20020513Notice to Customers.pdf

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201 S. Main Street. Suite 1100
Salt lake City. Utah 84111
main 801.328.3131
fax [phone]
ATTORNEYS AT lAW
IDAIH) PUBLIC
UTILUJESCOM'MISS1BN
www.stoel.com
May 13 , 2002
JOHN M. ERIKSSON
Direct Dial
[phone]
email :jmeriksson~stoel. com
Scott \Voodbury
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
Re:Case No. PAC-O2-1; Notice to Customers
Dear Scott:
This letter is a follow-up to a conversation you had with Jim Fell last week regarding notice to
PacifiCorp s customers regarding its filing in Case No. PAC-Ol-1. The statutory noticerequirement for changes in rates is set forth in Idaho Code ~ 61-307 , which provides for filingwith the Commission and keeping open for public inspection the proposed changes to schedules
and stating the proposed effective date. On January 16 , 2002, the Commission issued a Notice
of Application, which, among other things , gave notice that the Application, together with therelated cost -of-service study and Company testimony, were available for public inspectionduring regular business hours at the offices of the Commission. Further, the Company s filingwas also made available for public inspection at the Company s offices in Rexburg, Preston
Shelley and Lava Hot Springs, Idaho. Thus , the statutory notice requirement in this case was
satisfied.
Rule 102 of the Commission s Utility Customers Information Rules (IDAPA 31.21.02)
provides for customer notices (through bill stuffers or an additional comment page with the
. customer s bill) announcing a utility's application for a general or tracker rate change.
Significantly, Rule 102.05 provides that Subsections 102.01 through 102.04 of Rule 102create no individual procedural rights in any customer for notice that would give rise to a due
process or other procedural claim " but are instead intended to encourage wide disseminationto customers of information concerning proposed rate changes.
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Scott Woodbury
~ ~ay 13 2002
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The Company s communications department records do not indicate that a bill message or bill
insert was sent to customers at the time of the Company s Application, although it is looking
into it further. A press release was issued on the date of the Application, a copy of which is
enclosed.
Please contact me if you have additional questions.
Very truly yours
" John M. Eriksson
JME:sm
Enclosure
UTAH POWER NEWS
For information, contact:
Media Hotline [phone]
David Eskelsen 801-220-2447
FOR RELEASE Jan. 7, 2002
Utah Power files power cost; BPA case
SALT LAKE CITY-Utah Power filed a request with the Idaho Public Utilities
Commission January 7 to adjust customer rates and implement a new credit to pass
through benefits from the federal hydroelectric system. The request does not ask for a
permanent rate increase. In, fact, if the company s overall proposal is approved, many
customers will see net decreases in their bills.
The company s request includes four parts:
Implement an increased credit that is the result of a settlement Utah Power
negotiated last year with the Bonneville Power Administration on behalf of its
residential and small farm customers.
Recover extraordinary power costs amounting to $38 million through a temporary
24-month surcharge on customer bills. The Idaho PUC previously allowed Utah
Power to defer accounting of these costs for later regulatory treatment.
Adjust individual rate classes to more nearly reflect the actual cost of service.
Utah Power is also proposing a rate mitigation policy to ensure that no customer
class will receive a rate increase during the period in which the power cost surcharge
is in effect.
While these elements would normally cause the rates of individual customers to change
up or down, the rate mitigation policy would assure that, when summed together
individual rate classes would not increase during the two-year surcharge period after
PUC approval. In fact, those customers who qualify for the BP A credit would see an
average decrease of 8 percent in their overall bill.
We believe this propos~l has significant benefits for Idaho customers " said Doug
Larson, vice president of Regulation. "The BP A credit IS a large factor in the overall
effect on customers, and the Idaho PUC deserves a great deal of credit for ensuring that
Idaho citizens received a fair share ofBP A benefits.
The request would not result in increased general revenues for Utah Power, which has
not asked for a general rate increase since 1988. The proposed temporary surcharge is
specifically to recover a portion of extraordinarily high wholesale power purchases the
company made to serve Idaho customers in the past year.
Utah Power is a division ofPacifiCorp, which serves 55 000 customers in southeastern
Idaho. The company serves 1.5 million customers in Utah, Oregon, Wyoming,
Washington, Idaho and California.
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