquisitions as evidenced by the range of the savings target and expanded set of demand side management related Action 18 Demand-side Management potential studies for Oregon are performed by the Energy Trust of Oregon. 19 Page 75, Table 52 of the 2013 Assessment of Long-term, System-Wide Potential for Demand-Side and Other Supplemental Resources. Page 15 of 50

16 Rocky Mountain Power Utah Report Planning Process Plan activities. The action plan savings targets for the 2013 Integrated Resource Plan 20 are shown in Table 6. Table 6 Preferred Portfolio Energy Efficiency Targets 2013 Preferred Portfolio Acquire 1,425-1,876 gigawatt hours (GWh) of cost-effective Class 2 (energy efficiency) resources by the end of 2015 and 2,034-3,180 GWh by the end of IRP, April, 2013, IRP_Vol1-Main_ pdf, page 248. Page 16 of 50

17 Rocky Mountain Power Utah Report Performance Compared to Forecast 2013 PERFORMANCE COMPARED TO FORECAST In 2013, the Company forecasted Utah targets of 248,000 MWh/year of energy efficiency and 152 MW 21 of load under management. These targets were filed with the commission on November 1, The Company achieved energy efficiency acquisitions of 264,375 MWh and realized load management reductions of 127 MW. Load management program performance was impacted by a pre-season transition to a new delivery vendor and pay-for-performance contract structure for the Irrigation Load Control program and post-season end to the contract with the vendor delivering the Cool Keeper program (decrease in vendor program marketing). Table Program Performance Compared to Forecast Utah DSM 2013 Projected Savings 2013 Forecast 2013 Actual (Gross - at Gen) (Gross - at Gen) MWH MW MWH MW Class 1 - Residential, Commercial, Industrial A/C Load Control Prgm - Residential (Sch. 114) Industrial Irrigation Load Control (Sch. 96 & 96A) Total Class Class 2 - Residential Programs Low Income (Sch. 118) 1, New Construction (Sch. 110) 3,850 2,338 Refrig. Recycle (Sch. 117) 15,002 14,364 Home Energy Efficiency Incentive Prgm (Sch. 111) 95,000 97,820 Home Energy Reports 15,000 35, , ,349 Class 2 - Commercial Programs Wattsmart Business (Sch. 140) 72,320 Energy FinAnswer (Sch. 125) 26,401 Commercial Self-Direct (Sch. 192) 2,990 Commercial FinAnswer Express (Sch. 115) 39,736 Retrofit Commissioning Program (Sch. 126) 1,449 70,576 72,320 Class 2 - Industrial Programs Wattsmart Business (Sch. 140) 41,705 Industrial FinAnswer (Sch. 125) 32,267 Industrial Self-Direct (Sch. 192) 10,010 Industrial FinAnswer Express (Sch. 115) 4,415 46,692 41,705 Total Class 2 247, , Forecast realized load reduction associated with Cool Keeper and load under Irrigation management 22 Refer to Docket No Page 17 of 50

18 Rocky Mountain Power Utah Report Peak Reduction PEAK REDUCTION PROGRAMS Peak Reduction programs assist the Company in balancing the timing of customer energy requirements during heavy use summer hours; deferring the need for higher cost investments in delivery infrastructure and generation resources that would otherwise be needed to serve those loads for a select few hours each year. These programs help the Company maximize the efficiency of the Company s existing electrical system and reduce costs for all customers. Programs targeting capacity related resources are often specific to end use loads most prevalent in a given jurisdiction, such as the agricultural pumping and space cooling loads in Utah. In 2013, the Company offered the irrigation load control program (Schedule 105) and the air conditioner load management program (Schedule 114) for residential and small commercial customers. The Peak Reduction Programs achieved a total of 126,660 kilowatt ( kw ) of realized load control (gross at generation) in Cost effectiveness results for the reporting period are provided in Table 8. Table 8 Cost Effectiveness for Load Control Portfolio 23 Total Resource Cost Test plus 10 percent Total Resource Cost Test Utility Cost Test Participant Cost Test Rate Payer Impact Benefit/Cost Ratio Pass Pass Pass N/A Pass Irrigation Load Control The Irrigation Load Control program was offered in 2013 to irrigation customers receiving electric service on Schedule 10, Irrigation and Soil Drainage Pumping Power Service. Participants enrolled with the third party program administrator to allow the curtailment of their electricity usage in exchange for a participation credit. For most participants, their irrigation equipment is set up with a dispatchable two-way control system giving the Company control over their loads. Under this control option participants are provided a day-ahead notification in advance of control events and have the choice to opt-out of a limited number of dispatch events per season. 23 Decrement values or avoided costs are considered confidential on load control programs. Cost effectiveness ratios and inputs will be available under a protective agreement. A Pass designation equates to a benefit to cost ratio of 1 or better. Page 18 of 50

