20080826Decision Memo.pdf

DECISION MEMORAUM
TO:COMMSSIONER REDFORD
COMMSSIONER SMITH
COMMSSIONER KEMPTON
COMMSSION SECRETARY
LEGAL
WORKNG FILE
FROM:NANCY HYTON
DATE:AUGUST 22, 2008
RE:FORM COMPLAINT OF JONATHA GIBBS
On August 14,2008, the Commission received a "formal" complait from Jonathan Gibbs
against Idaho Power Company. The customer had Idaho Power install new underground servce
to a cabin in a new subdivision in New Meadows. The initial quote provided by Idaho Power for
the installation included a provision for $4,000 in extra costs if the Company encounters
"unusual" trenchig conditions. As noted below, the Company's trenching contractor ran into
"rock conditions" and charged Mr. Gibbs accordingly. In his informal complait, Mr. Gibbs
claims that diggig through rock is not unusual conditions. Jonathan Gibbs was unsatisfied with
the outcome of the informal procedures to resolve his complaint and has filed this formal
complaint.
BACKGROUND
The customer paid $6,383 in advance of constrction. The quote included $4,000 if the
Company experienced unusual conditions. Idaho Power charges in Rule H are based on average
costs encountered in "normal" conditions. If "unusual" conditions are not encountered, the
customer is refuded the amount included in the quote. As part ofthe cost quote (Attachment A),
the customer signed an Unusual Conditions Acknowledgement on May 20,2008. Par of the
document states that "These conditions may include but are not limited to ... rock digging."
Idaho Power used an outside contractor for the trenchig. The total lengt of the trench
was 180 feet, which included 160 feet of rocky trench at $24.49 per foot. The total charge for the
unusual conditions was $3,918.40. Mr. Gibbs was refuded the balance of$81.60. Mr. Gibbs
DECISION MEMORAUM - 1 -AUGUST 22, 2008
does not agree with the amount of the refud. He contends that digging though rock is not
unusual for that area. Furermore, he maitains that he was not offered the option to trench
himself and that if he had used his own contractor, the charge would have been substantially less,
approximately $1,500.
STAFF RECOMMNDATION
Jonathan Gibbs was not satisfied with the outcome of the inormal complaint.
Consequently, he filed a formal complaint. (Attchment B) See Rules 23, 25 and 54, IDAPA
31.01.01.023, .024 and .054. Sta recommends that the Commission issue a Sumons to Idaho
Power Company and directs the Company to file a response to the issues raised in the còmplait.
COMMISSION DECISION
Does the Commission wish to accept Jonath Gibbs' formal complaint? Does the
Commission wish to issue a Summons?
'-1 rl /, , /-r7/~
Nancy Hylton
í:ConsmlJonatan Gibbs fonnal complaint
DECISION MEMORADUM - 2-AUGUST 22, 2008
07/28/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 03/05
!N11W~PORt'
An IUACORP CQmpany
CUSTOMER COST QUOTE
IDAHO
Customer or Proje Name:
GIBBS. JONATHAN-URD LINE EXT FROM $ECTER DD4 TO NE
Prepaid Fee
Design Number:
0000071192
Credit
1. L.ine In:stllllitionlUpgrade COIbi
2. Company Betterment
3. Une Installaton Allonces
a. CU$tomer cash Allowance
b. Terminal Facllilles Allownce
C. Salvage TtOable. Creit
61s1
Wo, Orer #:
27284188
Debl\
4,840J
Totals
4. Line Installation Credit (Cusromor Pl'öod1l'ch)
5. VGSmd Inmre Woi Order fl
e. BanI( Letter of Credit (for Unusual ConditioJl OYr $1 0.000)
7. Unusu;il ConditIons
I 01
CC
(Umited to 5 yers or" additIonai applicats) I
I
~8CO.
