20081222Vol II Twin Falls.pdf

ORIGINAL
..BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR ELECTRIC
SERVICE TO ELECTRIC CUSTOMERS IN
THE STATE OF IDAHO.
)
) CASE NO. IPC-E-08-10
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)
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BEFORE
COMMISSIONER MARSHA H. SMITH (Presiding)
COMMISSIONER MACK A. REDFORD
COMMISSIONER JIM D. KEMPTON.
PLACE:Twin Falls City Council Chambers
305 Third Avenue East
Twins Falls, Idaho
DATE:December 9, 2008
VOLUME II - Pages 60 - 92
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CSB REPORTING
Constance S. Bucy, CSR No. 187
23876 Applewood Way * Wilder, Idaho 83676
[phone] * [phone]
Email csbi§heritagewifi.com
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1 APPEARANCES
2 For the Staff:Neil Price, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83720-0074
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5 For Idaho Power Company:Barton L. Kline, Esq.
Idaho Power Company
Post Office Box 70
Boise, Idaho 83707-0070
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APPEARANCES
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1 I N D E X
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22 801 - Schedules 1-6 sponsored by
Mr. Eckert
Identified 76
CSB REPORTING
[phone]
2
3 WITNESS EXAMINATION BY
4 Lynn Tominaga
(Public)
Statement
Mr. Kline (Cross)
Commissioner Kempton5
6 Armand Eckert
( Public)
Statement
Commissioner Kempton
7
8
Shawn Barigar
(Public)
Statement
9 Tom Mikesell
( Public)
Statement
Commissioner Kempton
10
11
Dean Stevenson
( Public)
Statement
12 Roxy Carr
(Public)
Statement
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18 EXHIBITS
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20 NUMBER DESCRIPTION
21 FOR THE PUBLIC:
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INDEX/
EXHIBITS
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1 TWIN FALLS, IDAHO, TUESDAY, DECEMBER 9, 2008, 7:00 P. M.
2
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4 COMMISSIONER SMITH: Good evening, ladies
5 and gentlemen. This is the time and place set for a
6 hearing before the Idaho Public Utilities Commission in
7 Case No. IPC-E-08-10, further identified as in the matter
8 of the application of Idaho Power Company for authority
9 to increase its rates and charges for electric service to
10 its customers in the State of Idaho. My name is Marsha
11 Smith. 1'm one of the Commissioners and Chairman of
12 tonight's hearing. On my right is Mack Redford who is
president of the Commission, and on my left is Jim
Kempton, a Commissioner. The three of us are the Public
15 Utili ties Commission and we are the people who will be
16 making a decision in this case.
17 Our process tonight is a hearing for
18 taking public testimony, so we will invite those who have
19 indicated an interest to come forward to the podium. Our
20 attorney will ask you a couple of questions to get you
21 started and then we'll hear your statement and then we i 11
22 see if there are any questions for you. Commissioner
23 Kempton will ask you to raise your right hand and promise
24 to tell us the truth.
25 This will be followed by hearings next
CSB REPORTING
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60 COLLOQUY
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1 week of a technical nature in Boise where the Company 'S
2 case in chief will be put on and all of the intervenor
3 and Staff cases will be heard. Because all of the
4 decisions of the Commission must be based on a written
5 record, we have a court reporter here tonight to take
6 down your testimony verbatim so that we can have it in
7 our files and consider it as part of the record. For
8 that reason, it's important that only one person speak at
9 a time and it's not appropriate to callout from the
10 audience or otherwise disrupt the proceedings.
11 With that -- have I forgotten anything?
12 Oh, the parties, Mr. Kline, would you like to make an
13 appearance, please?
14 MR. KLINE: Yes, I would. Thank you,
15 Madam Chairman. My name is Bart Kline. I'm an attorney
16 wi th Idaho Power. With me here tonight representing
17 Idaho Power is Ric Gale here on my left. He's the vice
18 president for regulatory services for Idaho Power. Also,
19 in the back is Dan Ohlmstead, one of our community
2 0 representatives from here in the Twin Falls area and Echo
21 Chadwick is also here. She's in our communications
22 group. The reason that I want to introduce them is in
23 case people want to ask them any questions, they're
24 available for to you do that.
25 COMMISSIONER SMITH: Okay, thank you, and
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61 COLLOQUY
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20
1 would you like to make an appearance for the Staff?
2 MR. PRICE: Thank you, Madam Chairman. My
3 name is Neil Price. I'm a Deputy Attorney General
4 representing the Idaho Commission Staff. Also, here
5 representing the Commission in the back of the room is
6 Gene Fadness, our public information specialist, and
7 Daniel Klein, a member of our consumer section.
8 COMMISSIONER SMITH: Okay. All right, I
9 don't see any of the other parties present here, so we'll
10 let the record reflect that none of the other intervenors
11 have appeared tonight. Wi th that, we'll start with our
12 first name, Lynn Tominaga.
