HomeMy WebLinkAbout20120111Staff Complaint.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
PAC-£-I;2-0\
FROM:MARILYN PARKER
DATE:JANUARY 6, 2012
RE:STAFF COMPLAINT AGAINST ROCKY MOUNTAIN POWER:
BILLING UNDER AN INAPPROPRIATE RATE SCHEDULE
(UTILITY CUSTOMER RELATIONS RULE 203.01(c).
After investigating an informal complaint against Rocky Mountain Power, Staff believes
that Rocky Mountain violated Utilty Customer Relations Rule 203.01 (c). In pei1inent part, this
Rule requires that a customer biled under an inaPPl'priate tariff be rebiled and refunded the
difference. The Company does not accept the Staffs proposed resolution; consequently, Staff
brings this matter to the Commission.
BACKGROUND
On November 2, 20 t t, Staff spoke with Ted Orchard, owner of Idaho Travertine in Idaho
Falls. Mr. Orchard said he was fairly cei1ain that Rocky Mountain Power (RMP; Company) had
assigned him to the Wl'ng rate schedule - Schedule 6 (General Service - Large Power) - when
he had "taken back" his business on April t 4, 2010. i Sometime after he resumed ownership, Mr.
Orchard visited RMP's local offce, where he was told that no one there could help him and that
he needed to call the Company's 800 number to discuss the rate assignment issue. Mr. Orchard
did not call because at that point contact was initiated with the Commission. Mr. Orchard
indicated to Staff that he did not elect to be on Schedule 6 in April 2010, nor has he ever opted to
be on Schedule 6 as evidenced by an informal complaint he had fied with the Commission
several years ago.
1 Mr. Orchard sold his business in March 2008 but resumed ownership in 20 i O. During the period when the
business was owned and operated by another part, electric service was provided to a customer named Rocky
Mountain Travertine.DECISION MEMORANDUM JANUARY 6, 2012
i. Prior Informal Complaint
In 1997, Mr. Orchard fied an informal complaint with the Commission regarding his rate
schedule assignment. At that time, he was receiving service under Schedule 6. Following
Staffs investigation~ it was determined that Schedule 23 (General Service) would provide a more
favorable rate for Idaho Travertine. The Company agreed to switch him to Schedule 23. At that
time, the Commission Staff did not require RMP to provide a refund to the customer for the
difference between Schedule 23 and Schedule 6 rates.
Rocky Mountain Power now indicates that its records show that both Idaho Travertine
and Rocky Mountain Travei1ine were biled under Schedule 6 for as far back as RMP's account
records go (December 1997). Neither the customer nor the Company can provide documentation
to prove whether Idaho Travertine's account was actually changed to Schedule 23 in March of
t 997 pursuant to RMP's agreement to resolve the original i 997 complaint. However, Staff has
determined that as of December 1997 ~ Idaho Travertine was biled under Schedule 6, despite the
fact that it had been determined earlier that year that Schedule 6 was an inappropriate rate
schedule.
2. Current Complaint
To resolve the current informal complaint, Staff requested that in accordance with
Customer Relations Rule 203.01(c), Idaho Travei1ine be moved to Schedule 23 and provided a
refund from the time when sei'vice was reestablished in the name of Idaho Travertine (April
20 i 0) to the point at which service was switched to Schedule 23 from Schedule 6 (November
20 11)~ i.e., 18 months. Staffs position is that there is suffcient evidence to indicate that the
customer was assigned to an inappropriate rate schedule when he came back on service in 2010.
Rule 203 generally provides that the customer be rebiled if the customer was biled
under an inappropriate tariff. This Rule states:
203. BILLING UNDER INAPPROPRIATE TARIFF SCHEDULE
01. Rebiling Required. If a customer was biled under an inappropriate tariff
schedule, the utilty shall recalculate the customer's past bilings and cOl1ectly
calculate future bilings based on the appropriate tariff schedule. A customer has
been biled under an inappropriate tariff schedule if:
c. The customer, who is eligible for billng under more than one (1) tariff
schedule, was biled under a schedule contrary to the customcr~s election, or the
election was based on erroneous information provided by the utilty.
DECISION MEMORANDUM 2 JANUARY 6, 2012
IDAPA 31.21.01.203.01 (attached). Staff maintains that this customer is entitled to a
refund of $15,952.31 because Rocky Mountain Power assigned the customer to the
incorrect rate schedule on April 14, 2010. See rate comparison spreadsheet - Attachment
No.2,
RMP agreed to move the customer to Schedule 23 but declined to provide the customer
with a refund. According to the Company, RMP's responsibilty is to provide rate information to
its customers and to respond to customer requests for review of rate schedule assignment. RMP
does not monitor customer accounts to determine whether a customer could be assigned to a
different, less expensive rate schedule.
