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Home My WebLink About4.20210824_jrh1.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: JOHN R. HAMMOND JR. DEPUTY ATTORNEY GENERAL DATE: AUGUST 18, 2021 SUBJECT: MARY DRAKE’S FORMAL COMPLAINT AGAINST ATLANTA POWER COMPANY On July 2, 2021, Mary Drake filed a formal complaint against Atlanta Power Company, Inc., (“Company”) alleging that the Company is failing to provide adequate service citing Idaho Code § 61-301. Ms. Drake asserts that she has been a resident of Atlanta, Idaho for 20 years. BACKGROUND Ms. Drake filed a formal complaint in Case No. ATL-E-18-01 alleging that the Company was not providing safe and adequate service to its customers. Several other complaints from residents of Atlanta, Idaho were registered with the Commission in the spring of 2017 about the safety and adequacy of the utility service provided by the Company. See generally Order No. 33988 at 1. The Commission ordered the Company to respond to Ms. Drake’s complaint and ordered Staff to: [C]onduct an investigation into the service reliability, maintenance and operations, and customer relations of Atlanta Power Company. Staff shall provide a report and recommendations to the Commission for further action no later than July 31, 2018. Order No. 33988 at 2. The history of issues with the Company’s service is lengthy. For this Decision Memorandum Staff focuses on the most recent Commission Orders about the Company. On April 2, 2019, the Commission issued Order No. 34296 after a show cause hearing directing the Company to take certain actions and imposing civil penalties on it for violations of the Idaho Public Utilities Law. Specifically, the Commission required the Company to: DECISION MEMORANDUM 2 1. File the verified returns it was required to file in 2017 and 2018 that show its gross operating revenues for calendar years 2016 and 2017; 2. Pay $103 in past due regulatory fees and interest (i.e., the statutory minimum of $50 per year for calendar years 2016 and 2017, with $3 in interest); and 3. Pay $12,000 in civil penalties for violating the Idaho Public Utilities Law, Idaho Code §§ 61-101 et seq. This amount consists of a $2,000 penalty under Idaho Code § 61-706, for each of six violations of the Idaho Public Utilities Law. Order No. 34296 at 7. On August 16, 2019, the Commission issued Order No. 34420 that vacated the $12,000 penalty to avoid disrupting a possible mutually agreed upon sale between the Company and the Atlanta Electrical Co-op, Inc. for the Company’s assets. Order No. 34420 at 3. The Commission also reiterated though that the findings of fact and conclusions of law in Order No. 34296 continued to be valid. Id. The Commission also found that if the sale does not go through, it had numerous tools at its disposal to ensure that the Company fulfills all of its duties as a regulated public utility. Id. Those duties include but are not limited to: providing safe and reliable service, complying with the National Electric Safety Code, responding to customer complaints in an adequate and timely manner, filing annual reports (both past due and on an ongoing basis), providing non- discriminatory service throughout its service area, and complying with audit and production requests from Commission Staff. Id. Last, the Commission stated that it intended to closely monitor the Company, as long as it remains a regulated public utility, to guarantee that the Company meets its obligations to its customers. Id. FORMAL COMPLAINT Ms. Drake asserts that she has been a resident of Atlanta, Idaho for 20 years and is a customer of the Company. Ms. Drake states she knows of previous complaints about the services provided by the company, and the Commission’s Final Order No. 31086. Ms. Drake asserts historical evidence about the power outages that occur on the Company’s system. Ms. Drake alleges that the Company is not complying with the Commission’s Final Order No. 31086 that orders the Company “to continue to monitor the power concerns. If the power concerns are not mitigated, then the staff and company will advise the commission on appropriate course of action.” See Order No. 31086 at 4. Ms. Drake asserts that in the seven years following issuance of Order No. 31086 power outages are still occurring. Ms. Drake states these outages harm the safety of DECISION MEMORANDUM 3 Atlanta residents, due to needing access to electronic devices for emergencies, drinking water (for those with electronic water pumps), and access to healthy food (lack of refrigeration during power outages). Ms. Drake also makes the following assertions regarding the Company’s operations: 1. Ms. Drake alleges that Israel Ray, the owner of the Company has hired no one to be available to diagnose and fix issues during power outages, particularly when he is not in Atlanta. Ms. Drake further asserts that Mr. Ray generally cannot be located during power outages. 2. Ms. Drake asserts that although the Company has a generator it does not function in cold weather. 