28310.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO MAKE REVISIONS TO SCHEDULE 24 FOR ELECTRIC SERVICE TO IRRIGATION CUSTOMERS. )
)
)
)
)
) CASE NO. IPC-E-00-1

ORDER NO. 28310

On January 10, 2000, Idaho Power Company (Idaho Power; Company) filed an Application with the Idaho Public Utilities Commission (Commission) for authority to revise its electric Schedule 24 tariff for irrigation service effective August 23, 2000.
The Company contends that its filing is an effort to streamline and improve procedures, to maintain and promote customer satisfaction, and to more efficiently utilize the Company’s resources.
The following changes to Schedule 24 are proposed:
Deposit Requirements
Under the Company’s proposal the existing seasonal advance provisions of Schedule 24, which were designed to protect the Company against loss from unpaid irrigation bills, will be replaced with a revised deposit provision. The deposit provision, the Company contends, will continue to protect against losses from unpaid irrigation bills but will provide advantages to both the irrigation customers and the Company.
Idaho Power believes that irrigation customers will benefit from the change because in most cases, the proposed deposit of either the previous year’s highest month’s bill, or an estimated monthly bill, multiplied by a factor of one and one-half (1.5) will be a smaller dollar amount than a seasonal advance. Idaho Power contends that the Company will benefit from a deposit process that is more consistent and uniform with deposit provisions for its other non-residential customers. Consistent and more uniform processes will reduce training, supervision, and technical support costs. Customer-oriented innovation will also assist the Company in attaining its goals of customer service and customer satisfaction.
Idaho Power contends that another advantage of the proposed deposit requirement over the seasonal advance is its perceived ability to end a history of biennial flip-flopping between payment protection for the Company one year and no payment protection the succeeding year.
Interest on Deposits
The Company requests that the interest rate to be paid on deposits from Schedule 24 customers be the same as that paid on deposits for residential and small commercial customers. Reference Utility Customer Relations Rule 106.02.
Prepayment Option
Irrigation customers are now permitted to pay a $12.00 prepayment for their November through April customer charges with their October monthly payment. Customers choosing the prepayment option do not receive a monthly billing for the prepayment period unless there is a balance owing on the account. The Company proposes to eliminate this option. There has been a significant yearly decrease in participation and an increasing percentage of those exercising the prepayment option who are using energy in the out-of-season period.
Preferred Due Date Provision
The preferred due date provision was added to Schedule 24 when the year-round irrigation program was adopted in 1996. Under this provision, irrigation customers, particularly those with multiple accounts, may specify a single due date for all of their irrigation bills. Since the year-round irrigation program was adopted, the Company reports that it has fully implemented its Summary Billing Provision. This option allows customers to receive a summary of charges for multiple accounts in a single bill. Summary Billing, the Company reports, has become the preferred option for those customers desiring to have a single due date for multiple accounts and requires less administrative work for Company personnel. The Company requests that the preferred due date provision be eliminated for Schedule 24.
Service Connection
In order to bring more consistency to the Company’s termination and deposit requirements, once the out-of-season begins, the Company proposes that its standard termination procedures be followed for those irrigation customers who have outstanding account balances. However, irrigation customers who have had two or more late payments of $100 or more but who pay their accounts in full prior to having service disconnected, will not as a matter of routine have their service disconnected at the end of their pumping season. Rather, customers in this category will be required to pay a deposit by March 1 of the following year in order to remain connected for service during the irrigation season. The Company requests that sub-section 2 (Late Payments) under the Service Connection section of Schedule 24 be deleted.

On February 1, 2000, the Commission issued Notices of Application and Modified Procedure in Case No. IPC-E-00-1 and by Order No. 28271 suspended the Company’s proposed February 10, 2000 approval date. The deadline for filing written comments was February 24, 2000. While irrigation customers were not provided with individual notice of Idaho Power’s proposal, a press release was issued by the Commission and direct notice was provided to Randall Budge and Anthony Yankel, individuals who have in the past represented the interests of the Idaho Irrigation Pumpers Associations. The Commission Staff was the only party to file comments.
Staff recommends that the Commission approve the proposed revisions to Idaho Power’s Schedule 24 Irrigation Tariff. Staff, based on its analysis, concludes that the proposed deposit provision is superior to the existing seasonal advance for both the irrigation customers and the Company. Regarding the other proposed changes, Staff agrees with the Company’s reasoning. Staff summarizes the proposed changes in the following manner:

Current Tariff Provisions Proposed Tariff Provisions
Seasonal Advance – customer must advance amount equal to total of previous year’s irrigation season billings.
Deposit – customer must advance amount equal to 1.5 times the previous year’s maximum month billing. Advance due March 1; customer billings deducted from the Advance account. Deposit due March 1; customer account credited starting in September. Preferred Due Date & summary billing offered. Preferred Due Date no longer offered; Summary Billing option continues. Prepayment option for off-season at savings of $0.50/month to customer; Company only sends billing statement if power consumed. Prepayment option for off-season no longer offered. Customers will receive monthly billing statements. Advances accrue 8% interest. Deposits will accrue interest per Rule 106.02 (currently 5%). COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. IPCE00-1, the proposed changes to the Company’s Schedule 24 Irrigation Tariff and related comments of the Commission Staff. The Commission is informed and notes that as of November 1999 the Company had approximately 12,458 Schedule 24 irrigation customers. Despite notice of this filing, we have received no customer comments. There being no objection, we continue to find it reasonable to process the Company’s Application in this case pursuant to Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
Based on the established record, we find the proposed changes to the Company’s electric Schedule No. 24 irrigation tariff to be fair and reasonable. We further find it reasonable to approve said changes for an effective date of August 23, 2000.

CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over this matter and over Idaho Power Company, an electric utility, pursuant to the authority and power granted under Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.

O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby approve Idaho Power Company’s proposed revisions to its Electric Schedule 24 Irrigation Tariff for effective date August 23, 2000.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of March 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:IPC-E-00-1_sw2

ORDER NO. 28310 1

Office of the Secretary
Service Date
March 15, 2000