HomeMy WebLinkAbout20081121IPC to Staff 23-51.pdfDONOVAN E. WALKER
Corporate Counsel
eslDA~POR~
An IDACORP Company
November 21,2008
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-08-16
Advanced Metering Infrastructure (''AMI' Technology
Dear Ms. Jewell:
Enclosed for filing please find an original and three (3) copies of Idaho Power
Company's Response to the Second Production Request of the Commission Staff. The
response to Request No. 49 calls for substantial analysis and calculation and, therefore, wil
be provided as soon. as possible.
I would appreciate it if you would return a stamped copy of this letter for Idaho
Power's file in the enclosed stamped, self-addressed envelope.
Donovan E. Walker
DEW:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise. ID 83702
DONOVANE. WALKER, ISB No. 5921
BARTON L. KLINE, ISB No. 1526
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: 208-388-5317
Facsimile: 208-338-6936
dwalkercaidahopower.com
bklinecaidahopower.com
RECE1Vt:t"
20DBNOV 21 . c. Li
PH 3: OS
UTtdß1sO PUBLíc
COMMISSJO,11
iy
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)IN THE MATTER OF THE APPLICATION ) CASE NO. IPC-E-08-16
OF IDAHO POWER COMPANY FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE ) IDAHO POWER COMPANY'S
AND NECESSITY TO INSTALL ADVANCED ) RESPONSE TO THE SECOND
METERING INFRASTRUCTURE ("AMI") ) PRODUCTION REQUEST OF THE
TECHNOLOGY THROUGHOUT ITS ) COMMISSION STAFF TO IDAHOSERVICE TERRITORY ) POWER COMPANY
)
COMES NOW, Idaho Power Company ("Idaho Powet' or "the Company"), and in
response to the Commission Staffs Second Production Request to Idaho Power
Company dated October 31,2008, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1
REQUEST NO. 23: What intervals wil Idaho Power use for reading meters with
the AMI system?
RESPONSE TO REQUEST NO. 23: The AMI system wil be set up to read each
meter daily beginning at midnight followed by three additional readings at eight hour
intervals.
The Company is also planning to collect 15 minute energy consumption on a
smaller subset of customers for electrical system and energy consumption modeling.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION.
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2
REQUEST NO. 24: Does Idaho Power plan to use the AMI technology for
remote connects and disconnects in the future? Please explain.
RESPONSE TO REQUEST NO. 24: At this time, the Company has not identified
any sites for installation of remote connect/disconnect devices, and has no plans to
deploy these devices as part of the initial AMI deployment. However, upon an individual
case evaluation, the Company may consider connect/disconnect devices for a customer
in a remote location where the account has a high connect/disconnect activity.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST NO. 25: What are the read success rates and percentage of
estimated readings with Idaho Power's existing metering system? What are the
anticipated read success rates and percentage of estimated readings with the proposed
AMI system?
RESPONSE TO REQUEST NO. 25:
Method of Monthly kWh Daily kWh Read Hourly
Reading Billng Read Success Rate Consumption
Success Rate Data Read
Success
Rate
Manual 98.77%NA NA
AMI 99.9%99.9%98%
The above information is based on the most recent 12 months of data.
It is important to understand that the actual percent of estimated reads for
manually read meters is as high as 4.15% in the winter months, driving the average to
1.33% for the year. Also, the Phase I AMI area was historically our highest winter
estimated read area; however, with AMI there are no longer seasonal increases in
estimated reads as a result of snow.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
REQUEST NO. 26: What is the expected failure rate for AMI system meters
compared with conventional meters?
RESPONSE TO REQUEST NO. 26: Please see Idaho Power's response to
Request No. 22 of Staffs First Production Request.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
REQUEST NO. 27: What is the risk of long-term failure and what would be the
cost of temporary resources to manually read meters in the event of failure?
RESPONSE TO REQUEST NO. 27: The AMI system chosen is the only two-
way fixed network system capable of retrieving hourly data from all end points. This
system has been fully deployed at a large number of utilities for more than 10 years.
Through the investigation process, the Company did not uncover any incidents of
catastrophic meter or communications failure that resulted in significant reading
estimations. The chosen system represents the least risk alternative for AMI
installation. Based on the experience of other utilities with this system, and the
Company's Phase i experience, short of a major natural disaster or similar event that
would have also prevented reading of the current meters, there is no foreseeable impact
on the ability to read the AMI meters. Additionally, there are several documented
incidences in Pennsylvania and Florida where this system's performance during natural
disasters far exceeded the performance of manual processes.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6
REQUEST NO. 28: How often do meter readers notice and report problems with
the Idaho Power infrastructure as a result of their rounds?
