ROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP
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1 ROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP 1407 W. North Temple, Suite 330 Salt Lake City, Utah January 28, 2016 VIA ELECTRONIC FILING AND OVERNIGHT DELIVERY Wyoming Public Service Commission 2515 Warren Avenue, Suite 300 Cheyenne, Wyoming Attn: Chris Petrie Chief Counsel Docket No ET-16 Record No RE: IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER TO CANCEL ELECTRIC SERIVCE SCHEDULE NO REFRIGERATOR RECYCLING PROGRAM Dear Mr. Petrie: Enclosed for filing are an original and four (4 copies of Rocky Mountain Power's (the "Company" Application to cancel Electric Service Schedule No Refrigerator Recycling Program. In addition, the Company has also provided this Application to the Wyoming Public Service Commission ("Commission" pursuant to its electronic filing requirements. The Company has enclosed a check for $5.00 for the Commission's filing fee. All formal correspondence and Staff requests regarding this matter should be addressed to: By (preferred: By regular mail: Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR Informal inquiries may be directed to Michael Snow, Demand Side Management Regulatory Projects Manager, at ( Sincerely, Bill Comeau Director, Demand Side Management Enclosures
2 Daniel E. Solander 1407 W. North Temple, Suite 330 Salt Lake City UT Telephone: ( FAX: ( Attorney for Rocky Mountain Power BEFORE THE WYOMING PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER TO CANCEL ELECTRIC SERIVCE SCHEDULE NO. 117 REFRIGERATOR RECYCLING PROGRAM DOCKET NO ET-16 Record No. COMES NOW, Rocky Mountain Power (the Company, and hereby applies to the Wyoming Public Service Commission (the Commission for authority to cancel Electric Service Schedule 117 Refrigerator Recycling Program (the Program. If approved, Electric Service Schedule No. 117 will be canceled and the Program will no longer be available to customers. The Company respectfully requests an effective date of April 15, In support of this Application, Rocky Mountain Power states as follows: 1. Rocky Mountain Power is a division of PacifiCorp, an Oregon corporation, which provides electric service to retail customers through its Rocky Mountain Power division in the states of Wyoming, Utah, and Idaho, and through its Pacific Power division in the states of Oregon, California, and Washington. 2. Rocky Mountain Power is a regulated public utility in the state of Wyoming and is subject to the Commission's jurisdiction with respect to its prices and terms of electric service to retail customers in Wyoming. The Company serves over 147,000 customers and has Page 1
3 approximately 1,400 employees in Wyoming. Rocky Mountain Power s principal place of business in Wyoming is 2840 East Yellowstone Highway, Casper, Wyoming, Communications regarding this filing should be addressed to: Stacy Splittstoesser Wyoming Regulatory Affairs Manager Rocky Mountain Power 1807 Capitol Ave., Suite 200A Cheyenne, WY stacy.splittstoesser@pacificorp.com Michael Snow Demand Side Management Regulatory Projects Manager Rocky Mountain Power 1407 West North Temple, Suite 330 Salt Lake City, UT michael.snow@pacificorp.com Daniel E. Solander Senior Attorney Rocky Mountain Power 1407 West North Temple, Suite 320 Salt Lake City, Utah daniel.solander@pacificorp.com addressed to: In addition, PacifiCorp respectfully requests that all data requests regarding this matter be By (preferred: By regular mail: datarequest@pacificorp.com michael.snow@pacificorp.com stacy.splittstoesser@pacificorp.com Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR Informal inquiries may be directed to Michael Snow at ( Page 2
4 BACKGROUND 4. On December 3, 2015, the Company filed an Application in Docket No ET-15 to suspend the Program due to the Program vendor, Jaco Environmental ( Jaco, going out of business. The Commission approved the Application pursuant to the open meeting held December 29, 2015, with an immediate effective date. 5. The Company issued a competitive Request for Proposals ( RFP in the third quarter of 2015 for its Home Energy Savings program, and included appliance recycling as part of the RFP. Taking into account the available options for proposed program design and planning, program start-up and transition, marketing, customer service, processing services, data tracking and reporting, quality assurance, and compliance, the Company conducted a cost-effectiveness analysis, attached hereto as Exhibit A, to determine if reinstituting the Program was just and reasonable, and in the public interest. Table 5 below, pulled from Exhibit A, shows that the benefit/cost ratio is below 1.00 at 0.37 when using the Total Resource Cost Test ( TRC. Accordingly, given that the Program does not pass the TRC, the Company requests the Commission approve the cancelation of Schedule 117, effective April 15, Table 5 SYLR Level Cost-Effectiveness Results (Residential and Business Pick-Up Cost-Effectiveness Test Total Resource Cost Test (PTRC + Conversation Adder Total Resource Cost Test (TRC No Adder Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio $ $162,012 $66,180 -$95, $ $162,012 $60,164 -$101, Utility Cost Test (UCT $ $162,012 $60,164 -$101, Rate Impact Test (RIM $322,736 $60,164 -$262, Participant Cost Test (PCT $0 $539,678 $539,678 n/a Lifecycle Revenue Impacts ($/kwh $ Page 3