19 Rocky Mountain Power Utah Report Peak Reduction A summary of the program performance, participation and cost effectiveness results for the reporting period are provided in Tables 9 and 10. Table 9 Irrigation Load Control Program Performance Total Enrolled (Gross at Gen) 26 MW Average Realized load (at Gen) 13 MW Maximum Realized load (at Gen) 16 MW Participation Customers 54 Participation (Sites) 207 Table 10 Cost Effectiveness for Irrigation Load Control Total Resource Cost Test plus 10 percent Total Resource Cost Test Utility Cost Test Participant Cost Test Rate Payer Impact Benefit/Cost Ratio Pass Pass Pass N/A Pass Program Management The program manager who is responsible for the Irrigation Load Control programs in Utah is also responsible for the Irrigation Load Control program in Idaho. For each state the program manager is responsible for the cost effectiveness of the program, contracting with program administrator through a competitive bid process, establishing and monitoring program performance and compliance, and recommending changes in the terms and conditions set out in the tariff. Program Administration Starting with the 2013 program season, the Company selected EnerNoc to manage the irrigation load control program through a pay-for-performance structure. See Appendix 4 for EnerNoc s 2013 PacifiCorp Irrigation Load Control Program Report. Load Control Events and Performance There were ten control events initiated in The date, time and estimated impact for each event is provided in Table 11. Page 19 of 50

20 Rocky Mountain Power Utah Report Peak Reduction Table 11 Irrigation Load Control Events Date Event Event Times Estimated Load Reduction - Utah at Gen (MW) 6/18/13 1 3pm-7pm -7 6/28/13 2 3pm-7pm -14 7/1/13 3 3pm-7pm -14 7/2/13 4 3pm-7pm -14 7/3/13 5 3pm-7pm -16 7/9/13 6 3pm-7pm -15 7/10/13 7 3pm-7pm -15 7/18/13 8 3pm-7pm -11 7/25/13 9 3pm-7pm -12 7/26/ pm-7pm -10 Evaluation No evaluation activities occurred during Cool Keeper The Cool Keeper program is an air conditioner direct load management program targeting residential and qualifying commercial customers (equipment size equal to or less than 7.5 tons) who cool their homes and businesses with electric central air conditioners and heat pumps. On select summer weekday afternoons, when electricity demand is at its highest, the Cool Keeper control equipment installed on a participating customer s cooling equipment is sent a signal to cycle the operation of the air conditioners compressor off and on for brief periods each hour in coordination with the air conditioners of other participating customers. For their participation, customers receive an annual thank you bill credit of either $20 or $40 per air conditioner being controlled depending on the size of the air conditioner. Commercial customers have the option of receiving a programmable thermostat in lieu of the thank you bill credit as an incentive for their participation. Like the direct control unit or switch used to control equipment for the majority of the program, the programmable thermostat is capable of receiving remote signals used to initiate control events, but also has the added feature of doubling as an intelligent programmable thermostat customers may use to effectively manage their heating and cooling systems year around. A summary of the program performance, participation and cost effectiveness results for the reporting period are provided in Tables 12 and 13 below. Page 20 of 50

