20100902Vol II Telephonic.pdf

ORI'GINAL
.BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION DBA AVISTA CASE NO. AVU-E-10-01
UTILITIES FOR AUTHORITY TO CASE NO. AVU-G-1D-D1
INCREASE ITS RATES AND CHARGES FOR
ELECTRIC AND NATURAL GAS SERVICE
IN IDAHO
BEFORE
COMMISSIONER MACK REDFORD (Presiding)
COMMISSIONER MARSHA SMITH
COMMISSIONER JIM KEMPTON.
PLACE:Commission Hearing Room
472 West Washington
Boise, Idaho
DATE:August 26, 2010
VOLUME II - Pages 129 - 145
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CSB REPORTING
Constance S. Bucy, CSR No. 187
23876 Applewood Way * Wìlder, Idaho 83676
[phone] * [phone]
Email csb~heritagewifi.com
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1 APPEARANCES
2
3 For the Staff:Kristine A. Sasser, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83720-0074
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For Avista Corporation:David J. Meyer, Esq.
Vice President & Chief Counsel
Avista Corporation
Post Office Box 3727
Spokane Washington 99220
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CSB REPORTING
[phone]
APPEARANCES
1 I N D E X.2
3 WITNESS EXAMINATION BY PAGE
4 Nancy Homuth Statement 129
( Staff)
5
Steve Bell Statement 134
6 ( Public)Commissioner Kempton 139
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CSB REPORTING INDEX
(208 )890-5198
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1 BOISE, IDAHO, WEDNESDAY, AUGUST 26, 2010, 7:45 P. M.
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4 COMMISSIONER REDFORD: Okay, we're on the
5 record. This will just be a brief record for this lady
6 to be able to give her testimony. This is a hearing in
7 the matter of Avista for a rate increase for its electric
8 and gas and so if you would like to take the oath, I'll
9 give it to you.
11 NANCY HOMUTH,
12 appearing as a public witness, having been first duly
13 sworn, testified as follows:
14
15 EXAMINATION
16
17 BY COMMISSIONER REDFORD:
18 Would you state your full name, spellingQ
19 your last name?
20 A Nancy Homuth, H-o-m-u-t-h.
21 Q And could you give us your address,
22 please?
23 My mailing address, Post Office Box 383,A
24 Wallace, Idaho, 83873.
25 Okay, ma' am, why don't you go ahead andQ
CSB REPORTING
[phone]
HOMUTH
Public129
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1 gi ve us your statement.
2 A Okay, sir.I'm tired of corporate greed.
3 Our unemployment is the highest in the State of Idaho at
4 12.6. Boise is 9.3. We live in Shoshone County with
5 lakes , rivers and flowing streams. Several years ago I
6 kept track of Avista when Mr. Ely was the CEO of
7 Washington and he had a graph in the Spokesman Review of
8 what his pay was and the bonuses and also stock holdings.
9 He at that time showed on the graph that he and his goal,
10 along with the CFO, they made multiple wage bonuses and
11 his long-term plan was to be the largest stockholder of
12 Avista.
13 Now, if Avista needs an increase, let the
14 people who took the millions of dollars and let them
15 invest in the profit that they took from the people and I
16 personally would like to know who the largest stockholder
17 is today of Avista, and why when natural gas is falling
18 on the market, why do we need an increase. That's all I
19 have to say. Thank you.
20 COMMISSIONER REDFORD: Well, thank you for
21 participating. We appreciate it.
22 THE WITNESS: Sir, I kept these clippings
23 several years ago. I called Boise, I made them very well
24 aware of what the CEO of Avista in Washington was up to
25 at that time. I sent clippings. I wrote letters. I
CSB REPORTING
[phone]
130 HOMUTH
Public
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1 think that -- I think we the people are all tired of
2 corporate greed, not just Avista, but throughout the
3 Uni ted States and when are you going to start giving
4 people a break? We've got a lot of needy senior
5 ci tizens. We've got children that are not eating
6 properly. You've got grandparents like myself taking
7 care of grandchildren, help feeding them. We can't take
8 another hit. I live in the country and I see, I'll bet
9 you, 25 truckloads a day of wood going down the road. My
10 husband and I are too old to cut wood, so we are
11 dependent on your gas and electricity. Thank you.
