20031021Fullen Direct.pdf

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC SERVICE
TO ELECTRIC CUSTOMERS IN THE STATE)
OF IDAHO. )
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CASE NO. IPC-E-03-13
IDAHO POWER COMPANY
DIRECT TESTIMONY
OF
SUSAN J. FULLEN
1 Q. Please state your name, address, and present
2 occupation.
3 A. My name is Susan J. Fullen. My business
4 address is 1221 West Idaho Street, Boise, Idaho. I am
5 General Manager of Customer Services and Metering for Idaho
6 Power Company.
7
8
Q.
A.
What is your educational background?
In 1988 I received a Bachelor of Science in
9 Management Technology from Lewis-Clark State College, and
10 in 1991 I received a Master of Business Administration from
11 Portland State University. I am currently enrolled in the
12 Doctor of Business Administration Program at the University
13 of Phoenix.
14 Q. Please outline your experience with Idaho
15 Power Company.
16 A. In July of 1980, I began my career with
17 Idaho Power as a Collections Clerk in Hailey, Idaho.
18 Shortly after that I relocated to the Southern Division
19 headquarters in Twin Falls and became a Customer Service
20 Representative. In 1982 I was promoted to Customer Service
21 Supervisor in the Boise Customer Service Department. In
22 1983, I relocated back to Twin Falls and was a Customer
FULLEN, DI 1
Idaho Power Company
1 Service Representative until 1985 when I was again promoted
2 to Customer Service Supervisor. In 1987 I was promoted to
3 Assistant Division Accounting Manager in the Idaho Power
4 Western Division. In 1991 I was promoted to the Ontario
5 District Manager position, and in 1992 I was promoted to
6 the Southern Division Accounting Manager. From November of
7 1994 through August of 1995 I was assigned to work on the
8 Distribution Department reorganization. In September of
9 1995, I was promoted to Manager of Energy Services of the
10 Eastern Region. In 1997, my title was changed to Area
11 Manager of the Southern Region. In 1999, I was promoted to
12 Customer Services Manager. In 2002, I was promoted to my
13 current position of General Manager of Customer Services
14 and Metering. In this position, I oversee the customer
15 care operations, the customer information system, the
16 billing processes, including metering, the demand-side
17 management activities, and the customer relations and
18 research activities. I have been active in the Edison
19 Electric Institute Customer Services Organization, serving
20 as the Chair for this committee in 2002.
21 Q. What is the purpose of your testimony in
22 this proceeding?
FULLEN, DI 2
Idaho Power Company
1 A. I will describe customer service and
2 community relations' developments since Idaho Power's last
3 general rate case.
4 Q. How have the Company's customer service
5 operations changed since the last general rate case?
6 A. The evolution of technology, improved
7 processes within the Company, and the change in customer
8 lifestyles have required Idaho Power to implement a new
9 business model that better serves customers. That model
10 includes changes that are identified as: (1) a move to
11 centralized customer care transactions, (2) the
12 installation of a new customer information system, (3)
13 additional payment options, ( 4) 2 4 hours a day, 7 days a
14 week access to account information, (5) improved outage
15 management and communication systems, ( 6) improved customer
16 service systems throughout the Company's service territory,
17 (7) demonstrated performance of our metering and billing
18 systems, (8) improved facility siting process, (9)
19 enhancements to community in vol veme n t activities , ( 1 0 )
20 additional customer assistance programs, (11) renewed focus
21 on demand-side management programs, ( 12) increased use of
22 benchmarking and performance monitoring, and (13) continual
FULLEN, DI 3
Idaho Power Company
1 emphasis on customer satisfaction measurements. I will
2 elaborate on each of these changes.
3 Q. Please describe the move to centralized
4 business transactions.
