20050711IIPA application intervenor funding.pdf

Randall C. Budge, ISB No. 1949
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
Telephone: [phone]
Fax: [phone]
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Attorneys for Intervenor
Idaho Irrigation Pumpers Association, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
CONCERNING ISSUES RELATED TO IDAHO
POWER COMPANY'S COST OF SERVICE STUDY. CASE NO. IPC-O4-
APPLICA TION FOR INTERVENOR FUNDING OF
THE IDAHO IRRIGATION PUMPERS ASSOCIA TION~ INC.
COMES NOW the Idaho Irrigation Pumpers Association, Inc. ("Irrigators ), by and through
counsel of record, Randall C. Budge, and hereby respectfully makes application to the Idaho Public
Utilities Commission ("Commission ) for intervenor funding pursuant to Idaho Code ~ 61-61 7 A and
IDAPA 31.01.01.161 through .165 as follows:
(A)A summary of the expenses that the Irrigators request to recover broken down into
legal fees, consultant fees and other costs and expenses is set forth in Exhibit "A" attached hereto
and incorporated by reference. Itemized statements are also included as Attachments 1 and 2 to
Exhibit "A" in support of said summary and are incorporated by reference.
(B)The Irrigators' counsel , Randall C. Budge, and Consultant, Anthony J. Yankel, P.
fully participated in this proceeding and made presentations at the three workshops, November 3
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INe. - 1
2004, December 14, 2004, and February 25 2005. Also, the Irrigators provided input on the Parties
Final Report filed with the Commission.The details of the Irrigators' proposals and
recommendations to the Workshops are discussed generally in the Final Report and are set forth
detail in three Power Point presentations set forth in the enclosed CD, which are incorporated by
reference.
(C)The expenses and costs incurred by the Irrigators set forth in Exhibit A and
accompanying attachments are reasonable in amount and were necessarily incurred in reviewing and
evaluating the data from the Company s past filings and supporting data, review of historic
accounting and usage data from FERC Form 1 's dating back over 23 years, evaluating the impact
of temperature and demand normalization on cost-of-service results, reviewing treatment of load
research data as the data is gathered and normalized for all classes, work with the Staff and the
Company to develop reasonable proposals regarding data handling in the future, preparing
presentations to be deleivered at various workshops, and participating in all workshop proceedings
in addition to normal client communications regarding the same.
(D)The costs described in (A) above constitute a financial hardship for the Irrigators.
The Irrigators currently have $12 392.00 in the bank. Accounts payable for legal and consultant
fees in this case total $29, 499.89 as set out in Exhibit ", none of which have been paid. The
Irrigators have $4 819.93 in other accounts payable
The Irrigators are an Idaho nonprofit corporation qualified under I.R.C. ~ 501(c)(5)
representing farm interests in electric utility rate matters affecting farmers in southern and central
Idaho. The Irrigators rely solely upon dues and contributions voluntarily paid by members, together
with intervenor funding to support activities and participate in rate cases. Each year a mailing is sent
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INe. - 2
to approximately 7500 Idaho Irrigators (approximately two-thirds in the Idaho Power Company
service area and one-third in the Utah Power Company service area), soliciting annual dues. The
Irrigators recommend members make a voluntary contributions based on acres irrigated or
horsepower per pump. Member contributions have been falling which are believed to be attributable
to the depressed agricultural economy and increased operating costs and threats, particularly those
relating to water right protection issues. From member contributions the Irrigators must pay all
expenses, which generally include mailing expenses, meeting expenses and shared office space in
Boise, Idaho, in addition to the expenses relating to participation in rate cases. The Executive
Director, Lynn Tominaga, is the only part-time paid employee, receiving a retainer plus expenses
for office space, office equipment, and secretarial services. Officers and directors are elected
annually and serve without compensation.
It has been and continues to be a financial hardship for the Irrigators to fully participate in
all rate matters affecting its members. As a result of financial constraints, participation in past rate
cases and in this case has been selective and, primarily, on a limited basis.
