20111216Comments.pdf

Jean Jewell
From:
Sent:
To:
Subject:
philelkcæPlmw.com
Thursday, December 15, 2011 11 :40 AM
Jean Jewell; Beverly Barker; Gene Fadness
PUC Comment Form
A Comment from Helen K . Smith follows:
Case Number: PAC-E-11-12
Name: Helen K . Smith
Address: 2088 E. Riverdale RD
City: Preston
State: Idaho
Zip: 83263
Daytime Telephone: [phone]
Contact E-Mail: philelk~plmw.com
Name of Utility Company: Rocky Mountain Power
Acknowledge: acknowledge
Please describe your comment briefly:
To the Idaho Public Utilities Commissioners:
My name is Helen K. Smith. I live at 2088 E. Riverdale RD in Preston~ ID where my husband
and son run a beef cattle and horse training operation. We are customers of Rocky Mountain
Power. I attended the workshop held in Grace and the public meeting held in Downey regarding
this case. I am concerned that the commissioners who were in attendance will not give
consideration to the testimony given at Downey that I believe it is their fiduciary
responsibili ty to do . Although those who gave testimony in Downey were not polished
presenters~ they did make several valid points that the commission should give very serious
consideration to in ruling on this rate case.
Per the commission~ s hand out that was provided at the workshop and the public hearing the
commission is required by law to affix rates that are just~ reasonable and sufficient. The
commission is required to consider the needs of both the utility and the customer and should
only set rates to cover costs that were prudently incurred and needed to serve customers.
The presentation at the work shop contained a slide that stated that rates should:
· Be Simple
· Be understandable
· Follow Costs
· Encourage Conservation
· Minimize Low Income Customer Impacts
I believe that a large majority of the attendees at the Downey hearing were very concerned
that the impact to them was not going to be minimized. A large number of these attendees
appeared to be senior citizens or small businessmen such as farmers and ranchers who operate
on very slim margins none of which have the ability as Rocky Mountain Power does to increase
their revenue stream when the costs over which they have no control increase. The increase
granted in the 2010 rate case filing and the currently proposed rate case will impact their
families~ standard of living. These are the very customers that the commission was formed to
protect~ but I sensed that due to their lack of sophistication the commissioners found their
testimony easy to dismiss. (
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Therefore~ I am writing to encourage the commissioners to give serious consideration to the
following points that I believe were raised and are very valid.
The rate making process as it currently exists encourages Rocky Mountain Power to be
inefficient. Not only are they able to recoup all of their expendi tures ~ but they are able
to receive a 10% return on those expenditures. Unlike their customers who have to find ways
to tighten their belt and become more efficient Rocky Mountain Power is looking for ways to
increase expenditures in order to increase the principal that the 10% ROI is applied to.
Those in attendance at the hearing were clearly demanding that the commission reconsider the
prudence of some of the investments and expenditures that the utility has already made and
those that they are contemplating. In fact Oregon~ s Commission has done just that. (See"
Paci fiCorp Plan Dismays Regulators" by Ted Sickinger ~ The Oregonian ~ Dec. 6 ~ 2011). The
Idaho rate payers do not see any value being provided to them by many of the expenditures
included on the utili ties resource plan. Expendi tures that provide no value to rate payers
should not be included in their rate. Wind generation is not an efficient means of
supplying power nor are the gas fired plants required to provide back up generation for them.
These are not prudent expenditures that the commission is required to include in rates to
Idaho rate payers. Costs associated with transmission lines that provide no power to Idaho
rate payers should not be included in Idaho rates.
Another point that was mentioned during the hearings is that a 10% return in today~ s
depressed market is well beyond the fair return on capital that it is the Commission~ s
responsibility to provide. Low risk investments in today~ s market are returning less than
2%. I am concerned along with those who gave testimony in the public hearings that the
ability to receive a return that is significantly above the market is driving Rocky Mountain
Power~ s investment decisions rather than a requirement to meet environmental regulations or
future demand for electricity. It is the commission~ s responsibility to protect the rate
payers from these types of decisions.
In summary ~ I emphatically request that the commission fill their responsibility to the rate
payers by only allowing Rocky Mountain Power to recoup expenditures that are reasonable and
prudent. Unless the commission requires the utility to operate in an efficient manner ~ they
will take advantage of being a monopolistic supplier to provide returns to their
shareholders with out considering the value or lack thereof provided to their customers.
Thank you for your consideration.
Sincerely~
Helen K. Smith
The form submitted on http://www. puc. idaho.gov/forms/ipuc1/ipuc. html
IP address is 164.144.252.26
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Jean Jewell
From:
Sent:
To:
Subject:
jstallngs99cægmail.com
Thursday, December 15, 2011 9: 1 0 AM
Jean Jewell; Beverly Barker; Gene Fadness
PUC Comment Form
A Comment from Jerrold W Stallings follows:
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Case Number: PAC-£-II~ /J-
Name: Jerrold W Stallings
Address: 1196 Ashland Dr.
City: Ammon
State: Idaho
Zip: 83406
Daytime Telephone: [phone]
Contact E-Mail: jstallings99~mail.com
Name of Utility Company: Rocky Mountain Power
Acknowledge: acknowledge
Please describe your comment briefly:
Electric Utili ties Commission. We understand that the Rocky Mountain Power has requested a
rate increase. During this time of economic reversals we feel it inappropriate to be
increasing the electrical rates and we are encouraging you to decline the rate increase.
Please encourage the utility company to sharpen there wits and lower there costs of
production. As all of us are having to tighten our belts ~ we feel it appropriate to ask the
utility company to do the same. A comment from you would be greatly appreciated. Sincerely ~
Jerrold W. Stallings
The form submitted on http://www . puc. idaho. gov /forms/ipuc1/ipuc. html
IP address is 174.126.35.87
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