20101014Thaden Di.pdf

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IN THE MATTER OF THE APPLICATION OF )
PACIFICORP DBA ROCKY MOUNTAIN ) CASE NO. PAC-E-10-07
POWER FOR APPROVAL OF CHANGES )
TO ITS ELECTRIC SERVCE SCHEDULES )
)
)
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DIRECT TESTIMONY OF CURTIS THADEN
IDAHO PUBLIC UTILITIES COMMISSION
OCTOBER 14, 2010
1
2 for the record.
Q.Please state your name and business address
3 A.My name is Curtis Thaden. My business address
4 is 472 West Washington Street, Boise, Idaho.
5
6
Q.By whom are you employed and in what capacity?
A.I am employed by the Idaho Public Utilities
7 Commission as a Utili ties Compliance Investigator. I
8 accepted that position with the Consumer Assistance Staff
9 in July 2007.
10 Q.What is your professional and educational
11 background?
12 A.Prior to my employment with the Idaho Public
13 Utilities Commission, I had eighteen years experience
14 working in private industry for Hewlett Packard in a
15 variety of manufacturing positions. I received an
16 Associate of Science Degree in Electronic Engineering
17 Technology from Links School of Business (now known as ITT
18 Technical Institute) in Boise, Idaho, in September of 1983.
19 Additionally, I am a licensed real estate agent in the
21
20 State of Idaho.
22 Commission?
Q.Have you previously testified before the
23
24
A.Yes, I have.
Q.What is the purpose of your testimony in this
25 proceeding?
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 1
STAFF
1 A.i will be addressing the following:
2 (1) demographics of the 13 Idaho counties in Rocky Mountain
3 Power's (RMP) service territory; (2) factors affecting
4 customers' ability to pay their bills; (3) programs
5 offering financial assistance to RMP's Idaho customers;
6 (4) programs, payment plans and payment arrangements
7 offered by RMP to its customers; (5) energy conservation
8 education for low income customers; and (6) Low-Income
9 Weatherization and other Energy Efficiency Programs.
10 Q.Please summarize your recommendations to the
11 Commission as discussed in your testimony.
12 A.Staff recommends that the Commission:
13 (1) direct Rocky Mountain Power to ensure that the Company
14 more effectively communicates information regarding the
15 Idaho Moratorium and the Winter Payment Plan to its
16 customers by revising its annual Customer Information
17 brochure and providing bill inserts with disconnect
18 notices; 2) encourage the Company to increase funding for
19 the Lend-A-Hand program by making changes to the way
20 customers can contribute; 3) direct Staff to convene a
21 workshop to examine how best to provide energy conservation
22 education to low income customers; and 4) provide no
23 additional funding for low income energy conservation
24 education at this time.
25
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 2
STAFF
1 Demographics and Factors Affecting Bill Payment
2 Q.Has the Staff prepared a demographic profile
3 of Rocky Mountain Power's service territory in Idaho?
4 A.Yes. Exhibit No. 115 includes both
5 demographics obtained from the most recent Census Bureau
6 data and unemployment data obtained from the Idaho
7 Department of Labor for each of the counties served by
8 Rocky Mountain Power. For comparison, this Exhibit also
9 includes statistics for the State of Idaho and the United
10 States. Exhibit No. 116 shows the 2010 Federal Poverty
11 Level (FPL) Guidelines. For purposes of Staff's analysis,
12 income at or below 100% of poverty was used. A map of the
13 13 counties served by Rocky Mountain Power can be found in
14 Exhibit No. 117.
15 Q.In reviewing the data, what stands out as
16 particularly noteworthy?
17 A.The 13 counties that comprise the area that
18 Rocky Mountain Power serves have the state's lowest average
19 unemployment rate (7.3%) i. Seven counties have poverty
20 rates exceeding the statewide average (12.5%). The low
21 unemployment rate coupled with high .poverty rates suggest
22 that these counties have a large percentage of "working
23 poor", individuals who are employed but unable to meet
24 life's basic needs (food, clothing, shelter...) due to low
25 lThough RMP's region has the lowest average unemployment rate in the
state, the region's unemployment has doubled during the past two years.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 3
STAFF
1 wages, inadequate benefits, and little opportunity of
2 economic advancement . Relatively low paying jobs in these
3 largely rural and agricultural communi ties help explain the
4 situation.
5 Twelve out of the 13 counties within the
6 service territory are below the July 2010 seasonally
7 adjusted state average unemployment rate of 8.8%.2 Five of
8 these 12 counties (Bear Lake, Butte, Franklin, Oneida and
9 Teton) have unemployment rates less than 6.8%, ranking
10 among the lowest unemployment rates in the state.
11 Regarding the region's average poverty rate,
12 seven of the 13 counties exceed the state average of 12.5%.
13 Five counties (Bannock, Butte, Clark, Lemhi, and Madison)
14 have poverty rates in excess of 14 %, ranking them in the
15 state's top twenty counties with the highest poverty rates.
16 Three of these counties (Clark, Lemhi, and Madison) rank in
17 the top ten. Madison County has the highest poverty rate
18 in the state, a staggering 25.1%, although that may be
19 affected by the BYU Idaho student population. The poverty
20 data used in this demographic profile dates back to 2008.
21 Current poverty rates are likely to be much higher due to
22 the sharp rise in unemployment that has occurred in the
23 region and across the state during the last two years.
24 Those who fall below the Federal Poverty Levels are now
25 2 At the time this testimony was written, the most recent unemployment
data available was from July 2010.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 4
STAFF
1 likely to be full-time workers who are unable to earn
2 enough to meet life's basic needs or are middle class wage
3 earners who have either lost their job or had diminished
4 incomes. 3 These individuals face high energy burdens. 4
5 Q. Do the Federal Poverty Level Guidelines
6 reflect an accurate gauge of poverty in the United States
7 and Idaho?
8 A.Not necessarily. The 100% of poverty level is
9 regarded by social service organizations as underestimating
10 what it costs to maintain a basic standard of living.
11 Realizing this, federal and state agencies charged with the
12 responsibility to protect human health and welfare set
13 household income eligibility limits for social service
14 programs at levels that exceed the Federal Poverty
15 Guideline's benchmark of 100% of poverty.
16 As previously stated in my testimony, seven of
17 the 13 counties in Rocky Mountain's service terri tory
18 exceed the state average poverty rate of 12.5%. However,
19 since the Federal Poverty Guideline is regarded as an
20 underestimation, the actual number of those who live in
21 poverty in Rocky Mountain Power's service territory is even
22 greater.
23
24 3 Source: Idaho Statesman (9/17/10), article titled, "Census: 1 in 7
Americans lives in poverty."4 Energy Burden is the percentage of a household's income that is spent
on all home energy expenses, which includes all energy used for space
heating and cooling, lighting, and water heating.
