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Home My WebLink About20080825_2336.pdfDECISION MEMORANDUM TO:COMMISSIONER REDFORD CO MMISSI 0 NER SMITH COMMISSIONER KEMPTON COMMISSION SECRETARY LEGAL WORKING FILE FROM:NANCY HILTON DATE:AUGUST 22, 2008 RE:FORMAL COMPLAINT OF JONATHAN GIBBS On August 14 2008 , the Commission received a "formal" complaint from Jonathan Gibbs against Idaho Power Company. The customer had Idaho Power install new underground service to a cabin in a new subdivision in New Meadows. The initial quote provided by Idaho Power for the installation included a provision for $4 000 in extra costs ifthe Company encounters unusual" trenching conditions. As noted below, the Company s trenching contractor ran into rock conditions " and charged Mr. Gibbs accordingly. In his informal complaint, Mr. Gibbs claims that digging through rock is not unusual conditions. Jonathan Gibbs was unsatisfied with the outcome of the informal procedures to resolve his complaint and has filed this formal complaint. BACKGROUND The customer paid $6 383 in advance of construction. The quote included $4 000 if the Company experienced unusual conditions. Idaho Power charges in Rule H are based on average costs encountered in "normal" conditions. If "unusual" conditions are not encountered, the customer is refunded the amount included in the quote. As part of the cost quote (Attachment A), the customer signed an Unusual Conditions Acknowledgement on May 20 2008. Part of the document states that "These conditions may include but are not limited to ... rock digging. Idaho Power used an outside contractor for the trenching. The total length of the trench was 180 feet, which included 160 feet of rocky trench at $24.49 per foot. The total charge for the unusual conditions was $3 918.40. Mr. Gibbs was refunded the balance of $81.60. Mr. Gibbs DECISION MEMORANDUM - 1 -AUGUST 22, 2008 does not agree with the amount of the refund. He contends that digging through rock is not unusual for that area. Furthermore, he maintains that he was not offered the option to trench himself and that if he had used his own contractor, the charge would have been substantially less approximately $1 500. STAFF RECOMMENDATION Jonathan Gibbs was not satisfied with the outcome of the informal complaint. Consequently, he filed a formal complaint. (Attachment B) See Rules 23, 25 and 54, IDAPA 31.01.01.023 , . 024 and .054. Staff recommends that the Commission issue a Summons to Idaho Power Company and directs the Company to file a response to the issues raised in the complaint. COMMISSION DECISION Does the Commission wish to accept Jonathan Gibbs ' formal complaint? Does the Commission wish to issue a Summons? -11 Nancy Hylton i:ConsumlJonathan Gibbs fonnal complaint DECISION MEMORANDUM - 2 -AUGUST 22, 2008 07/28/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 03/05 IDAHO POWER~ An IDACORP C"m""ny CUSTOMER COST QUOTE IDAHO Customer or Project Name: GIBBS. JONATHAN-URD LINE EXT FROM SECn~R 01)4 TO NE Prepaid Fees De8ign Number:Work Order #: 0000071192 27284188 Credit Totals 616 8401. L.ins Installiltion/UPlJfil.de COBb 2. Company Bettcmnent 3. LIne Installation Allowances a. Customer Cash Allowance b. Terminal Facilities Allowance 1 591 c. Salvage Taxable. Credit 4. Line Installation Cmdlt (CustomQr Provided rl'Qnch) 5. V9stad Intamst Work Order # :: '::::::-c:.::.:: (10' Un~"r c......" _"0,000) 01 8. Net ConatructJon Cost 9. Net V~ted OR Refundable.Constructlon Cost (Limited to 5 years or 4 additional applicsnt5) 10. Construction Cost Not Avallablll for Vesting or Refund 11. Right otWay P9rmlts (NS~) 83~ 8331 0001 83:31 12. Billable Engineering Charges (NSR) (11 Hrs ~ $50 per Hr) 13. Ul1dergfQ~nd Service ClJarge (NSR) 14. Relocation Or Removal Charges (NSR) 101. Relocation or removal with new load. (412) b. Relocation or removal with NO f'ew load (415) c. Non-Taxable Salvage Credit on Relocation or Removal 550 5501 15. Other Charges 16. reeder Charge 17. Sub-Total Non-Refundable Charges 18. t::nglnMrlng FeM 19. R.i(jht of Way Permits (NSR) 20. Te~polO!ry Service Charge (NSR) 21. Total Prepaid Customer Charges . ;::;',:. :~~;QI ' ' ? o if!o'2i:~:.:;:::f; ::;:: ~i/ 22. Idaho Powllr Co. Contribution & Bank Letter of Credit 23. Total Work Order Charg9S $ 3 0071 $ g, 3901 $ 6.383 r d24. Total Customer Payment Due (Line 8 + Line 17) Noms: 1iI:t:1I.ciIL This written quotation shall be binding on the Company for a period of Sixty days (jjO) from the date below indicated, subject to changes in Information provided by the Customer Or changes in the Companys ability to obtain satisfactory rights-of-way or to comply with governmental regulations. Including but not Iim!tM to 1M rUles. regulauons, and tariffS Of the l(laM Public Utilities CommiSSion. The Customer mu5t make payment of the Quote amount not less than thirty (30) days prior to the start of construction. but the Company does not represent that construction wi11 commence within 30 days of receipt of payment The start of construction will be subject to the Company s ability to obtain the necessary labor, materials am:! equipmentlIstomer Signature DeJa ...t:' ~ t) b :if COO 21\eV DI!