20030415Order No 29226 Notice of Workshop.pdf

Office of the Secretary
Service Date
April 15 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF TIME-OF -USE PRICING FOR IDAHO
POWER RESIDENTIAL CUSTOMERS.
CASE NO. IPC-O2-
NOTICE OF PUBLIC
WORKSHOP
ORDER NO. 29226
In Order No. 29196 issued on February 21 , 2003 , the Commission declined to
authorize residential time-of-use rates for Idaho Power customers. However, the Commission
directed Idaho Power Company to begin replacing its existing revenue metering equipment as
soon as possible with an automated meter reading (AMR) system. AMR allows the meter to be
read remotely and thus significantly reduces operational costs. Anticipating the replacement
process could be complete by the end of 2004, the Commission ordered Idaho Power to submit
an implementation plan no later than March 20, 2003.
On March 12, 2003 , Idaho Power Company filed three petitions in this docket: 1) a
Petition to Stay that portion of Order No. 29196 requiring the Company to submit the Advanced
Meter Implementation Plan by the March 20 deadline; 2) a Petition for Confirmation that Order
No. 29196 is or is not a final Order; and 3) a Petition for Reconsideration. In Order No. 29210
the Commission granted the Company s Petition for Stay. This present Order addresses Idaho
Power s remaining Petitions for Confirmation and Reconsideration, and schedules further
proceedings in this case.
PETITIONS FOR CONFIRMATION AND RECONSIDERATION
The Company would like an opportunity to be heard regarding AMR issues and the
installation timeframe mandated in Order No. 29196, but was uncertain how to proceed because
Order No. 29196 was not a "final" Order. Under Commission Rule 331 , parties may normally
seek reconsideration only of final Orders. Here Idaho Power seeks to clarify whether Order No.
29196 should be treated as a final Order. See Rule 323.03. The Commission will now attempt
to give clarity to this procedural situation.
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226
Commission Findin!!s:After reviewing the record and the Company s Petitions, the
Commission grants Idaho Power s Petition seeking Confirmation that Order No. 29196 is or is
not a "final Order" for purposes of reconsideration. In short, we find that Order No. 29196 is a
final Order" as to the issue of residential time-of-use pricing and an "Interlocutory Order" as to
AMR issues. Parties seeking review of our decision to not implement residential time-of-use
pricing at this time may file a Petition for Reconsideration within. 21 days of the service date of
this Order.
Because Order No. 29196 is not final with regard to AMR issues, the Commission
must deny the Company s Petition for Reconsideration as premature. Once a final Order
addressing AMR matters is issued at some point in the future, Idaho Power may choose to file
another Petition for Reconsideration that will be considered timely if filed within 21 days of that
final Order.
Given the concern about the finality of Order No. 29196, we find it reasonable to treat
Idaho Power s Petition for Reconsideration as a Petition for Clarification in order to address the
financial and implementation issues raised by the Company s Petition(s). At minimum, it
appears that disagreement exists regarding the quantifiable cost-effectiveness of AMR. As noted
on page 3 of the Company s Petition for Stay, counsel for Idaho Power personally advised
Commission Staff, Advocates for the West, and DRAM of the Company s Petition(s). None of
these parties filed a cross-petition or written response to the Company s petitions.
Without apparent objection, we find it appropriate to amend the interlocutory portions
of Order No. 29196 so that the Commission may establish a more complete record on AMR
issues. See Commission Rule of Procedure 322. Pages 10 and 11 of Order No. 29196 shall be
changed to read as follows:
While the Commission is pleased Idaho Power agreed in its reply comments
that AMR should be implemented, we do not understand Idaho Power
decision to delay AMR implementation until 2004. The Company has known
of AMR's substantial benefits since it completed testing an AMR system in
the Idaho City area in 1999. We believe that AMR should be implemented
soon as possible, with installation commencing this year and completed in
2GG4 and thus encourage the Company to work collaboratively with interested
parties to develop an Advanced Meter Im?lementation Plan that will best
benefit Idaho Power ratepayers.As a public utility, Idaho Power has the
responsibility to keep the rates charged for the services it provides "just and
reasonable.Idaho Code 9 61-301. This responsibility includes installing
infrastructure that reduces operation costs funded by ratepayers. Moreover
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226
the Company has a statutory duty to provide service that "shall be in all
respects adequate, efficient, just and reasonable.Idaho Code 9 61-302.
The Company indicated that it cannot implement AMR any earlier than 2004
because of a tight capital market and a lack of funding in its 2003 capital
budget. Reply Comments at 7. Although we do not doubt this to be true, the
Commission does not believe that these obstacles are insurmountable. The
Fourth Quarter 2002 Earnings Release Analyst Call indicated that Idaho
Power s earnings have improved significantly and present cash flow is strong
due to power cost recovery. The Company s credit rating is investment grade
and there is minimal short-term debt outstanding. The Company s Operation
and Maintenance expenses during 2002 were below forecast and are expected
to remain so. Given the Company s financial health is improving, we are
confident hopeful that Idaho Power will find a way to begin implementing
AMR this year. At a minimum, we expect the Company to implement AMR
as soon as practicable if its updated analysis indicates AMR remains cost-
effective for ratepayers.
