HomeMy WebLinkAbout200132_jh.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
JEAN JEWELL
DON HOWELL
BILL EASTLAKE
LOU ANN WESTERFIELD
RANDY LOBB
DAVE SCHUNKE
TERRI CARLOCK
RICK STERLING
BEVERLY BARKER
RON LAW
TONYA CLARK
WORKING FILE
FROM: JOHN R. HAMMOND
DATE: MARCH 2, 2001
RE: IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO INSTITUTE A PILOT PROGRAM TO ALLOW IRRIGATION CUSTOMERS TO TAKE ELECTRIC SERVICE AT TIME-OF-USE ENERGY RATES. CASE NO. IPC-E-01-6.
On February 21, 2001, Idaho Power Company (“Idaho Power”) filed its Application seeking Commission authority to institute a pilot program to allow irrigation customers to take electric service at time-of-use energy rates by implementing Tariff Schedule 25, Irrigation Service, Optional Time-Of-Use, Pilot Program (the “Program”). Idaho Power requests that its Application be approved with an effective date of March 23, 2001. Accordingly, the Company requests expedited consideration of this matter using Modified Procedure under the Commission’s Rules of Procedure, i.e., by written comment rather than by evidentiary hearing. IDAPA 31.01.01.201-.204.
BACKGROUND
Idaho Power states that the purpose of this Program is to ameliorate the pressure on its system peak demands and associated financial consequences resulting therefrom. Specifically, under this Program the Company will provide an appropriate price signal to its irrigation customers to encourage them to shift their energy usage away from peak times which in turn will help to reduce the Company’s purchase power costs. Accordingly, the Company believes that exploring the potential benefits of this Program is warranted.
The Program will be available to all of the Company’s irrigation customers who are not participating in the Company’s Tariff Schedule 22, [Commercial Users] Energy Buy Back Temporary Program, or the Company’s Irrigation Buy Back Program. See Case Nos. IPC-E-01- 4 and IPC-E-01-3. The Company also states that enrollment in this pilot program will be limited to 300 metered service points unless it chooses to waive this restriction.
Idaho Power contends that if the Program is successful it may lead to a reduction in the amount of revenue the Company will receive. However, this reduction in revenue is not accounted for in Idaho Power’s PCA mechanism and thus the Company entirely absorbs it. Accordingly, Idaho Power requests authorization to include reduced revenues, resulting from this Program, as an adjustment to its PCA mechanism.
Staff Recommendation
Staff recommends that the Commission process this Application in an expedited manner because irrigators must make decisions about the 2001 growing season in the coming weeks. Accordingly, Staff proposes that this Application come before the Commission for a final decision on March 26, 2001. Staff also recommends processing this case by Modified Procedure and establishing a sixteen (16) day comment period.
COMMISSION DECISION
Does the Commission wish to process Idaho Power’s Application in an expedited manner?
Does the Commission wish to process Idaho Power’s Application by the use of Modified Procedure under the Commission’s Rules of Procedure?
Does the Commission wish to shorten the comment period from twenty-one (21) to sixteen (16) days in an effort to expedite Idaho Power’s Application?
Does the Commission wish to suspend issuance of an Order addressing this Application beyond March 23, 2001, the date which Idaho Power has requested?
___________________________________
John R. Hammond
If a customer is participating in these programs they must be granted written consent by Idaho Power before participating in the time-of-use Program.
DECISION MEMORANDUM 2