21 Rocky Mountain Power Utah Report Peak Reduction Table 12 Cool Keeper Program Performance Maximum Realized (Gross at Gen) Maximum Realized (At Site) 110 MW 101 MW Total Participation 105,457 Residential 104,927 Commercial 530 Table 13 Cost Effectiveness for Cool Keeper Total Resource Cost Test plus 10 percent Total Resource Cost Test Utility Cost Test Participant Cost Test Rate Payer Impact Benefit/Cost Ratio Pass Pass Pass NA Pass Program Management The program manager who was responsible for Cool Keeper program in Utah was also responsible for the Home Energy Reports in Utah and Washington and the New Homes program in Utah. For each program and in each state, the program manager is responsible for the cost effectiveness of the program, identifying and contracting with the program administrator through a competitive bid process, establishing and monitoring program performance and compliance, and recommending changes in the terms and conditions set out in each tariff or state s compliance requirements. Program Administration The Cool Keeper program was administered by Comverge, Inc. through a pay-for-performance agreement. Comverge delivers a portfolio of energy management solutions that enable utilities, grid operators, and commercial and industrial organizations to optimize their energy usage and demand. Comverge was responsible for the following: Installation and maintenance of load control devices and communication infrastructure. Business Continuity Ensure processes are in place and administered to ensure the continued operation of the irrigation load control program. Data System Management Maintain the load control management system for participant data, load reduction performance and reconciliation of annual performance. Page 21 of 50

22 Rocky Mountain Power Utah Report Peak Reduction Providing a dispatch portal and communications network to facilitate the effective operation of the irrigation load control devices. Customer Services Manage customer interface including the program hotline and ensuring trained and knowledgeable staff are available to handle all customer service issues. Customer recruitment to maintain adequate participation level. The Company s 10-year pay-for-performance contract with Comverge expired at the end of the 2013 program season. New contracts were signed with Cooper Power Systems and Good Cents to provide equipment and assist the Company in the operation and administration of the Cool Keeper program starting in The change will result in a company owned and operated control environment relying on two-way communications equipment for improved control, measurement and verification of program performance. Evaluation No evaluation activities occurred during Page 22 of 50

23 Rocky Mountain Power Utah Report Energy Efficiency Programs ENERGY EFFICIENCY PROGRAMS Energy Efficiency programs are offered to all major customer sectors: residential, commercial, industrial and agricultural. The residential energy efficiency portfolio included the following programs: Home Energy Savings Schedule 111, Residential Refrigerator Recycling Schedule 117, New Homes Schedule 110, Home Energy Reports, Low-Income Weatherization Schedule 118. The non-residential energy efficiency portfolio consisted of FinAnswer Express Schedule 115, Energy FinAnswer Schedule 125, Re-commissioning Schedule 126 and Self-Direction Schedule 192 during the first part of Effective July 1, 2013, the non-residential programs were consolidated into a Non-Residential Energy Efficiency program Schedule 140. The cost effectiveness results of the Energy Efficiency Portfolio for the 2013 reporting period is provided in Table 14. Table 14 Cost Effectiveness for Energy Efficiency Portfolio Benefit/Cost Net Benefits Ratio Total Resource Cost Test plus 10 percent 1.61 $58,692,862 Total Resource Cost Test 1.46 $44,615,664 Utility Cost Test 2.76 $89,794,343 Participant Cost Test 2.24 $110,164,069 Rate Payer Impact 0.73 ($51,199,626) Table 15 provides a summary by program of the Gross and Net savings acquired in 2013 at site and at generation. Table 15 Energy Efficiency Gross and Net Savings 24 Program Gross kwh Savings at site Net kwh Savings at site Gross kwh Savings at gen Net kwh Savings at gen Low Income 475, , , ,669 New Homes 2,138,279 1,710,623 2,337,524 1,870,019 Refrigerator Recycling 13,139,386 7,677,190 14,363,714 8,392,551 Home Energy Savings 89,481,784 67,206,422 97,819,697 73,468,716 Home Energy Reports 32,298,825 32,298,825 35,308,430 35,308,430 wattsmart Business 105,900, ,477, ,025, ,483,971 Total 243,433, ,845, ,374, ,043, Net savings include realization rates and NTG ratios. Page 23 of 50

