HomeMy WebLinkAboutICA Posthearing Brief.pdf..
B~FOR~ IDAHO PUBLIC UTILITIES C~ION
IN THE MATTER OF THE APPLICATION OF TH )
INTEOUNTAIN GAS COMPANY FOR THE APPROVAL)
OF ITS PROPOSED RATE SCHEDLE.............)
CASE NO. U-1034-88
POST HEANG BRIEF OF IDAO
CONSU AFFAIRS, INC.
At the beginning of these hearings, Mr. Harold Co Miles, representative
J~
of Intervenor, Idaho Consumer Affairs, Inco (ICA) advised the Commssion that lCA.
would not present a direct case but would reserve the right, with the Commssion' s
permssion which was granted by President Ward, to Brief the Commssion regarding
points and issues raised at the hearings which would have a direct influence and
effeat upon ICA's membership and the Residential Class austomers of Intermountain
Gas Coo (IGC) 9 some of which are:
I
We commend the company for wanting to alleviate much of the critiaism we
have heard regarding the former connect and disconnect aharges IGC has imposed on
its Residential austomers in the past and, in the main, are supportive of their
proposed new rate design, whiah in our view will enable their customers to re-
main conneated to the system during the sumer months, which should stabilize the
revenue of IGC by providing some additional needed revenue during the sumer months.
In this regard, we support Staff witness, Schunke's. Exibit No. 19 in
which he allocates the rate incre~ses t~he various classes of rGC's customers by
class of servce. We are somewhat apprehensive, however, if such a wide variation
in the cost per therm.as. he indicates in his Staff Exhibit No. 12 between the Feb-
uary and the September billings for his RS-2 proposed rate increases ,might not have
a deterring effeat on the installation of natural gas water heaters in the homes of
present and prospective residential customers. The. last thing we (rCA) want to do
is to deter residential customers from installing natural gas water heaters, but
we feel the spread of .509ll1; per therm for February to .. 70077; per therm for
September usuage is most likely to be too great. The commssion is requested to
note these facts.
ICA Brief page 1
e II e
In support of ICA' 5 position of desiring the most cost effecti veand
efficient Residential space and water heating system, particularly in Southern
Idaho, we respectfully request this Commssion to continue to recommend the use
of natural gas' for residential space heating,in view of the present rate ~
schedules for both electricity and natural gas as well as the present price of
..
12 Fuel Oil.
We make this recommendation based primarily on the information obtained
from IGC which we requested during the last phase of the hearing, which was the
relative efficiency standards for the residential use of 12 fuel oil and natural
gas, which ASHRE determned to be relatively the same, 60~0 However, there was the
annotation that now, apparantly due to new furnace designs for both oil and natural
gas, the efficiencies are 65~.At any rate, ASHRA determes the efficiencies
to be the same, which is the point we wish to make here.. In addition, upon consul-
ting individually with LPUC engineers' Sahunke, Wilmorth and Wifeld as well as
with heating consultants at the Ferdinand Metal Co. of Nampa, Idaho, the unanous
opinon of these parties was that the relative efficiencies of both 12 fuel oil and
natural gas sold in Southern Idaho were the sameo Therefore, we offer the following
computations in support of our position that where natural gas is available in
Southern Idaho, the Residential customer will receive the same number of BTU's at
less cost by using natural gas for space and water heating, all other things beingsuch as. size
equall\insulation, house size and location, the same~amly with the same life style,
wi~h heat and water pattern consumptions the same, fòr to compare otherwise would
not be a fair comparison.which we submit for your judgment:
Price of 12 Fuel Oil delivered in 500 gal lots in Nampa, Idaho on
October 8,l980 is 0978; per gal. (ASHRA states 144,000 BTU/gal)
100,000 btu/therm ~ 144,000 btu/gal = 06944 ~ x .978Ø/gal = .67916;
per therm ~ 6 5~ = .$1.0446 cost per 100,000 BTU i s
IGC Case U-l0J4-88 per David Schunke's Exibit #4, RS rate schedule
for space and water heating allowing for IGC's proposed servce credit
.56804;/therm on annualized basis : 65~ efficiency = .87391Ø/th~rm of
100,000 BTU'so
. lCA Brief page 2
. e .IPUC Case u-io06-l58, this Commssions Order ;i866 Appendi A for
Residential Rates which includes the monthly servce charge of Idaho
Power, the rate per Kil10wat hour (Kwh) is .0294 ;/kwho Using J41J
btu's/Kwh there is 29.29974 Kwh/therm of lOO,OOO btu's:
.0294; x 29.29924 ~_ 95~ efficiency = 090673;/therm cost 100,000 btu's.. .