To allow for further collaborative proceedings, we find the filing requirement for the
Advanced Meter Implementation Plan will continue to be stayed until: (1) a multi-party
implementation plan is endorsed by interested parties, (2) the Company unilaterally files its
Implementation Plan, or (3) the Commission issues an Order revoking the Stay and sets a new
filing date.
FURTHER PROCEEDINGS
On March 20, 2003, the Commission held a public meeting to discuss AMR issues
with Idaho Power and interested parties before ruling on the Petition for Reconsideration. At
that meeting, Idaho Power President and COO LaMont Keen stated that the Company was not
philosophically opposed to AMR and viewed its impleITJentation as inevitable at some point in
the future. Mr. Keen also committed to install an AMR system over a four-year period if, once
the Company updated its 1999 AMR analysis, AMR continued to be cost-effective.
In an effort to resolve AMR issues in a timely manner, we direct Idaho Power to
update its 1999 AMR analysis and file it with the Commission no later than Friday, May 9,
2003. This analysis should: 1) contemplate use of an "advanced meter" that is AMR- and TOU-
capable and allows for two-way communication between the Company and its customers; 2)
update the Company s AMR research, analysis, and experience to this point; 3) describe the
functionality of the AMR technology preferred by Idaho Power and the Company s rationale for
choosing it over other alternatives; 4) set out an implementation timetable that institutes AMR
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226
first in areas Idaho Power and its customers will receive the greatest benefits; 5) provide a cost
analysis of the AMR system given the implementation schedule proposed by the Company; and
6) identify the cost savings that the AMR system will achieve.
In conjunction with its updated AMR analysis, we also direct Idaho Power to file the
original AMR report relating to the Company s Idaho City pilot program with the Commission.
Not only has the Company s original AMR analysis been referenced several times in the record
thus far, the Commission and interested parties will need the Company s original report to
properly evaluate the updated analysis.
Before an Advanced Meter Implementation Plan is ultimately filed with the
Commission, we request that interested parties discuss possible methods to recover the cost of
the meters and their installation, along with net expense reductions. The Commission also
requests that these options, as well as the parties ' preferences , be discussed in the Company
Implementation Plan.
NOTICE OF PUBLIC WORKSHOP
YOU ARE HEREBY NOTIFIED that an Advanced Meter Public Workshop has been
scheduled to commence at 10:00 A.M. ON MONDAY. MAY 19. 2003. AT THE
COMMISSION HEARING ROOM. 472 WEST WASHINGTON STREET. BOISE.
IDAHO. [phone]. This public workshop will allow interested parties to offer Idaho
Power input on its AMR analysis, proposed timeline to install the system, and possible methods
to recover the cost of the meters and their installation. The workshop may also pinpoint topics
that may need additional research before Idaho Power files its Advanced Meter Implementation
Plan with the Commission. Idaho Power should be prepared to address the cost-effectiveness of
additional AMR options (i., discretionary "bells and whistles ) at the workshop.
YOU ARE FURTHER NOTIFIED that all further workshops, hearings and
prehearing conferences in this matter will be held in facilities meeting the accessibility
requirements of the Americans with Disabilities Act. In order to participate, persons needing the
help of a sign language interpreter or other assistance may ask the Commission to provide a sign
language interpreter or other assistance as required under the Americans with Disabilities Act.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
[phone] (TELEPHONE)
[phone] (FAX)
E-mail: secretarvCCV,puc.state.id.
YOU ARE FURTHER NOTIFIED that the parties participating in the public
workshop may offer to settle some or all of the issues to be discussed at the public workshop.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
an electric utility, and the issues presented in this case pursuant to Title 61 of the Idaho Code
specifically Idaho Code 99 61-302, 61-336, 61-501 and 61-503.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company Petition seeking
Confirmation that Order No. 29196 is or is not a "final Order" for purposes of reconsideration is
granted. Order No. 29196 shall be treated as a "final Order" as to residential time-of-use pricing
and an "Interlocutory Order" as to AMR issues.
IT IS FURTHER ORDERED that Idaho Power s Petition for Reconsideration is
denied. However, we clarify Order No. 29196 by amending the interlocutory portions of Order
No. 29196 as described in greater detail above.
IT IS FURTHER ORDERED that no later than May 9 2003, Idaho Power Company
shall file its original and updated AMR analysis as described in detail above.
IT IS FURTHER ORDERED that the Commission does hereby solicit public and
Commission Staff input on the Company s updated AMR analysis at the Public Workshop more
particularly described above.
THIS IS A FINAL ORDER AS TO SOME ISSUES. Any person interested in issues
finally decided by this Order or in interlocutory Orders previously issued in Case No. IPC-02-
12 may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter finally decided in this Order or in interlocutory Orders previously
issued in Case No. IPC-02-12. For purposes of filing a petition for reconsideration, this Order
shall become effective as of the service date. Idaho Code 9 61-626. Within seven (7) days after
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226
any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho , this 1'1 fIo.
day of April 2003.
/1l
8Jv
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:IPCE0212 _reconsid- wkshp.doc
NOTICE OF PUBLIC WORKSHOP
ORDER NO. 29226