Dive Brief:
- Idaho Power Co. has asked state regulators for a prudency review on $35.2 million it spent last year on efficiency and demand response programs in an effort to recover its rates.
- The application will not impact rates, as most of the programs are funded through a 4% rider on bills.
- According to regulators, about $28.5 million of the total is related to energy efficiency and would be recovered through the rider. The remaining $6.7 million includes demand reduction incentive payments to program participants and if approved would be recovered through an annual Power Cost Adjustment.
Dive Insight:
While it will not have an impact on rates, the Idaho Public Utilities Commission will take public comment on the prudency review through July 14. The commission generally allows Idaho Power an opportunity to recover its demand response expense through rates if they are found to be prudently incurred.
Regulators said in a statement announcing the review that energy efficiency programs resulted in 162,533 MWh of savings, including 21,900 MWh from Idaho Power’s participation in market initiatives through the Northwest Energy Efficiency Alliance. The largest portion of efficiency savings came from the commercial and industrial sectors, which contributed 102,074 MWh, followed by the residential sector (24,532 MWh), and then the irrigation sector (14,027 MWh).
Demand response programs helped save 376 MW, saving customers about $1.6 million.
All the programs must pass cost-effectiveness tests, including showing that all customers benefit from the programs and not just those who directly participate.
