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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