First PacifiCorp.pdf

825 N.E. Multnomah
- 2773
Portland, Oregon 97232
[phone]
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PACIFICORP
PACIFIC POWER UTAH POWER
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UTILITiES COMrcliSSION
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November 14, 2002
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83702-5983
Attn: Jean D. Jewell
Commission Secretary
Re:GNR-02-
Requests 1 through 18
PacifiCorp (d.a. Utah Power & Light Company) hereby submits for filing an original and three
copies ofthe following data request answers in Case #GNR-02-
Informal questions should be directed to Robin Cross, Customer and Regulatory Liaison, (503)
813-7488.
Sincerely,
R~ Cr~/~
Robin Cross
Senior Analyst
Enclosures
825 E. Multnomah
Portland, Oregon 97232
[phone]
PACIFICORP
PACIFIC POWER UTAH POWER
November 14, 2002
Lisa Nordstrom
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83720
Re:Case No. GNR-02-
Requests 1 through 18
Dear Ms. Nordstrom:
Shown below is PacifiCorp s response to the Idaho Public Utilities Commission Staffs First
Production Request in the above case. Please note that PacifiCorp s response to Requests No.
through 7 and Request No. 18 is consistent with the responses provided by the other Applicants
A vista and Intermountain Gas.
Request No.1: Given the following scenario, does each of the four described outcomes
provide an accurate illustration of how a customer would be affected by both the current
moratorium and the proposed Winter Protection Program? If not, please explain the basis for
distinction and provide an illustrative example of how a customer would be affected.
Scenario. On December 1 , the customer declares inability to pay and has children under
18 in the household. The customer has a past due balance of$1O0. The customer is billed $75 in
December, $100 in January, and $125 in February for energy usage. For simplicity, interest
charges, which would normally apply, are not included in these examples.
Outcomes Under Existing Moratorium Rule 306
Customer eligible for LIHEAP The customer makes no payment from personal funds for
the months of December through February. The utility receives an Energy Assistance benefit
amount of$250 in January, which is applied to the customer s past due balance of$275 ($100
balance carried forward plus $75 bill for December and $100 bill for January.) The utility is
prohibited from disconnecting the customer s service from December through February. On
March 1, the customer has a past due balance of$150 ($25 remaining from January bill plus
$125 February bill) and is disconnected. To restore service, the customer must pay the past due
balance (or make other acceptable payment arrangements) plus a reconnect ion fee and a deposit.
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 2
Response No. la: The scenario above is an accurate illustration of how a customer
would be affected by the current moratorium.
Customer not eligible for LIHEAP The customer makes no payment for the months of
December through February. The utility is prohibited from disconnecting the customer s service
from December through February. On March 1, the customer has a past due balance of$400 and
is disconnected. To restore service, the customer must pay the past due balance (or make other
acceptable payment arrangements) plus a reconnect ion fee and a deposit.
Response No. Ib: The scenario above is an accurate illustration of how a customer
would be affected by the current moratorium.
Outcomes under proposed Winter Protection Program (WPP)
Customer eligible for LIHEAP The customer s regular level pay amount (based on
estimated annual usage plus the past due balance of$100 divided into 12 monthly installments)
is $90. The customer s monthly payment amount under the Winter Protection Program for
December, January and February is $45, one-half the regular level payment amount. The
customer pays $45 in December as agreed. The utility receives an Energy Assistance benefit
amount of$250 in January, which is applied to the customer s actual balance of$230 ($100
balance carried forward plus $75 bill for December and $100 bill for January minus the $45
payment made in December.)* The $20 credit balance is carried forward on the customer
February bill, so the customer pays $25 ($45 WPP amount minus credit of$20). After March 1
the customer must renegotiate payment arrangements. Options available include calculating a
new regular level payment amount, making special payment arrangements to payoff the balance
owing over a prescribed length of time, or paying the balance of$100 ($125 February bill minus
$25 payment) and paying future bills as they become due.
