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HomeMy WebLinkAbout20160216Application.pdfROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP I,.,i6 Ft"B t6 Al{ t0: l7 February 16,2016 . . li:}t'.liil i:ttllll f C i :i i; i , i:.: i,0;,\,,,'liSSlOil VA OVERNIGHT DELIVERY Idaho Public Service Commission 472 W . Washington Street P.O. Box 83720 Boise, Idaho 83720-0074 Attention: Jean D. Jewell Commission Secretary RE: CASE NO. PAC-E-16-06 IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR AUTHORITY TO MODIFY REGULATION NO. 9 . DEPOSITS AND ADVANCE PAYMENTS. Please find enclosed the original and seven (7) copies of Rocky Mountain Power's Application requesting approval of certain modifications to Electric Service Regulation No. 9 - Deposits and Advance Payments. The Company respectfully requests that the Commission issue an order on or before May 16, 2016, authorizing inigation specific rules for customer advances and deposits to help reduce risk and mitigate bad debt expense. Please contact Ted Weston directly at (801) 220-2963 if you have any further questions. Sincerely, 1407 W. North Temple, Suite 310RECEIVED saltLakecity,utalls4ll6 J^44,*,n !-.Aa,,au.lrru Jeffrey K. Larsen Vice President, Regulation Enclosures Yvonne R. Hogle (lSB#8930) 1407 W. North Temple, Suite 320 Salt Lake city uT 841l6 Telephone: (80 I ) 220-4050 FAX: (801) 220-461s Email : yvonne.hoele@l.acifi corp.com Attorneyfor Rocley Mountain Power IN THE MATTER OF THE APPLICATION OF ROCKY MOUNTAIN POWER FOR AUTHORITY TO MODIFY REGULATION NO. 9 DEPOSITS AND ADVANCE PAYMENTS NE CT IVE D f0i$ r[B i 6 I.]t t0: I T .,. iir'.:.1;j ;:ril,:ll-10 i,i i ii-; i ;-.;, ;C,,.i,.ri;SSICN BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. PAC-E-16-06 APPLICATION COMES NOW, Rocky Mountain Power, a division of PacifiCorp ("the Company"), and in accordance with RP 052 and RP 201, et. seq., hereby respectfully submits this application to the Idaho Public Utilities Commission ("the Commission") for authorization to modify Electric Service Regulation No. 9 - Deposits and Advance Payments ("Regulation 9"). In support of this Application, Rocky Mountain Power represents as follows: l. Rocky Mountain Power is authorized to and is doing business as an electrical corporation in the state of ldaho. The Company is an electrical corporation pursuant to ldaho Code $$ 6l-119, providing retail electric service to approximately 73,000 customers in the state of Idaho and is subject to the jurisdiction of the Commission as a public utility pursuant to ldaho Code $ 6l-129. 2. This Application is filed pursuant to Idaho Code gg 6l-301 , 6l-303, 6l- 307, and 61-622. In particular, Idaho Code $ 6l-622 empowers the Commission to determine the propriety of proposed rate schedules, $$ 6l-307 requires Commission APPLICATION OF ROCKY MOUNTAIN POWER - 1 approval prior to any changes in rates, and $ 6l-301 requires Idaho retail electric rates to be just and reasonable. BACKGROUND 3. Utility Customer Relations Rule ("UCRR") 601 states: "An applicant or customer may be required to pay a deposit or make an advance payment in accordance with the utility's tariff filed with the Commission." The rule authorizes utilities to require a customer deposit or advance payment in accordance with the utility's tariff approved by the Commission. UCRR 600 defines advance payments as those made prior to receiving service that will be credited to the customer's account at alatq date. Customer deposits are defined as any payment held as security for future payment or performance that is reimbursable. 4. Electric Service Regulation No. 9 - Deposits and Advance Payments was last modified in August 2006, under Advice Letter No. 06-06, and approved in September 2006 by the Commission. The tariff governs the circumstances under which a deposit or customer advance is required in an effort to reduce risk and mitigate bad debt expense for both the Company and its customers. 5. As of December 31, 2015, the Company had 58 customers who were taking electric service under Schedule No. 10 - Irrigation and Soil Drainage Pumping Power Service, ("Schedule 10"), with a balance in arrears totaling approximately $1.6 million. These customers' annual bills during the 2015 irrigation season were approximately $4.2 million, or 38 percent of their 2015 annual usage remained unpaid. Fifteen of these customers had balances in arrears in excess of $25,000, representing $1.35 million of the $1.6 million, or 84 percent of the total balance in arrears. APPLICATION OF ROCKY MOLINTAIN POWER - 2 6. Currently Regulation t has separate guidelines for three customer groups; residential, small commercial, and the third group which combines the large commercial, industrial, and irrigation customer classes. For the three customer classes in the third