HomeMy WebLinkAboutIntro.pdfIdaho Public Utilities Commission 2012
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December 1, 2012
The Honorable C.L. “Butch” Otter
Governor of Idaho
Statehouse
Boise, ID 83720-0034
Dear Governor Otter:
It is my distinct pleasure to submit to you, in accordance with Idaho Code §61-214,
the Idaho Public Utilities Commission 2011 Annual Report. This report is a
detailed description of the most significant cases, decisions and other activities
during 2011. The financial report on Page 8 is a summary of the commission’s
budget through the conclusion of Fiscal Year 2012, which ended June 30, 2012.
It has been a privilege and honor serving the people of Idaho this past year.
Sincerely,
Paul Kjellander
President
Idaho Public Utilities Commission 2012
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This report and all the links inside can be accessed online from the Commission’s
Website at www.puc.idaho.gov. Click on “File Room,” in the upper-left-hand-
corner and then on “ IPUC 2012 Annual Report.”
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Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Mailing Address:
P.O. Box 83720
Boise, Idaho 83720‐0074
208/334‐0300
Web site: www.puc.idaho.gov
Commission Secretary 334‐0338
jean.jewell@puc.idaho.gov
Executive Administrator 334‐0330
Joe.leckie@puc.idaho.gov
Executive Assistant/Public Information Officer 334‐0339
gene.fadness@puc.idaho.gov.
Utilities Division 334‐0368
Legal Division 334‐0324
Rail Section and Pipeline Safety 334‐0330
Consumer Assistance Section 334‐0369
Outside Boise, Toll‐Free Consumer Assistance 1‐800‐432‐0369
Idaho Telephone Relay Service (available statewide)
Voice: 1‐800‐377‐1363
Text Telephone: 1‐800‐377‐3529
TRS Information: 1‐800‐368‐6185
With this report, the Idaho Public Utilities Commission has satisfied Idaho Code 61‐214; this is a “full and complete account” of
the most significant cases to come before the commission during the 2011 calendar year. (The financial report on Page 8 covers
Fiscal Year July 1, 2011 through June 30, 2012.)
Anyone with access to the Internet may also review the commission’s agendas, notices, case information and decisions by
visiting the IPUC’s Web site at: www.puc.idaho.gov. Commission records are also available for public inspection at the
commission’s Boise office, 472 W. Washington St., Monday through Friday, 8 a.m. to 5 p.m. A nominal fee of 5 cents per page
may be charged for the cost of copying, typically for 30 or more pages.
The Idaho Public Utilities Commission, as outlined in its Strategic Plan, serves the citizens and utilities of Idaho by determining
fair, just and reasonable rates for utility commodities and services that are to be delivered safely, reliably and efficiently. During
the period covered by this report, the commission also had responsibility for ensuring all rail services operating within Idaho do
so in a safe and efficient manner. The commission also has a pipeline safety section that oversees the safe operation of the
intrastate natural gas pipelines and facilities in Idaho.
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The Commissioners
Paul Kjellander
Commissioner Kjellander rejoined the Idaho Public Utilities Commission
in April 2011 following his service as administrator of the Office of Energy
Resources (OER). Kjellander, who was elected president of the commission
in April 2011, was appointed to his current six‐year term by Idaho Governor
C.L. “Butch” Otter.
Kjellander previously served on the Commission from January 1999 until
October 2007. In 2007, Governor Otter appointed Kjellander to head up the
newly created OER. During his 3.5 years at OER, Kjellander created an
aggressive energy efficiency program funded through the federal American Recovery and
Reinvestment Act. Kjellander was also elected to serve as a board member on the National
Association of State Energy Officials.
Kjellander, a Republican, was elected to three terms (1994‐1999) in the Idaho House of
Representatives, where he served as a member of the House State Affairs, Judiciary and Rules,
Ways and Means, Local Government and Transportation committees. During his last term in
office, Kjellander was elected House Majority Caucus Chairman. His legislative service includes
membership on the Legislature’s Information Technology Advisory Council and the
House/Senate Joint Committee on Technology. He also served as co‐chairman of the Legislative
Task Force on the Federal Telecommunications Act of 1996 and vice chairman of the Council of
State Governments‐West “Smart States Committee.” His interim legislative committee
assignments included the Optional Forms of County Government Committee, Capital Crimes
Committee and the Private Property Rights Committee.
