The URL can be used to link to this page

Home My WebLink About20090102Application for Intervenor Funding.pdfBrad M. Purdy Attorney at Law BarNo. 3472 2019 N. 17th S1. Boise, ID. 83702 (208) 384-1299 FAX: (208) 384-8511 bmpurdyrfhotmail.com Attorney for Applicant Community Action Partnership Association of Idaho REC 2009 JAN -2 PM 2: 38 IN THE MATTER OF THE APPLICATION OF ) OF IDAHO POWER COMPANY FOR AUTHORITY ) TO INCREASE ITS RATES AND CHARGES ) FOR ELECTRIC SERVICD TO ELECTRIC ) CUSTOMERS IN THE STATE OF IDAHO ) ) ) ) CASE NO. IPC-E-08-10 COMMUITY ACTION PARTNRSHIP ASSOC- TIATION OF IDAHO'S APPLICATION FOR INTER- VENOR FUNING COMES NOW, Applicant Community Action Partnership Association ofIdaho (CAPAI) and, pursuant to Idaho Code § 61-617A and Rules 161-165 ofth~ Commission's Rules of Procedure, IDAPA 31.01.01, petitions this Commission for an award of intervenor funding. Rule 161 Requirements Idaho Power Company is a regulated, electric public utilty with gross Idaho intrastate, annual revenues exceeding three milion, five hundred thousand dollars ($3,500,000.00). (01) Itemized list of Expenses Consistent with Rule 162(01) of the Commission's Rules of Procedure, an itemized list of all expenses incurred by CAP AI in this proceeding is attached hereto as Exhibit "A." CAPAI APPLICATION FOR INTERVENOR FUNDING Page 1 (02) Statement of Proposed Findings The proposed findings and recommendations of CAP AI are set forth in the direct, prefied testimony of Teri Ottens. In summary, CAPAI initially proposes that the Commission consider the dire state of poverty in which a significant percentage of Idaho Power's customers live and the effect that any significant rate increase wil have on these already overly burdened customers. Second, CAP AI proposes that Idaho Power extend its two-tiered residential rate to cover the entire year, as proposed by the Company, but proposes that the first tier be increased to 850 kWh, as opposed to 600 kWh proposed by Idaho Power. CAPAI asserts that unless the first tier usage level is set relatively close to what is non-discretionary usage for the typical residential customer, then the strength of the price signal sent by a properly structured tiered rate is lost. Based on Idaho Power's own testimony, basic usage, without heating or cooling, ranges upward to 850 kWh per month according to the U.S. Department of Housing and Urban Development. Direct Testimony of Courtney Waites, p. 9. Of course, in setting the first tier usage level, the Commission is not prohibited from taking into consideration the fact that that there is some degree of need for cooling or heating nearly every month out of the year. Third, CAP AI proposes that the Company increase its low-income weatherization ("WAQC") funding level over a three year period beginning in program year 2010. Specifically, CAPAI witness Teri Ottens proposes that funding levels for W AQC be set as follows: 2010 - $1.5 milion 2011 - $1.75 milion CAPAI APPLICATION FOR INTERVENOR FUNDING Page 2 2012 - $2.05 milion Fourth, CAP AI proposes that Idaho Power fund an energy conservation education program specifically targeted to low-income customers such as that recently adopted by AVISTA Corporation (Case No. AVU-E-08-01). CAPAI proposes that Idaho Power fund $25,000 for each Community Action Agency operating in the Company's service territory for a total funding of$125,000. This program would fund personnel and materials to Community Action Agencies to provide conservation education to all Idaho Power customers who apply for LIHEAP funding. Thus, it would result in a productive face-to-face explanation of how customers of extremely limited means can reduce their energy consumption. Customers seeking LIHEAP assistance often do not have the ability to implement energy conservation measures or alter their habits to reduce their consumption due to their dire financial condition. Indeed, customers who do not have the money to pay their utility bils might not even open the bil itself and wil never see the