20081110Complaint.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKNG FILE PA---£ -D~ ~êJ9'
FROM:DANIEL KLEIN
DATE:NOVEMBER 6, 2008
FORMAL COMPLAINT OF MARIAN MATHEWSON AGAINST ROCKY
MOUNTAI POWER
RE:
On September 15,2008, the Commission received a "formal" complait (Attachment 1)
from Maran Mathewson against Rocky Mountain Power. Ms. Mathewson believes Rocky
Mountan Power's remote facilty fee is unfair and punitive. Ms. Mathewson was unatisfied
with the outcome of the informal procedures to resolve her complaint and have filed this formal
complait.
BACKGROUND
The Commission received an informal complaint from Marian Mathewson who lives at
3125 Harkness Canyon Rd. near McCamon, Idaho. Curently, Ms. Mathewson is powering her
home with solar and wind. She is in the process of sellng her house and is now interested in
. gettng servce from Rocky Mountain Power (RP). When she initially contacted the
Commission last year, she ha not received a quote from RM. Daniel Klein instrcted her to
contact the Company and have them prepare a quote on the costs to obtain service from RMP.
Ms. Mathewson received a ballpark quote from RMP in December 2007. Ms. Mathewson has
taen exception with RMP's practice of chaging a monthly facilties charge at propertes that the
Company considers to be remote.
Under Rocky Mountan Power's current taff, Ms. Mathewson will be charged $19,867
(ballpark figure) for a line extension approximately one mile in length. She will then be charged
for her actual energy usage and a monthly facilities charge. The monthy facilities chage is
DECISION MEMORANDUM - 1 -NOVEMBER 6, 2008
$180 (1.67% of the customer's allowance of $2,805 + .67% of the customer's line extension cost
of $19,867) minus 20% of her usage. The applicable taff provisions (Attchment 2) apply to
service locations more than one-half mile from existing distibution facilties. It is Stas
understding that this monthly charge is designed to recover potential operation and
maintenance expenses following constrction of a line extension. The charge would be assessed
for as long as service is taken at ths address or other customers move into the area and reduce
the distce between Ms. Mathewson and the closes curnt customer.
STAFF RECOMMENDATION
Ms. Mathewson is not satisfied with the outcome of the inormal complaint.
Consequently, she has filed a formal complaint. See Rules 23,25 and 54, IDAPA 31.01.01.023,
.024 and .054.
Sta recommends that the Commssion isse a sumons to Rocky Mounta Power
directing the Company to file a respnse to the Complaint.
COMMSSION DECISION
Does the Commission wish to accept Ms. Mathewson's formal complaint? Does the
Commission wish to issue a Summons?
G~
Daniel Klein
DK:udinmoslMathewson fonnal coplaint dec memo
DECISION MEMORANDUM - 2-NOVEMBER 6, 2008
Idao Public Utities Commssion
P.O. Box 83720
Boise, il 83720~0074
Att: Jean Jewell, Commsion Secreta
RfCetVED
2ll SEP i 5 AM 8: 23
IDAHO PU6LlC .
UTILITIES COMMISSION
Septeber 12,2008
Dea Ms. Jewell,
I have an issue with the remote facilty fee policy of Rocky Moun Power. I hae be
working with Danel Klei from your offce since November 30, 2007 and he recently
decided that it would be best for me to fie a formal complat. Ths is tht form
complait.
Rocky Mounta Power chages a "remote failty fee" for homes farer th ~ mile
from the là power source. The most reent quote on ths fee was $180 per mont plus
whatever power is used that month. Accordig to Joureyman estiator Rex Kenda, .
ths fee never goes away uness at some point Rocky Mounta Powe decides to reove
it.
My contention is that th fee is unai and puntive for the followig reasns: .
1. Ida Power does not chage a sim fee no mater how far power is taen. (Dave at
800-488-6151 ext 7745). I do not hae an opton on power companes; thereore, I am at
the mercy of Rocky Mounta Power if I want to have grd power.
2. The line, whch would be bured, is unely to nee matece which th compy
clais is the reason for the fee. If the line were to be daaged accidentaly, th pen
would be liable. It is unikely that such daage would occur secry. I am reponsible
for diggig and filling the trch. Rocky Mounta Powets lat quote for layig the
lie was $19,867. There is no cost to Rocky Mounta Powe for th inon tht I
can detene. .