(E)The benefit to all ratepayers and irrigation customers resulting from participation in
a Workshop such as this is not as easy to evaluate as in a rate case setting where testimony is filed
and the Commission renders a decision. However, the Irrigators took a lead role in establishing
positions in all but one of the issues raised at the Workshop and thus differed materially from the
positions taken by the Commission Staff. For example, the Irrigators extensively analyzed the Load
Research data, billing cycle data, and methodologies used by the Company to normalize that data
for purposes of its cost of service study. The Irrigators were the only party to develop and present
extensive information regarding growth rates and costs over the past 23 years. For the most part
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INC. - 3
Staff and other parties were not critical of the data or methodologies presented by the Irrigators, but
generally seemed to feel that the information presented added to all participants' understanding of
many issues regarding the data that goes into cost -of-service studies.
(F)The Irrigators ' participation addressed issues of concern to the general body of users
or consumers on Idaho Power s system. For example, the Irrigators brought forth the need to
normalize demand data used for cost of service purposes. This impacts all customer classes and
makes for a more uniform! consistent result. Demand normalization will not benefit one class versus
another, but simply provide better, more consistent data for all customer classes. A proposal was
put forth on demand normalization that was accepted by all parties. In a similar manner, the
Irrigators proposed that the Company s billing cycle data be adjusted by a formula that recognized
the temperature sensitive nature of certain of the Company s loads. This recommendation was
accepted by all parties and impacts all customer classes, but does not do so in a manner that favors
one customer class over another - it simply results in better overall data.
The growth issue is also one that impacts all classes. There is no question that the rapid
growth in the Idaho Power service area has been driving the costs of service higher for all classes.
The Irrigators presented data that demonstrated that this growth has been very uneven between
classes over the last 23 years with Residential increasing 50%, Schedule 9 increasing 100% and
Irrigation remaining flat. The Irrigators also demonstrated that the growth in plant has been uneven
over this timeframe with Generation going up 75%, Transmission going up 110010, and Distribution
plant actually tripling. In absolute dollars Distribution plant has increased more than Generation.
The only consensus that could be reached on this data is that the present cost -of-service methodolo gy
is inadequate to capture this diversity of growth between customer classes.
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INC. - 4
(G)The Irrigators represent the irrigation class of customers under Schedule 24.
Based on the foregoing, it is respectfully submitted that the Irrigators are a qualifying
intervenor and should be entitled to an award of costs of intervention in the amount of $29,499.
pursuant to Idaho Code ~ 61-617A and IDAP A 31.01.01.161 through .165.
Jell'f
DATED this day of ~t!, 2005.
RACINE, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
RANDALL C. BUDGE
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INe. - 5
EXHIBIT A
SUMMARY OF EXPENSES INCURRED BY IRRIGATORS
IN CASE NO. IPC-O3-
Legal Fees:
Randall C. Budge:22.60 hours at $175 =$ 3 955.
Costs:
Long distance phone:50.
Travel:175.
Total Work and Costs:$ 4 181.04
Consultant Anthony J. Yankel
192 hours at $125 per hour $24 000.
Expenses:
Travel, room and meals 1.318.
Total Work and Costs:$25 318.
TOT AL FEES AND EXPENSES:$29 499.
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INC. - 6
Attachment 1 :Legal Fees and Costs (Randall C.Budge)
Date: 06/21/2005 Detail Fee Transaction File List Page: 1
RACINE, OLSON, NYE, BUDGE AND BAILEY CHARTERED
Trans Hours
Client Date Atty P Ted Rate to Bill Amount Ref #
Client ID 710.1518525 IDAHO IRRIGATION PUMPERS ASSOCIATION, INC.
