20070925Brilz direct.pdf

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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC SERVICE
TO ELECTRIC CUSTOMERS IN THE STATEOF IDAHO.
CASE NO. IPC-E- 07 - 8
IDAHO POWER COMPANY
DIRECT TESTIMONY
MAGGIE BRILZ
Please state your name and business address.
My name is Maggie Brilz.My business address
is 1221 West Idaho Street , Boise, Idaho.
By whom are you employed and in what
capaci ty?
I am employed by Idaho Power Company as
Director of Pricing.
Please describe your educational background.
In May of 1980 I received Bachelor of Arts
Degrees in Economics and Psychology from Smith College in
Northampton , Massachusetts.In 1998 I completed the
University of Idaho s Public Utilities Executive Course in
Moscow , Idaho.I have also attended numerous seminars and
conferences on pricing issues related to the utility
industry and have attended seminars and courses involving
public utility regulation.
Please describe your business experience with
Idaho Power Company.
I started employment with Idaho Power Company
in November of 1984 as a Financial Analyst in the Planning
In 1986 I was promoted to the position of RateDepartment.
Analyst in the Rate Department.My duties as a Rate Analyst
included the development of al ternati ve pricing structures,
the analysis of the impact on customers of rate design
changes, the preparation of cost-of-service studies, and the
BRILZ , DI
Idaho Power Company
administration of the Company I s tariffs.In July of 1993 I
was promoted to Rate Design Supervisor.In that capacity I
also became responsible for the overall rate design
activities of the Rate Department. In October of 1996 I was
promoted to my current position of Director of Pricing in
the pricing and Regulatory Services Department.
What is the scope of your testimony in this
proceeding?
My testimony will address the Company I
allocation of revenue requirement, or rate spread, to
customer classes and the rate design proposals for the
tariff and special contract customers.I will also address
the proposed changes to the Company s General Rules and
Regulations and associated service schedule changes.
Revenue Requirement Allocation
What is the Company s general philosophy on
determining rates?
The Company s primary approach to ratemaking
is to establish rates that reflect costs as accurately as
possible.Accordingly, the Company s ratemaking proposals
usually advocate movement towards cost-of-service results,
which assign costs to those customer classes that cause the
Company to incur the costs.
Are there other objectives that may be
considered in the ratemaking process?
BRILZ , DI
Idaho Power Company
The Commission may consider a number ofYes.
other objectives, such as rate stability, rate shock, and
abili ty to pay, in the determination of rates.
How did you approach the determination of the
revenue requirement for each customer class?
I began by reviewing the resul ts of the
preferred cost-of-service study, the 3CP/12CP study,
performed by Mr. Tatum. Exhibit No. 58 is a four-page
exhibit that steps through the revenue requirement
allocation process from the cost-of-service results to the
Company s ultimate proposal for each customer class and
special contract.Page 1 of Exhibit No. 58 is the proformed
test year sales and revenues.Page 2 indicates the
adjustments in terms of percentages and dollars that would
be made to each customer class to obtain the results
indicated by the 3CP/12CP cost-of-service study.A pure
cost-of-service revenue spread would mean a 36.8 percent
increase to the Irrigation customer class, a 26.7 percent
increase to the Simplot special contract, and just under a
25 percent increase for both the Micron and Department of
Energy special contracts.A pure cost-of-service revenue
spread would also mean increases above 15 percent for the
Small General Service, Large Power Service, and Traffic
Control Lighting Service customer classes, Schedules 7, 19,
and 42 , respectively.Page 3 of Exhibit No. 58 constrains
BRILZ, DI
Idaho Power Company
the changes to the revenue allocation in order to mitigate
the magnitude of the rate increase to these various customer
classes.A 20 percent limit is placed on the increase to
the Irrigation and Special Contract customer classes while a
15 percent limit is placed on the increase to the Small
General Service, Large Power Service, and Traffic Control
Lighting customer classes.In addition , the Dusk-to-Dawn
Customer Lighting Service is held at zero instead of the
decrease indicated by the cost-of-service study.Page 4
spreads the revenue shortfall created by this mitigation
back to the remaining customer classes so that the total
Idaho jurisdictional target revenue can be obtained.
What is your rationale for the 20 percent/15
percent limit for the various customer classes?
The cost-of-service results indicate an
increase greater than 20 percent for four individual
customer classes and an increase greater than 15 percent but
less than 20 percent for three individual customer classes.
Establishing a separate cap for each of these two groups of
customer classes recognizes the differences in costs between
these classes more equitably aligns revenue requirement with
the cost to serve.
Rate Design
What are your overall objectives in arriving
at the proposed rate designs for the Company s various
BRILZ , DI
Idaho Power Company
service schedules?
My first objective is to establish prices
which primarily reflect the costs of the services provided.
As part of the Company s last several general rate cases,
this obj ecti ve has been met by emphasizing increases in the
demand and customer components and the inclusion of fewer
non-energy-related costs in the energy charges. My second
objective is to minimize rate design changes to both the
metered and non-metered service schedules.
Are you emphasizing increases in the demand
and customer components in this case?
Yes I am.However, with the movement made in
the past several rate cases in setting rates closer to
costs, the magnitude of the proposed increases to the demand
components in most cases is less than in previous cases.
all cases, the increases to the demand components are
emphasized during the summer season.
Has more emphasis been placed on the energy
component in your rate design proposal than in past rate
case proceedings?
Yes, particularly for the Large General
Service , Schedule 9 , and Large Power Service, Schedule 19,
This greater emphasis on the energy component iscustomers.
based on the results of the 3CP/12CP cost-of-service study.
Are there any limitations to the increases
BRILZ, DI
Idaho Power Company
the Company can propose to the customer component?
In the Stipulation reached between theYes.
parties to the Company s last general rate case, Case No.
IPC-05-28, the Company agreed not to file for an increase
in the existing $4.00 Service Charge for Schedule 1 and
Schedule 7 until May 12 , 2008 , if the true-up mechanism
proposed in Case No. IPC-04-15 was approved by the
Commission.Since the Commission approved the true-
mechanism on March 12,2007 , through Order No. 30267 , my
rate design proposals in this proceeding for Schedule 1 and
Schedule 7 recommend an increase to only the Energy Charge.
Are you recommending any significant changes
to the rate design for the Company s service schedules?
No.As part of the Company s last two
general rate cases, Case No. IPC-03-13 and Case No. IPC-
05-28, the Commission authorized several major changes to
the Company s rate design , including seasonal rates for all
metered service schedules , tiered summer rates for
Residential and Small General Service customers , mandatory
time-of -use rates for Large Power Service customers, and
two-tiered blocked rates for Large General Service customers
taking secondary service.At this time, I am recommending
that the existing rate structure be maintained for all
service schedules and special contracts.This approach will
provide the Company s customers with rate design stability
BRILZ , DI
Idaho Power Company
and billing continuity.
Are you proposing any changes not directly
related to the Company s rate design?
First, I am proposing a change toYes.
Schedule 89 , Unit Avoided Cost for Cogeneration and Small
Power Production , to comply with previous Commission Orders.
Second , I am proposing a revision to Schedule 61 , Payment
for Home Wiring Audit.
Please describe the proposed change to
Schedule 89.
Based on previous Commission Orders, the
pricing under Schedule 89 is to be adjusted during the
course of every Idaho Power general rate proceeding.Us ing
the methodology previously ordered by the Commission , I have
adjusted the unit-avoided energy cost utilizing updated
variable operation and maintenance costs and variable fuel
costs for the Valmy plant.I have included details of this
adj ustment in my workpapers.
