HomeMy WebLinkAboutSection I 2023 Annual Report.pdf
IDAHO PUBLIC UTILITIES COMMISSION
ANNUAL REPORT 2023
www.puc.idaho.gov
11331 W. Chinden Blvd., Building 8
Suite 201-A Boise, ID 83714
PO Box 83720-0074
Table of Contents
Commissioners ...................................................................................................................................... 5
Financial summary ................................................................................................................................. 7
Fiscal Years 2019 – 2023 ................................................................................................................... 7
Commission Structure & Operations ...................................................................................................... 8
Commission staff ................................................................................................................................. 10
Administration .................................................................................................................................. 10
Legal ................................................................................................................................................ 11
Utilities Division ................................................................................................................................ 11
Railroad Safety ................................................................................................................................. 12
Pipeline Safety ................................................................................................................................. 12
WHY CAN’T YOU JUST TELL THEM NO? .......................................................................................... 13
Electric ................................................................................................................................................. 14
Atlanta Power Company ................................................................................................................... 15
Avista Utilities ................................................................................................................................... 16
Idaho Power Company ..................................................................................................................... 20
Rocky Mountain Power .................................................................................................................... 26
General ............................................................................................................................................ 31
Water ................................................................................................................................................... 32
Regulated Water Companies ........................................................................................................... 32
Algoma Water System ...................................................................................................................... 33
Falls Water Company ....................................................................................................................... 34
Gem State Water ............................................................................................................................. 35
Island Park Water Company ............................................................................................................. 36
Kootenai Heights Water System ....................................................................................................... 37
Sunbeam Water ............................................................................................................................... 38
Veolia Water Idaho ........................................................................................................................... 38
Telecommunications ............................................................................................................................ 42
Regulated Telecommunication Companies ...................................................................................... 42
Natural Gas ......................................................................................................................................... 44
Consumption and prices increased in FY2023 ................................................................................. 44
Individual Idaho Gas Utility Profiles .................................................................................................. 44
Natural Gas Consumption ................................................................................................................ 45
Natural Gas Demand ........................................................................................................................ 46
Natural Gas Prices ........................................................................................................................... 46
Natural Gas Production .................................................................................................................... 48
Renewable Natural Gas (RNG) ........................................................................................................ 49
Natural Gas Summary ...................................................................................................................... 49
Intermountain Gas Company ............................................................................................................ 50
Consumer Assistance .......................................................................................................................... 53
Complaints by Industry ..................................................................................................................... 53
Summary of Issues .......................................................................................................................... 54
Railroad Safety .................................................................................................................................... 55
Railroad Activity Summary ............................................................................................................... 55
Pipeline Safety ..................................................................................................................................... 56
Pipeline Safety Activity Summary ..................................................................................................... 56
Contact List .......................................................................................................................................... 57
December 1, 2023
The Honorable Brad Little
Governor of Idaho
Statehouse
Boise, ID 83720-0034
Dear Governor Little:
It is our distinct pleasure to submit to you, in accordance with Idaho Code §61-214, the Idaho Public Utilities
Commission’s 2023 Annual Report. This report is a detailed description of the most significant cases, decisions,
and other activities during 2023. The financial report on page seven is a summary of the Commission’s budget
through the conclusion of Fiscal Year 2023, which ended June 30, 2023.
It has been a privilege and honor serving the people of Idaho this past year.
Sincerely,
Eric Anderson
President, Idaho Public Utilities Commission
John R. Hammond, Jr.
Commissioner
Edward Lodge
Commissioner
Idaho Public Utilities Commission
COMMISSIONERS
Commission President Eric Anderson was appointed to his current
six-year term in January 2019 by Gov. Brad Little. It is his second term on the
Commission, having been initially appointed in December 2015 by former Gov.
C.L. “Butch” Otter.
Commissioner Anderson serves on the National Association of Regulatory
Utilities Commissioners (NARUC) Committee on Water as well as its Committee
on International Relations. In November 2019 Commissioner Anderson was
appointed Chair of NARUC’s Committee on Water.
Before joining the Commission, Anderson served five terms in the Idaho
Legislature, from 2004-2014, and was chairman of the House Ways and
Means Committee.
As a member of the Idaho House of Representatives, Anderson served on a
number of committees, including Environment, Energy and Technology,
Commerce and Human Resources, Resource and Conservation, Business, and
State Affairs. He also chaired a legislative Interim Subcommittee on Renewable
Energy.
-based
-Owned Utilities Association, the National Rural Electric
nd the Pacific Northwest Economic Region’s Executive Council.
was appointed to his first
term with the Idaho Public Utilities Commission by Governor Brad Little in
January of 2022.
Prior to being appointed to the Commission, John worked for the Idaho
Office of the Attorney General as a Deputy Attorney General and later
as the Commission’s lead Deputy Attorney General. During his career, John
was a partner at Fisher Pusch LLP in Boise. Prior to this John served as a
law clerk to the Hon. Terry L. Myers, United States Bankruptcy Judge for
the District of Idaho and as the pro se law clerk to the Federal District
Court for the District of Idaho.