5 6. The proposed changes to the Program are reflected in the tariff sheets, attached hereto as Exhibit B. CONCLUSION WHEREFORE, Rocky Mountain Power respectfully requests that the Commission issue an order authorizing the Company cancel Electric Service Schedule No. 117 Refrigerator Recycling Program, effective April 15, DATED this 28 th day of January Respectfully submitted, Daniel E. Solander Attorney for Rocky Mountain Power Page 4
6 EXHIBIT A
7 1375 Walnut Street Suite 200 Boulder CO phone fax Memorandum To: From: Eli Morris, PacifiCorp/Rocky Mountain Power David Basak, Navigant Date: January 6, 2016 Re: Cost Effectiveness for the See Ya Later Refrigerator Program Idaho Navigant has developed this memo in response to PacifiCorp s proposed See Ya Later Refrigerator Program cost effectiveness modeling needs in the state of Idaho. This memo presents the cost effectiveness results of individual analysis runs for the state of Idaho. Each scenario is analyzed using modeled assumptions provided by PacifiCorp. These scenarios utilize the following assumptions: Avoided Costs: Navigant utilized the East 71% Plug Loads decrement provided in the 2015 PacifiCorp Integrated Resource Plan along with the Idaho Residential Plug load shape to calculate avoided costs. Modeling Inputs: Navigant utilized per unit measure savings provided by PacifiCorp in the file SYLR RFP C E Inputs.xlsx. Energy Rates: Navigant utilized the 2014 rates provided by PacifiCorp and applied an escalation of 1.9% to arrive at estimated rates for PY2016. Line Loss Factors: Navigant utilized the residential line loss factor throughout the analysis. Evaluation Period: The evaluation period for this analysis uses program year 2016 as year one. This memo will begin by addressing the inputs used in the analysis of the Idaho See Ya Later Program. The cost effectiveness inputs are as follows: Parameter Table 1 SYLR Inputs Value Discount Rate 6.66% Residential Line Loss 11.47% Residential Energy Rate ($/kwh $ Inflation Rate¹ 1.90% ¹ Future rates determined using a 1.9% annual escalator.
8 Memorandum to Eli Morris., PacifiCorp 01/06/2016 Page 2 of 2 Table 2 SYLR Annual Program Costs Measure Group Internal Admin (per unit Unit Labor + Admin (per unit Incentives Total Utility Costs (per unit Gross Customer Costs Residential and Business Pick Up $22.72 $ $50.00 $ $0.00 Table 3 SYLR Savings by Measure Category Measure Group Gross kwh Savings (per unit Realization Rate Adjusted Gross kwh Savings (per unit Net to Gross Ratio Net kwh Savings (per unit Measure Life Residential and Business Pick Up 1, % 1,048 40% Table 4 SYLR Participation by Measure Category Measure Group Annual Units Residential and business pick up and recycle 1st refrigerator/freezer 555 Residential and business pick up and recycle 2nd refrigerator/freezer 45 The PY2016 cost/benefits results at the program level are as follows: Table 5 SYLR Level Cost Effectiveness Results (Residential and Business Pick Up Cost Effectiveness Test Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC + Conversation Adder Total Resource Cost Test (TRC No Adder $ $126,720 $63,639 $63, $ $126,720 $57,854 $68, Utility Cost Test (UCT $ $126,720 $57,854 $68, Rate Impact Test (RIM $275,323 $57,854 $217, Participant Cost Test (PCT $0 $404,582 $404,582 n/a Lifecycle Revenue Impacts ($/kwh $
9 EXHIBIT B
10 ROCKY MOUNTAIN POWER First Revision of Sheet No. B-2 Canceling Amended Original Sheet No. B-2 P.S.C. Wyoming No. 16 Table of Contents Pricing Schedules Wyoming Table of Contents Schedule No. Pricing Schedules 2 Residential Service 15 * Outdoor Area Lighting Service 18 Three-Phase Residential Service Rider 25 Small General Service 28 General Service 33 Partial Requirements Service Large General Service 1,000 KW and Over 37 Avoided Cost Purchases from Qualifying Facilities 38 Avoided Cost Purchases from Non-Standard Qualifying Facilities 40 Irrigation and Soil Drainage Pumping Power Service 46 Large General Service Time of Use - 1,000 KW and Over 48T Large General Service Transmission Delivery - Time of Use - 1,000 KW and Over 51 Street Lighting Service Company-Owned System 53 * Mercury Vapor Street Lighting Service 54 Recreational Field Lighting Restricted 57 * Street Lighting Service Company-Owned System 58 Street Lighting Service Customer-Owned System 59 Dark Sky Rider - Optional 70 Renewable Energy Rider Optional 72 Renewable Energy Rider Optional Bulk Purchase Program 92 Bonus Tax Depreciation 93 REC and SO 2 Revenue Adjustment Mechanism 95 Energy Cost Adjustment Mechanism 111 Home Energy Savings Program 118 Low Income Weatherization Optional for Income Qualifying Customers (continued Issued by Jeffrey K. Larsen, Vice President, Regulation Issued: January 28, 2016 WY_B-2.REV Effective: With service rendered on and after April 15, 2016 Dkt. No ET-16