What changes are you proposing for Schedule
61?
When Schedule 61 was first approved by the
Commission in 1992 , the Company was operating a Power
Quality Program.Electricians who took specific courses
could become an "approved" participant in the Company
Customers who had a home wiring audit performed byprogram.
BRILZ , DI
Idaho Power Company
an approved electrician were eligible to receive a Home
Wiring Audit payment.It has now become standard practice
for licensed electricians to be trained to perform home
wiring audits and the Company s Power Quality Program is no
longer needed to encourage this training.However, the
payment provided to customers under Schedule 61 when a home
wiring audit is performed continues to be beneficial.
Changes are being proposed to Schedule 61 to reflect that
the Power Quality Program is no longer available and to
provide clarity on the steps customers can take to receive a
payment for a home wiring audit.In addition , the amount of
the payment to customers for a home wiring audit is proposed
to increase from the $25 established in 1992 to $40 to more
accurately reflect the increase in electrician fees over the
Details of the proposed changes to Schedulepast 15 years.
61 are included on Page 104 of Exhibit No. 61.
Have you prepared or supervised the
preparation of certain exhibits relating to your rate design
testimony?
I supervised the preparation of theYes.
following exhibits relating to rate design:
Exhibi t Description
Exhibit No. 59 Summary of Revenue Impact and Calculation
of Proposed Rates
Exhibit No. 60 Billing Comparisons and Billing Impacts of
BRILZ , DI
Idaho Power Company
Proposed Rates
Exhibit No. 61 Proposed Tariff in Legislative Format
Exhibit No. 62 Proposed IPUC No. 29, Tariff No. 101
Please describe Exhibit No. 59.
Page 1 of Exhibit No. 59 is titled Summary of
Each service schedule and special contractRevenue Impac t
customer is listed with its average number of customers,
normalized energy sales, and test year revenue level.
Column 5 shows the revenue adjustment to each customer
class. Column 6 shows the total revenue to be recovered by
the rate design proposals based on the 2007 test year. Page
1 also lists the mills per kWh and percentage change in
revenue for each customer class and special contract
customer.
Pages 2 through 23 of Exhibit No. 59 indicate
the rate calculations made, by billing component, for each
service schedule and special contract customer.
Please describe Exhibit No. 60.
Exhibi t No.6 0 shows the impact on customers'
bills of the proposed rate designs for Schedules 1 , 4, 5, 7
9, 19, and 24.
Please describe Exhibit No. 61 and Exhibit
No. 62.
Exhibit No. 61 includes the Company s rules,
regulations, and service schedules indicating in legislative
BRILZ , DI
Idaho Power Company
format the changes made to those rules, regulations, and
schedules.Exhibit No. 62 is the proposed Idaho Public
utilities Commission No. 29, Tariff No. 101.Thi s exhibi t
contains all the changes to the Tariff proposed by the
Company in this proceeding.
How have you organized the discussion of your
rate design proposals?
I have divided my discussion of the proposed
rate designs into six sections.The first section includes
the discussion for the proposed rate structures for the
Company I S non-demand metered schedules.The second section
addresses the proposals for demand-metered schedules.The
third section includes the discussion for the proposed rate
structures for the Company I s non-metered schedules. The
fourth section addresses the proposals for the special
The fifth section includes the ratecontract customers.
design proposals for the Company s "rider" schedules for
standby and alternate distribution service.The final
section addresses the proposal for the Company
miscellaneous special contract with the Amalgamated Sugar
Company for the provision of standby service.
NON-DEMAND METERED SCHEDULES
What are the Company I s non-demand metered
service schedules?
Residential Service and Small General
BRILZ , DI
Idaho Power Company
Service, Schedules 1 and 7 respectively, are metered for
kilowatt-hour (kWh) use only.The Energy Watch program,
Schedule 4, and the Time-of -Day program, Schedule 5, which
are offered in the Emmett Valley, are also metered for kWh
use only, although the consumption under both of these
schedules is grouped into time-variant usage blocks.
What is the present rate structure for
Residential Service under Schedule
Presently, residential customers pay a
monthly Service Charge of $4.00.During the summer months
of June , July, and August they pay an Energy Charge of
42519 per kWh for the first 300 kWh used and 6.10609 per
kWh for all usage over 300 kWh.During the non-summer
months of September through May, residential customers pay
42519 per kWh for all kWh used.
What is the revenue requirement to be
recovered from Residential Service customers?
The annual revenue requirement for
Residential Service, which includes Schedule 1, Schedule
and Schedule 5 customers, is $307,408,948 as shown on page 4
of Exhibit No. 58.
Please describe the rate design proposal for
Schedule 1.
The rate design proposal for Schedule 1 is
included on page 2 of Exhibit No. 59.The Service Charge
BRILZ , DI
Idaho Power Company
remains unchanged at $4.00 per month.The Energy Charges
during both the summer and non-summer months are increased
uniformly.The Energy Charge during the summer months for
the first 300 kWh is 5.68759 per kWh and 6.40129 per kWh for
all additional usage.The Energy Charge during the non-
summer months is 5.68759 per kWh for all kWh used.
What impact does this rate design have on
Residential Service customers?
The typical monthly billing comparison for
Residential Service customers appears on page 1 of Exhibit
As can be seen fro this exhibit , the lower theNo. 60.
customer s monthly usage , the lower the overall percentage
increase.
Please describe residential Schedule
Energy Watch Program, and residential Schedule 5 , Time-of-
Day Program.
Each of these optional time-variant pricing
programs is available to residential customers in the Emmett
Valley who are part of the Company s Advanced Metering
Infrastructure (AMI) phase One proj ect.The time-variant
nature of these two programs is enabled by the ability of
AMI to dynamically capture hourly energy consumption.
Energy Watch is a fixed-price critical peak pricing program
in which participants pay a flat rate of 5.42519 for all kWh
used during the year except for those kWh used during an
BRILZ , DI
Idaho Power Company
Energy Watch event.During an Energy watch event , which may
be called on up to ten weekdays between June 15 and August
15 during the hours of 5:00 p.m. to 9:00 p.m., the rate is
209 per kWh.The Time-of-Day Program defines three time
periods during the summer months of June, July, and August
during which participants pay different prices for energy
consumption.During the On-Peak Period customers pay
32799 per kWh, during the Mid-Peak Period customers pay
10609 per kWh, and during the Off-Peak Period customers
pay 4.51459 per kWh.During the non-summer period
customers pay 5.42519 for all kWh used.Under both time-
variant programs customers pay a Service Charge of $4.00 per
month.
How many customers are taking service under
Schedules 4 and
As of August 31, 2006, there were
participants in the Energy Watch Program and 85 participants
in the Time-of-Day Program.
Please describe the rate design proposal for
Schedule 4.
The rate design proposal for Schedule 4 is
included on page 3 of Exhibit No. 59.The Service Charge
remains unchanged at $4.00 per month.The Energy Charge
during Energy Watch Event hours remains unchanged at 209 per
kWh.The Energy Charge during all other hours is 5.68759
BRILZ , DI
Idaho Power Company
per kWh, the same as that proposed for the non-summer and
summer first-300 kWh block Energy Charges for Schedule
Please describe the rate design proposal for
Schedule 5.
