HomeMy WebLinkAbout20010531Notice of Hearing - Order No 28738.pdfOffice of the Secretary
Service Date
May 31, 2001
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE IDAHO POWER
COMPANY APPLICATION FOR A
REFUNDABLE EMERGENCY ENERGY
CHARGE FOR THE RECOVERY OF
EXTRAORDINARY POWER SUPPLY
EXPENSES.
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CASE NO. IPC-E-01-7
IN THE MATTER OF THE IDAHO POWER
COMPANY APPLICATION FOR AUTHORITY
TO IMPLEMENT A POWER COST
ADJUSTMENT (PCA) RATE FOR ELECTRIC
SERVICE FROM MAY 1, 2001 THROUGH MAY
15, 2002.
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CASE NO. IPC-E-01-11
IN THE MATTER OF IDAHO POWER
COMPANY'S INTERIM AND PROSPECTIVE
HEDGING, RESOURCE PLANNING,
TRANSACTION PRICING, AND IDACORP
ENERGY SOLUTIONS (IES) AGREEMENT.
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CASE NO. IPC-E-01-16
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738
On May 14, 2001, the Commission issued Order No. 28731 that established a
schedule for processing the remaining issues in Idaho Power Company’s Power Cost Adjustment
(PCA) case. In this Order, the Commission directed the parties to “file their comments in the
form of prefiled testimony and exhibits to avoid redundant filings in the event that an evidentiary
hearing is later required.” Order No. 28731 at 4 (emphasis added). According to the initial
schedule, Idaho Power was to submit prefiled testimony and exhibits in Case Nos. IPC-E-01-7,
IPC-E-01-11 and IPC-E-01-16 by May 24, 2001. Other parties would then respond followed by
Idaho Power’s reply.
On May 17, 2001, Idaho Power filed with the Commission and served upon other
parties an “Objection, Motion for Modification and Request for Clarification of Order No.
28731” (hereinafter the “Motion”). In essence the Company objected to prefiling testimony and
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 1
exhibits instead of written comments. After reviewing the objection, the Commission clarifies
its Order as set out below and addresses a rate design issue.
OBJECTION TO THE INITIAL SCHEDULING ORDER
In its Motion, the Company asserts that the procedural schedule laid out in the
Commission’s Order is “different from that which the Company understood had been agreed to”
by the parties at the prehearing conference held on May 10, 2001. Motion at 2. Contrary to the
Commission’s Order, it was the Company’s understanding that the parties had agreed (and the
Commission had adopted) that “the Company would file comments [instead of prefiled
testimony] in each of the two dockets.” Id. (emphasis added). The Company envisioned that its
comments “would be supported by Commission orders and documents to ensure that the legal
issues involved in the Company’s trading practices would be addressed by all of the parties and
resolved before any evidentiary hearing was held concerning those trading practices.” Id. The
Company insists that it “is unable to comply with the schedule as set forth on page 3 of the
Commission’s Notice and Order No. 28731. . . .” Id.
The Company’s Motion proposes that the requirement to submit “prefiled testimony
and exhibits” be replaced with the requirement that the parties merely file “comments.” The
Company has not requested a change in the scheduling dates. Given the immediacy of the
scheduling deadline of May 24, the Company requests that the Commission issue an Order
addressing this matter on less than 14 days notice. Although the Company asserts that it served a
copy of the Motion via facsimile on the parties in attendance at the prehearing conference, no
other parties filed a response to the Company’s Motion and Objection.
Commission Findings:
As we stated in our May 1, 2001 PCA Order, the Commission seeks to expeditiously
resolve the remaining issues in Case Nos. IPC-E-01-7 and IPC-E-01-11. Order No. 28722 at 27.
Although we appreciate the Company’s desire to resolve what may be controlling legal issues
regarding its trading practices before addressing any remaining issues with prefiled testimony,
the Commission stands by Order No. 28731 and requires all comments to be filed as prefiled
testimony and exhibits. To do otherwise would require the parties to submit duplicative filings
on issues involving the prudency of Idaho Power’s 2000-2001 PCA pricing mechanisms,
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 2
transmission and wheeling charges, weighted-average pricing for real-time purchases, the
November trading event, and the Company’s hedging activities.
Because the Company asserts that it did not anticipate filing its comments in the form
of prefiled testimony and cannot do so by the May 24, 2001 deadline set out in scheduling Order
No. 28731, the Commission excused the Company from meeting this deadline during its May 21,
2001 decision meeting. Having postponed the May 24 filing, the Commission asked the parties
to submit an amended schedule for these cases going forward.
AMENDED PROCEDURAL SCHEDULE
AND NOTICE OF HEARING
Based upon the agreement of the parties, the Commission adopts the amended
proceeding schedule outlined below.
