20081014Vol II Atlanta.pdf

ORIGINAL.BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ATLANTA POWER COMPANY FOR AN
ORDER AUTHORI ZING INCREASES IN
THE COMPANY'S RATES AND CHARGES
FOR ELECTRIC SERVICE IN THE STATE
OF IDAHO
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NO. ATL-E-08-02
BEFORE
COMMISSIONER MACK REDFORD (Presiding)
COMMISSIONER MARSHA SMITH
COMMISSIONER JIM KEMPTON
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PLACE:Atlanta Christian Chapel
85 South Quartz Street
Atlanta, Idaho
DATE:October 7, 2008
VOLUME II - Pages 29 - 43
-e.
CSB REPORTING
Constance S. Bucy, CSR No. 187
23876 Applewood Way * Wilder, Idaho 83676
[phone] * [phone]
Email csb(fheritagewifi.com
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1
2
3 For the Staff:
4
5
6
7
For Atlanta Power
Company:
APPEARANCES
Scott Woodbury, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83720-0074
Israel Ray
Atlanta Power Company
11140 Chicken Dinner Road
Caldwell, Idaho 83406-and-
Robert E. Smith
2209 North Bryson Road
Boise, Idaho 83713
McDEVITT & MILLER
by Dean J. Miller, Esq.
420 West Bannock Street
Boise, Idaho 83702
8
9
10
11
12
For Green Tree,Incorporated:
13
14
15
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CSB REPORTING
[phone]
APPEARANCES
.1 I N D E X
2
3 WITNESS EXAMINATION BY PAGE
4 Russ Beavers Statement 32
(Public)Commissioner Smith 35
5 Commissioner Kempton 37
Mr.Ray (Cross)38
6
7
8
9
10
11
12.13
14
15
16
17
18
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23
24.25
CSB REPORTING INDEX
(208 )890-5198
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1 ATLANTA, IDAHO, TUESDAY, OCTOBER 7, 2008, 4:00 P. M.
2
3
4 COMMISSIONER REDFORD: Okay, let's go on
5 the record. Thank you all for coming. This is the Idaho
6 Public Utili ties Commission. My name is Mack Redford and
7 I'm the Chairman of this case. Seated to my left is
8 Marsha Smith, a Commissioner, and seated to my right is
9 Mr. Jim Kempton, also a Commissioner. The purpose of
10 this hearing and the hearing is in the matter of the
11 application of Atlanta Power Company for an order
12 authorizing increases in the Company's rates and charges
13 for electric service in the State of Idaho.
14 First, Atlanta Power filed an application
15 with the Public Utilities Commission on May 1, 2008
16 asking for a rate increase to its general rates and also
17 a surcharge for the purpose of paying off notes which the
18 Company had borrowed for the purpose of making upgrades
19 and repairs. On June 26th, as you're probably all aware,
20 the Commission granted a surcharge to Atlanta Power,
21 again, for the purpose of paying off the notes.
22 The Staff has researched this matter and
23 has come up with its own comments and suggestions and
24 their suggestions has been that there be a small rate
25 increase and also the surcharge be made final until the
CSB REPORTING
[phone]
29 COLLOQUY
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1 notes are paid off. The purpose of this hearing is to
2 take your public comment which will be recorded by our
3 court reporter seated again to my right and the
4 transcript of this hearing will be transcribed into a
5 bound document and then we will use that along with the
6 other exhibits and so on that have been presented in this
7 case.
8 I think I should tell you that the Staff
9 has recommended there be a 5.09 percent increase, a rate
10 increase, and that the -- a 31.5 percent surcharge be
11 made final until the notes are paid off, so what that
12 would in essence be is it would be a 38 percent increase,
13 but, of course, the Commission is not bound to grant it
14 or deny it. We will make our own decision in our
15 deliberations.
16 Seated to my left, and I'll just introduce
17 them, is Joe Miller who represents Atlanta Power. Seated
18 to his left is Scott Woodbury and Mr. Smith and --
19 MR. RAY: Israel.
20 COMMISSIONER REDFORD: Israel? I'm sorry,
21 what's the last name?
22 MR. RAY: Ray, Israel Ray.
23 COMMISSIONER REDFORD: Ray, that's right,
24 I apologize.
25 MR. MILLER: Pardon me, Mr. Chairman, I
CSB REPORTING
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30 COLLOQUY
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1 actually represent Green Tree, Incorporated.
