20050119Comments.pdf

DONOVAN E. WALKER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5921
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U TIL triES COMMISSION
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF P ACIFICORP'
APPLICATION FOR APPROVAL OF
REVISIONS TO THE COMPANY'S CUSTOMER)
GUARANTEE RULE 25 AND SCHEDULE 300.
CASE NO. PAC-04-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Donovan E. Walker, Deputy Attorney General, and in response to the Notice
of Application and Notice of Modified Procedure issued in Order No. 29679 on January 4 2005
submits the following comments.
BACKGROUND
On December 2, 2004, PacifiCorp submitted by electronic filing various changes in
customer guarantees and performance standards" Rule 25 and Schedule 300. 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. PAC-99-1. The Company
committed to a five-year term for the program, which expires on March 31 , 2005. According to
the 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
STAFF COMMENTS JANUARY 19 2005
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.
STAFF ANALYSIS
Staff commends the Company on its willingness to continue monitoring its performance in
several key areas. By establishing standards and guarantees, the Company has reinforced its
commitment to maintaining and, where possible, improving customer relations and network
service quality. PacifiCorp proposes to modify six of its existing Customer Guarantees, retain the
existing Customer Guarantee regarding responding to bill inquiries, and eliminate the Customer
Guarantee regarding responding to power quality complaints. PacifiCorp is proposing to modify
three of its existing Network Performance Standards. The Company proposes to maintain its
existing Network Performance Standard with respect to restoring service after outages and
eliminate the standard relating to Momentary Average Interruption Frequency Index (MAIFI).
Finally, the Company proposes to modify its two existing Customer Service Performance
Standards. Staffhas prepared Attachment A summarizing the relevant merger commitments made
by PacifiCorp, its performance with respect to those commitments, and how the proposed
commitments compare to the existing commitments. If approved, the new Customer Guarantees
and Performance Standards will take effect on April 1 , 2005 , and expire on March 31 2008.
Customer Guarantees
The Company proposes that the new Customer Guarantees apply only to residential and
small commercial customers. The proposed Electric Service Regulation No. 25 , Sheet 25R.
states that the Guarantees "are applicable to all active metered residential, Schedule 23 and
Schedule 23A Customers or Applicants utilizing the services of the Company . Staff recommends
that instead of referring to "residential", the Tariff itemize the applicable schedules. Staff
recommends that the Tariff specifically refer to Schedule 1, Residential, and Schedule 36
Optional Time of Day. Staff also recommends that customers served under Schedule 6A, Large
Power (Residential and Farm) and Schedulel0, Irrigation and Soil Drainage Pumping Power
Service, be included under the Customer Guarantee Program. Customers served under Schedules
STAFF COMMENTS JANUARY 19 2005
6A and 10 share characteristics of those customers served under Schedule 23 , General Service
and Schedule 23A, General Service (Residential and Farm), which the Company proposes to
include under the program. Therefore, it would be appropriate to include these additional
schedules.
Section 3 of Rule 25 identifies the conditions under which payment for the failure to meet
a Customer Guarantee will not be made. In addressing major outage events such as storms, the
Company proposes to use the definition of "major event" determined by the Institute of Electrical
and Electronics Engineers, Inc. (IEEE). It is Staff s understanding that IEEE is developing
standards for system design. However, the document containing those standards is still a work in
progress. Until that work is complete, Staff recommends that the existing tariff language on Sheet
25R.4 remain unchanged.
With respect to Customer Guarantee 7 - Notifying of Planned Interruptions, Staff agrees
with the Company s proposal to change the time frame during which customers are notified of a
planned interruption from two working days to two calendar days. Instead of simply referring to
two days" as proposed by the Company, Staff recommends that Sheet No. 25R.3 be modified to
specify "two calendar days . Substituting the word "calendar" for "working" will clarify the
conditions under which this guarantee applies.