-O44DD7 Attachment A Decision Memorandum Hilton, N. 8/22/08 Page 1 of 4 07/28/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 05/05 Custom~r Or Project Name; GIBBS, JONATHAN.URD LINE EXT FROM SECTER DD4 TO NE De~ign Number: 0000011192 Work Order #:. 27284188 B~~"'"~~~MW Unusual Conditions Acknowledgement Unusual Conditions are construction conditions not nonnally encountered. These conditions may include, but are not limited to: frost, landscape replacement. road compaction, pavement replacement, chip-sealing, rock digging, boring, nonstandard facilities or construction practices, and other than "'av aila le voltage requirements. I have read arid understand the above definition of Unusual Conditions as set forth in Idaho Power Company s Line Installation tariffl Rule H. I further understand that Idaho Power Company will determine the type and extent of the Unusual Conditions encountered. Unusual Conditions charged for on the Customer Cost Quote sheet, but not encountered , will be refunded to the Customer by Idaho Power Company after the completion of construction. Signed: #k.dZY CL/5tomer Slgnswre Date:5 '- ;? -p" .:J Attachment A Decision Memorandum Hilton, N. 8/22/08 Page 2 of 4 07/28/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 04/05--- An IDACORP Campor\V Idaho Power Company Service Request p&s.; I ~: ~/l~l2.ooa S~J,"V(ce RequeSt Nllwber: 00249395 GJBBS, JONA 'J:'B4.N-URD LINE J:X'J.' FROM S:&CUR DD4 TO N!W J"MT Work Order Number: Z7ZS4188 Request Type:: RS Rate Sch: Reply By: Feeder; NWMS41A Service Location: NEW MEADOWS, ID 8361\4 Required in SetVice Date; 10/1712007 Plartning Centc:rrrearn: MC CALL Eng Hours: 00011 Bng fee Amol1nt(Att 98): $1\1\0. En8 f",~ Amount ( Att 16): Eng Fcc Service AgreementNo: Eug Fe\) Service Agn:ement Dare: Customer No: .1J76?444?~ Contact DatajJ: ;!S2R JONA'J'HAN GlJSUS 91\0:Z SCOJU'TO ST,. BOiSt ID 83709 362~6StSS9"4126 cuS'1'JONA.THAN GJBJ1S 950;! SCOJU'IO ST" UOJSJt ID 83709 3(i~3'6S1859-4126 U'CD FUN'J.'630-7904 Attribute Infonnattoo RES/COM service Voltage: No. OfPbases; KW Motor Load: Largest Motor: 1 Phase KW Demand: :3 Phase K W Demand: Connected KW Lo.ad: 25 Comm"rcinJ Deposit Amount: No, of Meters: 1 Mh". Loc: Ct Loe: Primary OIIlUG: UG Service OH/UG: UG Srv. Owner: ranel Amp Size: 200 NEED pRIMARY LINE EX1'ENSION FROM EXISTING SEclER TO NEW P ADMOUNT TRANSFORMER AN UNPERGROUND EASEMENT IS NEEDED FROM CUSTOI\.1ER. TO ACCQ:MPLISH LINE EXTENTION UNDERGROUND SERVICE CHARGES is NOT INCLUDED IN THIS WORK ORDER CUSTOM TO PROVIDE 3" CONDID! FOR FUTURE UNDERGROUND SERVICE. IPCO Wll,L BE PIGGlNG ALONG EDGE OF CUSTOMERS DRlVEW A Y, BUT DRlVEW A Y IS NOT THERE YET, SO NO PROVISIONS TO REPAIR DRIVEWAY IS IN THIS WORK ORDER. I understand that the infonnation provided above is accurate to the best of my knowledge. 'Changes to load; vol~e; location; etc. result in additional engineering charges. :;Z~ ; r' J;;V~ 5~ ~O ; Client Signature Date F~ility Rep. Signature 5/1~1 g Date Attachment A Decision Memorandum Hilton, N. 8/22/08 Page 3 of 4 07/28/2008 14: 53 IIlIUtO ... ~ POWER. An IDAo:"'~p c;om..nv Project Name: 2083523955 JONATHAN GIBBS PAGE 05/05 Memorandum of Understanding New Residence Work Order Number: 27284188 The quoted prices and credits include these requirements for trench backfill and compaction and the final grade. 1. Standard Compaction 2. High (or 95%) Compaction 3. Final Grade DE'.\. 040 (a/os) Standard compaction is required in all areas that do not require high compaction. For standard compaction, backfill with the native !;Ioi! and "wheel-roll" the trench. If the soil is "loamy" or do65 not compact well, the 5poils must be hauled off and replaced with 3/4" road mix up to 12" of the surface. Use native backfill for the top 12" of the trench. I 200 Standard compaction footage Note: The grantor, of the right-of-way may require high compaction in areas that are not under a paved surface Or road but still within the right-or-way. High compaction is required in areas where the trench will be under; A roadway, alley, driveway, or parking lot (whether paved Or unpaved). A paved surface. Where the grantor of the rIght-of-way requires high compacf;on. For high compaction, backfill the trench in 12" lifts with 3/4" road mix or "pit run" andcompact each lift with a "wacker" or other simil;;:Jr compaction device. Native soil is not acceptable as a backfill material for high compaction and