traditional informational "stuffers" currently provided by Idaho Power. Thus, low-income conservation education, as proposed by CAPAI, presents yet another cost effective resource opportunity for the Company. Finally, CAP AI proposes that Idaho Power provide monthly arrearage reports to all interested parties so that CAP AI can monitor trends, and identify possible causes and solutions regarding the problem of arrearages. PacifiCorp, (DBA, Rocky Mountain Power) currently provides these arrearage reports. (03) Statement Showing Costs CAP AI submits that the costs and fees incurred in this case, and set forth in Exhibit "A," are reasonable in amount, particularly in light of the fact that the Company's CAPAI APPLICATION FOR INTERVENOR FUNDING Page 3 application in this matter was fully litigated, and that there were roughly 34 witnesses, with exhibits, four days of technical hearing, and nine parties who actively participated in the technical portion of this proceeding. Although Ms. Teri Ottens undoubtedly qualifies as an expert in the field of energy issues, as they affect low-income customers, CAP AI is not seeking reimbursement for Ms. Ottens' work, or that of any other representative or agent of CAP AI. CAP AI has historically made a concerted effort to minimize its expenses and maximize the effect that its efforts have in proceedings before this Commission. Thus, CAP AI submits that the time expended and expenses incurred in this case were reasonable. (04) Explanation of Cost Statement CAP AI is a non-profit corporation overseeing a number of agencies who fight the causes and conditions of poverty throughout Idaho. CAPAI's funding for any given effort might come from a different variety of sources, including governmental. Many of those funding sources, however, are unpredictable and impose conditions or limitations on the scope and nature of work eligible for funding. CAP AI, therefore, has relatively little "discretionary" funds available and what little exists must cover a variety of competing projects, including, as one example, participation in Case No. GNR-U-08-01 (Commission- initiated Energy Affordability Case) for which intervenor funding is unavailable. CAPAI has incurred considerable expense participating in this very important proceeding. There are numerous other examples of projects worthy of CAP AI's involvement but for which funding is unavailable. Thus, were it not for the availability of intervenor funds and past awards by this Commission, CAP AI would not be able to participate in cases before this Commission CAPAI APPLICATION FOR INTERVENOR FUNDING Page 4 leaving a gap not likely to be filled by any other entity. Even with intervenor funding, participation in Commission cases constitutes a significant financial hardship because CAP AI must pay its expenses as they are incurred, not if and when intervenor funding becomes available. (05) Statement of Difference Although Staff provided valuable input regarding the energy burden that low income customers carry, CAP AI's specific proposed findings and recommendations in this case differ materially from those of Staff. For example, Staff proposes a three-tiered residential rate with a first tier consumption level of 1000 kWh, as opposed to CAPAI's proposed two-tiered rate with a first tier of 600 kWh. Second, although Staff identifies Idaho Power's WAQC program as a beneficial resource for low-income customers, it made no specific proposal to alter the funding level ofWAQC as did CAPAI. Similarly, Staff did not make a proposal to implement a low-income conservation education program. Finally, Staff did not propose that Idaho Power provide monthly arrearage report studies as proposed by CAP AI. 06) Statement of Recommendation CAPAI has long submitted that providing assistance to a utility's low-income customers provides system-wide benefits and, therefore, the proposals and recommendations made by CAP AI are "of concern to the general body of utilty users or consumers." A good example comes from a statement