ON29132.pdf

Office of the Secretary
Service Date
October 21 2002
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL )
OF DEPOSIT REQUIREMENTS IN
SCHEDULES 24 AND 25 (IRRIGATION CUSTOMERS).
CASE NO. IPC-O2-
ORDER NO. 29132
On August 20, 2002, Idaho Power Company filed an application requesting approval
to revise Schedules 24 and 25 for electric service to irrigation customers. The Commission
issued a Notice of Application and Notice of Modified Procedure on September 11 , 2002
establishing a period for the filing of written comments. During the comment period, written
comments were filed by the Commission Staff and the Idaho Irrigation Pumpers Association
Inc. (Irrigators).
Pursuant to Schedules 24 and 25, Idaho Power may collect a deposit from irrigation
customers who have two or more late payments of $100 or more during a 12-month period. The
Company proposes to change the criteria to require a deposit from customers having two or more
reminder notices, rather than late payments, for unpaid balances. This change would allow
customers 45 days instead of 30 days to pay their bills without incurring the requirement of a
deposit in the following year. The second change proposed by Idaho Power is to use a formula
that relates deposit amounts to the electrical characteristics of the customer s pump and motor
and the Company s irrigation rates rather than determining the deposit amount based on one and
one-halftimes the customer s previous year highest monthly billing. According to Idaho Power
past billings are not necessarily indicative of bills for the upcoming year because other factors
like crop rotation and weather conditions, may playa part in determining electric use during the
next growing season. Idaho Power asserts that its proposed changes are intended to be dollar
neutral in the aggregate.
In its written comments, the Commission Staff supported the changes proposed by the
Company. Staff noted that the new deposit formula produces the same total irrigation deposit
revenue for the Company, although some customers will pay more under the proposed
methodology while others pay less. Staff supported the new calculation because it establishes a
ORDER NO. 29132
uniform methodology to determine deposit amounts, it is difficult to manipulate, and lends itself
to automation. In its written comments, the Irrigators simply stated that they "do not oppose
Idaho Power s proposed revisions to the deposit requirements for irrigation customers.
The Commission has determined to approve the changes to the deposit requirements
in Schedules 24 and 25 for Idaho Power s irrigation customers. Those schedules currently
require deposits from customers who made two or more late payments of at least $100 each
during a 12-month period. One change proposed by Idaho Power puts the deposit requirement
on customers who have actually received late notices from the Company, which should mean
fewer customers will be required to provide deposits. Customers who make late payments can
avoid the deposit requirement by making payments prior to the issuance of late notices by the
Company. That change should more closely serve the purpose of the deposit requirement by
placing its burden only on customers who have needed notification from the Company to make
payments.
The Commission also finds reasonable the Company s proposal for calculating the
deposit amount. The current calculation is based on the customer s highest monthly bill at the
particular metering point during the past year. For various reasons, the resulting deposit amount
may not reasonably reflect anticipated power use at that metering point during the next year.
The proposed deposit calculation ties the deposit to the characteristics and anticipated usage of
the particular pump, based on the customer s estimated in-season bill. The proposed formula
creates a more uniform deposit methodology, which should be simpler for customers to
understand and for Idaho Power to administer. The Commission also notes that the Irrigators
not object to the changes in Schedules 24 and 25 proposed by Idaho Power.
The Commission approves the changes to Schedules 24 and 25 , as proposed by Idaho
Power, for service to the Company s irrigation customers, effective as of the date of this Order.
ORDER
IT IS HEREBY ORDERED that the application of Idaho Power for changes to the
deposit requirements in Schedules 24 and 25 is approved. The changes as set forth in the
schedules attached to the Company s application are approved, effective as of the date of this
Order. Idaho Power is directed to refile Schedules 24 and 25 with the approved changes and the
new effective date.
ORDER NO. 29132
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. IPC-02-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this Case No. IPC-02-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
~fI-
day of October 2002.
V ~
MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
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ORDER NO. 29132