20210820Decision Memo.pdf

DECISION MEMORANDUM
TO:COMIVIIS SIONER KJELLAI\DER
COMMISSIONER RAPER
COMMISSIONER AIIDERSON
COMMISSION SECRETARY
COMI\{ISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: AUGUST 18,2021 Ar L- €- 2-r'ot
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 ldaho
Code $ 61 -301 . Ms. Drake asserts that she has been a resident of Atlanta, Idaho for 20 years.
BACKGROT]I{D
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 general/y 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
fuither 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 afrer 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:
IDECISION MEMORANDUM
l. File the verified returns it was required to file in20l7 and 2018 that show
its gross operating revenues for calendar years 2016 and2017;
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 $$ 6l-101 et seq. This amount consists of a $2,000
penalty under Idaho Code $ 6l-706, for each of six violations of the Idaho
Public Utilities Law.
Order No.34296 at7.
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.
1d. 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. 1d.
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
2DECISION MEMORANDUM
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:
l. 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 fuIl.
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 ldaho Code $ 6l-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 Staffs 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 l, 2021, respectively, under ldaho Code $ 61-1003.
Nor has the Commission received the Company's 2A20 annual assessment, nor an objection to the
assessment, one of which was due no later than May 15, 2021 under ldaho Code $ 6l-1005. A
copy of the Commission's Statement for the2020 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 ldaho Code $ 6l-405. Further, according to records from the Idaho
Secretary of State, the Company has been administratively dissolved. See ldaho Code $$ 3I-21-
602.r Staff has also been unable to contact Mr. Ray and mail sent to his last known address has
been returned as undeliverable.
I ldaho Code g 3l-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 3
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, fnc., Staff recommends that the Commission:
l. lssue 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 and2020.
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:
l. 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.
c
4DECISION MEMORANDUM
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 and2020.
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
Hammond Jr.
Attorney General
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5DECISION MEMORANDUM