20100513final_order_no_31086.pdf

Office of the Secretary
Service Date
May 13 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ALLEN LAKE,
CASE NO. ATL-09-
COMPLAINANT,
ORDER NO. 31086
ATLANTA POWER COMPANY,
RESPONDENT.
In April 2009, Allen Lake filed an informal complaint against Atlanta Power
Company alleging that the electric power he was receiving would not properly operate his new
dishwasher. Atlanta Power serves the rural community of Atlanta with a small hydroelectric
facility on the Middle Fork of the Boise River. Attempts at resolving the complaint informally
were unsuccessful. On November 6, 2009, Mr. Lake filed a formal complaint against Atlanta
Power. Rules 23-, IDAPA 31.01.01.023 and .024. On November 27 2009, the Commission
issued a Summons to Atlanta Power.
On December 15, 2009, the Company submitted a timely response to the complaint.
On February 17, 2010, the Commission Staff filed comments. Mr. Lake filed a response to
Staffs comments on February 23 , 2010. Having fully developed the record in this matter, the
Commission issues this Order.
THE COMPLAINT
Mr. Lake asserted he had the appliance supplier go through the dishwasher and
replace the controls and when that did not improve the situation, the supplier completely
replaced the dishwasher. The problem persisted. At that point he and the supplier determined
that the problem was associated with the quality of power being provided by Atlanta Power
Company. Staff had several conversations with the customer and Israel Ray, the President of
Atlanta Power, to determine a course of action to address the problem. The Staff determined that
a power quality analysis would be required to more specifically define the problem. In the
process of determining who could do such a review and what the cost would be, two Idaho
Power Company power quality engineers volunteered to do the study on their own time. The
study was conducted on August 28 2009, and a brief report was provided to the parties.
ORDER NO. 31086
A. The Power Quality Report
The report addressed several safety and power quality issues. One of the findings
identified in the report was that the "frequency" of the alternating current in the Atlanta Power
system varied approximately 10 cycles per second (cps) around an ideal 60 cps. Also, when the
frequency dropped below 59 cps, the voltage dropped off significantly. Based upon these
results, Staff believed that this frequency fluctuation and accompanying voltage drop was the
power quality problem that was causing the dishwasher to malfunction.
The utility s system controls operate based on system frequency measured in cycles
per second (cps). A perfect system operates at 60 cps. The system voltage and current output is
at 60 cps only when the turbine and generator turn at a constant speed - their design speed.
Increases or decreases in system electrical load tend to speed up or slow down the turbine and
generator unless water flow into the turbine is proportionally adjusted simultaneously to
compensate for the load change. Water flow into the turbine is controlled by incrementally
opening or closing the turbine s wicket gates. The timing difference between load change and
wicket gate operation causes increases or decreases in turbine and generator speed and frequency
fluctuation.
The existing control system allows the operator to set high and low frequencies
(above and below 60 cps) which cause a motor to open or close the wicket gates incrementally.
The chain that connected the motor shaft to the wicket gate shaft had some play in it that was
slowing the machine s response to these frequency variations. Mr. Ray proposed to have a
tensioner" built to tighten the chain and reduce the response time to frequency changes. The
process of designing, building and installing the tensioner took a few months.
Two things happened before the tensioner was installed. First, Atlanta Power
provided Mr. Lake with a plug-in meter that allowed him to monitor frequency at his home. He
quickly determined that it was high frequency, not low frequency, that was turning off his
dishwasher. But it was still a frequency-related problem and reducing system response time to
frequency fluctuations still seemed like the correct thing to do. Second, Mr. Lake became
concerned that Atlanta Power might not do anything about his dishwasher problem.
After the tensioner was built and installed, the initial tests of the dishwasher showed
or seemed to show some improvement. However, after a short period of time, Mr. Lake asserted
that there had been little change.
ORDER NO. 31086
ATLANTA POWER'S ANSWER
Atlanta Power filed its Answer on December 15 2009. In its Answer, Atlanta Power
noted that the installation of the tensioner did improve the response time of the governor.
Although the new tensioner seemed to stabilize the Company s voltage changes, Mr. Ray stated
that the Company needs more time to fine-tune the governor.
Given Atlanta Power s small system, large electric motors may cause a significant
fluctuation in the load. Mr. Ray related that during a recent IS-minute period, he watched the
ampere gauge fluctuate from 29 amps to more than 39 amps. He calculated that this increase
represents a 25% load change within 15 minutes. Id The Company committed to continue to
work on the problem. On December 28 2009, Mr. Lake responded to Atlanta Power s Answer
saying that the frequency problem still existed.
STAFF COMMENTS
Staff filed comments on February 17, 2010. Staff noted that Mr. Ray said that he
plans to continue to work on the problem. One of the things that he may do next is to heat the
chain drive system previously discussed. The chain drive is exposed to outside air temperatures.
It seems that after the tensioner was installed and before the weather turned cold, there were
fewer dishwasher problems. Possibly the lubricants thickened on the chain drive in colder
weather and offset the gains in response time the new tensioner provided.
1. Individual Solution. The Staff also identified two other solutions and discussed
them with Mr. Lake and Mr. Ray. First, a double conversion uninterruptible power supply
(UPS) could be purchased and installed on the dishwasher circuit in Mr. Lake s home. A double
conversion UPS would convert Atlanta Power s AC electricity to DC, store it in batteries, then
convert it back to perfect wave form 60 cps AC power using an inverter. The UPS system costs
approximately $2 000. This solution would solve power quality concerns on one circuit for one
customer. Although Mr. Lake is the only complainant in this case, Staff believes all Atlanta
Power customers may be experiencing the same fluctuations even though their electrical
equipment continues to function. The Staff is aware of one other customer who has experienced
problems similar to Mr. Lake.