25
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 5
STAFF
1 An example of the underestimation of those
2 living in poverty can be seen by comparing the Federal
3 Poverty Level Guideline's (FPL) estimation of Idaho
4 households living in poverty to the state's LIHEAP (Low
5 Income Home Energy Assistance Program) estimation of those
6 living in poverty and eligible for financial assistance.
7 Under the FPL, 54,829 households in Idaho are below 100% of
8 poverty. 5 Under Idaho's LIHEAP Program calculations (which
9 were based upon 150% of poverty), 106,481 households
10 qualify for benefits6. The difference between these two
11 estimates is 51,562 households statewide.
12 Q.What conclusion can be drawn from these
13 demographics?
14 A.Customers who are living in poverty and/or are
15 unemployed have limited or diminished financial resources
16 with which to pay utility bills. Given the ongoing
17 economic turmoil, Staff believes that the Census data,
18 al though somewhat lagging, provides a fairly good picture
19 of RMP' s customers today. In fact, there is reason to
20 believe that customers may be worse off in the future.
21 Staff is concerned that a significant number of RMP's
22 customers will have problems paying their electric bills,
23
24 5 Source: LIHEAP Home Energy Notebook for FY 2007: Appendix B: Income
Eligible Household Estimates. Average of 2006, 2007, 2008 State-level
estimates for Idaho.6 Source: On the Brink 2009 i The Home Energy Affordability GAP April
2009 ¡published 2010 Fisher, Sheehan & Coltron.
25
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 6
STAFF
1 especially when faced with increasing rates.
2 Q.What do you see as the greatest threat that
3 could impact the ability of customers to pay their utility
4 bills?
5 A.Unemployment continues to be a great concern.
6 Current Idaho Department of Labor data as of July 2010
7 shows a continued and sustained high unemployment rate,
8 which now stands near the highest levels in 27 years
9 (8.8%).
10 An increase in the unemployment rate can lead
11 to an increase in the percentage of RMP customers who fall
12 below the Federal Poverty Level. As a result, more strain
13 will be placed upon agencies that provide financial
14 assistance for payment of utility bills. The number of
15 disconnections has the potential to increase as people
16 experience difficulty paying their bills. Even people who
17 were high wage earners can find themselves in a tight
18 financial situation following a layoff. Higher
19 unemployment, rising fuel costs and increasing food costs
20 are additional stresses that will have an impact on
21 people's finances.
22 Q.Has the number of Past Due and Final Notices
23 sent to customers increased or decreased?
24 A.The total number of Past Due and Final Notices
25 sent to Idaho residential customers has fluctuated over the
CASE NO. PAC-E- 10 - 0710/14/10 THAEN, C. (Di) 7
STAFF
1 past 3 calendar years (2007-2009), with the net result
2 being an overall increase. Past Due notices sent to
3 customers increased by 8.5% and Final Notices sent to
4 customers increased by 11%. In comparison, Past Due
5 notices sent to low income customers (defined here as
6 customers who have received energy assistance benefits
7 within the past 12 months) increased by 49% and Final
8 Notices sent to customers receiving energy assistance
9 increased by 50%. The two tables below reflect the amount
10 of Past Due and Final Notices sent to customers.
11
12
13
14
15
16
Year
2007
2008
2009
Past Due Notices Sent
Non Low Income
56,141
61,927
59,961
to Residential CustomersLow Income Total2,427 58,5683,229 65,1563,615 63,576
Year
2007
2008
2009
Final Notices Sent to
Non Low Income
46,389
51,501
50,529
Residential CustomersLow Income Total2,069 48,4582,771 54,2723,118 53,647
17 The increase in notifications is indicative of customers
18 struggling to make their payments in a timely manner or to
20
19 even be able to make their payments at all.
Q.Has the number of customers who have been
21 disconnected for non-payment increased or decreased?
22 A.The total number of Idaho Rocky Mountain Power
23 residential customers disconnected for non-payment has
24 steadily increased over the past three calendar years
25 (2007-2009) from 2,021 to 2,490. This represents a 23%
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 8
STAFF
1 increase in the number of disconnections. During the same
2 time period, the number of customers receiving energy
3 assistance who were disconnected for non-payment increased
4 from 160 to 245, a 53% increase. Customers who received
5 energy assistance comprise a small percentage of the total
6 number of disconnections in each calendar year. This
7 suggests that disconnection of service due to non-payment
8 is not an issue for low income customers only. The table
9 below reflects the number of customers who were
10 disconnected during the last three years.
11
12
13
Year
2007
2008
2009
Disconnections for Residential Customers
Non Low Income Low Income
1,861 (92%) 160 (8%)1,992 (91%) 196 (9%)2,245 (88%) 296 (12%)
Total
2,021
2,188
2,490
14 As the economic downturn continues and more customers
15 struggle financially, it is apparent that there is a
16 greater need to provide help for those seeking financial
17 assistance within the community. This also presents an
18 opportuni ty for RMP to address the issue of disconnects due
19 to non-payment. As discussed later in this testimony, RMP
20 has taken a first step to address the issue of disconnects
21 resulting from non-payment. Staff encourages RMP to
22 continue its efforts.
24
23 Programs Offering Financial Assistance
Q.What resources are available to help customers
25 pay their energy bills?
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 9
STAFF
1 A.The Low Income Home Energy Assistance Program
2 (LIHEAP) is funded by the federal government through a
3 grant to the State of Idaho. Unlike the situation in other
4 states, state government funding is not available in Idaho
5 to help customers pay energy bills at any time of year.
6 For the 2009/2010 heating season, Staff
7 anticipated a decrease in federal funding for LIHEAP.
8 During the previous heating season (2008/2009), what was
9 thought to be a one-time funding increase to the yearly
10 LIHEAP grant occurred?, allowing for larger benefit amounts
11 to be given to each participant. In addition, eligibility
12 guidelines changed to allow for more households to
13 participate in the LIHEAP program. The level at which a
14 household was eligible to receive assistance changed from a
15 maximum of 150% to 160% of the Federal Poverty Level
16 Guidelines.
17 Instead of returning to the normal historical
18 funding level, federal funding for LIHEAP for the 2009/2010
19 winter heating season remained the same as that of the
20 2008/2009 heating seasons. Due to the ongoing economic
21 downturn in the economy, eligibility guidelines were
22
23
7 An increase in LIHEAP Funding for 2008/2009 heating was authorized on
September 30, 2008, by HR 2638, The Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009. As a result, funds
available to state of Idaho for the winter heating season increased
from $12,376,499 to $29,939,480.8 Funding for the 2009/2010 heating season continued to fund at a
record level of $26,939,480 which was authorized on December 19, 2009
by HR 3288, The Consolidated Appropriations Act of 2010.
24
25
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 10
STAFF
1 changed to be in alignment with the Weatherization
2 Assistance Program eligibility guidelines. The level at
3 which a household is eligible to receive assistance changed
4 from a maximum of 160% of the Federal Poverty Level
5 Guidelines to 60% of the estimated state medium income9.
6 (Estimated state income is close to 175% of the Federal
7 Poverty Guidelines). The higher funding level and change
8 in the eligibility guidelines allowed for more households
9 to participate in the LIHEAP program.
