20020426Letter from Idaho Farm Bureau.pdf

IDAHO FARM BUREAU EggER N
P.O.Box 167 500 W.Washington Street
Boise,Idaho 83701-0167 (208)342-26ß8
FAX [phone] **'02
April 26,2002
Dennis Hansen,Commission Chairman
Idaho Public Utilities Commission
472 West Washington Street
Boise,Idaho 83702
Re:Idaho Farm Bureau Comment on Idaho Power's Bond Recover Request
Dear Commissioner Hansen:
I am writing on behalfof the 52,700 member families of the Idaho Farm Bureau Federation(IFBF)regarding Idaho Power's bond recovery,tiered residential rates,other costs,and
conservation programs.
Bond Recovery.IFBF supports the staffrecommendation to allow a two year Power CostAdjustment(PCA)repayment instead of the three year bond proposed by Idaho Power Company.Under this recommendation all electrical rates would be reduced by 10%and the repaymentwouldbeextendedtherepaymentfortwoyearswithoutburdeningtheratepayerwiththeadditional$17 million interest cost.Another reason for supporting the staffrecommendation isthattheratepayerwillsecurethebondsthroughthePCAenablingIda-Corp Energy to borrow
more money at less cost.
Other Costs.These PCA costs include $5.8 million for portable diesel generators that were usedseldomornotatall.IFBF supports the staff recommendation that $3.8 million of these costs notbeallowedinthePCA.
Tiered Residential Rates.IFBF believes the three-tiered rate design is discriminatorytowardresidentialcustomers,especially farming families owning all electric homes.In the early 1970'sand1980's Idaho Power Company,with consent of IPUC,promoted these totally electrical
homes and ranches.Now twentyyears later,these homeowners are being penalized because the
Commission has approved the three tier rate design without the proper rate making case or designhearings.
Conservation Programs.IFBF is opposed to a tariff rider of.05%on all electric bills for all
customer classes which is viewed as unnecessary at this time.Farm commodity prices have notimprovedmeaningmanyfarmingfamiliesarenotabletotakeonanyadditionalcosts.IFBFwouldsupportself-funded conservationprograms.
Home Office:P.O.Box 4848 1001 N.7th Avenue Pocatello,Idaho 83205-4848 [phone]
I would like to thank the Commission for this opportunityto express our views on these
important matters that affect so many of our members.
Sincerely yo ,
Frank Priestley,Presiden
Idaho Farm Bureau Federation
ec:Commissioner Smith
Commissioner Kjellander
Rick Keller,IFBF
Greg Nelson,IFBF
Lynn Tominaga,IWPG
Rep.Bruce Newcomb,Speaker
Sen.Bob Geddes,Pro Temp
Sen.Joe Stiegner
Rep.Bert Stevenson
Sen.Sheila Sorensen
Rep.Bill Diehl