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HomeMy WebLinkAbout20110912ICIP to IPC 64-73.pdfPet J. Richaon ISB # 3195
Grgory M. Adam ISB # 7454
RICHASON & O'LEARY PLLC
515 N. 27th Stret
Boise, Idaho 83702
Telephone: (208) 938-2236
Fax: (208) 938-7904
peterrgcharsonandolear.com
grgtächardsnadolear.com
RECEIVED
lOll SEP 12 PM 2: l 0
Attrneys for the Indusal Cuomer of Idao Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTR OF THE
APPLICATION OF IDAHO POWER
CONWANY FOR AUTHORITY TO
INCRESE ITS RATES AND CHAGES
FOR ELECTRIC SERVICE TO ITS
CUSTOMES IN THE STATE OF IDAHO
) CASE NO. IPC-E-11-l8
)
) SEVENTH REQUESTS FOR
) PRODUCTION OF THE
) INDUSTRIAL CUSTOMERS OF
) IDAHO POWER
Puuat to Rule 225 of the Rules of Procedur of the Idaho Public Utilties Commssion
(the "Commssion"), the Indusal Cusomer of Idao Power ("ICIP") herby request tht
Idao Power Compay ("Idao Power" or the "Compay") provide responses to th followig
with supprtg documents, where applicable. The response to ths prouction request is due on
or before September 28,2011.
Ths prouction request is to be COnsidered as continui, and Idao Power is reuested
to provide by way of supplementa respnses additional documents that it or any person acting
on its behaf may later obta tht will augent the responses or documents produced.
Pleae provide electronic copies, or if unavailable a physical copy, to Mr.
Richan and
Mr. Ada at the addss noted above, and to Dr. Don Readg at: 6070 Hil Road, Boise, Idao
83703, Tel: (208) 342-1700; Fax: (208) 384-151 1; drading~dspring.com.
For each item, pleae indicate the name of
the persn(s) preparg the answer, along
with the job title of such pen(s) and the witness at heag who can sponsor the answer.
Some of the followig request may include disclosurs deemed by Idao Power to be
confdential. Counsel and the expert witness for the Indusal Customers of Idao Power have
executed the protective agreement to obta and us such materials accordg the te of
tht
ageement.
SEVENTH REQUESTS FOR PRODUCTION OF TH ICIP
IPC-E-l i -08
PAGE 2
REQUEST FQR PRODUCTION NO. 64
Refernce the Compay's Response to ICIP Request No. 45.
(a) Please provide the Compay's records demonstig that the facilties chage ha been inplace since 1995 for Schedule 9, 1976 for Schedule 19, and 1964 for Schedule 29/Special
Contrt.
(b) Pleae explai how the Compay chaged customers for distbution facilties beyond the
point of delivery prior to these dates for each schedule.
REQUEST FQR PRODUCTION NO. 65
Refernce the Company's Respnse to ICIP Request No. 45, stting that the facilties chage has
been in place since 1995 for Schedule 9, 1976 for Schedule 19, and 1964 for Schedule 29/Special
Contrt. Plea reconcile ths sttement with Compy's Respnse to ICIP Request No. 25(b),
stting that the oldest piece of equipment insled for Schedule 9 wa inled in 1969, for
Schedule 19 wa instaled in 1945, and Compay's Response to ICIP Request No. 25(c), sttig
that the Compay is stll calculating the monthy facilties charge by multiplying the monthy
facilties charge pecentage by the intial investent for these pieces of equipment.
For equipment alredy in the Company's possession at the time of commencement of
thefacilties charge, did the Company use the value of the initial investment or the depreiated value
of the equipment at the time of commencement of the facilties chage? Plea provide
supportng evidence for the explantion.
REQUEST FOR PRODUCTION NO. 66
With regar to the equipment discussed in Request No. 65, did the Company began charging the
customer in Schedule 9 a facilties charge in 1995 based upon the intial investent in a piece of
equipment instled in 1969, or did the Compay us the depreciated value of the 1969 piece ofequipment in 1995? Wht value did the Company us and baed on what depreiation schedule?
