20080610Comments Replacement Pages.pdf

IDAHO
PUBLIC UTiliTIEScommission
C.L. "Butch" Otter, Governor
P.O. Box 83720, Boise, Idaho 83720-0074
TO:PARTIES OF RECORD
COMMISSION SECRETARY
Mack A. Redford, President
Marsha H. Smith, Commissioner
Jim Kem~n, C~misSioner
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FROM:SCOTT WOODBURY
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DATE:JUNE 10, 2008 ç-c.
SUBJECT: REPLACEMENT PAGES FOR STAFF COMMENTS SUBMITTED
JUNE 5, 2008 IN CASE NO. ATL-E-08-2.
In the Comments of the Commission Staff dated June 5, 2008, page 6, RATE DESIGN,
paragraph 2, in the last sentence the number 30,048 has been replaced with the number 27,669,
and the percentage of 14% has been replaced with 13%.
On page 6, RATE DESIGN, paragraph 3, in the sentence that reads, "This adjustment
increases the customer count by 2, approximately 3%, and kWh by 5,512 which is a 3% increase
over 2006 amounts." The number 5,512 has been replaced by the number 5,443. Also in
paragraph 3, in the sentence that reads, "The two adjustments together change the Company's
revenue under present rates from the Company proposed amount of$68,389 to $73,407." The
number $73,407 has been replaced by $74,750.
On page 6, RATE DESIGN, paragraph 4, in the sentence that reads, "The percentage
increase that produces the $23,302 of surcharge revenue requirement proposed by the Staff is
31.74%." The percentage of 3 1 . 74% has been changed to 31.2%.
On page 7, STAFF RECOMMENDATIONS, paragraph 1, in the first sentence the
percentage of 3 1 .74% has been changed to 31 .2%.
Attachment A to the Comments has been replaced by Revised Attachment A. Revised
Attachment A reflects the number and percentage changes made above.
The above changes correct a calculation error.
~slÆi~
Deputy Attorney General for Commission Staff
Located at 472 West Washington Street, Boise, Idaho 83702
Telephone: [phone] Facsimile: [phone]
RATE DESIGN
The Commission Staff has reviewed the Company's proposed rate design calculations.
F or the purose of rate design, the Company used calendar year 2007 customers and customer
usage.
Staff proposes two types of adjustments to the rate design data presented by the
Company. First, the Staff proposes the use of2007 numbers of bils applied to 2006 average use
per customer by rate schedule. Staff proposes this adjustment to adjust for anomalous usage
experienced by the Company during the summer of 2007 when the Company's hydro power
system was not in service and power from the back-up diesel generator was only available par
time. Tils adjustment increases kWh by 27,669 which is a 13% increase over 2006 amounts.
Second, the Staff proposes the addition of two customers to the biling data. The two
customers are the Company owner and the person who operates and maintains the power system.
Neither person is biled but both are provided power as partial compensation for the service they
provide to the Company. Staff proposes that the owner be assigned to Schedule 3 and the other
individual, who lives in Atlanta full time, be assigned to Schedule 1. This adjustment fairly
spreads a portion of the Company's emergency surcharge revenue requirement to these
customers and reduces the revenue requirement responsibility of all other customers. This
adjustment increases the customer count by 2, approximately 3%, and kWh by 5,443 which is a
3% increase over 2006 amounts. The two adjustments together change the Company's revenue
under present rates from the Company proposed amount of $68,389 to $74,750.
F or the emergency surcharge portion of tils case, Staff proposes that the increased
revenue requirement be recovered by a uniform percentage increase applied to all tariffed rates
except the new customer connection charge and the meter testing charge. The percentage
increase that produces the $23,302 of surcharge revenue requirement proposed by the Staff is
31.2%. Attchment A shows that the proposed increase recovers the Staffs surcharge revenue
recommendation. Staff recommends that the Company continue to calculate customer bils
under curent base rates and then calculate and add the surcharge, which would be shown on a
separate line, to get the final bil. The Staff recommends that a new schedule be created that
specifies the surcharge percentage and states that it applies to all tariffed rates except the two
rates previously specified.
REVISED STAFF COMMENTS 6 JUE 10, 2008
STAFF RECOMMENDATIONS
Staff recommends approval of a 31.2% temporar emergency increase to all tariffed
rates except the new customer connection charge and the meter testing charge effective as soon
as possible following issuance of the temporary emergency surcharge Order, subject to refud (if
necessary) once the Commission issues a final Order in the Atlanta Power general rate case, Case
No. ATL-E-08-2.
Staff recommends that the prudency of the extraordinar expenditures necessitating the
loan payments be determined contemporaneously with the review of the Company's costs and
records supporting its request for a general base rate increase in this case and that the owners be
solely responsible for repayment of any portion of these Notes that are disallowed in the rate
proceeding. Staff recommends that the issue of a surcharge, its amount and treatment be
revisited at that time.
Staff recommends that the Company bil the emergency surcharge approved by the
Commission on a separate line on its customers' bils. To ensure that an adequate record is
maintained in case the emergency surcharge or a portion thereof is refuded, Staff recommends
the Company maintain a record of surcharge payments by each individual customer and record
those payments in a separate account on its books.
Staff recommends that a new schedule be created that specifies the surcharge percentage
and the rates to which it applies.
Respectfully submitted this
/o1'ay of June 2008.
cx;;ü~Scott Woodbur
Deputy Attorney General
Technical Staff: Keith Hessing
Patricia Harms
Nancy Hylton
i:/umisc/comments/atle08.2swkhphnh rev 6 & 7 & Attach A
REVISED STAFF COMMENTS 7 JUE 10, 2008
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