12 COMMISSIONER REDFORD: Well, thank you,
13 and we will take your comments into consideration.
14 THE WITNESS: Thank you, sir.
15 COMMISSIONER REDFORD: You i re welcome.
16 (The call was ended.)
17 (Off the record.)
18 COMMISSIONER REDFORD:We i re on the
19 record now. Good evening, ladies and gentlemen, whoever
20 you are and wherever you are. This is the Idaho Public
21 Utilities Commission. My name is Mack Redford. I am an
22 Idaho Public Utilities Commissioner and Chairman of this
23 telephonic hearing. I am joined by I PUC or Idaho Public
24 Utilities Commissioner and Commission president Jim
25 Kempton and by Commissioner Marsha Smith. The three of
CSB REPORTING
[phone]
131 HOMUTH
Public
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1 us make up the Idaho Public Utilities Commission. The
2 Public Utilities Commission Staff is represented by Kris
3 Sasser, Deputy Idaho Attorney General.
4 The date is Thursday, August 26th. The
5 time is 8: 00 0' clock p. m. in Mountain Standard Time in
6 Boise and 7 0' clock p. m. in Pacific Standard Time in
7 Coeur d' Alene. The place is the Hearing Room at the
8 Idaho Public Utilities Commission in Boise. The reason
9 for utilizing the telephone conference option is we get
10 better contact with a larger number of ratepayers,
11 reduced travel costs and we have the opportunity to
12 invol ve a larger number of the PUC. The case numbers are
13 AVU-E-10-01 for electricity and AVU-G-10-01 for gas.
14 I'll give you a little of the procedural
15 considerations. This is a formal public hearing to
16 gather public comment on the rate cases requested by
17 Avista. As such, the Commission will not engage in
18 argument or debate and in general, will not be responsive
19 to questions from the public concerning specific aspects
20 of the case.Information on the case is fully displayed
21 on the Commission website at www.puc.idaho.gov. Everyone
22 on the call-in phone will be able to hear the
23 proceedings. Everyone's call-in phone will be
24 automatically muted except for the person testifying.
25 If you would like to testify, press star 1
CSB REPORTING
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132 COLLOQUY
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1 on your phone keypad. You may do so now. This will sign
2 you in to testify or put you in the queue and you will be
3 told your order among others. When your turn to testify
4 comes up, you will hear the prompt "Ask your questions."
5 This prompt is the time for you to identify yourself by
6 announcing your name and before excuse me ,Deputy
7 Attorney General Kris Sasser will take your oath. Before
8 you testify, please eliminate any background noise, such
9 as radio, TV or other distractions. At the end of your
10 testimony, you may be asked questions by the Commission
11 or by Avista or Staff. If at any time after you sign up
12 to testify you decide you do not want to testify, simply
13 push the pound key on your phone. You will be taken off
14 the testimony list at that time. If there's any
15 disconnections, please stay on the line.
16 First of all, I'd like to take the
17 appearance of the attorney for Avista.
18 MR. MEYER: Thank you, Mr. Chairman.
19 David Meyer appearing on behalf of Avista.
20 COMMISSIONER REDFORD: And I'd take the
21 appearance of the Deputy Attorney General.
22 MR. HOWELL: Chairman Redford, Kristine
23 Sasser for Staff.
24 COMMISSIONER REDFORD: Thank you very
25 much. Is there someone on the line to testify in the
CSB REPORTING
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133 COLLOQUY
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1 queue?
THE WITNESS: Steve Bell.
4 STEVE BELL,
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5 appearing as a public witness, having been first duly
6 sworn, testified as follows:
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10 BY MS. SASSER:
11 Q
EXAMINATION
Could you state your name, spelling your
13 A Yes, Steve middle initial "F", last name
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And your residence address?