13
14 LYNN TOMINAGA,
15 appearing as a public witness, having been duly sworn,
16 was examined and testified as follows:
17
18 EXAMINATION
19 BY MR. PRICE:
Q Sir, could you please state your name and
21 spell your last for the record?
22 A My last name is easy. It's my first name
23 that's hard. My name is Lynn Tominaga, T-o-m-i-n-a-g-a.
24 My address or my mailing address is P.O. Box 2624, Boise,
25 Idaho, 83701-2624.
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62 TOMINAGA
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1 Q And are you an Idaho Power customer?
2 A Yes, I am.
3 Q Thank you. Go ahead.
4 A I'm here on behalf of the Idaho Irrigation
5 Pumpers Association. I'm the executive director for the
6 Idaho Irrigation Pumpers. We represent about 1,100 well
7 owners across southern Idaho, all the way from the
8 Payette area to the Ashton area. I'm here tonight just
9 to enter some information that I think is pertinent.
10 Over the last 15 years, we have seen many increases in
11 the base rates for irrigation, from transmission to
12 distribution to production and the funny, interesting
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14
part of all of this is that the irrigation load has not
increased any, and so we have seen -- for example, the
15 transmission increase change has been about 115 percent
16 since 1993. We're looking -- and the non-irrigation
17 change or rate has been about 188 percent over that same
18 time period, but yet, we haven't really seen new
19 transmission going for irrigation over that last 15
20 years.
21 It goes the same for distribution. We've
22 seen a 77 percent change in the distribution costs for
23 irrigation. We really haven't seen any new irrigation go
24 in since there i s been a moratorium over the Eastern Snake
25 Plains since 1992, so there's been no new irrigation come
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63 TOMINAGA
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1 in because of the moratorium, but yet, we've seen a rate
2 change of 77 percent, and for the non-irrigation it's
3 been 151 percent. In the area of production, energy
4 production, we've seen about a 40 percent increase while
5 the non-irrigation has seen about an 80 percent increase,
6 and so the question that comes to the irrigators' mind is
7 that we have been hit for these increases over the last
8 15 years, but we haven't really seen other than we're
9 pushed into the higher cost of service because the base
10 is moving up on the electrical base for the Power
11 Company, but yet, we're as ked to keep increasing the cost
12 for the irrigators even though we're not the ones who are
13 causing that increase.
14 The other issue and I don't have any exact
15 information or figures is that last year farmers made
16 money last year for the first time in a long time. This
17 year it's going to turn upside down. Grain prices are
18 back down to where they probably would have been after
19 inflation. We're looking at four, four-and-a-half dollar
20 wheat, but the prices of inputs for fertilizer haven i t
21 really gone down or we haven't seen very much cost
22 reduction.
23 The litigation for fighting over the
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25
Eastern Snake Plain aquifer has increased.I represent
another group, we've spent over $1 million a year in
CSB REPORTING
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64 TOMINAGA
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1 li tigation. We're seeing all kinds of increased costs
2 coming to the irrigation sector, but yet, we're being
3 asked to increase the -- asked for, take a lion's share
4 sometimes percentage-wise, at least, for increasing
5 costs. With that, I'LL probably provide some written
6 testimony before the 19th, but I thought we would at
7 least try and get this entered into the record for the
8 Commissioners for their consideration.
9 COMMISSIONER SMITH: Thank you. Let's see
10 if there are any questions for you. Mr. Kline.
11
12 EXAMINATION
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14 BY MR. KLINE:
15 Q Just one follow-up, Mr. Tominaga. You say
16 that you will be presenting this testimony filing with
17 the Commission before the 19th?
18 A Yes, I will.
19 Q Well, one of the problems I've got, of
20 course, is that you've presented a lot of statistical
21 information about cost increases and, of course, we
22 really don't have an opportunity to check those figures
23 and I'm not sure --
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A I'll cite my sources.
Q If you'll give us whatever you've got. I
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65 TOMINAGA (X)
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1 suppose will I be able to ask Mr. Yankel questions about
2 those?
3 A I'm pretty sure that you will.
4 Q Okay, if you get those to me before the
5 hearing starts next week, I'll be fine.
6 THE WITNESS: Any questions from anyone
7 else?
8 COMMISSIONER SMITH: Any questions from
9 the Commission? Commissioner Kempton.
10
11 EXAMINATION
12
13 BY COMMISSIONER KEMPTON:
14 Q Mr. Tominaga, this is sort of an aside
15 question, it doesn't relate directly to the power issues
16 you i ve described here, but I was wondering how you would
17 comment on the fact that perhaps if the pumpers and
18 irrigators produced more water downstream through Idaho
19 Power that perhaps your rates could come down?
20 A It depends on the time of year, and this
21 doesn't have anything to do with the rate case, but I'd
22 like to maybe at some time in the future either
23 individually or as a group probably try and come and
24 address the Commissioners on the comprehensive aquifer
25 management plan that has just been proposed by the Idaho
CSB REPORTING
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66 TOMINAGA (Com)
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1 Water Resource Board and is going through a process of
2 public hearings. That will also have an impact upon
3 what's going to happen with electrical rates. Right now
4 there's a funding formula that's being looked at of 7-$10
5 million per year from people that are on the Eastern
6 Snake Plain. They're looking at a $3 million fee from
7 agriculture, a $3 million contribution from the state, a
8 million-and-a-half from Idaho Power Company, $700,000
9 from the municipalities that are on the Eastern Snake
10 Plain, $200,000 from the spring owners, aquiculture folks
11 in the Thousand Springs area and probably 250-$300,000
12 from the industrial and commercial users.
