20080730final_order_no_30603.pdf

Office of the Secretary
Service Date
July 30, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR
AUTHORITY TO IMPLEMENT A PILOT
PROGRAM FOR REMOTE DISCONNECTS
AND RECONNECTS ORDER NO. 30603
CASE NO. A VU-07-
Before the Commission is an Application by A vista Corporation ("A vista" or
Company ) seeking authority to implement a one-year pilot program for the remote
disconnection and reconnection of customers to its system. A vista has also requested a limited
waiver of Utility Customer Relations Rule 311.04 and 311.05 (IDAP A 31.21.01.311.04 and
311.05) related to the final customer notification prior to disconnection.
PROCEDURAL BACKGROUND
On September 19, 2007, the Commission issued a Notice of Application and Notice
of Modified Procedure, establishing a deadline for the submission of comments and/or protests.
Commission Staff filed comments supporting the Company s Application. AARP Idaho filed
comments opposing the Company s Application. Likewise, the Community Action Partnership
Association of Idaho ("CAP AI"filed comments opposing approval of the Company
Application as well as the Commission s use of Modified Procedure. Additionally, CAP AI
requested that the Commission convene a technical hearing and order a workshop regarding the
Company s proposal.
On December 4, 2007, the Commission deferred judgment on the Company
Application and ordered workshops to further refine and develop details of the pilot program.
See Order No. 30471. Thereafter, the parties communicated via e-mail and telephone and
addressed the following issues identified by the Commission:
1. The criteria for selecting customers for inclusion in the pilot program;
2. The distinction(s) between urban and rural customers and any links with
the Company s AMR distribution;
1 The aforementioned Customer Relation Rules have been renumbered in the interim between the filing of Avista
Revised Application and this Order. Rules 311.03 and 311.04 are now numbered 311.04 and 311.05. See infra Staff
Comments at 8.
ORDER NO. 30603
3. The notice, any special notice, and any customer education for those
selected for participation;
4. The plan for evaluation of the pilot, including both technological and
customer impacts;
5. Capital costs, cost recovery, reconnection fees, cost savings; and
6. The public interest issues pertaining to the elimination of a final, in-person
home visit and opportunity to "pay at the door" prior to disconnection.
See Order No. 30471 at 8.
Public workshops were originally scheduled for February 5 and 6, 2008, in Lewiston
and Coeur d' Alene, but were cancelled to allow the parties more time for discussion. On March
, 2008, a public workshop was held at the Commission s office in Boise during which the
parties reached a tentative agreement on most issues. Representatives from A vista, Commission
Staff CAP AI and AARP attended the workshop.At the conclusion of the workshop,
participants agreed to continue working informally on the issues of customer notification and
identification of the data to be collected during the course of the pilot.
On April 28 , 2008 , Avista submitted its Revised Application pursuant to Order No.
30471. On July 15 , 2008, the matter was fully submitted for the Commission s consideration
under its Rules for Modified Procedure. IDAP A 31.01.01.201-204.
On July 14 2008 , CAPAI submitted a Petition for Intervenor Funding. As of the date
of this Order, the Commission has not received an objection to or comment regarding CAP AI's
Petition.
COMPANY'S REVISED APPLICATION
The Revised Application purports to incorporate certain changes to the pilot program
agreed to during the March 2008 public workshop, as well as subsequent correspondence
between the parties. The Company proposes to install approximately 600 remote disconnect
collars which utilize Power Line Carrier (PLC) as the communication protocol. The devices
would allow for the remote enabling and disabling of electric service from Avista s office.
According to the Company s Revised Application, customers selected for the pilot would include
those customers with 200 amp services that meet at least one of the following additional criteria:
Premises where employee safety is a concern, i., customers who have
threatened to harm Avista employees or property, premises where there is
ORDER NO. 30603
a danger from animals, or premises that have an obstructed access to the
meter;
Customers who have previously had two field collection visits or
disconnection in the preceding 12 months; and
Excluded will be CARES customers, customers subject to the moratorium
who are on a winter payment plan; customers who have provided medical
certificates , or who have made satisfactory payment arrangements.
