The Idaho Public Utilities Commission is once again studying a proposal by Idaho Power to make a program that removes its disincentive to promote energy efficiency permanent.

This so called “decoupling program” would let Idaho Power recover its fixed costs regardless of how much money the company it makes from selling its power each year.

Energy-efficiency advocates say decoupling will help encourage everyone to use less electricity and eliminate pressure for Idaho Power to continually build new power plants to meet the demands of growth.

In the long run, they say, that will save customers money. But in the short run the pilot program has had mixed results in that regard and that’s why the PUC continued it as a pilot program in 2009.

If the actual fixed costs recovered from customers by Idaho Power are less than the fixed costs authorized in the most recent rate case, residential and small-commercial customers get a surcharge. If the company collects more in fixed costs than authorized by the commission, customers get a credit.

In 2007 customers saw a 48 cent monthly cut. But since then they have had to pay slightly more from 56 cents in 2008 to $1.89 in 2010.

If the company has a banner year, the fixed-price adjustment rate for residences and small businesses goes down. If the company doesn't sell much, the rate goes up -- but never more than 3 percent.

We have been in a recession since the pilot program started and that has to have had an impact. AARP has opposed decoupling as a part of a national campaign against the practice.

Advocates of the program argue that even if the fixed price adjustment rose, people’s bills will go down if they use less energy. So if they can use less energy and still do all the things they want everyone benefits under the program.

But energy efficiency advocates like Ralph Cavanaugh, the co-director of the Natural Resources Defense Council's energy program, who persuaded Idaho Power to try the plan in the first place, would like Idaho to go even further. He would like to see Idaho Power be able to make money on energy efficiency programs.

He argues that if Idaho Power can make money for it shareholders by maximizing energy efficiency then they won’t have to build new power plants to make money.

During the pilot project, Idaho Power has increased investments in energy-efficiency programs from $11 million in 2006 to more than $30 million in 2009. It has since matched a federal grant of $47 million for smart grid technologies that will make efficiency programs even easier and done even more, the commission said.

You can comment at the PUC website.