Kjellander has also served as director of the Distance Learning Program at Boise State
University’s College of Applied Technology and head of broadcast technology. At the BSU Radio
Network he was station manager, director of the Special Projects Unit and director of News and
Public Affairs.
Kjellander’s undergraduate degrees from Muskingum College, Ohio, are in communications,
psychology and art. He has a master’s degree in telecommunications from Ohio University.
As a member of the National Association of Regulatory Commissioners (NARUC), Kjellander
has served on the Telecommunications, Consumer Affairs, and Electricity committees. He was
also appointed by the chairman of the Federal Communication Commission to the
Federal/State Board of Jurisdictional Separations and served as chairman. He is currently
serving as a NARUC representative to the North American Numbering Council (NANC).
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Marsha H. Smith
Commissioner Smith is serving her fourth term on the commission. Her
current term expires in January 2015. Smith, a Democrat, served as
commission president from November 1991 to April 1995.
Commissioner Smith is chair of the Western Electricity Coordinating
Council (WECC) Board of Directors, represents Idaho on the Western
Interconnection Regional Advisory Body and the State‐Provincial Steering
Committee.
Smith is a past president of the National Association of Regulatory Utility Commissioners
(NARUC), serves on the NARUC Board and is a member and past chair of NARUC’s Electricity
Committee. She is also a member of the Steering Committee of the Northern Tier Transmission
Group. She chaired the Western Interstate Energy Board’s Committee for Regional Electric
Power Cooperation from October 1999 to October 2005. She is a member of the National
Council on Electricity Policy Steering Committee, the Harvard Electricity Policy Group, the Idaho
State Bar and the Log Cabin Literary Center Board.
Smith received a bachelor of science degree in biology/education from Idaho State University,
a master of library science degree from Brigham Young University and her law degree from the
University of Washington.
Before her appointment to the commission, Commissioner Smith served as deputy attorney
general in the business regulation/consumer affairs division of the Office of the Idaho Attorney
General and as deputy attorney general for the Idaho Public Utilities Commission. She was the
commission's director of Policy and External Affairs and chair of the NARUC Staff Subcommittee
on Telecommunications.
A fourth‐generation Idahoan, Commissioner Smith has two sons.
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Mack A. Redford
Commissioner Redford was appointed to the commission in February
2007 by Gov. Butch Otter. During 2008 through April 2009, he served as
president of the commission. His term expires in January 2013.
At the time of his appointment, Commissioner Redford practiced law for
the Boise‐based firm of Elam & Burke PA, specializing in commercial
transactions, construction and engineering law, mediation, real estate and
general business.
Redford grew up in the Weiser and Caldwell areas, graduating from
Caldwell High School. He received both his bachelor’s and law degree from the University of
Idaho and in 1967 became a deputy in the Idaho attorney general’s office. In 1977, he became a
deputy attorney general for the Trust Territory of the Pacific Islands, headquartered in Saipan,
Northern Mariana Islands. The territory included a chain of 2,000 islands stretching from Hawaii
to the Philippines.
In 1981, Redford became general counsel for Morrison Knudsen Engineers and Morrison
Knudsen International, a position that took him to Saudi Arabia where MK was building the King
Khalid Military City. In 1991, Redford was retained by TransManche Link, based in Folkestone,
England, where he was legal counsel for the Channel Tunnel Contractors, the builders of the 31‐
mile Channel Tunnel connecting England and France. It is the second‐largest rail tunnel in the
world.
In 1992, Commissioner Redford joined the Boise firm of Park Redford & Burkett. In 1993, he
was retained by the World Bank of the Government of Nepal as contract and claims counsel for
the Arun Ill Hydroelectric Project. In 1996, he became general counsel for Micron Construction,
which was later acquired by Kaiser Engineers. He joined the Boise law firm of Elam & Burke in
2001.
Since his appointment, Commissioner Redford has become active in the National Association
of Regulatory Commissioners (NARUC) where he serves on the International Relations and
Water committees as well as the Subcommittee of Nuclear Issues‐Waste Disposal.
Commissioner Redford and his wife, Nancy, are the parents of two children.