3. Ths fee is forever or unti the compy dedes to elimte it. How likely is th to
hape? Wht if! decide to ret to wid and sola power alone, which I have done for
the pa 9 year? I would be forced to be a customer wher I wat to be or not. Wh
about fue owners? Would they be forc to be cuer as well?
Attachment 1
Page.! of2
I believe tht ths is simply a fee th the company charges beaus they ca. It makes
no sene except corporate gree. One home 8/10 of a mile frm the la power sour
poses no politica dager to the company and could be a soure of adde income.
I have ben on wid and solar powe sice 1999 atd woud lik th flexibity of having
a grd-tie system, but Rocky Mounta Power is making th impossble. As a widow On a
teacher's peon, I canot aford an elecc bil plus $180 eve assum tht the fee
would sty at th rate. It would se th in spite of al of th ta abut "savig ener"
and "being gr" when it comes to someone who is acly doin it, the deck is rey
stacked agai her.
I as asking the Idao Púlic Utilities Commssion to look into ths matter and to reove
ths puntive, unonale fee from Rocky Mounta Custome in genera and me
specifcaly.
Sincely, C". _ i . . -'~1~~
Maan Maewsn
3125 E. Haess Canyon Rd
McCamon, il 8325~1555
208-254-3978
Attchment 1
Page 2 of2
~~~~OUNTAIN IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
I.P.U.C. No.1 Original Sheet No. 12R.l
ELECTC SERVICE REGULATION NO. 12
STATE OF IDAlO
Line Extensions
1. CONDITIONS AN DEFINTIONS
(a) Contracts - Before building an Extension, the Company may requir the Applicant to sign
a contrct Where a tenant occupies the service location, the Compåny may require the
propert owner to sign the contract.
(b) Contract Minimum Biling - The Contrac Minimum Biling is the grter of: (1) the
Customets monthly bil; or (2) 80% of the Custmets monthly bil plus the Facilties
Charges. Customers on a seasonal rate receive an annual Contract Minimum Biling of the
greater of (1) the Customets anual bil; or (2) 80% of the Customets annual bil plus the
Annual Facilties Charge. The Annual Facilties Charge is twelve (12) ties the Facilties
Charges. Any Contracted Minimum Bilings shall begin ùpon the date service is first
delivered or 30 days afer the completion of the extension whichever occurs first, as
determined by the Company, unless a later date is mutually agreed upon.
(c) Engineering Costs --The Company includes designg, engineering and estimating in its
Extension Costs. The Company wil provide these services at no charge unless, in the
Company's judgment, it determines the extension is large, complex or speculative. For
large, complex or speculative Extensions, the Applicant or Customer must advance the
Company s esimated Engineering Costs, but not less than the minimum specified in
Schedule 300. The Company will apply this advance payment to its Extension Cost. If the
Extension Allowance exceeds the Extension Costs, the Company wil refud the excess up
to the amount .of the Applicat's or Customer's advance.
(Continued)
Submitted Under Advice Letter No. 06-06
ISSUE: August 14, 2006 EFFCTI: September is, 2006
Atthment 2
Page 1 of6
"~~OUNTAIN IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
LP.U.C. No.1 Original Sheet No. 12R.2
1. CONDITIONS AN DEFIONS (continued)
(e) Engineerig Cos - (contiued)
If the Applicant or çustomer reùes chages that reuir additional estimates, they must
advance the Company's estited Engineering Cost, but not less than the minimum
specified in Schedule 300 for eah additional estimate. The Company wil not refund or
credit this payment.
(d) Extension - A branch frm, a contiuation of, or an increase in the capacity of, an existing
Company owned tranision or distrbution line, where a lie has not been removed, . at
customer request, within the last 5 years. An extension may be single-phase, three-phae or
a conversion of a single-phase line to a thee-phae line. The Company wil own, operate
and maintain all Extensions mae under this regulation.
