20041129Revision of Irrigation Deposit Requirements.pdf

IDAHO
POWER
IDAHO POWER COM~~i C E. \ \1
O, BOX 70 . .. ,1 C fj
BOISE, IDAHO 83707 "
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JEANNETTE C. BOWMAN
Senior Analyst
Pricing and Regulatory Services ..I T \l..'t'\ E S" r: D
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[phone]
FAX [phone]
November 24 , 2004
Ms. Beverly Barker
Idaho Public Utilities Commission
O. Box 83720
Boise iD 83720-0074
RE:Case No. I PC-04-
Revision of Irrigation Deposit Requirements
Dear Ms. Barker:
In the Idaho Public Utilities Commission Order No. 29639, it instructs Idaho
Power Company to provide at least 30-days notice to those irrigation customers with current
outstanding balances in excess of $1 000 prior to implementing the new Tier 2 deposit
requirement upon them (no later than December 1 2004). Attached is the template of the letter
Idaho Power Company sent today to 123 Idaho irrigation customers who currently have
outstanding balances of over $1 000 and are, therefore, at risk of being required to make a Tier
2 irrigation deposit in 2005.
If you have any further questions, please feel free to contact me at 388-2718 or
jbowman
(g)
idahopower.com.
Sincerely,
~eannette Bowman
Attachment
Ric Gale.
Maggie '8ril~
P &RS/LegaIFiles
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IDAHO
POWER
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An IDACORP Company
((Farm))
((Address 1))
((Address 2))
((City_State))
November 24 , 2004
Dear ((Name)):
Idaho Power Company has made changes to its deposit requirements for
its Idaho irrigation customers. Certain customers will now be required to make a
deposit in one of two categories , depending on their payment and credit history.
In the "Tier 1" category, a deposit will be required from customers who have
received two or more reminder notices for past due payments over $100. In the
new "Tier 2" category, a larger deposit will be required from customers who have
an outstanding past due balance greater than $1,000 as of December 31.
Our records indicate the past due balance on your most current Idaho
Power bill is greater than $1 000. You may avoid the requirement to pay a Tier 2
deposit by paying this balance prior to December 31. Tier 2 deposits are
computed using the following formula:
(a) The Monthly Billing Demand is determined by multiplying 80
percent times the connected horsepower for your pumps.
(b) The Monthly Energy (billing kWh) is determined by
multiplying 50 percent times 720 hours times the Monthly Billing Demand.
(c) The Monthly Billing Demand and the Monthly Energy are
multiplied by the current rates and added to the Irrigation In-Season
Service Charge to determine the estimated monthly bill.
(d) The estimated monthly bill is multiplied by a factor of four (4)
to determine your required deposit amount.
Your monthly bill will be deducted from your Tier 2 deposit balance, which
includes accrued interest, until the balance is depleted. Once the deposit
balance is depleted , all subsequent billings will be due and payable each month.
Any deposit balance remaining at the time your September billing is prepared or
you request service be disconnected , whichever is earlier, will be applied to your
account at that time.
Page 2 11/24/2004
If your past due balance is below $1 000 on December 31 , you may still
be required to pay a Tier 1 deposit if you received two or more reminder notices
for past due payments over $100. Tier 1 deposits are computed on the same
basis as the Tier 2 deposit outlined above except the estimated monthly bill is
only multiplied by a factor of one and one-half (1.5). For Tier 1 deposits , the
deposit plus accrued interest is only applied to your account at the time your
September billing is prepared or you request service be disconnected , whichever
is earlier.
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A deposit may be paid directly or an irrevocable letter of credit may be
provided in the amount of the deposit from a financia~stitutjon acceptable to
Idaho Power.
Regardless of whether you are required to pay a Tier 1 or a Tier 2 deposit,
the deposit plus all outstanding past due balances must be paid in full in order to
receive electrical service for the upcoming irrigation year.
If you need to request your current balance or have any other questions,
please contact the Customer Service Center at 388-2323 from within the
Treasure Valley, or 1-800-488-6151 from all other areas. . Please say "irrigation
when prompted on the phone menu.
Sincerely,
IDAHO POWER COMPANY