May 13, 2015 VIA ELECTRONIC FILING

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1 Lisa D. Nordstrom Lead Counsel May 3, 205 VIA ELECTRONIC FILING Public Utility Commission of Oregon Filing Center 550 Capitol Street NE, Suite 25 P. O. Box 248 Salem, OR RE: Tariff Advice No Modifications to Schedule 72 Heating and Cooling Efficiency Program Cancellation of Schedule 7 Ductless Heat Pump Pilot Program Attention Filing Center: Idaho Power Company ( Idaho Power or Company ) herewith transmits for filing a revision to Schedule 72, Heating and Cooling Efficiency Program ( Heating and Cooling Program ), adding new measures and incorporating Schedule 7, Ductless Heat Pump Pilot Program. As a result of merging the two programs, Idaho Power is requesting Schedule 7 be cancelled. This proposal will increase energy efficiency offerings for Oregon customers and consolidate heating and cooling measures into one program tariff for ease of implementation. The Heating and Cooling Program provides incentives to residential customers for the purchase and proper installation of qualified heating and cooling equipment. The eligible measures in 204 included air-source heat pumps, open-loop water-source heat pumps, and evaporative coolers. There were two Oregon customers who received incentives in this program in 203 and six in 204. More information about the Heating and Cooling program can be found at Idaho Power is proposing to add three new measures to the Heating and Cooling Program and consolidate the existing single measure from the Ductless Heat Pump Pilot Program into the Heating and Cooling Program. A total of four measures will be added to the Heating and Cooling Program. A description of these measures, eligibility requirements, delivery methods, and proposed incentive levels are shown below. Schedule 72 Single Family Home Duct Sealing. This measure involves sealing the heating and cooling air ducts in single-family homes. Improvements are made to ducts in existing single family homes to reduce air leakage. Duct sealing must be carried out in accordance with the Bonneville Power Administration prescriptive duct sealing specifications. To qualify for the Single Family Home Duct Sealing measure homes must have electric forced air heat or a heat pump and customers must select a participating contractor from the list available on the program website. The incentive for this measure, paid to the participant, is $350 per home.

2 Public Utility Commission of Oregon Filing Center May 3, 205 Page 2 Electronically Commutated Air Handler Motor. The existing air handler blower in most home heating / air conditioning systems contains a motor type called a permanent split capacitor ( PSC ) motor. This measure switches out the less efficient PSC motor for a more recently efficient developed, electronically commutated air handler motor ( ECM ) usually at the time of the existing motor failure. The ECM must be installed by a licensed contractor. The incentive for this measure is $50 to the participant and $50 to the contractor. The larger incentive to the contractor is designed to encourage contractors to install an ECM when replacing failed motors. To qualify for the ECM measure, homes must have electric forced air heat, oil or propane or natural gas forcedair heat, or a heat pump. Residential Whole House Fan. A whole house fan is a high volume air fan that is mounted in the ceiling of a hallway or other location accessing a home s attic. To operate the fan, the home owner opens windows or other avenues to outside air, turns off the air conditioner, and turns on the whole house fan. This causes the warm air inside the home to be blown into the attic. The attic exhausts this warm air through its existing roof vents. As a result, the home draws in cooler air through the open windows during the evening hours, reducing the need to run the more energy intensive air conditioning system. The residential whole house fan must be installed by a licensed contractor. To qualify for the Residential Whole House Fan measure, homes must have central air conditioning, zonal cooling, or a heat pump. It is anticipated that this measure will be offered to new construction customers in the future. The incentive for this measure is $200 to the participant. Ductless Heat Pump ( DHP ). This measure is the same as is currently available in Schedule 72. The ductless heat pump installed must be a split system heat pump with an inverterdriven variable speed compressor, a variable speed outdoor fan, and a mullti-speed or variable speed indoor blower. The equipment must be installed with the indoor unit located in the main living area of the house. Indoor units using any type of field-installed duct system are not eligible. This measure is available to residential customers living in single family residences, manufactured homes, and duplex, triplex, or fourplex homes. To qualify for the Ductless Heat Pump measure, homes must have electric baseboards, electric ceiling cable, or electric wall units. Customers must select a participating contractor from the list available on the program website. At this time participating homes cannot be in new construction. The incentive for this measure is $750 to the participant. Implementation For all measures, qualifying homes include primary residences, vacation homes, and rentals served by Idaho Power. Only one incentive payment per measure is allowed per customer, per home. Depending on the measure, the participant or the contractor submits the application for an incentive. Upon review and approval, Idaho Power mails an incentive check to the participant or the contractor. Idaho Power proposes that all four measures be rolled out at the same time across both the Oregon and Idaho service areas. New program incentive application forms and worksheets will be developed to incorporate all new and existing available measures. Contractors will be educated on these program changes via , phone calls, and face to face interaction, detailing the new measures along with changes to the presentation of existing measures with respect to the forms and website layouts. Customer marketing will include a combination of direct mail, bill inserts, newspaper ads, online behavior ads, social media, and trade shows.