10 At this time, Staff is uncertain whether
11 future LIHEAP funding will increase, decrease or stay at
12 current funding levels.
13 For the 2009/2010 winter heating season,
14 $1,058,386 in LIHEAP funding was distributed to 1,474 Rocky
15 Mountain Power customers in Idaho to help pay home heating
16 bills. The average amount paid to each participant was
17 $598. Both the benefit amount given to each participant
18 and the number of participants were at an all time high.
19 The table below reflects the number of Rocky Mountain Power
20 customers in Idaho who received LIHEAP benefits and the
21 average dollar amount allocated during the last three
22 heating seasons.
23
24
25
9 60% of estimated state medium income: 1 person family $19,985, 2
person family $24,708, 3 person family $30,522, 4 person family
$36,366, 5 person family $42,150, 6 person family $47,964.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 11
STAFF
1
2
3
4
5
LIHEAP
Program Year Funding
2007/2008 $374,385
2008/2009 $661,2652009/201010 $1,058,386
Funding
Participan ts
1,1781,4741,769
Avg. Benefit
$318
$449
$598
6 needs of low income customers. Therefore, Crisis Funding
LIHEAP does not sufficiently meet the energy
7 benefits are available to customers whose circumstances
8 qualify them for additional financial assistance under
9 LIHEAP. Money is not always available for Crisis Funding.
10 Even when funds are available, the number of people who can
11 be helped is quite small. For the 2009/2010 winter heating
12 season, $5,643 in Crisis Funding benefits was distributed
13 to 16 Rocky Mountain Power customers in Idaho. The average
14 amount paid to each participating customer in 2009/2010 was
15 $353.
16 Q.Are there other programs in place that can
17 help Idaho customers?
18 A.Yes. In Rocky Mountain Power's service
19 territory, two CAP Agencies-Southeastern Idaho Community
20 Action Agency (SEICA) and Eastern Idaho Community Action
21 Partnership (EICAP) -administer both the LIHEAP and Lend-A-
23
22 Hand Programs. The Lend-A-Hand Program provides financial
24
25
10 First year of new Pilot Proj ect that has allowed customers to apply
for LIHEAP benefits throughout the year or until funds run out. Each
year the heating season ends on March 31st which is reflected in the
LIHEAP Chart above. As of 7/30/10, LIHEAP funding is $1,185,395, the
number of participants is 1,960, .and the average benefit amount is
$605.
CASE NO. PAC-E- 10 - 0710/14/10 THADEN, C. (Di) 12
STAFF
1 assistance to RMP customers who use electric space heat as
2 their primary heat source. To be eligible, recipients must
3 be at or below 150% of the Federal Poverty Level
4 Guidelines. Recipients can receive an annual household
5 benefit of up to $600. All money collected, with the
6 exception of administration costs, goes back to the
7 communi ty .
8 In the past three program years (2007-2009),
9 RMP shareholders donated $97,269 to Lend-A-Hand for Idaho;
10 RMP customers in Idaho donated $22,112 and "other sources"
11 donated $907.11 Of the total amount collected ($120,000),
12 $3,000 was paid to the two CAP agencies for administering
13 the program ($500 each annually). The table below reflects
14 total dollar amounts donated by RMP customers and its
15 shareholders in the past three program years (July 1 -
16 June 30) .
17
18
19
20
Fiscal Year
2007/2008
2008/2009
2009/2010
Lend-A-Hand DonationsCustomer\Other Shareholders
$6,413 $33,587$9,283 $30,717$7,035 $32,965
Total Grants
$40,000 140
$40,000 173
$40,000 188
Q.What efforts does Rocky Mountain Power put
21 forth to make its customers and the community aware of
22 Lend-A-Hand?
23
24
25
A.Rocky Mountain Power publicizes Lend-A-Hand
11 "Other Sources" consist of employee donations through the Company's
annual giving campaign and the associated Pacific Corp Foundation
match. Donations: 2007/2008 -$82, 2008/2009-$207, 2009/2010-$618.
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 13
STAFF
1 through its home webpage, on-line payment webpage, customer
2 newsletters, press releases, and monthly customer billings,
3 which include donation envelopes for the months of
4 November, February and June. The program is also part of
5 the Company's annual Employee Giving Campaign. In
6 addition, the Company's call center staff directs customers
7 in need of assistance to SEICA and EICAP.
8 RMP is doing a good job in marketing Lend-A-
9 Hand. Staff encourages the Company to continue promoting
10 the program. Examples of the Company's marketing efforts
11 can be found in Exhibit Nos. 118 and 119. Staff encourages
12 the Company to investigate additional ways to increase the
13 total funding amount, which would also include an increase
14 in shareholder donations, especially in these challenging
15 economic times when more of the Company customers are in
16 greater need of financial assistance and are struggling to
17 pay their utility bills.
18 Q.Does Staff have any suggestions as to how RMP
19 can increase customer donations for the Lend-A-Hand
20 program?
21 A.The donation envelopes that RMP includes with
22 the bills during the months of November, February and June
23 have an Oregon mailing address (Exhibit No. 120). An out
24 of state address might be perceived by Idaho customers as
25 meaning that donations are not necessarily helping Idaho
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 14
STAFF
1 RMP customers, thus potentially decreasing the number of
2 contributions. RMP should consider changing the donation
3 envelope mailing address to an Idaho mailing address.
4 The Company currently provides customers with
5 the option of adding monthly donations in a fixed dollar
6 amount ($1, $2, $5, $10) to each of their electric bills.
7 To do so, the customers must first take the initiative to
8 contact the Company before the next billing cycle to ensure
9 the donation amount is added to the monthly billing
10 statement. To make a one-time donation, the customer has
11 the option of simply increasing their payment amount by a
12 fixed dollar amount when paying their bill. There is a
13 sentence in small print on the billing statement that
14 informs customers of this option. To better bring
15 attention to the opportunity to donate on the monthly
16 billing and to make it easier for customers to make
17 donations, RMP should consider adding a separate Lend-A-
18 Hand section on the monthly billing statement with a
19 donation check off box. A good example of this can be
20 found in Exhibit No. 121.
21 Programs, Payment Plans and Payment Arrangements
22 Q.What utility programs are in place to help
23 customers avoid being disconnected during the winter
24 months?
25 A.Besides LIHEAP and Lend-A-Hand, the Idaho
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 15
STAFF
1 Moratorium and Winter Payment Plan also address this issue.
2 Idaho's Moratorium allows residential
3 customers whose household includes children, elderly or the
4 infirm to be protected from disconnection during the months
5 of December through February if they declare that they are
6 unable to pay their utility bill in full. However,
7 customers are not absolved of paying their utility debt.
8 The Winter Payment Plan allows customers who
9 have declared eligibility for the Moratorium an additional
10 two months of protection (November and March) if they agree
11 to accept and follow through on monthly payments that are
12 equal to half of the normal level pay mount (monthly
13 average of the previous 12 months' billings).