The rate design proposal for Schedule 5 is
included on page 4 of Exhibit No. 59.The Service Charge
remains unchanged at $4.00 per month.The existing Energy
Charge differentials between the three pricing blocks is
maintained with the summer On-Peak Energy Charge set at
73089 per kWh , the summer Mid-Peak Energy Charge set at
40139 per kWh , and the summer Off-Peak Energy Charge set
at 4.73299 per kWh.The Energy Charge for all hours during
the non-summer is 5.68759 per kWh , the same as that proposed
for the non- summer for Schedule
What impact do the rate design proposals have
on customers taking service under Schedules 4 and
The typical monthly billing comparisons for
residential service customers taking service under Schedules
4 and 5 appear on pages 2 and 3 of Exhibit No. 60.
What is the present rate structure for Small
General Service under Schedule 7?
Customers taking service under Schedule 7 pay
a Service Charge of $4.00 per month.During the summer
months they pay an Energy Charge of 6.51439 per kWh for the
first 300 kWh used and 7.33619 per kWh for all usage over
BRILZ , DI
Idaho Power Company
3 0 0 kWh.During the non-summer months of September through
May they pay 6.51439 per kWh for all kWh used. Demand is not
billed for Schedule 7 customers.
What is the revenue requirement to be
recovered from Small General Service customers taking
service under Schedule
The annual revenue requirement for Schedule 7
customers as shown on page 4 of Exhibit No. 58 is
$17,688 527.
Please describe the rate design proposal for
Schedule 7.
The rate design proposal for Schedule 7 is
included on page 5 of Exhibit No. 59.The Service Charge
remains unchanged at $4.00 per month.The Energy Charge
during the summer months for the first 300 kWh is 7.59739
per kWh and 8.55579 for all additional usage.The Energy
Charge during the non-summer months is 7.59739 per kWh.
What is the impact of this rate design on
Small General Service customers?
Page 4 of Exhibit No. 60 shows the billing
comparison between the Schedule 7 existing rates and
proposed rates for typical billing levels.
DEMAND-METERED SCHEDULES
What are the Company I s demand-metered
schedules?
BRILZ , DI
Idaho Power Company
The Company's demand-metered schedules are
Large General Service , Large Power Service , and Irrigation
Service, Schedules 9, 19, and 24, respectively.
addi tion, Schedule 25, Irrigation Service Time-of - Use pilot
Program , while not open to new participants, is still
available until October 1 , 2007, to those customers who were
taking service as of October 1, 2002.
How are Schedule 9 and Schedule 19
interrelated?
Both Schedule 9 and Schedule 19 provide
service at Secondary, Primary, and Transmission Service
levels.As customers ' loads change , they can transfer
between Schedule 9 and Schedule 19 while continuing to take
service at the same service level.Both Schedule 9 and
Schedule 19 have a summer and non-summer Demand Charge and a
Basic Charge.In addition Schedule 19 has an On-Peak Demand
Charge in the summer.The Billing Demand is the average kW
supplied during the 15-consecutive-minute period of maximum
use during the billing period, adjusted for Power Factor.
The On-Peak Billing Demand for Schedule 19 customers is the
average kW supplied during the 15-consecutive-minute period
of maximum use during the June, July, and August billing
periods for the on-peak time period.The Basic Load
Capacity is the average of the two greatest monthly Billing
Demands established during the 12 -month period which
BRILZ , DI
Idaho Power Company
includes and ends with the current billing period.
How are the service levels defined?
The service levels were first defined Case
No. IPC-94-5 and continue to be defined in the Company
Tariff Rule Secondary Service is service taken at 480
volts or less, or where the definitions of Primary Service
and Transmission Service do not apply.Primary Service is
service taken at 12,500 volts or 34 500 volts.Transmission
Service is service taken at 44 000 volts or higher.
What is the current relationship between
prices on Schedule 9 and Schedule 19?
Currently, the Service Charge and the Basic
Charge are the same wi thin service level for both Schedule 9
and Schedule 19.For example , the Basic Charge for Primary
Service level is $0.89 per kW per month for both Schedule 9
and Schedule 19; for Secondary Service level , the Basic
Charge is $0.62 per kW per month for both Schedule 9 and
Schedule 19.In addition, the Demand Charges within service
levels are the same for both Schedule 9 and Schedule 19.
For example , the summer Demand Charge of $3.54 per kW for
Schedule 9 Primary Service level is the same as the sum of
the summer Demand Charge of $3.13 per kW and the summer On-
Peak Demand Charge of $0.41 per kW for Schedule 19 Primary
Service level.
Why has this relationship been established?
BRILZ, DI
Idaho Power Company
This relationship was established to be
reflective of cost and to facilitate customer transitions
from Schedule 9 to Schedule 19 and vice versa.
Do your rate design proposals for Schedule 9
and Schedule 19 customers maintain this pricing relationship
between schedules?
For the most part , yes.The rate design
proposals for Schedule 9 and Schedule 19 for both Primary
Service level and Transmission Service level maintain the
relationship between the Service Charge , the Basic Charge,
and the Demand Charges on each of the schedules.The
relationship between Schedule 9 and Schedule 19 for these
two service levels is most important since almost all
customer transitions between these two schedules occurs
within the Primary and Transmission Service levels.The
relationship between Schedule 9 Secondary Service level and
Schedule 19 Secondary Service level is much less important.
Rarely does a customer transition from Schedule 9 Secondary
to Schedule 19 Secondary.In fact, there has been only one
customer taking service under Schedule 19 Secondary Service
level since the service levels were established in 1995.
is much more common for a Schedule 9 Secondary Service level
customer to transition to Schedule 9 Primary Service level
prior to transferring to Schedule 19.For these reasons, I
am recommending that the Schedule 19 Secondary Service level
BRILZ, DI
Idaho Power Company
rate design in this case maintain the existing relationship
with Schedule 19 Primary Service level and that the Schedule
9 Secondary Service level rate design align with the cost
information resulting from the cost-of-service studies.
Does a similar relationship as that between
the Service, Demand, and Basic Charges for Schedule 9 and
Schedule 19 exist for the Energy Charges on these two
schedules?
Although the targeted relationshipNo.
between the Energy Charges on Schedule 9 and Schedule 19
Primary and Transmission Service levels has historically
been a 5 percent differential with the Energy Charges for
Schedule 9 approximately 5 percent higher than the Energy
Charges for Schedule 19, the outcomes from the last two
general rate case proceedings have not allowed this target
to be achieved.Rather , the Energy Charges have been
established to achieve the required revenue for the
respective customer classes given the values established for
the Service, Basic, and Demand Charges.My rate design
proposal in this proceeding recommends Energy Charges for
both Primary and Transmission Service levels under these two
schedules that move closer to the targeted 5 percent
differential.
What is the present rate structure for
Schedule 9?
BRILZ, DI
Idaho Power Company
Service under Schedule 9 is taken at
Secondary, Primary, or Transmission Service level.One
hundred thirty-three customers take service at Primary
Service , two customers take service at Transmission Service,
and 24 784 customers take service at Secondary Service.All
customers taking service under Schedule 9 pay a Service
Charge, a Basic Charge, and summer and non-summer Energy and
Demand Charges. Customers taking Primary or Transmission
service may also pay a Facilities Charge.
How does the current rate structure for
Secondary Service level customers differ from that for
Primary and Transmission Service level customers?
As part of the Company s last general rate
case proceeding, Case No. IPC-05-28, the Commission
approved a two-tier declining energy block rate along with a
block Demand Charge and a block Basic Charge for Schedule 9
Secondary Service level.Under this rate structure, the
first energy block rate applies to the first 2,000 kWh of
usage and the second energy block rate applies to all usage
greater than 2 000 kWh.In addition, there is no charge for
the first 20 kW of Billing Demand or the first 20 kW of
Basic Load Capacity.The blocked energy and demand rate
structures do not apply to customers taking Primary and
Transmission service.
