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Demand Side Programs

Demand Side Programs. Ric Gale Idaho Power Company April 18, 2001. Irrigation “Buy Back” Program Overall Objectives. Solicit voluntary curtailment of load from large irrigation customers Target load reductions during March 1 through November 30 timeframe

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Demand Side Programs

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  1. Demand Side Programs Ric Gale Idaho Power Company April 18, 2001

  2. Irrigation “Buy Back” ProgramOverall Objectives • Solicit voluntary curtailment of load from large irrigation customers • Target load reductions during March 1 through November 30 timeframe • Obtain maximum amount of load reduction at the lowest cost 1

  3. Bid Process • RFP sent to irrigation customers with a minimum of 100,000 kWh annual energy consumption • Workshops held throughout the service area to explain the program and answer questions • Bids due by February 28, 2001 • Received bids from approximately 520 customers 2

  4. Bids Accepted • Accepted 435 bids from Idaho irrigators • Established 15¢ kWh as the maximum bid price • PUC modified program to allow customers who bid over 15¢ kWh to revise their bids to 15¢ kWh; also required IPCo to pay 15¢ kWh to all customers who bid less than 15¢ kWh • Approximately 500,000 MWh, or 250 MWa, available through the program (30% of irrigation load) 3

  5. Energy Reductions • Energy reductions actually obtained will be determined by comparing the base energy amount to the energy actually consumed on a monthly basis • Base energy amount equal to the 5-year average of historical use; adjustments made where less than five years of history available or where changes in horsepower justified 4

  6. Payments to Customers • Monthly payments will be made based on proportionate amount of energy reduction actually received as long as 95% of the committed energy reduction is provided • Payment will equal 75% of the calculated amount • 25% holdback will paid in November after all provisions of the agreement have been met • Customers can choose to defer payments to 2002 • Penalty of 30¢ kWh will be imposed if less than 95% of committed energy reduction provided 5

  7. Large Power “Buy Back” Program • Available to customers who can reduce load by at least 1,000 kW • Bid price for specific hours presented to customers; customers decide which hours and how much load to curtail • Internet-based software manages the bid/confirmation/reconciliation process • Anticipate approximately 5 to 7 participants with peak reduction of 30 MW

  8. Astaris Special Contract • IPCo and Astaris have entered into an agreement whereby IPCo will buy back 50 MW of first block power from Astaris beginning April 1 at 86.5% of market • Is true buy back in that 50 MW is part of take-or-pay agreement • Average price under the agreement is $159/MWh • Approved by IPUC on March 28 • Will provide 330,000 MWh in 2001

  9. System Benefits • Demand-side programs may cover as much as 330 MW during peak months this summer • Irrigation program may save $50 million in power supply costs when compared to market purchases • Astaris will save over $21 million over the contract life

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