20110104Vol XI Shelley pp 2206-2265.pdf

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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF CHANGES TO
ITS ELECTRIC SERVICE SCHEDULES
Case No. PAC-E-10-07
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BEARING BEFORE:
COMMISSIONER MARSHA H. SMITH (Presiding)
COMMISSIONER JIM KEMPTON
COMMISSIONER MACK REDFORD
Place:Shelley Senior Ci tizen Center
193 West Pine
Shelley, Idaho
Date:December 14, 2010
Time:1:30 p.m.
VOLUME XI -- Pages 2206 - 2265
(REPORTER'S COUNT Pages 1 - 59)
I............CERTIFIED SHORTHAND REPORTERS
T&T REPORTING
ORIGINAL
REPORTED By
Crystal Hereford,
CSR, RPR
POST OFFICE Box 51020
IDAHO FALLS, IDAHO 83405
208.529.5491 · FAX [phone]%. 1.800.529.5491
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PUBLIC HEARG - 12/14/2010
ROCKY MOUNAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO= SHEET i PAGE i = PAGE 3
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION E X H I BIT S
r= PAGE 4
1 PROCEEDINGS
2 COMMISSIONER SMITH: Good afternoon,
3 ladies and gentlemen. We'd like to get our hearing
4 started.
5 First of all, I'd like to introduce the
6 commission. My name is Marsha Smith. I'm one of the
7 three commissioners that make up the Idaho Public
8 Utilities Commission.
9 This is the time and place set for a
10 public hearing before the Idaho Public Utilities
11 Commission in Case No. PAC-E-10-07, further identified
12 as In the Matter of the Application of PacifiCorp
13 doing business as Rocky Mountain Power for Approval of
14 Changes to its Electric Service Schedules.
15 On my left is Commissioner Jim Kempton,
16 who is also the president of the commission, and on my
17 right is Commissioner Mack Redford. The three of us
18 make up the commission, and we're here today to take
19 comments from you about this application.
20 I'd like to start with appearances from
21 the parties. We'll start with the applicant, and
22 you'll just have to speak loudly.
23 MR. SOlANDER: Thank you. Daniel
24 Solander on behalf of Rocky Mountain Power. And I
Page 2 25 have with me Ted Weston, our Idaho state community
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER FOR APPROVAL OF CHAGES TO
ITS ELECTRIC SERVICE SCHEDULES
)
)
) Case No. PAC-E-10-07
)
)
HEARING BEFORE:
COMMISSIONER MASHA H. SMITH (Presiding)
COMMISSIONER JIM KEMPTON
COMMISSIONER MACK REDFORD
Place: Shelley Senior Citizen Center
193 West Pine
Shelley, Idaho
Date: December 14, 2010
Time: 1:30 p.m.
Crystal Hereford,
CSR, RPR
.. PAGE 2
APPEARANCES
For Rocky Mountain Power:
DANIEL E. SOLANDER, ESQ.
201 South Main Street
Suite 2300
Salt Lake City, Utah 84111
For Commission Staff:
NEIL PRICE, ESQ.
Deputy Attorney General
472 West Washington Street
Boise, Idaho 83729
Also Present:
Ted Weston
ww.TandTReporting.com
No. DESCRIPTION
901 Statement - Robert E. Ziel
Page 3
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 7
1 commission will deliberate the merits of the case and
2 issue a written order that describes our decision and
3 the evidence we relied upon to make it. Commission
4 orders can be appealed directly to the state supreme
5 court, and so that's why it's importnt that our
6 record be adequate.
7 We are very pleased to be here today to
8 hear your testimony, and i know that i speak for all
9 of us when i say that we are very much aware of the
1 a current state of the economy and the burden additional
11 rate increases place on customers.
12 This is a significant case, and we are
13 taking it very seriously. The commission never, in my
14 experience, approves anything beyond what the evidence
15 shows is absolutely necessary for the utility to
16 recover.
17 Our procedure for today is if you wish to
18 testify, we have sign-up sheets at the table near the
19 door. You will be called in the order in which you
20 signed in to testify.
21 i will call your name off of the sheet,
22 and you will come forwrd. Commissioner Redford is
23 going to give you the oath. You'll raise your right
24 hand. And then our Deputy Attorney General Price will
25 ask you two questions to get you on the record, and
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= SHEET 2 PAGE 5
1 manager.
2 COMMISSIONER SMITH: Thank you. And for
3 the staff?
4 MR. PRICE: Neil Price, deputy attorney
5 general. I represent commission staff.
6 COMMISSIONER SMITH: There are other
7 partes to the hearing. Mr. Smith, are you making an
8 appearance or not?
9 MR. SMITH: We are cutting back costs. i
1 a told my attorney not to show up. But we do not have
11 any questions. Thank you.
12 COMMISSIONER SMITH: All right. So let
13 the record reflect that none of the other intervenors
14 in this matter have made an appearance at this
15 hearing.
16 i just want to take a minute and describe
17 the hearing process for the commission. Vlen the
18 commission -- a commission hearing is like a district
19 court proceeding, and commission decisions have to be
20 based on evidence that is provided to us in the
21 record. And that's why we have a court reporter here
22 today who will take down everyone's statement, so that
23 we will have a written record of that and be able to
24 review it as we deliberate on our decision.
25 Therefore, it's importnt that only one
.. PAGE 6
1 person speak at a time, or it makes it very diffcult
2 for the court reporter. It is also not appropriate to
3 speak out of turn, call out from the audience, clap,
4 or in any other way disrupt our hearing.
5 we are here to listen to your statements.
6 Unfortunately, our process doesn't allow us to answer
7 questions or respond to your comments.
8 The commission is required by state law
9 to consider a rate increase request when it comes to
1 a us and to balance the interests of the public and
11 those of the utilty. So we don't have the option or
12 luxury of just saying no. We are required by law to
13 allow utilities to recover prudently incurred expenses
14 and to have the opportunity to earn a reasonable
15 return on their investment.
16 The commission may deny recovery to a
17 utility if there isn't suffcient evidence to support
18 its expenditures.
19 Information about the numerous and
20 complex issues of the case can be found on the
21 commission's website, and we would invite you to go
22 there to look. It's ww.puc.idaho.gov, and all of the
23 testimony and exhibits that have been presented to us
24 are there and available for you to look at also.
25 After the record is closed, the
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r- PAGE 8
1 that is your name and your mailing address. Once
2 you've gotten those on the record, then you're free to
3 make your statement.
4 Vlen you've finished, then Mr. Price and
5 Mr. Solander and the three commissioners may have
6 questions to clarify your statement or to get more
7 information, and so there may be questions for you.
8 If you don't wish to make a statement
9 orally today, you may always use the forms in the back
1 a of the room to submit a written comment, or you may
11 also do that online if that's more convenient. If you
12 do want to provide written comments, you need to do
13 that by Monday, December 20. That will be the date of
14 our last hearing, and that will be when the record in
15 this case closes.
16 So with that, I'LL look at my list, and
17 we will begin with Matt Gellings.
18 I believe that microphone is always
19 turned on. You may sit or stand, your choice,
20 whatever you're most comfortable doing.
21 MATT GELLINGS WAS FIRST DULY SWORN
22 MR. PRICE: Please state and spell your
23 name for the record.
24 MR. GELLINGS: Matt Gellngs.
25 COMMISSIONER SMITH: Could you use the
T&T REPORTING [phone]
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PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 11
1 . And so, you know, I guess we're --I just
2 want to say that we understand that there's going to
3 be a cost of increase of doing business every year.
4 We just feel like the current rate and what they are
5 doing is just maybe a little bit excessive.
6 At least on normal farm operations, we
7 usually figure 3 to maybe 8 percent on the cost of
8 doing business every year. We feel like anything over
9 1 a percent, of course, over 1 a years doubles our rates
1 a again. And commodity prices have come up, but our
11 income as farmers, of course, fluctuates from year to
12 year.
13 And so I will actually be kind of short
14 because I know you do have a lot of other people
15 here. But we would just ask, for the Idaho Grain
16 Producers, just to please be reasonable on any rate
17 increase. And that would be my testimony.
18 COMMISSIONER SMITH: All right.
19 Mr. Gellings, let's see if there are any questions for
20 you.
21
22
23
24
25
__ SHEET 3 PAGE 9
1 microphone?
2 MR. GELLINGS: Matt Gellngs, M-A-T-T,
3 G-E-L-L-I-N-G-S.
4 MR. PRICE: And what is your mailing
5 address?
6 MR. GELLINGS: 4760 West 33rd North.
7 MR. PRICE: You can go ahead and proceed.
8 COMMISSIONER SMITH: And what city?
9 MR. GELLINGS: Idaho Falls. Sorry.
1 a First of all, I'd like to thank you all
11 for being here.
12 I farm just west of Idaho Falls. I'm a
13 grain, potato, hay farmer. And I actually did go to
14 school here. I heard you guys talking there. I was a
15 Shelley Russet. The mascot was a -- it's a tough
16 one. But they've done quite well in football and
17 basketball, so we do appreciate you guys taking the
18 time.
19 First of all, I am representing the Idaho
20 Grain Producers Association. I'm the past president
21 of that. I would just like to maybe just touch on
22 grain producton, although I do raise alfalfa and I do
23 lease out some potato ground, but I'm representing the
24 grain producers.
25 A couple years ago when we did lose the
MR. GELLINGS: Okay. Thank you.
COMMISSIONER SMITH: From the company?
MR. SOLANDER: No questions.
COMMISSIONER REDFORD: From the staff?
MR. PRICE: No questions.
~ PAGE 10
1 BPA credits, of course, our pumping costs have
2 doubled. I'm actually a small operator. I farm about
3 320 acres, and I do pump out of a canaL. And so my --
4 on my own operation, prices went from $25 an acre to
5 $55 an acre within -- as soon as that increase did
6 happen.
7 Deep well costs -- and, of course, I'm
8 just talking Bonneville County. But deep well costs
9 on our average grain producers out there are averaging
10 $127 per acre now, where they used to be $70 per
11 acre.
12 And we do understand that Rocky Mountain
13 Power, they do have the load diversion program, which
14 we do applaud that. That is a great program, and
15 there's been a lot of farmers that have participated
16 in that diversion program. We do understand that --
17 we have heard that under 75 horsepower, I think, is
18 going to come around where that might not be eligible
19 for that.
20 But anyway, we as irrigators, of course,
21 we need this power to irrigate our crops, and we're
22 willing to definitely pay our fair share. Of course,
23 other inputs -- you did mention the economy. And our
24 other inputs have gone up, fertlizer, chemicals, seed
25 costs, harvest costs, because of machinery costs.
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PAGE 12
1 COMMISSIONER SMITH: From commissioners?
2 COMMISSIONER REDFORD: No.
3 COMMISSIONER SMITH: Nor i.
4 MR. GELLINGS: That's great.
5 COMMISSIONER SMITH: We appreciate your
6 statement.
7 MR. GELLINGS: Thank you so much.
8 COMMISSIONER SMITH: Bett Briggs.
9 BETTY BRIGGS WAS FIRST DULY SWORN
1 a MR. PRICE: Will you please state your
11 name and spell it for the record?
12 MS. BRIGGS: Bett Briggs, B-E-T-T-Y,
13 B-R-I-G-G-S.
14 MR. PRICE: And what is your mailng
15 address?
16 MS. BRIGGS: Post Offce Box 74, Shelley.
17 I would just like to speak on behalf of
18 the seniors. We have not had a raise in two years or
19 will not this next year. And I think that we need a
20 raise, yes, for the utility, but it needs to be
21 appropriate for all people. That's just mainly what I
22 want is for you to consider the seniors.