14 A brochure entitled "Consumer Information",
15 wi th information on both the Idaho Moratorium Program and
16 Winter Payment Planì is sent to all residential customers
17 annually. All customers that receive a Final Disconnection
18 Notice during the months of November through February are
19 made aware of the Idaho Moratorium Program via a small
20 printed statement located on the second page of the bill.
21 Staff believes that both the annual brochure and billing
22 statement do not sufficiently focus customers' attention on
23 the critical information being provided.
24 Staff recommends that all residential
25 customers who receive a Final Disconnection Notice during
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 16
STAFF
1 the months of November through February be made aware of
2 the Idaho Moratorium and the Winter Payment Plan through a
3 bill insert with the notice. For those customers who have
4 declared eligibility for the Moratorium, Staff recommends
5 that an insert on the Winter Payment Plan be provided with
6 the December, January and February billings. A good
7 example of a bill insert can be found in Exhibit No. 122.
8 Lastly, concerning the RMP's Consumer Information brochure,
9 the current format contains Idaho Moratorium information in
10 the Disconnection Section. Staff recommends that the
11 Company revise its brochure so that the Idaho Moratorium
12 information is a separate section, similar to the stand
13 alone section for the Winter Payment Plan, thereby
14 decreasing the possibility that this information will be
15 overlooked by customers.
16 Q.Has the number of customers who have declared
17 eligibility for the Moratorium increased or decreased?
18 A.The number of RMP customers in Idaho who
19 declared eligibility for the Moratorium during the
20 2009/2010 winter heating season totaled 929. This
21 represents an 11% increase in comparison to the previous
22 winter heating season (2008/2009) and a 63% increase in
23 comparison to the 2007/2008 winter heating season. The
24 increase in the number of those requesting winter
25 protection could be attributed to more people struggling
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 17
STAFF
1 financially, as was previously discussed in this testimony.
2 Staff anticipates that the number of
3 individuals who declare eligibility for the Moratorium will
4 increase next winter heating season if LIHEAP funding
5 levels are reduced or economic conditions do not improve.
6 Exhibit No. 123 reflects the total number of Moratorium
7 participants in the past three winter heating seasons.
8 Q.Has the number of customers participating in
9 the Winter Payment Plan increased or decreased?
10 A.Of the 929 participants who declared
11 eligibility for the Moratorium in the 2009/2010 winter
12 heating season, only 9% elected to be placed on the Winter
13 Payment Plan. This is significantly lower than the
14 previous winter heating season when 20% of Moratorium
15 participants had a Winter Payment Plan. The number of
16 participants in the Winter Payment Plan over the past three
17 winter heating seasons has averaged only 14 %. The most
18 recent decrease in participation could be attributed to
19 more participants receiving LIHEAP benefits and larger
20 grants, customer inability to make a payment, or a lack of
21 effort by the Company to promote and get customers signed
22 up on the Winter Payment Plan when a customer declares the
23 need for winter protection. Exhibit No. 123 reflects the
24 total number of plan participants and the percentage of
25 customers who signed up for the plan after declaring
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 18
STAFF
1 eligibili ty for the Moratorium in the past three winter
2 heating seasons.
3 Q.Have customers on the Winter Payment Plan been
4 able to successfully pay down their outstanding account
5 balances before the end of the winter protection period on
6 March 31?
7 A.Of the 81 participants who elected to be
8 placed on the Winter Payment Plan during the 2009/2010
9 winter heating season, 100% were not able to meet their
10 monthly payment. In the previous winter heating season, of
11 the 167 participants who elected to be placed on the Winter
12 Payment Plan, 100% were unable to meet their monthly
13 payment. Such high default percentages cause concern about
14 the effectiveness and success of the Winter Payment Plan.
15 Q.Have the number of residential payment
16 arrangement agreements and defaulted payment arrangements
1 7 increased?
18 A.Yes. Although the number of Idaho RMP
19 residential customers increased by over 10% over the past
20 three calendar years (2006-2009), the number of payment
21 arrangements agreements and defaulted payment arrangements
22 increased by much higher percentages. The number of
23 payment arrangement agreements increased by 31% and the
24 number of defaulted payment arrangements increased by 44%.
25 A customer can have more than one payment
CASE NO. PAC-E-10-0710/14/10 THADEN, C. (Di) 19
STAFF
1 arrangement in a given month for an account and customers
2 can have more than one account. Because of this, the
3 number of payment arrangement agreements and payment
4 arrangement defaults do not correlate to the actual number
5 of customers. The table below reflects the number of
6 customers, payment arrangements, and payment arrangement
7 defaults.
8
9
Year
2007
2008
2009
Arrangemen ts
6,1317,999
8,032
Defaults
4,6056,2986,650
Percentage of Defaults
75%
79%
83%
10
11 Q.What can be done to help reduce the number of
12 customers who default on their payment arrangement
13 agreements?
14 A.At this time, Staff is not sure why customers
15 are not meeting the terms of payment arrangements. It may
16 be that a more diligent effort by RMP to provide monthly
17 customer reminder calls would be beneficial, allowing the
18 Company to assess each customer's situation and reinforce
19 to each customer the importance of making the agreed upon
20 payment. However, it may be that customers do not have the
21 money to make payments and have found that agreeing to a
22 payment arrangement is simply a way to delay a pending
23 disconnection. Whether customers are doing so because they
24 feel they have no choice but to agree to terms suggested by
25 the Company, are using payment arrangements as a means to
CASE NO. PAC-E- 10 - 0710/14/10 THAEN, C. (Di) 20
STAFF
1 defer disconnection, or some other reason, more study is
2 required to determine why so many arrangements result in
3 defaul t. During the last three years, the percentage of
4 payment arrangement defaults has remained relatively high,
5 ranging between 75% and 83%. Unless an effort is put forth
6 by the Company to address the reason as to why so many
7 payment arrangements end in default, the number will remain
8 high.
9 Q.What payment options are in place to assist
10 customers who have fallen behind on their monthly payments
11 and are struggling to pay down their arrearages?
12 A.In addition to the Winter Payment Plan, RMP
13 offers the Time Payment Program and the Equal Time Payment
14 Program to customers with arrearages. Both payment plans
15 allow customers up to 12 months to payoff a past due
16 balance. The Time Payment Plan, which is used most often,
17 allows customers the flexibility to pay a past due balance
18 over a 12-month period in addition to their current monthly
19 bills which are based on actual usage. This option differs
20 from the Equal Time Payment Program in that monthly bills
21 are based on arrearage and estimated annual usage with the
22 monthly payment being the same amount each month. Just as
23 with the Time Payment Plan Program, the Equal Time Payment
24 Program allows customers the flexibility to pay a past due
25 balance over a 12 -month period.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 21
STAFF
1 RMP has shown great flexibility in allowing
2 its customers to take up to twelve months to payoff
3 arrearages. For example, of the 5, 314 accounts that were
4 signed up for the Time Payment Program in 2009, 73% (3,894)
5 had arrangements greater than six months. Exhibit No. 123
6 shows the number and percentage of accounts on the Time
7 Payment Program with payment arrangements under six months
8 and at six months or greater.