11 ROCKY MOUNTAIN POWER First Revision of Sheet No. B-2 Canceling Amended Original Sheet No. B-2 P.S.C. Wyoming No. 16 Table of Contents Pricing Schedules Wyoming Table of Contents Schedule No. Pricing Schedules 2 Residential Service 15 * Outdoor Area Lighting Service 18 Three-Phase Residential Service Rider 25 Small General Service 28 General Service 33 Partial Requirements Service Large General Service 1,000 KW and Over 37 Avoided Cost Purchases from Qualifying Facilities 38 Avoided Cost Purchases from Non-Standard Qualifying Facilities 40 Irrigation and Soil Drainage Pumping Power Service 46 Large General Service Time of Use - 1,000 KW and Over 48T Large General Service Transmission Delivery - Time of Use - 1,000 KW and Over 51 Street Lighting Service Company-Owned System 53 * Mercury Vapor Street Lighting Service 54 Recreational Field Lighting Restricted 57 * Street Lighting Service Company-Owned System 58 Street Lighting Service Customer-Owned System 59 Dark Sky Rider - Optional 70 Renewable Energy Rider Optional 72 Renewable Energy Rider Optional Bulk Purchase Program 92 Bonus Tax Depreciation 93 REC and SO 2 Revenue Adjustment Mechanism 95 Energy Cost Adjustment Mechanism 111 Home Energy Savings Program 117 Refrigerator Recycling Program 118 Low Income Weatherization Optional for Income Qualifying Customers (continued Issued by Jeffrey K. Larsen, Vice President, Regulation Issued: January 2814, 2016 WY_B-2.LEG Effective: With service rendered on and after January April 15, 2016 Dkt. No ETR-165
12 ROCKY MOUNTAIN POWER Original Sheet No P.S.C. Wyoming No. 16 Refrigerator Recycling Program Schedule 117 DUE TO CIRCUMSTANCES OUTSIDE THE COMPANY S CONTROL SHEET NO IS SUSPENDED UNTIL FURTHER NOTICE Available In all territory served by the Company in the State of Wyoming. Applicable To all retail tariff Customers taking service under the Company s electric service schedules listed on Schedule 191, or property owners, landlords, property management companies and homeowner associations not listed as the primary account holder on a qualifying rate, in all service territory served by the Company in Wyoming. Retailers in Wyoming meeting the Company s requirements will be eligible to receive retailer incentives for qualified refrigerators and freezers. Purpose Service under this Schedule is intended to decrease residential refrigeration loads through the removal and recycling of inefficient models. Customer Participation Customer participation is voluntary and is initiated by contacting a specified toll-free telephone number or website. Description Participants receive an incentive to discontinue use of their working refrigerators and/or freezers. To qualify for the incentive customers must give up their appliances for recycling. Appliances will be collected and recycled to ensure they are not resold on the secondary market. Qualifying Equipment Working residential refrigerators and freezers that are a minimum of 10 cubic feet and a maximum of 32 cubic feet in size, utilizing inside measurements. (continued Issued by Jeffrey K. Larsen, Vice President, Regulation Issued: January 8, 2016 WY_117-1.E Effective: With service rendered on and after January 1, 2016 Dkt. No ET-15
13 ROCKY MOUNTAIN POWER Original Sheet No P.S.C. Wyoming No. 16 Refrigerator Recycling Program Schedule 117 DUE TO CIRCUMSTANCES OUTSIDE THE COMPANY S CONTROL SHEET NO IS SUSPENDED UNTIL FURTHER NOTICE Provisions of Service 1. Residential, commercial and industrial customers will receive an incentive of $40 for each eligible refrigerator and/or freezer. Incentives will be available on a maximum of two appliances per qualifying customer per year. The Company may offer a packet with written energy efficiency information and instant savings measures. 2. Participating retailers will receive an incentive of up to $20 for each eligible refrigerator and/or freezer. Participating retailers are retailers with a physical location in Wyoming who have signed and abide by the terms of a participation agreement. Participation agreements will be offered to retailers who meet the Company s criteria including the portion of sales to Company s customers. 3. Incentive checks will be mailed within 30 days of the appliance collection date. Electric Service Regulations Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Wyoming, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by Jeffrey K. Larsen, Vice President, Regulation Issued: January 8, 2016 WY_117-2.E Effective: With service rendered on and after January 1, 2016 Dkt. No ET-15
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