RESPONSE TO REQUEST NO. 28: The Company does not keep records on
how frequently infrastructure problems are reported by personnel assigned to meter
reading as meter reading personnel are not trained to provide detailed inspection of the
distribution system.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7
REQUEST NO. 29: Wil there be more visual surveilance required of the system
by other Idaho Power personnel after the meter readers are no longer making rounds?
RESPONSE TO REQUEST NO. 29: The Company does not plan additional
visual surveilance of the system after AMI deployment. The frequent communications
planned for the AMI system and built in system monitoring capabilities wil be more
effective for timely discovery of most system problems.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 8
REQUEST NO. 30: A PLC system can generally reach all end points serviced
by the utility. Under what circumstances might the PLC system be unable to read a
meter?
RESPONSE TO REQUEST NO. 30: The planned PLC system cannot
communicate with meters when there is no power to the meter.
There is a short period after outage restoration or major switching events when
the system might not be able to catch-up on the read schedule and obtain all readings
from the system. In this type of event, the Company would prioritize meter reading to
obtain critical billng data, and plan to use the system's memory capabilities to obtain
any critical billng reads that were not obtained by the rescheduling of priorities.
Also, the PLC system can have diffculty communicating with meters when there
is noise on the power line, loose connections, or overloaded equipment.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9
REQUEST NO. 31: Can the new AMI meters be read in the same manner as the
existing meters if it is necessary to do so? If not, please explain.
RESPONSE TO REQUEST NO. 31: All AMI meters wil display the current kWh
and kW on an LCD display. Site readings can be obtained for kWh and kW if
necessary.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10
REQUEST NO. 32: With AMI wil the Company be able to schedule a future
meter read to automatically read the meter on a customer's requested closing or
opening date?
RESPONSE TO REQUEST NO. 32: The AMI meter wil be scheduled for
reading four times a day, the Company wil use the scheduled midnight read the day of
the request to complete all closing and opening meter read requests.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11
REQUEST NO. 33: How many regular cycle bils were sent to customers in
2007?
RESPONSE TO REQUEST NO. 33: Idaho Power sent 5,206,214 regular cycle
bils to its customers in Idaho in 2007.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -12
REQUEST NO. 34: How many regular cycle bils sent to customers in 2007
were estimated (not based on an actual meter reading)?
RESPONSE TO REQUEST NO. 34: Idaho Power sent 25,411 regular cycle bils
that were based on estimated usage to customers in Idaho in 2007.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY -13
REQUEST NO. 35: How many out of cycle (opening or closing) bils were sent
to customers in 2007?
RESPONSE TO REQUEST NO. 35: Idaho Power does not send out-of-cycle
opening bils. In 2007, 85,640 out-of-cycle closing bils were sent to customers in Idaho.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 14
REQUEST NO. 36: How many kWh went unbiled in 2007 as a result of the
Company's leaving meters connected between customers? What is the total dollar
value or those unbiled kWh?
RESPONSE TO REQUEST NO. 36: Idaho Power does not leave meters
connected between customers. If a new customer does' not request service at a
premise for which the current customer has requested service be discontinued, the
service is disconnected. As a result, Idaho Power does not incur unbiledkWh between
customers.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 15
REQUEST NO. 37: With the abilty to obtain out of cycle meter readings through
the proposed AMI system, how wil Idaho Power handle physical disconnects when a
customer closes his/her account? Wil there be an increase in unbiled kWh going
forward?
RESPONSE TO REQUEST NO. 37: For customer movement activities where a
customer moves out and another moves in, or a "landlord" agreement is in place, the
Company wil complete these requests with a reading from the AMI system.
In the situation where the customer wants the power turned off and another
customer is not taking over the service, or there is no "landlord" agreement in place, the
Company wil continue to perform a physical disconnect.
There wil be no increase in unbiled revenue as a result of implementing AMI to
collect readings to support customer movement activity.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 16
REQUEST NO. 38: Regarding opening bils prepared outside of regular biling
cycles in 2007, please provide how many of the readings on which the bils were based
were determined by: (a) an actual meter reading taken by a Company employee or via
remote meter reading; (b) a computer estimate; (c) a manual estimate made by a
Company employee; (d) a customer-provided reading; or (e) other methods.
RESPONSE TO REQUEST NO. 38: Idaho Power does not prepare opening bils
outside of regular billing cycles.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 17
REQUEST NO. 39: Please provide the year-to-year percentage decrease or
increase in the total number of estimated meter readings for 2004-2007.
RESPONSE TO REQUEST NO. 39: As can be observed in the table below, in
years with heavy snow fall and wet springs such as 2005 - 2006, the estimated meter
reading percentage wil increase.