2 COMMISSIONER REDFORD: Oh, I'm sorry.
3 Okay, I'LL take notice of that, Green Tree, Incorporated.
4 We also have Staff with us, Nancy Hilton, who is seated
5 to your left and after the hearing if you have any
6 questions about the proceeding or the rate case
7 generally, she'll be happy to answer your questions.
8 Again, the purpose for this is to take your testimony.
9 It's only for the purpose of taking testimony of those
10 people that are interested in testifying. There will be
11 no -- while we would like to do so, we don't take
12 questions.
13 I f there are questions, there was a
14 workshop up here earlier this year and that was the place
15 for the questions to come, but as I said, if you have
16 questions, please direct them to Nancy after the hearing,
17 and we're very pleased to be in Atlanta. It's a
18 beautiful fall day and so we'll get right to it, and when
19 you do testify, I'll ask Mr. Woodbury to take your oath
20 and after you take the oath, if you would please just
21 gi ve us your address and your zip code, so the first
22 person would be Dan Farnum. Is Mr. Farnum here or did he
23 leave?
24 MR. RAY: He's not here.
25 MR. WOODBURY: Mr. Farnum left. I had
CSB REPORTING
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31 COLLOQUY
.1 spoke to him and took his address.
2
3 Russ Beavers.
4
5
6
COMMISSIONER REDFORD: The next person is
MR. BEAVERS: That's me.
COMMISSIONER REDFORD: Come right up.
7 RUSS BEAVERS,
8 appearing as a public witness, having been duly sworn,
9 was examined and testified as follows:
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10
11
12
13 BY MR. WOODBURY:
EXAMINATION
Please state your full name.
Russ Beavers.
What is your local address?
38 West -- no, 38 East Alturas Drive, but
18 I'm representing Beaver Lodge.
20
21
22
23
14 Q
15 A
16 Q
17 A
19
Q
24 statement..25 A
COMMISSIONER REDFORD: Excuse me?
THE WITNESS: Beaver Lodge.
COMMISSIONER REDFORD: Okay.
THE WITNESS: Is that it?
BY MR. WOODBURY: You can give your
Okay. I don't know if this is a question
CSB REPORTING
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32 BEAVERS
Public
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1 or not, but it's just clarification is how that Alva
2 Green has got involved into this determination of the
3 price increases or whatever. That's what I've understood
4 anyway.
5 COMMISSIONER REDFORD: Well, I couldn't
6 tell you that, but I do understand that he owns the
7 lodge.
8 MR. MILLER: Mr. Green's corporation,
9 Green Tree, Incorporated, has filed a written statement
10 of his position.
11 THE WITNESS: Okay, but it's my
12 understanding that Alva has some kind of a say in how
13 it -- to determine the price.
14 MR. MILLER: We're just like any other
15 customer available to submit our position to the
16 Commission and then the Commission evaluates that.
17 THE WITNESS: So he's no different than
18 me?
19 MR. MILLER: Mr. Green has no special
20 influence.
21 THE WITNESS: Okay; so that was
22 misunderstood.
23 COMMISSIONER REDFORD: The decision will
24 be made by the three of us..25 THE WITNESS: Okay. Now, since I
CSB REPORTING
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33 BEAVERS
Public
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1 understand, once again, it's all I understand, that the
2 commercial people will be charged more for the rate
3 increase; is that not correct?
4 COMMISSIONER REDFORD: Well, I don't know.
5 After the hearing you can ask Ms. Hilton. She's the
6 Staff person that has been assigned to be involved in
7 this case.
8 THE WITNESS: Well, I'm not here to upset
9 anybody or make anybody mad.
10 COMMISSIONER REDFORD: It doesn't make any
11 difference.
12 THE WITNESS: It's a small community. I
13 feel that the quality of power needs to be improved, you
14 know, as well as if we get any kind of an increase, I
15 think there should be a concern and I have to weigh the
16 increase itself. If it's too much for the business to
17 handle, I have to go through the economic part of it and
18 see if I can afford to absorb this increase in my
19 business and that will be determined, you know. Right
20 now I'm leasing it out and eventually I'll be getting it
21 back and so I'm just hoping that I can absorb it through
22 costs. I'll have to do my price increases, too, but if
23 it doesn't, then I'll have to go to another source of
24 energy, you know, and hopefully, I won't have to do that
25 and that is a big concern of ours right now is if it's
CSB REPORTING
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34 BEAVERS
Public
.1 going to be too high.
