20100222_2865.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:T J GOLO
DATE:FEBRUARY 18,2010
RE:IDAHO POWER'S MODIFICATION TO SCHEDULE 66 -
MISCELLANEOUS CHARGES, CURRENT TRANSFORMER
CHARGES; TARIFF ADVICE NO. 10-01.
BACKGROUND
On January 13 2010 , Idaho Power ("Company ) filed a tariff advice with the Commission
proposing to modify customer-requested current transformer ("CT") charges in Schedule 66. The
existing CT metering charges are based on existing metering technology, not AMI meters. The
Company proposes to update the existing CT metering charges for non-AMI meters and add current
transformer charges for AMI meters under Section 1 of Schedule 66.
Adding the new current transformer metering installation charges related to AMI will allow
the Company to accurately charge customers for the metering service. The Company proposes that
the existing single-phase and polyphase CT charges in Section 1 of Schedule 66 be updated and
remain in place for non-AMI meters until the deployment of AMI is complete. Under the
Company s Rule D , Metering, when CT metering is requested by the customer but not required by
the Company, the customer is required to pay the cost of the metering equipment and installation in
Schedule 66. Customer requests for CT metering are minimal and typically only occur when
customers have unique installation needs that cannot be met with standard metering.
STAFF ANALYSIS
The CT charges in Schedule 66 have been in place since April 20, 1995. The charge to
provide this metering service includes the meter, current transformers, labor, and other materials
necessary. The Company provides a credit for the meter to the customer. However, with the
deployment of AMI meters throughout the Company s service territory, non-AMI meters have no
value and the credit for them is zero. Updating the metering service charges for non-AMI meters
DECISION MEMORANDUM - 1 -FEBRUARY 18 2010
and adding the corresponding charges for AMI meters will allow the Company to charge customers
accurately.
The existing single-phase and polyphase charges for non-AMI meters depend on varying
voltages. The current average single-phase charge for a CT non-AMI metering service is $245 and
the current average polyphase charge for this service is $453. The Company is proposing a single
charge not tied with varying voltages for single-phase and polyphase CT metering service for non-
AMI and AMI meters. The updated metering cost for providing single-phase CT non-AMI
metering service is $316 and for polyphase CT non-AMI metering is $662. The metering cost for
single-phase CT AMI metering service is $307 and for polyphase CT AMI metering is $636. The
charges include current transformers (2 CT for single-phase service and 3 CT for polyphase
service), labor, other materials and equipment necessary to provide the service and meter cost. The
Company can only give meter credit for the AMI CT metering services because the meter credit for
non-AMI meters, as mentioned before, is zero. The proposed cost updates for non-AMI metering
service is a significant increase from the existing amounts. However, Staff believes that the cost
updates are reasonable considering it has been 15 years since the charges were updated. Since then
there have been significant changes in labor and material costs. Existing customers receiving non-
AMI CT metering service will not be charged additionally during the transition from non-AMI
meter to an AMI meter. Tfie Company simply replaces the non-AMI meter with an AMI meter
during the deployment of AMI.
STAFF RECOMMENDATION
Staff recommends that the Commission approve Idaho Power s proposed cost updates and
revision to Schedule 66 for their CT metering services, with an effective date of March 1 2010.
COMMISSION DECISION
Does the Commission wish to approve Idaho Power s Tariff Advice No. 10-01 proposing
modifications to Schedule 66 for Current Transformer Charges with an effective date of March 1
2010?
i:udmemos/ipc tariff advice no. 10-01 rev to schedule 66
DECISION MEMORANDUM - 2 -FEBRUARY 18 2010