9 Staff believes that by providing customers
10 with greater flexibility, especially in these challenging
11 economic times, customers who are financially stressed are
12 benefited by being offered a better opportunity to payoff
13 past due balances. As previously stated, more study by RMP
14 is required to determine why so many arrangements result in
15 default. A brief summary of each payment plan offered by
16 RMP can also be found in Exhibit No. 124.
17 Q.What new effort has Rocky Mountain Power taken
18 to educate its customers about the available programs
19 intended to help both lower and pay energy bills?
20 A.In 2009, due to the ongoing recession, RMP
21 stepped up its educational efforts to assist customers.
22 The Company focused on 3 key areas: 1) bill reduction;
23 2) bill management; and 3) financial assistance.
24 The Company's website as well as customer
25 service representatives provide customers with additional
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 22
STAFF
1 energy efficiency tips to help reduce usage, explanations
2 of payment plan options, financial assistance information,
3 and referrals to local agencies.
4 The Company also further publicized its Gift
5 Giving Program by providing information more frequently in
6 the Company's newsletters and monthly bills. The program
7 allows an individual to donate by making a payment on
8 another customer's RMP account. Exhibit No. 125 contains a
9 copy of RMP's "Voices" newsletter that contains a brief
10 summary detailing the program.
11 In February 2009 and February 2010, RMP
12 President Rich Walje wrote a letter to the Editor, which
13 was published by the Post Register in Idaho Falls, Idaho,
14 to encourage customers to contact the Company at the first
15 sign that the customer was having difficulty in paying
16 their bills. Both letters outlined the Company's concern
17 and effort in providing assistance to its customers during
18 the economic downturn. The letters were also sent to local
19 television and radio stations in Idaho. A copy of the
20 February 2010 letter to the Editor can be found in
21 Exhibit No. 126.
22 Q.What other steps has the Company taken to
23 further assist its customers?
24 A.In an effort to help prevent customers from
25 being disconnected, RMP modified its disconnect
CASE NO. PAC-E-10-07
10/14/10
THAEN, C. (Di) 23
STAFF
1 notification process. In addition to the required process
2 that a utility must follow prior to disconnecting a
3 customer12, RMP added 2 additional notification steps to
4 the process. An outbound call is made to the customer 96
5 hours prior to the disconnect date and a 48-hour notice is
6 hand-delivered to the customer's residence.
7 Energy Conservation Education
8 Q.What is the status of the Energy Conservation
9 Education program that was approved by Commission Order
10 No. 30783 in RMP's previous rate case (PAC-E-08-01)?
11 A.As part of the rate case settlement
12 (PAC-E-08-01), RMP agreed to support an Energy Conservation
13 Education program in Idaho by providing $50,000 in annual
14 funding through its DSM tariff rider to SEICA and EICAP.
15 As of October 1, 2010, the program has not yet been
16 implemented.
17 The purpose of the program is to provide
18 conservation education to LIHEAP participants who have not
19 yet received weatherization services. Though RMP is not
20 responsible for the implementation of the program, the
21 Company has attempted to work with Community Action
22 Partnership of Idaho (CAPAI) in developing the program
23
24 12 Rule 309 states that an initial written notice must be mailed to a
customer 7 days prior to disconnection and a final notice must be
mailed 3 day's before the proposed date of termination. 24 hours
before the proposed date of termination, the utility shall attempt to
contact the customer either in person for by phone.
25
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 24
STAFF
1 design, goals, and evaluation criteria. According to RMP,
2 SEICA and EICAP were participating in the development and
3 implementation of both energy conservation education and
4 energy conservation kit distribution for Idaho Power
5 customers, and CAPAI wanted to ensure that the 2 CAP
6 agencies were not overwhelmed by instituting two separate
7 programs. For that reason, CAPAI decided to delay
8 implementation for RMP customers.
9 Staff is concerned that CAPAI, SEICA and EICAP
10 are looking at energy conservation education for RMP and
11 Idaho Power customers as two different and distinct
12 programs. Approaching the program as two separate programs
13 rather than one has the potential to increase the overall
14 cost while reducing the effectiveness of the program. This
15 situation raises the question of whether low income energy
16 conservation education should be provided on a localized
17 utility by utility, CAP by CAP basis. Staff recommends
18 that the Commission direct Staff to hold a workshop with
19 utilities and other interested parties to determine how
20 best to provide energy conservation education targeted to
21 low income customers throughout the state.
22 Q.Of the $50,000 in Energy Conservation
23 Education Funding that was allocated in 2009 and again in
24 2010, how much money has been utilized for the program?
25 A.To date, RMP has been billed for and paid
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 25
STAFF
1 $7,500 to be used for the purchase of 500 energy
2 conservation kits that will be distributed by the two
3 agencies to qualifying RMP customers at some future date.
4 Staff is concerned that the money that has
5 been allocated for Energy Conservation Education for 2009
6 and 2010 ($100,000 total) has not been utilized in a timely
7 manner. Staff recommends that while the annual funding
8 amount should be maintained at its current level of
9 $50,000, the funding level should not be increased at this
10 time. Furthermore, Staff recommends that RMP include this
11 funding amount in its budget but that no further
12 expenditures be made until a workshop is held and a
13 decision made on how to best provide energy conservation
14 education statewide.
15 Low Income Weatherization and Energy Efficiency
16 Q.What other RMP programs are available to
17 assist low income customers?
18 A.Energy efficiency programs can make bills more
19 affordable by decreasing usage, thereby lowering energy
20 costs. The Low Income Weatherization Program offers
21 financial assistance to qualifying low income customers
22 with both natural gas and electrically-heated homes for
23 weatherization of their homes. A household whose income is
24 60% of the estimated state medium income or less qualifies
25 to receive weatherization services. This program is
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 26
STAFF
1 administered by SEICA and EICAP in RMP's service territory.
2 In Case No. PAC-E- 05 - 01, the Commission approved annual
3 funding for low income weatherization of $150,000. Funding
4 for the low income weatherization program comes from the
5 Company's existing DSM tariff rider (Schedule 21). The
6 total number of dwellings weatherized in Idaho from 2007-
7 2009 was 257; the amount billed by the CAP agencies totaled
8 $434,06113. This amount includes CAP administration costs
9 but does not include RMP' s administrative costs. A
10 breakdown of the totals for each of the three years can be
11 found in Exhibit No. 127.
12 Funding for the Federal Weatherization
13 Assistance Program (WAP) that came from the American
14 Recovery and Reinvestment Act (ARRA) will be expiring on
15 March 31, 2011. Although Staff anticipates a return to
16 normal funding levels for WAP after ARRA funds are
17 exhausted, the enhanced service delivery capacity that was
18 made possible by ARRA will enable CAPs throughout the state
19 to readily expand their utility-funded weatherization
20 programs if additional funds are made available.
