HomeMy WebLinkAbout20111114CAPAI to IPC 1-21.pdfBrad M. Purdy
Attorney at Law
Bar No. 3472
2019 N. 1 ih St.
Boise, ID. 83702
(208) 384-1299 (Land)
(208) 384-8511 (Fax)
bmpurdy~hotmail.com
Attorney for Petitioner
Community Action Partnership
Association of Idaho
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 ITS CUSTOMERS IN THE STATE OF
IDAHO
) CASE NO. IPC-ll-
COMMUNITY ACTION
PARTNERSHIP ASSOCIA-
TION OF IDAHO'S RESPONSES
TO IDAHO POWER'S FIRST
DISCOVERY REQUES TS
COMES NOW, the Community Action Partnership Association of Idaho (CAP AI)
and hereby responds to Idaho Power s First Production Requests to CAP AI as follows:
REQUEST FOR PRODUCTION NO.: Please provide a copy of all analyses, materials, and
workpapers created or relied upon by Ms. Ottens in preparing her testimony.
RESPONSE:Please see the materials appended hereto as Attachment "A" and Attachment
B." Other materials relied upon by Ms. Ottens consist of readily accessible public documents
and are identified elsewhere in these responses.
REQUEST FOR PRODUCTION NO.Please provide a copy of all analyses, materials
and workpapers created or relied upon by Ms. Ottens in preparing her testimony concerning rate
of return.
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
RESPONSE:See Response to Request for Production No.!. As her testimony makes clear
Ms. Ottens did not propose a specific rate of return for the Company in this proceedingl and does
not profess to possess expertise in the calculation of authorized rates of return for regulated
public utilities. 2
REQUEST FOR PRODUCTION NO.On page 23 , line 15 of her testimony, Ms. Ottens
refers to "an average 20 year waiting list for these applicants." Please explain what inputs were
used in this calculation and the formula by which this number was derived.
RESPONSE:CAP AI's response to this request is based on that chart appended hereto as
Attachment A titled" Agency Wait List Information, June 2011." The inputs are found in the
first and third columns of the attachment (labeled as "Number On Waiting List" and "2008 Pre
AARA Annual Production " respectively). The formula consists of dividing the third column
into the first. This chart, by its nature, includes data that is dynamic and provides a snapshot in
time for illustrative purposes.
REQUEST FOR PRODUCTION NO.Please provide the actual number of applicants on
the Idaho State Weatherization Assistance Program ("W AP") wait list. Of these applicants, how
many qualify for Idaho Power s Weatherization Assistance for Qualified Customers ("W AQC"
Program?
RESPONSE:CAP AI objects to this request on the basis that it contains words or terms that
are vague, undefined, and speculative and the request is compound without subsections. Without
waiving this objection, CAP AI notes that the total number of customers waiting for
weatherization service under W AP is found in the first column of Attachment "A" as of the date
the chart was created.
See, Testimony ofTeri Ottens
, p.
In. 20.
ld.
, p.
In.
p.
In. 12.
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
Regarding the second part of this question, CAP AI responds that it is not possible to state
with certainty the precise number of customers on the W AP wait list who will ultimately
qualify" for assistance under W AQC. It is unclear what the Company means by the word
qualify." W AP consists of two components; funds obtained from the Department of Energy
and funds obtained from public electric utilities such as Idaho Power (through W AQC). When a
person applies for low-income weatherization assistance, an initial determination is made as to
that person s eligibility under the two components ofW AP. Which of the two sources the funds
ultimately come from, if at all, depends on numerous factors. Customers on the W AP wait list
are prioritized depending on the nature and severity of their circumstances. Further, customers
financial and other circumstances often change and a person on the W AP list might be or become
ineligible for W AQC for any number of reasons. Other customers on the W AP wait list who
initially weren t eligible for W AQC might later become so. It is impossible to predict these
changes. In any event, customers who receive assistance under W AQC must have their
households audited prior to receiving that assistance to ensure compliance with W AQC' s
conditions and limitations at the time the weatherization measures are installed.
REQUEST FOR PRODUCTION NO.On page 23 , lines 14-15 of her testimony, Ms.
Ottens states that (in J Ada County alone there are 6000 homes that are eligible for W AQC
funding." Based on current levels of funding, this equate(sJ to an average 20 year waiting list for
these applicants (emphasis added). Have the occupants of these 6000 homes actually been
qualified to participate in W AQC?