5 A. Prior to the establishment of the Customer
6 Service Center in 1994, Idaho Power operated with
7 approximately 31 District Offices. These offices
8 individually performed customer service functions. Those
9 functions included taking and processing cash payments,
10 work associated with customer movement, billing, credit and
11 collections, answering outage and trouble calls, and the
12 administrative aspects of new construction. Offices
13 operated Monday through Friday from 8:00 AM. to 5:00 PM
14 with smaller offices closing at noon. The difficulties
15 with this type of operation at Idaho Power were: (1)
16 limited office hours, (2) high operating expenses to
17 maintain the off i c e s , ( 3 ) di ff i cult and costly deployment
18 of customer service technology across 31 locations, ( 4)
19 maintaining consistency in operations, (5) multiple phone
20 contacts for customers needing to conduct business with
21 more than one Idaho Power district office, and (6)
22 inability to effectively measure and track performance
FULLEN, DI 4
Idaho Power Company
1 because of a lack of technology to capture the data.
2 In order to address these issues, in 1993 Idaho
3 Power embarked on a transition to a more centralized
4 operation beginning with the closing of the Shoshone
5 district office. This transition continued over several
6 years and has benefited our customers in a number of ways.
7 The benefits our customers experience from the new
8 approach include: (1) expanded full service business office
9 hours of 7:30 AM to 6:30 PM, Monday through Friday, (2) a
10 single phone number for customers in the Treasure Valley
11 and a toll-free 800 number for customers outside the
12 Treasure Valley calling area, (3) consistency in service
13 and information regarding our policies and procedures, and
14 (4) prompt service with over 80 percent of our inbound
15 calls answered within 30 seconds.
16 The Customer Service Center employs a well-trained
17 staff with specific customer service skills and uses state
18 of the art technology. Idaho Power monitors calls for
19 quality and to provide on-going training support to
20 personnel. All Customer Service Representatives (CSRs)
21 have defined standard performance expectations. A
22 performance management system is utilized that provides
FULLEN, DI 5
Idaho Power Company
1 feedback to ensure that our customers receive superior
2 customer service.
3 Idaho Power employs bi-lingual CSRs that provide
4 native language service to the Company's Spanish-speaking
5 customers. Additionally, we provide an outside language
6 line service to help Idaho Power communicate with other
7 non-English speaking customers.
8 Q. How has Idaho Power's Customer Information
9 System changed since the last general rate case?
10 A. In November of 2000, the Company installed a
11 new Customer Information System (CIS) that provides many
12 enhancements for customers as well as improved access to
13 customer information for our CSRs, thus increasing our
14 ability to be responsive. Bill presentation has been
15 improved for easier customer understanding. The system is
16 available nearly 24 hours a day, 7 days a week, and
17 facilitates the use of self-service technologies such as
18 Interactive Voice Response Units and integration with the
19 Internet. Single account number and enhanced rate option
20 capability, integrated trouble orders, and improved
21 customer relationship management documentation are now
22 standard.
FULLEN, DI 6
Idaho Power Company
1 The new CIS enables the Company to combine service
2 at multiple locations into one bill for the customer.
3 Residential and Small General Service accounts can be
4 combined for Budget Pay purposes. Large General Service
5 customers can combine all of their commercial services into
6 one bill. One such customer has over 100 accounts combined
7 into one bill.
8 The new system also allows for a summary of all
9 services to be displayed on the first page of the bill and
10 for the printing of informative messages to customers
11 directly on the bill.
12 Another CIS improvement is the ability to retain
13 permanent customer records. Now, when a customer is added
14 to the customer system, his or her information is not
15 deleted if he or she moves. Should that customer leave
16 Idaho Power and then subsequently return to our service
17 territory, his or her previous history can be retrieved.
18 The system also has the ability to track all
19 customers having service at a specific premises over time,
20 or to track every service any specific customer has had on
21 our system in the past. This increased availability of
22 information can assist in improving our response time in
FULLEN, DI 7
Idaho Power Company
1 communicating with the customer.
2 Should a customer's bill need to be revised or
3 recalculated, the new system automatically calculates and
4 prints a new bill, thus avoiding the manual calculations
5 that were performed in the past.
6 Also, the new CIS provides customers with the
7 opportunity to have duplicate bills and notices sent to a
8 third party of their choice.