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IDAHO PUBLIC UTILITIES COMMISSION, 1913‐2012
Commissioner From To
J. A. Blomquist May 8, 1913 Jan. 11, 1915
A. P. Ramstedt May 8, 1913 Feb. 8, 1917
D. W. Standrod May 8, 1913 Dec. 1, 1914
John W. Graham Dec. 1, 1914 Jan. 13, 1919
A. L. Freehafer Jan. 14, 1915 Jan. 31, 1921
George E. Erb Dec. 8, 1917 April 14, 1923
Everett M. Sweeley May 23, 1919 Aug. 20, 1923
J. M. Thompson Feb. 1, 1921 Dec. 20, 1932
Will H. Gibson April 16, 1923 June 29, 1929
F. C. Graves Sept. 7, 1923 Nov. 12, 1924
Frank E. Smith March 6, 1925 Feb. 25, 1931
J. D. Rigney July 2, 1929 Sept. 30, 1935
M. Reese Hattabaugh March 2, 1931 Jan. 26, 1943
Harry Holden March 27, 1933 Jan. 31, 1939
J. W. Cornell Oct. 1, 1935 Jan. 11, 1947
R. H. Young Feb. 1, 1939 March 19, 1944
B. Auger Feb. 1, 1943 March 9, 1951
J. D. Rigney March 30, 1944 April 30, 1945
W. B. Joy May 1, 1945 March 9, 1951
H. N. Beamer Jan. 17, 1947 Dec. 31, 1958
George R. Jones March 12, 1951 Jan. 31, 1957
H. C. Allen March 12, 1951 Feb. 28, 1957
A. O. Sheldon March 1, 1957 June 30, 1967
Frank E. Meek Feb. 1, 1957 Feb. 5, 1964
Ralph H. Wickberg Jan. 14, 1959 Feb. 23, 1981
Harry L. Nock May 1, 1964 Sept. 30, 1974
Ralph L. Paris July 1, 1967 Oct. 5, 1967
J. Burns Beal Dec. 1, 1967 April 1, 1973
Robert Lenaghen April 1, 1973 April 15, 1979
M. Karl Shurtliff Oct. 1, 1974 Dec. 31, 1976
Matthew J. Mullaney Jan. 2, 1977 Feb. 15, 1977
Conley Ward, Jr. March 7, 1977 Feb. 9, 1987
Perry Swisher April 16, 1979 Jan. 21, 1991
Richard S. High Feb. 24, 1981 April 30, 1987
Dean J. Miller March 16, 1987 Jan. 30, 1995
Ralph Nelson May 4, 1987 Feb. 12, 1999
Marsha H. Smith Jan. 21, 1991 Now serving
Dennis S. Hansen Feb. 1, 1995 Feb. 19, 2007
Paul Kjellander Feb. 15, 1999 Oct. 19, 2007
Mack Redford Feb. 19, 2007 Now serving
Jim Kempton Oct. 22, 2007 April 1, 2011
Paul Kjellander April 3, 2011 Now serving
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Financial Summary
FISCAL YEARS 2008 ‐ 2012
Description FY2008 FY2009 FY2010 FY2011 FY2012
Personnel Costs $3,898,109 $4,072,505 $3,939,023 $3,996,943 $4,025,728
Travel $181,275 $136,859 $127,352 $145,593 $140,879
Consultants $16,041 $0.00 $3,498 $0.00 $5,625
Subscriptions $27,036 $22,883 $28,355 $27,363 $28,571
Emp. Training $33,190 $21,396 $17,079 $29,227 $37,979
Postage $7,174 $8,338 $8,019 $8,536 $7,329
Telephone $27,335 $27,910 $22,454 $20,876 $22,184
Office Supplies $17,697 $14,679 $15,307 $14,032 $14,133
Office Rent $236,497 $236,704 $252,906 $283,959 $293,127
Maintenance $15,817 $10,290 $15,694 $7,409 $11,609
Insurance $5,976 $6,380 $3,732 $1,286 $1,034
Office Equip. $5,279 $1,095 $2,973 $34,368 $0.00
Computer Equip. $15,934 $4,262 $3,185 $0.00 $24,305
Commissioner Equip. $0.00 $22,052 $0.00 $0.00 $0.00
Other Equip. $0.00 $0.00 $0.00 $0.00 $53,374
Other Expenses $122,130 $102,775 $92,913 $116,094 $187,023
=========================================================================
Total
Expenditures $4,609,484 $4,688,128 $4,531,990 $4,685,686 $4,852,900
Appropriations $4,944,400 $5,236,800 $5,266,100 $5,142,600 $5,190,500
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Unexpended
Balance $334,916 $548,672 $734,110 $456,914 $337,600
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Commission Structure and Operations
Under state law, the Idaho Public Utilities Commission supervises and regulates Idaho’s
investor‐owned utilities – electric, gas, telecommunications and water – assuring adequate
service and affixing just, reasonable and sufficient rates.
