20061003notice_of_petition_order_no_30139.pdf

Office of the Secretary
Service Date
October 3 , 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
ACIFICORP DBA ROCKY MOUNTAIN
POWER TO DETERMINE THE
APPROPRIATE FUNDING STRUCTURE OF
ITS SCHEDULE 21 (LOW INCOME
WEATHERIZATION PROGRAM)
CASE NO. PAC-06-
NOTICE OF PETITION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30139
On September 1 , 2006, PacifiCorp dba Rocky Mountain Power filed a petition
seeking a declaratory order that the Company s current funding structure for its Low Income
Weatherization Program contained in tariff Schedule 21 is just and reasonable. PacifiCorp filed
this Petition in compliance with a settlement stipulation it entered into with the Community
Action Partnership Association of Idaho (CAP AI) dated June 19 2006 (subsequently referred to
as the "Stipulation ). The Company filed supporting testimony on September 15 , 2006. The
Company requested that this matter be processed by Modified Procedure.
BACKGROUND
In the PacifiCorp-MidAmerican acquisition case No. PAC-05-, Commitment 1-
required PacifiCorp to submit an analysis of the costs and benefits of its practice to match 50%
of federal contributions for its Low Income Weatherization Program. This analysis was to be
contained in direct testimony as part of PacifiCorp s next general rate case to be filed no later
than April 29, 2006. The rate case would then provide interested parties with a forum and
opportunity to comment on the Company s weatherization policies. The commitment was
adopted and approved in Order No. 29998 issued March 14 2006.
Consistent with its Commitment 1-, in April 2006 PacifiCorp filed revisions to its
Low Income Weatherization Program (Schedule 21) in Tariff Advice No. 06-03. PacifiCorp
proposed to reimburse the community action agencies 50% of the costs of weatherization when
federal funds are available, and increase its contribution to 100% of the approved costs when
federal funds are not available. The tariff advice also proposed to eliminate the $1 500 "ceiling
for the average cost of weatherization per home. The tariff advice was suspended to obtain some
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30139
additional information from Staff, CAP AI and the Company. After reviewing the additional
information and comparing the electric utilities' weatherization programs , the Commission
approved Tariff Advice 06-03 at its July 19, 2006 decision meeting. The proposed changes to
Schedule 21 became effective August 1 , 2006.
While the tariff advice was under consideration, the Company reached settlement
agreements with customers involved in its pending general rate case. In lieu of a single rate case
PacifiCorp subsequently filed three applications to increase certain rates for tariff Schedules Nos.
10 (Irrigation), 400 (Monsanto) and 401 (Nu-West) in Case Nos. PAC-06-, PAC-06-8 and
PAC-06-, respectively. These applications are based upon settlement agreements reached
between PacifiCorp and the representatives of the customers served under the respective
schedules. Petition at 2. The Commission has solicited public comments in these three cases.
The Company also entered into a settlement stipulation with CAPAI on June 19
2006. This Stipulation provided that PacifiCorp make a $10 000 contribution to each community
action agency (SEICAA and EICAP) to be used in the agencies' Lend-a-Hand heating assistance
programs. Exh. 1 , Stipulation at 2. PacifiCorp also agreed to support legislation sponsored by
CAP AI to authorize discount rates for low-income residential customers. Id. Finally, PacifiCorp
agreed to file a pleading to address "the costs and benefits" of increasing PacifiCorp s 50%
match for low-income weatherization projects. This last element was to compensate for the lack
of a general rate case. The present Petition is the pleading that would allow CAP AI and other
interested parties to comment on the "costs and benefits" of the Company s Low Income
Weatherization Program.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that PacifiCorp has weatherized more than 600
homes since 1988 using its Low-Income Weatherization Program in tariff Schedule 21. The
Company s weatherization program is intended to increase electric conservation by reducing
electricity consumption and monthly electricity bills with the installation of conservation
measures in the homes of low-income residential customers. Petition at 3. PacifiCorp
reimburses its partner agencies in Idaho Falls and Pocatello 50% of the cost of installing
approved weatherization measures when matching federal grants are available to the agencies.