Revised Application at 3.
The Company states that the anticipated benefits of remote disconnect and reconnect
capability include: (1) reducing operating and maintenance expenses related to multiple
disconnections and reconnections for urban and rural accounts; (2) productivity gains of
employees by eliminating multiple trips to customer homes for collections; (3) enhancing
employee safety; (4) quicker response time to reconnect service leading to increased customer
satisfaction; and (5) recognizing a reduction in bill defaults and write-offs by encouraging
prompt consumer payment over time.
The Revised Application proposes the assessment of a reconnection fee of $12 during
normal business hours and $24 if reconnection is performed after hours. This represents a 50%
decrease in the reconnection fee proposed by A vista in its original Application. The Company
notes that the reasonable capital costs and avoided costs of this pilot program will be spread
across all rate classes in its next general rate case.
A vista affirmed its commitment to continue to comply with the Idaho Utility
Customer Relations Rules in the performance of disconnect/reconnect services for all of its
customers. However, the Company requests a waiver of IDAPA 31.21.01.311.03 and 311.04
during the term of the pilot program for those accounts included in the pilot program.
A vista states that whenever it installs a remote disconnection device it will "attempt
to personally contact the customer" and leave a document, referred to in the Application as a
special notice " containing a detailed description of how the remote disconnection device
operates. Id. at 5; see also Attachment B. If the customer is not present when the device is
installed, the notice document will be "left on the premises.Id. The Company s revised filing
contains an example of the "special notice.See id. A vista assures the Commission that it will
See supra footnote I.
ORDER NO. 30603
continue to follow what it refers to as its current notification process, but again requests that an
employee not be required to visit the premises prior to remote disconnection. See id. at 6.
A vista states that it has worked with interested parties in this case to identify the data
to be included in the Company s report at the conclusion of the pilot program. A vista states that
it will collect and evaluate the following data for the duration of the pilot program:
For Program Participants
ORDER NO. 30603
The total number of customers selected for the pilot by rate schedule
the reason for selection, and the month of installation of disconnection
device;
The total number of disconnect devices installed by type (TW ACS or
Nighthawk) and by month;
The total number of remote disconnections by month, rate schedule
and reason for disconnection (e., non-payment of bill or failure to
pay deposit);
The total number of customers by rate schedule who were remotely
disconnected during the pilot period:
a. Never
b. Once
c. Twice
d. Three or more times.
The total numbers of customers who were remotely disconnected and
received a LIHEAP benefit one or more times during the pilot period;
The total number of instances by rate schedule where a customer was
not reconnected within 24 hours following a remote disconnection;
By device type, the total number of instances where the disconnection
device failed to:
a. Disconnect a customer following remote activation; and
b. Reconnect a customer following remote activation.
By rate schedule, the minimum, maximum and average length of time
from remote disconnection to remote reconnection;
By rate schedule, in instances where the customer was disconnected
for non-payment, the minimum, maximum and average length of time
from when the customer paid or made satisfactory arrangements and
remote reconnection;
The total number and nature of inquiries, complaints , or comments
(negative or positive) received from customers who had a
disconnection device installed;
Detailed analysis of costs, cost savings, and non-monetary benefits of
pilot program; and
Any evidence that installation of the disconnection device influenced
customer behavior (positive or negative).
For non-participants
The average number of customers by rate schedule during pilot period;
The total number of disconnections by month, rate schedule, and
reason for disconnection (e., non-payment of bill or failure to pay
deposit);
The total number of customers by rate schedule who were
disconnected during the pilot period:
a. Once
b. Twice
c. Thee or more times
The total numbers of customers who were disconnected and received a
LIHEAP benefit one or more times during the pilot period;
The total number of instances by rate schedule where a customer was
not reconnected within 24 hours following disconnection;
By rate schedule, the minimum, maximum and average length of time
from disconnection to reconnection; and
By rate schedule, in instances where the customer was disconnected
for non-payment, the minimum, maximum and average length of time
from when the customer paid or made satisfactory arrangements and
reconnection.