23 COMMISSIONER SMITH: Let's see if there
24 are any questions. From the company?
25 MR. SOLANDER: No, thank you.
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 15
1 to get us through this diffcult time.
2 I have a feeling that -- you know, I'd
3 like to think of Rocky Mountain Power as neighbors of
4 ours and willing to help out. And in some cases, yes,
5 they have helped out, but in other cases, i don't see
6 the help that they're -- that they should be giving us
7 in this diffcult time. Maybe they should tighten a
8 belt or -- i would almost ask -- which is beyond
9 asking -- is why don't they suspend their rate needs
1 a for a year and ask for only what we need -- what they
11 need, I should say.
12 Also, it also comes down to the ROE.
13 Right now they're given a 10.25 ROE, return on equity,
14 for their money. And as long as - in this economy,
15 they'll be able -- they can -- where else do you put
16 your money right now? The ROE is a prett nice little
17 return for them.
18 i would suggest that maybe we go back and
19 look at the ROE and ask that maybe it be tied to what
20 the prime rate is. There is some reasonable
21 expecttion of return above prime rate, but 10.25 in
22 this economy right now is really good.
23 And then along with that you have the
24 large capital project, the transmission lines that are
25 headed towards Salt Lake right now and eventually
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= SHEET 4 PAGE 13
1 COMMISSIONER SMITH: Staff?
2 MR. PRICE: No.
3 COMMISSIONER SMITH: Commissioners?
4 Thank you very much, Ms. Briggs.
5 Timothy Shurt.
6 TIMOTHY SHURTZ WAS FIRST DULY SWORN
7 MR. PRICE: Will you please state your
8 name and spell it for the record?
9 MR. SHURTZ: Timothy Shurt, S-H-U-R-T-Z.
1 a MR. PRICE: And what is your mailing
11 address?
12 MR. SHURTZ: 411 South Main, Firth, Idaho
13 83236.
14 Honorable Commissioners, I'm grateful
15 that you came to Shelley. It beats some of the long
16 drives we've done in the past, and I find this very,
17 very supportive of the community.
18 I would like to start by saying I've read
19 through much of the case, and I find that the staff
20 has done -- your staff should be applauded. They've
21 done their work very well, and I would ask that you
22 look at their findings and start that as the starting
23 point for this rate case.
24 In their findings they found some offce
25 space and some bennies and benefits and other things
= PAGE 14
1 that were freely given by Rocky Mountain Power to
2 individuals outside the state, and we were made --
3 could have been made liable for it. I would suggest
4 that it might be possible that if we, in the past,
5 have paid for those liabilties, that maybe we go back
6 and look -- further back than possibly what the staff
7 is looking at right now -- and ask the question, How
8 much have we paid over the years for goods and
9 services that really do not apply to us?
1 a I appreciate and applaud Rocky Mountain
11 Power for being generous to the local charities in
12 Salt Lake City, but charity begins at home. And this
13 is my home, and I would -- if I'm going to contribute
14 money to support charities, I want to know that it is
15 affecting me personally within my community. And
16 honestly, Utah Power -- or Rocky Mountain has, in the
17 past, donated to some of my favorite causes, and I
18 appreciate that.
19 Then what we need to do is look for --
20 once we've got a basis, let's look for deeper cuts.
21 Let's see where it is. At a time like where we are
22 right now, every business -- my wife is a
23 schoolteacher. She had to take a pay cut. Your staff
24 has had to take pay cuts. All state employees, a lot
25 of the city employees. Everybody has been making due
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_ PAGE 16
1 further out. I think it was about 800 billon or --
2 excuse me. I'm thinking federal budget -- 800 millon
3 that they were looking at for capital costs.
4 I would maybe encourage that we find a
5 mechanism so the commission can maybe intervene or
6 be -- have approval over very heavy capital costs.
7 Because at some point, if 1 -- in reading the staffs
8 recommendation, the commission basically signed on for
9 a certain amount of capital improvement, but the
1 a capital improvement exceeded the approved approval of
11 what the commission thought they had signed on to or
12 what it appeared to be - if I'm misreading wrong. I
13 hope I'm --I mean, if I'm reading this right.
14 I would suggest that for large -- again,
15 for large capital increases, that we really look at
16 some approval mechanism that should be granted to this
17 commission to say, you know, let's have a third part
18 look at this and really understand if we need this or
19 not. i mean, it just seems a little self-serving
20 that, well, geez, we've spent all this money, and now
21 we want a return on it.
22 The other thing is cost of service. I
23 would encourage that we look at the cost of service
24 issues to honestly allocate if I as a customer do
25 deserve a little bit more, it all comes out. Rather i
T&TREPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 19
1 I'd just like to applaud the staff for their work.
2 And I would encourage that whatever the outcome is,
3 the time be taken to look at these ideas and for us to
4 come up with some other ideas.
5 One other idea that I just thought of.
6 We are one of the smallest jurisdictons, our service
7 area is, for Rocky Mountain Power. Okay? While I
8 would like -- if they're going to do a rate case in
9 all their other six jurisdictions or in the six
1 a jurisdictions that they have, the states, I would ask
11 that maybe -- if we're the smallest or one of the
12 smallest, maybe let's make it so that we hold off and
13 let the other larger states adjudicate their cases and
14 then build on that to come with the best possible
15 outcome for our customers.
16 Again, I applaud the work that you and
17 the commission do, and I thank you for your time.
18 COMMISSIONER SMITH: Let's see if there
19 are any questions, Mr. Shurt.
20 For the company?
21 MR. SOLANDER: No questions. Thank you.
22 COMMISSIONER SMITH: For the staff
23 MR. PRICE: No questions.
24 COMMISSIONER SMITH: How about from
25 commissioners?
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= SHEET 5 PAGE 17
1 pay it here or I take a pay cut at work because my
2 company just had to get an increase, that would -- you
3 know, it all comes out in the wash in the end, I
4 think.
5 Also, another thing is for budgeting. I
6 would like to see -- we've been at this every two --
7 I'm getting used to coming here. We've been at this
8 every two years almost. We have another rate case
9 that comes up or another cost recovery or something.
1 a I would like to see longer term budgeting out by Rocky
11 Mountain Power.
12 I think a lot -- you know, there's things
13 you can't anticipate, but I think a lot of these rate
14 cases keep coming up. And they come in, and they get
15 about 50 percent of what they want, and then in
16 another tw years they get the other 50 percent.
17 They're always about 50 percent behind on what they
18 want.
19 I think that maybe what we need to do is
20 have some stable rates for longer than just two years
21 so that the larger businesses can budget and operate
22 in that environment, rather than -- it's like right
23 now. A lot of the businesses I know have already set
24 their budget for the year, and schools and
25 governments. And now they're going to have their
= PAGE 18
1 rates increased, and they're going to have to find
2 that money from elsewhere.
3 And where the budgets are tight right
4 now, that's going -- you know, who's going to get laid
5 off? How many kids are going to be let out of school
6 for an extra day? You know, what are the consequences
7 of not having firm rates over a longer period of time
8 to where we know, you know?
9 And if they have to recover a little bit
1 a more because of losses during this, let's say, a
11 five-year period, you know, that's all part of what
12 the commission can do is balance those things out.
13 I would also encourage us to look at what
14 little sweetheart deals are given away, to a degree,
15 in some of our rate cases. And in the past, we've --
16 you can ask for anything in a rate case almost. We
17 need to make it plain and simple and make it as easy
18 as possible on the customer.
19 Again, I appreciate you, the commission,
20 for coming here. I appreciate the hard work of the
21 staff. I was very -- I've got a minute.
22 I've been reading these things for ten
23 years. Marsha -- I mean, Commissioner Smith and I
24 have been around -- she knows how long I've been
25 around doing this. And this was very well done, and
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_ PAGE 20
1 COMMISSIONER REDFORD: No.
2 COMMISSIONER KEMPTON: No.
3 COMMISSIONER SMITH: I just had a
4 couple. I knew you'd be disappointed ifthere wasn't
5 at least one.
6 When you spoke about the rate of return
7 on equity, I'm sure you understand the difference
8 betwen having a rate of return that's authorized and
9 one that's actually achieved.
10 MR. SHURTZ: Yes. Yes, 1--
11 COMMISSIONER SMITH: So if you talk to
12 them, they --
13 MR. SHURTZ: They're about an 8.25 or
14 8.39, somewhere like that right now, from what I
15 understood.
16 COMMISSIONER SMITH: It's an interesting
17 concept to have a longer period of time between rate
18 cases, and we do have some regulated entities, mostly
19 very small water companies. In fact, we just
20 concluded a case where it had been 14 years, but the
21 increase needed in that case was like 78 percent
22 because it had been 14 years.
23 So there's a trade-off betwen having
24 smaller increments of time and possibly lower
25 increases and then waiting a long time. Because the
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
__ PAGE 23
1 planning and for a longer period.
2 COMMISSIONER SMITH: And finally, i just
3 wanted to thank you for your compliments to our
4 staff. We have a fine group of people. I would put
5 them up against any commission in this country or in
6 the world. They do a great job.
7 MR. SHURTZ: Commissioner, I've worked
8 with them for 10 years - actually, 12 years now,and
9 they don't come any better.
1 a COMMISSIONER SMITH: I agree. So thank
11 you, Mr. Shurt, for your testimony.
12 MR. SHURTZ: You're welcome.
13 COMMISSIONER SMITH: Next I need to
14 correct an oversight I made. I wanted to recognize
15 that we have Senator Geddes here with us today, and
16 it's nice to have him here and interested in our
17 proceedings.
18 Next we have LeMoyne Johnston.
19 MR. JOHNSTON: I'LL pass at this time.
20 COMMISSIONER SMITH: Robert Zie!.
21 ROBERT E. ZIEL WAS FIRST DULY SWORN
22 MR. ZIEL: If I may approach the
23 commission, I have a written statement here. I'm
24 going to add something to this because something came
25 up this morning, a new development.
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.. SHEET 6 PAGE 21
1 complaints of the customers there is, Wny didn't you
2 just give me a little bit along the way instead of
3 waiting and gettng it all at once?
4 So I appreciate your comments on the time
5 period, and there's trade-off there.
6 MR. SHURTZ: May I comment on that?
7 COMMISSIONER SMITH: You may. That's the
8 point.
9 MR. SHURTZ: I've dealt with these for a
1 a number of years. And, one, it takes a lot of time out
11 of everybody's time to do this.
12 COMMISSIONER SMITH: Right.
13 MR. SHURTZ: And the electric end of it
14 is not a -- water, I hold a water license. I have a
15 little distribution license. I have a little
16 understanding on those type of systems.
17 But it just makes good -- to me, it makes
18 good business sense. If we had to come back and say,
19 "Okay, it's been five years. We're looking at a
20 30 percent," and we adjudicated it over -- you know,
21 in the fourth year we start adjudicating the thing and
22 justifying it and taking the time, rather than trying
23 to shove it in.
24 Now, you know, that's the one thing that
25 the commission has done really well is the six-month
~ PAGE 22
1 suspended, gave them a lot of time to do a lot of
2 work, and everyone do their homework and do a great
3 job. But I think if we could stretch it out to a
4 certin point, start in the fourth year, then
5 businesses would be warned, Okay, we're looking at a
6 25 percent increase. We haven't had one in five
7 years. We've got to -- you know, everything would be
8 out on the table in the light of day.
9 COMMISSIONER SMITH: And just another
1 a thing -- I don't know if you want to respond or not --
11 on the timing. Wnen we set rates, we take a test year
12 and adjust for known and measurables, because we're
13 trying to get the rate right for what it's going to be
14 in the future.
