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HomeMy WebLinkAbout20090507final_order_no_30793.pdfOffice of the Secretary Service Date May 7 2009 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR AUTHORITY TO REVISE ITS EXISTING SCHEDULE NO. 72A IRRIGATION LOAD CONTROL CREDIT RIDER DISPATCH PROGRAM. ORDER NO. 30793 CASE NO. P AC-09- On February 11 , 2009, PacifiCorp dba Rocky Mountain Power filed an Application with the Commission seeking authority to revise its Schedule 72A Irrigation Load Control Credit Rider Dispatch Program. More specifically, the Company requests changes to tariff Sheet Nos. 72A., 72A.2, 72A.3 and 72A.4. On March 16, 2009, the Commission issued a Notice of Application and Modified Procedure setting a 30-day comment period and suspending the Company s proposed effective date of March 13 , 2009. Order No. 30747. Staff and the Idaho Irrigation Pumpers Association, Inc. (IIP A) were the only parties to file comments. After reviewing the Application, revised tariff submission, and comments, we approve the proposed and revised changes to the Company s Schedule 72A. THE APPLICATION Rocky Mountain Power seeks to revise its Schedule 72A Irrigation Load Control Credit Rider Dispatch Program. Tariff Sheet No. 72A.l addresses the purpose of Schedule 72A. The proposed change provides the Company s rationale for preseason Internet access. Tariff Sheet No. 72A.2 addresses load control service credit.The Company proposed modifications would allow the Company to issue a credit in lieu of a check for the Load Control Service Credit ("LCSC" or "credit"), at its discretion, at the end of the season. Additional language was added to clarify how average demand is calculated when two years of usage history is unavailable. Language was also added to indicate that the tiered credit was designed to promote program participation. A revision was included to correct the notification date for participation from February 15 to April 15. The proposed changes to tariff Sheet Nos. 72A.3 and 72A.4 add language to clarify the Company s notification procedures for a dispatch event and revise language to the liquidated ORDER NO. 30793 damages section from actual prices paid by the Company for replacement power to the day ahead on-peak price at Four Corners as quoted at the Intercontinental Exchange (ICE). THE COMMENTS Staff reviewed the proposed changes and found that the majority of the modifications were minor and provided additional clarity to the rate schedule with the exception of Sheet 72A.2. As originally proposed, Sheet 72A.2 changes not only marked a significant departure from current Company practices, but also lacked any parameters as to when the Company would issue a credit to a program participant's account in lieu of a check. Specifically, the Company Application allowed for "discretion of the Company" as to whether a check or credit was issued for participation in the Load Control Credit Rider Dispatch Program. During a telephone conference held on April 3 , 2009, in which the Company, IIP A and Commission Staff participated, IIP A and Staff indicated they were in support of more definitive language regarding check issuance versus credit. Staff suggested that a proper limit for arrearage, and thus credit issuance, be between 30 and 60 days from the end of the program season. The Company subsequently submitted revised language for Sheet 72A.2 providing that: The (Load Control Service Credit) for a participating site shall be calculated and issued to the participating customer in the form of a check, or as a credit against the participating site account if an outstanding account balance exists that is 30 days or more past due two weeks before the credit issuance. Staff found the new language to be a reasonable accommodation in terms of the LCSC and account arrearage. Therefore, Staff recommended the Commission adopt the undisputed changes to Sheet Nos. 72A., 72A.3 and 72A.4, and the revised submission for Sheet 72A.2. IIP A was concerned with the initial submission by the Company that allowed for discretion" in issuing a credit versus a check for participants with outstanding account balances. Following the telephone conference and revised submission of Sheet 72A.2 by the Company, IIP A submitted comments indicating its belief that the Company should be able to offset delinquent accounts with the LCSC to avoid additional collection costs that might otherwise be allocated to the irrigation class in future rate cases. Consequently, IIP A supports the Company revised, more explicit language for Sheet 72A.2. COMMISSION FINDINGS Having fully reviewed the Application and comments in this proceeding, we approve Rocky Mountain Power s Application for authority to revise its Schedule 72A Irrigation Load ORDER NO. 30793 Control Credit Rider Dispatch Program. Changes to Sheet Nos. 72A.l , 72A.3 and 72A.4 are primarily housekeeping measures that provide additional clarity to the schedule. The revised language in Sheet No. 72A.2 provides adequate certainty regarding whether a credit or check will be issued to program participants. This change is beneficial to the Company and, ultimately, the irrigation class as a whole. In conclusion, we find the changes to Rocky Mountain Power s Schedule 72A to be reasonable and appropriate. ORDER IT IS HEREBY ORDERED that Rocky Mountain Power s Application to modify its Schedule 72A Irrigation Load Control Credit Rider Dispatch Program is granted. IT IS FURTHER ORDERED that the changes approved by this Order become effective on June 1 , 2009. The Company shall notify its participating customers of the modifications to Schedule 72A through an individual mailing to each program participant. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 9 61-626. ORDER NO. 30793 DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ft. day of May 2009. 11 ~ PTON SIDENT ----- MARSHA H. SMITH, COMMISSIONER ~ A9;MMACK A. REDFORD, COMMISSIONER ATTEST: O:PAC-09-01 ks2 ORDER NO. 30793