Please describe the rate design proposal for
BRILZ, DI
Idaho Power Company
Schedule 9 Secondary Service level.
The rate design proposal for Schedule 9
Secondary Service level is included on page 6 of Exhibit No.
59. I am proposing the Service Charge be increased from
$12.00 to $15.00.I am also proposing the Basic Charge be
increased from $0.$0.77,the summer Demand Charge be
increased from $3.$4.00,and the non-summer Demand
Charge remain the same at $2.order to align these
components more closely with cost.My rate design proposal
also includes an equal percentage increase of 13.8 percent
to the existing Energy Charges for both seasons and for both
usage blocks.This approach results in a summer Energy
Charge of 7.75549 for the first 2,000 kWh and an Energy
Charge of 3.32239 per kWh for all other usage.The non-
summer Energy Charge for the first 2,000 kWh is 6.91779 and
is 2.96359 for all usage greater than 2 000 kWh.
What is the impact of this rate design on
Schedule 9 Secondary Service level customers?
Pages 5 through 7 of Exhibit No.6 0 show the
billing comparison between the Schedule 9 Secondary Service
level existing rates and proposed rates for typical billing
levels.
Please describe the rate design proposal for
Schedule 9 customers receiving service at the Primary and
Transmission Service levels.
BRILZ , DI
Idaho Power Company
I am proposing the Service Charge for both
Primary and Transmission Service levels be set at $300.For
Primary Service level I am proposing a Basic Charge of
$0.98, a summer Demand Charge of $3., a non-summer Demand
Charge of $3.11, and Energy Charges of 3.05549 and 2.73649
for summer and non-summer , respectively.For Transmission
Service level I am proposing a Basic Charge of $0., a
summer Demand Charge of $3.85, a non-summer Demand Charge of
$3.05, and Energy Charges of 2.98309 and 2.68559 for the
summer and non-summer, respectively.
What is the billing impact of this rate
design proposal on the customers receiving service under
Schedule 9 Primary and Transmission Service levels?
Page 8 of Exhibit No. 60 shows the billing
comparison between the existing rates and proposed rates for
Schedule 9 , Primary Service level and Schedule 9
Transmission Service level.These comparisons are based on
actual billing data for 2006.As can be seen from this
exhibit , approximately 77 percent of the customers taking
service under Schedule 9 Primary and Transmission Service
level receive an increase in their annual bills less than
the 13.14 percent overall increase for the Schedule 9
customers as a whole.The remaining 23 percent of the
customers receive an increase that is no more than just
under a half percent greater than the 13.14 percent average
BRILZ , DI
Idaho Power Company
for the class.
What is the revenue requirement to be
recovered from Schedule
The total annual revenue to be collected from
customers taking service under Schedule 9 as shown on page 4
of Exhibit No. 58 is $157 253.997.
What is the present rate structure for
Schedule 19?
Service under Schedule 19, just like service
under Schedule 9 , is provided under Secondary, Primary, and
Transmission Service levels. All customers taking service
under Schedule 19 pay seasonal time-of -use Energy Charges,
seasonal Demand Charges, a summer On-Peak Demand Charge , a
Basic Charge, and a Service Charge. Customers taking Primary
or Transmission Service may also pay a Facilities Charge. In
addition, Schedule 19 includes a 1 000 kW minimum billing
demand and basic load capacity.
What is the rate design proposal for Schedule
19?
The rate design proposal for Schedule 19
shown on pages 10 through 12 of Exhibit No. 59.Al though
increases are proposed for all rate components on Schedule
19, no changes to the rate structure are proposed.
What are the proposed changes for Schedule 19
customers?
BRILZ , DI
Idaho Power Company
The proposed Service Charge for Schedule 19
for both Primary and Transmission Service levels is $300.
For Schedule 19 Secondary Service level the proposed Service
Charge is $15.00.The proposed Basic Charges for Schedule
19 are $0., $0.98, and $0.51 for the Secondary, Primary,
and Transmission Service levels, respectively.The proposed
summer On-Peak Demand Charge is $0.77 for all service
levels.The proposed summer Demand Charges are $3.21,
$3.15, and $3.08 and the proposed non-summer Demand Charges
are $3.13, $3.11, and $3.05 for the Secondary, Primary, and
Transmission Service levels, respectively.
What are the specific proposed Energy Charges
for Schedule 19 customers?
The Energy Charges by service level and time
period for each season are:
TimePeriod
- - - - - - - - - - -
Service Level- -
- - - - - - - - - - --
Secondary Primary Transmission
Summer
On-Peak 73439 19229 16089
54809 88169 85289
30689 68579 65919
Mid- Peak
Off-Peak
Non - Summer
Mid-Peak 60689 5757919219
Off-Peak 48719 4574904789
These Energy Charges were derived by increasing the
BRILZ, DI
Idaho Power Company
existing charges uniformly by 17.5 percent.
What is the revenue requirement to be
recovered from Large Power Service customers taking service
under Schedule 19?
The annual revenue requirement for Schedule
19 customers as shown on page 4 of Exhibit No. 58 is
$75,749,894.
What is the impact of the rate design on
Large Power Service customers?
As can be seen from page 9 of Exhibit No. 60,
approximately 80 percent of the customers taking service
under Schedule 19 receive an increase in their annual bills
less than the 15 percent overall increase for the Schedule
19 customers as a whole.The remaining 20 percent of the
customers receive an increase that is no more than 1 percent
greater than the 15 percent average for the class.
What is the current rate structure for
Schedule 24?
Service under Schedule 24 is classified as
being either "in-season" or "out-of-season"The in-season
for each customer begins with the customer I s meter reading
for the May billing period and ends with the customer I
meter reading for the September billing period.The out-of-
season encompasses all other billing periods.
Within the in-season , customers pay both an
BRILZ, DI
Idaho Power Company
Energy Charge and a Demand Charge for the metered usage.
During the out-of-season , customers pay an Energy Charge
only.For the in-season , customers pay a monthly Service
Charge of $14.25.The monthly Service Charge during the
out-of-season is $3.00.
Both Secondary Service and Transmission
Service levels are available under Schedule 24 , although no
customers are currently taking Transmission Service.
Please describe the rate design proposal for
Schedule 24.
I am proposing to keep the overall rate
structure for Irrigation Service as it is currently.
Consistent with my overall obj ectives, I propose to move the
individual rate components closer to the costs indicated by
the 3CP/12CP cost-of-service study.
What approach did you take in determining the
amount of increase for each rate component?
I first considered the percentage of overall
revenue requirement identified by demand, energy, and
customer component for irrigation service resulting from the
3CP/12CP cost-of-service study.These percentages
established the target for each component.Second, I
determined the percentage of overall revenue by component
currently provided by the existing base rates.The
difference , or gap, between the target and the actual
BRILZ, DI
Idaho Power Company
percentage was then determined for each component.I then
adjusted the current percentage of overall revenue by
component by approximately 9 percent of the gap to establish
my targets for this proceeding.Customer-, demand-, and
energy-related charges were then established to achieve
these new targets.I have included details of these
calculations in my workpapers.
How were the rates for Transmission Service
determined?
Once the component rates for Secondary
Service were determined, the charges for Transmission
Service were established to maintain the same relationship
between service levels as currently exists.
