20140128ICIP Comments.pdf

Peter J. Richardson ISB # 3195
Gregory M. Adams ISB #7454
RTCHARDSON ADAMS, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
gre g@richardsonadams. com
Attorneys for the Industrial Customers of Idaho Power
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY TO IMPLEMENT A
SCHEDULE 19 SUBSTATION
ALLOWANCE AND TRANSMISSION
VESTED INTEREST (TARIFF ADVICE
NO. l3-08)
) cAsE NO. TPC-E-14-0I
)) COMMENTS OF THE INDUSTRIAL
) cusToMERS OF IDAHO POWER
)
)
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
Pursuant to Notice Application and Notice of Modified Procedure issued by the Idaho
Public Utilities Commission ("Commission") on January 7,2014, the Industrial Customers of
Idaho Power ("ICIP") by and through their attorney of record, Peter J. Richardson, hereby
provides the following comments.
Idaho Power Company ("Idaho Power" or the "Company") proposes to modify Schedule
l9 to incorporate the findings and conclusions regarding allowances and vested interest refunds
from Case No. IPC-E-13-09. In that case, the Commission ruled that Glanbia Foods, [nc.
("Glanbia") was entitled to an allowance and vested interest refund opportunity pursuant to the
Commission's established policies found in Rule H.
Rather than amend its Rule H to incorporate the Commission's findings, Idaho Power has
chosen to modify the industrial rate Schedule 19. The ICIP appreciates this opportunity to
provide comments on Idaho Power's tariff hling. The Commission should be clear that the
general provisions of Rule H continue to apply to Schedule 19 and are not overturned by the use
of a Schedule l9 Tariff to implement the Commission's Glanbia decision. For instance, Rule H
currently provides:
If the Company does not start construction on a Line Installation or Alteration within 30
days after receipt of the construction payment, the Company will compute interest on the
payment amount beginning on the 3l't day and ending once Company construction
actually begins.r
This provision should apply to Schedule l9 line extensions as well.
Currently Rule H line extensions are discounted, up front, by the amount of the allowance
provided. In other words, commercial and residential customers receive the benefit of the
allowance before the company even begins construction. The Commission has decided,
however, that industrial customers will receive the benefit of their allowance over a five-year
period - commencing after the extension has been completed.2 The ICIP understands the
Commission's concem about speculative extension requests. Nevertheless, the disparate
treatment of the industrial class vis a via the other classes is inequitable. The ICIP believes this
inequity can be ameliorated somewhat by having the un-refunded portion of the allowance
accrue interest from the date of receipt.
Idaho Power did not use the exact formula for calculating the size of the Schedule 19
allowance from the Commission's order.3 The first part of the formula in the Commission's
Glanbia order provides, oolrcase in load from the previous year as measured in MW."4 Idaho
Power's proposed formula begins with "Change in load from the previous year as measured in
' Idaho Power Tariff Rule H at $2O.
' Order No. 32893 at p. 8.
' Id.
a /d. emphasis provided.
COMMENTS OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER
rPC-E-14-01
PAGE 2
MW."s If, for whatever reason, a customer experienced a decrease in load, it should not have an
obligation to pay Idaho Power based on the allowance formula.
Idaho Power is making the vested interest rights only available when a customer installs
transmission voltage level facilities which it defines as lines that are operated at 44 kilovolt or
higher ratings. However there are Schedule 19 customers that take service at the primary voltage
level, which Rule B defines as 12.5 kilovolts up to 34.5 kilovolts. While, it is true the Glanbia
upgrade was to a 138 kilovolt line, the vested interest rights for a Schedule 19 customer should
extend to Schedule 19 customers of all voltage levels. Rule H currently allows for allowances
and vested interest rights for primary level customers, it would be discriminatory for Idaho
Power to restrict such benefits to just transmission level industrial customers and not also to
primary level industrial customers.
RESPECTFULLY SUBMITTED this 28rH day of January 2014
Richardson Adams, PLLC
By
t Idaho Power TariffAdvice
COMMENTS OF THE
IPC-E-14-01
PAGE 3
l3-08, December 23,2013 at p. l9-6, emphasis provided.
INDUSTRIAL CUSTOMERS OF IDAHO POWER
lndustrial Customers of Idaho Power
CERTIFICATE OF SERVICE
I hereby certiff that on the 28n day of January 2014, copies of the foregoing Comments
of the Industrial Customers of ldaho Power were hand delivered to:
Lisa Nordstrom
Idaho Power Company
1221 West Idaho
Boise,Idaho 83702
Jean Jewell
Idaho Public Utilities Commission
472West ldaho Street
Boise,Idaho 83702
;>u/r,\)Q1.s,r
Nina Curtis
Administrative Assistant
COMMENTS OF THE INDUSTRIAL CUSTOMERS OF IDAHO POWER
IPC-E-14-01
PAGE 4