1506 North 7th, CDA, 83814. Phone, do you
And are you a customer of Avista?
Yes.
Okay, go ahead and please proceed with
Yeah, I'm at very short notice. I just
23 received a call, like, two hours before the hearing, so I
12 last name?
14 Bell, B-e-l-l.
24 will try to be fairly brief and will try to summarize
15 Q
16 A
what my comments are. I'm an attorney up here in Coeur
CSB REPORTING
[phone]
1 7 need the phone?
18 Q
19 A
20 Q
21 your testimony.
22 A
134 BELL
Public
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1 d' Alene. I initially was notified about this rate
2 increase through an article in the Coeur d'Alene Press.
3 I f the Coeur d'Alene Press hadn't come up with the
4 article, we never would have known about it.
5 A little bit of background of what's going
6 on in Kootenai County and I don't think it's probably any
7 surprise to anybody else. We have 1,200 homeless people.
8 We have 150 people living in tents and we have people
9 living in cars, and the point I have to make is those
10 people living in cars don't have to worry about $200
11 Avista shutoff notices because they don't have any lights
12 to even turn on. I was raised in Moscow, Idaho, the son
13 of a law professor in the '50s and I always had a job and
14 still have a job now, but this is absolutely the worst
15 recession that I have seen or experienced in over 50
16 years.
17 The thing that really shocked me was when
18 I saw the salary increases that people were getting.
19 Just one example, Scott Morris received a $400,000
20 increase in one year that raised him to 3 million per
21 year. That gives him $250,000 a month which is probably
22 more than a lot of people in Coeur d' Alene would make in
23 10 years. The list goes on and on and on. The corporate
24 secretary/vice president Karen Phelps, she makes 759,000
25 a year. I was absolutely shocked when I learned that
CSB REPORTING
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135 BELL
Public
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1 they were seeking a 14 percent increase in electrical
2 rates. I have to wonder, well, frankly, about the
3 arrogance of this. If I was the only attorney in Coeur
4 d' Alene and I was seeking a 14 percent increase in my
5 rates in one year, I think the public would be absolutely
6 outraged.
7 I put this up on an e-mail and asked
8 people to respond. The responses that I received from
9 people I don't even want to print. I realize we're by
10 phone, but I won't even mention them over the phone.
11 I've got a couple of clients, one that owns a latte
12 stand, one that owns a donut shop. One is paying 600 a
13 month, the other over 300 a month just in electrical and
14 a 14 percent would hurt them. I just picked up the
15 newspaper tonight and we've had the smallest increase in
16 home sales nationally in the last 50 years. That's not
17 in the last 10 years, the last 50 years, and I'm not
18 saying I had, necessarily anything to do with it, maybe
19 somebody else did, but a lot of people were upset, but I
20 did an article in the Coeur d'Alene Press on July 24th
21 and right after that on July 27th, Avista just happened
22 to find $17.5 million and then proposed a drop and I just
23 have to ask, was that coincidental or not?
24 If I had an extra $10,000 in my account, I
25 think I would probably know about it. This was $ 17
CSB REPORTING
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136 BELL
Public
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1 million in deferred state income taxes and they then
2 proposed to reduce the rate increase toward electrical to
3 approximately 9. 7, and what my concern is, did they
4 intend this all along? Did they figure that if they went
5 after the big one, then they could settle for a smaller
6 one? The other thing I quoted in the paper and it comes
7 out of Proverbs and it says, "If a man shuts his ears to
8 the cry of the poor, he too will cry out and not be
9 answered. "
10 I just think that this rate proposal
11 increase is an absolute outrage. The comment that I'm
12 getting from clients and friends is one of complete shock
13 and I have to ask a question.If I make a quarter of a
14 million dollars a month as Mr. Morris does, do I have any
15 empathy for the people that are getting their power shut
16 off? Would I have any concern for them? Why aren't the
17 corporate executives taking cuts just like a lot of my
1S friends are?
19 And you said we weren't supposed to as k
20 questions, so I won't ask any questions.I think that
21 pretty well covers it. Oh, there's one other thing.
