20071211Pahl direct.pdf

W. MARCUS W. NYE
RANDALL C. BUDGE
JOHN A. BAILEY, JR.
JOHN R. GOODELL
JOHN B. INGElSTROM
DANIEL C. GREEN
BRENT O. ROCHE
KIRK B. HADLEY
FRED J. lEWIS
MICHELL W. BROWN
ERIC l. OLSEN
CONRAD J. AIKEN
RICHARD A. HEARN, M.D.
DAVID E. ALEXANDER
LANE V. ERICKSON
PATRICK N. GEORGE
SCOTT J. SMITH
STEPHEN J. MUHONEN
BRENT L. WHITNG
JUSTIN R. ELLS
JOSHUA D. JOHNSON .
JONATHON S. B~NGTON
DAVE BAGLEY
CAROL TIPPI VOL YN
. THOMAS J. BUDGE
CANDICE M. MCHUGH
LAW OFFICES OF
RACINE OLSON NYE BUDGE & BAILEY
CHARTERED BOISE OFFICE
101 SOUT CAPITOL
BOULEVAR, SUIT 20
BOISE, IDAHO 83702
TELEPHONE: (20 a95-11
FACSIMILE: (20) 433167
201 EAST CENTER STREET
POST OFFICE BOX 1391
POCATELLO, IDAHO 83204.1391
IDA FA OFFICE
477 SHOUP AVENUE
SUITE20
IDAHO FALLS, ID 83
TELEPHONE: [phone]
FACSIMILE: (208) 52109
TELEPHONE [phone]
FACSIMILE [phone]
WY.racnelaw net
COEUR 'D ALNE OFFICE
26 NORTHST
BOULEVARD, SUIT 106
COEUR D'ALENE, 108314
TELEPHONE: (208) "f
SENDER'S E-MIL ADDRESS:el!Xranelaw.ne
AL 0f TO FREE
(877 2i2-8101
LO F. RANE (1917400)WILLI 0. OIN. OF COEL
December 10,2007
Re: IPC.£.07.08 c.øoo0"
Jean Jewell, Secretary
Idaho Public Utilties Commission .
P,O. Box 83720
Boise, Idaho 83720.0074
Dear Jean:
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Enclosed please find the original and nine (9) copies of the Direct Testimony of
Yankel (with exhibits), Pahl, and Mickelsen. We have also enclosed a searchable CD of
the testimony and Yankel's exhibits for the reporter.
Thank you for your assistance and courtesies.
ELO:sab
Enclosures
cc: Service List
ZßUIOEC¡ 0 5: 09
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OFIDAHOPO~RCOMPANFOR )
AUTHORITY TO INCREASE ITS )
RATES AN CHARGES FOR ELECTRIC )
SERVICE TO ELECTRIC CUSTOMERS )
IN TH STATE OF IDAHO )
CASE NO. IPC-E-07-08
IDAHO IRGATION PUMERS
DIRCT TESTIMONY
OF
JEFFRY 1. P AH
DECEMBER i 0, 2007
1 Q.PLEASE STATE YOUR NAM, ADDRESS, AN EMPLOYMNT.
2
3 A.My name is Jeffrey 1. Pahl. I am a farmer in Power and Bingham Counties,
4 Idaho, and I am a member of the Idaho Irrigation Pumpers Association, Inc. My address is
5 1705 Granite, Pocatello, Idaho 83201.
6
7 Q.WHO PROVIES YOUR ELECTRIC SERVICE, HOW LONG
8 HA VB YOU BEEN FARG, AN WHAT CROPS DO YOU CURNTLY
9 RASE?
10
11 A.Idaho Power Company ("IPC") supplies all the electricity for my
12 families' farming operations. I stared farming with my family in the Aberdeen area
13 in 1985. We currently raise potatoes, barley, wheat, and sugar beets.
14
15 Q.WHAT HAS BEEN TH IM ACT TO YOUR FARG
16 OPERATIONS DUE TO THE LOSS OF THE BPA CREDIT?
17
18 A.I estimate that our electricity costs have increased approximately 4%
19 to 6% during the 2007 irrigation season due to the loss of the BP A credit. This
20 unexpected increase, coupled with IPC's proposed 20% increase to the irrigation class
21 and the price increases we face for other energy inputs such as diesel, has and wil put
22 a serious financial strain on my families' farming operations.
23
1 Pah, Dir
Irngators
1 Q.IN WHAT WAYS HAVE YOU TRID TO CONTROL YOUR
2 ELECTRICITY OVERHAD IN TilS ERA OF EVER INCREASING ENERGY
3 COSTS?
4
5 A.In addition to irrigation effciency measures, we currently paricipate
6 in IPC's Peak Rewards Program (hereinafter "Program"). We stared participating in
7 the Program with just one pump in 2005 and currently have five out of our eight
8 irrigation pumps enrolled in the Program. Currently, we have our pumps curtailed
9 one day per week under the Program.
10
11 Q.WH HAVE YOU NOT CHOSEN TO CURTAI YOUR PUMING
12 MORE DAYS PER ~EK OR HAVE ALL YOUR PUMS PARTICIPATE IN
13 THE PROGRA?
14
15 A.Our irrigation system uses all wheel lines. The use of this type of
16 irrigation system is more labor intensive. In order to participate in the Program, we
17 have to keep an employee later on the day we curtail to ensure that the systems restart
18 properly after the curtailment ends at 8:00 p.m. We have not participated in more
19 curtailment due the fact that increased labor costs and the risks of having reduced
20 crop yield and crop quality if suffcient water is not applied have outweighed the
21 financial incentives provided to us if we were to provide more interruption under the
22 Program.
2 Pahl, Dir
Irrigators
1 The pumps that we currently do not enroll in the Program irrigate potatoes and
2 also are used to provide chemigation delivery to these crops. Because of the
3 sensitivity of the potatoes to the proper amount of water and the fact that this is how
4 we apply our fertilzer and other chemicals, we have determined that the amount of
5 the credit received does not justify the economic risks of participation in the Program.