What is the proposed Service Charge for
Schedule 24?
The proposed Service Charge for Secondary
Service during the in-season is $22.50 per month.The
proposed Service Charge for Transmission Service during the
in-season is $300 per month.This amount is the same charge
proposed for Schedule 9 and Schedule 19 Transmission
Service.For both Secondary and Transmission Service , the
Service Charge during the out-of-season is $3.00 per month.
What is the proposed Demand Charge for
Schedule 24?
The proposed Demand Charge for Secondary
BRILZ, DI
Idaho Power Company
Service is increased from $4.36 to $5.45 per kW per month.
The proposed Demand Charge for Transmission Service is
increased from $4.10 to $5.13 per kW per month.The Demand
Charge is billed to Schedule 24 customers during the in-
season only.
What are the proposed Energy Charges for
Schedule 24?
The proposed Energy Charges for Secondary
Service are increased from 3.39649 per kWh to 3.96929 per
kWh during the in-season and from 4.32349 per kWh to 5.24929
per kWh during the out-of-season.The proposed Energy
Charges for Transmission Service are increased from 3.23189
per kWh to 3.77689 per kWh during the in-season and from
11399 per kWh to 4.99489 per kWh for the out-of-season.
What is the impact of the rate design on
Schedule 24 irrigation service customers?
Page 10 of Exhibit No. 60 shows the billing
impact of the proposed rate design.As can be seen from
page 10 of Exhibit No. 60, approximately 37 percent of the
customers taking service under Schedule 24 receive an
increase in their annual bills of less than 20 percent, the
total overall percentage increase for the class as a whole.
Another 33 percent of the customers receive an increase
just 2 percent or less above the overall class increase of
20 percent.
BRILZ , DI
Idaho Power Company
What are the usage characteristics of the
Schedule 24 customers receiving increases less than and
greater than 20 percent?
Because the rate design increases the Demand
Charge by a greater percentage than it increases the Energy
Charges, the higher a customer I s load factor, the more
beneficial the rate structure tends to be in terms of the
overall impact to the annual billing.As can be seen from
page 10 of Exhibit No. 60, customers with the highest
percentage increase in annual bills have the lowest load
factors.
Have you included Schedule 25 , Irrigation
Service Time-of-Use pilot Program in your rate design
proposals?
Schedule 25 currently provides continuedNo.
service until October 1 , 2007 , for those participants who
were enrolled in the pilot program on October 1 , 2002.
October 1 , 2007 , the pilot program will terminate.At that
time any customers receiving service under Schedule 25 will
be transferred to Schedule 24.I have included the test
year data and the revenue requirement associated with
Schedule 25 in the overall revenue requirement and rate
design calculations for Schedule 24.
NON -METERED SCHEDULES
What are the Company I s non-metered service
BRILZ , DI
Idaho Power Company
schedules?
The Company I s non-metered schedules are Dusk-
to-Dawn Customer Lighting, Street Lighting Service
Supplemental Seasonal or Variable Energy, Unmetered General
Service, Street Lighting Service, and Traffic Control Signal
Lighting Service, Schedules 15, 39, 40, 41 , and 42
respectively.
What is the present rate structure for Dusk-
to-Dawn Customer Lighting on Schedule 15?
Customers taking service under Schedule 15
are charged on a per lamp basis.Lamps currently served
under Schedule 15 include 100, 200 , and 400 watt high
pressure sodium vapor area lighting, 200 and 400 watt high
pressure sodium vapor flood lighting, and 400 and 1 000 watt
metal halide flood lighting.
What is the revenue requirement to be
recovered from customers 'taking service under Schedule 15?
The annual revenue requirement for Schedule
15 customers as shown on page 4 of Exhibit No. 58 is
$961 157.
Please describe the rate design proposal for
Schedule 15.
The rate design proposal for Schedule 15 is
included on page 9 of Exhibit No. 59.The monthly charge
for each lamp is simply increased on a uniform percent basis
BRILZ, DI
Idaho Power Company
consistent with the overall 3.2 percent increase for the
class as a whole.
Are you proposing any other changes to
Schedule 15?
Service under Schedule 15 is currentlyYes.
described as providing 4 105 hours of lighting per year with
the lamps energized each night from one-half hour after
sunset to one-half hour before sunrise.Earlier this year
Company personnel engaged in research to determine if the
number of hours used to describe the Dusk-to-Dawn Customer
Lighting service was still applicable.Based on information
from the Environmental Protection Agency s Green Lights
document and an update to the Company s Load Research
Department's vintage lighting-hour analysis, it was
determined that current photocell technology typically
energizes lamps each night beginning 20 minutes after sunset
until 20 minutes prior to sunrise.Based on this updated
information , the number of hours of lighting provided per
year under Schedule 15 has been revised to 4,059.
Are you proposing any other changes to
Schedule 15?
, I am not.
What is the present rate structure for
Unmetered General Service under Schedule 40?
Customers taking service under Schedule 40
BRILZ, DI
Idaho Power Company
pay a flat Energy Charge based on estimated usage.Demand -
and customer-related costs are recovered through the Energy
Charge.The minimum bill for service under Schedule 40 is
$1.50 per month.
What is the revenue requirement to be
recovered from customers taking service under Schedule 40?
The annual revenue requirement for Schedule
40 customers as shown on page 4 of Exhibit No. 58 is
$940,499.
Please describe the rate design proposal for
Schedule 40.
The rate design proposal for Schedule 40 is
included on page 16 of Exhibit No. 59.The Energy Charge
remains flat and increases from 5.3819 per kWh to 5.7489 per
kWh.
Are any other changes being proposed to
Schedule 40?
No.
What is the present rate structure for Street
Lighting Service, Schedule 41?
Charges for Street Lighting Service are based
on a per-lamp or per-pole basis.Street Lighting is divided
into two types: 1) Company-Owned , and 2) Customer-Owned.
Both metered and non-metered service is provided for
Customer-Owned lighting; only non-metered service is
BRILZ , DI
Idaho Power Company
provided for Company-Owned lighting.Schedule 41 does not
allow new service for incandescent, mercury vapor , or
fluorescent fixtures.
Are you proposing any changes to the rate
structure for Schedule 41?
However, I have removed the 1,000 wattNo.
mercury vapor fixture from the "No New Service " section
since there are no longer any of these fixtures in service.
What is the revenue requirement to be
recovered from customers taking service under Schedule 41?
The annual revenue requirement for Schedule
41 customers as shown on page 4 of Exhibit No. 58 is
$2,227,883.
Please describe the rate design proposal for
Schedule 41.
The rate design proposal for Schedule 41 is
included on pages 17 through 19 of Exhibit No. 59.Each
per-lamp charge for both non-metered and metered service is
simply increased by the overall percentage increase for
Schedule 41 , or 8. 35 percent.In addition , the per-kWh
charge for metered service is increased by the overall 8.
percent increase.The monthly meter charge of $8.00 is not
increased.I propose to keep this charge at its current
level.
As part of the Company s last general rate
BRILZ, DI
Idaho Power Company
case, Case No. IPC-05-28, Schedule 39, Street Lighting
Service Supplemental Seasonal or Variable Energy, was
implemented.What is the purpose of Schedule 39?
Schedule 39 is a temporary tariff set to
expire on May 31, 2011.It is intended to help provide a
transition to either metered service or facilities
reconfiguration for street lighting customers whose
facilities have actual or potential variable usage due to
wired outlets or usable plug- in.Only those customers
receiving non-metered service under Schedule 41 prior to
June 1, 2004 , are eligible for Schedule 39 supplemental
service.