22 Kootenai County had a 24 percent drop in sales tax
23 revenue last year. How many businesses in Coeur d' Alene
24 do you think should actually absorb a rate increase with
25 that much of a decrease in income? That basically is my
CSB REPORTING
(20S) 890-5198
137 BELL
Public
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1 testimony. Thank you.
2 COMMISSIONER REDFORD: As an aside, Mr.
3 Bell, I ought to tell you that your father was the Dean
4 at the law school when I attended.
5 THE WITNESS: Oh, really?
6 COMMISSIONER REDFORD: My name is Mack
7 Redford.
8 THE WITNESS: Oh, really , it i S a small
9 world.
10 COMMISSIONER REDFORD: Yes. Well, thank
11 you very much, Mr. Bell, for giving us your testimony on
12 behalf of yourself and others. We appreciate it and your
13 testimony will be considered when we make our decision as
14 to what the final outcome will be and, again, thank you
15 for calling in.
16 THE WITNESS: Okay, and thanks very much
17 for your time and have a good evening.
18 COMMISSIONER REDFORD: Thank you.
19 THE WITNESS: Bye-bye.
20 COMMISSIONER KEMPTON: Mr. Bell?
21 THE WITNESS: Oh, yes.
22 COMMISSIONER KEMPTON: Hang on for just a
23 minute. There may be some questions for you.
24 THE WITNESS: Okay.
25 COMMISSIONER REDFORD: Do you have any
CSB REPORTING
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138 BELL
Public
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1 questions, Mr. Meyer?
2 MR. MEYER: I do not. Thank you.
3 COMMISSIONER REDFORD: Ms. Sasser?
4 MR. HOWELL: No, Mr. Chairman.
5 COMMISSIONER REDFORD: There are no
6 questions, Mr. Bell.
7 COMMISSIONER KEMPTON: Mr. Chairman?
8 COMMISSIONER REDFORD: Oh, excuse me.
9
10 EXAMINATION
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12 BY COMMISSIONER KEMPTON:
13 Q Mr. Bell, this is Commissioner Kempton and
14 I do have a couple of questions. When you are reviewing
15 some of these rate cases, and I know they cause a lot of
16 consternation, have you visited the Commission website to
17 look at the details of any of those cases?
18 A No, I haven't.
19 Q Do you know that on the Commission website
20 there's detailed filings that give the pros and cons of
21 what the utility is asking for and the response to those
22 requests from Staff?
23 A No. I was just going to say I've never
24 testified before the PUC before. I've done a lot of
25 public interest advocacy before, but this is first time,
CSB REPORTING
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139 BELL (Com)Public
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1 so I'm just being educated.
2 Q Well, I think the Commission as a whole
3 appreciates the fact that you've taken the time to do
4 that because an informed public is one of the ways to
5 move through the obstacles of trying to understand what
6 these rate cases are all about and the Commission is
7 aware of, of course, the economic circumstances and is
8 aware of the situation in north Idaho. Are you familiar
9 wi th Idaho Community Action Network?
A Wi th Idaho what?
Q Idaho Community Action Network. They go
12 by the acronym ICAN.
13 A No.
14 Q That's a community action group that works
15 on behalf of low income ratepayers and also low income
1 6 individuals in general.
17 A Oh, yeah.
18 Q Okay.
19 A I am aware of that.
20 Q All right, and are you familiar with
21 Communi ty Action Partnership Association which goes by
22 the acronym CAPAI, C-A-P-A-I?
23 A Well, basically, again, in general.
24 Q So you know that those are two
25 nonprofi t?
CSB REPORTING
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BELL (Com)Public140
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1 A Organizations that work on behalf of
2 senior citizens, on behalf of low income individuals and
3 on behalf of those that are having trouble making their
4 payments because of the economy, so I would only mention
5 that in this particular case, those two organizations
6 intervened to have a part in the settlement and have
7 agreed to the settlement conditions as they are now
8 developed in this rate case and all of that testimony is
9 on the Commission's website again, and if you i 11 come on
10 the Commission iS website and look for the case histories,
11 and I'll give you the numbers of these two cases, one of
12 them is for gas, that's the Avista case that's for gas
13 and that's AVU, that i s alpha victor unicorn dash G, like
14 golf, dash 10 dash 01, and the other one for the
15 electricity is alpha victor unicorn, AVU-E-10-01 and you
16 can have all the testimony from those organi zations and
17 from Staff and from the utility itself.