RESPONSE:See objection and response to request No.4. CAP AI cannot fully answer this
question without the term "qualify" defined. It is impossible to know whether a customer will
receive W AQC benefits until they have gone through the home audit process. Some customers
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
on the waiting list drop off for many different reasons. Other customers are added to the waiting
list. The estimates of customers in need oflow-income weatherization made by Ms. Ottens is a
snapshot in time. In addition, the CAP agency "EI-Ada" does not carry-over weatherization
applicants from one year to the next. Applications must be renewed every year. EI-Ada takes in
on average, 6000 applications annually. Incidentally, to clarify, the 6000 customer figure
includes a very minimal amount of customers living in Elmore County. The number
customers is too small to materially alter Ms. Ottens' testimony in any respect.
REQUEST FOR PRODUCTION NO.: Have the 6000 homes/occupants referenced above in
Request For Production No.5 been qualified for W AP or are they automatically placed on the
W AQC waiting list based solely upon their eligibility?
RESPONSE:CAP AI again objects to the undefined use of the word "qualify," and to the
confusing nature of this request. Without waiving this objection, to be eligible for W AQC
customers must meet income eligibility, have not been previously weatherized within a specific
time frame, and have a primary heating source of electricity.
REQUEST FOR PRODUCTION NO.Must applicants on the 20-year waiting list apply
annually to participate in W AP? Do the applications of unserved applicants carryover from
year- to-year? Please explain.
RESPONSE:As set forth in CAP AI's response to request No., applicants served by EI-Ada
must apply for W AP benefits annually. There is no carry-over. For the other CAP agencies, a
person s name can remain on a list that is carried over to the next year, but that application must
be re-reviewed to ensure eligibility prior to installation of weatherization measures.
REQUEST FOR PRODUCTION NO.Do Community Action Partnership ("CAP"
agencies automatically enroll Low Income Home Energy Assistance Program ("LlHEAP"
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
recipients in W AP or do CAP agencies allow LIHEAP recipients to apply separately? Please
explain.
RESPONSE:No. LlHEAP recipients are not automatically enrolled in W AP. Participation
in W AP is a second and separate step in the intake process.
REQUEST FOR PRODUCTION NO.How many of the applicants on the W AP wait list
live in tribal territory? Of these, how many that live in Idaho Power s service territory qualify
for W AQC?
RESPONSE:CAP AI objects to this request on the basis that the terms "tribal territory" and
qualify" are undefined. Without waiving this objection, CAP AI responds that, to the best of its
knowledge, the CAP agencies that provide services within Idaho Power s service territory do not
track people on the W AP wait list, including those who "qualify" for W AQC, on the basis that
they reside in "tribal territory.
REQUEST FOR PRODUCTION NO. For each year from 2005 to the present, how
many people applied for W AQC?
RESPONSE:As already explained, people do not separately apply for W AQC; they apply for
low-income weatherization assistance. A determination of whether they ultimately are entitled
to receive W AQC assistance is made after their application is reviewed, the numerous criteria are
satisfied and a home audit is conducted ensuring compliance with W AQC's conditions and
limitations.
REQUEST FOR PRODUCTION NO. For each year from 2005 to the present, how
many W AQC applicants were in fact qualified to receive service?
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
RESPONSE:CAP AI objects to this request on the basis that the term "qualified" is
undefined. Without waiving this objection, CAP AI refers the Company to response to request
No.
REQUEST FOR PRODUCTION NO. 12 For each year from 2005 to the present, what
number ofW AQC recipients on the waiting list resulted in projects benefitting Idaho Power
customers?
RESPONSE:CAP AI objects to this request on the basis that it is vague and contains terms
(including "projects benefitting Idaho Power customers ) that are undefined and subjective. It
would require substantial speculation, therefore, for CAP AI to respond to this request.
REQUEST FOR PRODUCTION NO. 13 For each year from 2005 to the present, how
many applicants on the W AQC waiting list were found to not be qualified due to use of a heat
source other than electricity provided by Idaho Power?
RESPONSE:CAP AI reiterates its objection to the undefined term "qualified." Without
waiving this objection, CAP AI notes that customers who do not use a heat source provided by
Idaho Power (i., electricity) are not eligible for W AQC assistance.
REQUEST FOR PRODUCTION NO. 14 How many applicants are on the W AP wait list
for non-Idaho Power fuel vendors (e., wood, propane, natural gas)?