STAFF COMMENTS
Rocky Mountain Power's tariff includes two general service rate schedules for
commercial customers: Schedules 23 (General Service) and Schedule 6 (Large Power). See
Attachment NO.3, Neither schedule has specific eligibilty cI'iteria related to demand or energy
usage. According to RMP, at the time of initial connection of a new business building, the
Company, in consultation with the customer, determines what the appropriate rate should be.
After initial assignment of a rate schedule to a service location, both existing and
subsequent customers wil stay on that same rate schedule until the customer contacts the
Company to change service requirements or question rates. Although Staff agrees that the
Company does provide some information to customers regarding rates, many customers lack full
awareness of their options. Even if they are aware of options, they may not realize that a change
in mte schedule might result in significant savings. In addition, customers may not have
suffcient expei1ise or resources to compare rates. It may be diffcult for customers who are
eligible for more than one rate schedule to conduct a comprehensive biling analysis in order to
determine the least cost rate option. Since Schedule 6 and 23 have no specific eligibilty criteria,
there is no way to determine the appropriateness of a rate schedule assignment without doing
such an analysis.
In Mr, Orchard's case, he assumed at the time he signed up for service again in 20 to that
he would be assigned by RMP to the most favorable rate. The customer service representative's
statement that "optional rate schedules" were available didn't prompt him to ask for a rate
schedule comparison at that time. Staff believes that Mr. Orchard's assumption regarding rate
DECISION MEMORANDUM 3 JANUARY 6, 2012
schedule assignment was certainly reasonable given the resolution of his informal complaint
regarding that same issue in i 991.
STAFF RECOMMENDATION
Neither Staff nor the customei' were satisfied with the outcome of the informal complaint
and Staff has taken this action to mea Formal Complaint on behalf of the customer. Rule 24.
Staff recommends that the Comtnission issue asummonstò Rocky Mountain Power and direct
the Company to file a response to the Commission. Rule 54.05~
COMMISSION DECISION
Does the Commission find thei'e is probable cause to accept Staffs formal coinplaint?
Does the Commission wish to issiie a Summons?
~Mal'lyn Parker
í:iidmeflosflraverline.doc
DECISION MEMORANDUM 4 JANUARY 6, 2012
Attachment # 1
203. BILLING UNDER INAPPROPRIATE TARIFF SCHEDULE (Rule 203).
01. Rebiling Required. If a customer was biled under an inappropriate tal'ff schedule,
the utilty shall recalculate the customer's past bilings and correctly calculate future
bilings based on the appropriate tariff schedule. A customer has been biled under an
inappropriate tariff schedule if; (7-1.93)
a. The customer was biled under a tal'ff schedule for which the customer was not
eligible; or (7-1-93)
b. The customer was biled under a tariff schedule based upon information supplied by
the customer but the customer's actual demand is insuffcient to meet the minimum
eligibilty requirements for the selected tariff schedule; or (4-2-08)
c. The customer, who is eligible for biling under more than one (I) tariffschcdule, was
biled under a schedule contrary to the customer's election, or the election was based on
erroneous information provided by the utilty. (7-1-93)
02. Exceptions. The utilty shall not be required to adjust bilings when it has acted in
good faith based upon available information or when the customer was given written
notice of options under the tariff schedules and did not make a timely election to exercise
available options. (7-1-93)
03. Rebiling Time Period. When the customer has been overcharged, the period for
rebillng shall not exceed three (3) years as provided by Section 61-642, Idaho Code.
When the customer has been undercharged, the period for rebillng shall be limited to six
(6) months unless a reasonable person should have known of the inappropriate biling, in
which case the rebillng period may be extended for a period not to exceed three (3)
years. Utilties shall implement procedures designed to monitor and identifY customers
who may be biled under an inappropriate tariff schedule.