(e) Extension Allowance - The Extnsion Allowance is the porton of the Extension that the
Company provides or allows without cost to the Applicant. The porton wil var with the
class of service that the Applicant reqest. The Extnsion Allowance does not include
cost resulting from: aditonal voltaes; duplicate facilties; additional points of delivery;
or any other Applicat reues facilties th ad to, or substitute for, the Company's
stadard consction methods or preferred . route. An Extension Allowance wil be
provided only if the Company has reasonable assurance as to the permanent contiuation of
required revenue. The Extesion Allowance is not available to customers receiving electrc
service under special pricing contracts.
(t) Extension Costs - Extension Costs ar the Company's total costs for constucting an
Extension using the Company's standard constrction methods, including services,
trsformers and meters, labor, materials and overhead.
(g) Extension Limits - The provisions of this regulation apply to Line Ex.tensions that require
stadard construction and wil produce suffcient revenues to cover the ongoing costs
asociated with them. The Company will consct Line Extnsons with special
requirements or limited reenues under the term of special contracts.
Exaples of spcial requirments include, but are not limited to, unusual cos incurred for
obtaining rightsof-way, overtime wages, us of special equipment and facilties,
accelerated work schedules to meet the applicants request or non-stadard constrction
requirements.
(Contiued)
Submittd Under Advce Lett No. 06-06
ISSUED: August 14,2006 EFFCTlV: September 15,2006
. Attachment 2
Page 2 of6
~~~OUNTAIN IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
I.P.U.C. No.1 Original Sheet No. 12R.3
1. CONDmONS AN DEFIONS (continued)
(h) Facilties Charges - The Facilities Charges are those costs associated with the ownership,
operation and maintenance of facilities built to provide service and are in addition to rate
schedule bilings. Schedule 300 specifies the Facilties Charges.
(i) Permanent Service - Service to Customers where the Company is assured of continued
use for more than five years, unless a contrct specifes otherwise.
G) Restrictions -- The Company's Extension of facilties is subject to restictons imposed
during war or other emergencies, by the laws of the United States, the State of Idaho, by
executive and administrtive proclamtions, by orders or regulations of the Commission or
by any lawfl requirement of a governmental body.
(k) Routes, Easements and Rightsof-Way -- The Company wil select the route of an
Extension in cooperation with the Applicant. The Applicant must pay all costs of complete,
unencumbered, rights-of-way, easements, or licenses to use land, and for any preparation or
clearing the Company may require. The Applicant may acquire and prepare these il a form
acceptable to the Company, or if requested by the Applicant, the Company wil do so at the ,.
Applicats expense.
(I) Regulation Previously in Effect - Rule changes do not modify existing Extension
contracts. If a Customer advanced funds for an Extension under a regulation or a contract
previously in effect, the Company wil mae refuds for additional Customers as specified
in the previous regulation or contract.
(m)- Service Conductors - The secondar-voltage conductors extending from the pole line, the
underground secondar-voltage main, a secondar-voltage transformer, or a secondar-
voltage switch cabinet to the Point of Delivery.
(Continued)
Submitt Under Advice Leter No. 06-06
ISSUED: Augus 14, 2006 EFFEClIV: September 15,2006
Atthment 2
Page 3 of6
"~ROCKYMOUNTAIN
POWER
A DION OF PAFlCO
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
I.P.U.C. No.1 Original Sheet No. 12R.4
2. RESIDENT EXTENSIONS
(a) Standard Residentil
(1) Extension Alowances
The Extension Allowa for st residenti applications includes trformation
facilties, mete and Service Conductrs. Traformtion facilities and Servce Conductors
may sere more th one cuomer.
Traformaton facilties for overhead syms include the tranormer, associated
fues, lightnng aresters, grounds and supportng racks. The Company, at its
discretion, may substitute seconda voltage conductors for transformation
facilties. Tranformation facilities for underground systems include the.
transformer and grounds.
The Service Conductor allowance includes the conductors, connectors and other
equipment necessar to mae the servce connection. This allowance provides a
maum of 100 liuea fee from a pole, connection box or trsformer to the Point
of Delivery.
The Applicat must advance the cost exceding the Extension Allowance prior to
the sta of constrction.
(2) Additional Customers, Advances and Refunds
A Customer that pays for a porton of the constrction of an Extension may receive
refunds if additional Customers connect to the Extnsion. The Customer is eligible
for refunds during the first five (5) years following constrction of an Extension.