* At the customer s request, the utility may recalculate the monthly payment amount
following receipt of a LIHEAP or other "bulk" financial assistance payment.
Response No. Ie: If the customer s account balance is equal to or greater than "1/2 of
level pay , then they would still need to make their minimal monthly payment of "1/2 oflevel
pay" each month during the months of December, January and February. So in the situation
listed above, the customer would need to pay $45 rather than $25, in February (their balance in
February would be $105 or ($100 + $75 -$45 + $100 - $250 + $125) = $105). On March 1 8t their
balance would be $60 and the options available include calculating a new payment plan, special
arrangements or paying the $60 balance and paying future bills as they become due.
Beginning Balance
December 75.
December
January $100.
January
February 125.
February
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$ 100.
$ 175.
$ 130.
$ 230.
$ (20.00)
$ 105.
$ 60.
45.
$ 250.
45.
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 3
The following is an example/description of the scenario listed above:
Customer eligible for LlHEAP.The customer s regular level pay amount (based on
estimated annual usage plus the past due balance of $1 00 divided into 12 monthly installments)
is $90. The customer s monthly payment amount under the Winter Protection Program for
December, January and February is $45, one-half the regular level payment amount. The
customer pays $45 in December as agreed. The utility receives an Energy Assistance benefit
amount of$250 in January, which is applied to the customer s actual balance of$230 ($100
balance carried forward plus $75 bill for December and $100 bill for January minus the $45
payment made in December.)* A $20 credit balance remains after applying the LIHEAP benefit
amount to the actual balance owing. Because the customer has a credit balance, the customer
does not have to make a WPP payment of$45 for January. In February, the customer makes the
$45 WPP payment, leaving a balance owing of$60 ($125 February bill minus $20 credit balance
minus $45 payment). After March 1, the customer must renegotiate payment arrangements.
Options available include calculating a new regular level payment amount, making special
payment arrangements to pay off the $60 balance owing over a prescribed length of time, or
paying the balance and paying future bills as they become due.
* At the customer s request, the utility may recalculate the monthly payment amount
following receipt of a LIHEAP or other "bulk" financial assistance payment.
Customer eligible for LIHEAP but fails to make payment.The customer s regular level
pay amount (based on estimated annual usage plus the past due balance of$1O0 divided into 12
monthly installments) is $90. The customer s monthly payment amount under the Winter
Protection Program for December, January and February is $45 , one-half the regular level
payment amount. The customer fails to make the initial $45 payment in December as agreed and
the utility has not yet received Energy Assistance benefit payment on behalf of the customer.
The customer fails to respond to 7 day and 24 hour notices from the utility and is disconnected.
The customer pays the $45 owing under the WPP agreement and service is restored. The utility
includes the reconnection fee on the January bill and waives collection of a deposit. The utility
receives an Energy Assistance benefit amount of $250 in January, which is applied to the
customer s actual balance of $250 ($100 balance carried forward plus $75 bill for December, the
$100 bill for January, and a $20 reconnection fee minus the $45 payment made in December.
) *
The customer pays $45 in February. After March 1 , the customer must renegotiate payment
arrangements. Options available include calculating a new regular level payment amount
making special payment arrangements to pay off the balance owing over a prescribed length of
time, or paying the balance of$80 ($125 February bill minus $45 payment) and paying future
bills as they become due.
* At the customer s request, the utility may recalculate the monthly payment amount
following receipt of a LIHEAP or other "bulk" financial assistance payment.
Response No. Id: When service is disconnected in December, the customer would be
able to reconnect service for the missed payment of $45, however the deposit amount would not
be waived, the deposit and reconnection fee would be added to the January bill.
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 4
After March 1 , the customer must renegotiate payment arrangements. Options available
include calculating a new regular level payment amount, making special payment arrangements
to pay ofIthe balance & deposit owing over a prescribed length oftime, or paying the balance of
$80 + the deposit balance and paying future bills as they become due.