Therefore comparative costs today, as outlined above are:
12 Fuel Oil costs $1.0446; for 100,000 Htu's of heat
-Electricity costs i.90673; for 100,000 Btu's of heat
Natural Gas costs $.87391; for 100,000 Btu's qf heat
With these high energy costs and with no reason to believe that~ they
~
will be any less expensive in the future, the pressing problem is to determe
the best way to keep the various energy costs from rising any more than absolutely
necessary. Consequently, we have advocated the use of heat pups for users of
electricity for Residential space heating. We believe, also, that the use of
heat pumps for Residential users of natural gas is very cost effective when used in
homes insulated to the same standards as electricity from R-30 to R-43 for ceilings,
especially, wherever possible l as well as double or triple glazed widows and storm
doors as well as weather stripping etc.
We call the commssion's attention to the inormation supplied lCA by
IGC,due to our production of information request, under the date of Sept. 23, 1980,
titled: Gas assisted heat pu operating cost in which they,state that according
to their ca1aulations of the energy costs for a gas assisted heat pump (using elec-
tricity to ru the pup I was told) the cost to the Hoise area customer would be
42.3; per 100,000 Btu's, (which is the equivalent of one therm of natural gas)o
Also, we wish to point out that IGC's witnåss Hedemark's ReYised ~Exibit No. ,110
Schedule 1 shows the cost per 100~OOO BTU's as 44.5;, which if the 42.3; is sub-
tracted, as mentioned above, the cost per 100,000 BTU's would have been 2.2; less.
Therefore, we very strongly recommend the commssion continue to advocate
the use of natural gas in All Southern Idaho by Residential users for home space
heating wherever they can and are on or near a gas distribution company's pipe-
line, especially if these prospective Residential customers are contemplating the
replacement of an older home space heating systemo
ICA Brief page 3
When we advo~e the use of 8_ Heat Pup in co~ction with natural gas
for Residential space heating, it is realized the use of natural gas by the cus-
tOMer will be considerably reduced which could decrease the IGCo's revenues which
is primrily why we advocate those people "who install a heat pump in connection
with their gas furnaoe also install a gas fired hot water heater.,since this ad-
ditional use of gas will compensate;to a great extent, the loss of gas consumption
..
in the home by the installation of the heat pump. In addition, we call the Com-
under date of Sept. 2), 1980
missions attention to the information supplied by IGC1to us under our production
of inormtion request, titled "Hot Water Heating-Savings with Natural Gas. and
the Estimated annual cost of $152.00 for natural gas with an efficiency of 65~
included in the cost per therm, and a cost of $146.00 per year for electricity,
or $6.00 less per year, with an efficiency of 95~ included in the cost per Kwh.
Also it should be pointed out in these comparisons that the gas cost included the
traaker reductions in Case U-10J4-9Q, but the cost computations per Kwh did not
include the new cost .of .0294; per Kwh for Residential service effective Oct. 1. 1980.
The cost per Kwh computed on the basis of the $146.00 annual usuage is .0265;, so
the newer Oct. 1st rate is .0029; higher than the rate per Kwh computed by IGC per
their September 2). 1980 document. Ths difference computed on the anual con-
sumption basis of 551) KW/yr amounts to $15.99 which is $9.99 less than the di~
ference of $6.00 the document shows.
We feel, therefore, it is cost effective for homeowners and builders to
install gas water heaters in All New homes wherever possibleo Also, for older home
owners to install a gas water heater whenever their old electric water heater needs
replacingo However, for maxum savings. we feel All gas water heaters should be
blanket wrapped, the same as Idaho Power Co. is presently doing with their electric
water heaterso This blanket wrapping of gas water heaters by All natural gas sup-
pliers operating in Idaho should be advocated by this commssion, and the same in-
stallation practices and rate base allowances be granted IGC as the other electric
utilities in Idaho under this commssion's jurisdictiono
lCA Brief page 4
e III e
There has been considerable activity by the National Oil jobbers Council
as well as the Oil Heat Institute of Southern Idaho and Ea3tern Oregon regarding
"
the subject of the most efficient and economical way to heat a Residential homet
their advertisement appearing in Southern Idaho newspapers on September 24, 1980,
Since the efficiency of 76~ is listed by them fo~a stand~rd Oil-fired Unit and
65~ foia Gas Fired Unit is contrary to the ASHRA statement that the efficiencies
of both systems are equal, as well as the opinions of the parties we have previously
quoted, it is wondered just how the institute computed the figureso Was it for a
~
New oil furace and an old gas furnaca without an electronic startero which had its
pilòtlight.,.burning all yearZ Also, had the filters been renewed on the furnaces,
or were the filters on the gas furnace in need of cleaning or replacinga Were the
homesinsulation factors the same in oil and gas heated the same: Were the degree
days the same for both types of homesZ (ICA Exhibits No.' s 1 and 2) 0 It is noted
however, the American Gas Assoaiation disputes studies made by the energy council in
various cities,andwe Dote,-thetthe council-very appropriately points out adequate
insulation would save about four times as much as the savings derived by swtching
from oil to natural gas over a twenty year period. No mention vas made of the total
savigs that could be saved if the homeowners in these cities switched from oil to
natural gas furaces with electronic starters or automatic set-back thermostats, or
if a new style Recuperative Gas Furnace were installed having the previously men-
tioned energy saving features in a well insulated houseo We realize this subject is
quite technical and, in the main, out of our realm of exprtise, but we do want to
request the commssion to take judicial notice of our exaibi ts one through five, and
seriously consider the matter of having the commssion's engineers review the mat-
erial in light of the impression we have gained from readig and studyig the sub-
ject. We feel, alsop the commssion has been justified in the past of advocating
the wider use of natural gas in Idaho and it is our request this commssion continue
to do so based upon our supporting evidence as well as additional evidence it may
acquire.