13 They haven't decided how they're going to
14 collect it or if there's enough support to do this, but
15 they're looking at a 7-$10 million fund every year for
16 the next 10 years to try and provide a stabilization of
17 the aquifer so that we'll quit fighting over water in the
18 Eastern Snake Plain. I didn't answer your question
19 because I i m not sure yet where the legal precedence is
20 going to -- the director recently has issued a permanent
21 license at the Milner Dam that is a hydropower license
22 that's held by Ida-West and the canal companies in that
23 area that made hydropower subordinate to the recharge.
24 In the past, they had a 5,700 cfs water
25 right at Milner and any water that came down the Snake
CSB REPORTING
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67 TOMINAGA (Com)
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1 had to fulfill that hydropower water right first before
2 we could do recharge. With this decision by the
3 director, it could change the dynamics of recharge and it
4 could affect the generating capacity of Idaho Power, but
5 most of the information that we have from our
6 hydrologists are telling us that 90 to 95 percent of the
7 water that's recharged into the aquifer comes back out.
8 It might not come out for the first six months or it
9 might not come out for the first year or it might take a
10 couple of years, but the water will eventually come out
11 if the recharge is done on a consistent basis and I think
12 that helps everybody.
13 Now, hopefully, that answers part of your
14 question about whether we want to see lower rates. Yes,
15 we would like to see low rates because that i s how we
16 operate on the Eastern Snake Plain, but with the
17 recharge, it means lower pumping levels. It also means
18 the water comes back for the Power Company to generate
19 power.It might not be at the right time and that's one
20 of the maj or issues that we have to try and resolve.
21 Q Okay, Madam Chairman, Mr. Tominaga, this
22 question is similar to the first one and although it does
23 not relate specifically to the provisions in IPC-E-08-10,
24 the current rate case, it nevertheless applies to it in
25 terms of operational costs and that question is I would
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68 TOMINAGA (Com)
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1 like your impression of the work that the Idaho
2 Irrigation Pumpers Association is doing in attempting to
3 negotiate some of the provisions that are coming out of
4 ESA requirements for early release of water out of the
5 Hells Canyon complex for fish mitigation.
6 A Since the pumpers really don't have
7 storage, we're mainly relying upon storage from the
8 reservoirs, the surface water users or the space holders
9 wi thin the reservoirs. Under the ESA right now, the
10 irrigation pumpers probably do not have a legal
11 obligation to supply water, but we probably have a moral
12 obligation to do so. Because we're irrigators, we're all
13 in this situation together and we need to be able to work
14 together to try and solve the issue of providing water
15 when necessary to fulfill the Endangered Species Act.
16 There has been a new snail that's been
17 found below Minidoka Dam. They're doing -- I attended an
18 environmental impact statement meeting. They're going to
19 be taking a look at how that snail and the water
20 requirements below Minidoka Dam like Walcott which is
21 just a little ways from here could affect the flows of
22 the reservoirs and the flows of the Snake. It might mean
23 increased wintertime flows. Probably the flows that take
24 place during the summer probably will fulfill the needs
25 of the habitat, but it's going to take about a two- or
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69 TOMINAGA (Com)
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1 three-year period before they really find out what the
2 needs of that particular snail is going to be.
3 They thought it was extinct. They've been
4 looking for it for three years. They finally found a
5 snail and they did the DNA on it. It is one of the ones
6 that are considered to be on the endangered species list,
7 so not only do we have salmon that we have concerns
8 about, there are also snails in the middle of the Snake
9 Ri ver that are a concern.
10 COMMISSIONER SMITH: Thank you very much
11 for your testimony.
12 THE WITNESS: Thank you very much.
13 (The witness left the stand.)
14 COMMISSIONER SMITH: Next we have Armand
15 Eckert.
16
1 7 ARMAND ECKERT,
18 appearing as a public witness, having been duly sworn,
19 was examined and testified as follows:
EXAMINATION
23 BY MR. PRICE:
24
25
Q Sir, could you please state your name and
spell your last for the record?
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70 ECKERT
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1 A Armand Eckert, E-c-k-e-r-t.
2 Q And what is your physical address?
3 A It's 716 East 4900 North, Buhl.
4 Q In Idaho?
5 A In Idaho, yes.
6 Q And are you an Idaho Power customer?
7 A I represent Magic Water Company, Magic
8 Irrigators, Inc. and Maurice H. Eckert & Sons, Inc. who
9 are customers of Idaho Power.
