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Home My WebLink About20040331Kroger Position Summary.pdf.ifCCI \"1';:1L:~~ ?rnl 1" ~lUU'i ;,If;!'; 31 Mi 9: 44 . ' JTILfTir::' )'.J !(~(' ,",IJ,)..J Uj, STATE OF IDAHO BEFORE THE PUBLIC UTILITIES COMMISSION IN THE MATTER OF APPLICATION IDAHO POWER COMPANY FOR AUTHORITY TO INCREASE ITS INTERIM AND BASE RATES AND CHARGES FOR ELECTRIC SERVICE : CASE NO. IPC-O3- SUMMARY OF POSITION OF THE KROGER CO. Now comes Kroger Co. ("Kroger ), and pursuant to Rule 105 of the Utility Information Customer Rules provides a summary of its recommendations and testimony in the above-captioned matter. Kroger has made the following determinations concerning Idaho Power Company s (the Company Application For Authority to Increase its Rates. With respect to rate spread, Idaho Power proposes a significant subsidy to the Irrigation class. According to the Company s cost-of-service analysis, it would require a 67 percent increase in Irrigation base rates for this class to fully recover its costs if the Company s requested overall base-rate increase of 18 percent is approved. To mitigate the impact of the base-rate increase for this class, the Company proposes to cap the Irrigation increase at 25 percent, with the difference spread to the other rate classes. Kroger agrees that mitigating the impact of a large rate increase for this class is reasonable, but proposes some modifications to the Company s proposal that: (1) would apply in the event the Company s proposed rate increase is reduced by the Commission, and (2) provide for an additional phase-in toward cost-of-service rates in subsequent years. With respect to rate design, Kroger generally agree with Idaho Power s approach to weighting any rate increases relatively more heavily on the demand charge, as opposed to the energy charge, for those rate schedules with demand meters. This approach reflects the composition of the Company s underlying costs, and thus is consistent with cost causation. Idaho Power proposes to make time-of-use rates mandatory for Schedule 19 in order to send improved price signals. The Company also has an optional time-of-use rate for Irrigation service that is in place on a pilot basis. Yet there are no time-of-use options available for Schedule 9, which consumes 26 percent of the retail energy on the Company s system. Kroger recommends adopting a voluntary time-of-use option for Schedule 9 that offers peak, mid-peak, and off-peak energy prices that properly reflect tirne-of-use cost differences. At a minimum, such a rate should be made available to Schedule 9 customers on a pilot project basis. With respect to all other issues raised by the Company or other intervenors, Kroger neither supports nor opposes them. Respectfully submitted David F. Boehm, Esq. Michael L. Kurtz, Esq. BOEHM, KURTZ & LOWRY 36 East Seventh Street, Suite 2110 Cincinnati, Ohio 45202 Ph: (513)421-2255 Fax: (513)421-2764 Mail: dboehmlaw0!aol.com COUNSEL FOR THE KROGER CO. March 29, 2004 BOEHM, KURTZ & LOWRY ATTORNEYS AT LAW ;,:ECEiVEO36 EAST SEVENTH STREET- i' :-: . SUITE 2110 ' . . CINCINNATI, OHIO 45202 TELEPHONE (513) 421-225fOlPj It;;': 3 I CLl n. '"' lii'l ). TELECOPIER (513) 421-2764 iiiSSIOi4 VIA OVERNIGHT MAIL March 29, 2004 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 In re: Case No. IPC-03- Dear Ms. Jewell: Please find enclosed the original and nine (9) copies of the Summary of Position of The Kroger Co. dba Fred Meyer and Smith's filed in the above-referenced matter. Copies have been served on all parties on the attached certificate of service. Please place this document of file. David F. Boehm, Esq. BOEHM, KURTZ & LOWRY MLKkew EneL CERTIFICATE OF SERVICE I hereby certify that true copy of the foregoing was served by electronic mail, unless otherwise noted, this 29th day of March, 2004 to the following: Barton L. Kline Monica B. Moen Idaho Power Company O. Box 70 Boise, ID 83707-0070 Peter 1. Richardson, Esq. Richardson & 0 'Leary 99 E. State St., Suite 200 O. Box 1849 Eagle, ID 83616 Don Reading Ben Johnson Associates 6070 Hill Road Boise, ID 83703 Lisa Nordstrom Weldon Stutzman Deputy Attorney Generals Idaho Public Utilities Commission 472 W. Washington, P.O. Box 83720 Boise, ID 83720-0074 Randall C. Budge Eric L. Olsen Racine, Olson Nye, Budge Baily, Chartered 201 E. Center, P.O. Box 1391 Pocatello, ID 83204-1391 John R. Gale VP-Regulatory Affairs Idaho Power Company O. Box 70 Boise, ID 83707-0070 Anthony Yankel 29814 Lake Road Bay Village, OH 44140 Lawrence A. Gollomp Assistant Attorney General United State Department of Energy 1000 Independence Ave., SW Washington, DC 20585 Dennis Goins Potomac Management Group 5801 Westchester St. Alexandria, VA 22310-1149 Dean 1. Miller McDevitt & Miller LLP O. Box 2564 Boise, ID 83701 Jeremiah 1. Healy United Water Idaho, Inc. O. Box 1290420 Boise, ID 83719-0420 William M. Eddie Advocates for the West O. Box 1612 Boise, ID 83701 Nancy Hirsh N W energy Coalition 219 First Ave., South Suite 100 Seattle, WA 98104 Conley E. Ward Givens Pursley LLP 601 W. Bannock Street O. Box 2720 Boise, ID 83701-2720 Dennis E. Peseau, Ph. Utility Resources, Inc. 1500 Liberty Street S., Suite 250 Salem, OR 97302 Thomas M. Power Economics Department, LA 407 University of Montana 32 Campus Drive M' sou1a , MT 59812 Brad M. Purdy Attorney at Law 2019N.17th Street Boise, ID 83702 Michael Karp 147 Appaloosa Lane Bellingham, W A 98229 David F. Boehm, Esq.