20080908_2352.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
LEG AL
WORKING FILE
FROM:BEVERL Y BARKER
DATE:SEPTEMBER 4, 2008
RE:ENERGY AFFORDABILITY WORKSHOPS
BACKGROUND
A variety of factors are contributing to an unrelenting and significant upward pressure on
electric and natural gas rates in Idaho. Unfortunately, this is occurring during an economic
downturn. Energy affordability has become a central issue for many Idaho households and
businesses, and utilities are facing the prospect of more customers being unable to pay their
energy bills in full and/or on time. Customers who are unemployed, have lower incomes, and/or
have fixed incomes that fail to keep pace with inflation are disproportionately affected by rising
energy costs, since they must devote an increasingly larger share of their income to paying for
natural gas and electricity.
STAFF RECOMMENDATION
Staff recommends that the Commission initiate a formal generic case and schedule
workshops for the purpose of examining issues surrounding energy affordability and customers
ability to pay energy bills. Although Staff recognizes that there are serious energy affordability
issues facing commercial customers as well, Staff believes the primary focus at this time should
be on residential customers.
Under the terms of the Stipulation in Case Nos. A VU-O8-01 and A VU-O8-, Avista
agreed to support and actively participate in any Commission-established workshops for this
purpose. Because these issues are not limited to Avista s service territory, however, Staff
maintains that workshops should include all the major regulated energy utilities serving Idaho
DECISION MEMORANDUM - 1 -SEPTEMBER 4, 2008
customers. Staff recommends that A vista, Intermountain Gas, Idaho Power and Rocky Mountain
Power be made parties to this case. Staff anticipates that consumer advocacy organizations, such
as CAPAI, ICAN, and AARP, will want to participate in these workshops as well and should be
invited to intervene.
Staff has prepared an initial list of topics to explore in workshops: (1) bill mitigation
(payment plans); (2) bill payment assistance; (3) bill reduction (e., conservation
weatherization, bill discounts, reduced rates); (4) reduction in customer costs (e., payment
transaction costs); (5) barriers to obtaining or retaining service (e., deposits & arrearages); and
(5) case management (e., providing one-on-one customer assistance). The objective would be
to identify new programs, policies, procedures, and/or resources that could be adopted or used to
address energy affordability. To the extent possible, the costs and benefits of proposed solutions
would be identified. The information gathered at the workshops would be provided to the
Commission by Staff in a report with specific recommendations. The Commission would then
decide on how best to proceed.
COMMISSION DECISION
Does the Commission wish to initiate a formal generic case and schedule workshops for
the purpose of examining issues surrounding energy affordability and customers' ability to pay
energy bills?
BAB:udmemos/decision memo energy affordability
DECISION MEMORANDUM - 2 -SEPTEMBER 4, 2008