3. Ms. Drake asserts that the Company does not have a telephone number to call for assistance during power outages. The only telephone number available is for Israel Ray but his message inbox is always full. 4. Ms. Drake asserts that the Company’s level of service and Mr. Ray’s neglect show a blatant disregard to customers and violates the Company’s duties under Idaho Code § 61-302. Ms. Drake concludes that after many years of issues with Atlanta Power there seems to be no resolution. Ms. Drake contends that if something gets fixed, it is temporary. Ms. Drake asserts that the time is now to hold the Company accountable. STAFF RECOMMENDATION According to Staff’s records, the Idaho Public Utilities Commission (“Commission”) did not receive the Company’s verified Gross Intrastate Operating Revenue reports for 2019 or 2020, which were due April 1, 2020 and April 1, 2021, respectively, under Idaho Code § 61-1003. Nor has the Commission received the Company’s 2020 annual assessment, nor an objection to the assessment, one of which was due no later than May 15, 2021 under Idaho Code § 61-1005. A copy of the Commission’s Statement for the 2020 annual assessment is included. The Company also has not filed an Annual Report since 2007. Filing an Annual Report is mandatory for every public utility in Idaho under Idaho Code § 61-405. Further, according to records from the Idaho Secretary of State, the Company has been administratively dissolved. See Idaho Code §§ 31-21- 602.1 Staff has also been unable to contact Mr. Ray and mail sent to his last known address has been returned as undeliverable. 1 Idaho Code § 31-21-602(c) provides that a corporation that is administratively dissolved “continues its existence as the same type of entity but may not carry on any activities except as necessary to wind up its activities and affairs and liquidate its assets.” DECISION MEMORANDUM 4 Staff believes that based on the Commission’s continued receipt of customer complaints on issues that the Commission has previously ordered the Company to address, the Company’s continued non-compliance with basic regulatory requirements, the inability to contact the Company or its owner Mr. Ray, and the Company’s lack of communication with the Commission regarding the status of the possible transaction to transfer the system to Atlanta Power Cooperative, Inc., Staff recommends that the Commission: 1. Issue a Summons to the Company requiring it to respond to the allegations raised by Ms. Drake’s Formal Complaint. 2. Issue an order to show cause requiring the Company to show cause why the Commission should not: a. Reimpose the penalty the Commission imposed on the Company in Order No. 34296. This penalty was vacated because a transaction transferring the system to Atlanta Power Cooperative, Inc. would be completed. That appears to have not occurred. The Company’s response should explain the status of the proposed transaction discussed in Order No. 34420. b. Impose additional penalties on the Company for its failure to comply with Commission requirements to pay its annual assessments and submit its annual GIOR for 2019 and 2020. c. Impose additional penalties on the Company for failure to keep its contact information updated with the Commission. a. Open a new investigation to determine whether the Company is providing safe and adequate service to its customers and to consider whether the Company should make repairs and necessary improvements to its system. d. Seek the appointment of a receiver or other similar relief to operate the Company due to its continued failure to comply with the Commission’s regulatory authorities. e. Impose any additional requirements on the Company. COMMISSION DECISION Does the Commission wish to: 1. Issue a Summons to the Company requiring it to respond to the allegations raised by Ms. Drake’s Formal Complaint and provide Ms. Drake and Staff the opportunity to provide comments on the Company’s response. DECISION MEMORANDUM 5 2. Issue an order to show cause requiring the Company to show cause why the Commission should not: a. Reimpose the penalty the Commission imposed on the Company in Order No. 34296. This penalty was vacated because a transaction transferring the system to Atlanta Power Cooperative, Inc. would be completed. That appears to have not occurred. The Company’s response should explain the status of the proposed transaction discussed in Order No. 34420. b. Impose additional penalties on the Company for its failure to comply with Commission requirements to pay its annual assessments and submit its annual GIOR for 2019 and 2020. c. Impose additional penalties on the Company for failure to keep its contact information updated with the Commission. d. Open a new investigation to determine whether the Company is providing safe and adequate service to its customers and to consider whether the Company should make repairs and necessary improvements to its system. e. Seek the appointment of a receiver or other similar relief to operate the Company due to its continued failure to comply with the Commission’s regulatory authorities. f. Impose any additional requirements on the Company. ___________________________________ John R. Hammond Jr. Deputy Attorney General I:\Legal\ELECTRIC\ATL-E-21-01\Drake Complaint\Drake_dec memo_jrh.docx