21 RMP offers its Idaho customers additional
22 energy efficiency programs that are available to households
23 of all income levels. Such programs include: 1) Home
24
25
13The CAP agencies are allowed to bill RMP up to $150,000 for each
program year which runs from April 1 through March 31. On a calendar
year basis, the payments may be greater than the $150,000.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 27
STAFF
1 Energy Savings; 2) Refrigerator/Freezer Recycling; 3) Idaho
2 Time-of-Day Metering; and 4) On-line and Mail-in Energy
3 Analysis. More detailed summaries of the programs can be
4 found in Exhibit No. 128.
5 Q.Does Rocky Mountain Power adequately address
7
6 the needs of its customers through its various programs?
A.Although there is always more that can be
8 done, RMP's programs do help customers in a variety of
9 different ways.
10 Q.Will an increase in Rocky Mountain Power's
12
11 rates affect customers' ability to pay their bills?
A.Yes. There are many factors affecting
13 customers' ability to pay, and a rate increase will add to
14 the financial difficulties faced by customers. The Company
15 will need to continue to be flexible in making payment
16 arrangements. It will need to work with the customers to
17 ensure that payments can be made based upon schedules that
18 fit the customers' individual circumstances and needs.
19 Staff recommends that the Company be
20 encouraged to look for new and creative ways to increase
21 energy efficiency and provide assistance to customers,
22 particularly those customers who are economically
23 disadvantaged.
24
25
Q.Does this conclude your testimony?
A.Yes, it does.
CASE NO. PAC-E-10-0710/14/10 THAEN, C. (Di) 28
STAFF
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Clark, Franklin, Freemont, Lemhi, Madison, Oneida, Teton. Exhibit No. 117
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10
Take charge of your energy use
Looking to cut your
energy use to save
money and help the
environment? Here ar
some easy thngs to do.
Lighting
With shorter days
ahead, it wil pay to
switch to compact
fluorescent light bulbs.
They use one-quarer
the amount of electcity
as incandescent bulbs.
Also, turn off lights in empty
rooms and use task lightig at a
desk or workbench.
Watet- heating
Water heating uses a significant
amount of energ in the home.
Water heaters typicaly last about
10 to 15 years, so
consider replaàng older,
inefficient unts. Set the
water heater temperature
to 120"F to save energy.
Take showers instead of
baths. The average bath
uses hvice as much hot
water as a five-minute
shower.
Appiiances
Set the temperature
of your refrgerator
between 37" and 40"F and your
freezer at oaF for efficiency and
food safety. Wash only £Ullioads
in the dishwasher on the shortest
wash cycle. Use the micrwave
when possible rather than the oven.
Wash clothes in warm or cold water
and rise them in cold water. Clean
the dryer lint filter after each use.
Tur off computers, printers, DVD
players and other electronics when
not in use.
Our Web site at rockymountain
power. net/save has more tips on
saving energy and information on
cash incentives to mae your home
more energy effcient. Or just call
us toll fre at 1-888-221-7070.
Lend a helping hand to neighbors
Life's cicumstances can sometimes
play havoc with the famly budget
and create financial hardships.
That's why we partner with
nonprofit energy assistace
programs, such as Lend A Hand,
to help those facing economic
emergencies pay their electric bils.
Our customers, shareholders and
employees donate to Lend A Hand
throughout the year.
It's simple to provide year-round
help to those less fortunate by
adding a monthly donation to your
electric bil. When you pay your
bil, you'll be helping your
neighbors too. Just tell us the
amount you want to contrbute
monthly ($1, $2, $5 or $10) and it
wil be added to your bil. Your
donation wil be forwared to the
Lend A Hand local agency nearst
you (Eastern Idaho Communty
Acton Partership in Idaho Falls
or SouthEastern Idaho Community
Acton Agency in Pocatello), which
determines eligibilty and allocates
funds to those needing help.
To enroll in the fied donation
program, call us toll free at
1-888-221-7070 and tell us the
amount you want added to your
bil each month.
We also have information on
programs and tips to help you cut
your energy use on our Web site at
rockymountanpower.net/save.
Or call us toll fr at 1-888-221-7070.
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Exhibit No. 120
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10
;:IIW-. POR..
An IDACORP company
Questions? Contact us at:
PO BOX 70. Bois. ID 83707.
Or call (208 38 (Treasure Valley).
Se habla esñol.
For faster serve please call
Tueday - Friday, 7:30 a.m. to 6:30 p.m.
Customer Name:
Account Number:
Biling Date:
Print Date:
i .
09128/2010
09128/2010
.Page 2 of 2
ww.idahopower.com
Serv.ice Agrement No:?Next Read Date:10/26/2010
Service Location:
Meter Service Period Number Readin Meter Readings Mer kWh. .. Number From To of Days Type Preous Current Const Used'.'
.5ò2Áno3051 081251Q I 09124/10 30 Regular 4701 I 5014 1 313
. -.., ."~. ,
I
BLC
o
BOling J(
6
. Residential
."Rate; Schedüie..101' .
08/25/2010 . 09/24/2010 30 days
Service Charge ...................................................................................
Non-Summer Energy Charge 0-800 kWh ~ $0..065262 per kWh; 24 days
Summer Energy Charge 0-800 kWh ~ $0.069899 per kWh, 6 days .... .....
. ....'~PÇA~ $O:003U4per kWh......:.................:,........ .........,......................
i=i;~Ch i~ i=e~ 1'0/0' " . . .. . .:.;. . . .. :'" . : :" .:,~;.~,; :~~;;:i:~ :". .; ... . ~ .. . . . ... . .. ..... . . . . . : .~. .. . . . .,.
Energy: Eff~iencySerVices . ..;....:. ,.::.,,: :;0: :'. ;.: ~~ ;; . ,',C ....., .. .....,;.; ."... . . .., ;...... .
. ''Ç.urrl1t Charges,. Electric SerVice
$4.00
$16.34
$4.38
$O,fl7
. . SO,2f),
,
, $1;55 .
$2i~50'
BLC': BàsicLoadCape.
....;':''-:-
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~IDA..PO.If writing information below, please check the appropriate box on the reverse side.Account Number:I I
An lD Company
NEW CONTACT INfORMATION:
Does Idaho Power have your correct mailng address and phone number?
If not please write any changes. below:
PROJECT SHAR.E PLEDGE
Please add the amount indicated to my
monthly biil. .
..,.-:,':
$2~~,. '"'; $5 ::.: ;:~~$10
Name
"''-.:.
"'"
Street Apt./Suite :-.' '~",I would li!(8 to make a one-time comribution
in the amount of: S.:;..~:::
City State Zip Code
Teiephone Number : ~ '::.
Please round-up my monthly bill amount to
the nearest dollar and contribute the difference
to Project Share.