The total Company estimated meter reading percent change is:
Year Percentage Difference
2004 -'2005 -23.80%
2005-2006 28.25%
2006 - 2007 -15.70%
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 18
REQUEST NO. 40: Please provide the year-to-year percentage decrease or
increase in the total number of misread or incorrect meter readings for 2004-2007.
RESPONSE TO REQUEST NO. 40: The total Company misread or incorrect
meter readings percent change is:
Year Percentage Difference
2004 -2005 1.70%
2005 - 2006 -0.05%
2006 -2007 -4.30%
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 19
REQUEST NO. 41: Please provide the reasons for and number of instances in
2007 where the Company had to rebil customers because a previous bil was based on
incorrect biling determinants, e.g., incorrect identification of multiplier or meter size.
RESPONSE TO REQUEST NO. 41: In 2007, Idaho Power prepared 15,658
corrected billngs. The specific reason for a corrected biling is not captured within the
Company's Customer Information System ("CIS"). Therefore, a tally of the specific
reasons for corrected billngs is not available. However, in 2007, the Company
identified 10,339 instances in which a meter reading problem, such as an incorrect
reading, was recorded. In addition, the Company identified 1,366 instances in which a
meter equipment problem, such as a failed meter, was recorded. In almost all cases, a
meter reading problem and a meter equipment problem resulted in a corrected billng.
In 2007, there were 5,440 instances in which a request was made either by a customer
or customer service representative for a meter re-read. Not all requests for meter re-
reads result in corrected bilings, and a specific count of rebillngs resulting from these
meter re-reads is not available. The total number of meter reads performed by the
Company in 2007 was 5,738,903.
This response to this Request was prepared by Maggie Brilz, Customer Service
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20
REQUEST NO. 42: By year, please provide the number and percentage of
installed meters or metering equipment that failed for the years 2004-2007. Is the
failure rate for AMI meters significantly different than that of older technology meters?
RESPONSE TO REQUEST NO. 42: The percentage and number of installed
meters or metering equipment that failed for the years 2004-2007 are:
Year Total Percentage
2004 2,566 .57%
2005 2,982 .65%
2006 2,734 .57%
2007 2,402 .50%
The failure rate for AMI meters is anticipated to be similar to the historic failure rates on
regular kWh meters. However, meter failures wil typically be discovered faster by AMI
meters due to frequently scheduled meter reads. By reducing the detection and repair
time, the biling impact of meter failures wil be minimized.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 21
REQUEST NO. 43: Please explain how meter reading data is entered into the
billng system currently. How wil this change with AMI?
RESPONSE TO REQUEST NO. 43: In the Company's manual monthly meter
reading process, billng reads are collected in a handheld electronic device and loaded
into the Multi-Vender Reading System ("MVRS"). The MVRS performs validation on the
readings and then a batch file loads the readings into the billng system.
The AMI system meter reads wil be collected by the TWACS net server system
on a preset schedule 4 times a day. The reads wil then be transferred to the Meter
Data Management System ("MDMS") daily. Once the MDMS performs data validation,
the TOU billng component calculation wil upload to the biling system via a system
interface.
This response to this Request was prepared by Mark Heintzelman, Delivery
Service Leader, Idaho Power Company, in consultation with Donovan E. Walker,
Corporate Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 22
REQUEST NO. 44: Please explain how low income and other vulnerable
customers wil benefit from AMI implementation?
RESPONSE TO REQUEST NO. 44: Low income and other vulnerable
customers wil benefit from AMI implementation in the same manner as other residential
customers. All customers wil see lower overall costs, outage management benefits,
more energy consumption information, and, eventually, increased pricing options with
the extension of existing programs and the introduction of new ones.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 23
REQUEST NO. 45: Is Idaho Power planning on making its current AMI pilot
programs, i.e. Time-of-Day Program and Energy Watch, available to all customers
during or after the meter conversion? If not, why?
RESPONSE TO REQUEST NO. 45: As AMI is rolled out across our service
territory, the Company plans on implementing more dynamic pricing programs for all
customers, including time of use and critical peak pricing programs like the Time-of-Day
and Energy Watch programs currently in place.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 24
REQUEST NO. 46: Is the Company planning on introducing any new pilot
programs with the deployment of AMI? If so, please provide a detailed description of
any new programs.