The cost responsibilty shall be 100% for the first Customer and shall decrease by
20% for each successive Customer for shared facilties. Payments made to the
Company by each successive Applicant shall in tu, be refuded by the Company
to the most reent previous Applicant.
(b) Remote and Seasonal Servce and Servce to Unimproved Subdivisions
(1) Extension Alowances
Residential customers defined as Remote or Seaona Service customers or those
located in Unimproved Subdivisions, have the same Extension Allowance as
Stadard Residential Cutomers.
(Contiued)
Submitted Under Advice Letter No. 06-6
ISSUE.: August 14,2006 EFFCT: September 15,2006
Attachment 2
Page 4 of6
,
~~~~OUNTAIN IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
I.P.U.C. No.1 Original Sheet No. 12R.5
2. RESIDENTIA EXTENSIONS
(b) Remote and Seasonal Service and Service to Unimproved Subdivisions (contiued)
(2) Contracts
The Company wil make Extensions for Remote or Seasonal Residential Service or
in an Unimproved Subdivision according to a written contract. The contract wil
require the Applicant to advance the estimated cost of facilties in excess of the
Extension Allowance. The Applicant shall also pay a Contract Minimum Billng
for as long as service is taken, but in no case less than 5 years.
(3) Additional Customers, Advances and Refunds
Customers that pay a portion of the constrction of an Extension may receive
refunds if additional Applicants connect to the Extension. The Customer is eligible
for refunds durig the first five (5) yea following construction of the Extension.
The cost responsibilty shall be 100% for the first customer and shall decrease by
20% for each successive customer for shared facilties. Payments made to the
Company by each successive Applicant shall, in tum, be refunded by the Company
to the most recent previous Applicant. Customérs in unimproved subdivisions
platted prior to Januar 1, 1997, where electrical service had not been provided to
any customer prior to that date, have a refund period often (10) years.
Additional Applicants must share the Facilties Chages of existing Customers.
Additional Applicants also must pay the estimated cost of any facilties exceeding
the Extension Allowance.
(c) Three Phase ResidentialServce
Where thee phase residential service is reuested, the Applicat shal pay the difference in
cost between single phase and three phase service.
(d) Underground ExtensionsThe Company wil constct line Extensions undergound when requested by the Applicant
or if required by locl ordinace or conditions. The Applicant must pay for the conversion
of any existing overhead facilties to undergrund, under the tenus of Secion 6 of this
regulation. The Applicant must provide all trenching and backflling, imported backfll
material, conduits, and equipment foundations that the Company requires for the Extension.
If the Applicant requests, the Compay wil provide these items at the Applicant's expense.
(Continued)
Submitt Under Advice Lett No. 06-06
ISSUD: Augut 14, 2006 EFFECTIV: September 15,2006
Atthment 2
Page 5 of6
~
"ROCKY MOUNTAIN
~~2~~~ORP
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 15, 2006
Jean D. Jewell Secretary
LP.U.C. No.1 Orinal Sheet No. 300.3
ELECTRC SERVICE SCHEDUL NO. 300 - Continued
Sheet No.
12R.3
12R.4
12R6 .
12R.11
12R.13
25R.l
25R.2
25R.2
25R.2
Description
Facilties Charges
Facilties Installed at Customer's Expense
Facilities Intaled at Company's Expese
Charge
0.67% per month
1.67% per month
Residentil Extension Advance Cost in excess of transformers,
meter and service installation.
Non-reidetial Exnsion Advance Cost in excess of$90 per kW of
estimated demand.
Temporar Service Charge:
Service Drop and Meter only
(Charge is for connection and
disconnection)
Single phase: $ 85.00
Thee phase: $115.00
Contrt Admation Allowance $250
Cusomer Guarantee Credit 1:
Restoring Supply Afer an Outae
For each additional 12 hours
$50.00
$25.00
Customer Guartee Credit 2:
Appointments $50.00
Customer Guarantee Credit 3:
Switching on Power $50.00
Customer Guaantee Credit 4:
Esmates for New Supply $50.00
Submitt Under Advice No. 06-06
ISSUED: August 14, 2006 EFFECTI: Septeber 15, 2006
Attachment 2
Page 6 of6