20081121final_order_no_30682.pdf

Office of the Secretary
Service Date
November 21, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
JONATHAN GIBBS,
CASE NO. IPC-08-
COMPLAINANT,
ORDER NO. 30682
IDAHO POWER COMPANY,
RESPONDENT.
On August 2008, the Commission received a complaint from Jonathan Gibbs
against Idaho Power Company. At his request, Idaho Power installed underground service to
Mr. Gibbs' cabin in a new subdivision in New Meadows. Idaho Power provided a Customer
Cost Quote that included $4 000 to cover costs incurred for encountering "unusual conditions" in
digging the required service trench. According to Mr. Gibbs' complaint , Idaho Power did not
provide a "breakdown of the costs of the unusual conditions " nor identify the amount paid to the
trenching contractor. Several weeks after the job was completed, Mr. Gibbs received a refund
check for $81.60, but "no explanation of the charges." Mr. Gibbs also asserted he could have
hired a contractor to complete the trenching for significantly less than the amount paid by Idaho
Power.
Idaho Power filed a response to the complaint on September 23 , 2008. According to
Idaho Power, the cost quote provided to Mr. Gibbs included $4 000 for unusual conditions
because the Company anticipated that rock would be encountered in digging the trench. The
Company s contractor did trench through 160 feet of rock and billed Idaho Power $3 918.40 for
this unusual condition. Idaho Power also asserted its representative "may have discouraged Mr.
Gibbs from providing his own primary trenching, but Mr. Gibbs was not told he could not
provide his own primary trench." Idaho Power Answer p. 7.
Staff notified the Commission on October 6, 2008 that Mr. Gibbs did not request a
hearing to present evidence or oral argument, and instead had decided to present his case on the
pleadings filed with the Commission. Accordingly, we have reviewed Mr. Gibbs' complaint and
Idaho Power s answer, including attachments, and determined that Mr. Gibbs' complaint should
be dismissed.
ORDER NO. 30682
Mr. Gibbs signed the Customer Cost Quote provided by Idaho Power on May 20
2008, prior to commencement of the trenching. Mr. Gibbs paid the quoted amount of $6 383 in
advance of construction, which included $4 000 if the Company experienced unusual conditions.
On the same day Mr. Gibbs signed an Unusual Conditions Acknowledgement, identifying
unusual conditions as construction conditions not normally encountered, and included rock
digging as one example. The unusual conditions definition is from Idaho Power s Rule H tariff
that provides terms for line installation charges. The charges in Rule H are based on average
costs encountered in normal conditions. If unusual conditions are not encountered, the customer
is refunded the amount included in the quote for unusual conditions. The Unusual Conditions
Acknowledgment specifically states that unusual conditions "may include but are not limited to
. .. rock digging.
Idaho Power used an outside contractor for the trenching. The total length of the
trench was 180 feet that included 160 feet of rocky trench at $24.49 per foot. The total charge
for the unusual conditions was $3 918.40, and Mr. Gibbs was refunded the balance of $81.60.
Although Mr. Gibbs contends that digging through rock is not unusual for that area, he signed an
acknowledgement that rock digging was considered unusual under Idaho Power s Rule H tariff
requiring additional expense. Idaho Power did, in fact, pay its contractor $3 918.40 for rock
digging, which was properly charged against the unusual conditions fee collected from Mr.
Gibbs.
When Mr. Gibbs filed his complaint on August 12, 2008 , he apparently had not
received information from Idaho Power about the specific costs incurred in digging his service
trench. The complaint states that "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 through 160 feet of solid rock. I
would like to see what they paid the outside contractor for that job." Idaho Power provided that
information in its answer, but should have provided it directly to Mr. Gibbs in a more timely
manner.
Finally, although Mr. Gibbs initially stated that he was not told he could provide his
own trenching, he did not press that as part of his complaint filed on August 12, 2008. Idaho
Power presented evidence that the rock digging expense was reasonable and properly charged by
the trenching contractor. On the record in this case, we find that Mr. Gibbs ' complaint should be
dismissed.
ORDER NO. 30682
ORDER
IT IS HEREBY ORDERED that the complaint filed by Jonathan Gibbs against Idaho
Power Company on August 12, 2008 is hereby dismissed.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d..
.s+
day of November 2008.
~~SIDENT
OWL
MARSHA H. SMITH, COMMISSIONER
ft. 1::~JI D. KEMPTON COM ISSIONER
ATTEST:
Co ISSlon Secretary
O:IPC-08-18 ws
ORDER NO. 30682