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HomeMy WebLinkAbout20110811IPC to Staff 6-30.pdfJASON B. WILLIAMS Corporate Counsel jwilliamscæidahopower.com 'lllWa3POR~ An IDACORP Company August 10, 2011 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street Boise, Idaho 83720 Re: Case No. IPC-E-11-08 General Rate Case Dear Ms. Jewell: Enclosed for filng are an original and one (1) copy of Idaho Power Company's Response to the Second Production Request of the Commission Staff to Idaho Power Company in the above matter. Also enclosed are three (3) copies of a non-confidential disk and three (3) copies of a confidential disk containing information being produced in response to Staffs Second Production Request. Please handle the enclosed confidential information in accordance with the Protective Agreement executed in this matter. JBW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 R en. b',,....i;.i.. LISA D. NORDSTROM (ISB No. 5733) DONOVAN E. WALKER (ISB No. 5921) JASON B. WILLIAMS Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 Inordstromcæidahopower.com dwalker(Cidahopower.com jwilliams(Cidahopower.com ')~l!L~.~ i ~: 15 Attorneys for Idaho Power Company 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 IN IDAHO. ) ) ) ) ) CASE NO. IPC-E-11-08 IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company ("Idaho Power" or "Company"), and in response to the Second Production Request of the Commission Staff to Idaho Power Company dated July 20, 2011, 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.6: Please provide executable electronic copies of Idaho's monthly energy usage by class and rate schedule from 2000 through 2010. As part of your response, please include median and average energy usage by class and rate schedule over the same time frame. RESPONSE TO REQUEST NO.6: The attached Excel file contains 11 tabs for the years 2000 through 2010. For each year, the Idaho monthly energy usage, the annual total, the median and average energy usage are provided for each rate schedule. The response to this Request was prepared under the direction of Mike Youngblood, Manager, Rate Design, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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.7: Please provide executable electronic copies of Idaho's monthly customer count by class and rate schedule from 2000 through 2010. RESPONSE TO REQUEST NO.7: The attached Excel file contains 11 tabs for the years 2000 through 2010. For each year, the Idaho monthly customer count is provided for each rate schedule. Please note the irrigation customer counts include inactive irrigation accounts as Idaho Power does not maintain a count of the inactive irrigation accounts by jurisdiction. The response to this Request was prepared at the direction of Mike Youngblood, Manager, Rate Design, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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.8: Please provide all executable electronic models used to arrive at the "2011 Unadjusted Test Yeat' revenue. As part of the response, please include a detailed explanation of all the modeling variables, and provide the descriptive statistics used to evaluate the predictive accuracy of each modeL. If third party economic or demographic projections were utilzed, please provide all the data used for the forecasts and the names of the primary data vendors. RESPONSE TO REQUEST NO.8: Please see the attached Excel file containing Exhibit Nos. 28 and 29 in electronic format with supporting workpapers included and formulas intact. This fie is identical to that provided in the Company's response to the Idaho Irrigation Pumpers Association Inc.'s Data Request No. 26, with the exception of an additional worksheet that has been provided at the request of the Idaho Public Utilties Commission Staff. As demonstrated in the attached Excel file, the "2011 Unadjusted Test Yeat' revenue amount of $850,501,733 was derived by applying the most current effective base rates to forecasted test year biling components. As described on page 2 of the Direct Testimony of Company witness Matthew T. Larkin, lines 22 through 25, "These billng components are derived by applying historical relationships to the Company's customer and kilowatt-hour ("kWh") sales forecast." Further, on page 3 of Mr. Larkin's testimony, lines 13 through 15, he states, "The 2011 test year customer and kWh sales forecast is based upon the Sales and Load Forecast prepared for the 2011 Integrated Resource Plan . . .." The attached Excel file also contains the entire revenue forecasting process described in Mr. Larkin's testimony, including the input of the sales and load forecast, the determination of test year biling components, and the application of rates to derive final test year revenues. