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Home My WebLink About20110418Decision Memo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER REDFORD COMMISSIONER SMITH COMMISSION SECRETARY LEGAL WORKING FILE IPC-L-Ll-07 FROM:CHRIS HECHT DATE:APRIL 14,2011 RE:FORMAL COMPLAINT OF CRAIG MUCHOW On March 15,2011, the Commission received a "formal" complaint (Attachment) from Craig Muchow against Idaho Power Company (lPC). Mr. Muchow was unsatisfied with the outcome of the informal procedures to resolve his complaint and has fied this formal complaint. A Company letter to the customer stated that one of his irrigation accounts was subject to a Tier 2 deposit because it met one of two conditions listed in the letter, while in actuality that paiticular account met neither ofthe stated conditions. Mr. Muchow requests that IPC not be allowed to charge him a Tier 2 deposit for Account No. 1342930754. BACKGROUND During the 2010 irrigation season the customer, Craig Muchow, had three active irrigation accounts with Idaho Power Company. As of December 31, 2010, two of those accounts had a balance over $1,000 and the third account had a balance less than $1,000. The Company sent a letter (Attachment) dated December 3,2010, which reminded the customer that irrigation account(s) with a balance greater than $1,000 as of December 31,2010 would be subject to a Tier 2 deposit. The Company sent another letter (Attachment) dated January 13,2011 for Account No. 1342930754 that had a balance less than $1,000 as of December 31, 2010. Specifically, the amount owing was $169.77. The letter required a Tier 2 deposit because the account met one or DECISION MEMORANDUM - 1 -APRIL 14,2011 more of the following criteria specifed under Idaho Power's tariff: outstanding balance duè grei;tèl: than $ 1 ,000 as of December 31 or in bankruptcy or receivership proceedings. ì Because Account No. 1342930754 was referenced in the letter and neither of the two conditions listed in the letter applied to that account, the ciistomer does not believe aTier2 deposit should be required. However, the Company maintains that its policy is to collect a deposit on all Schedule 24 accounts..if any of thè cùstomer's Schedule 24 accounts meet the deposit criteria. The customer contacted the Commission to fie an informal complaint. When contacted by Commission Statt the Company continued to maintain that the customer qualified fOl' the Tiel' 2 deposit for Account Nò. 1342930754 because he had other Schedüle 24 accounts with a balance greater than $1,000 on December 3 i. The tariff provisions for Schedule 24 deposits does hot specify that a deposit wiI be c9Hected on all Schedule 24 accounts for a customer if any Schedule 24 áccount meets the deposit criteria. However, Staff acknowledges that Idaho Power has followed this policy since these deposit provisions were first put into place. STAFF RECOMMENDATION Craig Muchow was not satisfied with the outcome of the informal complaint. Consequently, he fied a formal complaint. See Rules 23, 25 and 54, IDAPA 31.01.01.023, .024 and .054. Staff recommends that the Commission issue a summons to Idaho Power Company and direct thè Company to fie a response to the complaint. COMMISSION DECISION Does the Commission wish to accept Craig Muchow's formal complaint? Does the Commission wish to issue a Summons? '- Hecht ì:dmemos/CRM Famís - IPC O;l2120l l i The same fohn letter was sent to the customer, requesting depsits for each of hiii other two In'igatlon accounts. However, the customer iii ltot protesting the deposit requests for theie açcouotii, DECISION MEMORANDUM - 2-APRIL 14,2011 March 11,2011 Idaho Publio Utilties Commission Boise, Idaho REF: Idaho Power Company Accunt Number 1342930754 To Whom It May Concern: Attached please find a copy of a letter that I received from Idaho Power Company dated January 13, 2011. This letter was in reference to the above li$ed account number. The letter is very clear. It has two stipulations for deposit prior to power being turned on. this account number does not qualify for the tier two deposit demanded by Idaho Power. This account, last December 31,2010, was approximately $175.00 in arrears. Neither of the criteria ato this account. We are not in bankruptcy nor was the amount in excess of $1 . Therefore, I am formally asking you to have Idaho Power reinstate the service to this pump number to avoid any delay in irrigation to crops and avoiding any damage to the crops. Please consider this letter a formal complaint against Idaho Power Company. AU. (1) Idaho Power Letter pc: File Erik Clark, Attorney, Boise, ID :! . Quetions? Cllll (208) 388.2323 (Trc)lre Valley) or 1.800-488.6151. Se habla ~spaì()i.M fO/¡(;OIl coni¡;my JANUARY 13,201 I CRAIG MUCHOW 1451 S 1700 E GQOD1NG, 10 83330 Account Number:,) 342930754 ¡ '; .:',' *' '. Ut Page 1 of 4 Il~\.1 IiI! li: 33 REQUEST FOR DEPOSIT Our r'Cøro indicate that your account mél one or 1nore of the following critcria that requires à TIER 2 deposit be paidon this àccount: ~J · Outstanding balance due greater than 51,000 as of December 3 i "" f" II· In bailkillptcy or receivership procecdi1igs "" /II The calculation ~f the dcposit is based on the horsepower for all pumps fi~oinyour account that were active last year.and for any new pumps requested this year. If you plan to add or delete pumps this year, please contact Idalio Power. Thedeposit requested for this account is &653.00. . Id!lho Power Company providcsinterest payments on the amotint of the deposit. A portion of the irrigation dep,osit, with aèêred interest, wil be applied to your account monthly unti the