What is the present rate structure for
Schedule 39?
Customers taking service under Schedule 39
pay a flat Energy Charge based on estimated seasonal or
variable usage.The current Energy Charge is the same as
the current Energy Charge for Schedule 40, Unmetered General
Service.
Please describe the rate design proposal for
Schedule 39.
The rate design proposal for Schedule 39 is
included on page 15 of Exhibit No. 59.The Energy Charge is
increased to 5.7489 per kWh in order to match the Energy
Charge proposed for Schedule 40, Unmetered General Service.
BRILZ, DI
Idaho Power Company
What is the present rate structure for
Traffic Control Signal Lighting Service, Schedule 42?
Customers taking service under Schedule 42
pay a flat Energy Charge for each kWh of estimated energy
use for non-metered systems and for each kwh of actual usage
for metered systems.For non-metered systems, usage is
estimated based on the number and size of lamps burning
simultaneously in each signal and the average number of
hours per day the signal is operated.There is no minimum
charge under Schedule 42.
What is the revenue requirement to be
recovered from customers taking service under Schedule 42?
The annual revenue requirement for Schedule
42 customers as shown on page 4 of Exhibit No. 58 is
$216 820.
Please describe the rate design proposal for
Schedule 42.
The rate design proposal for Schedule 42 is
included on page 20 of Exhibit No. 59.The Energy Charge is
increased from 3.44389 per kWh to 3.96049 per kWh.
Is the Company proposing any other changes to
Schedule 42?
No.
SPECIAL CONTRACT CUSTOMERS
What are your rate design proposals for the
BRILZ, DI
Idaho Power Company
special contract customers?
I am proposing to maintain the current rate
structures for Micron , the J. R. Simplot Company, and the
Department of Energy.Accordingly, the existing rates for
the special contract customers are simply increased
uniformly by 20 percent to recover the revenue requirement
as shown on page 4 of Exhibit No.5 8 .The rates for Micron
the J. R. Simplot Company, and the Department of Energy are
shown on pages 21, 22 , and 23 of Exhibit No. 59,
respectively.
STANDBY AND ALTERNATE DISTRIBUTION SERVICE
Are any customers currently taking service
under Schedule 45, Standby Service?
One customer is currently takingYes.
Schedule 45 service.
Are any revisions to Schedule 45 being
proposed?
The Schedule 45 charges are being revised to
reflect the updated cost information resulting from the
3CP/12CP cost-of-service study.The updated charges have
been derived using the same methodology used to derive the
charges approved by the Commission in the Company s last
three general rate cases , Case No. IPC-E-94-5, Case No. IPC-
03-13, and Case No. IPC-05-28.I have included the
details of these updated costs in the workpapers filed with
BRILZ , DI
Idaho Power Company
my testimony. No other changes are being made to Schedule
45.
What are the proposed charges for Schedule
45?
The proposed Standby Reservation Charge for
each kW of Available Standby Capacity during the summer
months is decreased from $1.58 per kW to $1.43 per kW for
Primary Service level and from $0.37 per kW to $0.28 per kw
for Transmission Service level.During the non-summer
months the proposed Standby Reservation Charge is decreased
from $1.46 per kW to $1.38 per kW for Primary Service level
and from $0.25 per kW to $0.24 per kW for Transmission
Service level.The proposed Standby Demand Charge per kW of
Standby Billing Demand consumed in the summer is increased
from $4.35 per kW to $5.05 per kW for Primary Service level
and from $4.11 per kW to $4.77 per kw for Transmission
Service level.During the non-summer months the proposed
Standby Billing Demand Charge per kW is increased from $4.
per kW to $4.22 per kW for Primary Service level and from
$3.84 per kW to $3.99 per kW for Transmission Service level.
No changes are proposed for the Excess Demand Charge.
Are you proposing any other changes to
Schedule 45?
As I will discuss later in myYes.
testimony, I am proposing changes to the Company s Uniform
BRILZ , DI
Idaho Power Company
Service Agreement provision under Rule Currently, the
amount of capacity contracted for under the Uniform Service
Agreement is the Supplementary Contract Demand as defined
under Schedule 45.wi th the proposed change to Rule C, it
becomes necessary to remove the reference to the Uniform
Service Agreement within Schedule 45 and instead add
language to the Uniform Standby Service Agreement to specify
the amount of Supplementary Contract Demand.These proposed
language changes are detailed on page 88 and pages 91
through 92 of Exhibit No. 61.
Are any customers currently taking service
under Schedule 46 , Alternate Distribution Service?
Three customers are currently takingYes.
service under Schedule 46 and two other customers have
signed agreements for service and are awaiting installation
of the required facilities.
What changes are proposed for Schedule 46,
Alternate Distribution Service?
The Schedule 46 Capacity Charge is proposed
to increase from $1.21 per kW to $1.23 per kW to reflect the
current cost of providing Alternate Distribution Service.
The $1.23 amount is derived by summing the Distribution
demand revenue requirement for Substations, Primary Lines
and Primary Transformers for Schedule 19 shown on page 5 of
Mr. Tatum s Exhibit No. 54 ($1,424 042; $3,164 941; and
BRILZ, DI
Idaho Power Company
$181,394, respectively) and dividing this sum by the total
billed kW of 4 174 327.This methodology is the same as
that used to derive the charges approved by the Commission
in the Company s last three general rate cases, Case No.
IPC-94-5, Case No. IPC-03-, and Case No. IPC-05-28.
MISCELLANEOUS CONTRACT
What is the miscellaneous special contract
under which the Company is providing service?
The Company has entered into a contract with
the Amalgamated Sugar Company to provide customized standby
service.The Company s initial contract with the
Amalgamated Sugar Company to provide standby service was
entered into on April 6, 1998.Standby service is currently
being provided to the Amalgamated Sugar Company under the
provisions of a revised Standby Electric Service Agreement
dated December 7 , 2005.This agreement has been , as was the
ini tial agreement , approved by the Commission.
Are you proposing any changes to the standby
charges under the Standby Electric Service Agreement with
the Amalgamated Sugar Company?
Yes.I am revising the charges to reflect
the updated cost information resulting from the 3CP/12CP
cost-of-service study.The methodology used to update the
charges is the same methodology used to establish the
currently approved charges.Page 162 of Exhibit No. 61
BRILZ , DI
Idaho Power Company
shows the proposed revisions to Schedule 31 to reflect these
updated charges.I have included details on the derivation
of the updated charges in my workpapers.
General Rules and Regulations
Would you please summarize the maj or changes
being proposed to the General Rules and Regulations?
I am proposing three substantiveYes.
changes to the General Rules and Regulations.First, I am
proposing changes to Rule C, Service and Limitation
regarding the provision requiring service agreements.
Second , I am proposing changes to Rule K, Customer s Load
and Operations, to clarify, strengthen, and add support to
the provisions regarding harmonic control and customers
responsibilities regarding changes in load characteristics
and protection of equipment.Finally, I am proposing a
change to the Billing Period definition under Rule
Have you made other , non- substantive changes
to the General Rules and Regulations?
Yes, I have made several changes which I
consider "form" or "housekeeping" in nature only and do not
change the scope, effect , or application of the various
tariffs.I do not intend to discuss each of these changes
at this time.
Have you prepared an exhibit or exhibits
detailing the proposed changes to the Company s Tariff?
BRILZ, DI
Idaho Power Company
The changes to the General Rules andYes.