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 Modeling variables, descriptive statistics, and third-party data utilzed in the derivation of the sales and load forecast are addressed in the Company's response to Staffs Production Request Nos. 9.d and 9.e. The response to this Request was prepared by Matthew T. Larkin, Regulatory Analyst, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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.9: On page 3 of Larkin's testimony, he describes how the number of customers and energy were developed for the 2011 test year. He states, "the 2011 test year customer and kWh sales forecast is based upon the Sales and Load Forecast prepared for the 2011 Integrated Resource Plan ("IRP"), to be filed with the commission in June 2011." Please provide: a. An explanation of why the Company chose to use the 2011 IRP to develop the 2011 test year energy billng determinants. b. An explanation of why the Company used more than weather related variables to develop the 2011 test year energy billng determinants. c. All executable electronic models used to adjust Idaho's actual 2010 number of customers and kWh sales. d. An explanation of all the modeling variables and descriptive statistics used to evaluate the predictive accuracy of each modeL. e. All third part economic or demographic data used for the forecasts and the names of the primary data vendors. RESPONSE TO REQUEST NO.9: a. The sales and load forecast that was prepared for the 2011 Integrated Resource Plan ("IRP") was the most recent sales forecast to be completed prior to the filing of Case No. IPC-E-11-08 ("2011 Rate Case"). Because preparation for the 2011 Rate Case coincided with preparation of the 2011 IRP, and because the methodology for preparing sales and load forecasts for the respective filings does not differ, the Company was able to utilize the same sales and load forecast for both purposes. The 2011 IRP sales forecast represents the Company's best and most current estimate of future year sales and customer counts at the time the 2011 Rate Case was prepared. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6 b. The sales and load forecast in all future years (including 2011) is dependent upon both weather and non-weather variables. The most common non- weather variables are economic time series that are used as drivers to determine future year sales and customer counts. As shown in the descriptive statistics provided in the attachments to the Company's response to Staffs Production Request No. 9.d, there are a number of non-weather variables that are statistically significant in predicting future sales and customer values. c. The information requested entails large amounts of data found in disparate and numerous executable softare applications utilzed to develop the forecast. Idaho Power's primary and third-part data sources are compiled into multiple Oracle databases, which occupy approximately 800 megabytes of disk space. Regression modeling and development of the final forecast occurs primarily in MetrixND, TSP, and Oracle Express. The executable files associated with data and modeling require specific database engine and application softare, without which the files would be unusable. Consequently, Idaho Power wil make these models available for review at its corporate headquarters. Please contact Doug Jones at (208) 388-2615 or Camila Victoria at (208) 388-5821 to arrange a time to review the requested materiaL. d. The attached PDF file, "Model Description," provides a narrative description of the modeling variables utilzed in each regression model in the sales and customer forecast. The confidential attachments provided on the confidential CD contain the modeling variables, associated coeffcients, and statistical results of the regression analyses described in detail in the "Model Description" document. Because these attachments are confidential, they wil be provided to those parties that have executed the Protective Agreement. A key describing the explanatory variable IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7 abbreviations in the confidential attachments is also attached. The tabs in the confidential attachments contain the following information: Tab Name Description Data Historical/forecast data by variable Corr Correlation between variables Coef Coefficients and associated descriptive statistics for each variable MStat Descriptive statistics for entire model Elas Elasticity statistics of each explanatory variable e. Economic variables at the national, state, metropolitan statistical area ("MSA"), and county level were downloaded from Moody's Analytics July 2010 economic forecast. County economic variables were used to develop Idaho Power service area economic drivers, which are provided in the confidential Excel file, SA Macro Variables in Excel - Moody's July 2010 Forecast.x/s. This data is considered confidential and wil be provided to those parties that have executed the Protective Agreement in this docket. As described in the Company's response to Staff's Production Request No. 9.c, all third-party economic and demographic data used in the forecasting process is voluminous and cumbersome without the proper database engine and application softare. For the complete working model and all data inputs, please make arrangements to view to this material at the Company's corporate headquarters. Please contact Doug Jones at (208) 388-2615 or Camila Victoria at (208) 388-5821 to arrange a time to review the requested materiaL. The response to this Request was prepared at the direction of Matthew T. Larkin, Regulatory Analyst, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 10: On pages 4-5 of Exhibit No. 27, the Company describes how it adjusts its system forecast based on jurisdictional split factors that were calculated using only the largest schedules in each class; please provide a detailed explanation of why it chose not to calculate the split factors based on all the schedules within each class. In addition, please provide: a. All the executable electronic models used to develop the jurisdictional split factors. b. Exhibit No. 45 with the jurisdictional split factors calculated using all the rate schedules within each class. c. Exhibit No. 38 with the jurisdictional