Revised Application at 7-
ORDER NO. 30603
COMMENTS
AARP Idaho Comments
AARP is a non-profit membership organization for persons age 50 and over. AARP
has more than 184 000 members in Idaho. AARP submitted comments in opposition to Avista
original Application.
AARP actively participated in the workshops and other informal discussions with
A vista, CAP AI and Staff. AARP considers the Revised Application to be a "considerable
improvement over the original Application in terms of design and evaluation.AARP
Comments at 2. AARP believes that Avista s decision "to tighten the criteria for qualification
for the pilot and to exempt the most vulnerable customers (i., CARES enrollees) from the pilot"
is significant. Id.
AARP states that "although (they J are substantially in agreement with the Revised
Application, AARP would like to emphasize that our willingness to work with A vista to improve
the terms of the pilot should not be viewed as an endorsement of remote disconnection of
service.Id. AARP then went on to reiterate its concerns pertaining to customers who, when
faced with higher than normal utility bills
, "
often forego necessities such as food and medication
in order to pay bills.Id. AARP believes that "with remote disconnection, such payment will
not be available and therefore more households could lose service under the pilot than currently
do.
1. Comments on Revised Application
AARP sought clarification of the customer selection criteria on page 3 of Avista
Revised Application to ensure the language of the application accurately reflects the agreement
between the parties. In addition, AARP urged the Commission to adopt certain evaluation
criteria submitted to A vista and Staff on April 14, 2008.
A. Pilot Participants
The criteria A vista initially proposed for selecting customers for participation in the
pilot program was one of the key areas of concern for AARP. AARP's understanding is that
customers selected for the pilot would be comprised of the following groups: (1) where safety is
ORDER NO. 30603
an issue; or (2) customers with two or more field collection visits or two or more disconnections
in the previous 12 months.3 AARP supports Avista s decision to exclude CARES customers.
B. Evaluation of the Customer Impact
AARP requested that the Commission order A vista to keep records of the following
measurement and evaluation criteria so that the Commission can more accurately define the costs
of the program and determine whether the pilot program should be continued or abandoned:
1. More detailed tracking of LIHEAP customers.
2. Track CARES and age of customer.
3. The number of customers who are identified through the pilot program as
eligible participants for the CARES program and removed from the pilot.
4. The age of Avista s customers who rely on the field collection visit to pay
their bills. See id. at 5.
5. The age of Pilot Program participants "if it becomes known in the course
ofthe customer s contact with the company.Id.
6. The relative "costs of software, personnel and specific changes in
customer behavior.Id.
AARP expressed "the concern. . . that the current language (in Avista s Revised
Application) is far too broad and will not ensure that necessary information is available for the
(Commission s) evaluation.Id. AARP Idaho requests that the Commission "adopt the
clarifications and revised measurement and evaluation language proposed by AARP in its
consideration of Avista s Revised Application.Id.
CAPAI
CAP AI is a recognized community action agency assisting over 100 000 low income
and disadvantaged persons annually within the State of Idaho. As mentioned above, CAP AI
originally opposed Avista s pilot program for Remote Disconnections and Reconnections.
However, following the workshop and informal discussions with the Company, CAPAI felt that
3 AARP mentioned that while the Company s Revised Application utilizes the singular "disconnection" instead of
the plural "disconnection" it believes this to be a typographical error. AARP states that the parties' agreement was
for two field collection visits or two disconnections within a 12-month period and assumes that the Company "does
not intend that customers with one disconnection during the previous 12 months would be included in the pilot" Id.
ORDER NO. 30603
Avista had adequately addressed its concerns and "no longer opposes the pilot program.
CAP AI Comments at 2.
