20130812_4143.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MATT ELAM
DATE:AUGUST 8,2013
SUBJECT:IDAHO POWER’S TARIFF ADVICE -REVISIONS TO SCHEDULES.
On July 11,2013,Idaho Power filed Tariff Advice No.13-01 requesting modifications to
Schedule 5—Residential Service.Time-of-Day Pilot Plan (“TOD”).The purpose of this filing is
to seek approval to remove the cap of 1,200 metered service points currently in the tariff and to
insert new language that will allow the Company to manage participation without a cap.
Specifically,the Company proposes to remove the cap and insert the sentence “Idaho Power
reserves the right to limit participation in this pilot program at the Company’s discretion.”
According to Idaho Power,this language is necessary because the Company is concerned about
being able to manage an unpredictable and unexpected large increase in customer sign-ups while
the new customer information system is being implemented and tested.
BACKGROUND
On March 27,2012,the Commission approved a proposal by Idaho Power to implement
a Time Variant Pricing Plan to a limited number of residential customers.The goal of the Time
Variant Pricing Plan is “to offer customers a choice of pricing plans while providing them with
better tools to manage their energy usage,to provide the Company with the opportunity to
further study the effects of a time variant rate on customers’usage.and to help shape the
Company’s future communication efforts.”Order No.32499.The Commission directed the
Company to provide an analysis of the 2012 Time Variant Pricing Plan results to Staff prior to
filing further revisions to its time variant pricing tariff.Order No.32499.
DECISION MEMORANDUM 1 AUGUST 8,2013
STAFF REVIEW
The Company provided Staff with an analysis of its Time-of-Day Status Report on
June 20,2013.The preliminary results include six months of data and only show small changes
in consumption away from peak hours.The final report summarizing the impacts of the program
after reviewing a full year of data is not expected to be completed until 2014,at which time the
Company also plans to provide the results of a customer survey.
The Company’s limited offering went out to 126,690 customers in Boise,Gardcn City,
Eagle.Star.Meridian,Nampa and Middleton areas.The Company originally estimated 2-3%of
the customers invited to participate in the program would enroll,but discovered only 1.1%of the
customers invited to participate enrolled.After a small amount of attrition.the Company states
there are 1.567 customers currently signed up for Schedule 5.This consists of 1,436 participants
in the study group,and a small group of customers who were not solicited for the study but were
allowed to enroll.According to the Company,it did not limit participation when the cap of
1,200 was reached for two reasons.First,the Company was concerned there might be a high
attrition rate since other utilities had reported attrition rates as high as 25%for similar pilots,and
the Company wanted a robust study with at least 1,200 participants.Second,the number and
rate of customer sign-ups were difficult to forecast and the Company did not want to turn away a
customer who was responding to an invitation.
In the 2012 Time Variant Pricing Plan,the original analysis for the proposed
implementation of its limited offering,the Company stated that it planned to use the results of
the study to predict overall acceptance of TOD rates as it rolled them out to the entire residential
class.However,the Company has not attempted to predict enrollment if the TOD rate option is
made available to the entire residential class.Staff believes it is difficult to estimate the number
of customers that might switch to Schedule 5 if offered to the entire class,particularly since the
Company’s study group excluded customers who:(I)had less than 12 months of AMI metering
data;(2)rented instead of owned their home;(3)used less than $00 kWh in all of the months;
and (4)were on the ‘Do Not Call List.’
Staff does not oppose removing the cap since according to the Company,it is unlikely
that it will be unable to manage the number of customers interested in signing up because of
problems with the rollout and testing of its new customer information system.However,if the
DECISION MEMORANDUM 2 AUGUST 8,2013
Company does encounter problems with its new customer information system and is unable to
sign customers up.the proposed tariff language allows it to temporarily limit participation.
STAFF RECOMMENDATION
Staff reviewed the Compaiw’s revisions to Schedule 5 and believes the changes are
reasonable.Staff also believes it is reasonable to permit the Company to temporarily limit
participation in the pilot program if it encounters problems with its new customer information
system.The proposed tariff changes have been attached for review.
COMMISSION DECISION
Does the Commission wish to approve the replacement Schedule 5 tariff sheet?
M’att Elam ‘
I udniernos/scliedule 5 rcvrson doc
DECISION MEMORANDUM 3 AUGUST 8,2013
Idaho Power Company Third Revised Sheet No.5-1
Cancels
I.P.U.C.No.29,Tariff No.101 Second Revised Sheet No.5-1
SCHEDULE 5
RESIDENTIAL SERVICE
TIME-OF-DAY PILOT PLAN
(OPTIONAL)
AVAILABILITY
Service under this schedule is available at points on the Company’s interconnected system to
residential Customers where existing facilities of adequate capacity and desired phase and voltage are
adjacent to the Premises to be served,additional investment by the Company for new transmission,
substation or terminal facilities is not necessary to supply the desired service,and Advanced Meter
Reading (AMR)equipment is installed.Idaho Power reserves the right to limit participation in this pilot
plan at the Company’s discretion.
The Residential Service Time-of-Day Pilot Plan is an optional,voluntary service that provides
residential Customers the option to take electric service with seasonal time-of-day energy rates.
