Loading...
HomeMy WebLinkAbout20050526_1204.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY LEGAL W 0 RKIN G FILE FROM:KE ITH HE S S IN G DATE:MAY 20, 2005 RE:IDAHO POWER TARIFF ADVICE NO. 05-05; REVISED ELIGIBILITY REQUIREMENTS FOR SCHEDULE 9 SERVICE On May 16, 2005 Idaho Power Company filed Tariff Advice No. 05-05 requesting a modification to eligibility requirements for service under Schedule 9 - Large General Service. The Company s filing is attached. Typical customers on this schedule include stores, offices public buildings including schools and small industry. Current eligibility requirements specify that in order to remain a Schedule 9 customer instead of falling back to Schedule 7, customers must have a load that exceeds 3 000 kWh in three or more months of the last 12 month period. The average Schedule 7 effective rate is currently 6.7~/kWh. The average Schedule 9 effective rate is 3.7~/kWh. This substantial difference is enough to prevent some boarder-line Schedule 9 customers from participating in conservation programs or to artificially keep their loads up in an otherwise declining load situation so that they continue to qualify for Schedule 9 rates. The Company addresses these situations in its filing. The Company proposes that to qualify for Schedule 9 the 3000 kWh for three months of a year criteria remain unchanged. However, once a customer qualifies for Schedule 9 service the Company proposes that the customer only have to have a 2500 kWh load for a minimum of three months in the most recent 12 months to remain a Schedule 9 customer. This minimum 'allows for some conservation without the rate penalty of dropping to Schedule 7. It also allows for a limited load decline for any reason without dropping to schedule 7 such that customers would have no reason to artificially increase load so that they can remain a Schedule 9 customer. The Company identifies DECISION MEMORANDUM - 1 -MAY 19 2005 this solution as an "intermediate measure" and suggests that the issue may be addressed in its next general rates case filing. STAFF RECOMMENDATION Staff believes that the problems identified by the Company are real and that the Company s proposal is at least a partial solution. Staff recommends that the Commission accept the proposal and that the revised schedule be effective June 16, 2005 as proposed by the Company. COMMISSION DECISION Does the Commission accept the Company s proposal? Does the Commission want to do something else? udmemos/ldaho Power Tariff Advice 0505 DECISION MEMORANDUM - 2-MAY 19 2005 (ID An IDACORP company Tim Tatum Pricing Analyst (208) 388-5515 FAX (208) 388-6449 ttatum~idahopower.com May 16 2005 Ms. Jean D. Jewell, Secretary Idaho Public Utilities Commission O. Box 83720 Boise, 10 83720-0074 RE:Tariff Advice No. 05- Revision to Schedule 09 - Large General Service Dear Ms. Jewell: Idaho Power Company herewith transmits for filing First Revised Sheet No. 9- Also transmitted is a copy of the tariff sheet in legislative format. Through this Tariff Advice Idaho Power (the Company) seeks approval to make a minor modification to the eligibility requirement for service under Schedule 9. Schedule 9 currently requires customers to have a minimum of three billing periods in which the metered energy usage exceeds 3 000 kWh during the most recent twelve consecutive billing periods and metered demand that has not equaled or exceeded 1 000 kW more than twice during the most recent twelve consecutive billi ng periods. The Company recognizes that the current pricing for Schedules 7 and 9 has resulted in a greater economic disparity between the two schedules. As a result of this disparity, many customers who are transferred to Schedule 7 when their usage decreases below 3 000 kWh experience a significant increase in their monthly electric bills compared to the bills they received under Schedule 9. In some cases, customers whose usage decreases only slightly receive an increase in their electric bill under Schedule 7 of more than 100%. This disparity in prices has enhanced the incentive for some customers to artificially alter their electricity consumption in order to continue taking service under Schedule 9. For some customers there is an incentive to increase electricity consumption while for others there is simply a disincentive to conserve electricity. In an effort to address this issue, the Company proposes that the eligibility requirement for Schedule 9 be revised slightly to include a reduced energy threshold allowing customers who initially qualify for service under Schedule 9 to remain eligible for Schedule 9 service provided their energy usage is greater than 2 500 kWh for at least three billing periods within the most recent twelve consecutive billi ng periods. The Company views this request as an intermediate measure to address the current Schedule 7 and Schedule 9 situation. This issue and possible rate design changes involving both Schedule 7 and Schedule 9 will be explored as part of the Company s next general rate case. The Company respectfully requests that First Revised Sheet No. 9-1 become effective on June 16, 2005. If you have any questions regarding this filing, plea$e contact meat 388-5515. Sincerely, Tim Tatum Enclosures Maggie Brilz P&RS/Legal Files I.P.C. No. 27 Tariff No.1 01 First Revised Sheet No. 9- Cancels OriQinal Sheet No. 9- Idaho Power Com pany SCH EDULE 9 LARGE GENERAL SERVICE AVAILABILITY Service under this schedule is available at points on the Company s interconnected system within the State