made by Idaho Power Vice- CAPAI APPLICATION FOR INTERVENOR FUNDING Page 5 President of Regulatory Affairs John R. Gale, referring to the Company's WAQC program for which CAPAI proposes increased funding: "The Company has calculated that a $100 investment in WAQC can return more than $200 in present value customer benefits in future bil savings and over $300 in system benefits because of the selection of a lower cost resource option." See, Rebuttal Testimony of John R. Gale, pp. 36-37, Emphasis added. Indeed, it is intuitive that a utilty with a relatively low number of disconnections and reconnections, caused by customers' inability to pay their bils, is a financially healthier utility with commensurate benefits to all ratepayers. Assisting those customers who are financially at the margin of being able to remain on the system provides more than just social value to a utility's other customers. There are also tangible, system-wide benefits to avoiding or reducing bad debts, arrearages, and costs associated with disconnections and reconnections which are passed on to other customers. (07) Statement Showing Class of Customer To the extent that CAP AI represents a specific Idaho Power customer class, it is the residential class. RESPECTFULLY SUBMITTED, this 2nd day of January, 2009. /3c& )Brad M. Purdy ~~)-,./':;;.;.:;.~"~../ CAPAI APPLICATION FOR INTERVENOR FUNDING Page 6 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 2nd day of January, 2009, I caused to be served the foregoing COMMUNITY ACTION PARTNERSHIP ASSOCIATION OF IDAHO'S APPLICATION FOR INTERVENOR FUNDING on the following via-electronic transmission and U.S. postage, first class. Weldon Stutzman Neil Price Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington St. Boise, ID 83702 weldon.stutzmanrfpuc.idaho.gov BARTON L. KLINE, ISB #1526 LISA D. NORDSTROM, ISB #5733 DONOVAN E. WALKER, ISB #5921 Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 Facsimile: (208) 388-6936 bkline(qidahopower .com lnordstrom(qidahopower .com dwalkerrfidahopower .com John R. Gale Vice President, Regulatory Affairs Idaho Power Company P.O. Box 70 Boise, Idaho 83707 rgalerfidahopower.com Peter J. Richardson Richardson & O'Leary Industrial Customers of Idaho Power 515 N. 27th St P.O. Box 7218 Boise, Idaho 83702 Telephone: (208) 938-7901 Fax: (208) 938-7904 peterrfrichardsonan do leary. com Dr. Don Reading CAPAI APPLICATION FOR INTERVENOR FUNDING Page 7 6070 Hil Road Boise, Idaho 83703 (208) 342-1700 Tel (208) 384-1511 Fax dreadingrfmindsp ring. com Randall C. Budge Eric L. Olsen Racine, Olson, Nye, Budge & Bailey, Chartered P.O. Box 1391; 201 E. Center Pocatello, Idaho 83204-1391 Telephone: (208) 232-6101 Fax: (208) 232-6109 rc brfracinelaw .net elorfracinelaw.net Anthony Yankel 29814 Lake Road Bay Vilage, Ohio 44140 Fax: 440-808-1450 tonyrfyankel.net Michael L. Kurtz, Esq. Kurt J. Boehm, Esq. BOEHM, KUTZ & LOWRY 36 East Seventh Street, Suite 1510 Cincinnati, Ohio 45202 Telephone: 513-421-2255 Facsimile: 513-421-2764 E-mail: mkurtzrfBKLlawfrm.com kboehm(qBKLlawfrm.com Kevin Higgins Energy Strategies, LLC Parkside Towers 215 South State Street, Suite 200 Salt Lake City, Uta 84111 E-mail: khigginsrfenergystrat.com Conley E. Ward Givens Pursley, LLP 601 W. Bannock St. P.O. Box 2720 Boise,ID 83701-2720 cewrfgivenspursley. com CAPAI APPLICATION FOR INTERVENOR FUNDING Page 8 . . Dennis Peseau, PhD Utilty Resources, Inc. 1500 Liberty St. SE, Suite 250 Salem, OR 97302 dennytemprfyahoo.com Arthur Bruder Offce of General Counsel U.S. Department of Energy 1000 Independence Ave., SW Washington DC, 20585 Arthur.B ruderrfhg.doe.gov Ken Miler Snake River Allance P.O. Box 1731 Boise, ID 83701 kmilerrfsnakeri verallance.org L5C)~ ~BradM. Purdy ~ CAPAI APPLICATION FOR INTERVENOR FUNDING Page 9 . ,. .. Costs: Photocopies/postage Total Costs Fees: EXHIBIT "A" ITEMIZED EXPENSES Legal (Brad M. Purdy -76.00 hours (q $120.00/hr) Total Fees Total Expenses $63.00 $63.00 $9,120.00 $9,120.00 $9,183.00 CAPAI APPLICATION FOR INTERVENOR FUNDING Page 10