must be hauled off. High compaction footage We understand that as of the above named project will beready for facilities to be installed by Idaho Power. All roadways and cable routes must have all grading and subgrading completed by this date. The project must be properly referenced and have grade stakes installed as might be necessary to establish proper elevations and burial depths for Idaho Power facilities. (MTR TYPE, OH OR UG SRV, ETC.) (PLEASE CHECK) The customer will be responsible for' the total cost of any needed relocation , repair, or damage to Idaho Power facilities that results from any subsequent changes in property lines, lot lines, elevations, grades, excavations, or profiles causing improper locations or burial depths of above~ground equipment, below-ground equipment, cable, or conduit. This Memorandum of Understanding is accepted by: fl~ J;4~C mer s Signature S~&'/P8 Date Idaho Power Representatives Signature /(~! 0 Date Attachment A Decision Memorandum Hilton, N. 8/22/08 Page 4 of 4 0/' Nc,V' August 12 2008 :'" (";:;" ".., , .' ; " ',- ',..,-- PUC Secretary and Commission PUC Po Box 83720 Boise, Id 83720-0074 \ L,.8: \ ki, ,' , UTIL1T\f5 I would like to appeal the charge made by Idaho Power for Unusual Conditions on the installation ofthe transformer at our home site at 3742 Van Dom drive in New Meadows. I filed a complaint with Nancy at the PUC office and was told there was nothing she could do for me. A copy of that letter is enclosed. I know you have regulated amounts that Idaho Power can charge for the installation of the transformers but it appears that they have a loophole in the regulations when it comes to Unusual Conditions. Nancy told me that I signed the unusual conditions form and it says that they determine the amount. They are the rate setter, judge and jury, no regulation and nobody to account to. I asked Idaho Power to give me the breakdown of the costs of the unusual conditions and all they told me was they had to dig through 160 feet of Solid Rock. I would like to see what they paid the ouside contractor for that job. It seems to me that they should have to account to someone for charges they make to the public. I agree that I should be charged for legitimate charges that are encountered in my installation but they should not be arbitrary. Can they charge $4000, $6000 , $10000 , is there a limit? Thanks for reviewing my complaint & appeal. c:) -:;, f",' 77.. t? ./~ Jonathan Gibbs 9502 Scorpio Boise, Id 83709 Phone 208-362-3965 Attachment B Decision Memorandum Hilton, N. 8/22108 Page 1 of 2 July 28 , 2008 Nancy PUC PO Box 83720 Boise, Id 83720-0074 This is a complaint for the charge by Idaho Power for Unusual Conditions on our new home site at 3742 Van Dorm drive tLot 2 Van Dom Estates). We applied for a transformer for our new home which sets back in about 275 feet from the road where the power is available, so the transformer had to be located within 150 feet of our house. We contacted Flint McDaniel at the McCall Idaho Power office and filled out the forms necessary to get the job done. When I came to the form on Unusual Conditions I asked Flint if we could dig the trench to put the line in ourselves and he told me no, that was part of Idaho Powers revenue business. When Idaho Power came to put the transformer in, the work was done by an outside contractor. They started digging about 9:30 and all the installation was completed by 5:00 PM.. When you dig in New Meadows you hit fractured rock at about one foot six inches and everyone that works in the area is familiar with the conditions. The crew doing the digging had not brought their smaller backhoe bucket which according to the operator would have made the digging a little easier and quicker. They did encounter some solid rock in places which slowed them down somewhat. No hammer , blasting or additional equipment was needed to complete the job. My excavator (Mr.Thueson) was working that same day and he indicated that if he had done the digging it would have been about $1 500.00. He dug my 80 foot 4 feet deep water line from the house to the well in less than 2 hours. Idaho Power told me at the end of job I would get a detail of the Unusual Conditions charges and a refund of any unused deposit. Six weeks after completion I had not received anything from Idaho Power so I called the office and was told that I would get a call from the McCall office. One week later after no word I called again, then I stopped at the McCall office and was told my $81.00 check was in the mail. I received the check but no explanation of the charges. . I expected a reasonable charge for Unusual Conditions, but $3 919.00 is not reasonable. Yours truly, Jonathan Gibbs 9502 Scorpio Boise, Id 83709 Attachment B Decision Memorandum Hilton, N. 8/22/08 Page 2 of 2