15 And the company can't go back. And if
16 they didn't make it, if they had expenses, they don't
17 get to go back. That's called retroactive rate
18 making, and that's just gone. They don't get that.
19 So it's not like we could make up stuff from the past.
20 MR. SHURTZ: I laugh. I remember our
21 rate -- a cost recovery that we did. Occasionally,
22 that does -- retroactive, yes, is wrong. But there
23 is -- at times, if the legislature approves and the
24 commission writes a good law and they approve, I think
25 the mechanism could be put in to allow for improved
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~ PAGE 24
1 COMMISSIONER SMITH: Be sure to let
2 Mr. Price know your name and address.
3 MR. ZIEL: Oh, yes, of course. I'LL give
4 him my full name and address on the record.
5 COMMISSIONER SMITH: If you have an
6 extra, I think Mr. So lander would like one.
7 MR. ZIEL: Oh. Sure. I'LL be glad to.
8 And I have one for Mr. Fadness too.
9 I hope you'll bear with me --
1 a MR. PRICE: Can you go ahead and --
11 MR. ZIEL: Oh, yes. It's Robert E. Ziel,
12 Z-I-E-L.
13 MR. PRICE: Can you use the microphone
14 please?
15 MR. ZIEL: Oh, of course. I know about
16 microphones.
17 Robert E. Ziel, Z-I-E-L. 1523 Dove -- as
18 in the bird, D-O-V-E -- Avenue, Rigby, Idaho 83442.
19 I hope the commission will bear with me.
20 I just had a cataract operation recently, and you'll
21 notice I don't have a lens here. This eye is good,
22 but this eye is a little bit different, so my brain is
23 trying to sync up, and I'LL be getting contacts. So
24 as I read this statement, if I stumble a little bit,
25 bear with me.
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PUBLIC HEARG - 12/14/2010
ROCKY MOUNAI CHANGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 27
1 our per kilowatt hour charge is, I guess, about
2 one-third of the normal day usage.
3 Now, what Rocky Mountain Power is doing
4 here is sending out a mixed message. On one hand, the
5 utility encourages conservation. For example,
6 enclosed in one of my recent monthly bils -- let me
7 hold this up for you -- the utility, they're saying
8 conserve. Great. I'm all for that.
9 Also, they have here another one that has
1 a to do with what they call the FinAnswer program about
11 how a school district in Oneida received over
12 $25,000 --let me hold this up. This was in the Post
13 Register and other newspapers, again, showing ways to
14 conserve, and i do applaud Rocky Mountain Power for
15 that effciency.
16 But i have to ask: lNat is Rocky
17 Mountain Power doing by requesting a 15.6 percent rate
18 hike for time-of-use? They're taking away the
19 incentive for late night and early morning power
20 consumption. Think about this, ladies and gentlemen.
21 It doesn't make sense.
22 Now, if the utility is going to encourage
23 energy conservation, they have no business requesting
24 that nearly 16 percent for time-of-use. Now we
25 consumers who are environmentally and energy conscious
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1 First of all, good afternoon. I
2 appreciate the opportunity as a Rocky Mountain
3 residential customer to testify in the utilities rate
4 hike. Also, I appreciate assistance from Gene
5 Fadness, your public information offcer, who has been
6 most helpful in answering questions i have concerning
7 my testimony today.
8 Now, since time is valuable, I'LL be as
9 brief as possible. Because it can get boring
1 a sometimes.
11 Now, there are two issues here that
12 really concern me. First, Rocky Mountain Power is
13 requesting an 8.0 rate hike for residential service
14 and nearly double that amount of 15.6 percent for
15 time-of-use residential service. So time-of-use, or
16 time-of-day as it was originally known as, has been
17 around for at least three decades.
18 Now, when my wife and I moved to our home
19 in Rigby over 30 years ago, Utah Power & Light
20 Company, as the utility was known then, encouraged us
21 to sign up for time-of-day plan since we were a young
22 couple with a. baby on a tight budget. We desired to
23 keep our monthly power bill as low as possible.
24 At that time a customer service agent
25 from UP&L explained to us that by using more
F= PAGE 26
1 electricity late at night and during early morning
2 hours, we were on, i guess, what is known as peak
3 loading. He further explained that as an incentive to
4 use more power during off hours, our per kilowatt rate
5 at that time would be considerably lower. Well, that
6 made plenty of sense to my wife and me at the time.
7 We signed up for time-of-day then, and we've been on
8 that program ever since.
9 Now, the time-of-use program, as it's
1 a known today, is great. It is a win-win situation for
11 Rocky Mountain Power and its residential customers.
12 I'd like to use the term "sweet money" in reference to
13 additional revenue for Rocky Mountain Power. In other
14 words, the utility is receiving greater income as a
15 result of more residential power usage that would
16 normal be wasted during the off hours and not consumed
17 overnight.
18 Also, it should be pointed out that
19 buying peak loading should be stabilizing delayed
20 construction of a new, expensive, multimillion dollar
21 power plant, but I understand the utility is -- I
22 guess, through growth has no choice but to build
23 another plant, and I'm aware of that.
24 Now, this too is a great program for
25 residential customers such as my wife and me, because
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PAGE 28
1 are being punished for helping to even out peak
2 loading. That doesn't sound right.
3 Also too, I'd like to show you an ad, and
4 I don't have this in my statement because i just saw
5 this right before i left. Rocky Mountain Power took
6 out an ad in the Post Register, full-page ad. Okay?
7 Now, in this ad -- listen to this, Commissioners.
8 They say, and I quote, "The company's request would
9 mean an average residential would pay less than a
1 a dollar per month."
11 Gentlemen, with all due respect to your
12 statistic people, they better look at that again.
13 Let's do the math. You know, rates -- the amount of a
14 bill of a typical Idaho Rocky Mountain customer is
15 going to vary. You have a litte old widow, 800
16 square foot home, she would use 25, $30 worth. You
17 have a wealthy family in a 4,000 square foot mansion.
18 They might use 150, 200-plus. I hope I'm correct.
19 But let's just 70, $80 a month average bil. Okay?
20 1 a percent of that is $8. And what's 8
21 percent? About $6.57. So again, what's this average
22 residential customer will pay less than a dollar a
23 month? Sorry, folks. That's not true.
24 And then they condescending -- this
25 really got me -- "That's about the cost of a 32-ounce
T &T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 31
1 MR. lIEL: I agree.
2 COMMISSIONER KEMPTON: It doesn't change
3 your testimony. It's just a comment on how sometimes
4 the thinking can get topsy-turvy when you start
5 talking about square footage.
6 MR. lIEL: Okay. Well, it's just a
7 scenario, I guess, so to speak.
8 But anyway, everybody feels -- especially
9 the retiree -- and there was one gentleman that
1 a testified for tw years, I'm on Social Security and
11 that they won't be receiving an increase.
12 And I fully understand that the
13 investment -- yeah, I understand Rocky Mountain Power,
14 that they have their investment considerations. But
15 gentlemen, this ad in today's paper -- sorry. I just
16 don't buy it.
17 Again, I thank the commission. Any other
18 questions?
19 COMMISSIONER SMITH: No, I don't see
20 any. Thank you very much for taking the time to be
21 here.
22 MR. llEL: Thank you, ma'am.
23 COMMISSIONER SMITH: Even at this festive
24 season. Bruce Baxter.
25 BRUCE BAXTER WAS FIRST DULY SWORN
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= SHEET 8 PAGE 29
1 drink at a convenience store." So is Rocky Mountain
2 Power tellng me I go buy my 32-ounce Coke or Pepsi,
3 that that -- that I should sacrifice one drink for a
4 dollar? No. The average rate will be probably $6.50,
5 $7 more a month under this. So again, I'm sorry.
6 This is bogus.
7 So anyway, again, I hope that they keep
8 the time-of-day program -- time-of-use. And that 15.6
9 percent, no, I don't think they should have an
1 a increase because -- this is my opinion -- it would
11 discourage this very successful program.
12 Now, secondly -- and this has really
13 nothing to do with Rocky Mountain Power, and I address
14 this to you, lady and gentlemen of the commission. i
15 have an issue with the hearings being held at this
16 time of the year. I know and I fully understand that
17 IPUC is mandated by law to hold hearings within a few
18 months of the filing of a rate request. But folks,
19 this couldn't be - this is about the worst time of
20 the year to hold this.
21 Now, if there's any way to do so without
22 violating the law, next time may I respectfully
23 suggest that the hearings be delayed about three weeks
24 until right after New Year's in January when people
25 are more able to concentrate on utility issues.
= PAGE 30
1 And let's be honest. VVo's going to --
2 it's Christmas time. It's Kwanzaa. Our Jewish
3 friends just celebrated Hanukkah. You know, New Years
4 is coming up. People, they're not interested in
5 utility rates until they get their bil. Then they
6 say, VVoops, it's up again.
7 So I would suggest if there's any way
8 legally you can schedule January, if this should ever
9 happen again, I would respectfully suggest you do so.
1 a And I do thank you very much for listening to my
11 testimony.
12 COMMISSIONER SMITH: Mr. liel, let's see
13 if there are questions for you. Mr. Solander?
14 MR. SOLANDER: No, thank you.
15 COMMISSIONER SMITH: Mr. Price?
16 MR. PRICE: No questions.
17 COMMISSIONER SMITH: How about from the
18 commission? Commissioner Kempton.
19 COMMISSIONER KEMPTON: So, Mr. liel, just
20 one thing, and that is, the little old lady in the 400
21 square foot home, there are a lot of those people that
22 are actually in trailers, uninsulated or poorly
23 insulated. And I would suggest that in those cases,
24 the inverse is true, and they're paying more than the
25 person who has a 4,000 square foot home.
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1 MR. PRICE: Mr. Baxter, go ahead and
2 state your name for the record and spell it for the
3 record.
4 MR. BAXTER: Bruce Baxter, B-R-U-C-E,
5 B-A-X-T-E-R.
6 MR. PRICE: And what is your mailing
7 address?
8 MR. BAXTER: My Idaho mailing address is .
9 7 North 3192 East, Idaho Falls 83401.
1 a MR. PRICE: Go ahead.
11 MR. BAXTER: However, I am a Nevada
12 resident and came here for this hearing. I went out
13 of my way to come here for this hearing. I'm missing
14 some 70-degree weather I'm told.
15 MR. PRICE: Go ahead.
16 MR. BAXTER: Do you want me to give that
17 address? I'LL be glad to do that.
18 MR. PRICE: No, that's not required. Go
19 ahead and address the commission.
20 MR. BAXTER: Okay. I didn't know that
21 I'd signed up to speak.
22 COMMISSIONER SMITH: Well, you don't have
23 too if you --
24 MR. BAXTER: I'm happy to. No, I'm very
25 happy -- because after I heard some of the testimony I
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
_ PAGE 35
1 legislators I'm told and also many county
2 commissioners. I come here today at 1 :30. We have
3 one outstanding elected offcial, Senator Bob Geddes.
4 Where are the rest of the -- where the heck are the
5 rest of your elected representatives? I say "yours"
6 because I don't vote here. It just doesn't seem right
7 to me.
8 But when I check campaign
9 contributions -- and that's all public record -- I see
1 a a lot of contributions by Rocky Mountain Power and
11 their parent company, PacifiCorporation. What's up
12 with that? Inquiring minds want to know. In fact,
13 I'm really, really disappointed, and at this point I'm
14 ready to write checks to politicians, even though I
15 don't live here, that will fight this kind of whatever
16 it is that's going on.
17 Oh, by the way, that luncheon, I asked
18 myself, Who the heck is paying for that luncheon? I
19 think that the case can be made that the ratepayers
20 are going to be paying for that luncheon today. What
21 do you all think?