9 Q. Please describe additional payment options
10 provided by the Company.
11 A. Idaho Power offers various payment options
12 to customers including 61 pay stations dispersed throughout
13 the Idaho service territory, electronic funds transfer,
14 automatic deduction from the customer's bank account,
15 internet payment options, payment by mail, check by phone,
16 and credit card payments.
17 Q. How has Idaho Power improved retail customer
18 access to account information?
19 A. Idaho Power provides customers with account
20 information through an Interactive Voice Response Unit
21 (IVRU) that allows customers to access their account
22 information nearly 24 hours a day, 7 days per week.
FULLEN, DI
The
8
Idaho Power Company
1 IVRU provides customers with the capability to make payment
2 arrangements, retrieve billing, payment, and meter reading
3 information, sign up for Budget Pay, and access
4 conservation and usage information. Idaho Power's
5 telephone menu has been recognized by Enterprise
6 Integration Group as "above average" for both the utility
7 industry and call center industry for overall quality,
8 voice quality, information delivery, user friendliness, and
9 ease of operation. Idaho Power's telephone menu scores are
10 shown on Exhibit 51, a one-page exhibit entitled "Idaho
11 Power Overall Score".
12 Q. Has Idaho Power also improved its outage
13 management and communication systems?
14 A. Yes. Ten years ago Idaho Power's outage
15 management system was not an integrated system. It
16 consisted of separate dispatch centers with limited
17 telephone lines and limited use of technology to convey
18 information. Although 24 hours a day, 7 days a week
19 coverage was available, it was often staffed by only one
20 person with multiple urgent activities to respond to while
21 keeping the electrical distribution system operational.
22 The ability to provide relevant customer information was
FULLEN, DI 9
Idaho Power Company
1 limited until additional help arrived. Idaho Power had no
2 system to contact customers prior to a planned outage, and
3 very little technology to identify an outage location
4 unless customers called to tell us they were out of
5 service. Today, Idaho Power provides 24 hour a day, 7 days
6 a week coverage for outage calls. The IVRU provides up to
7 date information for up to 144 customers simultaneously.
8 In case of unplanned outages, the Company has at least one
9 customer service specialist available at all times (along
10 with dispatch personnel), a monitoring system that notifies
11 the Company of outages, and a state of the art outage
12 management system that identifies outages by locations.
13 Additionally, there is an outbound calling system to inform
14 customers of planned outages prior to their occurrence.
15 Among 75 utilities, Idaho Power was ranked tenth in
16 the nation in a 2003 national survey conducted by J. D.
17 Powers and Associates in the outage notification category.
18 Exhibit 52, a one-page exhibit entitled "Providing Outage
19 Information - Top Rated Utilities", shows the ratings for
20 the top-rated utilities in this category.
21 Q. How does Idaho Power provide customer
22 service outside of the Customer Service Center?
FULLEN, DI 10
Idaho Power Company
1 A. Idaho Power has operation centers throughout
2 the service territory to build, operate, and maintain its
3 transmission and distribution facilities. These centers
4 are open Monday through Friday for general business
5 activities primarily related to the lines operations.
6 Idaho Power manages its operations to respond to
7 emergency situations 24 hours a day, 7 days a week, and is
8 staffed at designated locations throughout the service
9 territory to ensure quick response, as well as a presence
10 within the communities it serves.
11 As stated earlier, Idaho Power provides 61 pay
12 stations serving 37 communities throughout the Idaho
13 service territory to receive cash payments. In addition,
14 each of the operation centers has a drop box available for
15 check or money order payments. The operation centers also
16 provide assistance to customers (via a direct telephone
17 line to our customer service center) for most customer
18 inquiries, and can direct customers to the appropriate
19 personnel for other inquiries.
20 Idaho Power also has representatives staffed locally
21 within the regions to accommodate customers at their home
22 or business. Personal assistance is available for
FULLEN, DI 11
Idaho Power Company
1 customers in all rate classes regarding billing inquiries,
2 energy efficiency programs, power quality, and other
3 inquiries best accommodated through face-to-face
4 communication.
