20150706_4716.pdf

DECISION MEMORAN1UM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:JULY 2,2015
RE:IDAHO POWER COMPANY TARIFF ADVICE NO.15-06
MODIFICATIONS TO RULE I,BUDGET PAY PLANS
On June 4,2015,Idaho Power submitted Tariff Advice 15-06 to revise Idaho
Power’s Rule I,Budget Pay Plans.The Company requests that the proposed revisions
become effective July 8,2015.
BACKGROUND
The Company is requesting to revise Rule Ito increase transparency regarding
Idaho Power’s Budget Pay Plan.To ensure the Company has sufficient billing
information to calculate an accurate Budget Pay amount for residential customers,a
minimum of nine months of billing history is needed.The Company requests to update
Rule Ito clarify the Budget Pay enrollment eligibility requirements and align Rule I with
the Company’s current practice.
The Company’s billing system recalculates the Budget Pay amount at the
12-month anniversary of the first bill that was generated after the Customer enrolled in
the Budget Pay Plan,as opposed to when the Customer began paying the Budget Pay
amount.This is done because the initial Budget Pay amount is calculated when the
Customer enrolls in the Budget Pay Plan,which can be weeks before the Customer
begins making the payments.To clarify the application of the anniversary date and
corresponding recalculation to the Budget Pay amount,the Company requests to update
Rule Ito include this information.
DECISION MEMORANDUM 1 JULY 2,2015
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the tariff advice and analyzed the underlying methodology for
establishing Budget Pay Plans.The Company’s new billing system calculates Budget
Pay amounts quite differently than the old billing system.Staff believes the new
methodology will accurately estimate Budget Pay amounts using historic billing data.
Using at least nine months of billing data for residential customers should be sufficient to
reasonably determine a Budget Pay amount.The change in anniversary’date from sign
update to bill date also seems reasonable.Staff recommends approval of Idaho Power’s
proposed changes to Rule I,Budget Pay Plans.
COMMISSION DECISION
Does the Commission wish to approve the changes set forth in this Tariff Advice
with an effective date of July 8,2015?
Daniel Klein
Udmcmosjldahn Pnvcr Budget Pay Plans dcc memo
DECISION MEMORANDUM 2 JULY 2,2015
Idaho Power Company First Revised Sheet No.I-i
Cancels
I.P.U.C.No.29,Tariff No.101 Original Sheet No.I-i
RULE I
BUDGET PAY PLANS
1.Residential Budget Pay Plan -Schedules 1,4 and 5.A Budget Pay Plan is available to
Residential Customers desiring to levelize payments for electric service.If a Customer has more than
one electric service on the account,each electric service charge will be levelized individually.A
Customer may sign up for the Budget Pay Plan at any time during the year.In order to be eligible for the
Budget Pay Plan,the Customer’s account must not be in arrears and the customer must have received
service at the same lDcation for a minimum of nine months.
The levelized payment will approximate the average of 12 monthly billings based on either the
historical charges,or an estimate of future charges.The Budget Pay amount for each electric service
on the account will be adjusted to the next higher dollar.Budget Pay amounts will be recalculated at
the 12-month (or 365-day)anniversary of the datefirst bill that was generated after the Customer-began
paying the most—cwc-ent Budget Pay amount(e)enrolled in the Budget Pay Plan.The new monthly
payment will be the recalculated Budget Pay amount(s).A Customer’s Budget Pay amount(s)may
decrease,increase,or remain the same.
Customers with a negative balance in their Budget Pay Plan account at the time of recalculation
will have monthly Budget Pay charges equal to the recalculated Budget Pay amount plus one-twelfth of
the negative balance.At the Customer’s request,a negative balance may be paid in full.Customers with
a positive balance in their Budget Pay Plan account at the time of recalculation,or upon termination of the
agreement after all charges for services have been paid,will be refunded at the Customer’s request.If no
request for refund is made,the monthly Budget Pay charges will be equal to the recalculated Budget Pay
amount reduced by one-twelfth of the positive balance.Upon the Customer’s request,a positive balance
for one Budget Pay electric service may be transferred to the balance of another Budget Pay electric
service on the account.