Staff stated that it does not believe Atlanta Power should invest in a double
conversion UPS for Mr. Lake s dishwasher circuit.Such an investment would establish a
precedent that may require Atlanta Power to make other such purchases to meet the needs of
ORDER NO. 31086
other customers who may be experiencing power quality problems. It would not take very many
000 investments before the Company s total investment would equal or exceed the cost of
solving the power quality concern for all customers.
2. System Solution. The other solution - replacing the turbine/generator control
system - would be more expensive but would improve power quality for all customers on the
entire system. As previously discussed, the current control system does not begin to respond
until a high or low frequency set point is exceeded. A more accurate control system would
detect when the frequency was beginning to change and adjust the wicket gates more quickly and
in smaller increments instead of waiting to respond until the system is substantially above or
below 60 cps. The Staff s rough estimate of the cost of replacing the control system is $15 000
to $25 000.
The second solution is costly. Atlanta Power s electric rates are very high relative to
other electric rates in Idaho. Atlanta Power customers currently pay an average of 44.3~/kWh.
Other Idaho customers pay less than 10~/kWh. The Commission established the rates in Order
No. 30704 (Case No. A TL-08-02) to provide the Company with the revenue necessary to
operate the system. Some customers have disconnected from the system as a direct result of the
last rate increase, including Atlanta Power s single largest customer. The Staff is very concerned
that further increases in Atlanta Power s electric rates could result in other customers leaving the
system. Staff s hope throughout this investigation has been that a no-cost or very low-cost
solution could be found. In Staffs view the cost of replacing the turbine/generator controls does
not qualify as low cost.
The Staff acknowledged that the power quality problem that Mr. Lake is experiencing
is real. The Staff further understands that all other Atlanta Power customers are being exposed
to the same fluctuating power quality and that some electrical appliances may experience
shortened lives as a result. It is likely that this has been the situation on Atlanta Power s system
since its inception in the early 1980s. While this is not a desirable situation, an investment
requiring a rate increase is less desirable. In Staffs opinion, the loss of more customers, which
may occur with even a small rate increase, could jeopardize the financial viability of the
Company and potentially end central system power service in Atlanta.
3. Staff Recommendations. F or the reasons stated above, the Staff proposed the
following approach to resolve the power quality problem in Atlanta. First, the Commission
ORDER NO. 31086
should take Mr. Ray up on his expressed willingness to continue to pursue very low-cost
solutions to system and customer specific power quality concerns. Second, in November of2011
the Company is scheduled to extinguish a loan that is costing the Company approximately
460 per month. If there have been no significant changes in the Company s financial position
as of November 2011 , $1 460 per month could be available to address any remaining power
quality issues on the system without increasing rates. Staff proposed that when the next
maturing loan is paid off, the financial position of Atlanta Power be evaluated. Following such
an evaluation, the Staff recommended the Commission implement a plan to resolve any
remaInIng system power quality concerns without increasing rates above present levels, if
possible.
MR. LAKE'S REPLY
On February 23 2010, Mr. Lake replied to Staffs comments. While he appreciated
the efforts of Staff and the "financial challenges" of finding a solution, he believes Atlanta Power
has an obligation to provide good service. He "can support" the Staff s recommendation if the
Commission maintains oversight of the utility when the loan is paid off in late 2011. If service
has not improved by then, he expects "the PUC to once again become involved to enforce the
recommended updates to the (utility) equipment in question.
DISCUSSION AND FINDINGS
Having reviewed the comments of the parties, we find there is sufficient evidence in
the record for the Commission to decide this complaint. The Commission has jurisdiction to
hear and decide this dispute pursuant to Idaho Code ~~61-503 , 61-507, and 61-612.
Atlanta Power s delivery of services and its rates present a regulatory challenge.
Requiring the Company to implement costly measures to address the frequency problems in this
complaint would increase the Company s expenses. This, in turn, would put upward pressure on
rates and might cause customers to leave the system. Order No. 30704 at 27. As we indicated in
the Company s last rate case
, "
As rates increase to recover. . . costs, more customers may drop
off the system and the viability of the utility is compromised.
While not completely satisfied with the interim corrections that the Company has
made to date, Mr. Lake indicated that he "can support" Staffs recommendation. Consequently,
we find it reasonable to adopt Staffs two recommendations. First, the Company shall continue
to monitor and evaluate the power quality problem and implement low-cost solutions where
ORDER NO. 31086
appropriate. Second, when the Company extinguishes its loan in November 2011 and if the
power quality problem persists, then the Company and Staff will evaluate whether the "system
solution should be implemented and advise the Commission accordingly. The Commission also
directs the Staff to periodically contact Mr. Lake and the Company to monitor the power quality.
Given the agreement among the parties, we find it reasonable to adopt Staffs recommendation
and to dismiss this complaint at this time without prejudice.
ORDER
IT IS HEREBY ORDERED that this complaint against Atlanta Power Company be
dismissed without prejudice.
IT IS FURTHER ORDERED that Atlanta Power and Commission Staff continue to
monitor the power quality concerns. If the power quality issues are not satisfactorily mitigated
by November 1 , 2011 , then Staff and the Company will advise the Commission on an
appropriate course of action.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this case may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order or in interlocutory Orders previously issued in this case. Within
seven (7) days after any person has petitioned for reconsideration, any other person may cross-
petition for reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 31086
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3
f-I'
day of May 2010.
~ff.
. K , P SIDENT
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MARSHA H. SMITH, COMMISSIONER
ATTEST:tl~. J. D. Jewel
Commission Secretary
bls/O:ATL-O9-
ORDER NO. 31086