20011203Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONYA CLARK
DON HOWELL
LYNN ANDERSON
DAVE SCHUNKE
RANDY LOBB
BEVERLY BARKER
GENE FADNESS
WORKING FILE
FROM:
DATE:
DECEMBER 3, 2001 RE: CASE NO. PAC-E-01-14—PETITION OF PACIFICORP TO MODIFY ORDER NO. 28213

On October 16, 2001, a petition was filed by PacifiCorp asking the Commission to modify Order No. 28213 issued November 15, 1999 in Case No. PAC-E-99-01. In that Order the Commission approved the merger of PacifiCorp and Scottish Power PLC, subject to various terms and conditions. Included in the conditions ordered by the Commission are performance standards and customer guarantees, including a goal to reduce customer wait time on calls to PacifiCorp’s service center. Within 120 days after completion of the merger, PacifiCorp was to reduce customer wait time for 80% of calls being answered within 30 seconds (“80/30”). Effective January 1, 2001, the goal became 80% of calls answered in 20 seconds (“80/20”), and starting January 1, 2002, 80% of calls are to be answered in 10 seconds (the “80/10” rule). By its Petition, PacifiCorp asks the Commission to eliminate the 80/10 rule. PacifiCorp states that it met the 80/30 target as required, and currently is meeting the 80/20 requirement.
PacifiCorp contends that, when the 80/10 commitment was made, “today’s energy environment with tight energy supplies, volatility in energy markets and the increase in the number of programs (e.g., customer energy challenge, increased interest in demand side management programs, etc.) was not envisioned.” PacifiCorp contends this environment has created an unanticipated increase in the volume of calls as well as more complex calls to PacifiCorp’s business centers. In addition, PacifiCorp received a Residential Focus Group Research Report indicating that the goal of answering 80% of calls within ten seconds is unnecessary and not particularly important to the customer. To illustrate the point, PacifiCorp refers to its research showing that customer satisfaction with call center wait times was 70.4% “very satisfied” while the 80/30 standard was in place, and is 70.2% “very satisfied” during 2001 while the 80/20 rule is in place. PacifiCorp also asserts that according to the Edison Electric Institute’s 2001 Call Center Benchmarking Study, PacifiCorp’s call center service level is among the best in the U.S.
The Commission on November 9, 2001, issued a Notice of Petition and Notice of Modified Procedure to process PacifiCorp’s Petition. During the comment period, written comments were filed only by the Commission Staff. The Staff supports the modification requested by PacifiCorp.
Staff recommends that the Petition of PacifiCorp to modify Order No. 28213 to eliminate the 80/10 rule be approved.
Commission Decision
Should the Petition of PacifiCorp to modify Order No. 28213 be approved?

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DECISION MEMORANDUM 2