Any estimates furnished by the Company with such Budget Pay Plan should not be construed as
a guarantee that the total actual charges will not exceed the estimates.The Company,because of rate
changes or other requirements,may at any time submit a revised estimate to the Customer and require
that the Customer pay the revised monthly Budget Pay installment as a condition to the continuation of
the Budget Pay Plan for the Customer,
The Budget Pay amount(s)will be billed on the regular service bill each month.Once
established,the Budget Pay Plan will remain in effect from year to year until the Customer notifies the
Company not less than 30 days prior to the desired date of cancellation or unless the Customer fails to
pay the agreed amounts.
2.Small General Service Budget Pay Plan -Schedule 7.A Budget Pay Plan is available to
Small General Service Customers receiving service on Schedule 7.If a Customer has more than one
electric service on the account,each electric service charge will be levelized individually.If a Customer
transfers to another schedule (other than Schedules 1,4 or 5),the Budget Pay Plan will not be available.
A Customer may sign up for the Budget Pay Plan at any time during the year.
In order to qualify,the Customer must have been receiving service at the same location,under the
same ownership and account number,and with all monthly billings paid on or before the past due date for
at least 12 months prior to applying for the Budget Pay Plan.The Customer must maintain the payment
status as described above or the Customer will be removed from the Budget Pay Plan on the next
monthly billing and all past due balances will become immediately due and payable.
IDAHO Issued by IDAHO POWER COMPANY
Issued —pec-Qcder-Ne3QO3June 4,2Ol5Jehci-R-GaleGregory W.Said,Vice President,Regulatory Affairs
Effective —March 1,200SJuly 8,2015 1221 West Idaho Street,Boise,Idaho
Idaho Power Company First Revised Sheet No.1-2
Cancels
I.P.U.C.No.29,Tariff No.101 Original Sheet No.1-2
RULE I
BUDGET PAY PLANS
(Continued)
2.Small General Service Budget Pay Plan -Schedule 7 (Continued)
The levelized payment will approximate the average of 12 monthly billings based on historical
charges.Budget Pay amounts will be recalculated at the 12-month (or 365-day)anniversary of the
datefirst bill that was generated after the Customer-began-pay4ng-the-mest-euicent-u4get Pay amouI4#fe)
enrolled in the Budget Pay Plan.The Budget Pay amount for each electric service on the account will be
adjusted to the next higher dollar,The new monthly payment will be the recalculated Budget Pay
amount(s).A Customer’s Budget Pay amount(s)may decrease,increase,or remain the same.
Customers with a negative balance in their Budget Pay Plan account at the time of recalculation
will have monthly Budget Pay charges equal to the recalculated Budget Pay amount plus one-twelfth of
the negative balance.At the Customer’s request,a negative balance may be paid in full.Customers with
a positive balance in their Budget Pay Plan account at the time of recalculation,or upon termination of the
agreement after all charges for services have been paid,will be refunded at the Customer’s request.If no
request for refund is made,the monthly Budget Pay charges will be equal to the recalculated Budget Pay
amount reduced by one-twelfth of the positive balance.Upon the Customer’s request,a positive balance
for one Budget Pay electric service may be transferred to the balance of another Budget Pay electric
service on the account.
Any estimates furnished by the Company with such Budget Pay Plan should not be construed as
a guarantee that the total actual charges will not exceed the estimates.The Company,because of rate
changes or other requirements,may at any time submit a revised estimate to the Customer and require
that the Customer pay the revised monthly Budget Pay installment as a condition to the continuation of
the Budget Pay Plan for the Customer.
The Budget Pay amount(s)will be billed on the regular service bill each month.Once established,
the Budget Pay Plan will remain in effect from year to year until the Customer notifies the Company not
less than 30 days prior to the desired date of cancellation or unless the Customer fails to pay the agreed
amounts.
IDAHO Issued by IDAHO POWER COMPANY
Issued —pec-Qcdec-Ne-305QJune 4.2Ol5John R.GaleGregory W.Said,Vice President,Regulatory Affairs
Effective—_March 1,200gJuIy 8,2015 1221 West Idaho Street,Boise,Idaho