20080528final_order_no_30558.pdf

Office of the Secretary
Service Date
May 28, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO MODIFY ITS RULE H
CHARGES AND CREDITS RELATED TO
DISTRIBUTION LINE INST ALLA TIONS
AND UNDERGROUND SERVICE
ATTACHMENTS.
ORDER NO. 30558
CASE NO. IPC-08-
On March 10, 2008, Idaho Power Company filed an Application requesting
modification of its Rule H tariff charges and credits for installing distribution lines and
underground service to customers ' premises. Specifically, the Company proposed to update
Section 4(b) concerning Underground Service Attachment Charges. On April 8 , 2008, the
Commission issued a Notice of Application, set a deadline for intervention, and suspended the
proposed effective date of May 1 , 2008. Order No. 30525 at 3-4. No persons petitioned to
intervene.Thereafter, the Commission issued a Notice of Modified Procedure and set
comment deadline of May 19, 2008. Order No. 30541. Only the Staff filed comments. After
reviewing the Application and comments, we approve the proposed changes to Rule H.
THE APPLICATION
In its Application, the Company notes that the last major change to its charges and
credits (specific to this section of its Rule H tariff) occurred in February 1997. Since that time
the Company has observed an increase in the construction of larger-sized residential properties
within its service territory that require a larger-sized conductor than the traditional "1/0"
underground cable. The current tariff charges and credits are based on use ofthe 1/0 cable size.
Idaho Power s current Rule H tariff assesses additional charges for customers who
take service under Schedules 1 , 5, or 7.1 These customers must pay for underground service
attachments. Charges in Section 4(b) are divided into two types: a "Base" Charge and a
Distance" Charge (priced per foot based on the length of the installation).
The current method used to calculate the Distance Charge compares the cost
difference between installing overhead and underground service based on a single service-size
1 Schedules: I - Residential Service; 4 - Residential Energy Watch (optional); 5 - Residential Time-of-Day
(optional); 7 - Small General Service.
ORDER NO. 30558
(1/0 cable at $5.05 per foot). Customers receive standard overhead service from the Company at
no charge, but are charged an added cost differential when installing underground service. The
Company proposes a Distance Charge calculation using the same method (overhead vs.
underground), but with an additional assessment dependent on the size of the wire ($6.90 per
foot with 1/0 cable, $7.50 per foot with 4/0 cable, and $9.60 per foot with 350 cable).
Idaho Power also requests a change to the discount in Distance Charges for
customers who provide their own trenching. The current charge for wire in customer-provided
trenching is $1.05 per foot. The existing tariff does not distinguish between types of wire. The
proposed charges are $2.15 per foot with 1/0 cable, $3.60 per foot with 4/0 cable, and $4.65 per
foot with 350 cable.
The Company s Base Charge is currently $30 for service from existing underground
facilities, and $255 for service from overhead facilities due to the cost of the 2" conduit riser.
The Company proposes to increase the Base Charge to $40 for service for existing underground
facilities and $395 for service requiring a 2" riser. The Company also proposes to add a charge
for a 3" riser option to address the larger-sized services not previously envisioned when the tariff
was created.
THE COMMENTS
Staff notes that it has been 11 years since Idaho Power last updated its charges and
credits under Section 4(b) of its Rule H tariff. Staff agrees with the Company that increased
costs should be reflected in the tariff so that new customers pay their fair share of the costs for
providing new service. Indeed, Staff recommends that the Company file more frequently in
order to keep line extension costs current.
Staff reviewed in detail the Company s assumptions and cost estimates in addition to
meeting with Company personnel to review Idaho Power s computerized cost estimation system.
Staff is satisfied that the revised charges proposed by the Company are reasonable. Staff also
supports the Company s proposal to further refine line extension charges based on conductor
size. By offering multiple service sizes the Company can more accurately match the charges a
customer pays with the actual costs incurred to install the service.
Accordingly, Staff recommends approval of the Company s Application to amend
line extension charges and credits in its Rule H tariff. Staff further recommends an effective date
of June 1 , 2008.
ORDER NO. 30558
COMMISSION FINDINGS
Having fully reviewed the Application and comments in this proceeding, we approve
Idaho Power Company s Application for authority to modify its Rule H charges and credits
encompassed in Section 4(b). In the future, the Company should review its installation costs
more frequently to keep line extension costs current.
Based upon our review and the absence of any objection, we find that the proposed
charges and credits are fair, just, and reasonable. We further find it reasonable to base the
charges for installing distribution lines upon the actual wire size (and cost) of the facilities.
Finally, we find that the changes in Rule H should become effective June 1 2008.
ORDER
IT IS HEREBY ORDERED that Idaho Power Company s Application to modify its
Rule H tariff charges and credits in Section 4(b) is granted.
IT IS FURTHER ORDERED that the charges and credits authorized by this Order
become effective for services rendered on or after June 1 , 2008.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30558
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ,;2,
day of May 2008.
,'"'
SIDENT
MARSHA H. SMITH, COMMISSIONER
JI . KEMPTON MMISSIONER
ATTEST:
O:IPC-O8-ks3
ORDER NO. 30558