Website: www.puc.idaho.gov
Avista proposes pilot program to reduce electrical demand
Avista Utilities is seeking state approval of a program to
reduce electrical demand during times of peak use when electricity is most
expensive. The program would include volunteer customers in the Sandpoint and
Moscow areas.
Under the pilot, Avista customers could choose to have
Internet protocol thermostats and related technology installed in their homes.
The company would present information to participating customers through the
use of a Web portal. The thermostats would be used to reduce electrical demand
during times of peak use.
The company’s application before the Idaho Public
Utilities Commission states the pilot program is projected to cost about
$123,000. But the program will be cost-effective, Avista maintains, because the
utility anticipates it will save about $150,000 in power costs during the
peak-periods when the program is in place. The average wholesale price for
electricity on the highest days of electrical demand can be to two to three
times higher than average-day prices. On July 24, 2006, generation outages and
record regional demand pushed the wholesale market price of power to more than
20 cents per kWh. That compares to peak prices last week at the Mid-Columbia
trading hub of between 5.3 and 6.8 cents per kWh.
Avista will call a minimum of four “events” during the
year when electrical demand is at peak levels. During the peak events,
volunteer customers will participate with Avista in reducing demand, using the
technology Avista provides. Each of the peak events is expected to last for
four hours, but can be extended up to six hours depending on power price and
conditions.
An incentive for customers to participate is the upgraded
equipment and associated features they will receive from Avista. Customers
opting in for a programmable thermostat will receive a thorough inspection of
their heating, ventilating and air conditioning (HVAC) system. Customers with
demand response switches will also receive an audit of all equipment controlled
by the switch plus a $10 a month credit during July, August, December, January
and February.
Avista will evaluate the effectiveness of the program by
examining energy savings, effectiveness of the technology, customer acceptance,
and interaction of peak demand on the company’s overall distribution system.
The commission is taking public
comment on whether the program should be approved. Those wishing to submit
comments must do so by no later than June 27. Comments are accepted via e-mail
by accessing the commission’s homepage at www.puc.idaho.gov
and clicking on "Comments & Questions." Fill in the case number
(AVU-E-07-04) and enter your comments. Comments can also be mailed to P.O. Box
83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.
A full text of the commission’s notice along with the company’s application is available on the commission’s Web site. Click on “File Room” and then on “Electric Cases” and scroll down to the above case number.