split factors calculated using all the rate schedules within each class. RESPONSE TO REQUEST NO. 10: The system customer forecast was separated between jurisdictions in the manner described on pages 4 through 5 of Exhibit No. 27 to best reflect the Company's expected jurisdictional customer counts for the forecast period. With respect to several of the Company's smaller rate schedules, forecasting based on actual historical data and known customer behavior is more accurate than allocating a portion of the system customer forecast. As stated on page 4 of Exhibit No. 27, "the forecasts of all (residential) schedules except Schedule 1 were set to the most recent month's actual customer count, December 2010." In addition to Schedule 1, residential rates include Schedules 3, 4, and 5, all in the Company's Idaho jurisdiction. Schedule 3 is a grandfathered rate under which new service is no longer allowed, and Schedules 4 and 5 experienced no growth throughout the 2010 historical year. Because these classes demonstrated no growth IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 9 and are limited to the Idaho jurisdiction, including them in the jurisdictional allocation of residential customer growth would be counter to presently known information regarding the jurisdictional breakdown of the residential rate class. In a similar fashion, commercial rate schedules 9-Transmission ("9T"), 40, 41, and 42 were set to the most current month of actual data, in this case December 2010. Schedule 9T consists of three total customers, two in Idaho and one in Oregon. Historically, these numbers have remained stagnant, and applying any growth to the 9T rate schedule would not align with historical customer behavior or the Company's test period expectations. Schedules 40, 41, and 42 displayed little to no growth in the Company's Oregon jurisdiction, and only moderate growth in its Idaho jurisdiction. It is the Company's view that the most current month of actual data is the most appropriate estimate of future customer counts for these rate schedules. The industrial forecast consists of Schedule 19 (Primary, Secondary, and Transmission Service) customers.Schedules 19-5econdary ("19S") and 19- Transmission ("19T") were set to the most current month's actual customer count, in this case December 2010. Currently, there is only one Schedule 19S customer and only four Schedule 19T customers, and the Company has no basis for forecasting another Schedule 19S or 19T customer to come on-line in the foreseeable future. Setting the customer count to one for Schedule 19S in the Idaho jurisdiction prior to allocating the remaining customers allows for the count to remain at one customer. If jurisdictional splits were estimated by dividing the one Schedule 19S customer by the total industrial customer count, the result would be a fraction that would be applied to the class total, which would require rounding. When considering a class of one customer, rounding to IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 10 the nearest whole number can improperly skew test year values, especially when historical data does not justify forecasted growth. The same logic also applies to the Schedule 19T customer counts. Since March 2009, these counts have not changed and are not expected to change in the foreseeable future. Based on the historical characteristics of certain rate classes, the Company believes the adjustments described on pages 4 and 5 of Exhibit No. 27 improve the accuracy of the jurisdictional allocation of the system customer forecast. By directly assigning smaller rate schedules to jurisdictions when possible, the Company is able to take into account all currently known information and derive a forecast that best reflects expected customer counts on a jurisdictional basis for the test period. a. The customer forecast by class is developed using proprietary softare called EXPRESS. The allocation of the class level customer forecasts to rate schedule and jurisdiction is also developed within the EXPRESS softare, and the associated jurisdictional split factors are contained within the EXPRESS database. Consequently, the Company is unable to provide an executable electronic model used to develop the jurisdictional split factors. However, the EXPRESS database and working electronic model are readily available for on-site review at the Company's corporate headquarters. Please contact Doug Jones at (208) 388-2615 or Camila Victoria at (208) 388-5821 to arrange a time to review the requested materiaL. b. The Company has not performed this analysis and to do so would be burdensome. As stated in the Company's response to Staffs Production Request No. 10.a, the customer forecast is developed utilzing the EXPRESS softare package. This softare is not currently calibrated to perform the requested analysis, and to do so would require the development of a new softare modeL. Additionally, the customer IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 11 forecast serves as one of the initial inputs in the Company's overall general rate case preparation. Updating Exhibit Nos. 38 and 45 would require the Company to recreate a number of models, including the test year retail revenue forecast, the jurisdictional separation study, the class cost-of-service study, and several rate design exhibits. c. Please see the Company's response to Staffs Production Request 10.b. The response to this Request was prepared by Matthew T. Larkin, Regulatory Analyst, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 