RESPONSE:CAP AI is in the process of splitting out the number of customers on the W
wait list based on their primary heat source and, to the extent that it can be split out, will provide
this information as soon as it is available.
REQUEST FOR PRODUCTION NO. 15 On page 14, lines 16-, Ms. Ottens states that:
CAP AI seeks the $1.5 million increase necessary to simply bring Idaho Power into relative
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
parity with A VISTA." Please provide all studies and other documentation demonstrating that
this level of funding is necessary to satisfy the need for low-income weatherization.
RESPONSE:The level of funding increase sought will not completely "satisfy the need" for
low-income weatherization. In addition to the Attachments referenced herein and included with
these responses, Ms. Ottens relied upon data readily accessible to any member of the public
including electric public utility annual reports found on the Commission s website as well as the
Commission s 2009 Annual Report.
REQUEST FOR PRODUCTION NO. 16 Please provide all studies and other
documentation demonstrating that the need for low-income weatherization in the A VISTA
Rocky Mountain Power, and Idaho Power service territories is proportional to the amount of
weatherization assistance funding provided by each utility.
RESPONSE:Please refer to CAP AI's response to request No. 15. In addition, Ms. Ottens
relied upon each utility s own annual report to the Commission.
REQUEST FOR PRODUCTION NO. 17 Did the existence of Idaho Power
Weatherization Solutions Program in any way impact the amount ofW AQC funding requested
by CAP AI? If so, how?
RESPONSE:No. CAP AI is not yet fully familiar with this program, including its features
and possible benefits. CAP AI was not involved in the implementation of this program but notes
that it apparently is designed to assist customers who are above the various low-income
thresholds for various low-income assistance programs such as LlHEAP and W AQC. The
program is still in the pilot stage and CAP AI does not yet know what, if any, impact it will have
on those customers whose interests CAP AI represents.
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
REQUEST FOR PRODUCTION NO. 18 Is it CAP AI's intent to set W AQC funding at a
level that will eliminate the W AP list? Please explain.
RESPONSE:No. Such an intention is inconceivable in light of the current state of the
economy, and the fact that the ranks of the poor are swelling and typical housing stock oflow-
income customers continues to deteriorate. Furthermore, as already explained, W AQC is only
one of two components comprising W AP. Federal funds received through the Department of
Energy are substantially greater than funds provided by Idaho s three electric public utilities
especially at their current levels of funding. W AQC remains an important adjunct, however, to
the very limited resources available to help the poor.
REQUEST FOR PRODUCTION NO. 19 If CAP AI felt that the level oflow- income
weatherization fund was insufficient during the years of2003-2010, why did it not request
increased funding during that time period?
RESPONSE:CAP AI has sought low-income weatherization funding increases from Idaho
Power during the stated time period. CAP AI references and incorporates herein the testimony of
Ms. Teri Ottens filed in this case on October 7 2011 (specifically, p. 15 , In. 9 through p. 16, In.
14) for a thorough discussion of this point. In addition, please refer to CAP AI's response to the
following request.
REQUEST FOR PRODUCTION NO. 20 If CAP AI felt that the level oflow- income
weatherization fund was insufficient in 2007, why did it not request increased funding when both
parties filed a joint application in Case No. IPC-07-09 to extend funding at $1.2 million?
RESPONSE:As the Company is already aware, the Commission, in Order No. 29505 issued
on May 25 2004 in Case No. IPC-03-, ordered Idaho Power, over its objection, to increase
funding to its Low-Income Weatherization Assistance Program (LIW A) to a total level of $1.2
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
million "for each of the next three years.3 This brought Idaho Power s LIW A funding to
relative parity with A VISTA. The increased low-income weatherization funding ordered by the
Commission, therefore, was effective only through 2007. In its final Order, the Commission
ruled: "(tJo continue these funds (LIW AJ beyond June 1 , 2007, CAP AI must file an application
to extend LIW A funding in early 2007.4 The Commission s approval of the increased LIW A
funding level was conditioned upon annual reports by the Company, among other things.
This Commission-ordered filing resulted in the joint application between CAP AI and
Idaho Power in Case No. IPC-07-, proposing to continue LIW A. Both the Company and
CAP AI agreed that LIW A had proven to be a much-needed and prudent program and that it
should continue without any specific expiration date. For its part, the Company understandably
desired a formal ruling from the Commission authorizing continuation ofLIW A. The
Commission approved the joint application on June 25 2007 in Order No. 30350.