Staff Comments
Staff generally supports Avista s Revised Application for a limited waiver of the
appropriate Utility Customer Relations Rules (UCRR). Staff noted that effective April 2, 2008
the UCRR were amended and the sections in Rule 311 renumbered. The specific citations in
both the Company s original and Revised Application (Rules 311.03 and 311.04) are no longer
correct. The relevant rules are now numbered Rule 311.04 - Opportunity to Prevent Termination
of Service and 311.05 - Notice of Procedure for Reconnecting Service. Staff recommended that
a limited waiver be granted for Rules 311.04 and 311.05, IDAP A 31.21.01.311.04 and 311.05.
Although Staff generally supports the Company s Revised Application, there are a
few elements that are either unclear or lacking in detail. Staff proposed a more specific program
duration and clarification of when collars (the remote disconnection/reconnection devices) will
be installed and which customers will be excluded from the pilot.
Avista s Revised Application states that customers selected for the pilot must meet at
least one of three criteria. See Revised Application at 3. The second criterion states that
customers with at least two field collection visits or disconnections in the preceding 12 months
are eligible for selection. Id. Staff recommended that this criterion include additional language
specifying that collars will be installed on the third field collection visit within the preceding 12-
month period. (Emphasis added).
The Revised Application also proposes a pilot duration of 18 months from the time
the last collar is installed. See Revised Application at 3. Staff supports the extended pilot
period, but recommended a more definitive time period of 18 months from the date of a
Commission Order approving the pilot program.
Staffs comments addressed additional issues that were either previously mentioned
in Staff s original comments filed in this case or discussed during the public workshop.
In summary, Staff recommended that the Commission approve Avista s Revised
Application for a pilot program for the remote disconnection and reconnection of customers to its
system. Staff also recommended that the Commission grant a limited waiver of Rules 311.
and 311., UCRR, and that the Company be ordered to implement the following conditions to
its pilot program:
ORDER NO. 30603
1. The pilot program s duration be fixed at eighteen (18) months from the
effective date of a Commission Order approving the pilot program;
2. The collar allowing remote disconnection and reconnection of service be
installed at an eligible customer s premises in the event of a third field
collection visit or disconnection during the preceding twelve (12) month
period;
3. That CARES customers be automatically excluded from selection for
participation in the pilot program;
4. That Commission rules governing when and under what conditions a
customer s service can be disconnected continue to apply to all customers
selected for the pilot program; and
5. That the Company be directed to work with Staff to revise the "door
hanger" envelope used when leaving a Notice of Disconnection at a
customer s service location to include a description of the pilot program.
COMMISSION DECISION AND FINDINGS
Pilot Program
Based upon our review of Avista s Revised Application and the record in this case
we find that the parties have adequately addressed the initial concerns and questions expressed
by the Commission in Order No. 30471. Thus, we find that it is reasonable to allow Avista to
implement a pilot program for the remote disconnection and reconnection of its customers. We
find that a pilot program is necessary in order to ascertain whether the remote
disconnect/reconnect program proposed by A vista will in fact reduce its operating costs, enhance
employee safety and the overall quality of service to its customers. See Application at 4.
Thus, we approve A vista s Revised Application seeking authority to implement a
pilot program for the remote disconnection and reconnection of customers to its system.
Furthermore, we adopt the following Staff recommendations for the program s effective
implementation and operation: (1) the pilot program s duration shall be fixed at 18 months from
the effective date of this Order; (2) a customer shall be eligible for installation of a remote collar
allowing for the remote disconnection and reconnection of service upon the third field collection
visit or disconnection within a preceding 12-month period; (3) CARES customers shall be
excluded from participation in the pilot program; and (4) direct the Company to consult with
Commission Staff regarding the appropriate form and content of the language on the "door
ORDER NO. 30603
hanger" envelope to be used when leaving a Notice of Disconnection at a customer s service
location.