1591
o
I 01
i 01
1.83
8. Net Construction Cost
9. Net Vuted OR Refundable ,Construction Cost
10. Constrction Cost Not Avallablo for Vesting or Round
11. RIght of Way Permits (NSl'
14 BiI¡;blé englnééring Charges (NSR) (11 Hrs (g $50 pe Hr)
5,8331
4,0001
1,831
01
5501
01
01
01
: : ql
01
5501
13. UndergfQ';nd Servi~e Cilrge (NSR)
14. Relocation or Removl ChIrg (NSR)
a. Relocation or removl with ne load. (412)
b. RelocUon or removal with NO new load (415)
c. Non-Taxable Salvage Credit on Relocon or Remval
15. Oter Charga
is. r:eedèl Chargo
17. Sub.Total Non.Refundable Charges
01
1lt Englnoorlng Feo
19. Right o'Way Pormit (NSR)
20. Tempor;ry Service Charge (NSR)
21. Total Priipaid Cusomiir Charges
L ',:,", ,Wi., "', '...'''1,:::; :::,:;:.i::;::~i':;;i
()~;;G4Ü\;~fi
i '"V,"" ."t" '~¡,'91.. r,:~.:,w:~.,:,~~...:~~:
$3,007/
$fI,3G1
$8,383J id
22. IdahoPowør Co. ContributIon & Bank Lottr of erolt
23; Totl Work Order Charges
24. Total Customer Paymnt Due (lne a + Un 17)
No1B:
~ Ths wr quotation shall be binding on the Company for a perod of t;iÌd d&y (l) frm the da bé0w indicated.
Subject to changes in Infon proded by the Customer or Changes in th Companys abilit to obtan satisfa
righisf-way orto coply wi govermetal regulatlns, Incuding but not limlieci to tne rules, reUlaiions, and larl oune fdatio
Public Utilities Comssion. Th Customer must make payment of th Quote amunt not les than thirt (30) days prior to the
start of cotructon. but the Company does not reent that constrçlon will commen within gO days of I't of pamlt.
The start of COstrlon WILL be subjec to the Comnys abilit to obtaIn the nesary lallr, matenais and equipment.l'ulItomer Signature Ds,0. . .~ -.? f Á , ..-:%¿: - b Z'
IPC Reprentie
Attchment A
Decision Memorandum
Hylton, N.
8/22/08 Page 1 of 4
0l/28/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 05/05
Ciwmer or Project Name:
GIBBS, JONATHAN.URD LINE EXT FROM SECTER DD4 TO HE
Deigrí Numbr:
000071192
Work Order #:
27284188
Brl.1"1l~~
Unusual Conditions Acknowledgement
Unusual Conditions are constrction conditions not normally encountered.
These conditions mayinclude, but are not limited to: frost, landscape
replacement, road compacon, pavement replacement, chip-sealing, rock
diggig~ borig, nonstandard facilties or constrction practces, and other than
'ãvailable voltage requiements.
I have read arid understand the above definition of Unusual
Conditions as set forth in Idaho Power Company's Line Installation
tariff; Rule H. I further understand that Idaho Power Company will
determine the type and extent of the Unusual Conditions encountered.
Unusual Conditions charged for on the Customer Cost Quote sheet, but
not encountered, wil be refunded to the Customer by Idaho Power
Company after the completion of construction.
Signed:~øZ y:~
~. . .. Cusliir Sigature
Date:.5-.z~.. cJff
Ãttachment A
Decision Memorandum
Hylton, N.