24 Rocky Mountain Power Utah Report Residential Programs RESIDENTIAL PROGRAMS The residential energy efficiency portfolio was comprised of five programs; Home Energy Savings, Residential Refrigerator Recycling, New Homes, Home Energy Reports, and Low Income Weatherization. As shown in Table 16 below, the residential portfolio was cost effective based on four of the five standard cost effectiveness tests for the 2013 reporting period. The ratepayer impact test was less than 1.0 indicating that there is near term upward pressure placed on the price per kilowatt-hour given a reduction in sales. Table 16 Cost Effectiveness for Residential Portfolio Benefit/Cost Net Benefits Ratio Total Resource Test plus 10 percent $11,353, Total Resource Cost Test $5,567, Utility Cost Test $31,757, Participant Cost Test $48,900, Rate Payer Impact ($32,891,365) 0.64 Home Energy Savings The Home Energy Savings program is designed to provide access to and incentives for more efficient products and services installed or received by customers in new or existing homes, multi-family housing units or manufactured homes. Program participation by measure is provided in Table 17. Measures Table 17 Eligible Program Measures (Units) 25 Unit Measurement 2013 Total Units 2013 Total Participants Attic Insulation Sq Feet 16,100,600 8,581 Bonus Insulation Incentive Units Ceiling Fan Units Central Air Conditioner Equipment Units 1,690 1,681 Clothes Washer Units 8,241 8,232 Dishwasher Units 3,291 3,282 Duct Sealing and Insulation Projects 5,714 5, Units are dependent on the measure i.e. insulation is in square feet, dishwashers is a straight count of dishwashers receiving an incentive, CFLs are an estimate of total bulbs, etc. Page 24 of 50

25 Rocky Mountain Power Utah Report Residential Programs Measures Unit Measurement 2013 Total Units 2013 Total Participants Electric Water Heater Units Evaporative Cooler - Permanently Installed Units Evaporative Cooler - Premium Units Evaporative Cooler - Replacement Units Evaporative Cooler - Premium Ducted Units Fixture Units 128,964 10,587 Floor Insulation Sq Feet 3,466 6 Freezer Units 5 5 Gas Furnace Units 1,277 1,265 Portable Evaporative Cooler Units Central Air Conditioner Best Practice Installation Projects 1,666 1,656 Central Air Conditioner Proper Sizing Projects 1,048 1,043 Refrigerator Units 1,179 1,179 Room Air Conditioner Units Wall Insulation Sq Feet 449, Windows Sq Feet 267,159 1,491 Lighting - CFL General Bulbs 2,106, ,673 Lighting - CFL Specialty Bulbs 646,382 64,638 Lighting - LED Downlight Bulbs 231, ,445 Lighting - LED General Bulbs 118, ,746 Lighting - LED Specialty Bulbs 200, ,357 Grand Total 20,278, ,732 Program performance results for January 1, 2013 December 31, 2013 are provided in Table 18. Program Management Table 18 Cost Effectiveness for Home Energy Savings Benefit/Cost Ratio Net Benefits Total Resource Cost Test plus 10 percent 1.22 $9,784,434 Total Resource Cost Test 1.11 $4,860,748 Utility Cost Test 2.37 $28,444,561 Participant Cost Test 1.73 $35,449,043 Rate Payer Impact 0.67 ($24,064,302) The program manager who is responsible for the Home Energy Savings program in Utah is also responsible for the Home Energy Savings program in California, Idaho, Washington and Wyoming and the Refrigerator Recycling program in Utah, California, Idaho, Washington, and Wyoming. For each program and in each state the program manager is responsible for the cost Page 25 of 50

26 Rocky Mountain Power Utah Report Residential Programs effectiveness of the program, identifying and contracting with the program administrator through a competitive bid process, establishing and monitoring program performance and compliance, and recommending changes in the terms and conditions set out in the tariff. Program Administration The Home Energy Savings program is administered by PECI. PECI, a private non-profit corporation, has been designing and implementing energy efficiency programs since PECI is responsible for the following: Retailer and trade ally engagement PECI identifies, recruits, supports and assists retailers to increase the sale of energy efficient lighting, appliances and electronics. PECI enters into promotion agreements with each lighting manufacturer and retailer for the promotion of discounted compact fluorescent lights ( CFLs ). The agreements include specific retail locations, lighting products receiving incentives and not-to-exceed annual budgets. Weatherization and HVAC contractors engaged with the program are provided program materials, training and receive regular updates. Inspections PECI recruits and hires inspectors to verify on an on-going basis the installation of measures. Summary of the inspection process is in Appendix 5. Incentive processing and call-center operations PECI receives all requests for incentives, determines whether the applications are completed, works directly with customers when information is incorrect and/or missing from the application and processes the application for payment. Program specific customer communication and outreach A summary of the communication and outreach conducted by PECI on behalf of the Company is outlined in the Communication, Outreach and Education section. Infrastructure The Company through its third party vendor is working with 282 retailers to promote CFLs and light-emitting diode lights ( LEDs ). See Appendix 6 for the list of lighting, appliance, HVAC and weatherization retailers. Evaluation During 2013, a process and impact evaluation was initiated by a third party evaluator for program years The process and impact evaluation was completed in first quarter of Refrigerator Recycling The Refrigerator Recycling program, also known as See ya later, refrigerator, is designed to decrease electricity use through voluntary removal and recycling of inefficient refrigerators and freezers. Participants receive a $30 incentive for each qualifying refrigerator or freezer recycled Page 26 of 50