* At the customer s request, the utility may recalculate the monthly payment amount
following receipt of a LIHEAP or other "bulk" financial assistance payment.
eginning BalanceDecember $ 75.
Customer disconnected for failure to pay $45
Customer is reconnected for $45, utility bills the reconnect & depositDecember $ 45.
(reconnect fee billed) $ 20.January $100.
January
February
February
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45.
130.
150.
250.
250.
125.
80.
125.
Customer not eligible for LIHEAP.The customer does not qualify for the WPP and must
pay bills as they become due. Other payment arrangement options are available. The customer
regular level pay amount (based on estimated annual usage plus the past due balance of$100
divided into 12 monthly installments) is $90. Alternatively, the customer may negotiate a special
payment arrangement tailored to his or her particular circumstances. The utility may disconnect
service if the customer fails to pay bills as they become due or to keep a payment arrangement.
If disconnection occurs, the customer must pay the past due balance plus a reconnection fee and
a deposit.
Response No. Ie: The scenario above is an accurate illustration of how a customer
would be affected by the WPP.
Request No.2: In the Application at page 2, eligibility for the proposed Winter
Protection Program is defined as "any residential customer who declares that he or she is unable
to pay for utility service during the specified months of December, January and February and
whose household qualifies for energy assistance from a local Community Action Agency . Is
the reference to "energy assistance from a local Community Action Agency" meant to generally
apply to any financial assistance provided through a local Community Action Agency for the
purpose of paying energy bills, including Project Share? Alternatively, should this phrase be
more narrowly construed as eligibility to participate in the Low Income Home Energy Assistance
Program (LIHEAP)?
Response No.2: The reference to "households who qualify for energy assistance from a
local Community Action Agency" is meant to apply to a customer whose income levels meet
those established to qualify for energy assistance. The intent was to follow the percentage that is
set for the state ofIdaho.
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 5
Request No.3: Is it the intention of the Applicants that eligibility for participation in the
proposed Winter Protection Program be based on State ofIdaho income criteria established for
LIHEAP, which may vary from year to year?
Response No.3: Yes
Request No.4: In the Application at page 5, the statement is made that "Termination of
service may occur if customers do not participate in the Winter Protection Program through
establishing monthly payments with the exception of special dispensation customers under
medical emergency' designation . Is the reference to a medical "exception" based on the
requirements of Rule 308 of the Utility Customer Relations Rules? Ifnot, please provide further
explanation of how the utilities intend to provide special dispensation in cases of medical
emergencies.
Response No.4: Yes, the reference to a medical "exception" is based on the
requirements of Rule 308 ofthe Utility Customer Relations Rules.
Request No.5: Rule 308 of the Utility Customer Relations Rules provides for a 30-day
extension for payment. At the utility s option, another 30-day extension may be granted. What
criteria will be used to determine whether to grant this second medical extension? Will the
criteria differ during the winter heating season as opposed to any other time of year? If a
customer receives a full 60-day medical extension but the same medical conditions exist at the
end of the 60 days, will further extensions be granted? Ifnot, why not? If so, what criteria will
be used to determine whether further extensions should be granted?
Response No.5: The criteria to grant a second medical extension will be the same as it
is under the present rules, and would be handled on a case by case basis regardless ofthe time
year. We will continue to operate as we currently do under Rule 308.
Request No.6: Applicants have requested temporary exemption from Rule 306.01-06.
Would Applicants be opposed to maintaining the part of the current moratorium that prohibits
disconnection of customers who are infirm? If so, why?
Response No.6: Yes. Customers who are infmn would be handled under the parameters
of Rule 308.
Request No.7: The proposed Winter Protection Program will exclude customers who do
not meet LIHEAP income eligibility criteria. What payment options will be available for the
working poor, defined as those customers who fall between -H3% 150% and 200% of the
Federal Poverty Guidelines? Will any special consideration be provided to these customers?
so, please describe.
