20090504_2553.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEG AL
WORKING FILE
FROM:BRYAN LANSPERY
DATE:APRIL 30, 2009
RE:IDAHO POWER COMPANY TARIFF ADVICE NO. 09-02;
MODIFICATION TO SCHEDULE 40.
On April 10, 2009, Idaho Power Company ("IPC"
, "
Company ) filed modifications to
Schedule 40, Unmetered General Service. This schedule is primarily applicable to public
entities, such as local governments and agencies, with unmetered units that have predictable load
and usage. Such units include, but are not limited to, street and highway lighting, traffic counters
and weather stations. It has come to the Company s attention that at several sites, customers
have installed power strips in order to provide intermittent power for maintenance and repair
equipment. Intermittent power is not captured in the nameplate rating ofthe unit, which is used
to calculate the kWh to be billed. The Company contends that under the current standards, each
site with a power strip would need to be metered and, presumably, moved to a different schedule.
Currently, Idaho Department of Transportation ("ITD") is the only customer IPC has
identified as having power strips or intermittent usage variation at units falling under Schedule
40. According to the Company, ITD has between 70 and 75 sites with power strips. The
Company contends that it has worked with ITD over the course of a year to negotiate an
acceptable solution to this issue. After installing sample meters at locations to ascertain the level
of variable power usage, the Company determined that the variable usage was de minimis (less
than one kWh during the billing period), and did not warrant the cost of installing metering
equipment.
DECISION MEMORANDUM - 1 -APRIL 30, 2009
To resolve the issue, IPC proposes two alterations to Schedule 40. First, the Company
proposes to add language that would allow municipalities or agencies of federal, state or county
governments to install equipment with potential intermittent variation in energy usage. For those
not identified, customers are to notify the Company if power strips or similar equipment are
installed. Staff agrees that the proposed language is necessary to maintain such units under
Schedule 40. Furthermore, Staff believes that it is in the best interest of all affected parties to
maintain such units on Schedule 40 rather than install costly metering equipment.
The Company also proposes adding a $1.00 Intermittent Usage Charge applicable to each
unit with potential for occasional nominal energy usage as defined above. This charge
represents, as the Company contends, a negotiated and reasonable amount for minimal energy
usage and the opportunity for Schedule 40 customers to install such equipment in lieu of
metering each unit. While Staff believes the language change is necessary, it does not agree that
a charge is required to maintain adherence to the tariff. Staff does note that there is value in the
opportunity to receive intermittent power under this schedule, and the $1.00 monthly charge is a
reasonable, if arbitrary, amount for customers to pay. Given the number of units identified, the
revenue impact is between $70 and $75 per month. Staff has verified the negotiations process
with ITD, and finds no reason to override the agreement between the parties.
IPC has requested that, if approved, the modifications to Schedule 40 become effective
June 1 , 2009. To avoid proration of the intermittent charge, the Company requests that the full
charge be included as of the June billing cycle. Staff believes this to be reasonable, and
recommends the Commission approve the Company request.
STAFF RECOMMENDATION
Staff recommends that the Commission accept the revisions to Schedule 40 as proposed
by the Company. Staff believes it is in the best interest to maintain the units in question under
this tariff, and that the proposed monthly intermittent charge represents an acceptable solution to
providing the opportunity for nominal sporadic energy usage by its customers. If approved, Staff
recommends the June 1 , 2009 effective date, with the full charge included in the June billing
cycle.
DECISION MEMORANDUM - 2 -APRIL 30, 2009
COMMISSION DECISION
Does the Commission wish to accept Idaho Power Company s proposed modifications to
Schedule 40, Unmetered General Service?
i:udmemos/Schedule40
DECISION MEMORANDUM - 3 -APRIL 30, 2009