20020909_260.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONY A CLARK
DON HOWELL
DA VE SCHUNKE
KEITH HESSING
RANDY LOBB
LYNN ANDERSON
GENE FADNESS
WORKING FILE .
WELDON STUTZMAN
SEPTEMBER 5, 2002
CASE NO. IPC-02-09; APPLICATION OF IDAHO POWER COMPANY
TO REVISE DEPOSIT REQUIREMENTS IN SCHEDULES 24 AND 25
(IRRIGATION CUSTOMERS)
On August 20, 2002, Idaho Power Company filed an application requesting approval
to revise the deposit requirements in Schedules 24 and 25 for electric service to irrigation
customers.Currently those schedules allow the Company to collect a deposit from new
customers with no credit history, customers with a history of late payments, customers for whom
an order for relief has been entered under bankruptcy laws, or for whom a receiver has been
appointed in a court proceeding. The Company proposes to revise the deposit requirements, and
asserts its proposed revisions will be fairer to customers while furthering the purpose of
protecting the Company against losses from unpaid irrigation bills.
Schedules 24 and 25 currently allow the Company to collect a deposit from
customers who have two or more late payments of $100 or more during a 12-month period.
Idaho Power proposes to change the criteria to allow a deposit from customers having two or
DECISION MEMORANDUM
more reminder notices for unpaid balances of $100 or more during a 12-month period. Because
more customers make late payments than receive reminder notices, the change would allow the
collection of deposits from fewer customers. The second change proposed by Idaho Power
relates to deposits based on specific installations during previous years. Rather than determine
the deposit amount based on the use during the previous year, the Company proposes to base the
deposit on the size of the pumps connected for service. The Company explains that the past use
of a pump is not necessarily indicative of the use for the upcoming year, since crop rotation and
weather conditions may be a larger factor in determining electric use during the upcoming
season.
Idaho Power asserts that its proposed changes are intended to be dollar neutral in the
aggregate. The Company asks that the revisions be implemented for the 2003 irrigation season.
Staff recommends that the application of Idaho Power Company to modify deposit
requirements in Schedules 24 and 25 be processed by modified procedure.
Commission Decision
Should the application of Idaho Power Company to revise the deposit requirements
in Schedules 24 and 25 be processed by modified procedure?
---",
Weldon Stutzman
Vld/M:IPCEO209 - ws
DECISION MEMORANDUM