5 Collection and service connection activities are
6 performed out of the regional offices, and personnel are
7 available 24 hours a day to respond to these requests. In
8 addition, meter reading activities allow for personal
9 interaction at the customer's premises. Idaho Power
10 strives to provide information to all its employees in
11 order to respond to customers' inquiries through any of
12 these interactions.
13 Large industrial and commercial customers have a
14 dedicated representative who actively manages their
15 accounts. The representative is charged with ensuring that
16 these customers are aware of any planned outages and
17 changes to their service.
18 Q. How well are your metering and billing
19 systems performing?
20 A. Idaho Power's systems are performing very
21 well. Even though our service territory is more rural than
22 most, the Company cost per meter read is comparable to the
FULLEN, DI 12
Idaho Power Company
1 EEI average (see Exhibit 53 entitled "Cost Per Meter
2
3
Read") .
percent.
The Company's meter reading accuracy rate is 99.8
Additionally, Idaho Power's system-estimated
4 meter reads, corrected meter reads, and meter reread
5 requests are minimal as indicated by Exhibit 54, entitled
6 "Meter Reading Quality".
7 Q. In addition to the direct customer service
8 activities previously described, has Idaho Power made
9 improvements in the way it interacts with the communities
10 it serves?
11 A. Yes. The Company has implemented an
12 improved facility siting process, it maintains an active
13 community relations program, and provides substantial
14 corporate and employee contributions of both time and
15 money.
16 Q. Please describe Idaho Power's improved
17 distribution and transmission facility siting process.
18 A. In 2002, Idaho Power substantially revised
19 its new distribution and transmission facility siting
20 process to more actively promote community participation
21 and gather public input. The primary objectives of this
22 process are to develop, publish, and share long range plans
FULLEN, DI 13
Idaho Power Company
1 with jurisdictional authorities and customers in order to
2 foster an understanding of the facilities needed to meet
3 electricity needs, to purchase substation sites, and to
4 acquire transmission rights in advance of the need and
5 before physical development in a given area overtakes our
6 ability to economically provide necessary infrastructure.
7 The overall goal is to ensure that we provide the needed
8 infrastructure in a timely fashion and in a manner that is
9 compatible with community needs.
10 Q. How else is Idaho Power involved with the
11 communities it serves?
12 A. Idaho Power continues to work with our
13 communities and to encourage employee participation in
14 local activities. Idaho Power has five community relations
15 representatives and five community education
16 representatives dedicated to working with the communities
17 and schools to: (1) educate the public on energy usage,
18 electrical safety, hydroelectric relicensing, and rate-
19 related issues, (2) plan and manage growth, and (3) to
20 promote the local economies.
21 In addition, Idaho Power contributed over $640,000
22 in 2002 to community, civic, health, educational, and other
FULLEN, DI 14
Idaho Power Company
1 non-profit organizations. These contributions are made on
2 behalf of our shareholders and are not part of our current
3 rate request.
4 The Company's employees are among the most giving in
5 the region in both time and contributions. Idaho Power
6 employees, families, and friends have a major impact in
7 volunteering with several community projects and they have
8 set the standard for several events. Idaho Power employees
9 have consistently raised the most money per employee for
10 Idaho Public TV and have had the highest employee
11 participation rate for years. Company employees have
12 raised the most money for the American Heart Association
13 Heart Walk for 2002 and 2003. Idaho Power established a
14 Boise citywide record in 2002 with Rake Up Boise, a program
15 of the Neighborhood Housing Services, Inc., by raking 45
16 yards of senior citizens. Idaho Power has also provided
17 energy boxes to the more than 600 homes of senior citizens
18 whose yards were raked. The energy boxes contained a
19 florescent light bulb, an energy calculator and information
20 on efficient use of energy.
