20070409_1879.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:BRYAN LANSPERY
DATE:APRIL 6, 2007
RE:IDAHO POWER TARIFF ADVICE NO. 07-02; REVISION TO
SCHEDULE 98.
Idaho Power Company (Idaho Power) has submitted revisions to its Schedule 98 , which
sets forth the terms of the Residential and Small Farm Energy Credit (Credit). The Credit is the
result of negotiated Residential Exchange Program (REP) Settlement Agreements entered into
between the Bonneville Power Administration (BPA) and each of the 6 investor-owned utilities
within Idaho, Washington, Oregon, and Montana. The tariff revisions Idaho Power propose
pertain to: 1) including certain long-term care fac~lities as eligible recipients of the Credit, and 2)
revising the annual billing period used to calculate the credit that is issued to agricultural
customers in December.
Section 5(c) of the Northwest Power Act established the REP (Northwest Power Act
9839c(c)). Under the REP, a utility theoretically exchanges its assumed high cost power for low
cost power produced by BP A. This results in a monetary benefit to the utility, which is directly
passed through to its residential and agricultural customers. The REP Settlement Agreements
define the eligible residential loads, which Idaho Power identifies as customers taking service
under Schedule 1. The revised tariff would also include residential customers taking service
under Schedules 4 and 5 , the Residential Service Energy Watch Pilot Program and Residential
Service Time-of-Day Pilot Program, respectively. Benefits are distributed monthly to residential
customers on a per-kWh basis.
Recently PacifiCorp sought clarification on the treatment oflong-term care facilities with
regards to the Credit. The REP Settlement Agreements do not specifically address this issue.
Under the direction ofBPA administration, PacifiCorp was directed to the BPA'Customer
DECISION MEMORANDUM APRIL 6 , 2007
Load Eligibility Guidelines a document created in 2002 to assist investment-owned utilities in
identifying qualified recipients. The document clearly states that long-term care facilities, or
nursing homes, are eligible. BPA Customer Load Eligibility Guidelines 10. Nursing homes
are eligible for the Credit "when the average length of stay is 30 days or longer and does not
provide full medical care similar to the medical facilities, equipment, and staff normally
provided by hospitals, clinics, or similar institutions.!d.
Idaho Power seeks to include long-term care facilities beginning in May 2007 upon
approval ofthis filing. The Commission recently granted a similar Application by PacifiCorp
dba Rocky Mountain Power (RMP). Case No. PAC-07-, Order No. 30248. Under its
agreement with BP A, RMP agreed to provide a back payment to eligible facilities for the prior 3
years. Representatives from BP A have indicated that Idaho Power does not intend to provide a
back payment similar to RMP'
Qualifying long-term care facilities currently are categorized as commercial customers
taking service under Schedules 7 and 9. Idaho Power has indicated that there are 155 facilities
eligible to receive the Credit currently operating within its service territory. Upon the request of
Staff, Idaho Power recalculated the Credit to reflect the inclusion of the eligible facilities. Staff
notes that the impact to other customers currently receiving the Credit is minimal (approximately
a 1 percent decrease in the per-kWh value once the long-term care facilities are included).
Eligible long-term care facilities will receive the Credit on a per-kWh basis similar to residential
customers under the new tariff language. Staff believes that this modification of the tariff
reflects necessary changes that will bring Idaho Power in compliance of the REP Settlement
Agreement it has entered into with BP A.
Idaho Power also requests that the tariff reflect a change in the methodology for
calculating the annual Credit issued to agricultural customers. Currently, Idaho Power takes the
annual energy usage from December 1 through the November 30 billing period to determine the
Credit received in December by eligible agricultural customers taking service under Schedules
24 or 25. Under the proposed modification, the annual period used for calculating the Credit
would be from October to September. Idaho Power contends that this change will ensure
accuracy in performing the Credit calculation. The Credit will continue to be issued in
December. Staff finds that this modification poses no detrimental impact to eligible recipients
and agrees with Idaho Power that the additional 2 months will improve the accuracy of the Credit
calculation.
DECISION MEMORANDUM APRIL 6 , 2007
STAFF RECOMMENDATION
Staff recommends approval of this Application.
COMMISSION DECISION
Does the Commission wish to approve the Company s Application?
i:udmemos/adv 07 02 ipc
DECISION MEMORANDUM APRIL 6 , 2007