(4-2-08)
04. Refunds and Additional Payments. The utilty shall promptly prepare a corrected
biling indicating the refund due the customer or the amount due the utilty. (4-2.08)
a. A customer who has been undercharged shall be given the opportunity to make
payment arrangements under Rule 313 on the amount due. At the customer's option, the
term of the payment arrangement may extend for the length of time that the undercharge
acci~ed. (4-2-08)
b. The utilty shall promptly calculate refund amounts overpaid by the customer and issue
a credit on the customer's next bil. Any remaining credit balance may be credited against
futUle bils, unless the customer. after notice from the utility, requests a refund. The
utilty shall advise the customer of the option to have any remaining credit balance
refunded to the customer. (4-2-08)
Attachment No. 1
Decision Memorandum
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ROCKY MOUNTAIN
POWER
A DIVISION OF I'AClFlP
IDAHO PUBLIC UTILITIES COMMISSIONApproved EffectIve
April 26, 2011 April 25, 2011
Per C.N. 32224
. Jean D. Jewell Secretary
I.P .U.C. No. i
Third RevisIon of Sbeet No. 6.1
Canceling Second Revision of Sheet No. 6.1
ROCK MOUNAI POWER
ELECTRIC SERVICE SCHEDULE NO.6
STATE OF IDAHO
General Service - Large Power
AVAIABILITY: At any point on the Company's interconnected system where there are facilties
of adequate capacity.
APPLICATION: This Schedule is for alternating current, single or three.phase electrc service
supplied at Company's available voltage through one metering installation at a single point of delivery for
all service required on the premises.
MONT& Y BILL:
Rate:
Customer Servce
Charge:
Biling Months May
through October, Inclusive
Biling Months November
thrugh APl. Inclusjye
Seconday voltage
deliver (Less than
2300 volts) $ 33.00 per Customer $ 33.00 per Customer
Primary voltage
delivery (2300 volts
or higher) $ 99,00 per Customer $ 99.00 per Customer
Energy Rate:3.380SØ per kWh for all kWh
$ 10.05 per kW for all kW
3,380SØ per kWh for aU kWh
Power Rate: $ 12.22 per kW for all kW
(Continued)
Submitted Under Case No. PAC-E- i 0-07
ISSUED: April 20, 201 i EFFECTIVE: April 25, 2011
Attachment No.3
Decision Memorandum
Page 10f3
. . -i
~~ROCKY MOUNTAIN
POWER
A DMSION Of PACIFIIII'
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Dec. 28, 2010 Dec. 28,2010
Per C.N. 32161
Jean D. Jewell Secretary
I.P.V.C. No.1
Second Revision of Sheet No. 6.2
Canceling First Revision of Sheet No. 6.2
ELECTRC SERVICE SCHEDULE NO.6 M Continued
Power Factor:
This rate Is based on the Customer maintaining at all times B power factor of 85% lagging,
or higher, as determined by measurement. If the average power factor is found to be less
than 85% lagging, the Power as recorded by the Company's meter wil be increased by 3/4
of i % for every 1 % that the power factor is less than 85%.
Voltage Discount:
Where Customer takes service from Company's available lines of 2300 volts or higher and
provides and maintains all transfonners and other necessary equipment, the voltage discount
based on measured Power wil be:
$0.57 per kW for all kW of Power
Minimum BUJ:
The Customer Service Charge.
POWER: The kW as shown by or computed from the readings of Company's Power meter for the
IS~minute period ofCustornets greatest use during the month, detennined to the nearest kW.
SEASONAL SERVICE: Service for annually recurring periods of seasonal use where service is
normally discontinued or curtiled during II part of the year may be contracted for under this Schedule under
either of the following conditions:
(a) Customer may contract for service under this Schedule on a year-round basis paying for all
service, including transfonner losses where applicable, under the rates set forth under
"Monthly BillI above including the monthly minimum bil during those months service is
curtailed or is not utiized in the Customer1s operation.
(b) Customer may contract for seasonal service under this Schedule with a net minimum
seasonal payment as follows:
$ 396.00
$ 1,188.00
plus Power and Energy Charges for Customer taking service at less than
2300 volts and
plus Power and Energy Charges for Customer taking service at 2300 volts
or higher.
(Continued)
Submitted Under Case No. PAC"&. I 0-07
ISSUED: December 21.2010 EFFECTIVE: December 28,2010
Attachment NO.3
Decision Memorandum
Page 2 of3
,
~ ROCKY MOUNTAIN
POWERA DMSI Of PAClflÇlI
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2D08 Sept. 15, 2006
Jean D. Jewell Secretary
I.P.U.C. No.1 Original Sheet No. 6.3
ELECTRIC SERVICE SCHEDULE NO.6 - Continued
CONTRCT PERIOD: One yea or longer.
ELECTRC SERVICE REGULATIONS: Service under this Schedule wil be in accordance with
the terms of the Electric Service Agreement between the Customer imd the Company. The Electric Service
Regulations of the Company on file with and approved by the Idaho Public Utilties Commission, including
future applicable amendments, wil be considered as forming a par of and incorporated in said Agreement.