10 Q Thank you. Please go ahead.
11 A Commissioners, thank you for going around
12 the state. It's much appreciated to see you here in Twin
13 Falls rather than the standard place in Boise and it is
14 much appreciated. I don't know what the process or
15 procedure is, but I do have some schedules. I don't know
16 if to give you them or
17 COMMISSIONER SMITH: You can give them to
18 me. Do you have more than one copy?
19 THE WITNESS: I do.
20 COMMISSIONER SMITH: Maybe you can provide
21 an extra copy.
THE WITNESS: I just simply did some
23 schedules to kind of give you a gist of what us as
24 indi vidual farmers are facing. First, let me explain
25 that Magic Water Company is a high lift pumping company
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71 ECKERT
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1 that provides water to the farmers up above which
2 includes the Magic Irrigators and Magic Larson Farms and
3 Maurice Eckert & Sons, Inc. so the schedules I provided
4 you, Schedules 1, 2, 3 and 4, I believe, are schedules
5 solely for the high lift pumping station of Magic Water
6 Company, and basically, they are just simply the summary
7 of the invoices that we have received from Idaho Power
8 Company and on Schedule 5, I just kind of briefly
9 summarize what those schedules show and I just want to
10 briefly go over those.
11 Our average costs, and I admit that it
12 includes all the costs, including the power cost
13 adjustment, the energy efficiency and that kind of thing,
14 but our 2006 average rate was 3.9 cents. 2007 rate was
15 4 point, almost 4.2 cents, and our 2008 rate was 5.22
16 cents, and then in 2009, I've estimated it. I'm just
17 simply taking the new rate increases, assuming the power
18 cost adj ustment is going to be the same and it comes out
19 to almost 6.1 cents a kilowatt. Those average increases
20 from 2006 to 2007 is 7.16 percent. 2007 to 2008 is 24.58
21 percent, and the estimated rate increase from 2008 to
22 2009 is about 15.9 percent.
23 That's almost a 50 percent increase in
24 three years in irrigation rates and that's based on
25 actual, and our total consumption for each of those three
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72 ECKERT
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1 years was pretty consistent. It doesn't vary too much if
2 you'll take a look at Schedules 1, 2 and 3. Our pumping
3 costs on Magic Water on Schedule 5 have gone from
4 $440,000 in 2006 to almost 738,000 estimated in 2009.
5 That's almost a $300,000 increase in three years. That
6 is a pretty substantial increase for our operation to
7 absorb.
8 I also just put in some Magic Irrigators
9 and Eckert & Sons increases. It's showing a $100,000
10 increase in three years for Magic Irrigators and a
11 $150,000 increase for Eckert & Sons. I did not go back
12 to the original invoices on those two entities, but just
13 to show that for explanatory purposes, so I guess I would
14 like to leave with the Commission that the increases that
15 we have experienced the last three years, frankly, are
16 quite substantial. If you get up to about 6.1 cents a
17 kilowatt, I think that's even more than what Idaho Power
18 is paying for wind production, so I just thought I'd
19 throw that comparison in and so it's substantial.
20 We don't know what the power cost
21 adj ustment is going to be for this next year, but with
22 the sun shining outside, I can imagine it's going to be
23 just the same as it was in 2008, if not higher, so we're
24 obviously concerned about that. I don't know, I don't
25 understand the load factor based pricing system. I've
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73 ECKERT
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1 had it explained to me. I don't understand it. If I
2 don't understand it, I guess I would be against it. I
3 just don't understand it.
4 The demand, I would like to just address
5 demand. Our demand right now, they're proposing to $ 5.67
6 a kilowatt. I put in extra pumps based on the belief of
7 what Idaho Power has told me and tried to help in the
8 past as saying the closer your pumps are to your
9 irrigation system, the more efficient your systems are,
10 so I have extra pumps and I tend to turn them off and on
11 as I turn on different systems, and I guess what I'm
12 trying to achieve is better efficiency, but as the demand
13 rate goes up, I am now not doing that, because if I turn
14 on a 200 horsepower pump, if I only operate it for one
15 day or 30 days, it costs me almost 11, $1,200 and I guess
16 on the demand issue, frankly, I would rather see you
17 create a demand that is on a total farm basis rather than
18 on a per meter basis, because the demand I'm going to use
19 is basically not going to require any more demand for my
20 total farm, but it is going to require that I pay more on
21 demand if I use it on a per meter basis and so I wish the
22 Commission would take a look at that.
23 Just two other things. On the billing
24 period and maybe Idaho Power could look into this, if you
25 look under on Schedule 6, at the very end it says
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74 ECKERT
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1 "Seasonal Definition" and maybe someone can explain this
2 to me, it talks about the in season demand will be May
3 through September. Basically, that is five months, but
4 if you look on Schedule 1, 2 and 3, we only get an in
5 season demand for four months and we're not quite sure
6 why. We believe that maybe that may be an error in the
7 billing process or procedure. Maybe somebody can take a
8 look at that and clarify that language for us because we
9 only are getting billed in season demand for four months
10 and I believe it should be five and it may create having
11 to go back and change some of the billing from past
12 periods if that is in fact the case.
