HomeMy WebLinkAbout20030314min.docMINUTES OF DECISION MEETING
MARCH 14, 2003 – 11:00 A.M.
In attendance were Commissioners Paul Kjellander, Dennis Hansen, and Marsha Smith.
Commissioner Kjellander called the meeting to order. He stated that the agenda was a continuation of the discussion regarding item 7 from the Decision Meeting held on Monday, March 10, 2003, at which time the Commission had asked the parties to look at another methodology in order to arrive at a program for irrigators that might work.
Scott Woodbury’s March 05, 2003 Decision Memorandum re: Schedule 72—Irrigation Load Control Credit Rider. Case No. PAC-E-03-3.
Mr. Woodbury reviewed his Decision Memo. He said the Commission initially took up the matter on Monday, March 10th and it was continued until today to provide time to explore whether a methodology could be devised that would provide the company with the interruptibility it needs and provide irrigators with a reasonable credit for reducing peak-load requirements. He said the Company had submitted an alternative methodology that recognizes that irrigator load on super-peak periods will be shifted to other times or off-peak periods rather than be totally curtailed or eliminated. He stated the shift provides value to the Company, and this recognition that load will be shifted allows a credit based on the difference between super-peak market prices and how the Company has calculated light-load hour market prices in the months of curtailment. He said the credit is discounted by 30% in recognition of uncertainties. He said the Company proposes that the alternative methodology be considered in lieu of the original one, and Staff supports the alternative methodology, including the adjustment for uncertainty. He noted that one of the five uncertainty factors identified by the Company is the amount of load that actually is shifted, and Staff contends this is really lost revenue and it is unnecessary to include it to justify the 30% uncertainty adjustment. He stated the proposal eliminates the lost revenue issue by recognizing that energy consumption will be shifted, and it is this recognition that causes Staff to view the Company’s alternative proposal as an improvement that Staff strongly supports. He said the irrigators have also commented on the Company’s alternative proposal, and they believe it should be assumed that the shift in curtailed load will occur from super-peak to off-peak hours because the light-load hours are already too full. He said the irrigators believe this justifies a decrease in the uncertainly discount and an increase in the interruptibility credit. He said the irrigators support valuing the interruptibility credit in the manner proposed by Staff in its comments on the Company’s original filing. He said proposed credits are included in the irrigators’ comments, and all parties support an irrigator program for 2003 with a follow-up report and analysis prior to any re-authorization.
Commissioner Smith said she wanted to thank the parties for going back and working on this. She stated we do need some kind of program for the irrigators in 2003, and therefore it is important to get it in place now. She said that in a perfect world, we would not discount based on projected uncertainties but we would give people who fully comply the full benefit of a reduction, and give those who didn’t a penalty. She said at this point in time, however, we don’t have the opportunity for that kind of precise perfection. She said she supports the filing made by the Company and supported by the Staff, and she would like to see a report and some modifications based on the experience the Company and customers have this summer so that we can make it an even better program in the future. She stated that by essentially turning this into a time-of-use program as opposed to a curtailment or buy-back program, we avoid that whole issue of lost revenue. She made a motion supporting the filing of the Company and its approval. There was no further discussion. A vote was taken on the motion and it carried unanimously.
There were no other items on the agenda and Commissioner Kjellander adjourned the meeting.
DATED this ____ day of March, 2003.
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COMMISSION SECRETARY
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