11: Please explain how the Company adjusted the test period loads, incentive payments, and administrative costs to account for changes to the Irrigation Peak Rewards Program (Order No. 32200). RESPONSE TO REQUEST NO. 11: Test period loads were not adjusted to account for changes to the Irrigation Peak Rewards Program resulting from Order No. 32200. As described on page 23 of the Direct Testimony of Company witness Matthew T. Larkin, lines 13 through 16, ". . . the Company's proposed method derives system coincident demand factors as if no (demand response) programs had been in effect during the historical data period." Under the Company's proposed methodology, load reductions from demand response programs are removed from the derivation of test year demand values, thus eliminating the need to adjust test period loads to account for program changes. For a detailed description of the derivation of test year demand values, please see the document titled Peak Responsibilty Methods for the 2011 General Rate Case, provided on page 50 of Mr. Larkin's workpapers. The incentive payments for the Irrigation Peak Rewards Program included in the test period are based on the incentive payments made in 2010. Because of the uncertainty in participation as a result of Order No. 32200, the Company did not forecast a new 2011 incentive leveL. Seventy-five percent of the Idaho Irrigation Peak Rewards Program incentive payments from 2010 were included in the test period. This is the fixed portion of the incentives as a result of Order No. 32200. Administrative costs for the Irrigation Peak Rewards Program are collected through the Energy Efficiency Rider and are therefore excluded from the test period. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 13 The response to this Request was prepared by Matthew T. Larkin, Regulatory Analyst, Idaho Power Company, and Pete Pengily, Customer Research & Analysis Leader, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 12: Please provide by month from August 2008 through December 2010, the total number of incoming calls handled by the Customer Service Call Center (CSC). Please identify separately the calls routed through the Automated Call Distribution (ACD), as well as the Interactive Voice Response Unit (IVRU). RESPONSE TO REQUEST NO. 12: Please see the tables below. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 13: Please provide by month the actual service levels for the CSC attained from August 2008 through December 2010. Please provide ACD and IVRU separately. RESPONSE TO REQUEST NO. 13: Please see the tables below. Sene Lenl (ACD .D1 -) 87.66X 7729X 53.4~~. ' 83.23X 69.54X 64.20x.. .. 81.53X 75.42X 63.91x 82.22X 83.76X 76.69X 81.51x 79.23X 68.87x 83.55X 79.19X 81.61X 74.57x ,6.0,86~ . .8.6:0.9~ 62.t~:/J 57.90x j. 49,05X .. 29.13XL.22,92,x 16.95x 77,09X , 72.14X t~~~34.46x 4.58x 2.87x 6.74x . ..1()0~00X : 100.00x : 100.00x 100 100.00x , . lQQ,()()~ +100.00X:JfJO.00X . ......1Q(),Q()~ lìl.0000....00.00...~. J.L 100.0ox,lQoi¡:i(l~(l(lXr 100.00X , 100.00X j 100.00X ...IQ();()O~.., ~. 100.00x .L.l00J)0~.i(l(l:QQ:/I!(l~(l.(lxTj(l(l.(l(lXT1(i(i:O(iX The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER CO'MPANY - 16 REQUEST NO. 14: Please provide by month from July 2007 through December 2010 the total number of abandoned calls for the CSC. RESPONSE TO REQUEST NO. 14: Please see the table below. I ,".n.I 2007 1305 1850 2516 1363 1835 2344 20: '2 1930 I 2008 1349 1261 1466 1598 211 1656 21(1977 2009 1599 1810 2101 1576 I 1898 1970 36' '9 1431 I 0 2010 5188 2398 3330 3600 5611 9744 14517 14660 I The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 15: Please provide by month from July 2007 through December 2010, the percentage of calls abandoned by the CSC. RESPONSE TO REQUEST NO. 15: Please see the table below. 2007 2008 2009 2010 Percent er A1lnÑ Cal The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 16: Please provide by month from August 2008 through December 2010 the average speed-of-answer, in seconds, by customer service representatives in the CSC. RESPONSE TO REQUEST NO. 16: Please see the table below. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 17: Please provide by month from August 2008 through December 2010 the total number of emails received by the Company's Webmail group in the CSC. Also provide the average response time in those months. RESPONSE TO REQUEST NO. 17: The Customer Service Center receives e- mails from customers in a variety of ways (please see table below). E-mails from customers who click the "contact us" button on Idaho Powets website are included in the "Iwebstet' column. E-mails from customers who fil out an order form on Idaho Powets website are included in the "Web Orders" column. Occasionally, an Idaho Power representative needs to contact a customer directly via e-mail to obtain additional or clarifying information. Responses to these e-mails are included in the "Direct Email" column. Aug-08 214 435 n/a Sep-08 245 357 n/a Oct-08 273 315 n/a Nov-08 188 315 n/a Dec-08 262 273 n/a 2008 YTD 1,182 1,695 Jan-09 321 431 n/a Feb-09 401 352 n/a Mar-09 363 520 n/a Apr-09 344 483 n/a May-09 275 553 n/a Jun-09 293 659 n/a Jul-09 295 638 n/a Aug-09 270 637 47 Sep-09 266 551 n/a Oct-09 331 662 n/a Nov-09 279 1193 n/a Dec-09 301 756 56 IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 20 2009 YTD 3,739 7,435 103 Jan-10 395 876 n/a Feb-10 332 886 94 Mar-10 355 1142 152 Apr-10 315 875 136 May-10 336 1017 119 Jun-10 264 1056 171 Jul-10 269 1091 135 Aug-10 327 1230 220 Sep-10 365 965 240 Oct-10 328 896 237 Nov-10 284 1136 153 Dec-10 296 930 187 2010 YTD 3,866 12,100 1,844 Idaho Power does not currently have the abilty to track the response time to customer-generated e-mails. However, based on the expertise of the Webmail group, it is estimated that at least 93 percent of the e-mails received from customers are responded to with 24 business hours. