20130614Pacific Steel Petition for Reconsideration.pdf

PACIFIC
STEEL
ii C:
iT1...l1 Ci.i5;-’
June 15,2013
-6-13-/C)
Idaho Public Utilities Commission
P.O.Box 83720
Boise,Id.83720-0074
Dear Commissioners,
I am writing this letter,on behalf of Pacific Steel &Recycling,to ask for reconsideration of the
Power Cost Adjustment fPCA)being applied to our Mayfield car shredding operation,which is a
large power service customer.We do agree the PCA adjustment is appropriate for our other
fifteen branch operations which are small or large general service customers,as their load
requirements are very similar to a residential type customer.
It is our understanding that the PCA adjustment is,in part,for the energy costs incurred by
Idaho Power Company between April 1,2012 and March 31,2013.Therefore we have attached
a spreadsheet,labeled “Idaho Power Charges for April 2012 —March 2013”summarizing our
total charges for our Mayfield operations for that same time period.Please note in the TOTAL
kwh Summary that our On-Peak hours are less than 1%of our total kwh hours purchased
during that time period.Our Mayfield operations had approximately the same energy usage
profile for the same twelve month period the prior year.
We assume that peaking power is the most expensive Idaho Power pays for and that much of
that peaking capacity would be used by residential and small to large general service
customers.Since our peaking utilization is very small we are asking the Commission to lower
the increase of 21.7%applied to our entire energy usage.We do not specifically know how
peak,mid-peak,and off-peak rates are calculated however we think an increase to our Mayfield
operations equal to approximately the average ratepayer increase of 15.3%seems more
reasonable.There is also a solid argument that because we use very little peaking capacity,
unlike general service and residential customers,the PCA adjustment for our Mayfield
operation should be even smaller than the average increase to all ratepayers.
A simplistic approach in applying the PCA adjustment using the current ratepayer structure,
which we argue is more reasonable,is as follows:For our peak utilization of .72%the full 21.7%
rate increase is appropriate.For our mid-peak capacity of 67.46%(10.12%+57.34%)the 16.86%
increase being applied to large general service ratepayers and for our off-peak of 31.82%
(14.72%+16.32%)the 10.36%increase being applied to small general service ratepayers seems
more appropriate.This would result in an overall increase to our Mayfield operations of 15%
approximately the average increase for all ratepayers.
1900 20th Street North •P.O.Box 530 •Nampa,Idaho 83687-0530
P:1.800.727.9901 •208.467.2133 •F:208.466.9571 A NORTHWEST TRADITION BUILT ON STRENGTH
www.pacific-steel.com •www.pacific-recycling.com Montana •Wyoming •idaho •Oregon •Washington •Utah •South Dakota
PACIFIC
STE E L
We are asking the Commission to please reduce our PCA adjustment to a lower increase
since we have adjusted our operational hours so as to virtually avoid the peak service hours.
We have made that accommodation to assist Idaho Power Company in leveling out its load
requirement.However,operating our Mayfield shredder outside of peak hours,since we began
that operation in 2008,is a significant inconvenience to our employees.Therefore we do not
feel we should be “penalized”with the full large power service rate increase of 21.7%.
Thank you for your consideration of our request.
Sincerely,
Carry Stokoe
Board of Director,Pacific Steel &Recycling
Nampa,Idaho
1900 20th Street North •P.O.Box 530 •Nampa,Idaho 83687-0530
P:1.800.727.9901 •208.467,2133 •F:208.466.9571
www.pacific-steel.com •www.pacific-recycling.com
A NORTHWEST TRADITION BUILT ON STRENGTH
Montana •Wyoming •Idaho •Oregon •Washington •Utah •South Dakota
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