The Fifth Power Plan, released by the Northwest Power and Conservation Council in December 2004, calls for the acquisition of 700 average megawatts (aMW) of conservation in the region between 2005 and 2009. Following is nwcurrent’s latest installment in a series examining how the region’s utilities are addressing the council’s recommendations. This month, the spotlight turns to Idaho Power, headquartered in Boise.

Idaho Power’s demand-side management (DSM) efforts are steadily picking up steam after being dormant since the end of the 1990s when, like most utilities, it was unsure where deregulation was headed. With increased spending on energy-efficiency programs, the utility has seen energy savings jump from almost 6,000 megawatt-hours (MWh) in 2003 to more than 41,000 MWh in 2005. 

In 2005, the utility spent $6.7 million on DSM — up from $4.2 million in 2004 and $2.8 million in 2003. The $6.7 million includes about $450,000 paid to the Northwest Energy Efficiency Alliance for market transformation efforts, to which Idaho Power attributed 20,054 MWh of energy savings.

According to Theresa Drake, Idaho Power's manager of customer relations and research, the increased emphasis on demand-side management programs is driven by the company’s Integrated Resource Plan (IRP) and its Energy Efficiency Advisory Group. The group is made up of representatives from all customer classes, environmental groups and regional energy-related organizations.

“We have a process that identifies energy-efficiency resources and demand-side opportunities as part of the IRP process,” she said. “We have a number of conditions within Idaho and Oregon that addresses customer growth. One way the company recognizes to meet that growth in the system is with demand side management.”

Idaho Power funds the bulk of its DSM programs through a 1.5 percent conservation charge (also known as an energy-efficiency rider) on customer bills. The remainder comes from Bonneville Power Administration’s Conservation and Renewable Discount program and its own base rates.

The conservation charge began in Idaho in 2002 at 0.5 percent. In August 2005, Idaho Power began a 1.5 percent charge for its small number of Oregon customers. At about the same time, the Idaho Public Utilities Commission approved the company’s request to increase the Idaho rider from 0.5 percent to 1.5 percent.

The rider fund created from the conservation charge is no small change. Anne Alenskis, an Idaho Power spokeswoman, said Idaho customers contribute just under $6 million a year. According to the company’s 2005 DSM annual report, it spent about $4.5 million in Idaho rider funds on DSM programs that year.

While Idaho Power has made progress since 2002, when the Idaho Public Utility Commission mandated it to establish the Energy Efficiency Advisory group, some think it could be moving faster.

“Since then, it’s been a long and steady ramp up of programs, with more spending and programs rolled out,” said Bill Eddy, an attorney with Portland-based Advocates for the West. “The main problem now is there is a backlog of several million dollars that they haven’t spent.”

Ken Miller, Idaho energy advocate with the Northwest Energy Coalition in Boise, agreed.

“We consider a $6.5 million balance too large,” he said. “I don’t want to dismiss what they’re doing, but by the end of the year the proof will be in the pudding whether this balance is being put into these programs.”

Drake defended the utility’s efforts and said Idaho Power plans to spend faster than it has in the past. 

“We go back to the 2004 IRP, which had significant retooling of DSM programs," she said. "That was not that long ago. Programs are still in their early stages and are actually surpassing annual expectations in terms of participation.”

She pointed out that some programs evolve from a pilot basis to make sure they are hitting the target audience. Programs then go to a full offering, based on input from the advisory group. Two pilots that successfully rolled out in Idaho in 2005 were the A/C Cool Credit program and the Irrigation Peak Rewards program. Both address the fact that Idaho Power is a summer-peaking utility — a rarity in the region.

The A/C Cool Credit program reduces air conditioning load demand by radio-controlled switches that cycle residential central air conditioning systems on and off according to a predetermined schedule. Participating customers receive $7 off their monthly bills. In 2005, about 2,300 air conditioning units were enrolled. About 5,000 are participating in 2006, according to Alenskis. She said the goal is to eventually enroll 40,000.

Another solution to summer peaking is the Irrigation Peak Rewards program. About 900 metered irrigation points of service are participating in 2006. Peak energy savings in 2005, when slightly fewer participated, were more than 40 megawatts (MW).

Energy-efficiency programs accounted for 56 percent of the company’s DSM expenses in 2005. Most of the money was spent on weatherization assistance, industrial efficiency and the Irrigation Peak Rewards programs. By far, efforts in the industrial sector scored the most savings: more than 12,000 MWh. 

Drake attributed the success to the advisory group, which maintains representatives from the industrial sector.

“We expect the same results in 2006," she said. "We really hit the mark with what their needs are.” 

The program pays large commercial or industrial customers 12 cents per kWh saved per year, or 50 percent of the cost of the efficiency project, up to $100,000 for each site. Alenskis said 24 companies in 31 locations are participating this year, while in 2005 14 companies participated. Among customers taking advantage of Idaho Power’s incentives were ConAgra Foods, Hilex Poly, Idaho State University and St. Luke’s Regional Medical Center.

Idaho Power’s 2006 IRP is due out in September, but its 2004 IRP identified 48 MW of energy efficiency and 76 MW of demand-response resources to be acquired. Drake said the utility surpassed both goals. The 2006 IRP will include more demand-side resources, but she would not say how much until the document is finalized.

“They’re finishing the 2006 IRP and will include more ambitious programs than in the 2004 plan,” Miller said. “The 2004 IRP was better than the 2002, and we anticipate the 2006 to be better yet.”