2
3
4
5 has a question.
6
7
8
9
COMMISSIONER REDFORD: Okay.
THE WITNESS: That's about it, you know.
COMMISSIONER REDFORD: Commissioner Smith
THE WITNESS: Okay.
EXAMINATION
10 BY COMMISSIONER SMITH:
11 Q Mr. Beavers, could you please tell me the
12 nature of your business?.13 A It's a bar/restaurant and motels.
And is ita seasonal one or is it
Well, we've been running year-round for,
17 oh, probably 15, 20 years. When we first started, it was
20
14 Q
Was that summer or winter?
Summer. Spring, summer and fall there at
21 first and then 20 years ago we decided to go full time, I
15 year-round?
16 A
18 just seasonal.
19 Q
A
22 think.
23
24.25
Q
A
Do you know what your power usage is?
You know, I don't. I should have been a
li ttle bit more ready for this.
CSB REPORTING
[phone]
35 BEAVERS (Com)Public
.1 Q And can you please tell me what you mean
2 when you say the power quality needs to improve?
3 A Well, it fluctuates a lot.
4 Q The voltage?
5 A Yeah, whatever that is, the voltage or
6 whatever. I feel it goes up and down, and you notice it,
7 like a fan or something like that, up and down, that type
8 of thing, and washer and dryers and that type of thing
9 and I think everybody as far as the community is
10 concerned about the quality. I shouldn't be speaking for
11 anybody else, but I'm sure there are some concerns about
12 it..13 Q Do you notice it's any worse at any
14 particular time of the year? Is it better in the summer
15 than the winter?
16 A Well, of course, it's a lot better, I
17 think, late at night or early in the morning, like after
18 11:00 to 4:00 or 5:00 in the morning, so that's when
19 we've decided, Kathy and I decided, to run, like, our
20 dishwasher or laundry and stuff so it's not so hard on
21 the equipment late at night or early in the morning.
22 That's what we determined. Of course, somebody else
23 might have a different idea about the whole situation.
24 COMMISSIONER SMITH: Thank you very.25 much.
CSB REPORTING
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36 BEAVERS (Com)
Public
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1 THE WITNESS: You bet.
2 COMMISSIONER KEMPTON: I have a
3 question.
4 COMMISSIONER REDFORD: Commissioner
5 Kempton.
6
7 EXAMINATION
8
9 BY COMMISSIONER KEMPTON:
10 Yes, sir, can you tell me whether you'reQ
11 still having those power fluctuations now after the
12 repair on the motor that's been done?
13 I'm sure it's better than it has been, butA
14 yes, there's still fluctuations. Whether I need a better
15 transformer at my house or at the Beaver Lodge, you know,
16 I don't know, but something like that might help the
17 si tuation out. I don't know.
18 COMMISSIONER REDFORD: Okay, thank you
19 very much.
20 MR. RAY: I have some questions.
21 COMMISSIONER REDFORD: Sure, go ahead, Mr.
22 Ray.
23
24
25
CSB REPORTING
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37 BEAVERS (Com)Public
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1 CROSS-EXAMINATION
2
3 BY MR. RAY:
4 Hi, Russ. I don't know if you were aware
5 that our fluctuations, mainly we try to run it at 60
6 cycles to 64 cycles; is that correct? A little lower
7 than that, 59 to 64, and you can audibly hear that, but
8 most of Idaho Power's system, as you know, is set on 60
9 cycles, and because we're kind of like a one engine, I'm
10 just asking if you're aware of that. I'm not supposed to
11 testify, but even though you can hear that, that probably
12 isn't very hard on motors, you know, five or six cycles
13 and so that might be -- just letting you be aware to
14 answer your question how that might -- that's not too bad
15 in our opinion to vary by five or six cycles, although
16 you can hear it in the motor, I admit that.
17 Not to get too technical right now, butA
18 we've got a May tag dishwasher and I think it's got a
19 sensor in it to where if something is not right or not
20 enough cycles or anything, it will turn off.
21 Q Yeah.
22 A And so if you were to put this dishwasher
23 on at, like, 6:00 o'clock in the evening
24 Q Yeah.
25 -- it's supposed to -- I think it's 90A
CSB REPORTING
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38 BEAVERS (X)
Public
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1 minutes it's supposed to go through everything and we've
2 had it as much as two-and-a-half hours to get --
3 Q Go through the shut-off and reset?
4 A Right; so that's another way of
5 determining how it fluctuates.