3 Public Utility Commission of Oregon Filing Center May 3, 205 Page 3 Cancel Schedule 7 With this filing, Idaho Power proposes to cancel Schedule 7, Ductless Heat Pump Pilot Program. Idaho Power filed and received approval for the creation of Schedule 7 in 2006 upon joining the Northwest DHP Pilot Program. The purpose of the pilot program was to promote the new DHP technology in the region, to identify the energy savings when compared to other electric heat technologies, and to obtain customer satisfaction and behavioral patterns regarding the units. Evaluations of the regional pilot program occurred from 2009 through 204 and are located on the Northwest Energy Efficiency Alliance website. In 203, the Regional Technical Forum ( RTF ) approved ductless heat pump savings estimates. While the program has completed several years of successful program implementation, cost-effectiveness is still in question, particularly in climate zones with low savings values. The RTF is still reviewing savings for DHPs and attempting to quantify applicable non-energy benefits. In OPUC Docket No. UM 70, Idaho Power Company s Request for Cost-Effective Exceptions for Specific Demand-Side Management Electric Measures and Programs, Idaho Power is requesting an exception for DHP measures. DHP measures produce significant non-energy benefits and are included for consistency with other DSM programs in the region. Now that the DHP pilot is fully evaluated, there is no longer a need for pilot program status and a standalone program. Idaho Power proposes the DHP measure be incorporated into the Heating and Cooling Program and therefore Schedule 7 can be cancelled. The Company respectively requests that Schedule 7 be cancelled on June 29, 205, and that the attached modified Schedule 72 become effective on June 30, 205. If you have any questions regarding this filing, please call Darlene Nemnich at (208) or dnemnich@idahopower.com. Sincerely, LDN/kkt Enclosures Lisa D. Nordstrom Lead Counsel

4 IDAHO POWER COMPANY SECOND REVISED SHEET NO. 7- CANCELS P.U.C. ORE. NO. E-27 FIRST REVISED SHEET NO. 7- SCHEDULE 7 DUCTLESS HEAT PUMP PILOT PROGRAM SERVICE DISCONTINUED (D)(N) Issued by IDAHO POWER COMPANY OREGON By Gregory W. Said, Vice President, Regulatory Affairs Issued: May 3, West Idaho Street, Boise, Idaho Effective with Service Rendered on and after: Advice No June 29, 205

5 IDAHO POWER COMPANY SECOND REVISED SHEET NO. 72- CANCELS P.U.C. ORE. NO. E-27 FIRST REVISED SHEET NO. 72- AVAILABILITY SCHEDULE 72 HEATING AND COOLING EFFICIENCY PROGRAM Service under this schedule is available to residential Customers and owners or managers of rental properties throughout the Company s service area within the State of Oregon that are served under a residential electric service schedule. This schedule is also available to home builders and developers who construct homes in the Company s service area within the State of Oregon that take service under a residential electric service schedule upon completion. APPLICABILITY This program is applicable to site-built or manufactured homes served under a residential electric service schedule and sited in the Company s Oregon service territory. PROGRAM DESCRIPTION The Heating and Cooling Efficiency Program provides incentives for the installation of qualified heating and cooling equipment and for having energy saving services performed. INCENTIVE STRUCTURE To be eligible for an incentive for heat pumps and single family home duct sealing, the installation must be performed by an Idaho Power authorized participating contractor who has received program training and has signed an agreement with the Company. Eligibility for an incentive for evaporative coolers does not require a contractor. To be eligible for an incentive for the electronically commutated air handler motor ( ECM ) and the residential whole house fan, a licensed contractor must perform the services, but not necessarily an Idaho Power authorized participating contractor. Products and services performed must meet the requirements of the Heating and Cooling Efficiency Program as outlined in the Program Requirements Manual and individual measure worksheets. To view a list of the participating contractors, a current Program Requirements Manual, and individual measure worksheets, visit Equipment/Service Eligibility Requirements A. Replacing an Existing Air Source Heat Pump Participant Incentive $ $ Contractor Incentive Notes High Efficiency Air Source or Open Loop Water Source Heat Pump: Proper Sizing & Installation B. Replacing an Existing Electric Forced Air Furnace or Non-ducted Electric Resistance System C. Replacing an Existing Oil Forced Air Furnace or Propane Forced Air Furnace $ $, $ $,000.00, 2, 2 D. New Construction $ $, (M) Issued by IDAHO POWER COMPANY OREGON By Gregory W. Said, Vice President, Regulatory Affairs Issued: May 3, West Idaho Street, Boise, Idaho Effective with Service Rendered on and after: Advice No June 30, 205

6 IDAHO POWER COMPANY SECOND REVISED SHEET NO CANCELS P.U.C. ORE. NO. E-27 FIRST REVISED SHEET NO INCENTIVE STRUCTURE (Continued) SCHEDULE 72 HEATING AND COOLING EFFICIENCY PROGRAM (Continued) Evaporative Cooler: Purchase & Installation Unit must be equal to or greater than 2500 CFM n/a Single Family Home Homes must have electric forced-air heat or a Duct Sealing heat pump $ $0 3 Electronically Commutated Air Handler Motor (ECM) Homes must have electric forced-air heat, oil or propane or natural gas forced-air heat, or a heat pump $50.00 Residential Whole House Fan Ductless Heat Pump Homes must have central air conditioning, zonal cooling, or a heat pump Homes must have electric baseboards, electric ceiling cable, or electric wall units $ $0 3 $ $0 Notes:. Must be an existing, single-family, site-built home, an existing multi-family home with 4 or fewer units, or an existing manufactured home. 2. Natural gas must not be available. 3. Must be existing single-family site-built home. (M)(T) (N) (N) (N) QUALIFICATIONS In order to receive a financial incentive under this program, each participating customer must complete the following steps:. Read and understand all website information found on for the incentives of interest. 2. Hire participating contractor or licensed contractor where required. 3. Have equipment installed or services performed. 4. Submit or assist in the contractor s submittal of incentive forms. Issued by IDAHO POWER COMPANY OREGON By Gregory W. Said, Vice President, Regulatory Affairs Issued: May 3, West Idaho Street, Boise, Idaho Effective with Service Rendered on and after: Advice No June 30, 205