REOUEST FOR PRODUCTION NO. 67
With regard to the equipment discussed in Request No. 65:
(a) Did the Company began chargig the cusomer in Schedule 19 a facilties chage in 1976
baed upon the initial investent in a piece of equipment instled in 1945, or did the
Company use the depreciated value of the 1969 piece of equipment in 1995?
(b) What value did the Compay use and based on what depreciation schedule? Wht value
is the Company using for ths piece of equipment today, the value at instalation in 1945,
or the depreciated value when the charge commenced in 1976?
SEVETH REQUESTS FOR PRODUCTION OF THE IClP
IPC-E-II-08
PAGE 3
(c) Please explai why ths piece of equipment was not fuly depreciated at the time the
Company initiated the facilties chage 3 i year af the equipment was intially
instaled.
(d) Pleae explai how the Compay ha not over-reover for ths fuly depreciated asset
from the Schedule i 9 cusme since 1976?
REQUEST FOR PRODUCTION NO. 68
Reference the Company's Response to ICIP Request Nos. 9, 10, 11, and 51. Pleae confrm
despite the responses to these questons tht it is not the Compay's policy to sell distbuton
facilties to cusomer, tht in Cas No. IPC-E-05-16 the Company sold distbuton facilties to
the Sun Valley Company/Sinclai Oil Co. at depreciate bok value. Wht is the Company's
policy? Pleae explain why the Company will sell facilties to one cusmer at book value but
refus to sell to other customer at book value.
REQUEST FOR PRODUCTION NO. 69
Referece the Company's Respons to ICIP Request No. 47(c), statig tht all cost for facilities
instaled beyond the point of delivery ar included in the assoiated cusomer classes' revenue
requiment, and when the facilties chage revenue is applied as a credit or offset, the associated
cusomer classes' revenue requiment is reduced.
(a) When the Compay includes the cost for distbution facilties beyond the point of
delivery in the revenue requiment, does the Compay use a depreciation schedule as it
mus for distrbution facilties on the Compay's side of the meter included in the
revenue reuiement? Pleae explai how depreciation is consider when facilties
beyond the point of delivery are included in the revenue requiment prior to the point
tht the Company credits facilties chage revenue back to the cusomer class's revenue
requirement.
(b) If the amount of the revenue requirement decrees over tie to acunt for depreciation,
but the principal amount of the facì1ties chage to the individua customer does not
deceae over time, please explain how the individua facilties chage customer is not
subsidizing the rest of the customer class.
(c) If the amount of the revenue requiement does not decreas over time to account for
depreciation of distbuton facì1ties beyond the point of delivery, pleae explain how the
Compay is not over-reoverg for depreciate assets.
REQUEST FOR PRODUCTION NO. 70
Please adt or deny th in meetings with reresentatives of
the iCIP in the fall and witer of
2010 regarding the facilties charge, Idao Power reresentatives stted that the reaon the
SEVENTH REQUESTS FOR PRODUCTION OF THE ICIP
IPC-E-II-08
PAGE 4
Company does not apply a depreciation schedule to the initial investment in facilties chage
equipment is that Idaho Power taes on the risk that it will have to replace a piece of failed
equipment prior to expiration of its depreiation schedule. Pleae also adt or deny that Idao
Power stated that its insurce policy would not cover replacement of such equipment.
REQUEST FOR PRODUCTION NO. 71
Reference the Company's Response to ICIP Request No. 53(c), statig that the Compay
reovers cost associated with unnsu amounts related to failed facilties chage equipment by
booking those cost as expenses and including them in cusomer rates. In light of
ths response~please explai the basis for not allowing for the facilities charge equipment's initial value to
decrease over time as the piece of equipment depreciates. Please explai why the Compay
includes depreciation as a positive component to the facilties charge tht will incree the
amount the customer pays, rather th decreae it.