Date Action
June 22, 2001
July 20, 2001
August 7, 2001
August 28-30, 2001
Deadline for Idaho Power to submit prefiled direct testimony,
exhibits, and workpapers regarding:
• IPC-E-01-7/IPC-E-01-11: the prudency of its 2000-2001 PCA
pricing mechanisms, transmission and wheeling charges,
weighted-average pricing for real-time purchases, the
November trading event and hedging activities.
• IPC-E-01-16: the reasonableness of its trading practices (to
include hedging, transmission and wheeling charges, Mid-C
and Palo Verde pricing indexes, and use of weighted-average
pricing); the pricing, hedging and transmission terms of the
IES Agreement and Order No. 28596; and the flexibility of the
Company’s short-term resource planning. This filing shall
also include the short-term resource planning report for the
summer and winter of 2001 that was mandated by Order No.
28722 at page 17.
Deadline for Staff and Intervenors to submit prefiled direct
testimony, exhibits, and workpapers.
Deadline for Idaho Power to submit prefiled rebuttal testimony,
exhibits and workpapers to the parties’ filings.
Evidentiary Hearing at 9:30 a.m. in the Idaho Public Utilities
Commission Hearing Room located at 472 W. Washington, Boise.
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 3
After receiving the prefiled direct and rebuttal testimony, the Commission may issue an Order
addressing controlling legal issues that can be resolved without an evidentiary hearing.
To further expedite the proceedings in these cases, the parties are encouraged to
provide other parties with the information they request in a timely manner and use a protective
agreement, if necessary. Absent a formal discovery period, the parties have agreed to respond to
discovery requests within fourteen (14) days. Staff has further agreed to respond to any Idaho
Power discovery requests received July 20-24, 2001 no later than July 30, 2001.
To facilitate the filing of exhibits, the Commission assigns the parties the following
exhibit numbers: Idaho Power Company (1-100); Commission Staff (101-200); Astaris LLC
(201-300); Irrigation Pumpers Association, Inc. (301-400); U.S. Department of Energy (401-
500); Land and Water Fund of the Rockies for Mary McGown, Idaho Rivers United and Idaho
Rural Council (501-600); and Industrial Customers of Idaho Power (601-700).
Suspension Period
On May 1, 2001, the Commission suspended the effective dates of the requested rate
increases relating to the IPC-E-01-7 and IPC-E-01-11 issues deferred for further investigation
until August 23, 2001. Order No. 28722 at 28. According to Idaho Code § 61-622, the
Commission may further extend the period of suspension for an additional sixty (60) days after a
“showing of good cause.” Idaho Power and the parties have adopted the schedules as set out
above and consented to a further suspension of the filings’ effective dates to accommodate said
schedules. Consequently, the Commission finds that there is “good cause” to further suspend the
effective date of Idaho Power’s requested rate increases relating to the deferred issues in IPC-E-
01-7 and IPC-E-01-11 through September 28, 2001.
The Commission finds that the amended schedules set out above are appropriate. The
parties shall file their comments in the form of prefiled testimony and exhibits. The Commission
directs that all pleadings and prefiled testimony and exhibits be served via overnight mail no
later than the close of business on the deadlines outlined above.
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 4
YOU ARE FURTHER NOTIFIED that the prepared testimony and exhibits must be
served upon the Commission and all other parties as set out in the schedule above. The prepared
testimony and exhibits must conform to the requirements of Rules 266 and 267 of the
Commission’s Rules of Procedure, IDAPA 31.01.01.266-.267.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Titles 61 and 62 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority. The Commission has
jurisdiction over these matters pursuant to Idaho Code §§ 61-307, 61-622, 61-623, and 61-624.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act. Persons needing the help of a sign language interpreter or other assistance of
the kind that the Commission is obligated to provide under the Americans with Disabilities Act
in order to participate in or to understand the testimony and argument at a public hearing may
ask the Commission to provide a sign language interpreter or other assistance at the hearing. The
request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0338 (TELEPHONE)
(208) 334-3762 (FAX)
MASTER-METERING IN MOBILE HOME/RV PARKS
In Order No. 28722 (Case Nos. IPC-E-01-7 and IPC-E-01-11), the Commission
established a three-tiered residential rate which became effective May 1, 2001. Since the Order’s
issuance the Consumer Assistance Staff has received six informal complaints from Idaho Power
customers who own master-metered mobile home or R.V. parks. Master-metered customers
have tenants whose usage is submetered. For example, the utility bills its master-meter park
owner who, in turn, reads the tenants’ submeters and bills them for their individual usage. Under
the Commission’s Master-Metering Rule 101.02 (IDAPA 31.26.01.101.02), the park owner must
bill their submetered tenants at the same rate Idaho Power would charge the tenant if the tenant
were billed directly by Idaho Power.