22 AN AUDIENCE MEMBER: Yeah. Where was it
23 at?
24 COMMISSIONER SMITH: You know,
25 Mr. Baxter, I think I announced at the beginning that
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_ SHEET 9 PAGE 33
1 thought I better get up and speak. So I did sign
2 another sheet, so I think I'm like No. 17 on that, if
3 they could take me off of that sheet.
4 COMMISSIONER SMITH: We wilL.
5 MR. BAXTER: Anyway, I'm concerned about
6 some of the things I've heard here today. I guess one
7 of the ways to summarize my testimony is to say that I
8 believe that this process has been under the radar
9 screen. In fact, I would characterize it as keeping
1 a it small and under controL. I don't understand that.
11 It just doesn~ make any sense to me.
12 There was a workshop in September that I
13 attended. It was in St. Anthony. I went there with
14 some friends. There were all of eight of us that were
15 ordinary ratepayers. There were approximately 21 or
16 22 people there. The remainder were IPUC staff and
17 Rocky Mountain Power employees. And they did identify
18 themselves when they were asked to do so, and I liked
19 that. I thought that was good of them to do that.
20 So I asked myself, Why isn't the public
21 paying attention? And a lot of it goes to the fact
22 that I don't think this is very well publicized. It
23 is a proposed rate increase of 13.7 percent, average
24 of 13.7 percent. That's a lot of money the way I look
25 at it.
;= PAGE 34
1 I'm also very concerned that tw of the
2 public hearings are in the middle of the day. Most
3 people have to work. I'LL admit, I'm a retired bum.
4 I had the time to drive here from Nevada to testify
5 today. But most people, especially the ones that can
6 least afford an electricity rate hike, are working.
7 And I guess they can go to Rexburg tonight at 7
8 o'clock if they desire.
9 I'm concerned. I didn't see --
1 a relatively litte about this in the paper. It wasn't
11 even under -- there's a place where it can be
12 advertised, I believe for free, in the Post Register,
13 which is supposed to be Eastern Idaho's leading
14 newspaper. I think it's like an events calendar. It
15 wasn't in there. If it was in there the week before,
16 I couldn't find it. I do read the Post Register
17 electronically even when I'm in Nevada. I mean, I
18 really don't get what's going on here, why this is so
19 far under the radar screen, in my opinion.
20 Earlier today, I have on good authority
21 that there was a luncheon that was given by Rocky
22 Mountain Power in Idaho Falls, and many people were
23 invited to it. I was not invited. At least as far as
24 I know, I never received an invitation.
25 At that luncheon there were many
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PAGE 36
1 it's not appropriate, you know, for callng out from
2 the audience or disrupting the proceedings, and so we
3 --
4 MR. BAXTER: I can't help myself. I'm
5 fired up.
6 COMMISSIONER SMITH: The three people who
7 will decide this case are right in front of you. This
8 is not a media event for you to grandstand to the
9 audience, so please --
10 MR. BAXTER: Oh. Well, ma'am, I don't
11 think I'm grandstanding. I think I'm telling the
12 truth.
13 COMMISSIONER SMITH: Please -- please
14 address your concerns to us.
15 MR. BAXTER: Okay. I'm addressing
16 specifically to you my concerns.
17 There was an ad in the paper today. Bob
18 Ziel talked about it. They claim in the paper that
19 it's going to cost us a 32-ounce soft drink once a
20 month. That doesn't make any sense to me.
21 I read somewhere that there are
22 approximately 72,700 customers of Rocky Mountain Power
23 that are going to be impacted by this rate -- proposed
24 rate hike. Now, let me think about that for a
25 minute. And it's also my understanding that that
.
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
_ PAGE 39
1 This whole thing about the 1 a -- somebody
2 said 10.5 percent guaranteed return on equity. I
3 thought it was closer to 10, but I could be wrong. I
4 think about that. I think on passbook savings right
5 now -- by the way, that's risk free. And 1'(1 also
6 told that that's up to 10.5 percent. They don't
7 necessarily have to meet it, but I guess if they're
8 good business men they wilL.
9 Vlat is that? Well, that's a lot of
1 a money. Right now passbook savings is paying about
11 tw-tenths of a percent. Treasury bills, i think
12 maybe one and a half. i try to stay away from them.
13 A 3D-year mortgage is 4 percent. They're going get
14 10.5 percent? Wow. Can't beat that. It sounds a
15 little bit to me like robber barons, but that's just
16 my opinion.
17 Now, I all of a sudden got interested in
18 utilty stocks. I thought, well, heck, I've heard
19 that Warren Buffet is somewhere in the mix. And what
20 did I find out? I found out that Rocky Mountain Power
21 is owned by PacifiCorp. PacifiCorp, I think, is owned
22 by MidAmerican Energy Corporation. And then there's
23 another holding company, and then Berkshire Hathaway
24 is the ultimate owner and the beneficiary of all this.
25 And I thought, hey, I'LL buy Berkshire
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= SHEET 10 PAGE 37
1 total rate -- that the total amount of dollars that
2 they'll get from that is $28 millon, or somewhere
3 betwen 27 and $28 milion. Huh. Well, if I divide
4 72,200 (sic) by $28 millon, I think I get a little
5 bit more than a soft drink once a month.
6 Now, in my opinion, a rate hike makes no
7 sense. I say that as somebody that enjoys investing
8 in energy. I'm very familiar with the short ton rate
9 for coal, Uinta Mountain CoaL. At the time of their
1 a previous rate hike tw years ago, it was $61. Today
11 it's $40. Wow. Vlat's up with that?
12 Also, natural gas. Vlen they were
13 wrting their proposal it probably was somewhere
14 around 1 a bucks. Then it dropped to about $6.72, and
15 I think today it's about $4.16. It fluctuates.
16 During the winter, natural gas goes up; in the summer,
17 it goes down. You know, so that's about 36, 37
18 percent less than what it was.
19 So coal is much less, 61 to $40. Natural
20 gas is much, much less. That makes up 79 percent of
21 the energy production by Rocky Mountain Power. Vly
22 aren't we looking at a decrease instead of an
23 increase? That makes no sense to me.
24 The other thing is there's an
25 inflationary mind-set among many people. But we're in
,. PAGE 38
1 a deflationary cycle, based on what some of my
2 investor friends claim and people that know a lot more
3 than me.
4 Well, I don't think a rate hike makes any
5 sense. I read their proposaL. That was a proposal
6 that was presented to us in a workshop in
7 St. Anthony -- I think I said that already -- in
8 September, and there were many of us that came away
9 from there feeling like it was somewhat of a sales
10 job. Obviously, they were presenting Rocky Mountain
11 Power's proposal for 13.7 percent rate hike. I didn't
12 really get the feeling that there was that much
13 concern for the ratepayers.
14 Then I did find out on the website on the
15 10th of November under Hot Topics -- which I guess I'm
16 going to assume that that's when the press release
17 was -- that there was a counterproposal. And the
18 counterproposal is, I'm going to say, roughly half of
19 what they're trying to get. I don't understand that
20 either.
21 But one thing I want to know is, why no
22 workshop to go over the counterproposal? I think
23 there would have been a lot of interesting input on
24 that. Last i checked, all of us are a lot smarter
25 than just a couple of us. Vly not get input on that?
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i= PAGE 40
1 Hathaway stock. It seems kind of crooked though now
2 that I think about it, because I don't agree with what
3 they're trying to do. But if they get away with it,
4 well, what the heck? Vly not?
5 The last time I checked -- and it's
6 probably gone up since then -- one share of Berkshire
7 Hathaway stock is $125,000. I still might try to buy
8 some. I don't know. That's a lot of money. If
9 you're feeling a litte bit short this time of year, I
1 a can understand. I think my point is, there's a way
11 that -- I'm starting to understand how warren Buffet
12 became the richest man in America.
13 I also think that Rocky Mountain Power no
14 doubt has access to some of the very best proposal.
15 writers and negotiators in the business, the very
16 best. And when I read what they're trying to do and
17 when I see what they're trying to do, it's amazing to
18 me, amazing to me. These are really super smart guys,
19 and it made me recall my experience in the military as
20 a second lieutenant going up against government
21 contractors and how it was me against truly
22 professional guys that were way, way smarter than me.
23 I'm concerned about this.
24 I'd just like to summarize my testimony
25 by saying no way that they should get a price hike.
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 43
1 MR. BAXTER: Well, thank you. I'LL try
2 not to grandstand.
3 COMMISSIONER SMITH: Thank you.
4 Bryan Searle.
5 BRYAN SEARLE WAS FIRST DULY SWORN
6 MR. PRICE: Sir, can you state and spell
7 your name for the record?
8 MR. SEARLE: Bryan Searle, B-R-Y-A-N,
9 S-E-A-R-L-E, 538 East 1250 North, Shelley.
1 a MR. PRICE: Thank you.
11 MR. SEARLE: Commissioners, I appreciate
12 you taking some time today, and I wish you a Merry
13 Christmas, even if the timing isn't right.
14 I'm a local farmer and here to tell you
15 some of my thoughts about that. I also serve on the
16 board of directors with the Idaho Farm Bureau and was
17 given somewhat of a green light to represent their
18 opposition in this rate increase as welL.
19 So as producers of the land, we
20 appreciate power. We've got to have the power. But
21 as a producer, we're price takers; we're not price
22 setters per se. And we have to take whatever comes
23 our way sometimes. We have perishable crops. And so
24 as we're producing a crop, it's hard to pass that on.
25 And I know when there's a need, then
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1 If anything, it should --
2 Oh, I forgot to mention. Those
3 transmission lines and wind energy, that's a joke.
4 Wind energy requires a subsidy 93 times greater than
5 natural gas. It is not economically viable. And the
6 argument that it's mandated by the state or federal
7 government is false. It is not mandated by the state
8 or federal government.
9 In fact, there was a senate bill that was
1 a co-sponsored by three arrant republican senators that
11 is not going to be voted on in this session and going
12 forwrd, and I'm sure that it won't. They were trying
13 to mandate 15 percent electricity generation by
14 renewable energy by the year 201 a -- or no. Excuse
15 me -- 2021. It's not going anywhere.
16 The State of Idaho has no mandate. I
17 guess if folks want to build them, I'm not going to
18 try to stop them, but this goes to much of their
19 proposal about -- that was one of the major reasons
20 that they wanted a rate hike was for wind energy, and
21 we don't -- there's no requirement for wind energy.
22 It just doesn't exist at the federal or state leveL.
23 The other thing is, thosetransmission
24 lines -- near as I can determine, those transmission
25 lines, what they want is to transport wind energy to
~ PAGE 42
1 other states. Wind energy from Idaho, that's true.
2 But why do the ratepayers have to pay for that? Wny
3 do the ratepayers have to pay for that?
4 Thank you. I'LL be glad to answer any
5 questions.
6 COMMISSIONER SMITH: Thank you,
7 Mr. Baxter.
8 Any questions, Mr. Solander?
9 MR. SOLANDER: No questions.
10 COMMISSIONER SMITH: Mr. Price?
11 MR PRICE: No questions.
12 COMMISSIONER SMITH: How about from the
13 commissioners? Commissioner Kempton.
14 COMMISSIONER KEMPTON: Mr. Baxter, just a
15 question. Wnen you talk about the states not
16 requiring wind energy, are you familar with the
17 renewable portolio standards in Oregon, Washington,
18 and California?
19 MR. BAXTER: I'm very familiar that other
20 states have that. My point is that the State of Idaho
21 doesn't, nor is there a federal mandate.
22 COMMISSIONER KEMPTON: You're absolutely
23 true. Idaho does not.
24 COMMISSIONER SMITH: We thank you very
25 much for your time and your comments.
