20060417Vol II.pdf

OR I GI NAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS BASE
RATES AND CHARGES FOR ELECTRIC
SERVICE IN THE STATE OF IDAHO
) CASE NO. IPC-E- 05 -
BEFORE
COMMISSIONER MARSHA SMITH (Presiding)
COMMISSIONER PAUL KJELLANDER
COMMISSIONER DENNIS HANSEN
PLACE:Commission Hearing Room
472 West Washington
Boise , Idaho
DATE:April 11 , 2006
VOLUME I I - Pages 84 - 92
CSB REpORTING
Constance S. Bucy, CSR No. 187
17688 Allendale Road * Wilder, Idaho 83676
[phone] *[phone]
Email csb~spro.net
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For the Staff:Donald L. Howell, II, Esq.
and Cecelia A. Gassner, Esq.
Deputy Attorney Generals
472 West Washington
Boise , Idaho 83720-0074
Monica B. Moen, Esq.
Idaho Power Company
Post Office Box 70Boise, Idaho 83707 - 0070
For Idaho Power
Company:
CSB REPORTING
Wilder , Idaho
APPEARANCES83676
WITNESS EXAMINATION BY PAGE
John S. Weber
(Public)StatementMr. Howell (Cross)
Commissioner Hansen
CSB REPORTING
Wilder , ID 83676
INDEX
BOISE , IDAHO , TUESDAY , APRIL 11, 2006, 7:00 P. M.
COMMISSIONER SMITH:Good evening, ladies
and gentlemen.This is the time and place set for a
public hearing in Idaho Public Utilities Commission Case
No. IPC-O5-28.This is further identified as in the
matter of the application of Idaho Power Company for
authority to increase its base rates and charges for
electric service in the State of Idaho.
There are numerous parties to this case.
I see two of them present tonight.For the Company?
MS. MOEN:Monica Moen representing Idaho
Power Company.With me at the table is also Denny
Trumble of Idaho Power.
COMMISSIONER SMITH:Thank you, and for
the Commission Staff?
MR. HOWELL:For the Commission Staff, I'
Don Howell, Deputy Attorney General.
COMMISSIONER SMITH:Welcome, Mr. Howell
and Ms. Moen.Are there any other parties who wish to
make an appearance at this time?So we will reflect that
these are the only parties present this evening.
I wish to welcome members of the public.
My name is Marsha Smi th .I I m one of the three
CSB REPORTING
Wilder , Idaho
COLLOQUY83676
Commissioners of the Idaho Public Utilities Commission
and I I m Chairing tonight I s hearing.On my right is
Commissioner Dennis Hansen.Another of the
Commissioners, Commissioner Paul Kj ellander , had an
unexpected conflict develop this afternoon and he is
excused this evening.
The purpose of a public hearing is to
allow interested members of the public and customers of
the Company to give their views on the pending
application that the Commission will shortly consider.
This afternoon we conducted the technical hearing which
took testimony supporting the stipulation which was
agreed to and filed by the parties in this case, so
tonight we I re here to hear comments from the public , if
there are any, and it looks 1 ike we do have one person
who has signed up, John Weber.
Mr. Weber, if you I d like to come forward,
our process is that we'll need to swear you in and
Mr. Howell will ask you a couple of questions to get you
identified for the court reporter and our record and then
you're free to give your statement, so if you'd just
raise your right hand.
CSB REPORTING
Wilder , Idaho
COLLOQUY83676
JOHN S. WEBER,
appearing as a public witness, having been first duly
sworn , testified as follows:
COMMISSIONER SMITH:Please be seated and
Mr. Howell will ask you a couple of questions.
BY MR.HOWELL:
Good evening,sir.For the record,could
you state your full name and spell your last?
CSB REPORTING
Wilder, Idaho
EXAMINATION
My full name is John Steven Weber and my
last name is spelled W-e-b-e-r.
And Mr. Weber, are you a customer of Idaho
Yes, sir, I am.
And can you - - are you a residential
Yes , I am.
Can you give your residential address?
It's 9535 West Cory Lane.
And do you have a statement you'd like to
give to the Commission?
Yes, I just believe that
- -
I think the
Power?
customer?
WEBER
Public83676
rate increase proposed now is, like, 3.2 percent and I
believe actually a higher rate increase would be better
at this time , because I believe it would be better to
have consistent, gradual increases in the price of
electrici ty than having, like, smaller ones and then
later have spikes and the rates have to be raised higher,
so I believe it would be prudent to raise the rate maybe
5 to 10 percent annually until we get more on the par
for the national average because we I re much below the
national average for the electricity rates.
COMMISSIONER SMITH:Does that conclude
your statement?