Regulations are detailed in Exhibit No. 61 , pages 4 through
41. These revisions are shown in legislative format in
Exhibit No. 61 so that parties reviewing them will be able
to readily identify the proposed changes.
Please describe the changes you are proposing
to Rule
Prior to describing the specific changes I am
proposing, I think it would be helpful to briefly provide
some background regarding the current Service Agreement
provision under Rule
Please continue.
Prior to June 1, 2004, customers eligible for
service under Schedule 19 were required to sign a Uniform
Large Power Service Agreement with the Company in order to
receive service under Schedule 19.If the customer refused
to sign the Agreement, service continued to be provided
under Schedule 9, although the customer was not technically
eligible for service under Schedule In order to ensure
that customers were placed on the appropriate service
schedule based on their usage characteristics, the Company,
as part of its general rate case filing in Case No. IPC-
03 -13, proposed to eliminate the requirement that a Uniform
Large Power Service Agreement be signed in order to receive
service under Schedule 19.The Commission approved the
BRILZ , DI
Idaho Power Company
Company s proposal in that proceeding.
Were any other contracting provisions
approved at that time?
As part of that same case, the CompanyYes.
proposed, and the Commission approved, what is now the Rule
C Service Agreement provision.
What is that provision?
Under Rule C, Section 4 , Service Agreement,
service to all loads equal to or in excess of 1 000 kW at a
single point of delivery is subj ect to pre-approval by the
Company through a written and signed Uniform Service
Agreement between the customer and the Company.This
provision was intended to provide the Company with useful
information for its planning purposes and the customer with
certainty that the facilities are in place to provide the
agreed upon level of capacity.
Why are you now proposing to eliminate the
Uniform Service Agreement?
There are several factors that influenced the
Company s decision to eliminate the Uniform Service
First, agreements specifying a contracted levelAgreement.
of demand no longer provide value from a planning
perspective.The Company, through new technologies, can
moni tor network utilization of individual transformers,
feeders, and substations to provide valuable information for
BRILZ, DI
Idaho Power Company
its planning purposes.Second, several customers have
expressed that they see no value in the Uniform Service
Agreement and have chosen not to enter into one.wi th both
the Company and customers seeing little to no value being
provided by the Agreement, it makes sense to eliminate the
provision that one be signed.
Are you proposing any other changes to the
General Rules and Regulations as a result of your proposal
to eliminate the Uniform Service Agreement?
Yes.The terms and conditions of the current
Uniform Service Agreement provide the Company the ability to
require the customer to pay for any damages that may be
caused due to the customer taking power in excess of the
amount stated in the Agreement.In order to provide this
same ability to the Company in the future , language has been
added to Rule K, Section 3, Change of Load Characteristic.
This section of Rule K currently requires customers to
provide prior notice before making any significant change in
ei ther the amount or electrical character of their loads.
The new language added to this section continues to provide
the Company the same protection currently included in the
Uniform Service Agreement and clarifies for all customers
the potential consequence of failing to provide prior notice
of changes in electrical load.
What other changes are you proposing to Rule
BRILZ, DI
Idaho Power Company
In addition to the change I just described, I
am proposing three other changes to Rule The first
change is relatively minor and regards the section on
Practices and Requirements for Harmonic Control.Language
in Section 2 currently references the Institute of
Electrical and Electronic Engineers (IEEE) Standard 519-
I am proposing that this language be changed to no1992.
longer refer to a specific edition of the IEEE 519 standard,
e., the 1992 edition, but rather to the current edition.
This change will allow the Company to implement the current
standard as updates are made without having to make a tariff
filing with the Commission.
What is the second change you are proposing?
I am proposing the language in the Protection
of Electrical Equipment section be modified to reflect the
advancements made in modern electronics.The proposed
updated language for Section 4 addresses the need for
customers to adequately protect not only their equipment and
property but also their data , operations, and work from
disturbances on the electrical system.Such disturbances
may include high and low voltages, surges, harmonics,
transients in voltage, overcurrent, and, for unidirectional
and three-phase equipment, single phasing conditions,
reversal of phase rotation, and phase unbalance.
BRILZ , DI
Idaho Power Company
What is the third change you are proposing?
I am adding language that specifically states
that the Company must approve the connection to the
Company s system of all motors greater than 7 ~ horsepower
in order to ensure that adequate facilities are installed to
limit the effects of flicker , voltage balance , voltage
level , or reactive power , to name a few, that may be caused
by the motor.If changes are necessary to the Company
facilities in order to prevent a motor installation from
affecting the Company s system, the proposed language
specifies that the customer installing the motor may be
required to pay the costs associated with the additional
facilities.In addition , I have made changes to the
Allowable Locked Rotor Currents table included in Rule K to
clarify the starting currents that are allowed for different
size motors and to more clearly specify that if no starting
current value is shown in the table for a specific size
motor, the Company must approve the starting current prior
to motor installation.
What is the overall purpose for these
modifications to Rule K?
The overall purpose is to incorporate into
the Company s Rules and Regulations recognition of the
sensi ti ve nature of modern loads, the impacts these loads
can have on the Company s system and other customers, and
BRILZ, DI
Idaho Power Company
customers ' responsibilities regarding their loads and
operations in order to address potential power quality
issues.
What change are you proposing to the
definition of Billing Period under Rule B?
I am proposing the definition of "Billing
period" included in Rule B be changed to specify that while
a typical billing period is 30 days, the normal billing
period is considered to be 27 to 36 days.Rule B currently
specifies a normal billing period to be 27 to 33 days.
Why is this change being made?
As part of the Company s billing process,
meter reading lists are prepared three days in advance of
the read date. If a meter is installed for a customer,
ei ther due to a new service or as part of meter maintenance,
three days or less before the scheduled read date for the
route, the customer s meter will not be included on the
meter reading list for that month's reading.When this
si tuation occurs, the period of time between when the meter
was installed and when it is read can exceed 33 days.When
the number of days in the billing period exceeds the current
upper limit of 33 days, the Service Charge, Basic Charge,
and Demand Charge are prorated to recognize the longer
billing cycle.
How will extending the normal billing period
BRILZ, DI
Idaho Power Company
to encompass 36 .days be beneficial?
Extending the normal billing period to
encompass 36 days will minimize the number of bills that
include prorated billing components.The reduced number of
prorated bills will reduce customer dissatisfaction, the
number of calls received in the Company s Customer Service
Center, and Company workload.
Are any other schedules affected by this
change to Rule B?
Schedules 4 , 5, 7, and 9 includeYes.
references to the number of days in a billing period for
purposes of determining service eligibility.The language
in the "Applicability" section for each of these schedules
has been revised to reflect the upper limit of 36 days for a
normal billing cycle.
Are you proposing any other substantive
changes to the General Rules, Regulations and Rates?
No.
Does this cone 1 ude your testimony?
Yes,does.