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~ PAGE 44
1 sometimes we have to tighten a belt and figure it out.
2 And that's what I feel the State is doing right now is
3 trying to tighten the belt and figure it out.
4 I think the timing is very, very poor on
5 Rocky Mountain Power's asking for a rate increase. I
6 also think that it's not justified. I see no
7 justification there. They're profitable, and that's
8 better than what we've been many years. And so we're
9 very much opposed.
1 a The other thing, as producers we produce
11 this crop, and it has to be processed. It goes to a
12 processing plant. They also use energy. At those
13 costs -- they don't have a money tree, and so that
14 cost has to be passed on to the producer, but we have
15 no where to go to find that other than what we can
16 return on our crop.
17 And so at the time when we're tightening
18 our belt, just to let you know that we strongly oppose
19 any increase at any time until it can be truly
20 justified. And with that, that's all I've got.
21 COMMISSIONER SMITH: Let's see if there
22 are any questions. Mr. Solander?
23 MR. SOLANDER: No, thank you.
24 COMMISSIONER SMITH: Mr. Price?
25 MR. PRICE: No questions.
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
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SHELLEY, IDAHO
= PAGE 47
1 COMMISSIONER SMITH: Commissioners?
2 Thank you very much, Ms. Potter.
3 Kevin Searle.
4 KEVIN SEARLE WAS FIRST DULY SWORN
5 MR. PRICE: Grab the microphone. Please
6 state your name and spell it.
7 MR. SEARLE: Kevin Searle, K-E-V-I-N,
8 S-E-A-R-L-E, P.O. Box 514, Shelley, Idaho 83274.
9 MR. PRICE: Thank you.
10 MR. SEARLE: Thank you.
11 I appreciate being able to take just a
12 moment. Thank you to the IPUC.
13 I appreciate Rocky Mountain being here,
14 and they're getting a litte bit picked on today. I
15 don't know if that -- I do know that my company
16 appreciates what you do in lieu of supplying us power
17 and being very consistent with it.
18 I represent GPOD of Idaho. I'm the
19 general manager there, and we're just north of Shelley
20 right here. We're a fresh-pack potato facility. We
21 employ 150 employees, been in business for over 35 -
22 or 40 years, and we deal with approximately 35 plus
23 potato growers in this community here and the
24 surrounding area.
25 When it comes to crunching a little bit
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= SHEET 12 PAGE 45
1 COMMISSIONER SMITH: How about from the
2 commissioners?
3 COMMISSIONER REDFORD: No.
4 COMMISSIONER SMITH: Thank you very
5 much.
6 Nancy Potter.
7 NANCY POTTER WAS FIRST DULY SWORN
8 MR. PRICE: Good afternoon. Could you
9 please state your name and spell it for the record?
10 MS. POTTER: Yes. Nancy Potter,
11 P-O-T-T-E-R, 1030 East 800 North, Shelley 83274.
12 MR. PRICE: Thank you.
13 MS. POTTER: Thank you for letting us
14 come today.
15 It's obvious to me that the cost of
16 running a utility is expensive, and we can relate to
17 that because the cost of running a household has
18 become very costly. The cost of everything connected
19 to our everyday budgets continues to rise. Our
20 salaries, pensions, or Social Security stay at a flat
21 rate or are decreased as prices rise elsewhere.
22 Rocky Mountain Power is currently earning
23 equity of 5.7 percent. They consider that to be
24 significantly below the 10.6 percent supported by the
25 company. For those of us who receive our .05 percent
;= PAGE 46
1 on basic savings and barely one and a half on
2 investments, 5.7 percent seems enviable, and 10.6
3 percent, well, who of us wouldn't wish to receive
4 that?
5 The net price increases as requested seem
6 ludicrous in light of the economy we are now
7 experiencing. If the asked for increases are granted,
8 even the one suggested by the commission, our monthly
9 power bils will increase significantly. Then the
1 a businesses whose rates also increase will pass that
11 cost to the consumer. That means we'll be paying far
12 more than the 8 to 15 percent requested.
13 Our power rates here increase in the
14 summer as the irrigation season begins. We do not
15 pump water for irrigation at our propert, yet we pay
16 extra for that. Consequently, our power bill is
17 reduced very little during this irrigation time and
18 through the year.
19 And I just want to ask you to keep the
20 increases to a bare minimum, if at alL. Thank you.
21 COMMISSIONER SMITH: Let's see if there
22 are any questions. Mr. Solander?
23 MR. SOLANDER: No.
24 COMMISSIONER SMITH: Mr Price?
25 MR. PRICE: No questions.
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i= PAGE 48
1 of numbers -- because that's what we all do when we
2 see rate increases and how we're going to be affected
3 by those increases -- the approximate increase, if we
4 were to get -- I'm assuming by what has been said in
5 the notes and letters here that we're a large
6 industrial rate user -- that our rates would go up
7 approximately, based on 15 percent, about $10,000 a
8 year.
9 We're probably not, by any means, Rocky
1 a Mountain's largest customer, nor their smallest.
11 However, we do feel like we are a responsible
12 customer, and we as well -- I echo many of the things
13 that already have been said here.
14 Just a couple of points here. We would
15 urge Rocky Mountain to please be prudent and look at
16 everything that has been said here today when they
17 talk about and consider this rate increase.
18 I looked at the ladder as well from the
19 bottom rung to the top rung, and my company is a
20 partnership company. I report to shareholders,
21 stockholders. I know the stress and the pressure and
22 such that comes from the top down. Although we're not
23 that size of a company, for me the stress is every bit
24 as much as it is for somebody at another company
25 that's put on the line to say, What's going to be our
T&T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 51
1 539 East 1200 North, Shelley 83274.
2 This is the first time I've ever attended
3 one of these heanngs ever, and so I'm really
4 nervous. But I'd like to thank Bob liel. I really
5 enjoyed his comments.
6 I'm not a person of logistics, and I
7 don't understand big companies and how they work, but
8 I know what our area is feeling. If you're not
9 plugged into a site job, then our income in this area
1 a is not very high. We are a low-paying area. There's
11 a lot of hungry children in this part of Idaho. And
12 so many people that I know who were concerned about
13 paying their bills and how they're going to pay their
14 power bils who are living on a income because -- a
15 lower income where they don't get a raise hike because
16 they're on disabilty or they're older and they're
17 retired.
18 This is a big concern for a lot of
19 people, and they couldn't be here today because they
20 had to work. And I know a lot of people were
21 concerned. They would have liked to have come. A lot
22 of people weren't aware. They wanted to come and
23 voice their concerns, and I was here -- I'm here
24 requesting that perhaps if you scheduled a meeting in
25 January after the holidays in the evening, you know,
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= SHEET 13 PAGE 49
1 return on equity this year? I would love that our
2 company got 10 plus percent return on equity year in
3 and year out. That would make some stockholders
4 extremely happy.
5 I know that capital expenditures have to
6 be looked at on an annual basis and a projected future
7 basis. We do that at our company as welL. Vlen times
8 are lean and times are tough, we have to draw back and
9 hold down on those capital expenditures. I urge Rocky
1 a Mountain to look at everyhing that they possibly can
11 to be conservative in their measures and prudent when
12 they do this.
13 The advertsement in the paper was
14 mentioned, and I probably -- i wil admit that I don't
15 understand the numbers correctly. . But in one of the
16 graphs it showed the amount that the customers
17 currently pay, the actual cost to provide that service
18 by Rocky Mountain, and the gap, which is referred to
19 as the reason for the price increase, and it's rated
20 on cents per kilowatt hóur.
21 That gap looks like to me it's less than
22 a penny in most instances clear across the board there
23 from residential clear to Monsanto, and so I question
24 as well this enormous rate increase in order to cover
25 that gap. It doesn't appear to coincide to me.
i= PAGE 50
1 So in light of employing the number of
2 employees we do and these employees all go to their
3 homes in the evening when they're done with work, and
4 I know that I represent these employees here and their
5 ability to go home and make electrical household
6 payments, I thank you for your time and wish you happy
7 holidays:
8 COMMISSIONER SMITH: Thank you,
9 Mr. Searle. Do we have questions?
1 a MR. SOLANDER: No, thank you.
11 MR. PRICE: No questions.
12 COMMISSIONER SMITH: Questions?
13 i just want to say in electrical terms, a
14 penny is huge.
15 MR. SEARLE: So is a penny to a potato
16 grower.
17 COMMISSIONER SMITH: Yes. So we knowhow
18 big a penny is. It's huge.
19 MR. SEARLE: Thank you.
20 COMMISSIONER SMITH: Thank you for your
21 comments.
22 Lillian Jones.
23 LILLIAN JONES WAS FIRST DULY SWORN
24 MS. JONES: Lillian Jones, L-I-L-L-I-A-N,
25 J-O-N-E-S. I live across the river down here at
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¡=PAGE 52
1 there would be some people who would really like to
~ come and speak to you about the hardships that they
3 are having, and their income is never going to
4 increase.
5 So these are my concerns. And I'm really
6 happy that the people in the community are here, but I
7 think you would see a lot more if they didn't have to
8 work.
9 And those are my concerns are the people
1 a who are really struggling and their incomes aren't
11 going to go up but everything else around them is.
12 There's a lot of elderly at home. There's a lot of
13 people who are on oxygen that can't get out. And I
14 would just like you to look at our incomes and think
15 of what the people can handle.
16 COMMISSIONER SMITH: Thank you very much,
17 Ms. Jones. Any questions?
18 MR. SOLANDER: No questions.
19 MR. PRICE: No questions.
20 COMMISSIONER SMITH: Questions from the
21 commission?
22 MS. JONES: Thank you.
23 COMMISSIONER SMITH: Thank you for your
24 testimony.
25 I would like to announce that the
T &T REPORTING [phone]
PUBLIC HEARG - 12/14/2010
. ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
== PAGE 55
1 time -- in my life that's a really short time -- that
2 I have to pay that much more money.
3 And the stockholders of this company are
4 sittng back and really enjoying it. You know,
5 they're not worried. If you don't pay your utilty
6 bill, your power bill, they'll just shut you off.
7 We have an awful lot of expenses in our
8 home because my wife has diabetes. I have problems
9 that cost us lots of money in medicines. And these
10 Rocky Mountain Power people are trying to take that
11 away from us, and I don't think it's right.
12 Maybe a little increase. I'm on a
13 disability. I'm on Social Security. And for two
14 years now, a $250 check, oh, man, that went a long
15 ways. That didn't even buy enough groceries for us
16 for a month, the tw of us. And they're wanting to
17 increase 13.7 percent? Don't you think that's a
18 little steep for the people who are on a fixed
19 income? Don't you think that's a little ridiculous
20 that we have to pay that kind of money to keep a light
21 in our house, to keep a little warmth in our house,
22 and to pay for the medicines to keep alive?
23 Maybe we're better off to die. At least
24 we wouldn't have to be fighting these people. Thank
25 you.
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_ SHEET 14 PAGE 53
1 commission has scheduled an additional public hearing
2 next Monday evening, December 20 at 7:00 p.m. And you
3 may call in to that hearing. You do not even need to
4 leave your home. And we have a toll-free number to do
5 that.
6 Is there instructions on the back table,
7 Gene?
8 Okay. But we have a number. It's
9 1-800-920-7487, and then there's a participant code,
10 which.is 76373262.
11 So we will get that word out, and those
12 who weren't able to be here today or at the night
13 hearing -- I know some people have diffculty getting
14 out at night -- you are welcome to call next Monday
15 night. The commission will be in Boise, but we can
16 hear you, we can ask questions, just like we can here
17 in person. So we will have that additional hearing to
18 take care of those concerns. .
