20041227Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:DECEMBER 23, 2004
SUBJECT:P ACIFICORP'S APPLICATION FOR APPROVAL OF REVISIONS TO
THE COMPANY'CUSTOMER GUARANTEE RULE 25 AND
SCHEDULE 300, CASE NO. P AC-04- 7
On December 2, 2004, PacifiCorp submitted by electronic filing various changes in
customer guarantees and performance standards using a tariff advice proceeding. The Company
requests an effective date of the revisions to Rule 25 and Schedule 300 of April 1 , 2005.
Additionally, the Company requests approval of the proposed changes by January 31 , 2005 to
allow sufficient time to implement the revisions by the requested April 1 , 2005 effective date.
Because of the significant changes proposed by the Company, the Commission Staff
recommends suspending the tariff advice, assigning a case number, and processing the proposed
changes using Modified Procedure with a comment period.
BACKGROUND
At the time of the merger between PacifiCorp and ScottishPower, the Company agreed to
implement seven Performance Standards and eight Customer Guarantees. See Case No. P AC-
99-1. The Company committed to a five-year term for the program which expires on March 31
2005. According to the Company s current Application, the Customer Guarantee Program has
been very successful with a success rate in meeting the guarantee commitments in Idaho of
99.9%. The Company now proposes to continue both the Customer Guarantee Program and the
Performance Standards Program citing: positive customer, employee, and regulatory feedback
regarding the service standards; the process improvements that have resulted from the service
standards; and the desire to maintain the Company s focus on providing excellent customer
servIce.
DECISION MEMORANDUM
THE APPLICATION
The Company requests an effective date for the proposed revisions of April 1 , 2005, as
the current standards expire on March 31 , 2005. Additionally, the Company requests approval of
the proposed revisions by January 31 , 2005 in order to train employees and make the necessary
system changes to implement the revisions.
Customer Guarantee Program
The Company is proposing several improvements to the current customer guarantees and
the elimination of one guarantee. The Company proposes a three-year duration for the modified
program, with an expiration date of March 31 , 2008, and including an efficacy review of the
program by the Company and Commission Staff at that time to determine what modifications
should be made in the future.
Under the modified program the Company will guarantee the following services:
restoring supply after an outage; 2) meeting appointments; 3) connecting new service; 4)
providing an estimate; 5) responding to billing inquiries; 6) resolving meter problems; and 7)
providing notice on planned interruptions. The Company seeks to eliminate the existing
Customer Guarantee No., Responding to Power Quality Complaints.
Network Performance Standards
The Company proposes to retain four Network Performance Standards and eliminate one.
According to the Application the Company proposes: 1) to improve SAIDI (system average
sustained interruption duration index) results by 6% within the three years to achieve a target of
SAIDI of no more than 206.minutes; 2) to improve SAIFI (system average sustained
interruption frequency index) results by 6% within the three years to achieve a target of SAIFI of
no more than 2.34 events; 3) to select five under-performing circuits in Idaho on an annual basis
and undertake corrective measures to reduce the CPI (circuit performance indicator) by 20%
within two years; and 4) to restore power outages due to a loss of supply or damage to the
Company s distribution system on average to 80% of customers within three hours.The
Company seeks to eliminate the network performance standard relating to MAIFI (momentary
average interruption frequency index).
Customer Service Performance Standards
The Company is proposing changes in the telephone performance standard and the
complaint performance standard. The Application proposes to adjust the service level for
DECISION MEMORANDUM
telephone response from 80% of calls answered in 20 seconds, to 80% of calls answered in 30
seconds, and to focus on the quality of service that customers receive by monitoring customer
satisfaction with the Company s Customer Service Associates and the quality of response the
customers receive. The Company is also proposing changes to the complaint performance
standard to indicate that the Company will respond to at least 95% of Commission complaints
within 30 days.
STAFF RECOMMENDATION
Staff recommends that, rather than process this matter as a tariff advice as submitted by
the Company, this application should be processed by modified procedure within the time frame
requested by the Company.
COMMISSION DECISION
Does the Commission wish to process this case by modified procedure with a comment
period of21 days?
Donovan E. Walker
DECISION MEMORANDUM