lCA Brief page 5
rCA Brief page 6
Inasmuch' as ~ have previously stated that i~sprinciPai motive is to
for Residential customers,
obtain the most value measured in dollars per BTU¡t we feel the ommssion' s alerting
the public to newer products and systems appearing on the market comes wi thin the
duties of the commssion arid should not be left entirely to suppliers of energy or
appliances and home heating systems. With this thought in mind we submit our ICA
Exibit No~ 6 regarding the vapor compression heater for Residential hot water use~
..
.~
and although it is not particularly cost effective for use with a natural gas water
heater, it is supportive of our position that natural gas is a desireab1e method ot
heating Hot water. In addition, the use of this heater is purported to save from
50~ to 64~ of the cost of electrically heating hot water, which should be noted by
this commiSsion.
IV
We feel the most prudent and economical manner the Intermountain Gas Co.
-
can operate during this period of restricted revenues and inflationary prices is
for them to reduce their '!Be1ow the Line Expenses" as much as possible. In this
connection, we note that there are items such as Spouse travel & expenses of
$ll,479 and 83 items of donations under $1,000 for a total of $10,923 which are not
separately identified which the commssion is requested to note. (FEC form 12,
page304). Whereas these are not great amounts we feel prudent management should
can
dictate that any any all cash disbursements~ctual1y affect the 'cash flow and the
financial standing of Intermountain Gas Co. as well as be viewed with disfavor by
its customers. Not all of these expenditures should be eliminated, in all probability,
but customer confidence is important to any utility company or in any business, and
lCA views with disfavor the expenditure of company funds for spouse travel and
expenses 0
Motion is made at this point the Commission take judicial notice of the
ASH studies we have referred to as well as the Form 2 FERC report of IGC, and
to accept ICA's Exibits one thru f~einco as part of the official record of this
hearing. ICA Brief page 6
Dated: October 8, 1980
e e
CERTIFICATE OF MALING
THIS is TO CERTIFY, I have this date, October 10, 1980, either hand
delivered or mailed First Class, postage prepaid, and properly addressed, the
original and seven proformed copies of this document to the Secretary of the
Idaho Public Utilities Commssion, Mrs. Myrna J. Walters, and a copy. to each
~
of the following parties of record for this case 0 '.
J 0 R. Sip10t Company Mro Melvi D. !lsager, Manager
Mr. N. Randy Smth, Attorney
P. 00 Box 27
Boise, Idaho 83707
FMC Corporation Mr 0 R. Michael Southcombe, Attorney
Clemons, Cosho & Humphry
1110 Bank of Idaho Building
Boise, Idaho 83701
Becker Industries Còrpo Mro Larry D. Ripley, Attorney
Elam, Burke, Evans, Boyd & Koontz
Po O. BOx 1559
BOise, Idaho 83701
Mro Gary D. Greer
P. o. Hox 37
Conda, Idaho 83230
Idaho Public Utili ties
commssion
Mary An Johnson
Deputy Attorney General
472 West Washington Street
BOise, Idaho 83720
Dated: October 10, 1980 ~a?f~
Natural Resources Commttee
IDAHO CONSUM AFFAIRS, INCo
ICA Brief page 7
In the~ of rece slon and dwindling resoúrces, the e icient use of fuel ~an
tÍie, Am!~ca~ d¡:n~:d;¡:;;rir ~tt:'t&':
"beaey.etlia()!:nàturàl gåssystêîu isth~.ni~s¡-L" i
~. effiçre~t :~'t1'a~..~~' e.èpiio~i~iil~~:waý-~~t~.' "'h~~ryoúi~J,~ '..