Commissioner Hammond serves as the State of Idaho representative on the
Western Energy Imbalance Market Body of State Regulators (WEIM-
BOSR), Committee of State Representatives (COSR), a standing committee
of the Western Resource Adequacy Program (WRAP), the Committee on
Regional Electric Power Cooperation (CREPC) and the Committee on
Electricity with the National Association of Regulatory Utility Commissioners
(NARUC).
John earned his Bachelor of Science degree from the University of Idaho
and his Juris Doctor degree from the University of Idaho School of Law.
He is licensed to practice law in the state of Idaho.
Commissioner Edward Lodge was appointed to his first six-year
term with the Idaho Public Utilities Commission by Governor Brad Little in
February of 2023.
Before joining the Commission, Lodge served as a Policy Assistant and
Communications Director under Governor Philip Batt (1994-1998), Special
Assistant to Governor Dirk Kempthorne (1999), and as Government
Affairs Specialist for Connolly and Smyser, Chartered (1999-2004).
Lodge also served as Director of Government and Regulatory Affairs for
Qwest/CenturyLink (2004-2020).
Commissioner Lodge serves on the National Association of Regulatory
Utilities Commissioners (NARUC) Committee on Water.
Lodge received a Bachelor of Arts degree in Management and
Organizational Leadership from George Fox University in 2005 as well
as a Master of Business Administration degree from George Fox
University in 2008.
Commissioner Lodge serves as President of Lodge Cattle Company and
Random Ventures and sits on the Executive Board for Caldwell Night
Rodeo, Western Idaho Fair and the Western Heritage Foundation.
FINANCIAL SUMMARY
– 2023
Financial Summary - Fund 0229
Description FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Communication Costs 23,100 27,500 26,000 53,500
25,800
Employee Development Costs 95,400 51,300 41,600 64,300
88,100
Professional Services 35,800 7,500 17,600 47,000
55,500
Legal Fees 602,600 630,500 524,500 595,500
603,400
Employee Travel Costs 219,700 140,000 17,000 164,300
234,000
Fuel & Lubricants 7,700 7,300 3,400 5,800
7,500
Insurance 3,900 7,300 7,800 8,600
7,700
Rentals & Leases 76,100 390,600 250,500 250,500
281,000
Misc. Expenditures 1,663,500 969,000 241,400 143,800
201,700
Computer Equipment 5,300 2,200 89,500 14,000
11,800
Office Equipment - 39,000 2,200 5,400
2,900
Motorized/Non-Motorized
Equip - - 59,200 -
-
Specific Use Equipment 1,300 - - 1,500
1,200
Total Expenditures 6,725,200 5,849,000 4,636,900 4,972,800
5,726,400
Fund 0229-20 Appropriation 8,556,700 7,512,400 5,998,300 6,148,500
6,593,600
Fund 0229-20 Encumbrances 393,200 124,900 1,700 11,400 10,000
Unexpended Balance 1,438,300 1,538,500 1,359,700
1,164,300
857,200
COMMISSION STRUCTURE &
Under state law, the Idaho Public Utilities Commission (Commission or IPUC)
-owned utilities – electric, gas,
and water – assuring adequate service and affixing just,
Commission does not regulate publicly owned, municipal, or cooperative utilities.
Commissioners with confirmation by the Idaho Senate. No more than two
ers may be of the same political party. The Commissioners serve staggered six-year terms.
Commissioner before his/her term has expired for dereliction of duty, corruption or
-member Commission
Commission of the State of Idaho. In 1951 it was reorganized as the Idaho Public
Commission. Statutory authorities for the Commission are established in Idaho Code Titles 61 and 62.
Commission has quasi-legislative, quasi-judicial, and 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
affecting public utilities and the rail industry.
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. Decision meetings are typically
held once a week, usually on Tuesday.
Formal 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.
technical hearings and customer hearings. At technical hearings, formal parties who have been granted
-examination by attorneys from the other parties,
Staff attorneys and the Commissioners. At customer hearings, members of the public may testify before
Commission.
In 2009, the Commission began conducting
telephonic public hearings on a case-by-case
basis to save expense and allow customers to
listen from the comfort of their own homes.
Commissioners and other interested parties
gather in the 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.. Commissioners and attorneys may
also direct questions to those testifying.
Commission also conducts regular decision meetings to consider issues on an agenda prepared by the
Commission
Decision meetings consist of the Commission’s
Staff (Staff). Minutes of the meetings
Commission
. Under the Idaho Open Meeting Law,
ers may also privately deliberate
PUC hearing room
PUC headquarters 11331 W. Chinden Blvd.
Building 8, Suite 201-A, Boise, Idaho 83714.
COMMISSION STAFF
To help ensure its decisions are fair and workable, the Commission employs a Staff of about 55 people – engineers,
secretaries, and other support personnel. The Staff is
– administration, legal and utilities.
OUR MISSION
- Determine fair, just, and reasonable rates and utility practices for electric, gas, telephone, and
water consumers.
- Ensure that delivery of utility services is safe, reliable, and efficient.
- Ensure safe operation of pipelines and rail carriers within the state.
The Administrative Division is responsible for coordinating overall IPUC activities. The division includes the three
Commissioners, three policy strategists, the Commission Secretary, an Executive Director, and support personnel.
