20020329Request for Waiver of Bill Stuffer Requirement.pdf

LARRY D.RIPLEY ISB #965
Idaho Power Company
P.O.Box 70
Boise,Idaho 83707
Telephone:[phone]
FAX Telephone:[phone]
Attorney for Idaho Power Company
Street Address For Express Mail:
1221 West idaho Street
Boise,Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF IDAHO POWER COMPANY FOR AN )CASE NO.IPC-E-02-02ENERGYCOSTFINANCINGORDERAND)IPC-E-02-03AUTHORITYTOINSTITUTEANENERGY)COSTBONDCHARGE.)
)REQUEST FOR WAIVER
)OF BILL STUFFERINTHEMATTEROFTHEAPPLICATION)REQUIREMENT
OF IDAHO POWER COMPANY FOR )AUTHORITY TO IMPLEMENT A POWER )COSTADJUSTMENT(PCA)RATEFOR )ELECTRIC SERVICE FROM MAY 16,2002 )THROUGH MAY 15,2003.)
Pursuant to RP 13,Idaho Power Company("Idaho Power"or "the
Company")requests that the Commission waive the requirement for a Power Cost
Adjustment("PCA")bill stuffer in the above proceeding for and upon the following
grounds:
1.On March 11,2002,the Companymailed to all of its Idaho retail
customers a special mailing providing notification as to the Company's Application for
REQUEST FOR WAIVER OF BILL STUFFER REQUIREMENT,Page 1
an energy cost recovery bond and related energy cost bond charges.In that same
notice the Company advised its customers of the impending Application for the
Company's 2002 PCA.The Company described the amount of the PCA Application
with and without the issuance of energy cost recovery bonds.The information
contained in that notice remains accurate.A copy of that notification is attached as
Attachment 1.
2.The Commission,on March 27,2002,issued its notice in the
above-entitled matter and set public hearings for:
Twin Falls on Wednesday,April 10,2002.Pocatello on Monday,April 15,2002.
Boise on Thursday,April 25,2002.
The Commission set a technical hearing for April 26,2002,at 9:30 a.m.in
the Commission Hearing Room in Boise.
3.The Company is concerned that an additional bill stuffer at this time
would lead to confusion rather than provide notification,since the Company'scustomers
have already been notified of the Applicationsas previously noted.
4.The Company would point out that a bill stuffer issued on a cyclical
basis would not be received by most of its customers until after the hearings described
above.
5.The Company has discussed its concerns with Commission Staff
and has advised Staff that the request would be filed.
6.The Company,as part of this request,will provide notification,
including paid advertisements notifying the Company'scustomers of the scheduled
REQUEST FOR WAIVER OF BILL STUFFER REQUIREMENT,Page 2
proceedings.That notification plan is attached as Attachment 2.Staff has
recommended that if this request is granted,the Company provide such notification.
7.As provided in UClR 102.05,the Commission's customer
notification rules do not create any due process or other procedural rights in customers.
Thus,the Companysubmits the Commission can waive the notice requirements if it
determines that the public interest would be served.
WHEREFORE,the Company submits that,since the customers have
already received notification,it is in the public interest in this unique situation for the
Commission to determine that the issuance of bill stuffers as required by UCIR 102
regarding the Company's PCA Application is "impractical,unnecessary and not in the
public interest."(See RP 13)
The Company respectfully requests that the Commission consider the
Company'srequest for waiver of the bill stuffer requirementas soon as practicable,
since if the Company'srequest is denied,the Companywould be required to make
arrangementsfor the insertion of a bill stuffer.
DATED this 29th day of March,2002.
LARRY p.RIPLEY
Attorneyfor Idaho Power Company
REQUEST FOR WAIVER OF BILL STUFFER REQUIREMENT,Page 3
ATTACHMENT 1
MIMHO IDAHO POWER COMPANY
BOSE
A7H00
83707
An IDACORP Company
Dear Customer:
Much has happened at Idaho Power in the past 18 months.Drought,chaotic wholesale energy
prices and rate increases have profoundly impacted our customers and our company,but I
believe the worst of this is nearly behind us.Last year our company recovered $217 million
through the annual Power Cost Adjustment (PCA).This April we may have to ask to recover $244
million through the PCA.This includes only costs for power purchases and energy saving
programs.It has no impact on company profits or operating expenses.Based upon current
projections,your rates could go up as much as 11 percent over where they are today for one
more year.Idaho Power does not think this is advisable and is proposing an alternative.