Response No.7: Customer arrangements are negotiated on a case by case basis taking
into consideration many factors and customer situations, such as payment history, date of last
payment and number of broken arrangements. PacifiCorp currently offers the following types of
arrangements.
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 6
Time Payment Plan = Current bill + one twelfth of the account arrears monthly.
Equal Time Payment plan, same as Time Payment Plan using a levelized monthly amount.
For twelve months.
Short term arrangements ( where the customer pays partial payments over a set period of
time)
Customers experiencing financial difficulties and extenuating circumstances may eb
offered additional payment options, including referral to agencies such as Red Cross, Salvation
Army, or referral to religious or other organizations.
Request No.8: For each Applicant, please provide the number of residential customers
served at the end of the calendar year for 1999,2000 and 2001. For Avista, please provide a
further breakdown of customers by the following categories: electric only, gas only, gas and
electric combined.
Response No.8: At March 1999 the number of residential customers served by the
Company in Idaho was 42 600. At March 2000 the number of residential customers served by
the Company in Idaho was 43 661. At March 2001 the number of residential customers served
by the Company in Idaho was 44,435.
Request No.9: For each Applicant, please provide the number of residential customers
served at the end of the calendar year for 1999, 2000 and 2001 who were on a Level Payment
Plan. For Avista, please provide a further breakdown of customers by the following categories:
electric only, gas only, gas and electric combined.
Response No.9: PacifiCorp tracks information on a fiscal year basis, with the fiscal year
ending March 31. Information is not available for the 1999-2000 fiscal year within the short time
frame for this data request. At March 2001 the number of residential customers on a level
payment plan was 2 895. At March 2002 the number of residential customers on a level payment
plan was 2941.
Request No. 10: For each Applicant, please provide the total number of residential
customers who declared eligibility for protection from disconnection during the moratorium for
the 1999-2000 2000-01 and 2001-02 heating seasons. For Avista, please provide a further
breakdown of customers by the following categories: electric only, gas only, gas and electric
combined.
Response No. 10: PacifiCorp tracks information on a fiscal year basis, with the fiscal
year ending March 31. Information is not available for the 1999-2000 fiscal year within the
short time frame for this data request. At March 2001 the number of moratorium customers was
536. At March 2002 the number of moratorium customers was 409.
Request No. 11: For each Applicant, please provide the number of residential customers
served at the end of the calendar year for 1999,2000 and 2001 who declared eligibility for
protection from disconnection during the moratorium and were on a Level Payment Plan or a
Winter Payment Plan. (Please list each type of plan separately.) For Avista, please provide a
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 7
further breakdown of customers by the following categories: electric only, gas only, gas and
electric combined.
Response No. 11: PacifiCorp tracks information on a fiscal year basis, with the fiscal
year ending March 31. Information is not available for the 1999-2000 fiscal year within the
short time frame for this data request. At March 2001 the number of customers on a level or
equal pay plan was 3 and the number of customers on a winter payment plan was O. At March
2002 the number of customers on a level or equal pay plan was 2 and the number of customers
on a winter payment plan was 1.
Request No. 12: Ofthose customers identified in the response to Request No. 11 above,
how many received a LIHEAP benefit? How many received fmancial assistance from Project
Share?
Response No. 12: Per the clarification received November 7, 2002, This response is
based on the customers identified in No.1 O. PacifiCorp does not differentiate between LIHEAP
and Project Share payments. During 2000-2001 there were 27 of these customers that received
energy assistance, 2001-2002 33 customers received assistance.
Request No. 13: For each Applicant, please provide the total number of customers who
declared eligibility for protection from disconnection during the moratorium for the 1999-2000
2000-01 and 2001-02 heating seasons and made no payments during the months of December,
January and February. For A vista, please provide a further breakdown of customers by the
following categories: electric only, gas only, gas and electric combined.
