19931124Order_No_25259.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSIONNOV24 1993
IN THE MATTER OF THE ADOPTION )
OF A CURTAILMENT PLAN FOR )CASE NO.GNR-E-93-2
ELECTRICAL ENERGY IN THE STATE )
OF IDAHO.)ORDER NO.25259
On July 23,1993,this Commission issued Order No.25045 directing the
parties to this case to file a proposedstate electric curtailment plan.The Order
directed the parties to use the Regional Curtailment Plan for Electric Energy
prepared by the Northwest Load Curtailment Plan Task Force as a working guideline
for the developmentof the state curtailment plan.The parties have proposed that
we adopt the regional plan as the state plan.There remains in dispute,however,the
issue of whether to include Section VI.A.5 of the regional plan pertaining to financial
penalties.
The regional plan has two distinct phases;voluntary and mandatory
curtailment.Voluntary curtailment is the first phase of the plan to be implemented
when an energy shortageis imminent.This phase relies upon customer education
and the use of media resources to persuadeelectric utility customers to reduce their
usage.In the event that voluntary curtailment fails to sufficiently reduce load,the
mandatory curtailment phase of the plan gives utilities the authority to implement
more drastic measures such as the imposition of financial penaltiesagainst customers
whose usage exceeds a "base line"level and,if necessary,physical disconnection of
those customers.These measures are contained in Section VI.A.5 of the Regional
Curtailment Plan.Under this section,the utility calculates a base line level of usage
for each ofits customers which is normally based upon usage over the precedingyear.
In the event of mandatory curtailment,customers are limited to usage not to exceed
their base line level plus 2 or 10%depending upon the customer class.Those
customers who exceed this limit are subject to a 10¢per kWh penalty.Additional
violations carry financial penalties up to 40¢per kWh and disconnections for up to
two days.Several of the parties to this case have expressed concern over the
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appropriateness of the Commission approving a curtailment plan that contains
financial penalties.
FINDINGS
Idaho Code §61-531 requires that this Commission direct "all suppliers of
electric power and energy,or natural or manufactured gas"to file with the
Commission a plan for the curtailment of electric or gas consumption to be
implemented during an emergency.Section 61-534 provides the Commission with
authority to declare that an emergency exists requiring the curtailment by suppliers
of electric or gas service in accordance with their curtailment plans on file with and
approved by the Commission.Title 61 does not require that a state plan be
submitted.We believed that a state plan would help to coordinate and facilitate the
filings of the utility specific plans.The Commission will review and either accept,
reject or modify those plans on their individual merits once they are received.
We do believe,however,that it is appropriate at this time to provide the
parties with guidance on the issue of financial penalties.It is our preference that
utilities do not file curtailment plans incorporating Section VI.A.5 of the Regional
Curtailment Plan in its present form.Conditions could change between now and
when mandatory curtailment becomes a necessity such that the imposition of
monetary penalties is unwarranted or the amount of the penalties is inappropriate.
If and when mandatory curtailment is implemented,this Commission can take
whatever steps are necessary and available to it to ensure compliancewith the plan.
We believe that it would be more appropriate to include in the individual curtailment
plans a statement to the effect that the Commission will utilize financial penalties
to ensure compliancewith the plan if deemed necessary at the time of mandatory
curtailment.Furthermore,the Commission can and will implement those penalties
expeditiously.
We find,therefore,that the regional plan,with the aforementioned
modification to Section VI.A.5,should be adoptedas a guideline by all suppliers of
electric service in preparing and submitting their individual curtailment plans.
Furthermore,it is herebyordered that all suppliers of electric service,whether or not
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they have participated in this case to date,shall submit their individual curtailment
plans pursuant to Idaho Code §61-531 no later than January 15,1994 consistent
with the terms of this Order.
ORDER
IT IS HEREBY ORDERED that all suppliers of electric service operating
in the State of Idaho shall file individual curtailment plans with this Commission,
pursuant to Idaho Code §61-531,et seq.,no later than January 15,1994 consistent
with the terms and conditions set forth in this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho
this avu day of November 1993.
Ë È.SMITH,PRESIDYNT
ÚE J.ILLER,COlŸIMISSIONER
RALPH 1(ELSON,COMMISSIONER
ATTEST:
Myrna J.WÀlters
Commission Secretary
BP/VLD/O-GNR-E-93-2.bp2
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