20070918Decision memo.pdf

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DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
CO MMISSI 0 N SECRETARY
LEGAL
WORKING FILE
FROM:MARIL YN PARKER AND B E VE RL Y BARKER
DATE:SEPTEMBER 14, 2007
RE:FORMAL COMPLAINT FILED BY SOUTH ELMORE
IRRIGATION DISTRICT
On August 21 2007, the Commission received a "formal" complaint (attached) from
Peter Richardson, attorney for South Elmore Irrigation Company, against Idaho Power
Company. South Elmore Irrigation Company ("South Elmore" or "customer ) disputes a
rebilling in the amount of $916 702.24 for energy usage. Due to an Idaho Power employee
error, the customer was billed for one-half of the energy consumed from Nov~mber 18, 2002 to
Apri126, 2007 (53 months). Idaho Power rebilled for usage only during the most recent 36
months.
BACKGROUND
The South Elmore Irrigation Company did not file an informal complaint with the
Commission prior to filing its "formal" complaint. Consistent with the Commission s standard
procedure, the Consumer Assistance Staff contacted Idaho Power to informally investigate the
rebilling of this customer. Idaho Power aclmowledged t.'J.at there had been a billiTlg error with
regard to usage at South Elmore s Flying H pump station. That pump station is 1 of 18 service
points included on a summary bilL! According to Idaho Power, a load profile meter was
Surnmary billing allows customers who have multiple meters and/or service locations to consolidate charges onto
one billing statement each month. Billing detail is provided for each service point and a total amount owing
identified. '
DECISION MEMORANDUM - 1 -SEPTEMBER 14, 2007
replaced with a regular meter at the conclusion of a load profile study. Shortly after the meter
change, a meter technician changed the billing constant from 12 000 to 6 000 in error. The error
was discovered during an Idaho Power meter inspection in May 2007. The customer was
correctly billed for usage prior to December 2002. Following identification of the error, the
customer was correctly billed starting in May 2007.
In response to Staff's investigation , Idaho Power offered to allow the customer a longer
period of time in which to repay the rebilled amount. Idaho Power rebilled for usage over a
36-month period, which means the customer can take 36 months to pay the rebilled amount
pursuant to UCRR 204.01. Given the, substantial rebilling amount and the possibility that
payment might cause a financial hardship for the customer, Idaho Power offered to allow South
Elmore the opportunity to pay over a period of at least 4 years. The Company was unwilling to
reduce or forgive the rebilled amount.
STAFF RECOMMENDATION
Staffwas unable to resolve this complaint informally and South Elmore wishes to pursue
i~s formal complaint. See Rules 23, 25 and', IDAPA 31.01.01.023
, .
024 and .054. Staff
recommends th~lt the Commission issue a summons to Idaho Power and direct the Company to
file a response to the complaint.
COMMISSION DECISION
Does the Commission wish to issue a Summons to Idaho Power, directing an Answer be
filed?
i:udmemos/South Elmore Irrigation.doc
DECISION MEMORANDUM - 2-SEPTEMBER 14, 2007