BRILZ , DI
Idaho Power Company
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O7-
IDAHO POWER COMPANY
EXHIBIT NO. 58
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Idaho Power Company
Typical Monthy Billing Comparison
state of Idaho
Large General Service
Schedule 9 Secondary Service Level
Summer
(1)(2)(3)(4)
Line Demand BLC Load Energy Current Proposed Difference Percent
Factor kWh Rate Rate Difference
20%1,460 111.51 128,16,14,99%
35%555 164.188,24,14,61%
50%650 196,224.28.43 14.47%
65%745 228.47 261.31 32.14,37%
80%840 260.44 297,37,14,30%
20%300 433.494.60,14.06%
35%12,775 593.676.83.13,98%
50%18,250 753.44 858.47 105.13,94%
65%23,725 913,040.127.13,91%
80%29,200 073.222,149,13,89%
100 114 20%14,600 861,981.10 119,13,86%
35%25,550 1,181.43 344.163.46 13,84%
50%36,500 1.501.16 1.708.207.13,82%
65%47,450 820.072.47 251.13,82%
80%58,400 140.2,436.295.13,81%
300 342 20%43,800 573.926.353.13.72%
35%76,650 532,018.485.13.74%
50%109,500 4,492.109,617.47 13,75%
65%142,350 5,451 ,200.749,13,75%
80%175,200 6,410.42 292,881.13,76%
500 570 20%73,000 285,872.44 586.79 13,69%
35%127,750 884.691.40 807.13,72%
50%182,500 7,482,510.027.42 13.73%
65%237,250 081.58 10,329,1.247,13.74%
80%292,000 10,680.12,148.1,468.13.75%
750 855 20%109,500 6,425,304,878,13,68%
35%191,625 823.10,032.1.209,13.71%
50%273,750 11,221,12,761.41 539,13.72%
65%355,875 13,619,15,489,870,13.73%
80%438,000 16,017.48 18,218.200.13.74%
Exhibit No, 60
Case No, IPC-07-
M, Brilz, IPC
Page 5 of 10
Idaho Power Company
Typical Monthy Billing Comparison
state of Idaho
Large General Service
Schedule 9 Secondary Service Level
Non-Summer
(1)(2)(3)(4)
Line Demand BLC Load Energy Current Proposed Difference Percent
Factor kWh Rate Rate (1)Difference
20%1,460 100,116.15,15.11%
35%555 148,169.21.74 14.68%
50%650 176.202.25.14,54%
65%4,745 205,234.70 29,14.43%
80%840 233.267.33,14,35%
20%300 383.428.44.11,55%
35%12,775 526,590.63,12,15%
50%18,250 668,752,83,12.50%
65%23,725 811.51 914,103,12,72%
80%29,200 954.077.122,12,88%
100 114 20%14,600 757,836,79.10.44%
35%25,550 042.161.24 118.11.35%
50%36,500 328.1,485,157.11,87%
65%47,450 613.1,810,196.12,21%
80%58,400 898.134.236,12.44%
300 342 20%43,800 253.2,471,218.68%
35%76,650 109.3,445.335.10.80%
50%109,500 964.4,418,453.11.44%
65%142,350 820.392.571.11.86%
80%175,200 676.365.689,12,15%
500 570 20%73,000 3,7 49.106.357.52%
35%127,750 175.5,729.553.45 10,69%
50%182,500 601.351.749.11,36%
65%237,250 027.76 974.946.11.79%
80%292,000 9,453,10,596.142,12,09%
750 855 20%109,500 619.45 150,530.9.44%
35%191,625 758.583.825,10,64%
50%273,750 897,11,017,120.11.32%
65%355,875 12,036,13,451.49 1,414,11.75%
80%438,000 14,175.15,885,1,709,12,06%
Exhibit No, 60
case No, IPC-07-
M, Brilz, IPC
Page 6 of 10
~: i;
Idaho Power Company
Typical Monthy Billing Comparison
State of Idaho
Large General Service
Schedule 9 Secondary Service Level
Average Monthly Bill - 12 Months
(1)(2)(3)(4)
Line Demand BLC Load Energy Current Proposed Difference Percent
Factor kWh Rate Rate Difference
20%1.460 103.46 119.15.15.08%
35%555 152.174.49 22,14.66%
50%650 181.56 207,26,14.52%
65%745 210.241,30.41 14.42% :. '
80%840 240.274.78 34.45 14.33%'
20%300 396.444.48.48 12.24%
35%12,775 543,611.84 68.12,65%
50%18,250 690.779,88.12,89%
65%23,725 836.946.109.13.05%
80%29,200 983.113.29.45 13,16%
100 114 20%14,600 783.872.89,11.38%
35%25,550 077.207,129,12.03%
50%36,500 371,1,541.48 170.12.40%
65%47.450 665.875.210.12.65%
80%58.400 959,210.251,12.82%
300 342 20%43,800 333.585.42 251,10.79%
35%76,650 215,588.40 373,11.61%
50%109,500 096.591.494.70 12.08%
65%142,350 978,594,616.12,38%
80%175,200 859,597,737.12,59%
500 570 20%73,000 883,298.414.45 10,67%
35%127,750 352.969.616,11,52%
50%182,500 822,641.819.12.01%
65%237,250 291.312,021,12,32%
80%292,000 760.43 10,984,224,12.54%
750 855 20%109,500 820.6.438.7 6 617,10,61%
35%191,625 024,946.921,11.48%
50%273,750 10,228.11.453.225,11.98%
65%355,875 12.432.46 13,961.08 528,12.30%
80%438,000 14,636.16.468,832,12,52%
Exhibit No, 60
Case No, IPC-07-
M, Brilz, IPC
Page 7 of 10
IDAHO POWER COMPANY
BilLING IMPACT OF PROPOSED RATES
STATE OF IDAHO
Large General Service
Schedule 9 Primary and Transmission Service Levels
Average Average
Percent Current Proposed Annual Monthly
Range Customers Billing Billing Difference Increase kWh
Less Than 12,830 158 927,438 281 632 881
GE 12,1% LT 12.64%947 196 189 442 242 246 353 176 681
GE 12,64% LT 13,14%551 035 140 091 589 057 328 264 329
GE 13,14% LT 13,966 107 4,493 140 527 033 568 350 841
Exhibit No, 60
Case No, IPC-07-
M, Brilz, IPC
Page 8 of 10
IDAHO POWER COMPANY
BilLING IMPACT OF PROPOSED RATES
STATE OF IDAHO
Large Power Service
Schedule 19 Primary, Secondary, and Transmission Service Levels
Average Average
Percent Current Proposed Annual Monthly
Range Customers Billing Billing Difference Increase kWh
Less Than 14,029 686 562 725 533 039 176 519 206
GE 14,0% L T 14,127 162 003 802 876 640 41 ,745 807 767
GE 14,5% L T 15,388 036 336 422 948 386 109 964 119,493
GE 15,0% LT 15,234 090 156 229 922 139 146 107 676,425
GE 15,5 L T 16,0%%077 801 246 051 168 250 125 18,493 906
Exhibit No, 60
Case No, IPC-07-
M, Brilz, IPC
Page 9 of 10
, ': :'
IDAHO POWER COMPANY
BilLING IMPACT OF PROPOSED RATES
STATE OF IDAHO
Agricultural Irrigation Service
Schedule 24 Secondary Service Level
Average Summer Annual
Current Proposed Annual load load
Percent Range Customers Billing Billing Difference Increase Factor Factor
Less than 20%4822 $ 50 349 619,$ 60 035 621.44 686 002,009 64,23.4%
GE 20% L T 22%4248 021 571,074 566,052 994,483 38.4%15.4%
GE 22% L T 24%1373 955,021,172 019,216 998,158 27,11.4%
GE 24% L T 26%924 372,686.49 465,171,92,485.49 100 21.4%
GE 26% L T 28%594 177 122,224 607,47,485,16,
GE 28%1017 212 452,282,479,027,11,4.4%
Customers with non-zero summer load factors
Exhibit No, 60
Case No, IPC-07-
M, Brilz, IPC
Page 10 of 10