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Home My WebLink About20090417Comments.pdf, ~ Michael C. Creamer, ISB #4030 Conley E. Ward, ISB # 1683 GIVENS PURSLEY LLP 601 W. Banock St. Post Offce Box 2720 Boise, Idaho 83701-2720 Telephone: 208-388-1200 Facsimile: 208-388-1300 10495-l/54592 _ l.OO ('li,r.:p,' ri...., ,,' 1.,;)' 10U9 APR I 7 Pl1 4: 4 I Attorneys for Interenors The Building Contrctors Associaton of Southwester Idaho BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPAN FOR AUTHORI TO MODIFY ITS RULE H LINE EXTENSION TARFF RELATED TO NEW SERVICE ATTACHMENTS AN DISTRIBUTION LINE INSTALLATIONS. CASE NO. IPC-E-08-22 COMMNTS OF BUILDING CONTRACTORS ASSOCIATION OF SOUTHWESTERN IDAHO The Building Contractors Association of Southweser Idaho ("Building Contractors"), by and through its attorneys of recrd, Givens Puley LLP, and purant to Commission Order No. 30746, submits its comments in the above-captioned matter. The Building Contractors' comments ar supported by the accompanying Diec Testimony of Richard Slaughter and Exhbits 201 though 204. The Building Contrctors appreciate the opprtty to prvide these comments and testimony to the Commssion, and the additional time the Commission granted for thei submtt. The underlying premise of Idaho Power Company's ("Company" or "Idaho Power") Application to amend its Rule H tarffis that "growt should pay its own way." The issues and facts are more complex th ths simple shibbolet suggests. And neither the incrasing COMMTS OF BUILDING CONTRACTORS ASSOCIATION OF SOUTHWSTERN IDAHO - Page 1 11 popularty of the slogan "growth should pay for itself," nor the apparently sound policy it sees to captue, support Idaho Power's effort in ths proceeing to shift the cost of providing serce frm itself or from one class of its cutomer to another. Mr. Slaughter's accompanying testimony analyzes the actual source of increase costs to extend new distrbution plant and concludes that it is inflation, not growt. Mr. Slaughter's testimony also analyzes the economic impacts of the Company's proposal on the Company and its existig cutomer, and on the Building Contrctors and their cutomer. The Company's proposal would shield its existig customer from paying for the actual value of the serce they receive. Ths should be expected to stimulate incred electrcity demand because of the incoect market signal this subsidy would send. The Company's approach is inconsistent with existing Commission policy, established by Idaho Power's last Rule H tarff revision case (lPC-E-95-18), wher the Commssion held that new customer are entitled to have the Company provide a level of investment eql to that made to sere existig customer in the same class, and that it was approprate that some portion of the cost of new distrbution costs be reover thugh rates. A signficant concer for the Commission in IPC- E-95-18 was the sever impact any different policy would visit on Idaho's economy. The proposed taff revsion also is inconsistent with the Commssion's most recently stated position in Case No. IPC- E-08- 10 that Idaho Power's rates should sed a stronger price signal to customer encourging the effcient use of energy. The Company's testimony suggests that its Application is driven by the impact on its ratepayer of the increased costs driven by rapid customer growt. As Mr. Slaughter points out, however, the Company's curent line extension costs are less than 1 % of its overl rae base. Furer, the number of new customers added to the Company's system has deceaed by COMMTS OF BUIDING CONTRACTORS ASSOCIATION OF SOUTSTERN IDAHO - Page 2 ~ approximately half in each of the two preceding year, indicatig that, to the extent growt place any objectionable "upward pressure" on rates, the conce should be a deceaing one. Idaho Power's tarff modifications are aied, quite simply, at the elimination of allowances and refuds for its own sake. The Company has not provided any facts supprting its proposed tarff revisions other than that the revsions will fuher ths objective. The propose modifications are a step backward from the cuent requirement that the Company