27 Rocky Mountain Power Utah Report Residential Programs through the program and an energy-saving kit which includes two CFLs, a refrigerator thermometer card, energy-savings educational materials, and information on other efficiency programs relevant to residential customers. Program participation by measure is provided in Table 19. Table 19 Eligible Program Measures (Units) Measures 2013 Total 2013 site Refrigerator Recycling 8,719 10,593,585 Freezer Recycling 1,977 1,743,714 Energy Savings Kit 10, ,087 Program performance results for January 1, 2013 December 31, 2013 are provided in Table 20. Table 20 Cost Effectiveness for Refrigerator Recycling Benefit/ Net Benefits Cost Ratio Total Resource Cost Test plus 10 percent 2.19 $1,931,609 Total Resource Cost Test 1.99 $1,608,900 Utility Cost Test 1.99 $1,608,900 Participant Cost Test 26 N/A $8,409,396 Rate Payer Impact 0.52 ($3,034,822) In 2013, more than 1.3 million pounds of metal, 213,920 pounds of plastics, 13 tons (26,157 pounds) of tempered glass and the capture, recovery or destruction of more than 13,909 pounds of ozone depleting Chlorofluorocarbons (greenhouse gases) and Hydro fluorocarbons, commonly used in refrigerants and blowing agents for polyurethane foam insulation. The Carbon Dioxide and Equivalent carbon dioxide avoided from the atmosphere was in excess of 40,000 metric tons. Program Management The program manager who is responsible for the Refrigerator Recycling program in Utah is also responsible for the Refrigerator Recycling program in California, Idaho, Washington and Wyoming and Home Energy Savings program in Utah, California, Idaho, Washington, and Wyoming. For each program and in each state the program manager is responsible for the cost effectiveness of the program, identifying and contracting with the program administrator through a competitive bid process, establishing and monitoring program performance and compliance, and recommending changes in the terms and conditions set out in the tariff. 26 Participants in program incur no costs. Page 27 of 50

28 Rocky Mountain Power Utah Report Residential Programs Program Administration The Refrigerator Recycling program is administered by JACO Environmental ( JACO ). JACO started over 20 years ago in Snohomish County, north of Seattle, Washington, JACO has grown to become one of the largest recyclers of house-hold appliances in the United States. The Company contracts with JACO to provide customer scheduling, pick-up, incentive processing and marketing services for the program. JACO also ensures that over 95 percent of the components and materials of the discarded appliance are either recycled for beneficial uses or eliminated in an environmentally responsible way. The remaining 5 percent can then be productively used as fluff to facilitate the decomposition of biodegradable landfill material. JACO Environmental is responsible for the following: Appliance handling JACO handles all customer and field service operations for the program including pick-up of refrigerators and freezers from customers, transporting the units to the de-manufacturing facility and recycling of the appliances. Incentive processing and call-center operations Customer service calls, pick-up scheduling and incentive processing are handled by JACO. Program specific customer communication and outreach Working in close coordination with the Company, JACO handles all the marketing for the program. The program is marketed through bill inserts, customer newsletters and TV, newspaper and online advertising. Independent third party contract inspectors are employed by the Company to ensure JACO s performance. The summary of the inspection process is included in Appendix 5. Infrastructure Refrigerators and freezers are collected from residential customers and trucked to JACO facility in Salt Lake City, Utah for disassembly and recycling. Evaluation In October 2013, a process and impact evaluation was completed by a third party evaluator for program years The impact evaluation provided data on the gross realized savings and the Net-to-gross ( NTG ) ratio. The process evaluation investigated participant satisfaction, implementation and delivery processes, marketing methods and quality assurance. The Company s response to the recommendations and web link to the evaluation report are included in Appendix 7. Page 28 of 50