21 Company employees tied the record at four homes in
22 2003 for most homes painted as part of Paint the Town, a
FULLEN, DI 15
Idaho Power Company
1 program of the Neighborhood Housing Services, Inc., which
2 paints the homes of economically disadvantaged senior
3 citizens and disabled persons. Idaho Power also
4 participates in similar paint projects in Pocatello and in
5 Malheur County, Oregon.
6 In November and December, employees participate in
7 "Take a Turkey to Work Day" which distributes turkeys,
8 hams, and other food items to the Idaho Food Bank and other
9 food distribution agencies throughout Idaho Power's service
10 area. Idaho Power employees also participate in numerous
11 civic and community organizations, Chamber of Commerce
12 events, scouting groups, and fund raisers.
13 Q. What has Idaho Power Company done to assist
14 low-income customers?
15 A. Idaho Power has actively promoted and
16 managed the collection of contributions from customers for
17 Project Share and has made direct corporate contributions
18 in the amount of $25,000 per year from 1999 through 2003 as
19 well as an extra $100,000 was contributed during the recent
20 high energy cost years. In addition, for each dollar that
21 is collected via customer contributions, Idaho Power adds
22 10 percent to that amount for Salvation Army Project Share
FULLEN, DI 16
Idaho Power Company
1 administrative costs. Our regulatory department has
2 informed me that Project Share contributions are not part
3 of the Company's rate request.
4 In addition to Project Share, Idaho Power has spent
5 approximately $252,000 per year for Idaho's Low Income
6 Weatherization Assistance (LIWA) program since 1989. Like
7 the Project Share Program, these funds were also
8 supplemented during the energy crisis. LIWA expenses are
9 included in existing rates and continue to be included in
10 the current rate request. Besides its assistance to low-
11 income families, LIWA activities provide conservation
12 benefits to all customers and the Company.
13 Q. Please describe the Company's efforts in the
14 area of conservation or demand-side management (DSM) since
15 1994.
16 A. Idaho Power has been engaged in some form of
17 DSM activities since the last general rate case, although
18 the emphasis, delivery mechanisms, and rate recovery have
19 changed throughout the decade.
20 In the early 1990s, deferred accounting was used for
21 conservation programs and they initially appeared on the
22 utility's books as regulatory assets. Recovery of DSM
FULLEN, DI 17
Idaho Power Company
1 expenditures was deferred until regulatory authorization to
2 begin amortizing the accumulated balances could be obtained
3 and appropriate rates could be put into effect.
4 At first, annual expenditures for energy efficiency
5 rose steadily from $1.9 million in 1990 to a peak of $6.9
6 million in 1994. Please see Exhibit 55 for a summary of
7 DSM spending from 1990 to 2002. In the last half of the
8 decade, when it appeared that deregulation and increased
9 competition might jeopardize the recovery of regulatory
10 assets, the Company, with Commission approval, began
11 winding down the traditional Company-administered DSM
12 programs, and instead joined the Northwest Energy
13 Efficiency Alliance (NEEA) to promote regional market
14 transformation. Annual expenditures for energy efficiency
15 activities declined to $1.6 million by 2000.
