20031030Final Order No 29371.pdf

Office of the Secretary
Service Date
October 30, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR AUTHORITY
TO IMPLEMENT A POWER COST
ADJUSTMENT (PCA) RATE FOR ELECTRIC
SERVICE FROM MAY 16, 2003 THROUGH
MAY 15, 2004.ORDER NO. 29371
CASE NO. IPC-03-
On September 19 2003, the Idaho Irrigation Pumpers Association, Inc. ("Irrigators
applied to the Idaho Public Utilities Commission for $10 670.15 of intervenor funding pursuant to
Idaho Code 9 61-617 A and Rules 161-165 of the Commission s Rules of Procedure, IDAP A
31.01.01.161-165. No motions objecting to the Irrigators ' Petition were filed within the 14-day
period set forth in Rule 164. By this Order, we grant $5 335.08 of the total amount claimed by the
Irrigators pursuant to the Idaho Code and the Commission s Rules of Procedure.
STATUTORY STANDARDS
Idaho Code 9 61-617 A and Rules 161-165 of the Commission s Rules of Procedure
provide the framework for awards of intervenor funding. Section 61-617 A(2) provides that the
Commission shall rely upon the following considerations in awarding funding to a given intervenor:
(a) whether the intervenor materially contributed to the decision rendered by the Commission; (b)
whether the alleged costs of intervention are reasonable in amount and would be a significant
financial hardship for the intervenor to incur; (c) whether the recommendation made by the
intervenor differed materially from the testimony and exhibits of the Commission Staff; and (d)
whether the testimony and participation of the intervenor addressed issues of concern to the general
body of users or consumers.
Subsection 5 of this statute provides that intervenors who are in direct competition with
the public utility involved in proceedings before the Commission shall not be granted funding. The
statute also provides that the total award for all intervening parties combined shall not exceed
$40 000.00 in any proceeding.
Rule 162 of the Commission s Rules of Procedure provides the procedural requirements
with which an application for intervenor funding must comply. The application must contain: (1) an
itemized list of expenses broken down into categories; (2) a statement of the intervenor s proposed
ORDER NO. 29371
finding or recommendation; (3) a statement showing that the costs the intervenor wishes to recover
are reasonable; (4) a statement explaining why the costs constitute a significant financial hardship for
the intervenor; (5) a statement showing how the intervenor s proposed finding or recommendation
differed materially from the testimony and exhibits ofthe Commission Staff; (6) a statement showing
how the intervenor s recommendation or position addressed issues of concern to the general body of
utility users or customers; and (7) a statement showing the class of customer on whose behalf the
intervenor appeared. Finally, Rule 165 provides that the Commission must find that the intervenor
presentation materially contributed to the Commission s decision.
There were no motions filed in opposition to the Irrigators' Application for intervenor
funding within the 14-day time period provided in Rule 164.
IRRIGATORS' APPLICATION
As more fully explained in the Irrigators' comments and in the Stipulation signed by the
parties, the Irrigators obj ected to Idaho Power s use of 1993 normalized sales data in establishing the
true-up rate for 2003-2004 Power Cost Adjustment ("PCA"). The Irrigators and Staff argued that the
use of stale sales data could result in an over-collection of target true-up revenue. To address this
concern, the parties agreed in the Stipulation to a true-up ofthe target true-up revenue in future PCA
cases.
The Irrigators also objected to Idaho Power s calculation of the 2002-2003 PCA deferral
amounts for Schedules 7, 19, and 24 that were to be added to the 2003-2004 PCA rate. Because
Idaho Power used 1993 normalized sales data rather than the 2000 normalized sales data that was
initially used to calculate the deferral amount, the deferral amount for Schedule 24 was
approximately 14% higher than what the Commission authorized to be deferred in the 2002-2003
PCA case. To address this issue, the parties agreed in the Stipulation that Schedules 7, 19, and 24
would receive a credit in the 2004-2005 PCA in an amount equal to the difference between the
amount Idaho Power is currently proj ected to collect for the 2003-2004 PCA and what they would be
projected to collect if the 2000 sales data was used to calculate the deferral amount for the same
period.
The Irrigators argued that their position with respect to the calculation ofthe 2002-2003
deferral amount for Schedules 7, 19, and 24 differed materially from the positions taken by the
Commission Staff. According to the Application, the Irrigators pointed out that Idaho Power
ORDER NO. 29371
deferral amounts for Schedules 7 , 19, and 24 were too high because Idaho Power used the 1993
customer class sales data as opposed to the 2000 sales data. Order No. 29243 at 8.
The Application also stated that the Irrigators' participation addressed issues of concern
to the general body ofIdaho Power s ratepayers because the PCA true-up rate affects all customer
classes. By joining the Commission Staff in pointing out that the PCA mechanism suffered from
using stale sales data, the parties were able to craft a resolution that minimizes the possibility of
over- or under-collection of the PCA rate.
The Irrigators argued that the expenses and costs set forth in Exhibit A are reasonable in
amount and were necessarily incurred (1) in reviewing and evaluating Idaho Power s Application
filing comments, and preparing data requests for a possible hearing, and (2) participating in the
scheduling conference, subsequent settlement negotiations, and the resulting Stipulation presented to
the Commission. These expenses are summarized as follows:
Legal fees
Eric L. Olsen
30.5 hours rE? $150/hr
Costs: travel & long distance expenses
590.