6 Q It would be nice to find out in the manual
7 where that cutoff is. Maybe if it drops below 58 is when
8 it cuts off, maybe we could reset it slightly to deal
9 with that.
10 COMMISSIONER REDFORD: Is that a question?
11 MR. RAY: I'm sorry.
12 THE WITNESS: We're talking now.
13 COMMISSIONER REDFORD: We're trying to be
14 informally formal.
15 MR. RAY: I'm trying to answer his
16 question, but I'LL ask my other questions.
17 THE WITNESS: Well, that's another way of
18 showing how it does fluctuate, not just a fan.
19 COMMISSIONER REDFORD: Thank you.
20 Mr. Ray, do you have another question?
21
22
MR. RAY: Yeah, I have some more.
Q BY MR. RAY: How long have you been a
23 customer of Atlanta Power do you believe?
24.25
A Oh, since I've lived up here. I'm sure
it's been 35 years.
CSB REPORTING
[phone]
39 BEAVERS (X)
Public
.1 Q The Staff of the Public Utili ties
2 Commission, they've indicated in their opinion Atlanta
3 Power's electric system is in the best shape it's ever
4 been, would you agree with that?
5 A Yes, I would.
Of course, have you observed the
7 president, me, on site in the community working on the
6 Q
8 electrical system?
9 A Yes, I have.
Okay. How often in your opinion do you
11 believe that I come to Atlanta to perform the repairs?
10 Q
12 And I guess this is a multi choice here, would you say.13 seldom? Periodically? Frequently, like, say, monthly?
14 At least more than once a month? Which one?
15 A You come up here basically to work on the
16 power, I'm assuming, so I'm assuming if you come up three
17 times a month
18 Q Yeah, your guess would be maybe three
Yeah.
Okay. Let's see. Well, how often must
22 you travel to Idaho City or Boise to purchase supplies
19 times a month?
20 A
23 that are not available in Atlanta?
.
21 Q
How often?
Yeah.
24 A
25 Q
CSB REPORTING
[phone]
40 BEAVERS (X)Public
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1 Well, when my business is running, I canA
2 pretty much guarantee about once a week.
3 MR. RAY: Okay. I think that's the main
4 ones we have. Thank you.
5 THE WITNESS: We do try when we go down to
6 get groceries, we depend on freezers and refrigerators to
7 preserve that stuff.
8 MR. RAY: Sure, exactly. That's all I
9 have.
10 COMMISSIONER REDFORD: Mr. Miller, do you
11 have any questions?
12 MR. MILLER: I don't.
13 COMMISSIONER REDFORD: Okay, Mr. Woodbury?
14 MR. WOODBURY: No, I don't. Thank you.
15 COMMISSIONER REDFORD: Thank you very
16 much. I appreciate it Mr. Beavers, thank you.
17 (The witness left the stand.)
18 COMMISSIONER REDFORD: Is there anyone
19 else who would like to testify? Well, if you don't want
20 to testify, I guess that we're adj ourned, and, again, I
21 invi te you to visit with Ms. Hilton if you do have any
22 questions. Thank you very much.
23 I guess I should have asked, Mr. Miller,
24 do you have any witnesses?
25 MR. MILLER: No, Mr. Chairman. We're
CSB REPORTING
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41 BEAVERS (X)
Public
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1 content to stand on our written comments that have
2 already been submitted.
3 COMMISSIONER REDFORD: Thank you. If
4 there's nothing else to come before the Commission, we
5 stand adj ourned. Thank you very much.
6 (The Hearing adjourned at 4:19 p.m.)
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CSB REPORTING
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42 COLLOQUY
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1 AUTHENTICATION
2
3
4 This is to certify that the foregoing
5 proceedings held in the matter of Atlanta Power Company
6 for an order authorizing increases in the Company's rates
7 and charges for electric service in the State of Idaho,
8 commencing at 4:00 p.m., on Tuesday, October 7, 2008, at
9 the Atlanta Christian Chapel, 85 South Quartz Street,
10 Atlanta, Idaho, is a true and correct transcript of said
11 proceedings and the original thereof for the file of the
12 Commission.
13
14
15
16
7
~5-/~~ â,~17
18
CONSTANCE S. BUCY
Certified Shorthand Reporter
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CSB REPORTING
[phone]
43 AUTHENTICATION