20100205Decision Memo.pdf

DECISION MEMORANDUM - 1

DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 29, 2010

SUBJECT: AVISTA’S REQUEST FOR A 90-DAY EXTENSION OF THE
COMMISSION APPROVED WAIVER OF IDAPA 31.21.01.311.03 AND
311.04 (UTILITY CUSTOMER RELATIONS RULES) FOR ITS REMOTE
DISCONNECT AND RECONNECT PILOT PROGRAM, CASE NO. AVU -
E-07-09

PROCEDURAL BACKGROUND
On August 31, 2007, Avista Corporation (“Avista” or “Company”) filed an
Application seeking approval to implement a pilot program for the remote disconnection and
reconnection of customers to its system. Avista also requested a limited waiver of Utility
Customer Relations Rule 311.03 and 311.04 (IDAPA 31.21.01.311.03 and 311.04) related to the
final customer notification prior to disconnection. The Company requested that its Application
be processed through Modified Procedure. IDAPA 31.01.01.201-.204.
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. The American
Association of Retired People, Idaho (“AARP”) filed comments opposing the Company’s
Application. Likewise, the Community Action Partnership Association of Idaho (“CAPAI”)
filed comments opposing approval of the Company’s Application as well as the Commission’s
use of Modified Procedure. Additionally, CAPAI requested that the Commission convene a
technical hearing and order a workshop regarding the Company’s proposal.
DECISION MEMORANDUM - 2

On December 4, 2007, the Commission deferred judgment on the Company’s
Application and ordered workshops to further refine and develop details of the pilot program.
See Order No. 30471.
On March 27, 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
Avista, Commission Staff, CAPAI 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. The Revised Application incorporated certain changes to the pilot program agreed to
during the March 2008 public workshop as well as subsequent correspondence between the
parties.
On July 30, 2008, the Commission approved Avista’s Application to implement an
18-month pilot program and ordered that, upon completion of the pilot program, the Company
shall prepare “a detailed report with the Commission documenting its findings. . . .” Order No.
30603 at 10.
On January 28, 2010, Avista submitted a letter to the Commission requesting that its
limited waiver of IDAPA 31.21.01.311.03 and 311.04 (Utility Customer Relations Rules)
granted for the purpose of implementing its remote disconnect and reconnect program be
extended until April 30, 2010 while the Company compiles the Commission-mandated report
documenting the results of the pilot program.
AVISTA’S REQUEST
Avista notes in its letter to the Commission that “the 18-month pilot program is set to
expire on January 30, 2010” and that the Commission ordered the Company to “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.” Order No. 30603.
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Pursuant to this Commission requirement, “Avista requests 90 days to complete and
report on the results of the pilot program. The Company intends to complete its study and file it
with the Commission no later than April 30, 2010.”
Meanwhile, the Company requests that it be allowed to “continue the terms of the
pilot as the documentation is being prepared, [including] the limited waiver of the above
mentioned rule for the customers that are currently participating in the pilot and the 50%
reduction in disconnect fees until such time that the Commission has had the opportunity to
assess the effectiveness of the remote disconnect and reconnect program.”
STAFF RECOMMMENDATION
Staff has reviewed Avista’s letter and recommends that the Commission approve the
Company’s request to continue all of the provisions of the pilot program until the Commission
has been able to assess the program’s effectiveness.
COMMISSION DECISION
Does the Commission wish to approve Avista’s request to continue its remote
disconnect and reconnect pilot program, including the previously approved waiver of UCRR
Rule 311.03 and 311.04 and a 50% reduction in reconnect fees, to allow the Company to prepare
a file a detailed report and “until such time that the Commission has had the opportunity to
assess the effectiveness” of the pilot program?

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