The commission does not regulate publicly owned, municipal or cooperative utilities.
The governor appoints the three commissioners with confirmation by the Idaho Senate. No
more than two commissioners may be of the same political party. The commissioners serve
staggered six‐year terms.
The governor may remove a commissioner before his/her term has expired for dereliction of
duty, corruption or incompetence.
The three‐member commission was established by the 12th Session of the Idaho Legislature
and was organized May 8, 1913 as the Public Utilities Commission of the State of Idaho. In 1951
it was reorganized as the Idaho Public Utilities Commission. Statutory authorities for the
commission are established in Idaho Code titles 61 and 62.
The IPUC has quasi‐legislative and quasi‐judicial as well as executive powers and duties.
In its quasi‐legislative capacity, the commission sets rates and makes rules governing utility
operations. In its quasi‐judicial mode, the commission hears and decides complaints, issues
written orders that are similar to court orders and may have its decisions appealed to the Idaho
Supreme Court. In its executive capacity, the commission enforces state laws and rules affecting
the utilities and rail industries.
Commission operations are funded by fees assessed on the utilities and railroads it
regulates. Annual assessments are set by the commission each year in April within limits set by
law.
The commission president is its chief executive officer. Commissioners meet on the first
Monday in April in odd‐numbered years to elect one of their own to a two‐year term as
president. The president signs contracts on the commission’s behalf, is the final authority in
personnel matters and handles other administrative tasks. Chairmanship of individual cases is
rotated among all three commissioners.
The commission conducts its business in two types of meetings – hearings and decision
meetings. Decisions meetings are typically held once a week, usually on Monday.
Formal hearings are held on a case‐by‐case basis, sometimes in the service area of the
impacted utility. These hearings resemble judicial proceedings and are recorded and
transcribed by a court reporter.
There are technical hearings and public hearings. At technical hearings, formal parties who
have been granted “intervenor status” present witness testimony and evidence, subject to
cross‐examination by attorneys from the other parties, staff and the commissioners. At public
hearings, members of the public may testify before the commission.
In 2009, the commission began conducting telephonic public hearings to save expense and
allow customers to testify from the comfort of their own homes. Commissioners and other
interested parties gather in the Boise hearing room and are telephonically connected to
ratepayers who call in on a toll‐free line to provide testimony or listen in. A court reporter is
present to take testimony by telephone, which has the same legal weight as if the person
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testifying were present in the hearing room. Commissioners and attorneys may also direct
questions to those testifying.
The commission also conducts regular decision meetings to consider issues on an agenda
prepared by the commission secretary and posted in advance of the meeting. These meetings
are usually held Mondays at 1:30 p.m., although by law the commission is required to meet
only once a month. Members of the public are welcome to attend decision meetings.
Typically, decision meetings consist of the commission’s review of decision memoranda
prepared by commission staff. Minutes of the meetings are taken. Decisions reached at these
meetings may be either final or preliminary, but subsequently become final when the
commission issues a written order signed by a majority of the commission. Under the Idaho
Open Meeting Law, commissioners may also privately deliberate fully submitted matters.
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Commission Staff
To help ensure its decisions are fair and workable, the commission employs a staff of
about 50 people – engineers, rate analysts, attorneys, accountants, investigators, economists,
secretaries and other support personnel. The commission staff is organized in three divisions –
administration, legal and utilities.
The staff analyzes each petition, complaint, rate increase request or application for an
operating certificate received by the commission. In formal proceedings before the
commission, the staff acts as a separate party to the case, presenting its own testimony,
evidence and expert witnesses. The commission considers staff recommendations along with
those of other participants in each case ‐ including utilities, public, agricultural, industrial,
business and consumer groups.