16 However, then came the California energy crisis that
17 had dramatic ripple effects throughout the west including
18 extraordinarily high wholesale market prices in 2000 and
19 2001. One of the reactions to these high energy prices was
20 a renewed focus on DSM activities. In 2002, the Company,
21 with Commission approval, established the Energy Efficiency
22 Advisory Group (EEAG) and implemented the Energy Efficiency
FULLEN, DI 18
Idaho Power Company
1 Rider that exists today. The rider is Schedule 91 of the
2 Company's Idaho Tariffs.
3 Since 2002, in addition to its continued
4 participation in the NEEA, the Company has worked closely
5 with the EEAG in reestablishing a broader portfolio of DSM
6 activities at Idaho Power. Material progress has been
7 made. The Compact Fluorescent Lighting (CFL) and the
8 Energy Star room air-conditioning pilot program have been
9 successfully completed. Ongoing energy efficiency programs
10 for residential customers includes the air-conditioner
11 cycling pilot program, Bonneville Power Administration
12 (BPA) CFL packets, BPA Energy Check-ups, and BPA Super Good
13 Cents/Energy Star manufactured homes incentives. Idaho
14 Power's ongoing commercial programs are the school building
15 operator training initiative conducted in partnership with
16 the Northwest Building Operators Association and Air Care
17 Plus Program, which is a Heating, Ventilating, and Air
18 Conditioning Efficiency Program. We are currently
19 implementing new programs for irrigation efficiency and for
20 industrial efficiency. Additionally, we have a new
21 residential construction program, a new commercial program
22 for both existing and new construction, and a BPA program
FULLEN, DI 19
Idaho Power Company
1 for multi-family construction in the planning stages.
2 Q. What is the purpose of the Northwest Energy
3 Efficiency Alliance and how does it benefit Idaho Power
4 customers?
5 A. Idaho Power was one of the founders of the
6 NEEA and has been a funder and an active participant since
7 it's inception in 1997. NEEA's mission is to catalyze the
8 Northwest marketplace to embrace energy efficient products
9 and services. This mission is accomplished through a
10 portfolio of projects that works to generate financial
11 return for consumers in the region by encouraging the
12 acceptance of energy-efficient products and services in the
13 marketplace. This acceptance, in turn, will transform
14 markets in the region so that consumers purchase these
15 products as a normal part of their buying habits.
16 The primary benefit to Idaho Power customers is low-
17 cost electricity savings. In 2002 alone, the NEEA has
18 saved 45 average megawatts (aMW) in the region at a cost of
19 about a penny per kilowatt-hour. NEEA estimates that Idaho
20 Power customers have saved about 3 aMW of this energy. The
21 savings have come about through the availability of more
22 energy-efficient products in Idaho stores, through the
FULLEN, DI 20
Idaho Power Company
1 adoption of newer efficient technologies and through
2 education of customers on the ways to be more efficient.
3 The following are examples of benefits provided to
4 our customers over the past year facilitated by the
5 coordination between NEEA-supported projects and Idaho
6 Power.
7 1. Compact fluorescent light bulb sales from
8 the coupon promotion with local retailers totaled 42,642
9 (as of February 2003). We expect approximately 2.8 million
10 kilowatt-hours saved each year for utility customers.
11 2 . The year 2002 closed with a market
12 penetration of ENERGY STAR clothes washers of 27.52 percent
13 in the state of Idaho, up from 11.47 percent during first
14 quarter 2001.
15 3 . In November 2002, the Northwest Building
16 Operators Association launched a Level 1 training series
17 for Building Operator Certification in partnership with
18 Idaho Power. As a result, 27 school operators were
19 certified from 25 school districts within the Idaho Power
20 service territory. The estimated savings from these 25
21 school districts is 750,000 kilowatt-hours annually.
22 4 . One NEEA measure, termed "commissioning", is
FULLEN, DI 21
Idaho Power Company
1 the act of providing documented confirmation that building
2 systems function in compliance with design criterion. By
3 incorporating commissioning into the construction of the
4 Ada County Courthouse project in downtown Boise, the
5 project is expected to use 20-30 percent less energy than
6 if it had moved ahead without commissioning. The measure
7 is saving about 460,000 kilowatt-hours per year at the
8 340,000 square-foot building.
9 5 . The 2000 International Energy Code, which
10 includes the International Energy Conservation Code, was
11 adopted in the state of Idaho in March 2002. NEEA
12 contributed to this process through funding of liaison
13 work, city and county education, and training for
14 architects, engineers, and inspectors. Estimated
15 additional costs to the residential sector will be $12.5
16 million, with a return-on-investment of $20.5 million in
17 energy savings. On the non-residential side, the
18 additional cost of $713,000 will result in $4.3 million in
19 energy savings.
20 6 . Woodgrain Millwork, with plants in Fruitland
21 and Nampa, has launched a complete motor inventory of their
22 more than 500 motors and replaced some with energy
FULLEN, DI 22
Idaho Power Company
1 efficient models. The replacement of just one 250
2 horsepower motor with a higher efficiency model has
3 resulted in an annual electric savings of $600 a year for
4 the company. The potential savings of upgrading the
5 efficiency of the 500 motors as they fail is $300,000 a
6 year.