.:-; . '.:~,
1PCO1 ppr wc ii:rnn: RT nnnn1 ~M I nMA1R.a7
Than!. 1JDU and ~ieasß ,ememher to ira;:!:
'four tax-¡Jefiuetilile donations.
ExhihitNo. 121
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10
E.mail Address
IPCP
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coCI(\
CUVI
DOC:;(\
CU:i co ai 0o 0 ..000N N N.. .. ..I' CO ai000-000N N N
"- I' CO ai(\000CUOOO:iNNN
Exhibit No. 123
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10
"-cu..c
§
RMP Payment Plan Options1
Equal Payment Plan assists customers with being able to budget for their utilty
bils throughout the year by leveling out seasonal highs and lows in their monthly utility
bils. To qualify for this plan a customer must not have a past due balance (no arears).
The monthly payment is the average of 12 monthly bilings based on historical charges or
an estimate of futue charges based on curent rate. The payment amount is reviewed at
least once a year against actual usage and an adjustment may be made to factor in
changes in the customer usage. The monthly payment is made either up or down.
Equal Time Payment Program is typically a long ter payment plan that
allows customers to pay their past due balance over an agreed time period up to 12
months in equal monthly installments. For example, a customers payment can be l/12th
of the past due balance in addition to their curent monthly biling which is based on the
Equal Payment Plan. Customer Serce Representatives work with the customer,
depending on his or her circumstance, to set up an arangement to bring the account
curent.
Time Payment Program is an arangement that allows a customer to pay their
past due balance over an agreed time perod up to 12 months in addition to their curent
monthy bil which is based on actual usage. Customer Serce Representatives work
with the customer, depending on his or her circumstance, to set up an arangement to
brig the account current.
i Source of information obtained by phone conversations with RM and a Company handout at the Energy
Affordability Workshops (GNR-U-08-01).
Exhibit No. 124
Case No. PAC-E-10-7
Thaden, C., Staff
10114/10
Treat yourself to energy savings
Halloween is trck or
treat time, but it also
means colder
temperatures - and
higher energy use - are
on the way. If the thought
gives you the chils, here
ar some simple tips.
Weatherize
Don't let energy
vampires suck the heat
out of your home. Add
insulation in ceilngs and .
crawlspaæs. Don't forget
to seal ductork and
especially air leaks around doors,
windows and where utilities enter.
Leaking ductork can reduæ your
heating system's effciency by as
much as 20 percent. The state of
Idaho also offers low-interst loans
for energ effciency improvements.
Call toll fre 1-800-3347283 or
visit www.energy.idaho.gov I
financialassistance to learn more.
Heating
The amount of
energy wasted
by an inefficient
heating system
can be scary. Get
your system tuned
up and clean or
change its fiters
regularly. Set the
thermostat a few
degrees lower at
night or install a
programmable
thermostat.
Lighting
Switch to ENEGY STAR~
qualified compact fluorescent
lighting. CFLs use 75 perænt less
energ than incadesænt bulbs
and last 10 times longer. They
come in many shapes and sizes
to fit a varety of fitures.
Let's tum the answer-s on
Rocky Mountain Power's
Home Energy Savings program
can help you beat the energy
vampires this season. It offers
cash incentives on product and
serviæs to make your home more
energ efficient. Visit our Web site
at rockymountainpower.netfhes
or call toll free 1-800-942-0266 for
more information.
It's easy to give a powerful gift
Looking to help a
financially strapped
student away at
college this fall Or
maybe an elderly
neighbor who could
use a helping hand?
Why not mae a
payment to their
Rocky Mountain
Power acrount?
You choose the
amount you'd like to
give and whether you want the
gift to be anonymous. For security
reasons, we wil not reveal the
recipient's account balance, but
we wil apply your gift directly to
his or her Rocky Mountain Power
account.
Make your gift
payment by mailing a
check with "gift payment"
in the memo line and an
accompanying note with
your contact information,
the name and address
of the recipient and
whether the gift is
anonymous. Or make
the gift payment over
the phone with a check,
credit card or debit card.
There is a small fee charged by a
third pary if you make a payment
over the phone.
Just call us toll free at
1-888-221-7070 or visit our Web site
at rockymountainpower.netlgift
for more details.
r-io..~~(l I ~C'U ,.-- ~ r/:
o p. .Z .Uo,. 0 i:f...- Z ~--~ ~'"::..tZ~__X ~.. 0~ U Eo..
Economic crisis calls for a concentrated effort
Updated from previous year for Feb. 2010
To the Editor:
News reports contiue alost daily on how people are strggling though the economic
recession. At Rocky Mountain Power, we talk with our customers every day and
understad the challenges many are facing as global and national economic conditions
stre closer to home.
Though difficult for our customers, we are happy to offer help. We have experenced and
conscientious people available 24 hours a day who can help customers manage their bils.
This might mean working out a payment plan, selectig some energy efficiency measures
or maybe referrg a customer to a local agency for help with their energy bills.
In economic conditions ths severe, our special concer is for customers who may have
suddenly lost their jobs, people who never expected to fid themselves and their famlies
in ths position and who may not know of options available for them. Under these
unexpected circumstaces, the tendency may be to put off payig some bils in the hope
tht thgs wil be better next month. Unfortately, ths natual reluctace to seek help
can snowball into a much bigger problem. We urge any of our customers in ths position
to call in as soon as they th there might be a concern and let us help.
To help keep these concerns from developing into even bigger problems, we're making a
concentrated effort to let people know about their options. We'll be putting more
information in bils, distrbuting flyers locally, drawing renewed attention to inormation
on our Web site and talkg to the news media to get the word out. And, as always, we're
here to help anytime of any day when you call.
Ou company and our employees are a big par of the communties we serve, and no one
is imune from our nation's current economic difficulties. We understad and we can
help. Call us toll-free 1-888-221-7070.
Sincerely,
Richad Walje
President, Rocky Mountain Power
Exhibit No. 126
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10
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Exhibit No. 127
Case No. PAC-E-1O-7
Thaden, C., Staff
10/14/10
Residential Energy Efficiency Programs
Rock.y Mountain Power offers the following residential energy effciency programs in
Idaho: 1) Home Energy Savings; 2) Refrgerator/Freezer Recycling; 3) Idaho Time-of-
Day Meterng; and 4) On-line and Mail-in Energy Analysis.
Note: Programs, rebates and incentives are subject to change. Please access the
Company's website for the most up-to-date information:
http://ww.rockyountainpower.net/env/ epi.htm
The Home Energy Savings Program serves Idaho residential customers who live in new
or existing homes, multi-family unts or manufactued homes and landlords who own
rental properies where the tenant is biled under the same Rate Schedules. The program
provides cash incentives for the purchase and installation of energy-effcient appliances
and equipment and is marketed on the Company's website under the name of WattS mar
Energy Programs. Incentives are offered under the following categories:
Lighting & Ceiling Fan Incentives provides rebates of $20 for energy star lighting
fixtues and ceiling fans.