8/22/08 Page 2 of 4
01128/2008 14: 53 2083523955 JONATHAN GIBBS PAGE 04/05
. '\
!!DU~~
An IDACORP caminv
Idaho Power Company
Servce Request
hge;1
Date '/lllOB
S~L"Li: ReudtNuwber 0049395
. GIBBS, JONATIA.N-UR LIN txl' FROM SECT DD4 TO NEW FM
Work Order Number: in84188
Reques Type; lts
RatSch: 1
Reply.By:
Feeer NWMS41A
Sercc 1,cation: ~ MEADow ID 836M
Reqd in ScriceDate:l0/17ll007
Planing CenterlTcan: MC CALL
Eng Hours: 0011
Eng fcc: Amunt (Att 98): $*.00
Eng Fe. ,Aunt ( Att 16):
Eng Fee Scrvce Agemnt No:
Eng Feii Servce Agt Da~;
Customc:rNo; 111"444?i
CODtatt ))mil:
iSZR JONA'l GI.llS
950:i SCORPIO ST" BOIS ID 33709
3Q-318941i6
CU JONA'I GIBBS
,SO SCORPIO ST" BOlSl m 337O
36i-~(íI8'-412
irco FUNT 6379
"
Attut lutonntln
RESCOM
Serce Voltage:
No. Of Phass;
KW Motor Load
Lages Motor:
1 Phae KW Dem:
:l Phae K.W Demd:
Connec KWLolid: 25
Ctin~ia1Dtposit Amunt:
No. of Metlls: i
Mtr.Lo:
CtLoc:
Pr OIIlG: UG
Servce OHlG: UG
Srv. Ow:
Pil Amp Size: ZOo
~
NE PRIY LIN EXTENION FROM EXTIG SEcrER TO NEW PADMOUN TRFORMR
AN UNERGROUN EAEM IS NEED FROM CUTOME TO ACCOMPUSH LIN EXTON
UNERGROUN SERVICE CHGES IS NOT INCLUDED IN THS WORK ORDER
CUSTOM TO PROVipE 3" CONPinT FOR Ft UNERGROUN SERVICE.
¡peO WlL BE PIGGlNGALONG EDE OF CUSTOME DRIWAY, BUT DiuviWA Y IS NOT
TH YET, SO NO PROVISIONS TO REAI DRIWAY is IN THS WORK ORDER.
I understand that the inoimation provided above is accur to the best of-my knowledge. 'Chage to load; voltae; location; et.
nm rest in additional engeering chares. .
2~(~ MP f~¡l~2/14-Ç1ient Sig~ture Date ~
Façilty Rep. Signnie
S/it./g
i I
Date
Attachment A
Decision Memorandumil
Hylton, N.
R/22/08 Pai;æ 3 of 4
07/28/2008 14: 53
'_ 'i-
"~11l· POR.
An IOAcòlip C;OI"~$"V
Project Name:
2083523955 JONATHAN GIBBS PAGE 05/05
Memorandum of Understanding
New Residence
Work Order Number: 27284188
The quoted price and credits include these requirements for trench baokfill and compaction and the final grade.
1. Standard
Compaction
2. High (or 95%)
Compaction
3. Final Grade
OLiL. 040 (8/
Standard compaction is required in all areas that do not reuire high compaction.
For standard compaction, backfil with tte native soil and "wheel-roll" the trench. Ifthe
soil is "loamy" or does not compact well, the spoils must be hauled off and replaced with
3/4" road mix up to 12" of the surfce. Use native backfill for the top 12" of the trench.
J 200 I Standard compaction fotage
Note: The grantor-of the riht-of-way may require high compaction in areas that
are not under a paved surface or rod but stil within the right-ot-way.
High compacton is required in areas where the trench wil be under;
· A roadway, alley. driveway, orparking lot (whether paved or unpaved).
. A paved surface. r
+ Where the grantor of the right-of-way reuires high compacton.
For high compacton, backfll the trench in 12" lifs with 3/4" road mix or "pit run" ànd
compact each lift with a "wacket' or other similar compaction device. Native soil is not
acceptable as a bacKfll material for high compacton and must be hauled off.
i I High compaction footage
We understand that as of the above name project will beready for facilties to be installed by Idaho Power. -
All roadways and cable routes must have all grading and subgraing completed by this
date. The project must be properly referenced and have grade stakes installed as might
be necessary to establish proper elevations and burial depths for Idaho Power facilties.
(MTR lYPE, OH OR UGSRV, ETC.) (PLEASE CHECK)
The customer will be responsible for the total cost of any needed relocation, repair, or
damage to Idaho Power facilties that results frm any subsequent changes in property
lines, lot lines, elevations, grades, excavations. or profiles causing improper locations or
burial depths of above-round equipment, below-ground equipment, cable, or conduit.