of Idaho where existing facilities of adequate capacity and desired phase and voltage are adjacent to the Premises to be served and additional investment by the Company for new transmission , substation , or terminal facilities is not necessary to supply the desired service. APPLICABILITY Service under this schedule is applicable to firm Electric Service supplied to a Customer at one Point of Delivery and measured through one meter. This schedule is applicable to Customers whose metered energy usage exceeds 3 000 kWh per Billing Period for a minimum of three Billing Periods during the most recent 12 consecutive Billing Periods and whose metered Demand per Billing Period has not equaled or exceeded 1 000 kW more than twice during the most recent 12 consecutive Billing Periods. This schedule will remain applicable until (1) the Customer fails to exceed 2 500 kWh per Billing Period for a minimum of three Billing Periods during the most recent 12 consecutive Billing Periods or (2) the Customer s metered Demand per Billing Period has exceeded 1 000 kW more than twice during the most recent 12 consecutive Billing Periods. Where the Customer s Billing Period is less than 27 days or greater than 33 days, the metered energy usage will be prorated to 30 days for purposes of determining eligibility under this schedule. Customers who do not meet the eligibility requirements for continued service under this schedule will be automatically transferred to the applicable schedule effective with the next Billing Period. New customers may initially be placed on this schedule based on estimated usage. This schedule is not applicable to standby service, service for resale, or shared service, or to individual or multiple family dwellings first served through one meter after February 9 , 1982, or to agricultural irrigation service after October 31 2004. TYPE OF SERVICE The type of service provided under this schedule is single and/or three-phase, at approximately 60 cycles and at the standard service voltage available at the Premises to be served. BASIC LOAD CAPACITY The Basic Load Capacity is the average of the two greatest non-zero monthly Billing Demands established during the 12-month period which includes and ends with the current Billing Period. BILLING DEMAND The Billing Demand is the average kW supplied during the 15-consecutive-m inute period maximum use during the Billing Period , adjusted for Power Factor. IDAHO Issued - May 16 , 2005 Effective - June 16, 2005 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company I.P.C. No. 27 Tariff No. 101 OriQinal Sheet No. 9- SCHEDULE 9 LARGE GENERAL SERVICE AVAILABILITY Service under this schedule is available at points on the Company s interconnected system within the State of Idaho where existing facilities of adequate capacity and desired phase and voltage are adjacent to the Premises to be served and additional investment by the Company for new transmission , substation, or terminal facilities is not necessary to supply the desired service. APPLICABI LlTY Service under this schedule is applicable to firm Electric Service supplied to a Customer at one Point of Delivery and measured through one meter. This service schedule is applicable to Customers whose metered energy usage exceeds 3 000 kWh per Billing Period for a minimum of three Billing Periods during the most recent 12 consecutive Billing Periods and whose metered Demand per Billing Period has not equaled or exceeded 1 000 kW more than twice during the most recent 12 consecutive Billing Periods. This schedule will remain applicable until (1) the Customer fails to exceed 2,500 kWh per Billing Period for a minimum of three Billing Periods during the most recent 12 consecutive Billing Periods or (2) the Customer s metered Demand per Billing Period has exceeded 1,000 kW more than twice durinQ the most recent 12 consecutive Billing Periods.Where the Customer s Billing eriod is less than 27 days or greater than 33 days, the metered energy usage will be prorated to 30 days for purposes of determining eligibility under this schedule. Customers whose metered energy usage does not exceed 3 000 k'JVh per Billing Period on an actual or prorated basis three or more times during the most recent 12 consecutive Billing Periods or ''hose metered demand equals or exceeds 1,000 kVV per Billing Period three times or more during the most recent 12 consecutive Billing Periods are who do not meet the eligible eligibility requirements for continued service under this schedule and will be automatically transferred to the applicable schedule effective with the next Billing Period. New customers may initially be placed on this schedule based on estimated usage. This schedule is not applicable to standby service, service for resale, or shared service , or to individual or multiple family dwellings first served through one meter after February 9 , 1982, or to agricultural irrigation service after October 31 2004. TYPE OF SERVICE The type of service provided under this schedule is single and/or three-phase, at approximately 60 cycles and at the standard service voltage available at the Premises to be served. BASIC LOAD CAPACITY The Basic Load Capacity is the average of the two greatest non-zero monthly Billing Demands established during the 12-month period which includes and ends with the current Billing Period. BILLING DEMAND The Billing Demand is the average kW supplied during the 15-consecutive-m inute period of maximum use during the Billing Period, adjusted for Power Factor.