dçPO$It is depleted. Any remaining deposit plus accmed interest wil be applied upon date of disconnectioii or at the time your Septembe'r bil is prepared, Whichever is eailier. A çopy of the most recent irrigation tariffwil be provided to you upon requeSt. Required deposits must be paid prior to having service connected. To continue receiving service for those pumps currently active in your name, deposit payments must be made on or befòre .March 1, 20 i i. To ensure that your payment is applied properly and in a timely manner, please mail payment with the attàched payment stub. Allow five ,business days for receipt of mailed payments. A ativeto the deposit, a gUàrantee of paymeiit letter from an acceptable bank or finaneial iiistitution may be secure. For infotllation on this alternative, please et;mtact Idaho Power at (208) 388.2323 within the Treastire Valley , . rea or 1-800-488-6 i 51. When .callñg Idaho pQwer for irrigation service, you wil hear a list of options. Please tion" \vhen prompted to beconl1ected toa customer service representative. Thank you for your cooperation in and.maintaining access to your pump(s) duriiig the upcoming irrigation season. :t PO BOX 7866 BOISE. 1083707 DepoSit Payment due prior to having service connecied orto continue service. payment due on or before Mar~ i. ACçOUNTNmmER TOTALAMOUNTDUE 1342930754 $653.00 M IOACOllP comPiny (208) 388,233 (T(lasure VaUay) Amount Enclosed Please write your ace;;witiiulUbcr on your check or money order made payable 10 Ìfalio l'ow.er;.o Adilre$$lPhone Correctim. ñQtcd on reverse side 1111,,1, J' ,1,111 1111', ,~i1', J" ,11,111. J 11..1 li'II'llliliil,111 2856 1 354 T21 (ltl 14 2i56 CRAIG71/2H1451 S . GOODING, 10 83330.5020 fa II 1'1'11111 J J ill n,i.uiii "lllll'IIII',1i 111111 ,Ill' 1111111'1,1 IDAHO POWER P.O. BOX 7866 B01SE,lD 83707-t866 ~IDA~POR~ An IDACORP ComP3'W December 3, 2010 CRAIG R MUCHOW 50 HP PUMP 1451 S 1700 E GOODING ID 83330-5020 Dear CRAIG R MUCHOW, As 2010 comes to a close, I would like to provide you with infonnation regarding your Irrigation Service account balance(s) and ensure you are aware of Idaho Power's deposit requirements for irrigation customers. Depending on the status of your accowit balance on December 31, 2010, you may be required to pay either a "Tier 1" or a "Tier 2" deposit in order to receive electrical service for the 2011 Î11'igation year. A Tier 1 deposit is required if you have received two or more reminder notices for past due payments over $100. A larger Tier 2 deposit is required if the past due balance on yow' account(s) is greater than $1,000 as of December 31. As of December 1, our records indicate the past due balance on your account(s) is greater than $ i ,000.00. You may avoid the requirement to pay a Tier 2 deposit by paying your past due balance prior to December 31. For your convenience, enclosed with this letter is a list of each account that has a past due balance. Tier 2 deposits are computed using the following formula: (a) The Monthly Biling Demand is detennined by multiplying 80 percent times the connected horsepower for your pumps. (b) The Monthly Energy (biling kWh) is determined by multiplying 50 percent times 720 hoW's times the Monthly Billng Demand. (c) The Monthly Biling Demand and the Monthly Energy are multiplied by the current rates and added to the Irrigation In-Season Service Charge to determine the estimated monthly bil. (d) The estimated monthly bil is multiplied by a factor of four (4) to determine your required deposit amount. If you are required to pay a Tier 2 deposit, your 2011 moiithly bils wil be deducted from the CRAIG R MUCHOW Page 2 of3 deposit balance, which includes accrued interest, until the balance is depleted. Once the deposit balance is depleted, all subsequent bilings wil be due and payable each month. Any deposit balance remaining wil be applied to your account when the September biling is prepared. If you request service be disconnected earlier than Y0ul September biling date, any remaining deposit balance wil be applied to your account at that time. If your past due balance is below $1,000 on December 31, you may stil be required to pay a Tier 1 deposit if you received two or more reminder notices for past due payments over $100. Tier 1 deposits are computed on the same basis as the Tier 2 deposit outlined above except the estimated monthly bil is multiplied by a factor of only one and one-half (1.5). For Tier 1 deposits, the deposit amount plus accrued interest is applied to your account only at the time your September biling is prepared or you request service be disconnected, whichever is earlier. A deposit may be paid directly or an irrevocable letter of credit in the amount of the deposit may be provided from a financial institution acceptable to Idaho Power. If you are required to pay a Tier 1 or a Tier 2 deposit, the deposit plus all outstading past due balances must be paid in full in order to receive electrical service for the 2011 irrigation year. If you have any questions regarding your account balance or Idaho Powets deposit requirements, please contact your Agricultural Representative, Gerald Orthel, at 208-736-3430. For infonnation on ways to pay your bil, please visit www.idahopower.com and click on Pay My Bil. Sincerely /;/,;.. .-"?"-:.,pt.... .... z....Lt 1~.-¡' .. . ..,~/ Maggie Brilz Customer Service Maager CRAIG R MUCHOW Account Number Service Agreement Page 3 of3 Service Location Account Balance 2032093611 4301660008 1342930754 7101489190 2915120240 3733138362 05S14El430/GOODING.ID 05S14E 1412/GOODING .10 05S14E1410/GOODING.ID $992.86 $1,389.77 $162.54