20030714Order No 29291 Notice of Comment Deadlines.pdf

Office of the Secretary
Service Date
July 14 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 COMMENT
DEADLINES
ORDER NO. 29291
PROCEDURAL BACKGROUND
In Case Nos. IPC-02-2 and -, the Commission directed Idaho Power and the
Energy Efficiency Advisory Group (EEAG) to "evaluate and report to the Commission on the
viability of a Time-of-Use residential metering program by September 12, 2002.Order No.
29026 at 22. After soliciting public comment on Idaho Power s "Report on Residential Time-of-
Use Pricing" (Report), the Commission declined to authorize residential time-of-use rates for
Idaho Power customers. Order No. 29196. However, the Commission directed Idaho Power
Company to begin replacing its existing manual read 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. The Commission
granted the Company s Petition for Stay and denied the Petition for Reconsideration of AMR
issues as premature in Order Nos. 29210 and 29226, respectively. However, the Commission
clarified and amended the interlocutory portions of Order No. 29196 so that a more complete
record could be established on AMR issues.
To allow for further collaborative proceedings, the Commission stayed the
Company s Advanced Meter Implementation Plan filing requirement until: (1) a multi-party
NOTICE OF COMMENT DEADLINES
ORDER NO. 29291
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. Idaho Power filed its updated AMR analysis on May 9, 2003 in anticipation of the
advanced metering public workshop, which was intended to 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.
IDAHO POWER'S UPDATED AMR ANALYSIS
At the advanced metering public workshop on May 19 2003 , Idaho Power discussed
the findings of its updated AMR analysis, the criteria it used for choosing AMR technology, and
the costs associated with different technologies. The Company proposed implementing
powerline AMR technology over a four-year period (2004-2007) at a cost of $86.5 million.
Under this scenario, Idaho Power predicted its customers would incur greater costs for the first
six years of the project and would not break even until year 2024. The Company noted that this
is longer than the life of many components comprising an AMR system.
In giving its recommendation, Idaho Power advised against implementing AMR
because it is not a prudent investment at this time. According to the fmancial analyses it
conducted in 2002 and 2003 , the Company does not believe the cost of an AMR system is
justifiable based on the savings achieved by eliminating the costs associated with manual meter
reading processes. However, the Company intends to continue monitoring developments and
conducting periodic assessments to determine the appropriate time for deployment. Over time
the Company predicted that AMR will become more cost-effective as employee costs increase
with inflation and AMR technology costs decrease. Following the workshop, the Company
encouraged participants to submit additional questions to Idaho Power for a written response.
NOTICE OF COMMENT DEADLINES
YOU ARE HEREBY NOTIFIED that although Order No. 29133 issued in October
2002 previously sought comment on the Company s initial TOU Report, we now seek comment
on Idaho Power s May 9, 2003 updated AMR filing. In particular, the Commission seeks
comment on the following issues:
1. Should the Commission direct the Company to implement AMR on its system?
NOTICE OF COMMENT DEADLINES
ORDER NO. 29291
2. How can advanced metering technology enable Idaho Power Company and
ratepayers to make the most of future "smart grid" transmission and distribution
technology?
3. As part of a wise investment, what features or technology should the Company
employ?
4. Under what timeframe should the Company implement AMR?
5. How should the Company recover the costs associated with AMR?
YOU ARE FURTHER NOTIFIED that the deadline for riling written comments or
protests with respect to Idaho Power s May 9, 2003, updated AMR filing and the continued use
of Modified Procedure in Case No. IPC-02-12 is Friday, August 15, 2003. IDAPA
31.01.01.202.02. Persons desiring a hearing must specifically request a hearing in their written
protests or comments.
YOU ARE FURTHER NOTIFIED that the deadline for Idaho Power Company to
me written reply comments with respect to this case is Friday, August 5, 2003.
YOU ARE FURTHER NOTIFIED that written comments concerning this Filing must
be mailed to the Idaho Public Utilities Commission and the Idaho Power Company at the
following addresses:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
BARTON L. KLINE
MAGGIE BRILZ
IDAHO POWER COMPANY
O. BOX 70
BOISE, ID 83707-0070
Street Address for Express Mail:
472 WWASHINGTON ST
BOISE, ID 83702-5983
Email: bkline~idahopower.com
mbrilz~idahopower .com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.state.id.under the "File Room" icon. Once at
the "File Room" page, select "File a Comment " fill in the case number as it appears on the front
of this document, and enter your comments. These comments must also be sent to the Applicant
at the e-mail addresses listed above.
NOTICE OF COMMENT DEADLINES
ORDER NO. 29291
YOU ARE FURTHER NOTIFIED that if no additional written comments or protests
are received within the deadline, the Commission will consider the matter on the record
presented thus far and enter its Order without a formal hearing. If additional comments or
protests are filed within the deadline, the Commission will consider them and in its discretion
may set the matter for hearing or may decide the matter and issue its Order on the basis of the
written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that Idaho Power s May 9, 2003 updated AMR
filing can be viewed online at www.puc.state.id.by clicking on "File Room" and "Electric
Cases " or it can be viewed during regular business hours at the Idaho Public Utilities
Commission, 472 West Washington Street, Boise, Idaho and Idaho Power Company located at
1221 West Idaho Street in Boise, Idaho (388-2200).
ORDER
As more particularly described above, IT IS HEREBY ORDERED that the
Commission does solicit public Company and Commission Staff written comment on the
Company s May 9, 2003 updated AMR filing in accordance with the foregoing schedule.
NOTICE OF COMMENT DEADLINES
ORDER NO. 29291
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /'1/1-.
day of July 2003.
JJ~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
ission Secretary
O:IPCE0212 not3.doc
NOTICE OF COMMENT DEADLINES
ORDER NO. 29291