13 And then the energy efficiency services,
14 you know, that increased from $50.00 based on a
15 percentage basis to 2,500 to $3,000 a month. Not
16 necessarily opposed to that, except for when you take
17 the farmers can use it, like Magic Irrigators and Eckert
18 & Sons, the farming entities, but you really can't create
19 much efficiency with a pumping station that pumps water
20 to the top and I would say that's maybe a bit unfair
21 including pumping plants that cannot use the efficiency,
22 so that's my comments. I'll stand for questions.
23 COMMISSIONER SMITH: Okay, thank you,
24 Mr. Eckert. Let's identify this as Exhibit 801
25 consisting of six pages.
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75 ECKERT
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1 (Exhibit No. 801 was marked for
2 identification. )
3 COMMISSIONER SMITH: Questions for
4 Mr. Eckert? Mr. Kline?
5 MR. KLINE: Not a question,
6 Madam Chairman, just an indication to Mr. Eckert that
7 Idaho Power, of course, would certainly be willing to
8 meet with him and talk about the issues that he's raised
9 wi th you here today, both on the seasonality and then
10 also on Schedule 5, the average increases, explain how
11 the PCA, frankly, is swinging that to a great extent. I
12 note that you didn't include 2006, of course, which was a
13 credi t year.
14 THE WITNESS: No, I did include 2006.
15 MR. KLINE: So it is in there, okay.
16 COMMISSIONER SMITH: Okay.
17 MR. PRICE: No questions.
18 COMMISSIONER REDFORD: I have no
19 questions.
20 COMMISSIONER SMITH: Commissioner
21 Kempton.
22
23
24
25
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76 ECKERT
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1 EXAMINATION.2
3 BY COMMISSIONER KEMPTON:
4 Q Madam Chairman, Mr. Eckert, I guess
5 Mr. Kline answered the question that I had, but
6 nevertheless, I think it's relevant and that is some of
7 these things seem to be questions that perhaps you could
8 have taken to Idaho Power earlier than the time that
9 you're bringing them at this point in time, so I assume
10 that maybe you have done that in the past, maybe you
11 haven't, could you describe any processes you've used in
12 the past to try and resolve these issues either through
.13 Idaho Power or through the Commission, whether they were
14 successful or not?
15 A Madam Chairman, Commissioner Kempton, I
16 appreciate those comments and yes, we do have a pretty
17 good working relationship with Idaho Power, especially
18 wi th their agricul tural division. I feel quite
19 comfortable in doing that, but a couple of these things
20 just came to my attention within the past two days when I
21 was going through these calculations, so I apologize, I
22 guess, to Idaho Power on bringing a couple of the issues
23 up on demand and the billing cycle issue. My real
24 purpose here tonight was to at least show you the effect.25 the rate increases are having on us.
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77 ECKERT (Com)
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1 COMMISSIONER SMITH: And just for your
2 clarification, on Schedule 5 of your exhibit when you
3 have 2006, 2007, 2008 and 2009, does that 2009 estimated
4 rate include all of the increase Idaho Power has
5 requested?
6 THE WITNESS: Yes, it does.
7 COMMISSIONER SMITH: Thank you for your
8 testimony. We appreciate you coming.
9 THE WITNESS: Thank you.
10 (The witness left the stand.)
11 COMMISSIONER SMITH: Shawn Barigar. I'm
12 sorry for butchering that.
13 MR. BARIGAR: You actually got it right.
14
15 SHAWN BARIGAR,
16 appearing as a public witness, having been duly sworn,
17 was examined and testified as follows:
18
19
20
EXAMINATION
21 BY MR. PRICE:
22 Q Please state your name and spell your last
23 for the record.
24
25
A Shawn Barigar. That's B-a-r-i-g-a-r.
Q And what is your physical address?
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78 BARIGAR
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1 A My home address is 898 Morning Sun Drive
2 here in Twin Falls, Idaho.
3 Q And are you an Idaho Power customer?
4 A I am both a residential and a business
5 customer of Idaho Power.
6 Q Please proceed.
7 A Good evening. I'm Shawn Barigar. I'm the
8 president and CEO of the Twin Falls area Chamber of
9 Commerce. We represent approximately 800 business
10 members here in south central Idaho and our mission is to
11 provide them a strong business voice, vision and focused
12 leadership to enhance the economic vitality and quality
13 of life in our community. On behalf of our business
14 membership, I'm offering support for the proposal from
15 Idaho Power this evening. Even in tough economic times,
16 it's critical to invest in our future to ensure a
17 posi ti ve recovery in the economy and a bright future
18 moving forward.
19 Idaho Power's proposal allows them to do
20 just that, invest in the important infrastructure to
21 address generating capacity and electrical delivery
22 systems to serve their customers in Idaho.Idaho Power
23 has a proven track record of being a responsible
24 corporate citizen in our state. The Company is a partner
25 in economic development and business sustainabili ty and
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79 BARIGAR
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1 they provide the essential and necessary electrical
2 services to power industry, agriculture, public
3 facili ties, main street store fronts and our homes.