THE WITNESS:Yes, ma' am.
COMMISSIONER SMITH:Let I S see if there
are any questions for you.
COMMISSIONER SMITH:Ms. Moen?
MS. MOEN:No questions, Madam Chair.
COMMISSIONER SMITH:Mr. Howell?
CROSS -EXAMINATION
BY MR. HOWELL:
Mr. Weber , you understand that the rates
that the Company charges are based upon their costs,
don I t you?
CSB REPORTING
Wilder, Idaho
WEBER (X)
Public83676
Yes , sure.
And do you believe that the rates imposed
by the Company and collected by the Company should
reflect those costs and no other higher costs?
Yes , I believe they should reflect their
costs, but I also believe they should reflect future
costs, because the generation of power is going to
increase in the future due to the price of natural gas
increasing, oil and other costs involved in generating
electricity.
And one final question , are you aware that
when you pay your electric bill , it really is in two
parts?There are the base rates , which this case is
about, and then there are other rates called the power
cost adj ustments which are adj usted annually to reflect
the increased cost of natural gas or the lack of water,
do you know that?
Yes, sir.There are credits for certain
things and there are additions for other things to adjust
the rates.I just believe that in the future that if we
have small rate increases now, we I re going to have more
dramatic, bigger increases in the future and I think that
if the price is steadily increased, then the consumers
will have more opportunity and be encouraged to conserve
more than they would if there are small rate increases
CSB REPORTING
Wilder , Idaho
WEBER (X)
Public83676
now and then bigger in the future and then they won'
have enough time to adjust to those higher rates.
MR . HOWELL:I thank you for your
comments.No further questions.
COMMISSIONER SMITH:Commissioner
Hansen.
EXAMINATION
BY COMMISSIONER HANSEN:
Yes, I just have one, John.I was just
kind of curious as to what your average electricity bill
a month is now.
My average electric bill a month now is
probably about $25.00.I use moreIt varies.
electrici ty in the winter than the summer because I heat
my house and my water with electricity.
And I guess just a follow-up on that, just
in the last year, could you give me just a ball park
number of what maybe your highest electricity bill was?
About $84.00 last December.
COMM IS S IONER HANSEN:Okay,thank you.
That I s aIl have.
COMMISSIONER SMITH:Well,Mr.Weber,
guess I appreciate your coming forward tonight.This is
CSB REPORTING
Wilder , Idaho
WEBER (Com)
Public83676
the first time, I think, in my long history at the
Commission that anyone has ever asked to pay more.
would just comment that one of the regulatory principles,
I think, that the Commission attempts to honor is that
current customers should pay the cost of current service
and future customers pay the cost of future service , so
you see what I I m saying?You try to match the costs with
the customer base that I s using the electricity at the
current time.
THE WITNESS:I understand that.I just
think it would be showing wisdom to think about the
future and having the people gradually be able to
conserve and adjust for the higher prices in the future
rather than as in the case of natural gas with the 27
percent increase, that I s quite possible to happen in
electrical rates if there I s a drought or if there I s more
demand and Idaho Power has to make new generation power
sources.
COMMISSIONER SMITH:Well , and, of course,
it did happen in spades in 2001 when we had the energy
crisis and the rates went up, I think , 47 percent due to
the power cost adjustment passing through the high prices
on the wholesale market and the effects of the second
worst water year on record.Thank you very much for
coming this evening.
CSB REPORTING
Wilder, Idaho
WEBER ( Com)
Public83676
THE WITNESS:You're welcome.Thank you,
thank you all.
(The witness left the stand.
COMMISSIONER SMITH:Any others?
appears that no other members of the public have attended
this evening to give their comments, so with that, we
will adj ourn this hearing and our next hearing will take
place in pocatello, Idaho , I believe , next Monday evening
at 7: 00 p. m., so the hearing is recessed until next
Monday in Pocatello.Thank you all for attending.
(The Hearing recessed at 7: 10 p. m.
CSB REPORTING
Wilder, Idaho
COLLOQUY83676
T H E N T I C T I
This is to certify that the foregoing
proceedings held in the matter of the application of
Idaho Power Company for authority to increase its base
rates and charges for electric service in the State of
Idaho, commencing at 9:30 a., on Tuesday, April 11
2006, at the Commission Hearing Room, 472 West Washington
Street, Boise , Idaho , is a true and correct transcript of
said proceedings and the original thereof for the file of
the Commission.
Accuracy of all prefiled testimony as
originally submitted to the Reporter and incorporated
herein at the direction of the Comission is the sole
responsibility of the submitting parties.
OA:5 -f cYI1
CONSTANCE S. BUCY
Certified Shorthand
CSB REPORTING
Wilder , Idaho
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