group, the rules are the same. 7. This Application requests authority to create a fourth customer group by separating irrigation customers from the large commercial and industrial customers with unique rules for each of the customer groups. This will enable implementation of deposit and customer advance rules tailored more specifically for these customer classes. CUSTOMER ADVAI\CES 8. The Company proposes the following modifications to Regulation 9 to implement rules specifically for Schedule 10 customers. The modifications will allow the Company the discretion to require advances from current, previous, or prospective customers prior to the Company providing service if the customer: (i.) had a cumulative past due balance equal to or greater than $25,000 on December 3l of the prior year; (ii.) had service disconnected for nonpayment during the last four years; (iii.) sought, at any time, any form of relief under the Federal Bankruptcy Laws, or has been discharged from bankruptcy, or whose receivership proceeding has been terminated, or whose bankruptcy proceedings have been dismissed; or (iv.) is requesting electric service from Schedule 10 for the first time. 9. To satisff the customer advance requirements, the Company proposes upfront payment, guarantee of payment from a bank or financial institution acceptable to the Company, or guarantor acceptable to the Company. 10. The third option proposed above-a guarantor acceptable to the Company-is included at the suggestion of the Idaho lrrigation Pumper Association ("IIPA") as an alternative. IIPA representatives indicated customer advances may be APPLICATION OF ROCKY MOUNTATN POWER - 3 particularly burdensome for first time farmers. After consideration, the Company agreed that if a guarantor could demonstrate his credit worthiness, the Company would accept a guarantor in lieu of a customer advance. To be a guarantor the person must be: (i.) an active Rocky Mountain Power customer; (ii.) currently taking Schedule l0 service that is larger or comparable in size; and (iii.) no more than one late notice in the previous twelve months. 1 1. Under the proposal for Regulation 9, the Company may require an advance for all Schedule l0 accounts for which a new Schedule 10 customer is financially responsible and requesting service. The customer advance for each metered service point will be equal to the estimated monthly billings for the upcoming inigation season. When an advance is collected, a portion of that customer advance will be applied to satisff the customer's monthly bill during the irrigation season. 12. Another suggestion from the IIPA representatives incorporated by the Company was to add a provision that, upon a customer's request, the Company will conduct an in-season review of the actual electric consumption and associated advance payment. If the Company, in its sole discretion, determines that the advance is more than sufficient, the Company, atthe customer's request, will refund the portion of the advance in excess of the revised usage estimate for the remainder of that irrigation season. tf at the end of the irrigation season any of the customer advance remains, it will first be applied to any required deposit for the upcoming season before being refunded to the irrigation customer. CUSTOMER DEPOSITS 13. A deposit may be required from current or previous irrigation customers prior to the Company providing service. Consistent with customer advances, customer APPLICATION OF ROCKY MOUNTATN POWER - 4 deposits may be satisfied by upfront payment, a guarantee of payment from a bank, financial institution, or a guarantor acceptable to the Company. 14. A deposit may be required from a current or previous irrigation customer prior to the Company providing service if the irrigation customer received two or more past due notices for non-payment during the most recent irrigation season or, in the case of a previous customer, the last twelve month period during which service was received. In addition, a deposit may be required if the irrigation customer was required to pay an advance prior to the previous irrigation season and the customer's account balance on December 3l was less than $25,000 for that year. 15. An irrigation customer with more than one Schedule l0 account that meets the requirements for payment of a deposit may be required to pay a deposit on all Schedule l0 accounts for which the irrigation customer is financially responsible and requesting service. 16. The deposit for each metered service would be equal to the estimated monthly bill for the two highest months of usage within the last two irrigation seasons. Payment of the deposit would be required before the Company will provide service for that irrigation season. 