Network Performance Standards
The Company proposes to eliminate the network performance standard relating to
Momentary Average Interruption Frequency Index (MAIFI). The Company has been measuring
this index by breaker counts and has found that this does not result in an adequate measurement of
MAIF!. The Company also believes that adding momentary detection to each circuit is cost-
prohibitive and data-intensive to investigate using current technology. The Company proposes to
manage momentary events within the delivery system and will rely on customer feedback to
identify high momentary outage activity. Furthermore, the Company has assured the Staff that it
remains committed to improving the network performance and customer concerns related to
momentary events, and will delineate cost-effective methods for full-system momentary detection
deployment.
Staff agrees with the objectives of this proposal. However, it is rather vague on how this is
to be accomplished and the Staff would like to see more detail on the Companies plan.
STAFF COMMENTS JANUARY 19 , 2005
Customer Service Performance Standards
The Company proposes a telephone service level of answering at least 80 percent of calls
within 30 seconds. Although the Company is meeting its current performance target of answering
80 percent of calls within 20 seconds, maintaining this service level has been challenging,
requiring mandatory overtime and the use of employees who are not trained customer service
representatives. Staff shares the Company s concern that increasing call volumes and the length
of time necessary to adequately address each customer s concerns will create unnecessary tension
as call center employees struggle to provide good customer service as well as meet the service
level target. The Company s research indicates that customers would find the proposed target
satisfactory. Staff agrees that establishing a performance standard of answering 80 percent of calls
within 30 seconds will allow the Company additional flexibility in managing incoming customer
call activity without having a negative impact on customer relations.
The Company proposes to change its performance standard concerning response to and
resolution of informal customer complaints filed with the Commission. The Company intends to
respond to at least 95% of Commission complaints regarding disconnection within four working
hours and 95% of all other types of complaints within three working days. The standard presently
does not identify percentage targets for these measures. The Company proposes to retain the
existing commitment to resolve 95 percent of complaints filed with the Commission within 30
calendar days. Staff notes that Rule 404 of the Utility Customer Relations Rules (IDAP
31.21.01) requires utilities to respond to informal complaints within 10 working days. If an
extension is merited, utilities have up to 30 calendar days to provide a full and complete response
to all complaints filed with the Commission. Staff has no problem with the Company s proposed
revision of this performance standard, but wishes to remind the Company that Staff expects
compliance with Rule 404 as well. Compliance has not been an issue recently. Due to
PacifiCorp s prompt responses to the Commission, Staff was able to complete investigations and
resolve complaints within eight working days on average during 2004.
STAFF RECOMMENDATION
Staff recommends that the Commission accept the Company s proposal provided that the
following changes are made:
ST AFF COMMENTS JANUARY 19 2005
1. That all Customer Guarantees apply to customers served under Schedules 1 , 6A, 10
, 23A and 36 and that Sheet 25R.l be modified to list those schedules.
2. That the Customer Guarantee regarding notification of planned interruptions (Sheet
No. 25R.3) be modified to specify two "calendar" days.
3. That the Company provide a specific proposal to continue monitoring momentary
events as soon as possible.
4. That the proposed revisions to Section 3 on Sheet 25R.4 regarding the definition of a
major event not be approved and the current tariff language be retained.
Respectfully submitted this 11+/A day of January 2005.
onovan E. Walker
Deputy Attorney General
Technical Staff: Beverly Barker
Dave Schunke
i :umisc:comments/paceO4. 7 dwdesbab
ST AFF COMMENTS JANUARY 19 2005
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~
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 19TH DAY OF JANUARY 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. PAC-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID, TO
THE FOLLOWING:
D. DOUGLAS LARSEN
VICE PRESIDENT REGULATION
ACIFICORP
1407 WNORTH TEMPLE
SALT LAKE CITY UT 84111
MAILED TO doug.larson~pacificorp.com
DATA REQUEST RESPONSE CENTER
ACIFICORP
825 NE MUL TNOMAH SUITE 800
PORTLAND OR 97232
MAILED TO datarequest~pacificorp.com
Jo J1~SECRETARY
CERTIFICATE OF SERVICE