4 I understand that times are tighter in
5 Idaho than they have been in recent years; however, we
6 are faring much better than other areas in the country.
7 By working together with our common values and
8 principles, we will recover from these economic times.
9 Support of al ternati ve energy and energy efficiency
10 programs will reduce some demand on our current energy
11 system, but capital investment in new generation and
12 transmission lines as well as improvements to existing
13 infrastructure are needed to ensure reliable and
14 responsible electricity for my children and all future
15 Idahoans.
16 In south central Idaho we're proud of our
17 di verse economy. Agriculture continues to be our base,
18 but we've added manufacturing facilities, high-tech
19 sectors and growing retail and recreational opportunities
20 for our local economy. All of these depend on the
21 availabili ty of low cost and efficient energy resources
22 in the future and all of us have a responsibility to
23 support our communities as a whole by sharing in that
24 investment for our collective future success, so again, I
25 would encourage approval of the proposal from Idaho
CSB REPORTING
[phone]
80 BARIGAR
Public
.
.
.
1 Power.
2 COMMISSIONER SMITH: Let's see if there
3 are any questions.
4
5 Madam Chairman.
6
7
MR. KLINE: No questions,
MR. PRICE: No questions.
COMMISSIONER SMITH: Is Idaho Power a
8 member of your group?
9
10
11 tonight.
THE WITNESS: They are, yes.
COMMISSIONER SMITH: Thank you for coming
12 (The witness left the stand.)
13
14
COMMISSIONER SMITH: Tom Mikesell.
15 TOM MIKESELL,
16 appearing as a public witness, having been duly sworn,
17 was examined and testified as follows:
20
18
19
21 BY MR. PRICE:
22 Q
23 spell the last?
24
25
A
Q
EXAMINATION
Sir, can you please state your name and
Tom Mikesell, M-i-k-e-s-e-l-l.
And what is your physical address?
CSB REPORTING
[phone]
81 MIKESELL
Public
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.
.
1 A 430 Pierce Street, Twin Falls, Idaho.
2 Q And are you an Idaho Power customer?
3 A Yes, I am.
4 Q Thank you. Please proceed.
5 A Good evening. As I stated, my name is Torn
6 Mikesell. I am the chairman of the Twins Falls County
7 Board of Commissioners. I'm not envious of the task
8 you're facing tonight. We are reading every day that our
9 economy is spiraling downward. This new challenge is
10 only one of the many that our constituents will face this
11 winter. We have families trying to decide which things
12 they will make, the power bill or will they buy food for
13 their family. Next week these same people will ask
14 themsel ves will they pay their property tax or will they
15 pay their electric bill.
16 Twin Falls County knows the importance of
17 planning. Just like Idaho Power's customer base, ours
18 too is growing. We work diligently searching for ways to
19 meet the demands of our citizens today, while always
20 looking to the future to ensure their needs are met next
21 year and the years after. Idaho Power, like any other
22 business, must plan for the future. They're looking at
23 alternative energy sources of all kinds, new transmission
24 lines not only to improve delivery but to improve
25 securi ty, too, just like jails, courthouses and sheriffs'
CSB REPORTING
[phone]
82 MIKESELL
Public
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.
.
19
20
1 cars. Important infrastructure costs money.
2 We must meet these demands both for the
3 public and private sector and that will mean increasing
4 costs and fees. The good people of Idaho are asking that
5 you look into your crystal ball and do what is right for
6 them today and tomorrow. Thank you.
7 COMMISSIONER SMITH: Let's see if we have
8 any questions.
9 MR. KLINE: No questions.
10 MR. PRICE: No questions.
11 COMMISSIONER REDFORD: No questions.
12 Thank you.
13 COMMISSIONER SMITH: Commissioner Kempton.
14
15 EXAMINATION
16
17 BY COMMISSIONER KEMPTON:
18 Q Commissioner Mikesell, is that it?
A Yes.
Q First of all, one Commissioner to another,
21 let me thank you for the job that you do. It's a tough
22 job. I'm familiar with the Twin Falls County
23 Commissioners. My sister was a Commissioner here at one
24 time and I know the work that they do, which brings up a
25 question for you about the Idaho Power proposal. Since
CSB REPORTING
[phone]
83 MIKESELL (Com)
Public
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.
1 it is a rate increase, do you have programs or do you
2 assist in programs for the economically disadvantaged
3 customer?
4 A Yes, we do.
5 Q Could you run through some of those that
6 you have here in Twin Falls?
7 A We have a direct payment plan that they
8 can use through our welfare department in collaboration
9 wi th the Community Action Agency Partnership and we also
10 help fund the Community Action Agency Partnership.
11 Q Is there a county-funded program where
12 you're actually use county funding?
13 A Yes, there is.
14 Q Okay, which one is that?
15 A It's the county indigent plan. We have
16 not only medical but energy and housing needs that we can
17 meet.
