Idaho Power just announced a major expansion of their energy efficiency programs, effective January 2015. They're adding new commercial rebates and completely revamping Schedule 19 for large industrial customers. The interesting part is they're funding it through a new rider that appears on all customer classes. For my commercial accounts, it's adding about $0.0015/kWh. Anyone else seeing utilities shift efficiency program costs to riders instead of base rates?
Idaho Power implementing new energy efficiency programs - worth watching
Warren, we're seeing the same thing here in Missouri with Ameren. They moved all their efficiency costs to Rider EAM last year. The advantage is it's more transparent, but it also makes it easier for them to increase the charges without a full rate case. Have you looked at the cost-effectiveness testing for Idaho Power's new programs?
This is interesting timing. Georgia Power is proposing something similar for 2015. They want to move $45 million in efficiency program costs to a separate tariff rider. The question is whether customers actually see net savings or if it's just cost-shifting. Warren, what's the projected impact on typical commercial bills?
Rachel, for most of my commercial accounts it's pretty minimal - maybe $15-30 per month. The real benefit comes if they participate in the rebate programs. Idaho Power is offering up to $50,000 in rebates for lighting upgrades and $0.08/kWh saved for custom efficiency projects. The payback period is usually under 3 years if you can hit the efficiency targets.
Warren, that sounds like a decent program. Down here in Louisiana, Entergy's efficiency programs are pretty weak. We get maybe $0.02/kWh for verified savings and the paperwork is a nightmare. Are Idaho Power's verification requirements reasonable? Some utilities make you jump through so many hoops that small businesses can't participate effectively.