20090921_2711.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:T J GOLO
DATE:SEPTEMBER 17,2009
RE:IDAHO POWER TARIFF ADVICE NO. 09-07 REVISIONS TO RULE D
AND SCHEDULE 66
BACKGROUND
Idaho Power Company ("Company ) filed a tariff advice with the Commission proposing
to add an "Enhanced Metering Information Service" to Rule D - Metering, and the
corresponding charges to Schedule 66 - Miscellaneous Charges. The Company received several
requests, mostly from large power customers, to provide enhance levels of metering service to
improve efficiencies in their operational practices. Currently, the Company offers two types of
Load Profile Metering services under Rule D: (1) Meter Pulse Output Service and (2) Load
Profile Recording Service. These services provide data transfer and data collection of kilowatt-
hours, kilowatts and V AR-hours. The Meter Pulse Output Service is used to determine load and
the Load Profile Recording Service is used to compile data and send it to requesting customers
once a month. Both services are provided at the customer s request and charged the appropriate
installation, removal, and monthly charges outlined in Schedule 66. However, these services do
not provide the enhanced metering information currently being requested by customers.
The Company s proposed Enhanced Metering Information Service will provide
customers the opportunity to determine and collect specific "real-time" load information
customized to their individual needs. The Company proposes to assist requesting customers
the transfer and collection of this information via enhanced metering equipment and electronic
data transmission. The enhanced metering equipment will provide customers the opportunity to
track and record instantaneous kilowatt-hours, kilowatts, V AR-hours, volts, amps, and power
quality information such as harmonic distortion.
DECISION MEMORANDUM - 1 -SEPTEMBER 17, 2009
STAFF REVIEW
Staff reviewed the Company s proposal to add the Enhanced Metering Service
information and believes that it is an excellent initiative by the large power customers to
efficiently manage energy use in their operations. The customer is responsible of managing its
own data storage and determining how long metering information is stored. The Company will
provide assistance and direct customers to purchase the data management software compatible
with the meter equipment. The Company will install, own, operate, and maintain the enhanced
metering system when the requesting customer prepays work order costs for installation. The
Company will utilize its work order billing process and all labor, materials, and credit allowances
will be itemized in the work orders.
Staff reviewed samples of work order installation costs for this enhanced metering
service. In all cases, the ION 8600 meter and two Xstream 900 MHz serial radios are standard
equipment for all installations. The ION 8600 meter is the metering device that collects and
records the enhanced metering information. This meter is more sophisticated than the meters
installed in the AMI program. It can measure demand and energy as well as voltage, current
energy, power factor, and frequency. It can also provide power quality data such as sags, swells
transients, and harmonics. The Xstream radios are needed to transmit and receive the metering
information. An ION 8600 meter costs $5 121 and the two Xstream radios cost $530. The
customer will receive a credit allowance for the cost of a Company-provided standard revenue
meter of $551. Other installations might require additional equipment such as a high gain
antenna ($66) or an antenna cable extension (cost varies from $31-$48 depending on length).
Other itemized costs include labor, vehicle mileage, and vehicle flat rate. A typical work order
installation with the credit allowance of$551 is about $5 500. The Company used standard
average unit cost methodology to determine these costs.
In addition to the work order cost charges in Schedule 66, per month charges will be
included in the customer s monthly bill. The charge is $5 with an existing ION meter and $13
without an existing ION meter. The Company has installed ION meters in some locations for its
own benefit. In this case, a nearby customer can utilize that same meter for this enhanced
metering service if the customer chooses to pay the $5 per month charge and other appropriate
work order costs. The purpose of the monthly charge is to cover expenses for maintaining the
metering equipment. The Company will check the customer s metering equipment about every 6
DECISION MEMORANDUM - 2 -SEPTEMBER 17 , 2009
months to ensure the functionality of the metering equipment. Staff believes that the work order
costs and other charg~s are appropriate to ensure that the cost to provide this service is recovered
from customers requesting this voluntary service. At the same time, the Company can ensure
continued safe and reliable metering service by owning, operating, and maintaining the
equipment needed for this enhanced service.
ST AFF RECOMMENDATION
Staff recommends that the Commission approve Idaho Power s Tariff Advice No. 09-
Revisions to Rule D and Schedule 66 to add the language "Enhanced Metering Information
Service" in Rule D and the appropriate charges in Schedule 66 Section 3 , with an effective date
of September 25 2009.
COMMISSION DECISION
Does the Commission with to accept the proposed revisions in Idaho Power s Tariff
Advice No. 09-077
i:udmemoslIPC Tariff Advice No. 09-07 Revisions to Rule D and Schedule 66
DECISION MEMORANDUM - 3 -SEPTEMBER 17 , 2009