Commission
Commission budget and supervising fiscal, administration, public information, personnel, information systems, rail
Executive Director also serves as a liaison between the Commission and
Contact Maria Barratt-Riley, Executive Director, at 208-334-0337.
The Commission Secretary, a post established by Idaho law, keeps a precise public record of all Commission
Commission Secretary issues notices, orders and other documents to the proper parties and is the
Commission. Most of these documents are public records.
Contact Commission Secretary, at 208-334-0338.
The Policy Strategists are executive level positions reporting directly to the Commissioners with policy and technical
and natural gas. The Policy Strategists are also charged with developing comprehensive policy strategy,
issues before the Commission, public agencies, and organizations.
Contact Josh Haver, Policy Strategist, at 208-334-0351
-334-0354.
The Public Information Officer is responsible for public communication between the Commission, the general public
Commission workshops and public hearings.
Contact Adam Rush, Public Information Officer, at 208-334-0339.
Legal
Four deputy attorneys general are assigned to the Commission from the Idaho Office of the Attorney General and
have offices at IPUC headquarters. The IPUC attorneys represent the Staff in all matters before the Commission,
working closely with Staff auditors, engineers, investigators, utility analysts as they develop their recommendations for
cases and proceedings.
In the hearing room, attorneys help 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 Keri Hawker, Legal Admin Support, at 208-334-0324.
Utilities Division
The Utilities Division, responsible for technical analysis of utility matters before the Commission, is divided into four
sections; Audit, Engineering, Technical Analysis, Telecommunications, Consumer Assistance.
The Staff analyzes each petition, complaint, rate change 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.
Contact Terri Carlock, Utilities Division Administrator, at 208-334-0356.
The Audit section of six auditors and one program manager 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 Donn English, Accounting Section Program Manager, at 208-334-0362.
The Engineering section of two engineers, three utility analysts, and one program manager reviews the physical
operations of utilities. The Staff of engineers and analysts analyzes computer models of utility operations and
compares alternative costs to repair, replace and acquire facilities to serve utility customers. The group establishes the
price of acquiring cogeneration and renewable generation facilities, ensures the resources the Company acquires to
serve customers are prudent, identifies the cost of serving various types of customers, evaluate the adequacy of utility
services, and frequently help resolve customer complaints.
Contact Mike Louis, Engineering Section Program Manager, at 208-334-0316.
The Technical Analysis section of four utility analysts and one program manager determines the cost effectiveness of
all Demand Side Management (DSM) programs including energy efficiency and demand response. They identify
potential for new DSM programs and track the impact on utility revenues. They review utility forecasts of energy,
water, and natural gas usage with focus on residential self-generation and rate design.
Contact Taylor Thomas, Technical Analysis Program Manager, at 208-334-0363.
The Telecommunications section oversees tariff and price list filings, area code oversight, Idaho Universal Service
Fund, Idaho Telecommunications Service Assistance Program, Telephone Relay Service, and Lifeline. They assist and
advise the Commission on technical matters that include advanced services, 911 and other matters as requested.
Contact Johan E. Kalala-Kasanda, Utility Analyst 2, at 208-334-0361.
The Consumer Assistance section includes four division investigators and one program manager who resolve conflicts
between utilities and their customers. 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 Chris McEwan, Consumer Assistance Program Manager, at 208-334-0352.
Railroad Safety
The Railroad Safety 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 specialists inspect railroad crossings and rail clearances for safety and maintenance
deficiencies. The Rail Safety 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 Wayne Andrews, Rail Inspector, at 208-334-0317.
Pipeline Safety
The Pipeline Safety section oversees the safe operation of the intrastate natural gas pipelines in Idaho.
The Commission’s pipeline safety personnel verify compliance with state and federal regulations by performing on-
site inspections of intrastate pipeline distribution, gathering and transmission 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 are investigated and appropriate reports filed with
the U.S. Department of Transportation in a timely manner.
Contact Jeff Brooks, Pipeline Safety Program Manager, at 208-334-0333.
WHY CAN’T YOU JUST TELL THEM NO?
One of the most frequently asked questions the Commission receives after a utility files a rate increase application is,
“Why can’t you just tell them no?” Actually, we can, but not without evidence.
regulatory compact between utilities and
ies are
igh enough to attract investors for the utility’s capital-intensive
Commission must consider the needs of both the utility and its customers. The Commission
, to
e safe,
-saving, service for Idaho’s
-owned electric utilities to file annual
In light of these continued requests for rate increases, the Commission walks a fine line in
iscovery, presenting evidence, and cross-examining the company and other parties to the
Staff, which operates independently of the Commission, will also file its own comments that result from its
-member Commission
a utility, Staff, and intervening parties is presented and testimony from hearings and written
Commission can render a decision.
necessary to
prudently incurred, the Commission must allow the utility to recover that expense. The
can -- and often does --
Commission is confident, it has the legal justification to do so. Utilities and parties to a rate case have the right
Commission for reconsideration. Following reconsideration, utilities or customer groups can appeal the
’s decision to the Idaho Supreme Court.
Commission