Administration
The Administrative Division is responsible for coordinating overall IPUC activities. The
division includes the three commissioners, two policy strategists, a commission secretary, an
executive administrator, an executive assistant and support personnel.
The policy strategists are executive level positions reporting directly to the
commissioners with policy and technical consultation and research support regarding major
regulatory issues in the areas of electricity, telecommunications, water and natural gas.
Strategists are also charged with developing comprehensive policy strategy, providing
assistance and advice on major litigation before the commission, public agencies and
organizations. (Contact Lou Ann Westerfield, 334‐0323 and Wayne Hart, 334‐0354, policy
analysts.)
The commission secretary, a post established by Idaho law, keeps a precise public
record of all commission proceedings. The secretary issues notices, orders and other
documents to the proper parties and is the official custodian of documents issued by and filed
with the commission. Most of these documents are public records. (Contact Jean Jewell,
commission secretary, at 334‐0338.)
The executive administrator has primary responsibility for the commission’s fiscal and
administrative operations, preparing the commission budget and supervising fiscal,
administration, public information, personnel, information systems, rail section operations and
pipeline safety. The executive administrator also serves as a liaison between the commission
and other state agencies and the Legislature. (Contact Joe Leckie, executive administrator, at
334‐0331.)
The executive assistant is responsible for public communication between the
commission, the general public and interfacing governmental offices. The responsibility
includes news releases, responses to public inquiries, coordinating and facilitating commission
workshops and public hearings and the preparation and coordination of any IPUC report
directed or recommended by the Idaho Legislature or Governor. (Contact Gene Fadness,
executive assistant, at 334‐0339.)
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Legal Division
Five deputy attorneys general are assigned to the commission from the Office of the
Attorney General and have permanent offices at IPUC headquarters. The IPUC attorneys
represent the staff in all matters before the commission, working closely with staff accountants,
engineers, investigators and economists as they develop their recommendations for rate case
and policy proceedings.
In the hearing room, IPUC attorneys coordinate the presentation of the staff’s case and
cross‐examine other parties who submit testimony. The attorneys also represent the
commission itself in state and federal courts and before other state or federal regulatory
agencies. (Contact Don Howell, legal division director, at 334‐0312.)
Utilities Division
The Utilities Division, responsible for technical and policy analysis of utility matters
before the commission, is divided into three sections. (Contact Randy Lobb, utilities division
administrator, at 334‐0350.)
The Accounting Section of seven auditors audits utility books and records to verify
reported revenue, expenses and compliance with commission orders. Staff auditors present the
results of their findings in audit reports as well as in formal testimony and exhibits. When a
utility requests a rate increase, cost‐of‐capital studies are performed to determine a
recommended rate of return. Revenues, expenses and investments are analyzed to determine
the amount needed for the utility to earn the recommended return on its investment. (Contact
Terri Carlock, accounting section supervisor, at 334‐0356.)
The Engineering Section of seven engineers reviews the physical operations of utilities.
Staff engineers determine the cost of serving various types of customers, design utility rates
and allocate costs between Idaho and the other states served by Idaho utilities. They determine
the cost effectiveness of conservation and co‐generation programs, evaluate the adequacy of
utility services and frequently help resolve customer complaints. The group develops computer
models of utility operations and reviews utility forecasts of energy usage and the need for new
facilities. (Contact Rick Sterling, engineering section supervisor, at 334‐0351.)
The Telecommunications Section includes three analysts who handle issues involving
telecommunications. (Contact Joe Cusick, section supervisor, at 334‐0333.)
The Consumer Assistance Section includes six division investigators who resolve
conflicts between utilities and their customers. Customers faced with service disconnections
often seek help in negotiating payment arrangements. Consumer Assistance may mediate
disputes over billing, deposits, line extensions and other service problems.
Consumer Assistance monitors Idaho utilities to verify they are complying with
commission orders and regulations. Investigators participate in general rate and policy cases
when rate design and customer service issues are brought before the commission. (Contact
Beverly Barker, administrator for the Consumer Assistance section, at 334‐0302.)
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Rail Section
The Rail Section oversees the safe operations of railroads that move freight in and
through Idaho and enforces state and federal regulations safeguarding the transportation of
hazardous materials by rail in Idaho. The commission’s rail safety specialist
inspects railroad crossings and rail clearances for safety and maintenance deficiencies. The Rail
Section helps investigate all railroad‐crossing accidents and makes recommendations for safety
improvements to crossings.