Energy Effcient Light Bulbs Incentive provides customers with discount pricing on
compact fluorescent bulbs (CFLs) when purchased from paricipating retailers. The
Company's website contains a list of both qualified bulbs and paricipating CFL
Retailers. The Company also offers information on how to dispose of (CFLs).
New Appliances Incentives provide rebates ranging from $20 to $100 for the purchase of
energy effcient appliances (dishwasher-$20, refrgerator-$20, washer (MEF 1.72-1.99)-
$50, washer (MEF 2.0 or higher)-$l 00, water heater-$50, or evaporative coo1er-$1 00.
Heating and Cooling Incentives provide rebates to customers who purchase either an
energy effcient central air conditioning unt or heat pump for their home. A $250 rebate
is provided for the purchase of a central air conditioner (minimum 15 SEER, 12.5 EER
&TXV), an additional $50 rebate is provided for "best practices" installation but the
installation must be done by a "Program Qualified Contractor" and another $50 rebate is
provided for proper sizing (load calculation) of the unt. A $250 rebate is provided for a
heat pump-to-heat pump upgrade (minimum 8.2 HSPE, 14 SEER, 11.5 EER &TXV) and
a $350 rebate is provided for an electrc system-to-heat pump conversion. A $100 rebate
is offered for a tue-up of both a central air conditionig unt ($100) and a heat pump
ExhibÍt No. 128
Case No. P AC-E-1 0-7
Thaden, C., Staff
10114/10 Page 1 of2
($100). The tue-up must be perormed by a "Program Qualified" Contractor. Lastly, a
$150 rebate is offered for duct sealing. The sealing must be done by a "Program
Qualified" Contractor.
Insulation & Window Incentives provides rebates with a cap of$350 for all insulation
incentives for the life ofthe home. The home must either have an electrc heating system
or central air!heat pump serving at least 80 percent of the floor area.
If the home is electrcally heated: 1) Attic insulation (must be minimum ofR-19). Rebate
up to 30 cents per squae foot that results in an R-39 factor or greater; 2) Wall insulation
(must be minimum or R-11 or fill wall cavity) rebate up to 45 cents per square foot; and
3) Floor insulation (mimum ofR-19 or greater) rebate up to 25 cents per squae foot.
If the home has a central air conditioner or heat pump: 1) Attic insulation (must be
minimum ofR-19) rebate up to 15 cents per square foot that results in an R-39 factor or
greater; 2) Wall insulation (must be minimum or R-11 or fill wall cavity) rebate up to 30
cents per square foot.
Installation of windows with a V-Factor of .32 or lower qualifies for a rebate of up to
$1.50 per square foot.
The Refrigerator/Freezer Recycling Program (aka "See Ya Later Refrgerator"
Program) is provided to residential customers who own either a new or existing home and
landlords who own appliances in rental properties where the tenant is biled. Through
JA YO Environmental, older and less efficient refrgerators and freezers are removed free
of charge and recycled to prevent fuer use. In addition a $30 rebate is provided for
removal of the unit(s), an instant savings kit containng two compact fluorescent light
bulbs, a "Bright Idea's" booklet, a refrgeratorlfreezer therometer, and information on
other energy effciency programs.
The Idaho Time of Day Program allows residential customers the option to switch to
what is called, "Rocky Mountain Power's Time of Day Option." This allows customers
more control of how much they spend on electricity by moving a substantial portion of
their power usage to non-peak hours. To record time periods of electrcity used in the
program installation of a special meter is required.
On-line and Mail-in Energy Analysis allows residential customers to perorm free se1f-
audits on household energy usage. Ths can be accomplished by completing an online
audit form found on Rocky Mountain Power's website or by downoading a form, which
can then be sent to the company after having been filled out.
Exhibit No. 128
Case No. PAC-E-10-7
Thaden, C., Staff
10/14/10 Page 2 of2
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 14TH DAY OF OCTOBER 2010,
SERVED THE FOREGOING DIRECT TESTIMONY OF CURTIS THADEN, IN CASE
NO. PAC-E-10-07, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
TED WESTON
ID REGULATORY AFFAIRS MANAGER
ROCKY MOUNTAIN POWER
201 S MAIN ST STE 2300
SALT LAKE CITY UT 84111
(FED EX)
E-MAIL: ted.westonaYacificorp.com
E-MAIL: ONLY
MARK C MOENCH
DANIEL E SOLANDER
ROCKY MOUNTAIN POWER
E-MAIL: mark.moenchCipacificorp.com
daniel.solanderCipacificorp.com
RANDALL C BUDGE
RACINE OLSON NYE ET AL
PO BOX 1391
POCATELLO ID 83204-1391
(FED EX)
E-MAIL: rcbCiracinelaw.net
E-MAIL: ONLY
JAMES R SMITH
MONSANTO COMPANY
E-MAIL: jim.r.smithCimonsanto.com
ANTHONY Y ANKEL
29814 LAKE ROAD
BAY VILLAGE OH 44140
(FED EX)
E-MAIL: tonyCiyanel.net
PAUL J HICKEY
HICKEY & EVANS LLP
1800 CAREY AVE., SUITE 700
PO BOX 467
CHEYENNE WY 82003
(FED EX)
E-MAIL: phickeyCihickeyevans.com
E-MAIL: ONLY
KATIE IVERSON
BRUBAKER & ASSOCIATES
E-MAIL: kiversonCiconsultbai.com
ERIC L OLSEN
RACINE OLSON NYE ET AL
PO BOX 1391
POCATELLO ID 83204-1391
(FED EX)
E-MAIL: eloCiracinelaw.net
CERTIFICATE OF SERVICE
TIM BULLER
JASON HARRS
AGRIUMINC
3010 CONDA RD
SODA SPRINGS ID 83276
(FED EX)
E-MAIL: tbuller¡£agrium.com
j aharris¡£agrium. com
BENJAMIN J OTTO
IDAHO CONSERV A nON LEAGUE
710 N 6TH STREET
POBOX 844
BOISE ID 83702
(HAND CARRIED)
E-MAIL: botto¡£idahoconservation.org
E-MAIL: ONLY
DR. DON READING
E-MAIL: dreading¡£mindspring.com
MELINDA J DAVISON
DAVISON VAN CLEVE, P.C.
333 SW TAYLOR, SUITE 400
PORTLAND, OR 97204
(FED EX)
E-MAIL: mjd¡£dvclaw.com
RONALD L WILLIAMS
WILLIAMS BRADBURY, P.C.
1015 WHAYS STREET
BOISE ID 83702
(HAND CARRIED)
E-MAIL: ron(fwillamsbradbury.com
BRAD MPURDY
ATTORNEY AT LAW
2019 N 17TH STREET
BOISE ID 83702
(HAND CARRIED)
E-MAIL: bmpurdy¡£hotmaiL.com
.~~
CERTIFICATE OF SERVICE