20040505Comments.pdf

APR-30-200~ FRI O~".: 19 PM WEBB WEBB GUERRY FAX NO..;
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208734576 P. 01
Idaho Rural CoWlcil
POBox 118
Bliss, Idaho 83314
[phone] Fax: [phone]
www.idahoruralcouncil.org
Idaho Public Utilities Commission
P OBox83720
Boise, Idaho 83720-0074
FAX: [phone]
Re: IPC~O3-
Dear Commissioners;
The Idaho Rural CoWlcil would like to make the following comments
concerning Idaho Power s Proposed Rate Increase, IPC-03-13.
The Idaho Public Utilities Commission should require Idaho Power to:
implement measures that reduce the impacts of any rate increase on those
c~tomers who will be most seriously affected by the increase;
immediately begin to implement a progressive, aggressive Demand
MiUlagement Program. that would minimize demand peaks and improve the
efficiency of Idaho Power s system; and begin to implement measures that
diversify its energy portfolio.
Many of the measures that would mitigate the effects of a rate increase
would also contribute to an effective Demand Management Program.
1. Mitigate Impacts on Customers Most Affected by Rate Increase
Idaho Power s Proposed Rate Increase would be devastating to many of its
customers. Low-income and fixed-income families and irrigation customers
would be the hardest hit. Idaho Power should be required to implement
measures that reduce the impacts of any rate increase on these customers.
The Idaho Rural CouncH supports an increase in funding for
weatherization. programs to an annual amount of $1.2 million. We also
suPPOI1 time of a use rate structure and tiered rate structure
with the threshold raised from 800 kw 1000 kw.
APR" 3~-2004_" FR I 05: 19 PM WEBB WEBB GUERRY FAX NO. 208734576 P. 02
2. lmpl~.ent a Progressive, Aggressive Demand Management Program
Within Idaho Power s customer base there exists a large and virtually
l,U1taPpedconservation and efficiency resource. Idaho Power has done very
little to1;3ke advantage of this tremendous resource. An effective
DeIDaIld Management Program could reduce the effects on those most
impacted by higher energy prices, reduce the demand spikes. diversify
the energy portfolio and hedge against future energy crises and high
prices.
An effective Demand Management Program should consider the unique needs
and opportunities of each customer class and use them to fully take
advantage of this resource. A progressive, aggressive Demand Management
Program would utilize this resource to reduce the demand peaks, levelize
demand and improve the efficiency of the Idaho Power system.
that makes customers an active participant and works with customers to
manage demand would utilize this resource and increase ownership in the
system by making them an active participant
There are a variety of measures that could be used in a progressive,~ssive Demand Management Program. A few examples are time of use
rates, tiered rate structure (based on usage), and cycling (voluntarily
tumingoff power for short periods of time during peak use times in
returi1for lower rates or some other incentive).
The Idaho Rural Council is strongly opposed to an increase in fixed
charges. Fixed charges discourage conservation. The Idaho Rural Counci)
supports the use of a true-up mechanism to allow for the recovery of
demand:management costs.
The Cortuni ssion should require Idaho Power to immediately begin
implementing a progressive, aggressive Demand Management Program.
An effective Demand Management Program would contribute to the
diversification of Idaho Power s energy portfolio.
3. Diversify Energy Portfolio
Jdal)oPower relies a very limited portfolio of energy sources tor its
power needs. This has resulted in unnecessarily high prices, price
instability and concerns about the adequacy of supply during periods of
very high demand. The Commission should require Idaho Power to begin to
implement measmes to meaningfully diversify its energy ponfolio.
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Idaho Power s heavy reliance on hydro power results in wild fluctuations
in the amount of inexpensive electricity available to its customers.
Idaho Power s remedy for this problem is whol1y inadequate - to add gas
fueled power plants when the demand and price for natural gas is high
and continues to escalate.
The Commission should require Idaho Power Company to include a
significant amount of non-hydro renewable energy in its energy
port!oli(). Idaho Power s recent interest in wind power is a small step
in the right direction, but Idaho Power Company needs to do much more to
encourage and acquire non.hydro renewable energy.
The Demand Management Program described above would also contribute
significantly to a meaningful diversification of Idaho Power Company
energy portfolio.
Further, we believe that Idaho Power needs to invest in renewable energy
within Idaho.
As'a regulated monopoly, Idaho Power Company has an obligation to
considetwhat is in the best interest of its customers. Idaho Power
busirtes~ as usual approach is not in the best interest of its customers.
Idaho Power Company can do a lot to reduce the adverse impact of its
propose4rate increase. It can also reduce future price increases by
irnplem~nting a progressive, aggressive Demand Management Plan and
diversifying its energy portfolio. The Commission should require Idaho
Power to do so.
Thank you tor considering our comments.
:x.t~lL
Idaho. Rural Council
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~~D~ERS OF PR!!~'A
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4600 N. 600 E.
BUHL IDAHO 83316
Res 208-543-2543 Mobile [phone]
FAX [phone]
Mail hQymQn~mQqiclink.com
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83720
April 5, 2004
Attention: Paul Kjellander, President, & Commissioners Marsha Smith & Dennis Hansen
RE: Idaho Power rate increase Case # IPC-E-O3-
Commissioners:
We are adamantly opposed to the rate increases reQuested by Idaho Power for the followin2
reasons.
1- Agriculture is being discriminated against as a rate payer in shouldering the largest portion of
rate increase IPC is requesting. Power usage by agriculture is flat, compared to the increase
usage by industry (Micron & others) and new home & commercial construction.
IPC says they need a rate hike to cover increased infi-astructure costs. None of these increased cost
are attributed to agriculture. WhY,must we pay the largest share?
2- Our cost to operate, (fuel, insurance, POWER, fertilizer, chemical etc.) is on the constant
increase and we are unable to pass on those increase costs for our fann products. Crop prices
have been flat for several years.
3- IPC has shown no restraints in their spending. They have learned that PUC will give them all
money they need to pay exorbitant salaries and cover their luxury expenses. I do commend PUC
for uncovering some of the luxury expenses and denying them. How much more have they hidden?
4- Our electrical cost have DOUBLED in the past 5 years, even though we have installed every
power and water saving device available. Our water usage has gone down and power cost have
continued to climb. In 1998 our power cost was $215,000. In 2003 it had risen to $407 000. We
still fann the same amount of acres.
We Cannot afford any more increases
Idaho loses lar2:est business,will be the headline when agriculture can no longer operate in Idaho.
When cash flow is tight and income is down, businesses cut cost in order to compete. Look at
Micron. Appleton took no salary when things were tough. HOWEVER, Idaho Powers too
executives continue to take salaries and bonuses in excess 0(2 MILLION dollars a year
knowing they will be able to pass it on the rate payers....especially agriculture.
Owner
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