Applying the tiered residential rate to master-metered customers results in the vast
majority of usage being billed at the highest tier (62% increase). According to the complainants,
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 5
an individual tenant’s monthly usage typically falls within the first two rate tiers (2000 kWh or
less). If the owners follow the requirements of Master-Metering Rule 101.02, there will be a
substantial shortfall between the amount the park owners (i.e., the master-metered customers)
will be able to collect from their tenants and the amount the owners will pay to Idaho Power. It
is this anticipated revenue shortfall that greatly concerns the complainants.
Commission Findings
As set out above, the temporary PCA residential rate design has created some
inequities for master-metered parks served under that schedule. Except for the park owners’
private accommodations or common areas, the park owner has little ability to affect aggregate
usage under the master-meter since the owner cannot control a submetered tenant’s individual
usage. The majority of the owners’ bills from Idaho Power will be for usage at the highest rate,
whereas the majority of the tenants’ usage will be under the two lower tiers.
To address this unforeseen consequence, the Commission hereby creates a separate
subclass for master-metered customers served under Schedule 1. Idaho Power shall transfer
Schedule 1 master-metered customers to this subclass and bill them at a flat energy rate of
6.2718 cents per kWh plus the $2.51 customer charge. This rate represents a 23% increase over
previous Schedule 1 rates and is consistent with the overall average increase for the residential
class approved in Case Nos. IPC-E-01-7 and IPC-E-01-11. This interim solution applies only to
the current PCA, which expires in May 2002, or until such time as the Commission has another
opportunity to adjust rates.
Idaho Power shall adjust the billing for master-metered mobile home or R.V. park
owners that are currently served under Idaho Power’s Schedule 1 Residential Rate to reflect the
rates set out above. In keeping with Master-Metering Rule 101.02, mobile home/R.V. park
owners shall then bill tenants according to Idaho Power’s Schedule 1 residential tiered rates.
Billing submetered customers under the tiered rates will send an appropriate price signal and
encourage customers to conserve energy. This will also ensure that submetered residential
tenants pay the same rates as residential customers directly served by Idaho Power. The
Company shall provide the Commission Secretary with a list of known master-metered Schedule
1 customers. The Secretary shall then serve a copy of this Order on the master-metered
customers.
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 6
O R D E R
IT IS THEREFORE ORDERED that Idaho Power’s Motion to Clarify is granted in
part and denied in part.
IT IS FURTHER ORDERED that the parties comply with the amended schedules
outlined above rather than the initial schedules set out in Order No. 28731.
IT IS FURTHER ORDERED that those issues in Idaho Power Company’s
Application in Case Nos. IPC-E-01-7 and IPC-E-01-11 that are deferred for further investigation,
are further suspended through September 28, 2001, or until such time as the Commission may
issue a final Order accepting, rejecting, or modifying the requested rate increase as it relates to
the deferred issues.
IT IS FURTHER ORDERED that Idaho Power Company file tariffs for a temporary
subclass of Schedule 1 master-metered mobile home or R.V. park owners for the 2001-2002
Purchased Power Cost Adjustment period to be billed at a flat energy rate of 6.2718 cents per
kWh plus the $2.51 customer charge. Idaho Power is further ordered to transfer Schedule 1
master-metered customers to the temporary subclass and adjust their billing back to May 1, 2001
to reflect this flat rate. Idaho Power shall also provide the Commission Secretary with a list of
known Schedule 1 master-metered customers.
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 7
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of May 2001.
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Jean D. Jewell
Commission Secretary
O:IPCE017_IPCE0111_IPCE0116_ln
AMENDED SCHEDULE AND
NOTICE OF HEARING
ORDER NO. 28738 8
OPINION OF COMMISSIONER MARSHA H. SMITH,
CONCURRING IN PART AND DISSENTING IN PART
Case Nos. IPC-E-01-7, IPC-E-01-11, and IPC-E-01-16
Amended Schedule and Notice of Hearing
Order No. 28738
To resolve an unanticipated consequence of implementing tiered residential rates, I
agree with the majority that it is appropriate to create a Schedule 1 master-metering subclass that
will be billed at a uniform rate. However, I respectfully dissent from the Commission’s denial of
Idaho Power’s Objection to, and Motion for Modification of, Order No. 28731. After reviewing
the pleadings and transcripts from the May 10, 2001 Prehearing Conference, it is apparent to me
that the parties did not contemplate Idaho Power would file its comments on legal issues
involving the Company’s trading practices as “prefiled testimony.” As such, I believe that the
Company should be allowed to file comments regarding the legal issues in this case.
Marsha H. Smith, Commissioner
SEPARATE OPINION OF
COMMISSIONER MARSHA H. SMITH