20041008Notice of Application Order No 29609.pdf

Office of the Secretary
Service Date
October 8, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
UTH 0 RITY TO REVISE DEPOSIT
REQUIREMENTS IN SCHEDULES 24 AND
25 FOR ELECTRIC SERVICE TO
IRRIGATION CUSTOMERS
CASE NO. IPC-04-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29609
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on September 17 , 2004, Idaho Power
Company filed an Application requesting authority to revise the deposit requirements under
Schedules 24 and 25 for electric service to irrigation customers. In the Application Idaho Power
requests an effective date of October 18, 2004, and that its Application be processed under
Modified Procedure. The Company states that letters were sent to its current irrigation
customers to advise them of the Application s filing with the Commission.
YOU ARE FURTHER NOTIFIED that, according to the Application, Idaho Power
indicates that it has experienced an increase in unpaid irrigation bills (accounts receivable) and a
corresponding increase in bad debt (net write-offs). At the same time, the number of service
locations has been increasing while the number of persons responsible for those service locations
has been decreasing. The Company states that consolidation of accounts into the hands of fewer
customers raises the level of risk to which it is exposed.
YOU ARE FURTHER NOTIFIED that in order to minimize its exposure to
uncollectables, Idaho Power proposes to revise its deposit policy for irrigation customers by
collecting a higher deposit from those customers who pose a higher credit risk. Customers asked
to pay a deposit will continue to have the option of providing an irrevocable Letter of Credit
from a financial institution. If approved, a customer who owes an outstanding balance of over
000 on December 31 will be required to pay a "Tier 2" deposit based upon a formula that in
essence collects the customer s bill for the next irrigation season in advance. A customer who
has been discharged from bankruptcy or who has had receivership proceedings terminated will
also be required to pay a Tier 2 deposit. The Tier 2 deposit will be applied to each monthly bill
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29609
as it becomes due throughout the season. A customer who owes less than $1 000 on December
31 but who has received two or more reminder notices of $100 or more during a 12-month
period or customers whose service is disconnected during the out-of-season period due to non-
payment (i., customers who meet the current criteria for requiring a deposit) will be required to
pay a "Tier 1" deposit. The deposit criteria and formula currently in use for calculating deposit
amounts would be applied to calculate Tier 1 deposits. A customer required to pay a Tier 2
deposit one year will be required to pay a Tier 1 deposit the following year.
YOU ARE FURTHER NOTIFIED that the Application filed in this case may be
viewed online at www.puc.state.id.by clicking on "File Room" and "Electric Cases " or it can
be viewed during regular business hours at the offices of the Idaho Public Utilities Commission
472 West Washington Street, Boise, Idaho.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the
Application in this case. The Commission has preliminarily determined that the public interest
may not require a hearing to consider the issues presented in this case and that issues raised by
the Company s filing may be processed under Modified Procedure , by written submission
rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission notes that
Modified Procedure and written comment have proven to be an effective means for obtaining
public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAPA 01.01.01.204.
NOTICE OF COMMENT/PROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to the Application and the Commission s use of Modified Procedure in
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29609
Case No. IPC-04-20 is 21 days from the service date of this Order. Persons desiring a
hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. IPC-
04-20 should be mailed to the Commission and to Idaho Power Company at the addresses
reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Monica B. Moen
Maggie Brilz
Idaho Power Company
PO Box 70
Boise, ID 83707
Street Address for Express Mail:
1221 W. Idaho Street
Boise, ID 83702
E-mail: minoen~idahopower.com
nlbrilz~idahopower.com
document.
These comments should contain the case caption and case number shown on the first page of this
Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the address listed above.
DISCUSSION
Idaho Power Company is operating or managing electric plant for compensation
within the state of Idaho, and is a public utility as defined by Idaho Law. Idaho Code ~~ 61-104
61-118 , 61-119, 61-129.
Idaho Power has submitted a proposed reVISIon In the deposit requirements
applicable to irrigation customers to become effective on and after October 18, 2004. We find
the Application requires the Commission s investigation into the reasonableness of the proposed
revisions. The Commission is unable to consider the proposed revisions before October 18
2004, and therefore finds it reasonable to suspend those revisions for a period of 60 days. This
will provide time for interested persons to review the Company s proposed revisions and submit
comments.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29609
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application for Authority to Revise Deposit Requirements for Electric Service to Irrigation
Customers, and the issues involved in this case by virtue of Title 61 , Idaho Code and the
Commission s Rules of Procedure, ID AP A 31.01.01.000 et seq.
The Commission has the authority under Idaho Code ~ 61-622 to suspend the
proposed revisions that are the subject of the Application.
It is necessary to suspend the rates proposed in the Application for a period of 60
days, or less if the Commission acts sooner, from the effective date of October 18, 2004, to
receive customer and Staff comments, to provide sufficient time to calendar further procedure if
required, and to consider and determine the issues presented in this Application.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure must do so no later than 21 days from the service date of this Order.
IT IS FURTHER ORDERED that the proposed revisions of deposit requirements in
schedules 24 and 25 for electric service to irrigation customers in Case No. IPC-04-20 should
, and hereby are, suspended for a period of 60 days from October 18 , 2004, or until such
earlier time as the Commission may issue an Order accepting, rej ecting, or modifying the
Application in this case. No change in the existing deposit requirements is permitted without
prior Commission approval.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29609
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
gf'l-
day of October 2004.
6WL LJ cD-(A
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:IPCE0420 dw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29609