fud a level of investment equal to that made to sere existing cutomers, and that it recover a porton of the cost of new distrbution though rates. In short, there are no new circumstaces supportg a sea change in Commission policy concerg the proper allocation of new serice costs or the need to send proper market signals to energy consumer. What is new, however, is the recent and signficant economic downtu that Idaho citizens and businesses now are faced with. The Building Contrctors' membe ar feelig the brt of reduced access to credit to fud thei day-to-day opeations and a stagnant demand for their pructs. The light at the end of the cuent economic tuel is dim and uncerai at best. Idaho Power's tarff proposal would move a brck frm its back and onto that of the Building Contrctors' members to car through ths tuel and beyond. In the curent ecnomic climate, some may not be able to car it. And as recet analysis by the National Assocation of Home Builder indicates, incrementa additional costs to a new home purchase price can and wil "price-out" many potential new home buyer, not to mention, place upward pressure on the costs of all homes in the market. Ths in tu has advere and unntended conseuences on all homeowner, including those already receiving electrcity frm Idaho Power, that will be pehaps equal to or excee whatever arguable beneft they might receive from payig elecc rates set below the cost of serce. COMMENTS OF BUIDING CONTRCTORS ASSOCIATION OF SOUTHWSTERN IDAHO - Page 3 For the reasons stated above, and as set fort in Mr. Slaughter's testiony, the Building Contrctors urge the Commission to: deny Idaho Power's Application; incrase the teral facilties allowances under its curent tarff; provide for peodic tre-ups of these allowance; and increase the perod from five year to ten yea durg which vested interest refuds are be made. DATED ths 17th day of April, 2009. GIVENS PURSLEY, LLP ~~ Attorneys for Interenor The Building Contrctors Assocation of Southwester Idao COMMTS OF BUIING CONTRACTORS ASSOCIATION OF SOUTHWSTERN IDAHO - Page 4 CERTIFICATE OF SERVICE I hereby cerfy that on the 17th day of Aprl, 2009, a tre and correct copy of the foregoing was sered upon the following individual(s) by the meas indicated: Origial Filed: Jea D. Jewell, Secretar Idaho Public Utilties Commission 472 West Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Servce Copies: Lisa D. Nordstrom Baron L. Kline Idaho Power Company POBox 70 Boise, il 83707-0070 Inordstrom(áidahopower.com bkline(áidahopower.com Scott Sparks Gregory W. Said Idaho Power Company POBox 70 Boise, il 83707-0070 ssparks(áidahopower.com gsaid(áidahopower.com Krstie A. Sasse Deputy Attorney General Idaho Public Utilities Commission 472 W. Washington PO Box 83720 Boise,ID 83720-0074 krs.sassercquc.idaho.gov U.S. Mail, postage prepaid Express Mail Hand Deliver Facsimile Elecnic Mail U.S. Mail, postage prepaid Express Mail Hand Deliver Facsimile Electonic Mail U.s. Mail, postage prepaid Express Mail Hand Deliver Facsimile Electronic Mail U.S. Mail, postage prepaid Express Mail Hand Deliver Facsimile Electronic Mail COMMENTS OF BUILDING CONTRACTORS ASSOCIATION OF SOUTHWSTERN IDAHO - Page 5 Matthew A. Johnson Davis F. VanderVelde White, Peteron, Gigray, Rossman, Nye & Nichols, P.A. 5700 E. Franin Rd., Ste. 200 Nama, ID 83687 miohnsonCfwhitepetern.com dvandereldeCfwhitepeteron.com Attorneys for The City of Nampa and The Association of Canyon County Highway Districts Michael Kur Kur J. Boehm Boehm, Kurz & Lowr 36 E. Seventh St., Ste. 1510 Cincinnati, OH 45202 mkegKLlawfirm.com KboehmCfBKLlawfirm.com Attorneysfor The Kroeger Co. Kevin Higgins Energy Strategies, LLC Parkside Towers 215 S. State St., Ste. 200 Salt Lake City, UT 84111 khggisCfgenergystrat.com Representing The Kroeger Co. U.S. Mail, postage prepaid Express Mail Hand Deliver Facsimile Electronic Mail u.S. Mail, postage prepaid Express Mail Hand Deliver Facsimile Elecnic Mail u.S. Mail, postage prepaid Express Mail Hand Deliver Facsimle Eleconic Mail C4£L.".... Michael C. Creamer COMMENTS OF BUIDING CONTRCTORS ASSOCIATION OF SOUTHWSTERN IDAHO- Page 6