Thus, the nature of the filing in Case No. IPC-07-09 was somewhat unique and was
more in the nature of a collaborative effort between CAP AI and the Company whose respective
objectives seemed harmonious at that time.
During this same period of time, CAP AI was seeking low-income weatherization funding
increases from Rocky Mountain Power whose funding level was below that of Idaho Power and
AVIS T A. As in this case, CAP AI recognized the importance to the utilities and their ratepayers
of seeking parity in LIW A funding between the utilities. Combined with Idaho Power s ready
willingness to extend its own program in 2007, CAP AI focused on seeking increased funding for
Rocky Mountain and deferred, for the time being, seeking an increase in funding from Idaho
Power. CAP AI did this even knowing that the Company s funding level was insufficient to
Order No. 29505 at p. 32.
ld. at p. 33.
ld.
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
eliminate the disparity between Idaho Power s funding level and customer need for the program.
CAP AI's actions were consistent with the principle of parity identified in Ms. Ottens ' testimony.
Since that time, Idaho Power s funding levels have dropped well below A VISTA's and below
Rocky Mountain Power s. This is explained in Ms. Ottens ' testimony.
Had CAP AI sought and obtained increased funding from Idaho Power in 2007 as posited
by the request, it would have required an even greater increase in Rocky Mountain s funding to
bring that utility into parity. Thus, CAP AI's decisions regarding when to seek LIW A funding
increases have been the product of a well-reasoned, sequentially logical approach.
REQUEST FOR PRODUCTION NO. Please identify the expert retained by CAP AI to
analyze the Rocky Mountain Power evaluation study referenced on page 25 of Ms. Ottens
testimony.
RESPONSE:The expert retained by CAP AI to analyze the Rocky Mountain Power
evaluation study is Mr. Roger Colton.
Dated, this 11th day of November, 2011.
Brad M. Purdy
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
CERTIFICATE OF SERVICE
, the undersigned, hereby certify that on the lIth day of November, 2011 I served a copy
of the foregoing document on the following by electronic mail.
Lisa D. Nordstrom
Donovan E. Walker
Jason B. Williams
Idaho Power Company
1221 W. Idaho St.
Boise, ID 83702
lnordstrom~idahopower. com
dwalker~idahopower. com
iwilliams~idahopower. com
Gregory W. Said
Idaho Power Company
1221 W. Idaho St.
Boise, ID 83702
gsaid~idahopower. com
Donald L. Howell
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702
Don.howell~puc. idaho. gov
Karl.klein~puclidaho. gov
Eric L. Olsen
201 E. Center
Pocatello, ID 83204-1391
elo~racinlaw. net
Anthony Yanke I
29814 Bay Village, OH 44140
tony~yankel. net
Peter 1. Richardson
Gregory M. Adams
515 N. 2ih St.
Boise, ID 83702
peter~richardsonandoleary. com
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
greg~richardsonandoleary. com
Don Reading
6070 Hill Rd.
Boise, ID 83703
dreading~mindspring. com
Arthur Perry Bruder
United States Department of Energy
1000 Independence Ave., SW
Washington D.C. 20585
Arthur. bruder~hq. doe. gov
Kurt 1. Boehm
36 E. Seventh St., Suite 1510
Cincinnati, OH 45202
kboehm~bkllawfirm. com
Thorvald A. Nelson
Holland & Hart
6380 S. Fiddlers Green Circle
Suite 500
Greenwood Village, CO 80 III
tne1son~hollandhart. com
Benjamin 1. Otto
Idaho Conservation League
710 N. Sixth St.
Boise, ID 83702
botto~idahoconservation. org
Ken Miller
Snake River Alliance
O. Box 1731
Boise, ID 83701
kmiller~snakeriveralliance. org
Nancy Hirsch
NW Energy Coalition
811 1st Ave., Suite 305
Seattle, W A 98104
nancy~nwenergy. org
Dean 1. Miller
420 E. Bannock
Boise, ID 83702
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS
joe~mcdevitt- miller. com
Scott Paul, CEO
Hoku Materials, Inc.
One Hoku Way
Pocatello, ID 83204
spaul~hokucorp. com
DATED, this lIth day of November, 2011.
Brad M. Purdy
CAP AI RESPONSE TO IDAHO POWER FIRST PRODUCTION REQUESTS