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 18: Please provide by month from July 2007 through December 2010 the total number of Outage Management Department calls handled by the ACD. Please provide separately the total number of calls handled by the IVRU. RESPONSE TO REQUEST NO. 18: Please see the tables below. 2007 2008 2009 2010 2007 2008 2009 .~. 2010 The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 19: Please provide by month from July 2007 through December 2010 the total number of calls abandoned by the Outage Management Department. RESPONSE TO REQUEST NO. 19: Please see the table below. 2007 2008 2009 2010 The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 20: For those same months referenced in Production Request No. 20, please provide the percent of calls that are abandoned. RESPONSE TO REQUEST NO. 20: Please see the table below. 2007 2008 1.02:- 2009 4.44:- 2010 4.49:- The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 21: In Case No. IPC-E-08-10, Idaho Power responded to Staff Production Request No. 36 that it had selected Western Union's Speed pay, Inc. to begin processing electronic payments as of January of 2009. According to Idaho Power, at that time, the new fee per transaction for residential customers was going to be $2.50 for check-by-phone, credit cards or debit cards for up to $500. Has Idaho Power changed any of its transaction fees or payment processing options or vendors since that time? If so, please provide those details. RESPONSE TO REQUEST NO. 21: At the time Idaho Power responded to Staff's Production Request No. 36 in Case No. IPC-E-08-10, Idaho Power had selected Western Union Speed pay, Inc., to provide electronic payment processing and anticipated transaction processing to begin in January 2009. However, Idaho Power and Western Union Speedpay, Inc., were not able to reach agreement on certain terms. As a result, Idaho Power did not proceed with the implementation of electronic transaction processing with Western Union Speed pay, Inc. Idaho Power, however, has continued to provide electronic check, credit card, and debit card payment options through NCO Financial for a fee of $2.85 per transaction. In 2010, Idaho Power negotiated with NCO Financial to increase the maximum transaction amount from $300 per transaction to $5,000 per transaction for credit and debit cards and $250,000 per electronic check. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 22: How many customers in 2008, 2009, and 2010 used Idaho Powets on-demand electronic payment options? Please provide the information by type of payment option, i.e. credit card, debit card, check by phone. This information can be provided in yearly totals. RESPONSE TO REQUEST NO. 22: Please see the table below. Debit Card Credit Card Check by Phone 2008 31,989 157,607 54,418 2009 31,776 198,929 58,201 2010 36,271 193,573 48,118 The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead 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. 23: Please provide the Company's written record of complaints and requests from the years 2008, 2009, and 2010 kept pursuant to Rule 403 of the Commission's Utilty Customer Relations Rules (UCRR) IDAPA 31.21.01.403. RESPONSE TO REQUEST NO. 23: The written record of complaints and requests is voluminous and contains confidential customer information. It is available upon request at Idaho Power's corporate headquarters to those parties that have signed the Protective Agreement in this case. Please contact Doug Jones at (208) 388-2615 or Camila Victoria at (208) 388-5821 to arrange a time to review the requested materiaL. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 27 The following questions pertain to the testimony of Company Witness Warren Kline: REQUEST NO. 24: On page 4 Witness Kline states that investments in Advanced Metering Infrastructure (AMI) and Mobile Workforce Management (MWM) have allowed IPC to alter procedures and focus on interactions with customers. Please explain in detail what procedures have been altered and the resulting changes which allowed more focus on interactions with customers. RESPONSE TO REQUEST NO. 24: The implementation of AMI has provided several process advantages beyond the obvious effciency and cost reduction enhancements. Please see the list below for further explanation. 1. The AMI system provides very accurate meter reading, which has virtually eliminated biling errors and bil corrections. This frees up customer service field personnel to address other customer needs, such as managing their energy consumption and assisting customers with past due balances. 2. The new AMI meters have digital displays making them easier for customers to read. In addition, hourly energy usage information is available to customers on-line through Account Manager on Idaho Power's website. These features allow the Company to more effectively address customer biling questions, help customers determine how energy is being used, and help customers manage their energy consumption. 