710.1518525 11/02/2004 RCB A 131 175,700.00 TRAVEL TO BOISE; TELEPHONE CONFERENCE WITH T.ARCH
YANKEL AND PREPARE PUC WORKSHOP ON IPCO
COST OF SERVICE ISSUES
710.1518525 11/03/2004 RCB A 175.612.50 ATTEND IPUC WORKSHOP ON IPCO COST OF SERVICE ARCH
ISSUES
710.1518525 11/24/2004 RCB A 175.87.50 REVIEW AND EVALUATE IIPA PROPOSAL TO PARTIES ARCH
RE: WORKSHOP ON COST OF SERVICE FOR IPCO
IRRIGATION CLASS; TELEPHONE CONFERENCE WITH
T. YANKEL RE: SAME
710.1518525 11/29/2004 RCB A 175.52.50 TELEPHONE CONFERENCE WITH T. YANKEL RE: COST ARCH
OF SERVICE PROPOSAL TO PARTIES
710.1518525 12/14/2004 RCB A 175.1225.00 MEETING WITH T. YANKEL, L. TOMINAGA RE: IPCO ARCH
COST OF SERVICE WORKSHOP ISSUES AND
PREPARATION; ATTEND PUC WORKSHOP RE: IPCO
COST OF SERVICE ISSUES; 1/2 TRAVEL
710.1518525 02/18/2005 RCB A 175.87.50 REVIEW T. YANKEL PROPOSED PRESENTATION TO ARCH
IPCO WORKSHOP; TELEPHONE CONFERENCE WITH T.
YANKEL, L. TOMINAGA RE: SAME
710.1518525 02/23/2005 RCB A 175.52.50 TELEPHONE CONFERENCE WITH T. YANKEL RE:ARCH
PREPARATION FOR IPCO WORKSHOP 2.
710.1518525 02/24/2005 RCB A 175.105,00 REVIEW IIPA PROPOSED COST OF SERVICE POWER ARCH
POINT PRESENTATION; TELEPHONE CONFERENCE
WITH IPCO AND T. YANKEL RE: PRESENTATION
WORKSHOP AND PREPARATION AND STRATEGY
710.1518525 02/25/2005 RCB A 175.4.40 770,00 ATTEND IPCO COS WORKSHOP (VIA CONFERENCE ARCH
CALL) RE: IPCO COST OF SERVICE; FOLLOWUP
TELEPHONE CONFERENCE WITH T. YANKEL RE:
GOING FORWARD STRATEGY AND REPORT TO
COMMISSION ON WORKSHOP RESULTS; LETTER TO
IIPA BOARD- REPORT ON COS WORKSHOP
CONCLUSIONS
710.1518525 02/28/2005 RCB A 175.52.50 TELEPHONE CONFERENCE WITH T. YANKEL AND L.ARCH
TOMINAGA RE: FOLLOWUP ON WORKSHOP
CONCLUSION AND LETTER TO BOARD AND PROPOSED
STAFF REPORT
710.1518525 05/10/2005 RCB U 175.1.20 210.00 RECEIVE AND REVIEW FROM STAFF (D. SCHUNKE)
PROPOSED DRAFT FINAL REPORT ON IPCO COS
WORKSHOPS; TELEPHONE CONFERENCE WITH T.
YANKEL, D. SCHUNKE RE: IRRIGATORS COMMENTS
AND PROPOSED REVISIONS; PREPARE IRRIGATORS
RED-LINED PROPOSED CHANGES TO DRAFT REPORT;
~q'55 LETTER TO D. SCHUNKE WITH IRRIGATORS
COMMENTS
710.1518525 05/31/2005 RCB U 175,1328.04 TRANSFER CREDIT BALANCE FROM 710.15185
GRAND TOTALS .'
Billable 22.2626.
ASS TuesdayO6l21/2005 1:24pm
Date: 06/21/2005
Client
Trans
Date Ally P
Detail Cost Transaction File List
RACINE, OLSON, NYE, BUDGE AND BAILEY CHARTERED
Tcd AmountRate
Client ID 710.1518525 IDAHO IRRIGATION PUMPERS ASSOCIATION,INC.
710.1518525 11/08/2004 RCB A 129 175.50 RTMILEAGEPOCATELLO-BOISE
710.1518525 02/28/2005 RCB A 128 50.54 LONG DISTANCE TELEPHONE EXPENSE
Page: 1
Ref #
ARCH
ARCH
Billable
GRANffiTOTALS .
226.
