20040302Comment.pdf

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St. Maries School District #41
Phone: [phone]
Fax: [phone]
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622 College Avenue, P.O. Box 384, St. Maries, ill 83861
February 24, 2004 c:::.
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Idaho Public Utilities Commission
Attn: Jean Jewell
472 West Washington Street
O. Box 83720
Boise, ill 83720
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RE: Case AVU, E, 04
Dear Ms. J ewdl
Weare writing in reference to Case A VU, E, 04, 1 in which A VISTA Utilities is
requesting an eleven percent (11 %) increase.
The utility companies that service our area are A VISTA Utilities and Clearwater
Power. These companies bill the District under Schedule 21 billing. Under this billing
we are charged a "usage fee" and a "demand charge." The "demand charge" is basedupon the highest kilowatt usage at anyone time during the day.
In our opinion the "demand charge" is actually a penalty, and a double charge by
utility companies for our usage. A VISTA invoice shows we pay approximately seven
cents per kilowatt. For usage on the "demand charge" invoice we are payingapproximately $3.00 per Kilowatt. Each utility company has their own formula forcalculating the "demand charge" so each invoice is different.
It is very hard to explain the "demand charge" and we won t get into detail. Thebottom line is all Idaho school districts pay this penalty to the utility companies eachmonth. In our District, out of $123 000 paid in 2003 to the utility companies, $40 000was for the "demand charge." Each school district we have contacted is in th~ sonnesituation. The Coeur d' Alene School Distnct paid approximately $400 000 in "demandcharges" in 2003.
The majority of large companies have the same billing schedule. The moremachines or equipment they operate at once, the more they pay in "demand charges , thesame as with schools. The difference between independent companies and school
districts is the companies are producing a product to sell for profit. The school districtsare supported by tax dollars and have no way of recovering losses.
A large portion 0 f tax do lIars that should be going towards educating our childrenis going to utilities companies in extra fees.
Committed to Quality Education
Idaho Public Utilities Commission
February 24, 2004
Page 2
We feel the utility companies should come up with a mor~ equitable way of
billing for utility services in Idaho school districts. We should not be classified in the
same category as a profit making corporation.
We hope you take this letter into consideration when negotiating with utilities
companies. If a more reasonable formula for billing the Idaho school districts can be
reached, all children and citizens in Idaho will benefit.
Sincerely, ttJ~
Rodney Wolfe, Maintenance Supervisor
St. Maries Joint School District No. 41
St. Maries, ill 83861