29 Rocky Mountain Power Utah Report Residential Programs New Homes The New Homes program provides incentives for new homes and multi-family units meeting the specific energy efficiency requirements as outlined in the program s tariff. The New Homes program has shown success in helping improve building practices in Utah. To be eligible for program incentives, a home must have installed qualifying stand-alone measures, or a residence must meet the minimum standards and certifications set by the program, such as a certification of ENERGY STAR. The New Homes program received three awards and recognition in The program was included in the American Council for an Energy-Efficient Economy s Third National Review of Exemplary Programs. The program earned special recognition for Innovative Marketing & Outreach Strategies as part of ENERGY STAR s Profiles in Leadership. The program was awarded an ENERGY STAR 2013 Leadership in Housing award. Program participation results for 2013 are provided in Table 21. Table 21 New Homes Program Participation New Homes Measure Participation Units 15 SEER / 12 EER / TXV MF SEER / 12 EER / TXV SF EISA - 80% E* lighting <2000 SF EISA - 80% E* lighting > 1500 MF EISA - 80% E* lighting >3500 SF EISA - 80% E* lighting 2000 to 3500 SF EISA - 80% E* lighting 850 to 1500 MF EISA - 80% E* lighting <850 MF EISA - 80% E* lighting <2000 SF EISA - 80% E* lighting <850 MF EISA - 80% E* lighting >1500 MF EISA - 80% E* lighting >3500 SF EISA - 80% E* lighting 2000 to 3500 SF EISA - 80% E* lighting 850 to 1500 MF 246 2X6 R-20 Walls MF 760 2X6 R-20 Walls SF % E* lighting < 2000 SF 28 80% E* lighting < 850 MF 71 80% E* lighting > 1500 MF 4 80% E* lighting > 3500 SF 31 80% E* lighting 2000 to 3500 SF 66 80% E* lighting 850 to 1500 MF 47 Dishwasher EF MF 889 Dishwasher EF SF 1050 ENERGY STAR V3 - Whole Home Option MF 271 ESTAR 2.5 SF 9 ESTAR 3.0 SF 405 Evap Prem Eff non-ducted SF 1 Page 29 of 50

30 Rocky Mountain Power Utah Report Residential Programs New Homes Measure Participation Units GSHP E* 17 EEF 3.6 COP SF 3 High Performance ESTAR v3 MF 3 High Performance ESTAR v3 SF 17 HVAC-QI Contractor cert SF 2 HVAC-QI Contractor cert w ECM SF 2 HVAC-QI Rater cert MF 424 HVAC-QI Rater cert SF 366 HVAC-QI Rater cert w ECM MF 10 HVAC-QI Rater cert w ECM SF 83 IECC 2009 Builder cert SF 28 IECC 2009 Rater cert MF 510 IECC 2009 Rater cert SF 345 Refrigerator 10%> Energy Star MF 43 Refrigerator 10%> Energy Star SF 64 R-5 Windows SF 1 90% Energy Star CFL's MF (Old Program) 7 Tier 1 MF (Old Program) 8 Tier 2 MF (Old Program) 3 TOTALS 7,917 Program performance results for January 1, 2013 December 31, 2013 are provided in Tables 22 and 23. Table 22 Cost Effectiveness for New Homes Scenario 1 27 Benefit/Cost Net Benefits Ratio Total Resource Cost Test plus 10 percent 0.56 ($1,185,790) Total Resource Cost Test 0.51 ($1,324,928) Utility Cost Test 0.98 ($22,138) Participant Cost Test 1.26 $554,156 Rate Payer Impact 0.43 ($1,852,334) Table 23 Cost Effectiveness for New Homes Scenario 2 28 Benefit/Cost Net Benefits Ratio Total Resource Cost Test plus 10 percent 0.58 ($1,118,355) Total Resource Cost Test 0.53 ($1,257,493) Utility Cost Test 1.03 $45,297 Participant Cost Test 1.26 $554,157 Rate Payer Impact 0.44 ($1,784,899) 27 Scenario expenditures including final allocation portion from 2011 program design efforts. 28 Scenario expenditures excluding final allocation portion from 2011 program design efforts. Page 30 of 50