20021028_303.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
RANDY LOBB
DON HOWELL
TONY A CLARK
BEV BARKER
GENE FADNESS
WORKING FILE
WELDON STUTZMAN
OCTOBER 25, 2002
PROPOSED CHANGES TO SAFETY AND ACCIDENT REPORTING RULES
CASE NO. 31-1101-0201, AND PROPOSED CHANGES TO UTILITY
CUSTOMER RELATIONS RULES, CASE NO. 31-2101-0201.
On July 23, 2002, the Commission caused to be published in the Administrative Bulletin
a Notice of Proposed Rulemaking for changes to the Commission s Safety and Accident Reporting
Rules, IDAP A 31.11.01. Those rules currently adopt by reference several national safety codes as
well as the Federal Gas Pipeline Safety Regulations. The proposed amendments update the
reference to the national safety cod~s and federal regulations to be adopted by reference. For
example, Rule 101 adopts by reference the 2002 Edition of the National Electric Safety Code.
Comments regarding the proposed rules changes were to be postmarked no later than
September 18 , 2002. The Senate and House Subcommittee for Review of Administrative Rules
reported that no objections would be made to the proposed rulemaking.
The Commission also on August 20, 2002 , caused to be published in the Administrative
Bulletin a Notice of Proposed Rulemaking for changes to the Commission s Customer Relations
Rules, IDAPA 31.21.01. The Commission s Customer Relations Rules describe conditions for a
utility to require a deposit from customers and terminate service for non-payment. The proposed
changes to Rule 101 provide additional reasons for a utility to require deposits from a residential
customer or applicant. A change proposed by Intermountain Gas Company to Rule 105 would
DECISION MEMORANDUM
change the determination of the deposit amount for customers that use gas service for space heating
only. The proposed changes to Rule 311 allow a utility to terminate service after normal business
hours if the utility is unable to access the customer s meter during normal business hours. The
changes to Rules 102 and 310 are housekeeping matters.
Written comments on the proposed changes were to be postmarked no later than
October 23, 2002. The Senate and House Subcommittees for Review of Administrative Rules again
reported that no objections would be filed to the proposed changes. Idaho Power Company and
A vista Corporation filed comments stating its support for the proposed rule changes. Intermountain
Gas filed comments supporting the rule changes, and specifically commenting on its proposal to
change Rule 105. Staff filed written comments supporting the changes except for the change to
Rule 105 proposed by Intermountain Gas Company.
In its comments, Intermountain Gas stated that space heating only customers comprise
approximately 25% of the Company s customers, but account for approximately 50% of its annual
write-offs. Intermountain Gas notes the existing rule allows for a deposit "equal to two months
average billing for a year round customer " and contends the proposed change "would allow the
Company to also collect a similar two-month deposit amount from heating-only customers." The
proposed changes allows deposits from heating customers based on the two highest months bills
however, not on an average for the year as for other customers.
Staff stated in its comments that the proposed change to Rule 105 would unfairly
penalize customers that use gas service for only space heating. If the proposed change is accepted
customers using gas service for only space heat who are required to pay a deposit would pay a much
larger deposit than other customers. A copy of Rule 105 showing the proposed change is attached
to this memorandum.
Staff recommends the Commission adopt the proposed changes to the Safety and
Accident Reporting Rules IDAP A 31.11.01. Staff recommends the Commission adopt the
proposed changes to the Customer Relations Rules except for the proposed change to Rule 105.
Commission Decision
Does the Commission wish to adopt the proposed rules for Safety and Accident
Reporting Rules, IDAPA 31.11.01 , and issue a Notice of Pending Rule in Case No. 31-1101-0201?
DECISION MEMORANDUM
Does the Commission wish to adopt the proposed rules for the Customer Relations
Rules, IDAPA 31.21.01 , and issue a Notice of Pending Rule in Case No. 31-2101-0201?
Does the Commission approve the change to Customer Relations Rule 105 proposed by
Intermountain Gas Company?
Weldon B. Stutzman
Attachment
bls!M:31-11O1-0201 2101-0201 DecMemo ws
DECISION MEMORANDUM
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PUBLIC UTILITIES COMMISSION
The Utility Customer Relations Rules
Docket No. 31-2101-0201
Proposed Rulemaking
102. OTHER DEPOSIT STANDARDS PROHIBITED -- RESIDENTIAL CUSTOMERS (RULE 102).
A utility shall not require a deposit or other guarantee as a condition of new or continued residential utility service
based upon residential ownership or location, income level, source of income, employment tenure, nature of
occupation cmnmcrcial credit lcc(J/1is race, creed, sex, age, national origin, marital status, number of dependents, or
any other criterion not authorized by these rules. Rules governing deposits shall be applied uniformly. (7 1 93)L-.l
(BREAK IN CONTINUITY OF SECTIONS)
105.AMOUNT OF DEPOSIT (RULE 105).
01. Amount Of Deposit. A deposit allowed pursuant to Rule 101 as a condition of service shall not
exceed one-sixth (1/6) the amount of reasonably estimated billing for one year at rates then in effect. For customers
who use gas service for space heating pur:poses only. the deposit shall not exceed the total of the two (2) highest
months' bills during the previous twelve (12) consecutive months adjusted for currently effective rates. This estimate
is--ffl Deposit amounts shall be based upon the use of service at the premises during the prior year or upon the type and
size of customer s equipment using the utility's service. (7 93)L-.l
02. Installment Payments Of Deposit. The utility shall provide the applicant an opportunity to pay the
deposit in two (2) installments. The applicant shall be allowed to pay one-half (1/2) ofthe deposit amount at the time
of application, with the remaining installment payable in one (1) month. (7-93)