18 Q Do you have, and I know this is an unfair
19 question, but I'll ask it anyway, Commissioners always
20 get unfair questions, do you know about what the size of
21 that budget is that you have for the indigent funding
22 that would relate to energy?
23 A It varies by year since we also help fund
24 the Community Action Partnership and work with them in
25 collaboration with Idaho Power and other energy sources,
CSB REPORTING
[phone]
84 MIKESELL (Com)
Public
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.
1 they fund the maj ori ty of it, but last year we had over
2 $2,000 in electrical aid that we handed out to the
3 ci tizens of Twin Falls County.
4
5 for coming tonight.
COMMISSIONER SMITH: Thank you very much
6
7
8 Commissioner.
THE WITNESS: Thank you.
COMMISSIONER REDFORD: Thank you,
9 (The witness left the stand.)
19
10
11
12
13
COMMISSIONER SMITH: Dean Stevenson.
DEAN STEVENSON,
appearing as a public witness, having been duly sworn,
14 was examined and testified as follows:
15
16
17
18 BY MR. PRICE:
Q
20 the last?
21
22
23
24
25
A
Q
A
Q
A
EXAMINATION
Can you please state your name and spell
Dean Stevenson, S-t-e-v-e-n-s-o-n.
And what is your physical address?
575 West 600 North, Paul, Idaho.
And are you an Idaho Power customer?
Yes, I am.
CSB REPORTING
[phone]
85 STEVENSON
Public
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.
.
1 Q Please go right ahead.
2 A Okay, Commissioners, I appreciate the
3 opportuni ty to come here day. I represent myself as an
4 irrigator and I also represent Idaho Irrigation Pumpers
5 where I'm a board member. The Idaho Power Company is
6 seeking a 15 percent rate increase for the 2009
7 irrigation class and we feel, I personally feel and we as
8 an irrigator pumpers feel, this is inappropriate. The
9 residential and commercial growth in the Treasure Valley
10 is the principal driver of increased costs on Idaho Power
11 Company's system and resulting need for this rate
12 increase.
13 The irrigation class has not been causing
14 that cost. Growth in the irrigation class has been flat
15 for the last 25 years. In fact, I think the numbers, the
16 actual demand, the kilowatt-hours used from 1993 to 2007
17 decreased 4.4 percent for total kilowatt-hours used, and
18 the irrigation load is probably not the cause of the
19 increased demands on Idaho Power's system.
20 The Idaho Power Company's cost of service
21 study assigns a disproportionate amount of growth cost to
22 the irrigation class, notwithstanding the fact that the
23 class has not caused a growth. We believe this is due to
24 a flaw in the cost of service methodology which assumes
25 that all customer classes grow at the same rate. Idaho
CSB REPORTING
[phone]
86 STEVENSON
Public
.
.
.
1 Irrigation Pumpers advocates that the use of the growth
2 corrected component to the cost of service study to
3 change how generation and transmission costs are assigned
4 to a customer class is more appropriately assigned to
5 growth cost to the classes that are growing. With this
6 change, the irrigation class rate of return is several
7 times higher than the system average.
8 Thus, Idaho Irrigation Pumpers believe
9 that the irrigation class should get a below average rate
10 increase or no increase at all. The Idaho Irrigation
11 Pumpers has also been instrumental in working with the
12 Idaho Power Company introducing their fine current Peak
13 Rewards Programs that annually shaves approximately 40
14 megawatts of summer peak load. These benefit the
15 irrigation class by reducing the allocation of summer
16 peak costs and benefits Idaho Power's system by helping
17 delay the purchase of costly peak generating resources.
18 Idaho Power Company and Idaho Irrigation
19 Pumpers have recently started a proceeding before the
20 Public Utili ties Commission to change the Peak Rewards
21 Program to allow Idaho Power Company to interrupt
22 participating irrigators' pumps on demand during June and
23 July. It is estimated this type of program could
24 increase the reduction in summer peak load from the
25 current 40 megawatts to approximately over 200 megawatts,
CSB REPORTING
[phone]
87 STEVENSON
Public
.
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.
20
1 and Idaho Irrigation Pumpers advocates that the PUC
2 should consider the new programs effecting further
3 reducing summer peak load during the 2009 irrigation
4 season in setting the irrigation's class rates in this
5 case; in other words, the irrigation class rates would be
6 set lower than they otherwise would because it would not
7 be contributing to as much peak, of Idaho Power i speak
8 summer load due to the projected 200 megawatt reduction
9 in summer peak load for this new program. As a member of
10 that irrigation class, I support those proposed changes
11 in the Peak Rewards Program.
12 COMMISSIONER SMITH: Does that conclude
13 your statement?
14 THE WITNESS: Yes.
15 COMMISSIONER SMITH: Let's see if there
16 are questionsw
17 MR. KLINE: I don't have any questions.
18 MR. PRICE: No questions.
19 COMMISSIONER REDFORD: I have none.
COMMISSIONER SMITH: Nor I. Thank you
21 very much for your testimony.
