20081124_2418.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
DEPUTY ATTORNEY GENERAL

DATE: NOVEMBER 20, 2008

SUBJECT: IDAHO POWER’S APPLICATION TO MODIFY ITS RULE H (LINE
EXTENSION) TARIFF RELATED TO NEW SERVICE ATTACHMENTS
AND DISTRIBUTION LINE INSTALLATIONS, CASE NO. IPC-E-08-22

On October 30, 2008, Idaho Power Company filed an Application with the
Commission seeking authority to modify its Rule H tariff relating to new service attachments and
distribution line installations and alterations. Specifically, the Company wishes to increase the
charges for new service attachments, distribution line installations and alterations. The Company
explained that the changes to the tariff would shift installation costs from the general body of
ratepayers to new customers requesting construction for these services. The Company requests
that the Application be processed by Modified Procedure and that the proposed changes be
approved no later than March 1, 2009, to become effective 120 days later.
THE APPLICATION
Idaho Power proposes modifications to its existing Rule H tariff that reorganize
sections, add or revise definitions, update charges and allowances, modify refund provisions, and
delete the Line Installation Agreements section. Section titles were arranged to more closely
reflect the manner in which customers are charged and to better match the arrangement of the
Company’s cost estimation process. Definitions have been added or revised to provide clarity.
Idaho Power proposes separate sections for “Line Installation Charges” and “Service
Attachment Charges.” Within the Service Attachment Charges section, Idaho Power separated
the overhead and underground service attachments, updated the charges for underground service
attachments less than 400 amperages, and outlined the calculation for determining underground
service attachment charges greater than 400 amperages. The “Vested Interest Charges” section
DECISION MEMORANDUM 2
was reworded and some definitions were removed. The available options and calculations in this
section were not changed. Engineering charges, temporary service attachment charges, and
return trip charges were updated in the “Other” Charges section.
The Company asserts that the Line Installation and Service Attachment Allowances
section was modified and updated to reflect current costs associated with providing and installing
“standard terminal facilities” for single-phase and three-phase service attachments and line
installations. Idaho Power proposes one credit allowance toward the cost of terminal facilities
and line installations and modifies Company-funded credit allowances inside subdivisions. The
Company maintains that these significant revisions to the tariff specifically address the
Company’s and Commission’s desire to recover more of the cost for service attachments,
distribution line installations, and alterations outside of base rates.
Idaho Power proposes Vested Interest Refunds for subdividers and new applicants
inside subdivisions for additional line installations that were not part of the initial line
installation.1 The Company also proposes to change the availability of Vested Interest Refunds
from a five-year period to a four-year recovery period and discontinue all subdivision lot
refunds.
Idaho Power seeks authority to add a section entitled Relocations in Public Road
Rights-of-Way to address funding of roadway relocations required under Idaho Code § 62-705.
The section would identify when and to what extent the Company would fund roadway
relocations. Specifically, this section would outline road improvements for the general public
benefit, road improvements for third-party beneficiaries, and road improvements for a joint
benefit.
The Company asserts that it has undertaken a special communications effort to advise
builders and developers in its service territory of the changes proposed by this Application. The
Company requests that the proposed changes to its Rule H tariff be approved no later than March
1, 2009. Idaho Power requests that the Commission’s Order set an effective date 120 days
beyond the date of the final Order to allow the Company time to train employees, reprogram
computerized accounting systems, and reconstruct internal processes.

1 Subdividers and new applicants will continue to be eligible for Vested Interest Refunds outside of subdivisions.
DECISION MEMORANDUM 3
STAFF RECOMMENDATION
Staff has reviewed the Application and recommends that the case proceed by
Modified Procedure. Furthermore, Staff recommends that the Commission establish a 14-day
intervention deadline. After the deadline for intervention, Staff would convene an informal
conference with the parties to discuss discovery and any additional scheduling matters.
COMMISSION DECISION
1. Does the Commission find that the public interest may not require a hearing to
consider the issues presented, and that this proceeding may be processed under Modified
Procedure?
2. Does the Commission wish to allow a 14-day intervention period?
3. Does the Commission wish for Staff to conduct an informal conference with all
parties following the deadline for intervention to establish a schedule?

M:IPC-E-08-22_ks