,:'-:'L ~,'., ' ~j;ri ;~;;:; e.: ~~'! ~~¡-;j'f::ti§:L:~it:, ~L¡'t;~~';:g~i:% '.' ; , \ . '
.~ ~. They"are spe,ndingmil.íein.s to ',c~Î1vince ,you. tqma,ke a)aig~ in~estme.n_t.!ri,-~ cony~~slò~to.~,~ ," .'
. ,.: ,,:,; \' "U:;~t1:' ~'f~i~ i~' ;~;ti~i'~ò~i;t'::-.~ "~::~îL:"J~fr;; . -., '.
: 'Here are the facts: . .d" .::.. ~..:d .- - ., : . .; ~;: "-'::"': '~:;,:.'o' ," .
_._._.. - -..7~
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Manufactùrers, testing their own products acco'rding to Depart~ent of EnÚgy pr&~dures. kno~' .-
. the tnit~ a~oulthe "seasonalerriciency" of home heating equipment..,-', '. " "" ... :':.~. ",:... ~:._ .,~;.d:.;~:;.,_..... " ""':,' -. ~:d.~ _~"_:. _",.~~;"":_"' /. ~.-'.-'~.
.The Federal Gôvernment Îs in'possession of these figures. Now you can examÎne them on tags which. _ ,.":_
. by law. must appear on àll new appliances.. .~' - \-- ';'.. '. - ;' c .. _. . -. _io -.. '. '.".,j
" ,~ri
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'. . "Seasonal effciency:' is ihe stan!iard accepted by indusii:y for comparinii ih~ true ,'alue "I h"me heaiinii eiiuípmeni,
\;,
\ "
- . . - . '
OIL HEAT CARRIES THE DAY WITH AN AVERAGE SEASONAL EFFICIENCY OF
76 PERCENT! Gas falls behind with an average seasonal efficiency of 6S percent.'...1. . _ I '., ,-'_ : _ .:'
Here are ihe figures for each product category: "" .Standard Oil.FiredUnit 76% ~. :
Standard Gas.Fired Unit 6~eyo '. . -~.. \. ;:j-~ -i.-: ..
Oil.Fired Wat'er Heater 54% ....~ "¡~:::)~::
. , ~i::~~:e~::;e~:::;e~. ~~~~" ,);.~.: -";i!~'!:'::~:
Independent studi~i¡ for the D~partment of Energy place the averagè season~I,dficienc)' af th¿ Eie~:;~:':c~..
tric Heat Pump at 48%. and Electric Resistance Heat29'\I.. .' ;.', ..'. ~;",;;'::.JY'. ' .'. _dc' ~...
'1,
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Not,onl,ris oil heat equipment more effcient than gas, but figures on hand at rhe Environmental
, Prot~ction Agenc)' show that the s)'stèm for processing and deih'ering heåíiitg oil is superior in' -;'
! . effdenc)' to an)' other, inclu~ing natural gas. , . ' '.'
As various fuel pricès ~eache'quiiibrium. healing iiils superior ~l\erall êfrici~n~~: will mean higsa\'i~gš"..
for you in fuel cost and home jmpró\'em~n~s. '. . ~,. .
.
, ' I ", . ..
BEFORE YOU CONVERT, CHECK THE LABELS AND COMPARE PRICES." ,
BETTER YET. . . ASK YOUR OIL DEALER' ABOUT: :..",,-, ,:' ;' i' ,
.' CON~ERVATION O,PTIONS. IF YOU DO, .WE'RE SURE YOU'LLFIND:
;YOU'RE SAFE 'WITHÔ It u:ÈÁ T'(, ,..- - - : . .1'0" ~I .. . ~ '.~'\':t. . ....~- ~ -. . .~.~; .. _..- .,.. ...=:'
.. y i~ ..:., ." rite lor more ¡nlormaiion. .-:- ' '" ~1980 National Oil Jobbers Council, 1707.H Street, NW, Washington, DC 200, . ' " , . c, ~,\:,., , ',_ . \_, .... ï. .". " 'd
'-. ". The OIL HEAT INSTITUTE' Of Southern Idaho and Eastern Oregon'; ::
,'" ~:"~ ;,-,--~,~-;,;~ ~:.,; .:..,: '. .. ,P.O, Box Í72. Boise. td~ho.8701 ':,~' ' ,-./'~-' ,.~ .~
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