19 Mr. Johnston, did you change your mind
20 about wanting to testify? .
21 MR. JOHNSTON: Yes.
22 LEMOYNE JOHNSTON WAS FIRST DULY SWORN
23 MR. JOHNSTON: My name is LeMoyne
24 Johnston, and I live at 3700 East 17th Street, Idaho
25 Falls, Idaho.
= PAGE 54
1 I was a little reluctant of giving out my
2 addre.ss because I've been around quite a bit, and I'm
3 a little nervous about Rocky Mountain Power. I've had
4 them come and visit me, cut down my trees, and break
5 my fence, and a few other things.
6 But anyway, I really agree with the
7 statements that have been made here. It's the wrong
8 time of year to be having this. It was a poor
9 advertising, and the advertising that Rocky Mountain
1 a Power put in the newspaper is so erroneous it's
11 unbelievable.
12 I do appreciate you people being here and
13 listening to us. But you know, I've been fighting
14 this country for a long time, and I'm proud to be
15 here, and I don't want to fight the utilty company.
16 But if I have to pay more than I'm paying
17 now -- and when I moved in -- let me give you a little
18 back history. When I moved into my home, I was paying
19 about $42 a month. Now I'm lucky if I get by with
20 less than a hundred, and it's usually closer to $200,
21 a month in the same home.
22 I bought new appliances to compensate for
23 the higher usage. I've changed my heating system to
24 help reduce the cost of the power that we have to
25 use. And so it's unbelievable that in that short of
_ PAGE 56
1 COMMISSIONER SMITH: Let's see if there
2 are any questions.
3 MR. SOLANDER: No, thank you.
4 MR. PRICE: I have to ask. Mr. Johnston,
5 what year did you move into your home?
6 MR. JOHNSTON: I moved there in 1972.
7 MR. PRICE: Thank you.
8 COMMISSIONER SMITH: Questions from the
9 commissioners?
1 a So that was my question too, Mr. Price.
11 Over what period of time was the 42 to the 100 to 200,
12 and that's since '7?
13 MR. JOHNSTON: Figure the percentage.
14 COMMISSIONER SMITH: Okay. We really
15 appreciate your testimony and your attendance today.
16 MR. JOHNSTON: Thank you.
17 COMMISSIONER SMITH: That is the end of
18 persons who have signed up on the sign-up sheets to
19 testify here today. However, if you are here and did
20 not sign up but wish to make a statement, you are
21 certinly welcome to come forwrd at this time.
22 Okay. Yes, sir. Please come forwrd.
23 STEPHEN OLER WAS FIRST DULY SWORN
24 MR. PRICE: VVIl you state your name and
25 spell it, please?
ww.TandTReporting.com [phone]T&TREPORTING
PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY, IDAHO
= PAGE 59
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_ SHEET 15 PAGE 57
1 MR. OLER: Stephen, S-T-E-P-H-E-N, Oler,
2 O-L-E-R.
3 MR. PRICE: And what is your mailing
4 address?
5 MR. OLER: 758 East 1100 North, Shelley,
6 Idaho.
7 I just want to add my testimony. It
8 seems prett strongly obvious that a rate increase of .
9 this size to get a rate of return that's on the high
1 a end in this economic environment is fairly meritless.
11 I think the end ownership for Rocky
12 Mountain Power has changed hands, and the purchasers
13 should have been aware of the returns that were
14 available there at the time they purchased. They
15 should not now be trying to coerce the people of Idaho
16 to pay them a higher rate, make a strong higher rate
17 in this economy, in this environment, this economic
18 environment.
19 So I think that they also should be
20 tightening their belt, just like the people that
21 receive the electricity have to do. And that's alii
22 want to say.
23 COMMISSIONER SMITH: Thank you very much,
24 sir. Any questions?
25 MR. SOLANDER: No questions.
PAGE 58
MR. PRICE: No questions.
2 COMMISSIONER SMITH: Thank you for coming
3 forwrd.
4 All right. One more time. If there's no
5 one else who wishes to come forwrd and make a
6 statement, then this hearing will be closed. The
7 commission will reconvene the proceeding at 7:00 p.m.
8 this evening in Rexburg.
9 we want to thank you all for coming out
10 on a wet day, and we appreciate your attendance and
11 your comments. Thank you.
12 (Proceedings adjourned at 2:46 p.m.)
13 -00000-
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REPORTER'S CERTI FICATE
STATE OF IDAHO ss.
COUNTY OF BONNEVILLE
I, Crystal Hereford, CSR and Notary Public, in and
for the State of Idaho, do hereby certify:
That said public hearing was taken down by me in
shorthand at the time and place therein named and
thereafter reduced to typewriting under my direction, and
that the foregoing transcript contains a full, true, and
accurate record of said deposition.
I further certify that I have no interest in the
event of the action.WITNESS my hand and seal this 28th day ofDecember 2010.
Crystal Hereford, RPR
Idaho CSR No. SRT-937
Notary Public in and for
the State of Idaho
My commssion expires: 02-28-2014
T&TREPORTING [phone]
PUBLIC HEARG - 12114/2010
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SHELLEY, IDAHO
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belt (5)15:844:1,3,1867:
20
beneficiary (1) 39:24
benefits (1)13:25
bennies (1) 13:25
berkshire (3)39:23,25 40:
6
best (3)19:1440:14,16
better (5) 23:928:1233:1
44:855:23
betty (3) 12:8,9,12
[phone]
$10,000 - betty
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Sheet 2
PUBLIC HEARG - 12114/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO
ww.TandTReporting.com T&T REPORTING [phone]
between - drink
,
between (4) 20:8,17,2337:canal (1) 10:3 6:8,167:1,3,13 16:5,8,11,consistent (1) 47:17 dealt (1) 21:9
3 capital (8) 15:24 16:3,6,9,1718:12,1919:1721:25 construction (1) 26:20 decades (1) 25:17
beyond (2) 7:1415:8 10,1549:5,9 22:2423:5,2324:1929:14 consumed (1)26:16 december (2 8:13 53:2
big (3)50:1851:7,18 care (1)53:18 30:1831:17 32:19 46:8 52:consumer (1) 46:11 decide (1) 36:7
bil (8)25:2328:14,1930:5 case (14)4:116:207:1,12 21 53:1,15 58:7 consumers (1) 27:25 decision (2) 5:24 7:2
41:946:1655:6,6 8:1513:19,2317:818:16 commission's (1) 6:21 consumption (1) 27:20 decisions (1)5:19
billon (1) 16:1 19:820:20,21 35:1936:7 commissioner (81) 4:2,contacts (1) 24:23 decrease (1) 37:22
bils (5) 27:6 39:11 46:951:cases (7 15:4,517:1418:15,17 5:2,6,12 7:22 8:25 9:continues (1) 45:19 decreased (1) 45:21
13,14 1519:1320:1830:23 811:18,22,2412:1,2,3,5,8,contractors (1) 40:21 deep (2) 10:7,8 ..
bird (1124:18 cataract (1) 24:20 23 13:1,3 18:23 19:18,22,contribute (1114:13 deeper (1) 14:20
bit (13111:5 16:25 18:921:causes (1) 14:17 2420:1,2,3,11,1621:7,12 contributions (2) 35:9,10 definitely (1110:22
2 24:22,24 37:5 39: 1540:celebrated (1130:3 22:923:2,7,10,13,2024:1,control (1) 33:10 deflationary (1138:1
947:14,2548:2354:2 cents (1) 49:20 530:12,15,17,18,1931:2,convenience (1) 29:1 degree (1) 18:14
board (2)43:1649:22 certain (2) 16:9 22:4 19,23 32:22 33:4 35:24 36:convenient (1) 8: 11 delayed (2) 26:1929:23
bob (3) 35:3 36:17 51:4 certainly (1156:21 6,1342:6,10,12,13,14,22,corporation (1) 39:22 deliberate (2) 5:24 7:1
bogus (1129:6 change (2) 31:2 53:19 2443:344:21,2445: 1,3,4 correct (2) 23:14 28:18 deny (116:16
boise (1)53:15 changed (2) 54:23 57:12 46:21,2447:1 50:8,12,17,correctly (1)49:15 deputy (2) 5:4 7:24
bonnevile (1110:8 changes (114:14 2052:16,20,2356:1,8,14,cost (16) 11:3,716:22,23 describe (1) 5:16
boring (1) 25:9 characterize (1133:9 17 57:23 58:2 17:922:21 28:2536:1944:describes (1) 7:2
bottom (1)48:19 charge (1) 27:1 commissioners (13)4:7 1445:15,17,1846:1149:deserve (1116:25
bought (1) 54:22 ch arities (2) 14: 11,14 8:512:1 13:3,1419:2528:17 54:24 55:9 desire (1) 34:8
box (2) 12:1647:8 charity (1) 14:12 735:242:1343:11 45:2 costly (1)45:18 desired (1) 25:22
bpa (1) 10:1 check (2) 35:8 55:14 47:156:9 costs (10) 5:9 10:1,7,8,25,determine (1)41:24
brain (1) 24:22 checked (2) 38:24 40:5 commodity (1) 11:10 25,25 16:3,644:13 development (1) 23:25
break (1154:4 checks (1)35:14 community (514:25 13:couldn't (3) 29:19 34:16 diabetes (1) 55:8
brief (1) 25:9 chemicals (1) 10:24 17 14:1547:2352:6 51:19 die (1) 55:23
briggs (6) 12:8,9,12,12,16 children (1) 51:11 companies (2) 20:19 51:7 counterproposal (3) 38:difference (1) 20:7
13:4 choice (2) 8:19 26:22 company (18111:2212:24 17,18,22 different (1124:22
bruce (3131:24,2532:4 christmas (230:243:13 17:219:2022:1525:2035:country (2123:554:14 difficult (3) 6:1 15:1,7
bryan (3143:4,5,8 city (3) 9:8 14:12,25 11 39:2345:2547:1548:county (2110:835:1 difficulty (1) 53:13
bucks (1) 37:14 claim (2) 36:18 38:2 19,20,23,2449:2,754:15 couple (519:2520:425:22 directly (1) 7:4
budget (4116:2 17:21,24 clap (1)6:3 55:3 38:2548:14 directors (1) 43:16
25:22 clarify (1) 8:6 company's (1) 28:8 course (8) 10:1,7,20,2211:disabilty (2 51:16 55:13
budgeting (2117:5,10 clear (2) 49:22,23 compensate (1154:22 9,11 24:3,15 disappointed (2 20:4 35:
budgets (2) 18:345:19 closed (2) 6:25 58:6 complaints (1) 21:1 court (4) 5:19,21 6:27:5 13
buffet (2)39:1940:11 closer (2) 39:3 54:20 complex (116:20 cover (1) 49:24 discourage (1) 29:11
build (3119:1426:2241:closes (1)8:15 compliments (1) 23:3 credits (1110:1 disrupt (1) 6:4
17 co-sponsored (1)41:10 concentrate (1129:25 crooked (1) 40:1 disrupting (1) 36:2
bum (1134:3 coal (3) 37:9,9,19 concept (1) 20:17 crop (3) 43:24 44:11,16 distribution (1) 21:15
burden (1) 7:10 code (1) 53:9 concern (3) 25:12 38:13 crops (2 10:21 43:23 district (2 5:18 27:11
bureau (1)43:16 coerce (1)57:15 51:18 crunching (1147:25 diversion (2110:13,16
business (914:1311:3,8 coincide (1) 49:25 concerned (6) 33:5 34:1,current (217:10 11:4 divide (1) 37:3
14:2221:1827:2339:840:coke (1) 29:2 940:2351:12,21 currently (2) 45:22 49:17 doing (9) 4:138:2011:3,5,
1547:21 come (18)7:2210:1811:concerning (1125:6 customer (8) 16:2418:18 8 18:25 27:3,1744:2