7 7 . Henggeler Packaging in Fruitland, Henningsen
8 in Twin Falls, and Idacold Storage in Nampa are saving over
9 a million kilowatt-hours a year because of variable
10 frequency drive installations in their fruit and cold
11 storage facilities. That translates to about $50,000
12 annually for these companies.
13 8 . The city of Emmett, Idaho is saving over
14 $37,000 a year in net operations costs at its wastewater
15 treatment plant because of efficiency improvements
16 instituted there by BacGen.
17 Idaho also benefits from the NEEA's research into
18 new innovative products and services. In addition, the
19 NEEA brings together regional energy efficiency players in
20 a collaborative effort so that ideas and methods can be
21 shared. The NEEA provides a background and structure for
22 Idaho Power to implement local delivery programs so that
FULLEN, DI 23
Idaho Power Company
1 Idaho Power can bring DSM programs to customers faster and
2 largely developed.
3 Idaho Power continues to actively participate on the
4 NEEA Board and will be evaluating continued participation
5 once the present term expires in 2004.
6 Q. Is Idaho Power participating in other
7 conservation activities?
8 A. The Company has participated in Bonneville
9 Power Administration's Conservation and Renewables Discount
10 since 2001. This program will deploy $525,600 annually for
11 programs targeted to Idaho low-income residential customers
12 through 2006.
13 Q. How does DSM fit into the Company's planning
14 process?
15 A. The Company has submitted its 2002
16 Integrated Resource Plan (IRP) that identifies demand-side
17 resources as a part of the overall resource portfolio. The
18 2002 IRP viewed demand-side activities as an alternative to
19 help address future system deficiencies. At the same time,
20 the document cautioned that conservation and demand-side
21 measures must be carefully targeted to cost-effectively
22 address the projected deficits due to the nature and timing
FULLEN, DI 24
Idaho Power Company
1 of the projected peak deficits and transmission overloads.
2 Idaho Power is actively engaged in the development
3 of its 2004 IRP. It is my understanding, from discussions
4 with Mr. Gale and Mr. Said, that this 2004 process will
5 place a greater emphasis on a more collaborative approach
6 than has been the case in recent IRP efforts. The process
7 change is driven by the changing energy environment and by
8 Commission direction. It is also my understanding that DSM
9 activities will be evaluated and integrated with supply-
10 side activities in the 2004 IRP.
11 Q. What is Idaho Power Company's corporate
12 position with respect to conservation or DSM?
13 A. In light of the changes in our industry, and
14 the political, and regulatory landscape, Idaho Power has
15 developed a new policy direction for demand-side
16 management. This policy focuses on four core values: (1)
17 customer efficiency and satisfaction, (2) resource planning
18 and acquisition, (3) environmental ethics and stewardship,
19 and (4) responsibility to all stakeholders. Idaho Power
20 will pursue a balanced approach to DSM program selection
21 that reflects these four core values.
22 Q. Is the Company truly committed to pursuing
FULLEN, DI 25
Idaho Power Company
1 that goal?
2 A. Yes. I have fully reviewed our DSM
3 activities and plans with senior management and have the
4 complete support of Mr. Keen and the rest of the Idaho
5 Power's executive management team.
6 Q. Does Idaho Power conduct benchmarking with
7 other utilities and measure its customer service
8 performance?
9 A. Yes. Idaho Power actively monitors its
10 Customer Service Key Performance to ensure that excellent
11 customer service is provided. One key performance
12 indicator is "Automated Call Distribution" Service Level.
13 Exhibit 56 shows Idaho Power's performance in this area.
14 Exhibit 57 is a "Call Handle Time Comparison" between Idaho
15 Power and the 2002 average of EEI-surveyed companies.
16 Exhibit 58, entitled "Call Volume", is a breakdown of the
17 number of calls handled by the customer service interactive
18 voice response (CSIVR) unit, the outage interactive voice
19 response (Outage IVR) unit, and customer service
20 representatives calls (CSR calls).