If a Customer requests to participate in this pilot schedule,the Customer will be placed on the
schedule within seven (7)business days,subject to work constraints.
A Customer may terminate their participation on this schedule at any time.However,the
Customer may not subsequently elect service under this schedule for one year after the effective date
of cancellation.If a Customer requests to be taken off of the schedule,the Customer will be removed
from the schedule as of the last meter read date.
APPLICABILITY
Service under this schedule is applicable to Electric Service required for residential service
Customers for general domestic uses,including single phase motors of 7%horsepower rating or less,
subject to the following conditions:
1.When a portion of a dwelling is used regularly for business,professional or other gainful
purposes,or when service is supplied in whole or in part for business,professional,or other gainful
purposes,the Premises will be classified as non-residential and the appropriate general service
schedule will apply.However,if the wiring is so arranged that the service for residential purposes can
be metered separately,this schedule will be applied to such service.
2.Whenever the Customer’s equipment does not conform to the Company’s specifications
for service under this schedule,service will be supplied under the appropriate General Service
Schedule.
3.This schedule is not applicable to standby service,service for resale,or shared service.
The Company shall have the right to select and reject Pilot participants at its sole discretion.
TYPE OF SERVICE
The type of service provided under this schedule is single phase,alternating current at
approximately 120 or 240 volts and 60 cycles,supplied through one meter at one Point of Delivery.
Upon request by the owner of multi-family dwellings,the Company may provide 120/208 volt service for
multi4amily dwellings when all equipment is U L approved to operate at 120/208 volts.
IDAHO Issued by IDAHO POWER COMPANY
Issued —July 11,2013 Gregory W.Said,Vice President,Regulatory Affairs
Effective —August 15,2013 1221 West Idaho Street,Boise,Idaho
Advice No.13-01
I Idaho Power Company SeeendThird Revised Sheet No.5-1
Cancels
I I.P.U.C.No.29,Tariff No.101 stSecond Revised Sheet No.5-1
SCHEDULE 5
RESIDENTIAL SERVICE
TIME-OF-DAY PILOT PLAN
(OPTIONAL)
AVAILABILITY
Service under this schedule is available at points on the Company’s interconnected system to
residential Customers where existing facilities of adequate capacity and desired phase and voltage are
adjacent to the Premises to be served,additional investment by the Company for new transmission,
substation or terminal facilities is not necessary to supply the desired service,and Advanced Meter
Reading (AMR)equipment is installed.Service under this pilot schedule is limited to no more than
1,200 metered service points.Idaho Power reserves the riQhtto limit participation in this pilot plan at the
Company’s discretion.
The Residential Service Time-of-Day Pilot Plan is an optional,voluntary service that provides
residential Customers the option to take electric service with seasonal time-of-day energy rates.
If a Customer requests to participate in this pilot schedule,the Customer will be placed on the
schedule within seven (7)business days,subject to work constraints.
A Customer may terminate their participation on this schedule at any time.However,the
Customer may not subsequently elect service under this schedule for one year after the effective date
of cancellation.If a Customer requests to be taken off of the schedule,the Customer will be removed
from the schedule as of the last meter read date.
APPLICABILITY
Service under this schedule is applicable to Electric Service required for residential service
Customers for general domestic uses,including single phase motors of 7%horsepower rating or less,
subject to the following conditions:
1.When a portion of a dwelling is used regularly for business,professional or other gainful
purposes,or when service is supplied in whole or in part for business,professional,or other gainful
purposes,the Premises will be classified as non-residential and the appropriate general service
schedule will apply.However,if the wiring is so arranged that the service for residential purposes can
be metered separately,this schedule will be applied to such service.
2.Whenever the Customer’s equipment does not conform to the Company’s specifications
for service under this schedule,service will be supplied under the appropriate General Service
Schedule.
3.This schedule is not applicable to standby service,service for resale,or shared service.
The Company shall have the right to select and reject Pilot participants at its sole discretion.
TYPE OF SERVICE
The type of service provided under this schedule is single phase,alternating current at
approximately 120 or 240 volts and 60 cycles,supplied through one meter at one Point of Delivery.
IDAHO Issued by IDAHO POWER COMPANY
Issued—January 10,2Ol2JuIy 11,2013 GregoryW.Said,Vice President,Regulatory Affairs
Effective —March 1,2Ol2August 15,2013 1221 West Idaho Street,Boise,Idaho
Advice No.12 0213-01
I Idaho Power Company SeeondThird Revised Sheet No.5-1
Cancels
I I.P.U.C.No.29,Tariff No.101 icstSecond Revised Sheet No.5-1
Upon request by the owner of multi4amily dwellings,the Company may provide 120/208 volt service for
multi-family dwellings when all equipment is U L approved to operate at 120/208 volts.
IDAHO Issued by IDAHO POWER COMPANY
lssued—Januar 10,2Ol2JuIy 11,2013 GregoryW.Said,Vice President,Regulatory Affairs
Effective—March 1,2Ol2August 15,2013 1221 West Idaho Street,Boise,Idaho
Advice No.12 0213-01