This Memorandum of Understanding is accepted by:
'\-i'~~~c ~"$ Signature
S;KØLP8Dare i~Idaho Power Representaive's Signature
slr~/i
Date I /
Attachment A
Decision Memorandum
Hylton, N.
8/22/08 Page 4 of 4
'6¡t1
Ne-V'''i
August 12,2008 '4 l'~._,
PUC Secretar and Commission
PUC
Po Box 83720
Boise, Id 83720-0074
.AUG l4
~l4 B: 10f-.\tJ "' 1
iDt,;U11"1' ''1\' r: f.vIILIl....
I would like to appeal the charge made by Idaho Power for Unusual Conditions on the
installation of the transformer at our home site at 3742 Van Dorn drve in New Meadows.
I filed a complaint with Nancy at the PUC office and was told there was nothng she
could do for me. A copy of tht letter is enclosed.
I know you have regulated amounts that Idaho Power can charge for the installation of
the transformers but it appears that they have a loophole in the regulations when it comes
to Unusual Conditions. Nancy told me that I signed the unusual conditions form and it
says that they determine the amount. They are the rate setter, judge and jury, no
reguation and nobody to account to. I asked Idaho Power to give me the breakdown of
the costs of the unusual conditions and all they told me was they had to dig though 160
feet of Solid Rock. I would like to see what they paid the ouside contractor for that job. It
seems to me that they should have to accoun't to someone for charges they make to the
public. I agree that I should be charged for legitimate charges that are encountered in my
installation but they should not be arbitrar. Can they charge $4000, $6000, $10000, is
there a limt?
Thans for reviewing my complaint & appeal.
~/;k£l~
Jonathan Gibbs
9502 Scorpio
Boise, Id 83709
Phone [phone]
Attachment B
Decision Memorandum
Hylton, N.
8/22/08 Page 1 of 2
July 28, 2008
Nancy
PUC
PO Box 83720
Boise, Id 83720-0074
This is a complaint for the charge by Idaho Power for Unusual Conditions on our new
home site at 3742 Van Dorm drive tLot 2 Van Dom Estates).
We applied for a transformer for our new home which sets back in about 275 feet from
the road where the power is available, so the transformer had to be located within 150
feet of our house. We contacted Flint McDaniel at the McCall Idaho Power offce and
filled out the forms necessar to get the job done. When I came to the form on Unusua
Conditions I asked Flmt if we could dig the trench to put the lme il ourselves and he told
me no, that was par of Idaho Powers revenue business.
When Idaho Power came. to put the transformer in, the work was done by an outside
contractor. They stared digging about 9:30 and all the installation was completed by
5 :00 PM.. When you dig in New Meadows you hit fractured rock at about one foot six
inches and everyone that works in the area is famliar with the conditions. The crew
doing the digging had not brought their smaller backhoe bucket which according to the
operator would have made the digging a little easier and quicker. They did encounter
some solid rock in places which slowed them down somewhat. No hamer, blasting or
additional equipment was needed to complete the job. My excavator (Mr.Thueson) was
workig that same day and he indicated that ifhe had done the digging it would have,
been about $1,500.00. He dug my 80 foot 4 feet deep water line from the house to the
well in less than 2 hours.
Idaho Power told me at the end of job I would get a detail of the Unusual Conditions
charges and a refud of any unused deposit. Six weeks after completion I had not
received anything from Idaho Power so I called the offce and was told that I would get a
call from the McCall office. One week later afer no word I called again, then I stopped at
the McCall office and was told my $81.00 check was in the maiL. I received the check but
no explanation of the charges. .
I expected a reasonable charge for Unusua Conditions, but $3,919.00 is not reasonable.
Yours try,
Jonathan Gibbs
9502 Scorpio
Boise, Id 83709
Attaclient B
Decision Memorandum
Hylton, N.
8/22/08. Page 2 of 2