$ 430.
Consultation fees
Tony Yankel
56.5 hours rE? $100 per hour $5.650.
TOTAL $10,670.
The Application maintained that these expenses constitute a financial hardship. The
Irrigators are an Idaho nonprofit corporation qualified under LR.C. 9 501(c)(5) representing farm
interests in electric utility rate matters affecting farmers in southern and central Idaho. The Irrigators
rely solely upon dues and contributions voluntarily paid by members, together with intervenor
funding to support activities and participate in rate cases. The Irrigators have only one part-time paid
employee while its officers and directors serve without compensation. The Irrigators explained that
they have substantial accounts payable as a result of participation in this case as set out in Exhibit A.
They also anticipate they will need to incur substantial expenses in the upcoming Idaho Power and
PacifiCorp general rate cases.
ORDER NO. 29371
DISCUSSION AND FINDINGS
We find that the Irrigators generally meet the procedural requirements for intervenor
funding according to Idaho Code 9 61-617A and Rule 162. IDAPA 31.01.01.162. We find that
while the Irrigators addressed issues primarily of concern to the irrigation customer class, the
Irrigators also addressed issues of concern to the general body of ratepayers. We also find that these
costs and expenses constitute a significant financial hardship for this organization if they were not
recovered.
Furthermore, the Commission finds that the Irrigators materially contributed to the record
in this case and took a position substantially different than that ofthe Commission Staff. Staff would
have agreed to the use of actual 1999 energy sales data to calculate the appropriate 2003 PCA rate for
the three customer groups that continue to pay off2002 deferrals. While 1999 numbers would have
left Schedule 9 (Large General Service) and Schedule 19 (Large Power Service) customers only
slightly worse off than using 2000 actual energy consumption, Schedule 24 (Irrigation Service)
customers would have been worse off by $1 million. The Irrigators identified this problem and
argued that 2000 actual energy consumption must be used to calculate the 2003 PCA rate. As a
result of the Irrigators' advocacy, the 2000 actual energy consumption data was adopted in the
Stipulation.
Although the Irrigators ' Application and supporting documentation generally comply
with the statutory requirements described above, Commission Rule 164 states that "an intervenor
requesting intervenor funding must apply no later than fourteen (14) days after the last evidentiary
hearing in a proceeding or the deadline for submitting briefs, proposed orders, or statements of
position, whichever is last" IDAPA 31.01.01.164 (emphasis added). The Irrigators' Application
was filed on September 19, 30 days after the last submission (the Stipulation) was filed on August
20.
Mr. Eric Olsen, counsel for the Irrigators, attached a cover letter to the Application
stating:
Given the procedural posture of this case being submitted on the Stipulation of
the parties, I was unclear as to when the time period for filing the Application
would begin under Commission Rule 164 because there was no evidentiary
hearing or deadline for submitting briefs, proposed orders or statements of
position.
ORDER NO. 29371
Mr. Olsen also stated that it was always the Irrigators' intent to file an Application for Intervenor
Funding in this case.
Procedural Rule 164 enables the Commission to be in possession of all intervenor
funding petitions at the time it issues a final Order. Not only does this facilitate timely and efficient
resolution of all the issues in a case, it also reduces the confusion created by multiple reconsideration
deadlines. In short, Rule 164 ensures that the reconsideration periods for substantive and intervenor
funding issues run simultaneously.
Given the procedural history of this case and the language of Rule 164, the Irrigators
confusion about the timing ofthe 14-day filing period is understandable. The Stipulation signed by
the Irrigators and filed by Idaho Power on their behalf on August 20, 2003 , was in essence a
statement of position" under Rule 164. As such, the Irrigators' Petition is untimely and could be
denied in full.
That said, the Commission believes it would be unfair to ignore the substantial efforts
expended and significant results achieved by the Irrigators on behalf ofthe irrigation customer class.
Thus, the Commission approves an intervenor funding award in the amount of$5 335.08. Under
these circumstances, the Commission finds an award of that amount is fair and will further the
statute s purpose of encouraging "participation at all stages of all proceedings before the commission
so that all affected customers receive full and fair representation in those proceedings.Idaho Code
961-617A(1).
According to Rule 165(3), intervenor funding awards paid by a utility will be an
allowable business expense in the pending rate case or, if the proceeding is not a rate case, in the
utility's next rate case. Rather than disrupt the PCA rates that have been in effect since May 2003
this award may be included as an adjustment chargeable to Schedule 24 irrigation customers in Idaho
Power s general rate case in Case No. IPC-03-13.
ORDER
IT IS THEREFORE ORDERED that the Application for intervenor funding filed by the
Idaho Irrigation Pumpers Association, Inc. is partially granted in the amount of $5 335.08.
IT IS FURTHER ORDERED that Idaho Power is directed to pay this amount within 28
days of the date of this Order.
ORDER NO. 29371
IT IS FURTHER ORDERED that Idaho Power may include the costs ofthis intervenor
funding award to the Idaho Irrigation Pumpers Association as an adjustment chargeable to Schedule
24 irrigation customers in Idaho Power s general rate case in Case No. IPC-03-13.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days ofthe service date ofthis Order. Within seven (7) days
after 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 30"-'
day of October 2003.
(/(P-PA KJELL , PRESIDENT
~e.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
ISSlOn Secretary
O:IPCE0305 In5 IntrvnrFund
ORDER NO. 29371