This letter is to notify you of a filing Idaho Power made with the Idaho PublicUtilities
Commission (IPUC)on March 11 that if approved,would allow Idaho Power to issue $172
million in revenue bonds.The filing is subject to IPUC approval and could result in an average 10
percent decrease from existing rates.Here's what this could mean to your rates:
Potential Rate Adjustments
With Bonds Without Bonds
Residential (average)(7.8)%8.8%increase
Irrigation (9.8)%11.0%increase
Small General Service (6.7)%7.6%increase
Large General Service (10.0)%11.4%increase
Large Power (Industrial)(11.9)%13.5%increase
OVERALL (9.6)%10.8%increase
()indicates a decrease
If this request is approved by the IPUC,our Idaho customers'rates this spring could go down by
an overall 10 percent and,with a return to normal conditions,possibly an additional overall 13
percent decrease in 2003.In short,a bond issue would more quickly put us on the path toward
normal rates.
The concept is simple.We're asking to spread some of our power and load reduction costs over
a three-year period instead of one.Spreading these costs over timewill incur additional interest
costs but at favorable rates.Idaho Power believes that issuing bonds not only will reduce your
current rates,but also will positively influence the state's economy.We anticipate these bonds
will be paid off over a three-year period through a 0.54 cent-per-kilowatt-hour charge that would
be included in the reduced rates you will pay if this action is approved by the IPUC.This charge
will be shown as a separate line item on your electricity bill.This charge may decrease or
increase if electricity usage on our system rises above or falls below today's levels.
A copy of the company's filing is available for public review at Idaho Power offices,including our
corporate headquarters at 1221 W.Idaho Street,Boise,or on our Web site-
www.idahopower.com.You also may view the filing at the Idaho PublicUtilities Commission's
offices at 472 W.Washington Street,Boise.
LaMont Keen
President and Chief Operating Officer
Idaho Power Company
Due to mass mailing,¶you have morethan one account,you may receive more than one coy ofthis notwe.
ATTACHMENT 2
CommunicationsPlan To Support Idaho Power Involvement In
Idaho Public Utilities Commission Workshopsand Hearings
Objective(s):To increase and enhance awareness of,and attendance and participation in
upcoming Idaho Public Utilities Commission public meetings.
Methodology:Idaho Power will use the general media as the primary vehicle for
promoting the upcoming IPUC hearings and workshops.The company's Corporate
Communications Department will draft news releases and contact writers and editors of
publications,television and radio stations within the communities surrounding the cities
in which these meetings will be held.These releases will encapsulate the reasons for the
hearings and will emphasize the public participation in these meetings.
In addition,Idaho Power will use paid advertising in general circulation newspapers in
and around the cities in which these meetings are scheduled to be held.These ads will
promote the schedule of both the workshops and public hearings and will briefly explain
the purpose and background surrounding them.
Timing:
Paid Advertising-Advertisingcopy will be prepared and is expected to be
disseminated the week of April 1.
News Releases-News releases will be prepared and should by disseminated on these
dates:April 3 (Twin Falls)April 8 (Pocatello)April 18 (Boise)
Proposed Publications and Stations:
Twin Falls Area:(Print)Times-News,South Idaho Press,North Side News,Buhl
Herald (Electronic)KMVT Television;KLIX-Radio
Pocatello Area:(Print)Idaho State Journal;Blackfoot MorningNews (Electronic)
KIFI-Television;KIDK-Television;KWIK Radio
Boise Area:(Print)The Idaho Statesman;Nampa Press-Tribune;Emmett
Messenger(Electronic)KIVI-Television;KBCI-Television;KTVB-Television;
KTRV-Television;KBOI Radio;KIDO Radio;KBSU Radio