28589.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO MODIFY TARIFF RULES I AND 9, LEVEL PAY PLANS. )
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CASE NO. IPC-E-00-14

ORDER NO. 28589

On September 29, 2000, Idaho Power Company (Idaho Power; Company; IPCo) filed an Application with the Idaho Public Utilities Commission (Commission) for authority to modify the Company’s General Rules and Regulations—Tariff Rule I for its general service territory and Tariff Rule 9 for its Prairie, Idaho service territory. Tariff Rules I and 9 detail the Company’s level pay plans, which provide residential and small general service customers with a means of budgeting or “levelizing” monthly payment amounts on an annual basis to avoid seasonal bill fluctuations.
As reflected in the Company’s Application, as of September 26, 2000, there were 43,706 residential and small general service Idaho retail customers as well as 79 residential Prairie service customers enrolled in the level pay program.
In this Application the Company is requesting approval of four proposed modifications to Tariff Rules I and 9:
Changing the name of “Level Pay Plans” to “Budget Pay Plans.”
Changing the name of the program to “Budget Pay Plans” will enable the Company to mirror the label used in its new billing system. The Company considers it both prudent and practical to standardize the terminology used in its communications with customers as well as in its internal processes.
Modify the methodology used to determine a participating customer’s estimated billing amount.
Under the present methodology there is a weather adjustment component to the calculation of the level pay plan amount. The Company contends that while relevant for the Company’s greater system, the weather adjustment is not particularly relevant as to an individual customer’s usage. It is accurate, it states, only for the “average” customer and few customers match the characteristics of “average.” To simplify the process, the Company is requesting that it be permitted to calculate the level (budget) pay amount by combining the actual (not levelized) charges on the account from the past 12 months. If the customer is currently participating in a level pay plan, any debit or credit account balance could also be included. The total amount would then be divided into 12 equal payments. This would become the customer’s levelized monthly installment for the next 12 months unless the amount is recalculated due to an interim review.
Review of level (budget) pay plan accounts.
Currently, the annual budget period begins with the July billing period and ends with the June billing period, regardless of whether a customer has been enrolled in a level pay plan for a full or partial year.
The Company in its Application is requesting that the annual review of a customer account occur at the 12-month (or 365 day) anniversary of the date the customer began paying the most current level (budget) pay plan amount. The new monthly payments will be the most current pay level (budget) pay plan amount. If a customer has a debit balance at the time of recalculation, the customer’s monthly level (budget) pay amount will equal the recalculated level (budget) pay amount plus 1/12th of the negative balance. At the customer’s request, a negative balance may be paid in full. Credit balances at the time of recalculation will be refunded at the customer’s request. If no request is made, the monthly level (budget) pay amount will be equal to the recalculated level (budget) pay amount reduced by 1/12th of the positive balance.
The Company will continue to reserve the right to revise a customer’s level pay amount at times other than the annual review if changes in rates or other circumstances occur that warrant such a revision.
Modification of enrollment criteria.
Presently, if a residential customer account is in arrears at the time of application for the level pay plan, the customer and the Company will mutually agree on the payment to eliminate the amount in arrears in a period not to exceed 12 months, and that amount will be added to the level pay amount otherwise computed.
The Company in its Application is requesting that only residential customers whose accounts are not in arrears be eligible to enroll in the Company’s level (budget) pay plan. Upon successful payback of arrears amounts, the customer may enroll in the level (budget) pay plan.
The enrollment criteria for the small commercial customer will remain unchanged.

On October 18, 2000, the Commission issued Notices of Application and Modified Procedure in Case No. IPC-E-00-14. The deadline for filing written comments was November 8, 2000. Commission Staff was the only party to file comments. Staff supports the Company’s proposed changes, with the understanding, based on discussions with the Company, that residential customers with arrearages instead of a level (budget) payment plan will be able to enter into special payment arrangements that allow for payment of arrearages and projected future bills over a period of up to 12 months. As represented by the Company, such payment arrangements on what are viewed to be high risk accounts, will be more closely monitored, allowing the Company to take prompt collection action if necessary. Customers who are successful in paying off past due balances may then enroll in a regular level (budget) payment plan. Staff recommends, should the Commission approve the Company’s proposal, that the Company be directed to advise its customers of the changes to its level (budget) payment plan no later than January 31, 2001.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. IPC-E-00-14 including the comments and recommendation of Commission Staff. Based on our review, we continue to find it appropriate to process this Application pursuant to Modified Procedure. Reference IDAPA 31.01.01.204.
The Commission finds the proposed changes to the Company’s level payment program including treatment of residential customers with arrearages to be reasonable. We also find it reasonable to require the Company to provide the customer notice recommended by Commission Staff.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company, an electric utility, and issues raised in Case No. IPC-E-00-14 pursuant to 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 the Company proposed modifications to tariff Rules I and 9 of the Company’s General Rules and Regulations.
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 December 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:IPC-E-00-14_sw

ORDER NO. 28589 1

Office of the Secretary
Service Date
December 18, 2000