3. The AMI system is used to complete the majority of the customer movement orders. Customer movement peaks on the 1 st and 15th of the month. Historically, this was an enormous impact on workloads when the process required a IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 28 site visit to obtain a meter reading. With the AMI system, these meter reads are retrieved through automation, which allows the Company to respond to customer on-site needs in a timelier manner. 4. The Mobile Workforce Management system provides skil-based assignment of orders to qualified workers by area. This enables Idaho Power to more efficiently dispatch its field personnel and improves its abilty to resolve customers' on- site needs during the initial visit. 5. The Mobile Workforce Management system balances workload between resources, allowing the Company to continually and consistently adjust assignments to more effectively complete its field service work. 6. The Mobile Workorce Management system provides tracking of field service work. This tracking enables Idaho Power to continually review and adjust work assignments on an ongoing basis to provide more efficient and effective completion of field orders. 7. The Mobile Workforce Management system automatically routes the work for each of the Company's field personneL. The electronic map that is produced identifies job locations and the most efficient route, enabling quicker response to customers' needs. 8. The Mobile Workforce Management system is integrated with the Customer Information System ("CIS") and provides a complete transfer of order information to the mobile terminal, enabling field resources to more effectively respond to customer questions while on site. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 29 9. In most instances, field work completed via the Mobile Workforce Management system is automatically updated in CiS in near real-time. This automation has significantly reduced order completion time, lost orders, and data entry errors. In addition, it improves the quality of information communicated with customers. The response to this Request was prepared by Duane Van Patten, Manager Regional Operations Support, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 30 REQUEST NO. 25: On page 11 Witness Kline states that once the Outage Management System (OMS) is fully integrated with AMI, valuable data wil be available that wil result in more efficient and timely restoration of power to customers. Please explain in detail what "valuable data" wil be available and how this data wil be used by the Company and/or customers. RESPONSE TO REQUEST NO. 25:When a power outage is detected or reported, Idaho Power personnel can confirm the outage by attempting to contact the affected service points through the AMI system. The AMI system communicates through the electrical distribution network. The result of the communication request provides individual service point status. This information is beneficial in several scenarios, including the following: 1 . When a single customer reports an outage, frequently the problem is with his/her own equipment, not Idaho Power service. When this can be confirmed through AMI, the Company can avoid dispatching a resource for a customer equipment problem and instead assist the customer in resolving his/her issue in a timelier manner. 2. When an outage is reported, Idaho Power personnel wil be able to initiate communications with selected meters and narrow the outage to specific customers. This wil confirm the scope of the outage and indicate the location for dispatching field personnel to begin repairs. The additional information and the speed that it can be obtained wil improve outage response. 3. Occasionally, when there is an outage involving a large number of customers or a large area, there are embedded outages. Embedded outages are smaller groups of customers or sections of line within the large outage area that have IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 31 additional issues. When the cause of the major outage is repaired and power is restored, the imbedded outage stil exists. Historically, these imbedded outages were not immediately known to Idaho Power and crews were often sent to other areas needing their help or they were sent home. Eventually the imbedded outage was reported and an additional response was initiated. With the integration of OMS and AMI, Idaho Power personnel wil be capable of confirming power restoration by contacting the meters that were involved in the outage and confirming power is restored. If there is an imbedded outage, this process wil bring it to the attention of the personnel confirming restoration and they can take appropriate action to resolve the issue before leaving the area. 4. The AMI system can also provide instantaneous voltage readings through the interface between OMS and AMI. Often to restore power in a timely manner the electrical system is reconfigured through alternate paths, or temporary repairs are made. When this happens, Idaho Power must often send personnel to multiple, sometimes remote, locations to check the condition of the system by measuring voltage. When OMS and AMI are integrated, personnel at the dispatch centers can select locations on OMS and obtain a voltage reading through the AMI interface, saving resources and time. The response to this Request was prepared by Duane Van Patten, Manager Regional Operations Support, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 32 REQUEST NO. 26: On page 12 Witness Kline says the Customer Information System (CIS) project upgrades and enhances existing functions and adds key capabilties that wil facilitate more