20060922Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:SEPTEMBER 22 , 2006
RE:ROCKY MOUNTAIN POWER PETITION TO CONFIRM THE
PAYMENT STRUCTURE OF SCHEDULE 21 (LOW INCOME
WEATHERIZATION), CASE NO. PAC-06-
On September 1 , 2006, PacifiCorp dba Rocky Mountain Power filed a petition seeking a
declaratory order confirming that the Company s current funding structure for its Low Income
Weatherization Program in Schedule 21 continues to be just and reasonable and in the public
interest. Rocky Mountain filed this Petition in compliance with a settlement stipulation it
entered with the Community Action Partnership Association of Idaho (CAP AI) dated June 19
2006 (subsequently referred to as the "Stipulation ). The Company filed its supporting
testimony September 15 , 2006. The Company requested that this matter be processed by
Modified Procedure.
On September 22, 2006, the CAP AI filed a Petition to Intervene and Objection to
Modified Procedure. CAP AI requested to be "allowed to conduct discovery and that a tentative
hearing date be set." The Petition also suggested a prehearing conference.
BACKGROUND
In the PacifiCorp-MidAmerican acquisition case, Commitment 1-13 required PacifiCorp
to submit an analysis of the costs and benefits of its practice to match 50% of federal
contributions for the Low Income Weatherization Program. This analysis was to be contained in
direct testimony as part ofPacifiCorp s next general rate case to be filed no later than April 29
2006. The rate case would then provide interested parties with an opportunity to review and
DECISION MEMORANDUM - 1 -SEPTEMBER 22 , 2006
comment on the Company s weatherization policies. The Commitment was 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
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.
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 Schedule Nos.
400 and 401 (Case Nos. PAC-06-, PAC-06-8 and PAC-06-9). These applications are
based upon settlement agreements reached between PacifiCorp and the representatives of the
customers served under the respective schedules. Petition at 2. These three cases are currently
out for public comment.
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 in the upcoming legislative session 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.
Consequently, the purpose of the present Petition is to comply with the Stipulation and
allow CAP AI and other interested parties to comment on the "costs and benefits" of the
Company s Low Income Weatherization Program.
DECISION MEMORANDUM - 2 -SEPTEMBER 22, 2006
STAFF ANALYSIS
Attached to the Petition are the copies of the Stipulation with CAP AI and an analysis of
the cost effectiveness of the Low Income Weatherization Program conducted in 2005.
Supporting testimony was filed September 15 2006.
Staff agrees with CAP AI's suggestion for a prehearing conference, and believes that an
informal conference of the parties to discuss dates and procedures for discovery, testimony
filings and a hearing would be beneficial.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of the Petition and direct Staff to
schedule an informal conference with the parties to discuss dates and procedures for discovery,
filings and hearings in this case.
COMMISSION DECISION
Although seven days has not passed, does the Commission wish to grant CAP AI's
Petition to Intervene?
Does the Commission wish to issue a Notice of Petition?
Does the Commission wish the Staff to convene an informal conference of the parties to
discuss dates and procedures in this case?
Anything else?
udmemos/rocky mm Schedule 21
DECISION MEMORANDUM - 3 -SEPTEMBER 22, 2006