18 A Okay, the first one you were breaking up a
19 li ttle bit was AVU-6, then what?
20 Q AVU-G,like golf.
A Oh,got it,okay.
Q Dash 10 dash zero one.
A Okay.
Q And the other one was the same thing with
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25 AVU, except an E-10-01.
CSB REPORTING
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141 BELL (Com)
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1 A If they -- well, I know I'm not supposed
2 to as k the questions, but you say they have agreed to a
3 proposed settlement?
4 Q This is a settlement that's in progress at
5 this point in time and, again, I' ve given you the
6 information that you need to take a look at that, but it
7 is a settlement in progress.
8 A Okay, I'm also aware and I hope you are,
9 too, that most social security recipients have basically
10 recei ved no appreciable increase in benefits in the last
11 three years and I hope that you consider that.
12 COMMISSIONER REDFORD: I think Ms. Sasser
13 had something she wanted to add.
14 MS. SASSER: This is Kristine Sasser,
15 attorney for Commission Staff.
16 THE WITNESS: Thank you.
17 MS. SASSER: Just as a matter of
18 clarification so that we don't get crosswise with ICAN,
19 ICAN was invited to participate in settlement
20 discussions. ICAN did not sign the settlement and
21 stipulation that was submitted to the Commission by the
22 parties, but they have also not filed anything that's
2 3 actively opposed it.
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25
THE WITNESS: Oh, okay.
COMMISSIONER KEMPTON: And Ms. Sasser,
CSB REPORTING
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142 BELL (Com)Public
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1 CAPAI?
2 MS. SASSER: CAPAI participated in
3 settlement discussions, is in support of the settlement
4 and stipulation and did file testimony in that regard
5 that is on the website you have mentioned, yes, sir.
6 COMMISSIONER KEMPTON: Thank you.
7 COMMISSIONER REDFORD: Well, thank you
8 again, Mr. Bell.
9 THE WITNESS: Yeah, well, thanks very much
10 for your time and you gentlemen have a good evening.
11 COMMISSIONER REDFORD: Thank you, you
12 too.
13 THE WITNESS: Bye-bye.
14 (The call was ended.)
15 (Pause in proceedings.)
16 Mr. Fadness: Okay, Mr. Chairman, I guess
17 there isn't anyone else who would like to testify.
18 COMMISSIONER REDFORD: Well, I would like
19 to thank all those people that did testify, the two
20 people that testified, and I want to make sure that they
21 understand that the settlement and stipulation has not
22 been ruled upon by the Commission and the Commission is
23 not bound to accept the stipulation unless it's fair and
24 reasonable for all parties, including the utility and the
25 customers, so if there is no one at this last moment,
CSB REPORTING
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143 COLLOQUY
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1 again, I thank you for calling in and this will conclude
2 this public hearing.
3 (The Hearing concluded at 8:20 p.m.)
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CSB REPORTING
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COLLOQUY144
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1 AUTHENTICATION
2
3
4 This is to certify that the foregoing
5 proceedings held in the matter of the application of
6 Avista Corporation dba Avista Utilities for authority to
7 increase its rates and charges for electric and natural
8 gas service in Idaho, commencing at 9: 30 a. m., on
9 Thursday, August 26, 2010, at the Commission Hearing
10 Room, 472 West Washington, Boise, Idaho, is a true and
11 correct transcript of said proceedings and the original
12 thereof for the file of the Commission.
13 Accuracy of all prefiled testimony as
14 originally submitted to the Reporter and incorporated
15 herein at the direction of the Commission is the sole
16 responsibili ty of the submitting parties.
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CSB REPORTING
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145 COLLOQUY