6
7 Q.WOULD YOU PROVIE MORE CURTAIMENT TO IPC UNER
8 THE RIGHT CONDITIONS?
9
10 A Yes. We would provide more curtailment under the Program and/or
1 1 enroll additional pumps if the credits are large enough to offset our increased labor
12 costs and crop related risks. Currently, we have provided as much curtailment as we
13 can justify given the current amount of the curtailment credit.
14
15 Q.WHAT IMACT WIL IPC'S PROPOSED 20% INCREASE IN
16 IRRGATIONRATES HAVE ON YOUR FARG OPERATIONS?
17
18 A IPC's proposed increase to our irrigation rates is a hard pil to
19 swallow. We realize that energy costs are going up, but the proposed increase gives
20 use very limited choices. As long as we are farming, we wil have to purchase
21 electricity to irrigate our crops. Thus, we need programs that let us choose how to
22 provide value to the IPC system such as curtailment under the Program or possibly a
3 Pahl, Dir
Irrigators
1 workable time of day irrigation rate. As such, we can run the cost/benefit analysis
2 and decide which program wil best meet our specific needs.
3
4 Q. DOES THIS CONCLUDE YOUR DIRCT TESTIMONY?
5
6 A. Yes.
4 Pahl, Dir
Irrigators
Eric L. Olsen ISB# 4811
RACIN, OLSON, NYE, BUDGE &
BAILEY, CHARTERED
P.O. Box 1391; 201 E. Center
Pocatello, Idaho 83204-1391
Telephone: [phone]
Fax: [phone]
iumOEC 1 0 p~ 5: 06
Attorneys for Intervenor
Idaho Irrigation Pumpers Association, Inc.
BEFORE TH 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 )STATE OF IDAHO. )
)
CASE NO. IPC-E-07-08
IDAHO IRRIGATION PUMPERS' CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 10th day of December, 2007, I served a true,
correct and complete copy of the Direct Testimony of Anthony J. Yanel, Jeffrey J. Pahl,
and Mark Mickelsen to each of the following, via U.S. Mail postage prepaid, e-mail or
hand delivery:
Jean Jewell (original and 9 and searchable disk)
Idaho Public Utilties Commission
472 W. Washington Street
P.o. Box 83720
Boise, Idaho 83720-0074
E-mail: jean. jewell (gpuc.idaho.gov
U.S. Mail and
via E-mail
Barton L. Kline
Monica B. Moen
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707-0070
E-mail: bkline(gidahopower.com
E-mail: mmoen(gidahopower.com
via E-mail
IDAHO IRRGATION PUMPERS ASSOCIATION INC.'S FOURTH DATA
REQUEST TO IDAHO POWER COMPANY - 1
JohnR. Gale
Vice President, Regulatory Affairs
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707-0070
E-mail: rgale(gidahopower.com
via E-mail
Weldon Stutzma
Donovan Walker
Deputy Attorney Generals
Idaho Public Utilities Commission
472 W. Washington (83702)
P.O. Box 83720
Boise, ID 83720-0074
E-mail: weldon. stutzman (gpuc.idaho. gov
donovan. walker (gpuc.idaho. gov
via E-mail
Peter J. Richardson, Esq.
Richardson & O'Leary
515 N. 27th Street
P.O. Box 7218
Boise, ID 83702
E-mail: peter(grichardsonandoleary.com
via E-mail
Don Reading
Ben Johnson Associates
6070 Hil Road
Boise,ID 83703
E-mail: dreading(gmindspring.com
via E-mail
Anthony Yankel
29814 Lake Road
Bay Vilage, OH 44140
E-mail: tony(gyankel.net
via E-mail
Michael L. Kurtz, Esq.
Kurt J. Boehm Esq.
Boehm Kurtz & Lowr
36 E. Seventh Street, Suite 1510
Cincinati, Ohio 45202
E-mail: mkurtz(gFKLlawfirm.com
E-mail: kboehm(gBKLlawfirm.com
via E-mail
Conley E. Ward
Michael C. Creamer
Givens Pursley LLP
via E-mail
IDAHO IRRGATION PUMPERS ASSOCIATION INC.'S FOURTH DATA
REQUEST TO IDAHO POWER COMPAN - 2
~
601 W. Banock Street
P.O. Box 2720
Boise, Idaho 83701-2720
E-mail: cew€lgivenspursley.com
LotH. Cooke
Acting Assistant General Counsel
United States Deparment of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585
E-mail: Lot.cooke€lhq.doe.gov
via E-mail
Dennis Goins
Potomac Management Group
5801 Westchester Street
P.O. Box 30225
Alexander, VA 22310-1149
E-mail: DGoinsPMG€lcox.net
via E-mail
Arhur Perr Bruder
United States Deparment of Energy
Offce of the General Counsel
1000 Independence Ave. S.W.
Washington, D.C. 20585
E-mail: Arthur.Bruder€l HO.doe. gov
via E-mail
Dennis E. Peseau, Ph.D.
Utilty Resources, Inc.
1500 Liberty Street, Suite 250
Salem, Oregon 97302
E-mail: dpeseau€lexcit.com
via E-mail
Dale Swan
Exeter Associates, Inc.
5565 Sterrett Place Suite 310
Columbia, Maryland 21044
E-mail: dswan€lexeterassociates.com
via E-mail
~..J~ERî~ ~
IDAHO IRRIGATION PUMPERS ASSOCIATION INC.'S FOURTH DATA
REQUEST TO IDAHO POWER COMPAN - 3