The weatherization services are provided at no charge to participating households.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30139
YOU ARE FURTHER NOTIFIED that effective August 2006, PacifiCorp will
reimburse the agencies up to 100% of the costs of installing weatherization measures if
government funds have been effectively exhausted. The Company also removed the previous
500 "ceiling" on its maximum average investment per household. The Company will
continue to reimburse the partner agencies 15% of the Company s rebates to cover the agencies
administrative costs. PacifiCorp s total funding for its weatherization programs in Schedule
is capped at $150 000 annually.
YOU ARE FURTHER NOTIFIED that the Company indicated in its Petition that if
the reimbursement proportion is increased, fewer low-income customers will be provided
weatherization services. Petition at 4. The Company claims that such a result would make the
weatherization program less cost effective. Id. The Company pre filed the testimony of Brian
Dickman, the Manager of Idaho Regulatory Affairs. He sponsors the Company s Exhibit 2
which is the cost and benefit analysis ofthe Company s weatherization program.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
PacifiCorp s representatives in this matter:
Dean Brockbank, Esq.
PacifiCorp
201 S. Main, Suite 2200
Salt Lake City, UT 84111
E-mail: dean. brockbank(fYpacificorp.com
Brian Dickman
PacifiCorp dba Rocky Mountain Power
201 S. Main, Suite 2300
Salt Lake City, UT 84111
E-mail: brian.dickman(gJ,pacificoro. com
YOU ARE FURTHER NOTIFIED that the Petition, supporting testimony and
exhibits have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices. The Petition, testimony and exhibits are also
available on the Commission s Website at www.puc.idaho.gov under the "File Room" icon and
then "Electric Cases.
PETITION TO INTERVENE
On September 22, 2006, the Community Action Partnership Association of Idaho
(CAP AI or the "Association ) petitioned to intervene in this matter. CAP AI also objected
PacifiCorp s request to process this case under Modified Procedure. The Association indicated
that it desired to conduct discovery and asserted there are material issues of fact in dispute.
Consequently, CAP AI maintained that a technical hearing may be in order.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30139-
Based upon our reVIew of CAP AI's Petition to Intervene and Objection, the
Commission grants CAP AI's Petition to Intervene. We find that the Association has shown a
direct and substantial interest in PacifiCorp s Weatherization Program. IDAPA 31.01.01.074.
CAP AI also objected to processing this case under Modified Procedure.
Consequently, we shall issue a Notice of Intervention Deadline and direct the Commission Staff
to conduct an informal prehearing conference. After the Commission Secretary has issued the
Notice of Parties, the Commission Staff will conduct an informal prehearing conference for the
purpose of establishing a schedule for discovery, testimony, and hearings in this matter as
necessary. The Commission may direct that pleadings and testimony be filed electronically with
the other parties.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at a hearing must file
Petition to Intervene with the Commission pursuant to this Commission s Rules of Procedure 72
and 73 , IDAP A 31.01.01.072 and -073. Persons intending to participate at the hearing must file
a Petition to Intervene within 14 days of the service date of this Order. Persons seeking
intervenor status shall also provide the Commission Secretary with their electronic mail
addresses to facilitate future communications and setting a prehearing conference in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views
without parties' rights of participation and cross-examination are not required to intervene and
present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code 99 61-336, 61-503 and 61-507. The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the Petition to Intervene filed by Community Action
Partnership Association of Idaho is granted.
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30139
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission within 14 days of the service date of this Order.
IT IS FURTHER ORDERED that after the Commission Secretary has issued the
Notice of Parties, the Commission Staff shall convene a telephonic prehearing conference for the
purpose of developing a schedule to process this case.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of October 2006.
DER, PRESIDENT
J~-
MARSHA H. SMITH, COMMISSIONER
~~z
ENNIS S. ANSEN, COMMISSIONER
ATTEST:
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p.
Jeweli
CoMmission Secretary
bls/O:PAC-06-10 dh
NOTICE OF PETITION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30139