Response No. 13: PacifiCorp tracks information on a fiscal year basis, with the fiscal
year ending March 31. Information is not available for the 1999-2000 fiscal year within the
short time frame for this data request. The number of customers who declared protection during
the heating season and made no payments during December 2000 through February 2001 was
177. The number of customers who declared protection during the heating season and made no
payments during December 2001 through February 2002 was 101 customers.
Request No. 14: For each Applicant, please provide the total number of customers who
declared eligibility for protection from disconnection during the moratorium for the 1999-2000,
2000-01 and 2001-02 heating seasons and were disconnected for non-payment the following
March, April or May. (Please list each month separately.) For Avista, please provide a further
breakdown of customers by the following categories: electric only, gas only, gas and electric
combined. Please also provide the total amount owing at the time of disconnection for each
month.
Response No. 14: PacifiCorp tracks information on a fiscal year basis, with the fiscal
year ending March 31. Information is not available for the 1999-2000 fiscal year within the
short time frame for this data request. Information for the 2000-2001 and 2001-2002 fiscal years
is shown below:
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 8
2000-2001
March April May23 37
March $11 886
April $21 125
May $4 970
2001-2002
March April May
March $2 776
April $4 654
May $5,122
Request No. 15: Ofthose customers identified in the response to Request No. 13, how
many were subsequently reconnected within 10 days of disconnection? For Avista, please
provide a further breakdown of customers by the following categories: electric only, gas only,
gas and electric combined.
Response No. 15: The information is shown below:
2000-2001
March April May13 21
2001-2002
March April May
Request No. 16: Of those customers identified in the response to Request No. 13, how
many did not reestablish service and had made no payment 90 days after disconnection? For
A vista, please provide a further breakdown of customers by the following categories: electric
only, gas only, gas and electric combined. Please also provide the total amount owing 90 days
after disconnection for each month. What percentage of total residential write offs does this
represent for the same time period?
Response No. 16: The information is shown below.
2000-2001
5 customers
814.
2001-2002
27 customers
$19 858.39
We do not have the percentage of total residential write otIs that this represents readily available.
Request No. 17: For each Applicant, please identify the total amount that the Company
received in LIHEAP benefits for Idaho customers during the 1999-2000,2000-01 and 2001-
heating seasons. For each Applicant, please identify the total amount received in Project Share
payments during the 1999-2000 2000-01 and 2001-02 heating seasons. For Avista, please
provide a further breakdown of customers by the following categories: electric only, gas only,
gas and electric combined.
Response No. 17: Information prior to 2000-2001 is not readily available.
LIEAP dollars only = 2000-2001 , $366,317.00 1 145 customers
2001-2002, $489 534.00 1 150 customers
Request No. 18: At the conclusion of the Winter Protection Program pilot, what criteria
should be used to judge whether it was successful?
Lisa Nordstrom, Deputy Attorney General
GNR-02-
November 14, 2002
Page 9
Response No. 18: The intent of proposing the pilot was to reduce the balance owing and
number of disconnections in the spring and to help customers to establish regular monthly
payments. We should be tracking information to show that the pilot does reduce balances as of
March 1 , minimize the number of accounts that are disconnected and that customers have
established regular monthly payments.
What data should be collected by each utility and reported to the Commission to aid in its
evaluation of the pilot?
Each utility should track the following information.
~ #
and % of Customers that participated in the WPP during December, January and February
~ #
and % of Customers that participated in the WPP that were disconnected for not paying
their monthly minimum during December, January and February
~ #
and % of Customers that participated in the wpp that were disconnected during the months
of March and April (compared to the number ofcustotners that participated in Moratorium
the previous year and were disconnected in March or April)
~ #
and % of Customers that participated in the WPP that made their monthly minimum
payment during December, January and February
Balance of the accounts participating in the WPP as of December 1 , January 1 , February
and March 1.