20030731Response to Meeting.pdf

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IDAHO POWER COMPANY
O. BOX 70
BOISE, IDAHO B3707
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An IDACORP Company laD3 JUL 3 I Arll!: 50
MAGGIE BRILZ
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UT!LrrU::S COfll"1iSSION [phone]
FAJe [phone]
mbrilz (iY idahopower.com
Director, Pricing
July 31 2003
Mr. Lynn Anderson
Mr. Dave Schunke
Idaho Public Utilities Commission
P. O. Box 83720
Boise ID 83720
RE:Idaho Power Company s Response Following the Meeting with
PUC Staff on July 22 , 2003
Case No. IPC-02-
Dear Lynn and Dave:
Enclosed are copies of tables detailing the meter reading, connect-
disconnect and collection field costs per transaction by CIS operating area that you
requested at the meeting held on July 22. Consistent with the May 9 , 2003 Protective
Agreement, the Company has marked and printed the response on yellow paper. I
would appreciate your ensuring this information is stored in a secure location with
limited access and safeguarded from unauthorized disclosure.
Through previous responses to Staff's requests , the Company has
indicated that not all labor and transportation costs are eliminated post AMR due to the
need to provide metering support, service connects and disconnects , collections, meter
maintenance, industrial and interconnect metering, and new meter installation (see
response 5 dated June 9 2003).
The company s AMR analysis derives O&M savings from the elimination of full
time equivalents (FTEs) and their associated travel costs. It is important to understand
the nature of the Company s staffing arrangements in order to analyze these potential
O&M savings especially when selecting specific CIS operating areas in which to install
AMR. The Company currently staffs most CIS operating areas from regional hubs. If
AMR were to be installed in a CIS area rather than in an entire region, partial FTEs
would remain within the region. Consequently, O&M savings in any given CIS area
would be lower if we were to automate individual CIS areas instead of entire regions.
Additionally first year or installation year O&M savings are substantially lower than in
subsequent years. Installation year O&M savings are dependent on installation timing
and transitional cost.
At the meeting held on July 22 the Company agreed to investigate whether
there are "pockets" within the Company s service territory where AMR might be cost
effective. The Company will provide this data to Staff by August 5.
If you have any questions regarding the information provided, or if you
would like to meet to discuss the data, please do not hesitate to contact me.
Sincerely,?77~A5~
Maggie Brilz
MB:mb
Randy Lobb
Lisa Nordstrom
Ric Gale
Bart Kline
NOTE:CONFIDENTIAL ATTACHM~N~$ WITH THIS FILING
given to Dave Schunke I Lynn Anderson,
Randy Lobb & Lisa Nordstrom