20020329Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
BILL EASTLAKE
LOU ANN WESTERFIELD
RANDY LOBB
DON HOWELL
KEITH HESSING
DAN GRAVES
ALDEN HOLM
TERRI CARLOCK
BEV BARKER
TONYA CLARK
GENE FADNESS
WORKING FILE

FROM: LISA NORDSTROM

DATE: MARCH 29, 2002

RE: IDAHO POWER'S REQUEST FOR WAIVER OF THE POWER COST ADJUSTMENT (PCA) BILL STUFFER REQUIREMENT, CASE NO. IPC-E-02-3.

On March 29, 2002, Idaho Power Company requested that the Commission waive the requirement for a Power Cost Adjustment (PCA) bill stuffer as typically required by Rule 102 of the Utility Customer Information Rules. The Company filed its waiver request pursuant to the Commission’s Rule of Procedure 13, which states that the Procedural Rules “will be liberally construed to secure just, speedy and economical determination of all issues presented to the Commission.” IDAPA 31.01.01.13. Procedural Rule 13 also states that unless prohibited by statute, the Commission “may permit deviation from these rules when it finds compliance with them is impracticable, unnecessary or not in the public interest.” Id.

UTILITY CUSTOMER INFORMATION RULE 102
Rule 102 of the Utility Customer Information Rules applies to customer notices of proposed rate changes. IDAPA 31.21.02.102. Subsection 102.01 states that each utility that applies for a tracker rate change
shall give to each customer a statement (customer notice) announcing the utility’s application. If the utility is requesting a rate increase, the customer notice shall include a brief explanation of the utility’s need for additional revenue and the dollar amount requested. The notice shall give the proposed overall percentage change from current rates as well as the proposed percentage increase in revenue for each major customer class. The customer notice shall make it clear that the application is a proposal, subject to public review and a Commission decision. It shall also inform customers that a copy of the utility’s application is available for public review at the offices of both the Commission and the utility.

These customer notices may be mailed to customers as bill stuffers over the course of a billing cycle or may be contained in additional comment pages to the customer’s monthly bill. IDAPA 31.21.02.102.02.
The purpose of Rule 102 is to encourage wide dissemination to customers of information concerning proposed rate changes for utility services, but not to create individual procedural rights for notice that would give rise to a due process or other procedural claim cognizable by the Commission. IDAPA 31.21.02.102.05. Procedural due process is satisfied when individuals are provided with notice and an opportunity to be heard. State v. Rhoades, 121 Idaho 63, 72 (1991). The opportunity to be heard must occur “at a meaningful time and in a meaningful manner” to satisfy the due process requirement. Sweitzer v. Dean, 118 Idaho 586, 573 (1990).
REQUEST FOR WAIVER OF BILL STUFFER REQUIREMENT
On March 11, 2002, Idaho Power Company mailed a special notification to its Idaho retail customers regarding its Application for an energy cost financing order authorizing the issuance and sale of up to $172 million in Energy Cost Recovery Bonds. In that notice, the Company advised customers that it may seek to recover $244 million for power purchases and energy saving programs in its PCA Application this April. Idaho Power traditionally files its 2002-2003 Power Cost Adjustment (PCA) filing on April 15, 2002. Idaho Power’s Request for Waiver noted that the amount of the PCA Application with and without the issuance of energy cost recovery bonds was included in the mailing and still remains accurate.
According to its Request for Waiver, the Company is concerned that an additional bill stuffer at this time would lead to confusion rather than provide notification, since the customers have already been notified of the Applications. Idaho Power also points out that a bill stuffer issued on a cyclical basis would not be received by most of its customers until after the bond charge and PCA hearings scheduled by Order No. 28988 in Case Nos. IPC-E-02-02 and -03.
In lieu of bill stuffers or otherwise mailing notice to individual customers, the Company indicates it will use paid advertisements to notify customers of the scheduled proceedings and attached its notification plan to the Request for Waiver. Idaho Power further states that since the Commission’s customer notification rules do not create any due process or other procedural rights, the Commission can waive the notice requirements if it determines that the public interest would be served. Since customers have already received notification, Idaho Power submits that it is in the public interest in this situation for the Commission to find that the issuance of PCA bill stuffers as required by Rule 102 to be “impractical, unnecessary and not in the public interest” according to Procedural Rule 13.
STAFF RECOMMENDATION
Staff agrees with Idaho Power that sending customers bill stuffers specifically regarding the PCA would be problematic. In order to provide timely notice to customers, the Company would have to do a special mailing rather than a bill stuffer due to the expedited nature of this case. Customers might be confused upon receiving another special mailing from Idaho Power so soon after receiving the Company’s notice regarding its request for an energy cost financing order. Perhaps more importantly, there is a distinct possibility that customers might simply ignore a second notice, believing it to be a duplication of the first notice. Since the general intent of the Commission’s notice requirements is to advise customers of pending cases and give them an opportunity to respond, the Company’s communication plan better effectuates that intent given these particular circumstances.
With respect to the company’s proposed communication plan, Staff proposes that the following conditions be met:
paid advertising for print media should be in the form of prominently placed display ads;

for each newspaper listed in the plan, print ads should be published in both the Sunday edition and the weekday edition that preceed the date of the local hearing; and
Staff be provided with the draft of advertising copy for both print and electronic media and be given the opportunity to provide input on content.

With those provisions, Staff recommends that the Commission accept the Company’s request for waiver.
COMMISSION DECISION
Does the Commission wish to grant Idaho Power Company’s Request for Waiver of the Bill Stuffer Requirement?
■ If so, does the Commission wish to adopt Staff’s recommendations?
■ If not, what notice should Idaho Power be required to provide customers given the expedited nature of this case?

Lisa D. Nordstrom

M:IPCE0203_memo
DECISION MEMORANDUM 4