20080520notice_of_application.pdf

Office of the Secretary
Service Date
May 20, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ATLANTA POWER COMPANY FOR AN
ORDER AUTHORIZING INCREASES IN
THE COMPANY'S RATES AND CHARGES
FOR ELECTRIC SERVICE IN THE STATE
OF IDAHO
NOTICE OF APPLICATION
CASE NO. ATL-O8-
YOU ARE HEREBY NOTIFIED that on May 1 , 2008, Atlanta Power Company
(Atlanta Power; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) requesting a general rate increase in the Company s basic tariff rates for electric
service together with a request for an emergency surcharge. Atlanta Power operates pursuant to
Certificate of Convenience and Necessity No. 236. Atlanta Power is located in Elmore County
and provides electric service to approximately 75 residential and commercial customers in
Atlanta. The Company requests that its Application be processed under Modified Procedure, i.
by written submission rather than by hearing. Reference Commission Rules of Procedure
IDAPA 31.01.01.201-204.
Emergency Surcharge
Atlanta requests that the Commission declare an emergency and approve a surcharge
on existing rates of 54.2% for an effective date of June 1 , 2008.
By way of background, Atlanta Power states the following:
By Order No. 30417 dated August 29, 2007 in Case No. ATL-07-, the
Idaho Public Utilities Commission authorized the Company to defer on its
accounting records the extraordinary costs incurred in the year 2007
associated with the failure of Atlanta Power s hydroelectric turbine. That
Order recognized that the Company would be filing additional
applications seeking recovery of the deferred extraordinary costs.
By Order No. 30511 dated March 3, 2008 in Case No. ATL-08-, the
Idaho Public Utilities Commission authorized the Company to incur debt
in the amount of $110 000. The Order recognized the need for the
Company to acquire cash to pay the extraordinary costs deferred pursuant
to Order No. 30417. Atlanta Power has determined that its loan
repayment obligations including loans from the Company s owners
require monthly payments of $3 088.66 per month for the first 12 months
and $2 206.01 per month for an additional 72 months. To fully recover
these repayment obligations over the term of the two notes comprising the
NOTICE OF APPLICATION
$110 000 incurred indebtedness, Atlanta Power contends that theCompany requires a surcharge on current rates of 54.2% for the first year
and 38.71 % for the remaining six years (or a surcharge of 33.74% for thefirst year and 24.1 % for the remaining six years at the tariff rates proposed
in the Company s Application).
General Rate Case
Atlanta Power is requesting an increase in its electric rate schedules to increase
revenues by 60.62%. The Company s current rates were approved by the Commission in Order
No. 24925 effective June 15, 1993. Nearly 15 years have elapsed since those rates were
established. Escalating those rates to produce the rates proposed in this Application, the
Company states, produces an annual growth rate of only 3.2%. The Company is proposing
numerous changes in the way it bills customers for their electric consumption.
The Company proposes that the Schedule 1 residential base rate be increased from
$81 per month to $83 per month (an increase of 2.5%), the 500 kWh free allowance be
eliminated and all consumption billed at $.10 per kWh, an increase of 100% from the current
05 per kWh rate.
The Company also proposes that the Schedule 2 commercial base rate be increased
from $144 per month to $165 per month (14.6% increase), the 500 kWh free allowance be
eliminated and all consumption being billed at $.20 per kWh, an increase of 11.1 % from the
current $.18 per kWh rate.
The Company further proposes to eliminate its Schedule 3 seasonal (weekend or part-
time use) customer rate schedule. Customers under this rate would be moved to, applicable
residential or commercial rate schedules. The current seasonal residential base rate would
change from $35 per month to $83 per month (137%) and the commodity rate would decrease by
52% from $.21 per kWh to $.10 per kWh. The seasonal commercial base rate would increase
from $65 per month to $165 per month (154%) and the commodity rate would decrease by 5%
from $.21 per kWh to $.20 per kWh.
The Company proposes to modify the language in its Rule 12b (Limitation of Use) to
clarify that the $10 per month charge approved by the Commission is for temporary connections
only of recreational types of vehicles (campers, motor homes and trailers) connected to the
service of a regular customer s electrical connection. All such piggyback connections served
through another customer s meter for a period greater than 30 days annually under the
NOTICE OF APPLICATION
Company s proposal will be treated as additional residential or commercial service. The effect
of this clarification and language is to increase the charge for such a connection from $10 to $82
(820%) per month if connected to a residential service and to $165 (1,650%) if connected to a
commercial service.
Atlanta Power proposes to change its Schedule 4 reconnection charges for residential
customers who voluntarily or involuntarily disconnect from the system for a period of more than
30 days from $200 to $335 (approximately 4 times the monthly base rate). Similarly, the
Company proposes to change the reconnection charge for commercial customers who voluntarily
or involuntarily disconnect from the system for a period of more than 30 days from $200 to $660
(approximately 4 times the monthly base rate). These changes, the Company contends, are
necessary to discourage customers from seasonally disconnecting from the system causing a loss
of revenue to the Company and resulting in upward pressure on rates to keep the Company
viable.
Atlanta also proposes to add new fees that are not currently approved by the
Commission. The Company requests that the Commission approve a new $20 fee to reprocess
and collect for checks returned by any bank for any reason. The Company also requests that the
Commission authorize it to collect late fees of 12% per annum (1 % per month) on past-due
accounts.
YOU ARE FURTHER NOTIFIED that Atlanta Power s revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable. IDAP A 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers both recurring and non-recurring are at issue, and every component of every existing
and proposed rate and charge is at issue. The Commission may approve, reject or modify the
rates and charges proposed and may find that rates and charges different from those proposed by
any party are fair, just, and reasonable. IDAP A 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groups and may approve, reject or modify existing or
NOTICE OF APPLICATION
proposed relationships among and between customer classes or rate groups.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges; abolish, create or reduce components of
rates and charges; abolish, reduce or create customer classes or rate groups; and abolish, reduce
or create absolute or relative differences among and between existing classes or rate groupings of
customers. IDAP A 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
servIce, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Company s Application, notice to
customers and supporting workpapers have been filed with the Commission and are available for
public inspection during regular working hours at the Commission offices, 472 West Washington
Street, Boise, Idaho. The Application is also available on the Commission s website at
www.puc.idaho.gov under "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that the Company has requested that all
communications with reference to this Application be served upon the following individuals:
Israel Ray
Atlanta Power Company
11140 Chicken Dinner Road
Caldwell, ID 83406
Telephone: [phone]
Robert E. Smith
2209 N. Bryson Road
Boise, ID 83713
Telephone: [phone]
E-mail: utilitygroup(fYyahoo.com
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code gg 61-502 , 61-622
and 61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF APPLICATION
DATED at Boise, Idaho this
blslN:ATL-08-02 sw
NOTICE OF APPLICATION
;2()+~day of May 2008.
~fJJe . Jewell
Co mISSIon Secretary
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