RESPONSE TO REQUEST NO. 46: The Company has done substantial
research into various dynamic pricing programs that may be offered to customers with
the completion of the AMI deployment, including time of use, critical peak, variable
peak, and real time pricing programs as well as demand response programs like
interruptible rates. However, as Mr. Gale stated in his testimony, additional investments
wil be required before wide scale applications of such pricing programs becomes a
reality. Because of the need for these additional back offce systems, exactly what
programs wil be offered has not yet been determined. The Company continually
explores and monitors pricing program results from utilities across the nation.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 25
REQUEST NO. 47: Currently, what is the time delay for displaying customer
usage and biling information on the Company's website for current AMI customers?
What is the Company's goal for providing customer usage and billng information after
AMI meters are fully installed?
RESPONSE TO REQUEST NO. 47: Current AMI customers can view their
hourly data online once they are registered as an Account Manager. Once logged on,
the most recent hourly data available to customers is 14 days prior to the current date.
As AMI is fully deployed, the Company's goal is to provide this data to customers on
time variant rates, if desired, by the third business day.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 26
REQUEST NO. 48: What plans does the Company have for implementing Time
of Use rates after AMI has been fully deployed?
RESPONSE TO REQUEST NO. 48: Please see Idaho Power's response to
Request No. 46 of Staffs Second Production Request.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27
REQUEST NO. 49: Insofar as it has not been already provided in a response to
a prior request, please provide an annual revenue requirement impact of the AMI
implementation for each year of the project life. Please include the impact assuming
existing meters are depreciated over 3 years, 5 years, 10 years and without accelerated
depreciation.
RESPONSE TO REQUEST NO. 49: The response for this Request calls for
substantial analysis and calculation. It requires additional time and review and wil be
made available as soon as possible.
This response to this Request was prepared by Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28
REQUEST NO. 50: Insofar as it has not been already provided in a response to
a prior request, please provide the annual savings in meter reading expenses over the
project life. Please include the assumptions used to determine the growth in current
meter reading expenses.
RESPONSE TO REQUEST NO. 50: When analyzing the benefits AMI wil
provide with regard to meter reading, the Company looked at all the functions of a meter
reader's job. These include collections, connect/disconnects, random and periodic
testing of meters, verifications, unplanned maintenance, new installations, and actual
meter reading. Based on these duties, it was determined AMI would reduce O&M
expenses associated with meter reading 100 percent and with disconnects and
connects 90 percent. Therefore, the following breakout of annual savings is based on a
reduction of meter readings, disconnects, and connects duties:
2009 $ 262,827
2010 $2,915,385
2011 $5,164,680
Please refer to the confidential financial analysis provided on disk by Idaho Power in
response to Staffs First Production Request No. 4 for assumptions used to determine
growth in current meter reading expenses under the tab titled "Growth."
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29
REQUEST NO. 51: Please list the benefis the McCall and Emmett customers
are currently receiving from AMI.
a) Wil this be the same benefits other customers wil receive in the
Company's service territory after full deployment of AMI? Please
explain.
RESPONSE TO REQUEST NO. 51: The McCall and Emmett area customers
who currently have AMI in place benefit from more energy consumption information and
the Emmett area customers have dynamic pricing program options. When AMI is fully
deployed, all customers wil see lower overall costs, outage management benefits, more
energy consumption information, and, eventually, increased pricing options with the
extension of existing programs and the introduction of new ones. For a more detailed
description of the benefits AMI will provide, see page 8 of the Advanced Metering
Infrastructure (AMI) Status Report dated May 1, 2007, filed with the Commission.
This response to this Request was prepared by Courtney Waites, Pricing
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Corporate
Counsel, Idaho Power Company.
DATED at Boise, Idaho, this 21st day of November 2008.
~f~
DONOVAN E. WALKER
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 30
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 21st day of November 2008, I served a true and
correct copy of IDAHO POWER COMPANY'S RESPONSE TO THE SECOND
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER
COMPANY upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Neil Price, Esq.
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington
P.O. Box 83720
Boise, Idaho 83720-0074
-XHand Delivered
U.S. Mail
_ Overnight Mail
FAX
-X Email neil.pricecæpuc.idaho.gov
Kroger Co.
Michael L. Kurt
Kurt J. Boehm
BOEHM, KURTZ & LOWRY
36 East Seventh Street, Suite 1510
Cincinnati, Ohio 45202
Hand Delivered
-l U.S. Mail
_ Overnight Mail
FAX
-l Email mkurtcæBKLlawfirm.com
kboehmcæBKLlawfirm .com
Kevin Higgins
Energy Strategies, LLC
Parkside Towers
215 South State Street, Suite 200
Salt Lake City, Utah 84111
Hand Delivered
-lU.S. Mail
_ Overnight Mail
FAX
-X Email khigginscæenergystrat.com
cGfU£
Donovan E. Walker
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 31