Submitted Under Advice Letter No. 06-06
ISSUED; August 14,2006 EFFECTIV: September 1 S, 2006
Attachment NO.3
Decision Memorandum
Page 3 of3
~'1
ROCKY MOUNTAIN
POWER
A li\lSION 0' PAOFlcnp
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
April 26, 2011 April 25, 2011
Per O.N. 32224
Jean D. Jewell Secretary
I.P.U.C. No.1
Third Revision of Sheet No. 23.1
Canceling Second Revision of Sheet No. 23.1
ROCKY MOUNAI POWER
ELECTRIC SERVICE SCHEULE NO. 23
STATE OF IDAHO
General Service
AV AIABILlTY: At any point on the Company's interconnected system where there are facilties of
adequate capacity.
APPLICATION: This Schedule is for alternating curnt, single or three-phase electrc serice
supplied at Company's available voltage through one metenng installation at a single point of delivery for all
service require on the premises.
MONTHLY BILL:
Billng Months May
thrugh October, Inclusive
Biling Months November
through April, lnclusive
Customer Service
Charge:
Secondary voltage
delivery (Less than
2300 volts) $14.00 per Customer $14.00 per Customer
Pnmary voltage
delivery (2300 volts
or higher) $43.00 per Customer $43.00 per Customer
Energy Rate:8.0585~ peT kWh for all kWh 7.0345t per kWh for all kWh
(Continued)
Submitted Under Case No. PAC-B.IO-O?
ISSUED: April 20, 201 1 EFFECTIVE: April 25. 201 i
Attachment No.4
Decision Memorandum
Page 1 of3
\ .
.."l
~~ ROCKY MOUNTAIN
. . 'POWER
A DMION OF PAt1f1RP
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
April 26, 2011 April 25, 2011
Per a.N. 32224
Jean D. Jewell Secretary
I.P.U.C. No. i
i
Second Revision of Sheet No. 23.2
Canceling FIrst Revision of Sheet No. 23.2
ELEClRIC SERVICE SCHDULE NO. 23 w Continued
Power Factor:
This rate is based on the Customer maintaiiùng at all times a power factor of 85% laggng, or
higher, as determned by measurement. If the average power factor is found to be less than
85% laggng, Customer wil be biled for 3/4 of 1 % of the Power recorded by the Company's
meter for every 1 % that the power factor is less than 85%. This Power will be biled at the
Power Rate stated in Electrc Servce Schedule No.6.
Voltage Discount:
Where Customer takes service from Company's available lines of 2,300 volts or higher and
provides and maintains all transformers and other necessary equipment, the voltage discount
based on measured Energy wil be:
O.3892t per kWh for all kWh.
Minimum BUl:
The Customer Serce Chare
POWER: The kW as shown by or computed frm the readings of the Company's Power meler for
the IS.minute period ofQistomer's greatest use during the month, determned to the nearst kW.
SEASONAL SERVICE: Servce for anually recung periods of seaonal use where servce is
nonnally discontinued or curtiled durng a par of the year may be contracted for under this Schedule under
either of the following conditions:
(a) Cutomer may contract for service under this Schedule on a year.round basis paying for all
service, including transfonner losses wher applicable, under the rates set forth under
"Monthly Bil" above including the monthly minimwn bil during those months service is
curtailed or is not utilzed in the Customets operations.
(b) Customer may contract for seasonal service under this Schedule with a net minimum seasonal
payment as follows:
$168.00 plus Energy Charges for Customer taking service at less than 2,300 volts and
$516.00 plus Energy Charges for Customer taking service at 2,300 volts or higher,
CONTCl PERIOD: One year or longer.
(Continued)
Submitted Under Case No. PAC-B-IO-07
ISSUED: April 20, 2011 EFFECTIVE: April 25,2011
Attachment No.4
Decision Memorandum
Page 2 of3
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~ROCKY MOUNTAINPOWER
A OMSION OF PAFICOAI'
IDAHO PUBLIC UTILITIES COMMISSIONApproved Effective
Aug. 28, 2006 Sept. 16, 2008
Jean D. Jewell Secretary
1.P.U.C. No. i Original Sheet No. 23.3
ELECTC SERVICE SCHDUL NO. 23 - Continued
ELEClRlC SERVICE REGULTIONS; Service under this Schedule wil be in accordace with
the tenns of the Electric Service Agrement between the Customer and the Company. The Electric Service
Regulations of the Company on fle with and approved by th Idaho Public Utilties Commission, Including
future applicable amendments, wil be considered as fonning a par of and incorporated in said Agrment,
Submined Under Advice Lener No. 06.06
ISSUED: August 14,2006 EFFECTIV: September i 5, 2006
Attachment No.4
Decision Memorandum
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