businesses (4) 17:21,23 1017:1419:4,1421:1823:concerns (6) 36:14,16 51:25:3,2428:14,2248:10,12 dollar (4) 26:20 28:10,22
22:546:10 932:1335:245:1451:21,2352:5,953:18 customers (77:1119:15 29:4
buy (5129:231:1639:25 22 52:2 54:4 56:21 ,22 58:concluded (1120:20 21:126:11,2536:2249:16 dollars (1) 37:1
40:755:15 5 condescending (1) 28:cut (3) 14:23 17:1 54:4 donated (1) 14:17
buying (1)26:19 comes (8) 6:9 15:12 16:25 24 cuts (2 14:20,24 done (79:1613:16,20,21
C 17:3,943:2247:2548:22 connected (1)45:18 cutting (1) 5:9 18:2521:2550:3
comfortable (1) 8:20 conscious (1) 27:25 cycle (1) 38:1 door (1)7:19calendar (1) 34:14 coming (6) 17:7,1418:20 consequences (1) 18:6 D double (1)25:14
california (1) 42:18 30:458:2,9 consequently (1) 46:16 doubled (1) 10:2call (516:37:21 27:1053:3,comment (3)8:1021:6 conservation (2127:5,23 d-o-v-e (1124:18 doubles (1) 11:91431:3 conservative (1149:11 daniel (114:23 doubt (1)40:14
called (2)7:1922:17 comments (8)4:196:78:conserve (2127:8,14 date (1)8:13 dove (1)24:17
callng (1J 36:1 12 21:442:25 50:21 51:5 consider (416:9 12:2245:day (5118:6 22:8 27:2 34:2 down (7 5:2215:12 37:17came (4113:1523:2432:58:11 2348:17 58:10 48:2249:9 50:25 54:41238:8.commission (36) 4:6,8,considerably (1) 26:5 deal (1147:22 draw (1) 49:8campaign (1135:8 11,16,185:5,17,18,18,19 considerations (1) 31:14 deals (1) 18:14 drink (4) 29:1,336:1937:5
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PUBLIC HEARG - 12/14/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO,
drive (1) 34:4 25 federal (5)16:241:6,8,22 gas (4)37:12,16,2041:5 happen (2)10:6 30:9
drives (1)13:16 equity (6) 15:13 20:7 39:2 42:21 gave (1)22:1 happy (5) 32:24,25 49:4
dropped (1)37:14 45:23 49:1,2 feel (4)11:4,844:248:11 geddes (2)23:1535:3 50:652:6
due (2)14:2528:11 erroneous (1)54:10 feeling (5)15:238:9,1240:geez (1)16:20 hard (2) 18:2043:24
duly (11)8:21 12:913:623:especially (2)31:834:5 951:8 gellngs (12)8:17,21,24,hardships (1)52:2
21 31:2543:545:747:4 even (9)28:1 31:2334:11,feels (1)31:8 249:2,2,6,911:19,2112:4,harvest (1)10:25
50:23 53:22 56:23 1735:1443:1346:853:3 fence (1)54:5 7 hathaway (3)39:2340:1,7
during (6)18:1026:1,4,16 55:15 fertilzer (1)10:24 gene (2 25:4 53:7 hay (1)9:13
37:1646:17 evening (4) 50:3 51:25 53:festive (1)31:23 general (3)5:57:2447:19 headed (1)15:25
E 258:8 few (2)29:1754:5 generation (1)41:13 hear (2)7:853:16
event (1)36:8 fight (2) 35:1554:15 generous (1)14:11 heard (5)9:1410:1732:25
earlier (1)34:20 events (1)34:14 fighting (2) 54:13 55:24 gentleman (1)31:9 33:639:18
early (2)26:127:19 eventually (1)15:25 figure (4)11:744:1,356:gentlemen (5)4:3 27:20 hearing (15)4:3,105:7,15,
earn (1) 6: 14 everybody (2)14:2531:8 13 28:11 29:1431:15 17,186:48:1432:12,13
earning (1)45:22 everybody's (1)21:11 filng (1)29:18 getting (5)17:721:324:53:1,3,13,1758:6
east (6)32:943:945:1151:everyday (1)45:19 finally (1)23:2 2347:1453:13 hearings (5)29:15,17,23
153:2457:5 everyone (1)22:2 finanswer (1)27:10 give (5)7:2321:224:332:34:251:3
eastern (1)34:13 everyone's (1)5:22 find (8)13:16,1916:418:1 1654:17 heating (1)54:23
easy (1)18:17 everyhing (5)22:745:18 34:1638:1439:2044:15 given (5)14:1 15:1318:14 heavy (1) 16:6
echo (1)48:12 48:1649:1052:11 findings (2)13:22,24 34:2143:17 heck (4) 35:4,1839:1840:
economic (2)57:10,17 evidence (4)5:206:177:fine (1) 23:4 giving (2) 15:6 54:1 4
economically (1)41:5 3,14 finished (1) 8:4 glad (3)24:732:1742:4 held (1) 29:15
economy (6) 7:10 10:23 example (1127:5 fired (1)36:5 goods (1) 14:8 help (4)15:4,6 36:4 54:24
15:14,2246:657:17 exceeded (1)16:10 firm (1) 18:7 got (8)14:20 18:21 22:7 28:helped (1) 15:5
efficiency (1)27:15 excessive (1) 11:5 first (17) 4:58:21 9:10,19 2539:1743:20 44:20 49:2 helpful (1)25:6
eight (1)33:14 excuse (2 16:241:14 12:9 13:623:21 25:1,12 gotten (1)8:2 helping (1)28:1
either (1)38:20 exhibits (1)6:23 31:2543:545:747:450:government (3)40:2041:high (2)51:1057:9
elderly (1)52:12 exist (1)41:22 2351:253:2256:23 7,8 higher (3)54:2357:16,16
elected (2)35:3,5 expectation (1)15:21 firth (1J 13:12 governments (1)17:25 hike (12)25:4,1327:1834:
electric (2)4:1421:13 expenditures (3)6:1849:five (2)21:1922:6 gpod (1)47:18 6 36:24 37:6,10 38:4,11
electrical (2)50:5,13 5,9 five-year (1) 18:11 grab (1)47:5 40:2541:2051:15
electricity (4)26:1 34:6 expenses (3)6:1322:16 fixed (1)55:18 grain (6) 9:13,20,22,2410:history (1)54:18
41:1357:21 55:7 flat (1)45:20 911:15 hold (7 19:12 21:14 27:7,
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eligible (1)10:18 16 folks (3)28:2329:1841:17 grandstanding (1)36:11 holding (1)39:23
elsewhere (2) 18:245:21 experience (2) 7:14 40:19 foot (4) 28:16,1730:21,25 granted (2) 16:1646:7 holidays (2 50:7 51 :25
employ (1)47:21 experiencing (1) 46:7 footage (1)31:5 graphs (1)49:16 home (13)14:12,1325:18
employees (7) 14:24,25 explained (2)25:2526:3 football (1) 9:16 grateful (1)13:14 28:1630:21,2550:552:12
33:17 47:21 50:2,2,4 extra (3)18:624:646:16 forgot (1)41:2 great (7 10:1412:4 22:2 5.3:454:18,21 55:856:5
employing (1) 50:1 extremely (1)49:4 forms (1) 8:9 23:626:10,2427:8 homes (1) 50:3
enclosed (1)27:6 eye (2) 24:21 ,22 forward (6)7:2241:1256:greater (2)26:1441:4 homework (1) 22:2
encourage (5) 16:4,23 18:F 21,22 58:3,5 green (1)43:17 honest (1) 30:1
1319:227:22 found (3)6:20 13:2439:20 groceries (1)55:15 honestly (2) 14:1616:24
encouraged (1)25:20 facilty (1) 47:20 fourth (2)21:21 22:4 ground (1) 9:23 honorable (1)13:14
encourages (1)27:5 fact (5)20:1933:9,21 35:free (3) 8:2 34:12 39:5 group (1)23:4 hope (5) 16:13 24:9,19 28:
end (5)17:321:1356:17 1241:9 freely (1)14:1 grower (1)50:16 1829:7
57:10,11 fad ness (2) 24:8 25:5 fresh-pack (1)47:20 growers (1)47:23 horsepower (1110:17
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21 39:2241:3,4,14,20,21,fairly (1)57:10 2 guaranteed (1)39:2 hour (2) 27:1 49:20
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enjoying (1)55:4 false (1)41:7 full-page (1)28:6 741:17 household (2)45:1750:5
enjoys (1) 37:7 familar (3)37:842:16,19 fully (2) 29:1631:12 guys (4)9:14,1740:18,22 however (3)32:11 48:11
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enviable (1)46:2 16 G hand (2)7:2427:4 hungry (1)51:11
environment (4)17:22 farmer (2)9:1343:14 handle (1) 52:15
57:10,17,18 farmers (2)10:1511:11 g-e-I-I-i-n-g-s (1)9:3 hands (1)57:12 I
environmentally (1)27:favorite (1)14: 17 gap (3) 49:18,21 ,25 hanukkah (1)30:3 idaho (25)4:7,10,25 9:9,12,
ww.TandTReporting.com T&TREPORTING
Sheet 3
[phone]
drive. idaho
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PUBLIC HEARG - 12114/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO,
1911:1513:1224:1828:irrigators (1) 10:20 lead i ng (1) 34: 13 30:21 33:21,2436:1038:2,message (1) 27:4
1432:8,934:2241:1642:isn't (3) 6:17 33:20 43:13 lean (1) 49:8 23,2439:940:861:11,18,microphone (4) 8:18 9:1
1,20,2343:1647:8,1861:issue (2)7:229:15 lease (1) 9:23 20,21 62:7,12,1266:7 24:1347:5
11 63:24,2557:6,15 issues (4) 6:20 16:24 25:least (6) 11:6 20:5 26:17 lots (1) 56:9 microphones (1)24:16
idaho's (1) 34:13 11 29:25 34:6,23 55:23 loudly (114:22 mid american (1) 39:22
idea (1119:5 J leave (1) 53:4 love (1) 49:1 middle (1) 34:2
ideas (2) 19:3,4 left (2) 4:15 28:5 low (1) 25:23 might (4) 10:1814:428:18
identified (1) 4:11 j-o-n-e-s (1) 50:25 legally (1) 30:8 low-paying (1)51:10 40:7
identify (1) 33:17 january (3) 29:24 30:8 51:legislators (1) 36:1 lower (3) 20:24 26:5 51:15 miltary (1)40:19
impacted (1) 36:23 25 legislature (1) 22:23 lucky (1) 54: 19 millon (4116:237:2,3,4
important (2) 5:25 7:5 jewish (1) 30:2 lemoyne (3) 23:18 63:22,ludicrous (1) 46:6 mind (1153:19
improved (1122:25 jim (1)4:15 23 luncheon (5) 34:21 ,25 36:mind-set (1) 37:25
improvement (2) 16:9,10 job (4) 22:3 23:6 38:10 51:lens (1) 24:21 17,18,20 minds (1)35:12
incentive (2) 26:3 27:19 9 less (728:9,2237:18,19,luxury (1) 6:12 minimum (1) 46:20
income (7 11:11 26:1461:johnston (11) 23:18,1953:2049:21 54:20 M minute (3)5:1618:21 36:
9,14,1552:355:19 19,21,22,23,2456:4,6,13,letters (1) 48:5 25
incomes (2)52:10,14 16 letting (1)45:13 m-a-t-t (1) 9:2 misreading (1) 16:12
increase (25) 6:910:511:joke (1)41:3 level (1)41:22 ma'am (2131:2236:10 missing (1)32:13
3,17 17:2 20:21 22:6 29:jones (6) 50:22,23,24,24 liabilties (1) 14:5 machinery (1) 10:25 mix (1) 39:19
1031:11 33:2337:2343:52:17,22 liable (1) 14:3 mack (1)4:17 mixed (1127:4
1844:5,1946:9,10,1348:jurisdictions (3) 19:6,9,license (2)21:14,15 made (815:1414:2,323:moment (1)47:12
3,1749:19,2462:455:12,10 lieu (1) 47:16 1426:635:1940:1954:7 monday (3) 8:13 63:2,14
1757:8 justification (1) 44:7 lieutenant (1) 40:20 mailng (7 8:1 9:412:14 money (13) 14:1416:14,16
increased (1) 18:1 justified (2) 44:6,20 life (1) 66:1 13:1032:6,857:3 16:20 18:226:1233:2439:
increases (8)7:1116:15 justifying (1) 21:22 light (6) 22:8 26:19 43:17 main (1) 13:12 1040:844:1366:2,9,20
20:2546:5,7,2048:2,3 K 46:650:1 55:20 mainly (1) 12:21 monsanto (1) 49:23
increments (1) 20:24 k-e-v-i-n (1) 47:7 lillan (3) 50:22,23,24 major (1)41:19 month (9)28:10,19,2329:
incurred (1) 6:13 line (1148:25 man (2)40:1266:14 536:2037:564:19,21 65:
individuals (1) 14:2
keep (7 17:1425:2329:7 lines (4) 15:2441:3,24,25 manager (2) 5:1 47:19 1646:1955:20,21,22
industrial (1)48:6 keeping (1133:9 list (1) 8:16 mandate (3)41:13,1642:monthly (3) 25:23 27:6 46:
inflationary (1) 37:25 listen (2) 6:5 28:7 21 8
information (3) 6:19 8:7 kempton (8)4:1520:230:
listening (2) 30:1054:13 mandated (3) 29:17 41:6,months (1) 29:18
25:5 18,1931:242:13,14,22 little (27) 11:515:1616:19,7 morning (3) 23:2526:1kevin (3)47:3,4,7 mansion (1) 28:17input (2) 38:23,25 kids (1) 18:5 2518:9,1421:2,15,1524:27:19
