20021125_328.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LA W
BILL EASTLAKE
LOU ANN WESTERFIELD
DON HOWELL
RANDY LOBB
RICK STERLING
DAVE SCHUNKE
GENE FADNESS
WORKING FILE
FROM:LISA NORDSTROM
DATE:NOVEMBER 22, 2002
RE:IN THE MATTER OF THE PACIFICORP APPLICATION FOR APPROVAL
OF CHANGES TO THE RULES AND CHARGES FOR TEMPORARY
SERVICE CONNECTION FACILITIES, CASE NO. PAC-02-
On October 3 , 2002, PacifiCorp filed an Application seeking approval of certain
changes to its Electric Service Schedule Nos. 14 and 300 and Electric Service Regulation No. 12
concerning temporary service connection facilities. The Company requested that these proposed
revisions become effective December 4, 2002. On October 29 2002, the Commission issued a
Notice of Application, Modified Procedure, and Comment Deadline in Order No. 29138.
Commission Staff was the only party to file comments by the November 21 , 2002 comment
deadline.
THE APPLICATION
PacifiCorp s Application proposed that it no longer supply temporary servIce
connection facilities in its Idaho service territory. This would close Schedule 14 to new service.
In 2001 , the Company received 334 requests for temporary power installations and 298
temporary power installations are currently in service.
DECISION MEMORANDUM
The Company based its proposal on the fact that temporary servIce connection
facilities are readily available at home improvement stores and can be obtained easily by
customers or contractors as needed. Purchasing and warehousing temporary service facilities in
order to have a supply available for lease creates unnecessary costs and an administrative burden
for the Company. Moreover, the Company does not provide temporary service connection
facilities in any other state in its service territory.Utah and Wyoming eliminated the
requirement to provide temporary service facilities in the late 1990s. PacifiCorp indicated that
neither A vista Utilities nor Idaho Power offer this service in the state of Idaho. The Company
also noted that the State of Idaho Division of Building Safety imposed new requirements for
suppliers of temporary service connection facilities on June 26, 2002, which would create
additional costs for the Company.
The majority of the Company s customers who request temporary service facilities
are contractors. PacifiCorp stated that the Company is in the process of communicating with the
Idaho contractors that it has worked with in the past to inform them of this Application. In some
areas local contractors are already supplying their own temporary services, as PacifiCorp s does
not meet their needs.
The Company also proposed to increase the $45 charge for connection and
disconnection of temporary service facilities to $85 for single phase and $115 for three-phase
service. The Company estimated that the cost of connecting and disconnecting service ranges
from $81.00 to $233., as the time ranges from one to three hours. The Company argued that
the existing charge for this service is considerably less than the cost of providing this service.
PacifiCorp further asserted that this proposed charge is consistent with what the Company
charges for this service in other jurisdictions.
STAFF COMMENTS
As a procedural matter, Staff noted that the Commission s Notice of the Application
was sent to those individuals most likely to be affected by PacifiCorp s proposed changes.
Notice was specifically sent to 54 building contractors identified by PacifiCorp with whom the
Company most often does business. A letter describing the proposed changes was also sent by
the Company to more than 150 electrical contractors who do business in PacifiCorp s Idaho
service territory. A copy of the Commission s Notice was sent to these electrical contractors as
well.
DECISION MEMORANDUM
Staffs investigation confirmed that temporary servIce connection facilities! are
readily available at home improvement stores and can be obtained easily by customers or
contractors as needed.Staff also confirmed that the Company does not provide temporary
service connection facilities in any other state in its service territory.
In addition, Staff reviewed the policies of both Idaho Power and A vista regarding
temporary service connection facilities. Neither Idaho Power nor Avista has provided temporary
service connection facilities to contractors or customers for many years. The fact that neither of
these utilities has provided these facilities for many years substantiates the argument that the
equipment is, in fact, readily available. Staff does not believe that there is any compelling reason
for PacifiCorp to continue to be required to provide these readily available facilities.
Because PacifiCorp has provided temporary service connection facilities in the past
some of these facilities remain installed at construction sites. Staff proposed that PacifiCorp be
required to allow customers and contractors who are currently using temporary facilities to
continue doing so until construction of their projects is complete. Once the projects are
complete, the facilities would be returned to the Company and retired. Staff concurred with
PacifiCorp s proposal that it not be required to provide facilities in response to any new requests.
Staff did not oppose the Company s proposal to increase the $45 charge for
connection and disconnection of temporary service facilities to $85 for single-phase and $115 for
three-phase service. Staff noted that Idaho Power and A vista both charge fees for the same
service that are higher than PacifiCorp s current fee. Idaho Power charges a temporary service
connection fee of $120 for overhead service and $140 for underground service. A vista charges a
temporary service connection fee for residential customers of $60 plus the cost of any additional
required labor or materials that will not be used in the permanent service.
Staff indicated that the estimated range of actual costs for connecting and
disconnecting service cited by PacifiCorp is accurate. Furthermore, Staff found that an increase
in the temporary service connection fee is warranted.
In sum, Staff recommended that the Commission approve PacifiCorp s request to
close Schedule No. 14 to new service. Staff also recommends the Commission approve the
I Temporary service connection facilities normally include a temporary power pole, a meter base, a main switch and
breaker panel and a limited number of electrical outlets. Temporary service connection facilities are typically
installed to provide electrical service at construction sites.
DECISION MEMORANDUM
Company s request to increase the charge for connection and disconnection of temporary service
to $85 for single-phase and $115 for three-phase service.
COMMISSION DECISION
Does the Commission wish to approve PacifiCorp s Application seeking approval of
certain changes to its Electric Service Schedule Nos. 14 and 300 and Electric Service Regulation
No. 12 as filed?
Ll ~;/L~
Lisa D. Nordstrom
M:P ACEO206 - meJDo2.doc
DECISION MEMORANDUM