ASS TuesdayO6l21/2005 1:24pm
July 28
Nov.
Dec.
Jan
Date
Feb.
!-.
::s
Attachment Consultant Fees and Costs (T. Yankel)
Descri tion
Look up how workshops were conducted in Utah and formulate
recommendations for the IPCo case.
Prepare for and attend workshop meeting over phone; phone calls with
Budge before and after.
Review problems with normalization procedures and develop presentation
regarding same.
Review problems with normalization procedures and load research data:
develop presentation regarding same.
Develop and draft presentation regarding billing vs. calendar data as well
as how growth impacts Irrigators.
Develop and draft presentation regarding how growth impacts Irrigators.
Develop and draft presentation regarding how growth impacts Irrigators.
Finalize presentation for taskforce and send it to Staff for distribution.
Review presentation to be made on Tuesday regarding Cost-of-Service
and prepare to make presentation.
Travel to Boise and review of presentation for Cost of Service Task
Prepare for and attend meeting at the Commission regarding cost-of-
service task force.
Travel back to Cleveland and review what needs to be done for future cost
of-service workshop meetings.
Review various procedures for allocating growth.
T est different procedures for normalizing demand.
Review rates of growth by class and by FERC account.
Review rates of growth by class and by FERC account.
Work through various methods of allocating growth.
Work through various methods of allocating growth.
Develop data regarding changes in ratebase by FERC account for the last
20 plus years as well as usage by rate schedule.
Date
Mar 1 0
Apr
::r:Description
Work through various methods of allocating growth with respect to the
Distribution system.
Rework model to incorporate the usage of additional allocation factors for
Distribution plant-in-service; develop cost of service runs for various
scenarios of allocation factors.
Rework model to incorporate the usage of additional allocation factors for
Distribution plant-in-service; develop cost of service runs for various
scenarios of allocation factors.
Rework model to incorporate the usage of additional allocation factors for
Distribution plant-in-service; develop cost of service runs for various
scenarios of allocation factors.
Develop PowerPoint presentation regarding growth issues.
Review additional FERC Form 1 data; flllalize information and develop
final format for PowerPoint presentation.
Finalize presentation; make corrections suggested by Idaho Power;
converse with others regarding what was being presented.
Travel to Boise and prepare for workshop.
Prepare for and attend workshop.
Return home and review material from workshop.
Develop distribution data by using data responses in case to separate out
distribution plant by summer and winter use.
Develop distribution data by using data responses in case to separate out
distribution plant by summer and winter use.
Conversations with Idaho Power regarding finding agreement associated
with demand normalization; review data and techniques; write proposed
language to go into task force report.
Review and comment on draft workshop report associated with growth.
192
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this day of 2005 , I mailed a true
and complete copy of the foregoing document, postage prepaid, to each of the following:
Jean M. Jewell, Secretary
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
Barton L. Kline
MonicaB. Moen
Idaho Power Company
O. Box 70
Boise, Idaho 83707-0070
E-mail: bkline(fYidahopower.com
mmoen(fYidaho power.com
John R. Gale
VP - Regulatory Affairs
Idaho Power Company
O. Box 70
Boise, Idaho 83707-0070
E-mail: rgale~idahopower.com
Lisa Nordstrom
Weldon Stutzman
Deputy Attorney Generals
Idaho Public Utilities Commission
472 W. Washington (83702)
O. Box 83720
Boise, Idaho 83720-0074
E-mail: lnordst(fYpuc.state.id.
wstutzm(fYpuc. state. id. us
Peter J. Richardson, Esq.
Ri chardson & 0' Leary
99 E. State St., Suite 200
O. Box 1849
Eagle, Idaho 83616
E-mail: peter~ri chardsonando eary . com
Conley E. Ward
Givens Pursley LLP
601 W. Bannock St.
O. Box 2720
Boise, ID 83701-2720
E-mail: cew(fYgivenspursley.com
RANDALL C. BUDGE
APPLICATION FOR INTERVENOR FUNDING OF IDAHO IRRIGATION PUMPERS ASSOCIATION, INe. - 7