inputs (2) 10:23,24 kilowatt (3) 26:4 27:1 49:22,2428:1530:2034:10 many (9) 18:5 34:22,25 36:mortgage (1) 39:13
inquiring (1) 35:12 37:439:1540:946:1747:1 37:2538:844:848:12 most (5) 8:20 25:6 34:2,520instances (1) 49:22 14,2564:1,3,1755:12,18,51:12 49:22kind (4) 11:13 36:1540:1
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39:17 loading (3) 26:3,19 28:2 matter (2)4:125:14 3,14,1728:5,1429:1,13kwanzaa (1) 30:2
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23 L logistics (1) 51:6 28:934:17 36:2237:9,21 38:1039:20
interests (1)6:10 I-i-I-I-i-a-n (1) 50:24 long (6) 13:1515:1418:24 means (2146:11 48:9 40:1344:545:2247:1348:
intervene (1) 16:5 ladder (1)48:18 20:2554:1455:14 measurables (1)22:12 1549:10,1864:3,966:10
intervenors (1)5:13 i ad ies (2) 4:3 27 :20 longer (5) 17:10,2018:7 measures (1) 49:11 57:12
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13,14 large (4) 15:2416:14,15 2448:1549:1052:14 meet (1) 39:7 ms (9) 12:12,1613:446:10,
investments (1) 46:2 48:5 looked (2) 48:18 49:6 meeting (1) 61:24 1347:260:2452:17,22
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irrigate (1) 10:21 law (5)6:8,12 22:2429:17,lot (26) 10:1511:1414:24 merits (1) 7:1 multimillon (1) 26:20
irrigation (3)46:14,15,17 22 17:12,13,2321:1022:1,1 merry (1)43:12 myself (3) 33:20 35:18 36:
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Sheet 4
[phone]
idaho - myself
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4 okay (12) 11:21 19:721:19 oxygen (1) 52:13 53:17 21
N 22:528:6,1931:632:20 p personally (1) 14:15 prime (2) 16:20,21
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p-o-t-t-e-r (1) 45:11
persons (1) 56:18 probably (5) 29:4 37:13name (14)4:67:218:1,23 old (2)28:1530:20 picked (1)47:14 40:648:949:1412:11 13:824:2,4 32:2 43:older (1)51:16 p.m (3153:258:7,12 place (3) 4:97:11 34:11 problems (1) 55:8745:947:653:2356:24 oler (4) 56:23 57:1,1,5 p.o (1)47:8 plain (1) 18:17.procedure (1)7:17nancy (3)45:6,7,10 once (5) 8:1 14:2021:336:pac-e-10-07 (1) 4:11 plan (1) 25:21 proceed (1) 9:7
natural (4) 37:12,16,19 41:1937:5 pacificorp (3) 4:1239:21,planning (1) 23:1 proceeding (2)5:1968:75one (31) 4:65:259:16 19:5,21 plant (3) 26:21,23 44:12 proceedings (3) 23:17 36:
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occasionally (1) 22:21 own (1)10:4 period (6) 18:7,11 20:17 44:24,2545:8,1246:5,24,quote (1) 28:8office (2) 12:1613:24 21:523:1 66:11 2547:5,949:1950:11 52:Rofficer (1) 25:5 owned (2) 39:21 ,21
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official (1) 35:3 owner (1) 39:24 1956:4,7,10,2457:358:1 radar (2) 33:8 34:19
ownership (1) 57:11 person (4) 6:1 30:2551:6 prices (3) 10:411:1046:
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Sheet 5
PUBLIC HEARG - 12114/2010
ROCKY MOUNAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO
ww.TandTReporting.com [phone]
myself - radar
T&TREPORTING
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I Sheet 6
PUBLIC HEARG - 12114/2010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO
ww.TandTReporting.com T&TREPORTING [phone]
raise - store
,
raise (517:239:22 12:18,relate (1145:16 1549:9,1854:3,966:10 session (1141:11 solander (1914:23,248:5
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I Sheet 7
PUBLIC HEARG - 1211412010
ROCKY MOUNTAI CHAGES TO ELECTRIC SERVICE SCHEDULE
SHELLEY IDAHO
ww.TandTReporting.com T&TREPORTING [phone]
street - ziel
,
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REPORTER'S CERTIFICATE
STATE OF IDAHO ss.
COUNTY OF BONNEVILLE
I, Crystal Hereford, CSR and Notary Public, in and
for the State of Idaho, do hereby certify:
That said public hearing was taken down by me in
shorthand at the time and place therein named and
thereafter reduced to typewriting under my direction, and
that the foregoing transcript contains a full, true, andaccurate record of said deposi tion.
I further certify that I have no interest in theevent of the action.
WITNESS my hand and seal this 28th day of
December 2010.
! l~. '3 ~ Lu~r¡
¿~~gÎ Hereford, RPR~..
Idaho CSR No. SRT-937
Notary Public in and for
the State of Idaho
My commission expires: 02-28-2014
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Statement to the Idaho Public Utilities Commission on
Rocky Mountain Power Company's proposed rate increases
for its Idaho consumers and scheduling of this hearing
during the year end holiday season bY:
Robert E. (Bob) Ziel
152 Dove Avenue
Rigby, ID 83442-1246
[phone]
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Good afternoon.
I appreciate the opportnity as a Rocky Mountain Power residential customer
to testify on the utility's rate hike request. Also, I appreciate assistance from Gene
Fadness, your public information officer, who has been most helpful in answering
questions I had concerning my testimony today.
Since time is valuable, I'll be as brief as possible.
There are two issues here which really concern me.
First, Rocky Mountain Power Company is requesting an 8-point-0 rate hike
for residential service and nearly double that amount at 1 5-point-6 percent for
Time of Use Residential service. Time of Use or Time of Day, as it was originally
known, has been around for at least three decades. When my wife and I moved
into our home in Rigby over 30 years ago, Utah Power & Light Company, as the
utility was known then, encouraged us to sign up for the Time of Day plan since
we were a young couple with a child on a tight budget. We desired to keep our
monthly power bills as low as possible.
A customer service agent from UP&L explained to us that by using more
electrcity late at night and durng early morning hours, we are helping to even
out power consumption with so-called "peak loading." He further explained that
as an incentive to use more power durng off-hours, our per kilowatt rate durng
that time period would be considerably lower. That made plenty of sense to my
wife and me so we signed up for the Time of Day plan. We have been on the
program ever since then.
The Time of Use Program is great! It's a win-win situation for both Rocky
Mountain Power and its residential consumers. I like to use the term "sweet
money" in reference to additional revenue for Rocky Mountain Power. In other
words, the utility is receiving greater income as a result of more residential
power usage that normally would be wasted and not consumed overnight.
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Exhibit No..:Date:~St\¿I1(1=
T &T REpORTING
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Also, it should be pointed out that by stabilizing peak loading that could delay
constrction of a new expensive multi-billion dollar power plant.
This, too, is a great program for residential consumers where our per kilowatt
hour charge is about one-third that of day usage.
Rocky Mountain Power is sending out a mixed message. On one hand, the
utility encourages conservation. For example, enclosed with one of my recent
monthly power bills was a flier where they encouraged consumers to cut winter
energy bills. Also, Rocky Mountain Power ran an ad recently in the Idaho Falls
newspaper, the Post Register, bragging about how they're helping schools and
companies upgrade lighting with more efficiency lowering costs through a
program known as "FinAnswer."
I applaud the utility for encouraging energy conservation, but now I have to
ask: What is Rocky Mountain Power doing by requesting a l5-point-6 percent
rate hike for their Time of Use Program? They are taking away the incentive for
late night and early morning power consumption. That does not make any sense.
If the utility is going to encourage energy conservation, then they have no
business requesting a 15-point-6 percent hike for the Time of Use Program.
We consumers, who are environmentally and energy conscious, are being
punished for helping to even out peak loading. That doesn't sound right.
I urge the Idaho Public Utilities Commssion not to grant Rocky Mountain
Power a rate increase for their Time of Use Program. To do so would discourage
this very successful program.
Secondly, I have an issue with public hearings being held in the middle of
December. I know and I fully understand that the IPUC is mandated by law to
hold hearngs within a few months of the filing of a rate hike request. But folks,
holding them now in the midst of the holiday season could not be at a worst
possible time of the year!
Thing about this: John & Jane Doe in Idaho are wrapped up in the holiday
season and a public hearng on a rate increase request by an electrcal utility is the
last thing on their minds right now.
If there is a way to do so without violating the law, next time I suggest that
hearngs be delayed by about three weeks and held in early Januar when people
are able to concentrate more on utility issues.
Thank you for your consideration of my testimony.
~ÎvM
Robert E. Ziel
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IDAHO
PUBLIC UTiliTIES
COMMISSION
PUBLIC HEARG
PAC-E-10-07
December 14, 2010
IF YOU WISH TO TESTIFY
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)1c-"~..PUBLIC WITNESS LIST
Case No. PAC-E-10-07 ~\...-If you wish to testify during this hearing,
please provide your name and address below:
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Name (Please PRINT)Address
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Shelley, Idaho
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IDAHO
PUBLIC UTILITIES
COMMISSION
PUBLIC HEARG
PAC-E-10-07
December 14, 2010
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PUBLIC WITNESS LIST
Case No. PAC-E-10-07
If you wish to testify during this heanng
please provide your name and address below:
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Shelley, Idaho