20050225Notice of Application Order No 29717.pdf

Office of the Secretary
Service Date
February 25 , 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INSTITUTE TIME-
VARIANT PRICING PILOT PROGRAMS
FOR CUSTOMERS PARTICIPATING IN
THE AMR PHASE I IMPLEMENTATION
PROJECT
CASE NO. IPC-O5-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29717
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on February 2, 2005, Idaho Power Company
filed an Application seeking authority to institute time-variant pricing programs for customers
participating in the Advanced Meter Reading (AMR) Phase I Implementation project. The
Company requests that its Application be processed by Modified Procedure. In its Application
the Company requests that the proposed Schedule 4 and Schedule 5 be approved effective March
, 2005 and remain effective until April 1 , 2006. However, the Company subsequently agreed
and consented to an extension of the March 4, 2005 effective date.
YOU ARE FURTHER NOTIFIED that Idaho Power proposes two pilot programs for
customers currently participating in the AMR Phase I Implementation project in the vicinity
the cities of Emmett and Letha, Idaho (Emmett Valley). The two proposed programs are: (1)
Energy Watch Pilot Program, proposed Schedule 4; and (2) Time-of-Day Pilot Program
proposed Schedule 5. The Company proposes that both programs be offered to customers on an
optional, voluntary basis.
YOU ARE FURTHER NOTIFIED that the Application states that, consistent with its
prior commitment to investigate and file with the Commission time-of-use pricing programs that
utilize the capability of the AMR technology, the Company has designed two new residential
pricing programs that utilize the hourly energy consumption data made possible by the AMR
implementation. The goal of the pilot programs is to provide information to evaluate the impacts
and benefits of time-variant pricing to residential customers. Customers participating in the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29717
voluntary programs may experience reduced electric bills, while the Company may experience
reduced power cost expenses by providing energy to customers during less expensive time
periods. The Application also states that the programs will enable the Company to measure
customer interest in and satisfaction with the programs, as well as implement and test electronic
data transfer, billing, and metering systems that are necessary to successfully offer programs
which rely on hourly meter readings.
YOU ARE FURTHER NOTIFIED that the Company proposes that cumulative
enrollment in the two programs be limited to 300 metered service points, consisting of
approximately 150 customers for each pilot program. Service under the two pilot programs
would be available starting June 1 , 2005, and continue through April 1 , 2006. The Application
also proposes that interested customers be required to notify the Company of their desire to
participate by May 15 , 2005, and that selection for the programs be on a first-come, first-served
basis. Under both programs the energy rates for non-summer months would be the same as those
customers on Schedule 1 service, while the summer rates would differ for those in the pilot
programs.
Energy Watch Pilot Program - Proposed Schedule 4
YOU ARE FURTHER NOTIFIED that under this program customers would pay a
substantially increased flat rate for energy consumption during a designated Energy Watch
Period. Energy Watch Periods will be determined by the Company. Program participants will
be notified of the declared Energy Watch Period by 4:00 p.m. the day ahead by telephone and
where available, bye-mail. Energy Watch Periods can occur on any weekday from June 15
through August 15, and will be for the hours of 5:00 p.m. to 9:00 p.m. The Company proposes
that the Energy Watch Periods will occur on no more than 10 days from June 15 to August 15
for a total of 40 hours.
YOU ARE FURTHER NOTIFIED that current rates under Schedule 1 for residential
customers are 5.0863 cents/kWh for the first 300 kWh and 5.7253 cents/kWh for all kWh over
300 kWh during the summer. The non-summer rate for Schedule 1 is 5.0863 cents/kWh for all
kWh. Under the Energy Watch Pilot Program the proposed base energy rate for all hours other
than the Energy Watch Periods is 5.0863 cents/kWh. During Energy Watch Periods the
proposed base energy rate is 20 cents/kWh. The over-300 kWh pricing block will be eliminated.
NOTICE OF APPLICATION
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ORDER NO. 29717
Customers participating in the Energy Watch Pilot Program would continue to pay the monthly
service charge of $3.30.
Time-Of-Day Pilot Program Proposed Schedule 5
YOU ARE FURTHER NOTIFIED that under this program customers would be
given the opportunity to reduce their electric bills by shifting their summer usage, based upon
three different price categories, from "on-peak" periods, when the cost to provide energy is
highest, to the "off-peak" periods, when the cost to provide energy is the lowest. During the
non-summer season, the pricing would be the same as that under Schedule
YOU ARE FURTHER NOTIFIED that the three time-of-day periods for the summer
season are defined and priced as follows:
Time-of-Day Period Definition Energy Rate
On-Peak 1 :00 p.m. to 9:00 p., Monday through Friday 6.4781 ~ per kWh
Mid-Peak 7:00 a.m. to 1 :00 p., Monday through Friday 8090 ~ per kWh
Off-Peak 9:00 p.m. to 7:00 a.m. on all days, and all hours 9725 ~ per kWh
on Saturday, Sunday, and the Fourth of July
The summer and non-summer seasons are defined the same as under Schedule 1 , with the
summer season beginning June 1 and ending August 31. Customers participating in the Time-of-
Day Pilot Program will continue to pay the monthly service charge of $3.30.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
workpapers, testimonies and exhibits, have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices. The Application and
testimonies (excluding exhibits) are also available on the Commission Website at
www.puc.idaho.gov under the "File Room" icon and then "Electric Cases.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. IPC-05-2. 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
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29717
notes that Modified Procedure and written comments 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. IDAP A 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
Case No. IPC-05-is March 11 , 2005. Persons desiring a hearing must specifically request a
hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to Idaho Power at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ill 83720-0074
Street Address For Express Mail:
Maggie Brilz
Pricing Director
Idaho Power Company
PO Box 70
Boise, ill 83707
E-mail: mbrilz~idahopower.com
472 W. Washington Street
Boise, ill 83702-5983
Barton L. Kline
Senior Attorney
Idaho Power Company
PO Box 70
Boise, ill 83707
E-mail: bkline~idahopower.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29717
Commission s homepage located at www.puc.idaho.gov. 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 the Applicant at the addresses listed above.
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Idaho Power Company,
its Application to institute time-variant pricing pilot programs, and the issues involved in this
case by virtue of Title 61 , Idaho Code, specifically Idaho Code ~~ 61-118, 61-119 , 61-129, and
the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
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 comments have proven to be an effective means for obtaining
public input and participation.
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 should do so no later than March 11 , 2005.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29717
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :)t/f1---'
day of February 2005.
Commissioner Kjellander Out of the Office
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
, OMMISSIONER
ATTEST:
~s r/oJ-VWJJ
Assistant Commission Secretary
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29717