21 The customer care operation also benchmarks with
22 peer utilities by utilizing the Edison Electric Institute's
FULLEN, DI 26
Idaho Power Company
1 DataSource Tool, which provides operating data from 63
2 energy companies across the nation. This data indicates
3 that the Company performs at a level comparable with or
4 above our peers. A comprehensive breakdown of all of Idaho
5 Power's benchmark statistics, that indicate how the Company
6 performs in the areas of customer calls and billing and
7 payment statistics, is included in my workpapers.
8 Q. Does Idaho Power survey its customers for
9 levels of customer satisfaction and, if so, what are the
10 results of those surveys?
11 A. Yes, it does. Idaho Power relies primarily
12 on two studies for customer satisfaction measurement.
13 Idaho Power has contracted with Burke Customer Satisfaction
14 Associates (CSA) to conduct quarterly customer relationship
15 surveys since 1995. In addition to the Burke CSA surveys,
16 Idaho Power acquires the results of the annual J.D. Powers
17 and Associates Electric Utility Residential Customer
18 Satisfaction Study. The J.D. Powers and Associates study
19 is used primarily as a benchmark to other electric
20 utilities.
21 During the 2000-2001 energy crisis, Idaho Power's
22 satisfaction levels dropped in tandem with those of other
FULLEN, DI 27
Idaho Power Company
1 western utilities. Upon implementation of the Company's
2 new business model, Idaho Power began to experience
3 improved customer satisfaction ratings from all customer
4 segments. Idaho Power's customer satisfaction has steadily
5 improved since 2001 and Idaho Power is hoping to exceed
6 pre-energy crisis satisfaction levels.
7 Idaho Power's primary measure for customer
8 satisfaction in the Burke CSA surveys is the Customer
9 Relationship Index (CRI). The CRI encompasses responses
10 from all customer segments to five questions related to
11 overall satisfaction, overall quality, overall value,
12 likelihood to recommend, and Idaho Power's caring. Burke
13 CSA's most recent survey results show Idaho Power's CRI at
14 82 percent which indicates a higher level of satisfaction
15 than at any other time since Burke CSA has been conducting
16 surveys for Idaho Power. According to this report, not
17 only has Idaho Power improved its customer satisfaction
18 level in every customer segment, but Idaho Power is also
19 approaching customer satisfaction levels of what Burke CSA
20 considers a "Superior Performing Firm". See Exhibit 59,
21 which includes a "Summary of Overall Measures and Customer
22 Relationship Index for Idaho Power" and "Strength of
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Idaho Power Company
1 Customer Satisfaction".
2 In addition to the Burke CSA studies, J.D. Powers
3 and Associates also surveys Idaho Power customers in its
4 annual Electric Utility Residential Customer Satisfaction
5 Study. In 1999, Idaho Power was ranked second in the
6 nation and tied for first in the western region in the J.D.
7 Powers and Associates' customer satisfaction study. In the
8 2002 study, Idaho Power was reclassified as a medium-sized
9 utility along with eighteen other utilities that have
10 between 250,000 and 400,000 residential customers. The
11 2003 survey results indicate that Idaho Power rated eighth
12 in the nation in the medium-sized utility group and was
13 first among northwest utilities. (See Exhibit 60). The
14 2003 J.D. Powers and Associates study shows Idaho Power
15 providing significantly high levels of customer
16 satisfaction in the areas of Customer Service, Billing and
17 Payment Options, Power Quality and Reliability (especially
18 regarding keeping customers informed about an outage),
19 Company Image, and Price and Value. Idaho Power is pleased
20 with our current customer satisfaction performance and
21 remains committed to providing superior service to our
22 customers.
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Idaho Power Company
1 Q. Does this conclude your direct testimony in
2 this case?
3 A. Yes, it does.
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Idaho Power Company