flexible pricing options. Please describe in detail the pricing options referenced. RESPONSE TO REQUEST NO. 26: As stated in the Direct Testimony of Mr. Youngblood on pages 9-11, the Company has future plans to expand the time variant pricing ("TVP") alternatives that are now only available to some customers. Since the Company first offered a TVP option to its customers in the EmmeWLetha area on a pilot basis, it has anticipated that the knowledge gained from the initial pilot may one day be expanded and offered to more customers system-wide. However, there are two major projects which must be completed before TVP options can be offered across the Company's system. First, the Company's AMI smart meters must be installed. Idaho Powets three-year AMI implementation project is on track to finish the meter installations by the end of 2011. Second, all of the back offce infrastructure must be updated and implemented, including a new CiS and an enterprise data warehouse. It is anticipated that this work wil be completed by early 2013. As stated in Mr. Youngblood's testimony, Idaho Power anticipates offering the TVP options currently available to EmmeWLetha customers to a greater number of participants as an expanded pilot in 2012. The response to this Request was prepared by Mike Youngblood, Manager Rate Design, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 33 REQUEST NO. 27: On page 20 Witness Kline states that IPC intends to offer more automated customer service options in the future? Please provide examples of those services. RESPONSE TO REQUEST NO. 27: As stated in Mr. Kline's testimony, the Company is implementing a new Customer Service Call Management system. This system provides several new features to customers, including a "virtual hold" option through the Interactive Voice Response unit and a "call me" option through Idaho Powets website. Additionally, in response to customer feedback, the Company is developing a no- fee bil payment option to be available to customers who utilze its Account Manager functionality on Idaho Powets website. This option is scheduled to be available in 2011. This payment option wil allow customers to schedule no-fee electronic payments from their checking or savings account, which will provide more flexibility and convenience to customers. In addition, one of the projects that the Company is working on is an Energy Use Advising TooL. This tool will improve the detailed AMI usage analysis capabilty of Idaho Power's current Energy Tools, as well as add new features for customers. Customers wil be able to see their "bil to date," providing useful information on the costs and pattern of energy consumption since their last bil was prepared. The response to this Request was prepared by Warren Kline, Vice President Customer Operations, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 34 REQUEST NO. 28: On page 25 Witness Kline discusses the 3rd party Language Line utilized by IPCO. In 2008, 2009, and 2010 how many times was this service utilized by customers? Please provide the totals by language. What was the cost of this service per call in each of those years? RESPONSE TO REQUEST NO. 28: Please see the table below. 2008 2009 2010 Albanian 0 3 0 Arabic 3 31 63 Bantu 0 0 0 Bosnian 5 21 16 BUIQarian 0 1 0 Burmese 3 4 2 Cambodian 0 0 1 Cantonese 1 1 6 Chinese 1 3 2 Croatian 1 0 1 Czech 1 0 1 Dari 0 1 4 Dinka 0 1 0 Dutch 0 0 1 Farsi 2 7 17 French 3 5 2 Greek 0 1 0 Italian 0 0 1 Japanese 1 0 3 Karen 1 3 0 Kirundi 2 10 6 Korean 2 5 3 Lao 1 2 0 Mandarin 2 5 12 Navajo 0 1 0 Nepalese 0 10 17 Dromo 1 0 0 Pashto 0 0 1 Persian 1 2 1 Portuguese 0 3 4 Punjabi 2 0 0 Romanian 1 0 1 Russian 20 50 37 Somali 18 8 10 Spanish 4840 3223 3463 Swahili 6 28 12 Tagalog 0 0 1 IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 35 Thai 0 1 1 Tiariana 0 0 2 Tonaan 0 1 1 Turkish 2 3 0 Ukrainian 1 1 2 Urdu 0 0 1 Uzbek 0 1 1 Vietnamese 4 7 16 TOTAL 4925 3443 3712 Average Cost per Call $7.23 $6.62 $7.64 The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 36 REQUEST NO. 29: On page 28 Witness Kline refers to "virtual hold" and "call me". Please describe in more detail these two features. RESPONSE TO REQUEST NO. 29: These above new features are part of the new Customer Service Call Management System that is scheduled for implementation at the end of August 2011. Virtual Hold. This queue management solution allows customers to receive a callback rather than wait on hold for the next available representative. Customers who select this option will have their requests placed in the callback queue in the order requests are received. This option provides customers the convenience of not remaining on the line while waiting for a representative. Call Me. In addition to transacting and sending correspondence e-mails, Web Account Managers can request a representative call them by simply clicking on an icon and providing their phone number. A customer service representative wil call customers within 24 business hours of the "call me" request. The response to this Request was prepared by Maggie Britz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 37 REQUEST NO. 30: On page 28 Witness Kline says that a no fee online bank debiting payment option wil be available in August of 2011. Please describe the steps a customer would take to use this option. RESPONSE TO REQUEST NO. 30: Idaho Powets new no-fee on-line bank account payment method wil be available to customers who log on to Idaho Power's website as an Account Manager. Once logged in, customers select the "Pay