22
23
24
25
THE WITNESS: Thank you.
(The witness left the stand.)
COMMISSIONER SMITH: Roxy Carr.
CSB REPORTING
[phone]
88 STEVENSON
Public
.
.
.
1 ROXY CARR,
2 appearing as a public witness, having been duly sworn,
3 was examined and testified as follows:
4
5 EXAMINATION
6
7 BY MR. PRICE:
8 Q Can you please state your name and spell
9 your last?
10 A Roxy Carr, C-a-r-r.
11 Q What is your physical address?
12 A 340 Elm Street North, Twin Falls.
13 Q Are you an Idaho Power customer?
14 A Yes, sir.
15 COMMISSIONER REDFORD: Can you speak up a
16 little, Ms. Carr?
17 THE WITNESS: Okay, how is that? I've
18 listened to everybody talk here about all of the
19 increases and everything. I'm the co-chair of Idaho
20 Community Action Network. We've worked quite a bit with
21 you folks and I wanted to say that we are supporting the
22 Staff recommendations. The winter is going to be hard
23 for everybody and with the economy and the mortgage
24 crisis, high food costs and everything and if you're on a
25 fixed income, all of these other costs are going up, but
CSB REPORTING
[phone]
89 CARR
Public
.
.
.
1 your income does not go up as high as the rate increases
2 do, so my concern is with our elderly people who are on a
3 fixed income, how are they going to be able to afford
4 their bills or choose their medicine or choose their food
5 and you guys have worked on a tiered proj ect that I think
6 is going to work out really well from what I've heard of
7 it. I would like a little more information on that.
8 To my understanding, the way I understand
9 it, is if you keep your kilowatt-hours wi thin a certain
10 block, then there's not an increase or a very limited
11 increase and it goes up for the three tiers; is that
12 correct? Okay, that sounds good. Okay, with the support
13 of the three tiered proposal, this is one way to give the
14 low income people the power to reduce their bills.
15 Making the first and second blocks larger is a great deal
16 because a lot of times it's just a kilowatt or two
17 difference, so that's going to make a big deal for the
18 low income people. Customers can keep their usage in
19 those blocks and keep their bills affordable and help
20 keep energy costs low for everyone.
21 Some low income customers have no control
22 over their energy usage because their homes are not
23 weatherized or they need a little bit of work to help
24 keep that energy in and so we would like to see and
25 suggest that maybe Idaho Power could put a little more
CSB REPORTING
[phone]
90 CARRPublic
.
.
.
1 money into the weatherization funding program to help
2 some of these people that need the weatherization so they
3 can keep their bills low. That would be great, and
4 that's what I have to say.
5 COMMISSIONER SMITH: Thank you very much.
6 Let's see if there are any questions.
7 MR. KLINE: No questions.
8 MR. PRICE: No questions.
9 THE WITNESS: Thank you.
10 COMMISSIONER REDFORD:No questions.
11 Thank you.
12 COMMISSIONER SMITH: Thank you very much.
13 (The witness left the stand,)
14 COMMISSIONER SMITH: That is the end of
15 the names of people who have indicated a desire to
16 testify tonight. If there is anyone who did not
17 previously sign up, but who now has an interest, we'd be
18 happy to you invite you to come forward at this time.
19 Seeing no takers, we will close the hearing for tonight
20 and reconvene the technical hearings next Tuesday at
21 9:30 a.m. in the Commission Hearing Room. With that, we
22 are adjourned. We thank you all for your attendance and
23 your thoughtful comments.
24 (The Hearing adjourned at 7: 45 p.m.)
25
CSB REPORTING
[phone]
91 COLLOQUY
.
.
.
1 AUTHENTICATION
2
3
4 This is to certify that the foregoing
5 proceedings held in the matter of the application of
6 Idaho Power Company for authority to increase its rates
7 and charges for electric service to electric customers in
8 the State of Idaho, commencing at 7:00 p.m., on Tuesday,
9 December 9, 2008, at the Twin Falls City Council
10 Chambers, 305 3rd Avenue East, Twin Falls, Idaho, is a
11 true and correct transcript of said proceedings and the
12 original thereof for the file of the Commission.
13
14
15
16
17 ,-CJ
CONSTANCE S. BUCY
Certified Shorthand18
19
20 \\\11 II 1I1/f1,\\\ B '",,' G S. lJ", I""" ,.... '-' L "',.. ~v \",\11"""" r 'J-. "R" r, ,..ii "' "/~ ,
~ ~ ~..~~r r "'~ ~:: ". 2' ~ ~~Cf~O O~o~..Z~.. -..-"0.,4" ..:..-:. .,\, "'U-n" f,,~ ::.... V """'It r v ".......: ~ ~,. tti ,..' L. .../ 'tIPIHh\' 0" ,..0'/ ,/,', ST A 1~ ""Ill"., \'..
'i Jl ¡ i \ \ \ \ \ \
21
22
23
24
25
CSB REPORTING
[phone]
92 AUTHENTICATION