As part of its regulatory authority, the commission evaluates the discontinuance and
abandonment of railroad service in Idaho by conducting an independent evaluation of each
case to determine whether the abandonment of a particular railroad line would adversely
affect Idaho shippers and whether the line has any profit potential. Should the commission
determine abandonment would be harmful to Idaho interests, it then represents the state
before the federal Surface Transportation Board, which has authority to grant or deny line
abandonments. (Contact Joe Leckie, rail section supervisor, at 334‐0331.)
Pipeline Safety Program
The pipeline safety section oversees the safe operation of the intrastate oil and natural
gas pipelines in Idaho.
The commission’s pipeline safety personnel verify compliance with state and federal
regulations by on‐site inspections of intrastate pipeline distribution systems. Part of the
inspection process includes a review of record‐keeping practices and compliance with design,
construction, operation, maintenance and drug/alcohol abuse regulations.
Key objectives of the program are to monitor accidents and violations, to identify their
contributing factors and to implement practices to avoid accidents. All reportable accidents will
be investigated and appropriate reports filed with the U.S. Department of Transportation in a
timely manner. (Contact Joe Leckie, pipeline safety program supervisor, at 334‐0331.)
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Why can’t you tell them no?
One of the most frequent questions we get after a utility files a rate increase application is, “Why
can’t you just tell them no?” Actually, we can, but not without evidence.
For nearly 100 years, public utility regulation has been based on this regulatory compact between
utilities and regulators: Regulated utilities agree to invest in the generation, transmission and
distribution necessary to adequately and reliably serve all the customers in their assigned territories. In
return for that promise to serve, utilities are guaranteed recovery of their prudently incurred expense
along with an opportunity to earn a reasonable rate of return. The rate of return allowed must be high
enough to attract investors for the utility’s capital‐intensive generation, transmission and distribution
projects, but not so high as to be unreasonable for customers.
In setting rates, the commission must consider the needs of both the utility and its customers. The
commission serves the public interest, not the popular will. It is not in customers’ best interest, nor is it
in the interest of the State of Idaho, to have utilities that do not have the generation, transmission and
distribution infrastructure to be able to provide safe, adequate and reliable electrical, natural gas and
water service. This is a critical, even life‐saving, service for Idaho’s citizens and essential to the state’s
economic development and prosperity.
Unlike unregulated businesses, utilities cannot cut back on service as costs increase. As demand for
electricity, natural gas and water grows, utilities are statutorily required to meet that demand. In Idaho
recently, and across the nation, a continued increase in demand as well as a number of other factors
have contributed to rate increases on a scale we have not witnessed before. It is not unusual now for
Idaho’s three major investor‐owned electric utilities to file annual rate increase requests.
In light of these continued requests for rate increases, the Commission walks a fine line in balancing
the needs of utilities to serve customers and customers’ ability to pay.
When a rate case is filed, our staff of auditors, engineers and attorneys will take up to six months to
examine the request. During that period, other parties, often representing customer groups, will
“intervene” in the case for the purpose of conducting discovery, presenting evidence and cross‐
examining the company and other parties to the case. The Commission staff, which operates
independently of the commission, will also file its own comments that result from its investigation of the
company’s request. The three‐member Commission will also conduct technical and public hearings.
Once testimony from the company, commission staff and intervening parties is presented and
testimony from hearings and written comments is taken, all of that information is included in the official
record for the case. It is only from the evidence contained in this official record that the Commission can
render a decision.
If the utility has met its burden of proof in demonstrating that the additional expense it incurred was
1) necessary to serve customers and 2) prudently incurred, the commission must allow the utility to
recover that expense. The commission can ‐‐ and often does ‐‐ deny recovery of some or all the expense
utilities seek to recover from customers if the commission is confident it has the legal justification to do
so. (See pages 18 and 19 of this report.) Utilities and parties to a rate case have the right to petition the
Commission for reconsideration. If reconsideration is not granted, utilities or customer groups can
appeal the Commission’s decision to the state Supreme Court.
In the end, the Commission’s job is to ensure that customers are paying a reasonable rate and are
receiving adequate and reliable service and that utilities are allowed to recover their prudently incurred
expenses and earn a fair rate of return.