My Bil" button. Depending on how many accounts the customer has, he/she wil either see a single account or a listing of all accounts. The customer can then choose which accounts to pay during this transaction. The customer enters how much wil be paid for each account, selects the payment date, and then enters the applicable banking information. Customers have the choice of having this banking information saved or not, although if they choose to save the information, the payments are not recurring; saving banking information simply allows for ease of use the next time this payment option is used. Once payment is made, the customer wil receive a payment confirmation e-mail within minutes and an automated customer contact with payment confirmation information wil be placed on the customer's account. In most cases, the payment posts to his/her Idaho Power account within one to three days. This payment option wil also provide special consideration for customers with collection activity. Customers who log onto Account Manager wil continue to be alerted when the account is past due or has a pending service disconnection. Customers who have a pending service disconnection scheduled for the current day wil be informed of the necessity to contact Idaho Powets Customer Service Center when a payment is made to confirm payment and to have the disconnection cancelled. Customers who IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 38 have a service disconnection scheduled for a future date wil receive e-mail confirmation of their payment and also a separate e-mail verifying the disconnection of service has been cancelled. This payment option is a great addition to the variety of convenient bil pay options Idaho Power offers customers. The response to this Request was prepared by Maggie Brilz, Customer Service Manager, Idaho Power Company, in consultation with Lisa D. Nordstrom, Lead Counsel, Idaho Power Company. DATED at Boise, Idaho, this 10th day of August 2011. \. "' AS N B. WILLIAMS orney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 39 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 10th day of August 2011 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 Donald L. Howell, II Deputy Attorney General Idaho Public Utilties Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email Don.Howell(Cpuc.idaho.gov Karl T. Klein Deputy Attorney General Idaho Public Utilties Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email Karl.Klein(Cpuc.idaho.gov Industrial Customers of Idaho Power Peter J. Richardson Gregory M. Adams RICHARDSON & O'LEARY, PLLC 515 North 27th Street P.O. Box 7218 Boise, Idaho 83702 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email peter(Crichardsonandolearv.com greg(Crichardsonandoleary.com Dr. Don Reading Ben Johnson Associates, Inc. 6070 Hil Road Boise, Idaho 83703 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email dreading(Cmindspring.com Idaho Irrigation Pumpers Association, Inc. Eric L. Olsen RACINE, OLSON, NYE, BUDGE & BAILEY, CHARTERED 201 East Center P.O. Box 1391 Pocatello, Idaho 83204-1391 Hand Delivered U.S. Mail _ Overnight Mail FAX -- Email elo(Cracinelaw.net IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 40 Anthony Yankel 29814 Lake Road Bay Vilage, Ohio 44140 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email tony(Cyankel.net Kroger Co. Kurt J. Boehm BOEHM, KURTZ & LOWRY 36 East Seventh Street, Suite 1510 Cincinnati, Ohio 45202 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email kboehm(CBKLlawfirm.com jrh(Cbattfisher.com Kevin Higgins Energy Strategies, LLC 215 South State Street, Suite 200 Salt Lake City, Utah 84111 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email khiggins(Cenergystrat.com Micron Technology, Inc. MaryV. York HOLLAND & HART LLP 101 South Capital Boulevard, Suite 1400 Boise, Idaho 83702 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email myork(Chollandhart.com tnelson(Chollandhart.com madavidson(Chollandhart.com fschmidt(Chollandhart.com Richard E. Malmgren Senior Assistant General Counsel Micron Technology, Inc. 800 South Federal Way Boise, Idaho 83716 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email remalmgren(Cmicron.com Department of Energy Arthur Perry Bruder, Attorney-Advisor United States Department of Energy 1000 Independence Avenue SW Washington, DC 20585 Hand Delivered U.S. Mail _ Overnight Mail FAX -l Email Arthur.bruder(Chq.doe.gov Steven .porter(Chq.doe.gov IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 41 Dwight D. Etheridge Exeter Associates, Inc. 5565 Sterrett Place, Suite 310 Columbia, Maryland 21044 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email detheridge(Cexeterassociates.com Community Action Partnership Association of Idaho Brad M. Purdy Attorney at Law 2019 North 17th Street Boise, Idaho 83702 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email bmpurdy(Chotmail.com Idaho Conservation League Benjamin J. Otto Idaho Conservation League 710 North Sixth Street P.O. Box 844 Boise, Idaho 83701 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email botto(Cidahoconservation.org Snake River Allance Ken Miler Snake River Allance P.O. Box 1731 Boise, Idaho 83701 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email kmiller(Csnakeriverallance.org NW Energy Coalition Nancy Hirsh, Policy Director NW Energy Coalition 811 First Avenue, Suite 305 Seattle, Washington 98104 Hand Delivered U.S. Mail _ Overnight Mail FAX -2 Email nancy~wenergy.org ~ IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 42