REQUEST FOR PRODUCTION NO. 72
Reference the Company's Response to ICIP Request No. 57. Plea provide the "Servce
Request Form." Pleae conf that the form is not provided to or signed by existig facilties
charge customer, except with regar to new equipment instled at their premises.
REQUEST FOR PRODUCTION NO. 73
Reference the Company's Response to ICIP Request No. 58. Please confrm that the Compay
would recover the unsur cost of such equipment failing prior to expirtion of its 31-year
depreiation schedule in the maner discusse in the Compay's Response to ICIP Request No.
53.
Than you for your prompt attention to ths Seventh Request for Production.
ly your,
OJ
ory Adas
RICHASON & O'LEARY, PLLC
SEVENTH REQUESTS FOR PRODUCTION OF THE ICLP
IPC-E-I1-08
PAGE 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7th day of
September, 2011, a tre and corrt copy of thewithin and foregoing SEVENTH REQUESTS FOR PRODUCTION OF THE INDUSTRL
CUSTOMERS OF IDAHO POWER IN CASE NO.IPC-E-11-08 was served in the maer shown to:
Ms. Jean JewellCommsion Se
Idao Public Utiities Commssion
POBox 83720
Boise, il 83720-0074
_ Hand Delivery
x. U.S. Mai, postage pre-pad
Facsimile
X Electrnic Mail
Lisa D Nordstrm
Jason B Willams
Idaho Power Company
POBox 70
Boise, Idaho 83707-0070
lnordtromcæidahopower.com
i willamscæidahopower.com
_ Hand Delivery
_U.S. Mail, postage pre-paid
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Donovan Walker
Grg Said
Idaho Power Company
POBox 70
Boise, Idaho 83707-0070
dwalkeriglidaopower.com
gsadcæidahopower.com
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Eric L. Olsen
Racine, Olson, Nye, Budge &
Bailey, Chaered
P.O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
elo($cinelaw.net
_Hand Delivery
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Anthony Yanel
29814 Lae Roa
Bay Vilage, Ohio 44140
tony~yanei.net
Hand Delivery
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Facsimle
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. l ~ It
Donald L Howell, II
Karl Klein
Idaho Public Utilties Commssion
472 W Washigton
Boise iD 83702
don.howell(ipuc.idaho.gov
karl.kleìnißuc.idaho.gov
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Arur Perr Bruder
US Deparent of Energy
1000 Independence Ave SW
Washigton DC 20585
Artur .bruderWtq.doe.gov
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Dwght Etheridge
Exeter Associates, Inc.
5565 Sterrtt Place Ste 310
Columbia MD 2 i 044
detheridge(iexeterasociates.com
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Steven A Porter
Electrcity & Fossil Energy
US Deparent of Energy
steven.porteriß.doe.gov
(email only)
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John R Hamond Jr
Batt Fisher Pusch & Alderman LLP
PO Box 1308
Boise ID 83701
jrhW2battsher.com
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KurJ Boehm
Boehm Kur & Lowery
36 E Seventh St Ste 1510
Cincinati OH 45202
kboehm(ibkllawfrm.com
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Brad M Purdy
CAPA
2019 N 17th St
Boise ID 83702
bmpury(ghotmaiL.com
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Richard E Malmgrn
Micron Technology Inc
800 South Federa Way
Boise ID 83716
re.inalmgrentImicron.com
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.. . ~ ,.
Mar V York
ThorvaldA Nelson
Mark A Davidson
Holland & Har
6380 Fiddlers Green Circle Ste 500
Greenwood Vilage CO 80111
myork~ollandhar.com
tnelson~ollandhar.com
madavidsonaghollandhar.com
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Benjamin Oto
Idaho Conservation League
POBox 844
Boise ID 83701
bottoagidaoconservation.org
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Ken Miler
Snake River Alliance
POBox 1731
Boise ID 83701
kmileragsnakerverliance.org
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ory Adams