Upon the expiration of the 18-month approved term for the pilot program, Avista
shall prepare and file a detailed report with the Commission documenting its findings and
utilizing the data identified in its Revised Application, as well as any other useful and relevant
data which could be used to assess the effectiveness of the remote disconnect and reconnect
program in reducing the Company s overall operating costs, enhancing employee safety or
improving the quality of service to its customers. See id.
The Commission approves Avista s request for a limited waiver of Utility Customer
Relations RuleS 311.04 and 311.05 , IDAPA 31.21.01.311.04 and 311.05 , as they relate to
program participants during the approved 18-month term of the pilot program. Nevertheless
A vista shall continue to comply with all other applicable Utility Customer Relations Rules and
procedures.
Petition for Intervenor Funding
The Commission has reviewed CAPAI's timely Petition for Intervenor Funding and
finds that CAP AI has met the requirements as outlined in Idaho Code ~ 61-617 A and the
Commission s Rules of Procedure, 161-165. Pursuant to Idaho Code ~ 61-617A(2), the
Commission may order A vista to pay all or a portion of the costs of one or more parties for legal
fees, witness fees and reproduction costs, not to exceed a total for all intervening parties
combined of $40 000 in any proceeding before the Commission. The total requested by CAP
is $3 360.
Idaho Code ~ 61-617 A includes a statement of policy to encourage participation by
intervenors in Commission findings. The Commission determines an award for intervenor
funding based on the following considerations:
(a) A finding that the participation of the intervenor has materiallycontributed to the decision rendered by the Commission; and
(b) A finding that the costs of intervention are reasonable in amount and
would be a significant financial hardship for the intervenor; and
(c) The recommendation made by the intervenor differed materially from the
testimony and exhibits of the Commission Staff; and
ORDER NO. 30603
(d) The testimony and participation of the intervenor addressed issues of
concern to the general body of users or consumers.
Idaho Code ~ 61-617 A.
We find that CAP AI's Petition satisfies the substantive findings that we are required
to make to justify an award. IDAPA 31.01.01.165.01.a-e. We find that the participation of
CAP AI, specifically its filed comments, attendance and participation in the public workshop and
correspondence with Avista during the preparation of the Company s Revised Application
materially contributed to the Commission s decision. Thus, we herein grant CAP AI's Petition
for Intervenor Funding and award the amount of $3 360.
CONCLUSIONS OF LAW
A vista is an electric corporation as the term is defined in Idaho Code 9 61-119. The
Commission has jurisdiction over A vista Corporation, an electric corporation, and the issues
presented in this case pursuant to Title 61 of the Idaho Code, specifically Idaho Code 99 61-302
61-303 61-401 61-406 and 61-501.
ORDER
IT IS HEREBY ORDERED that Avista Corporation s Application seeking authority
to implement a pilot program for the remote disconnection and reconnection of customers to its
system is granted. Avista shall comply with the conditions placed upon the pilot program
implementation and day-to-day operation as they are more fully described above in this Order.
IT IS FURTHER ORDERED that Avista Corporation s request for a limited waiver
of Utility Customer Relations Rules 31.21.01.311.04 and 311.05 during the approved term of the
pilot program is granted.
IT IS FURTHER ORDERED that the Petition for Intervenor Funding filed by the
Community Action Partnership Association of Idaho is granted in the amount of $3 360. Idaho
Code 9 61-617 A. A vista is directed to pay said amount to CAP AI within 28 days from the date
of this Order. IDAP A 31.01.01.165.02. A vista shall include the cost of this award of intervenor
funding to CAP AI as an expense to be recovered in the Company s next general rate case
proceeding from the general residential customer class. Idaho Code 9 61-617 A(3).
ORDER NO. 30603
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) 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. Within seven (7) days
after any person has petitioned for reconsideration any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3CJ
day of July 2008.
MACK A. REDFORD , PRESIDENT
ATTEST:
Commission Secretary
O:A VU-O7-09 - np
ORDER NO. 30603