17. When an irrigation customer has paid all undisputed bills and has had no more than one past due notice during the past twelve months, the deposit will be promptly returned, with accrued interest, by either crediting the customer's account or issuing a check. 18. Interest on deposits held by the Company will be accrued at the rate established annually by Commission order and will be computed from the time the APPLICATION OF ROCKY MOUNTATN POWER. 5 deposit is made until it is returned or applied to the customer's bill. Interest will not accrue on a deposit if service is terminated temporarily at the request of a customer who leaves the deposit with the Company for future use as a deposit or if service has been permanently terminated and the Company has been unsuccessful in its attempt to refund the deposit. SCHEDULE TO IMPLEMENT CHAI\GE 19. Company and IIPA representatives met in November to discuss the proposed changes to Regulation 9 requirements. Based on the input from the IIPA representatives, the Company agreed to include an additional option as a guarantor in lieu of the requirement of a bank or financial institution. The Company also added language that, upon a customer's request, the Company would conduct an in-season review of the actual electric consumption and associated advance payment and, based on that review may refund the portion of the advance in excess of the revised usage estimate for the remainder of that season. A second meeting was held in February to inform IIPA representatives that the Company had considered their proposals and incorporated the two changes mentioned. The Company also communicated its intent to file the proposed modifications to Regulation 9 with Commission by mid-February. 20. The Company respectfully requests that the Commission approve these modifications to Regulation 9 effective May 16, 2016, with the intent to implement the revisions before the 2017 irrigation season. Making them effective at the beginning of the 2016 irrigation season would provide the Company the opportunity to communicate these changes to customers during 2016 before implementation the following year. APPLICATION OF ROCKY MOLTNTAIN POWER - 6 21. If the Commission approves this Application, the Company will send an informational letter to customers who received a past due notice during the 2015 irrigation season or had an outstanding balance of $25,000 or more as of December 31, 2015 informing them that a deposit or customer advance may be required before the Company will provide service for the 2017 irrigation season if a customer receives two or more notices during the 2016 irrigation season or has an past due balance of $25,000 or greater as of December 31,2016. Additionally, the firsttime a customer receives a past due notice during 2016, a letter explaining Regulation 9 will be provided informing customers that a second past due notice may result in a required deposit before electric service is provided the following year. SERVICE OF PLEADINGS 22. Communications regarding this Application should be addressed to: Ted Weston Rocky Mountain Power Manager, Idaho Regulatory Affairs 1407 W. North Temple, Suite 330 Salt Lake City UT 84116 Telephone: (801) 220-2963 Facsimile: (801) 220-27 98 E-mail : ted.weston@nacificom.com Yvonne R. Hogle Rocky Mountain Power Assistant General Counsel 1407 W. North Temple, Suite 320 Salt Lake city uT 84116 Telephone: (801) 220-4050 Facsimile: (801) 220-4615 E-mail : )'vonne.ho gle@nacifi com.com In addition, Rocky Mountain Power respectfully requests that all data requests regarding this matter be addressed to: APPLICATION OF ROCKY MOUNTAIN POWER. 7 By e-mail (preferred):datarequest@pac ifi corp.com By regular mail: PacifiCorp Data Request Response Center 825 NE Multnomah, Suite 2000 Portland, OR 97232 lnformal inquires also may be directed to Ted Weston at (801) 220-2963. MODIFIED PROCEDURE 23. Rocky Mountain Power believes that consideration of the proposed modifications contained in this Application does not require an evidentiary proceeding, and accordingly requests that this Application be processed under RP 201 et. seq., allowing for consideration of issues under Modified Procedure, i.e., by written submissions rather than by an evidentiary hearing. If however the Commission determines that an evidentiary hearing on this matter is necessary the Company stands ready to present testimony in support of this Application. CONCLUSION WHEREFORE, Rocky Mountain Power respectfully requests that the Commission issue an Order: (i.) that this Application is to be processed under Modified Procedure; (ii.) approving the modifications to Regulation 9 and finding that they are just and reasonable; (iii.) with a May 16, 2016, effective date. DATED this l6th day of February,2016. R. Hogle for PacifiCorp APPLICATION OF ROCKY MOUNTAIN POWER - 8 -ROCKYMOUNTAINYpwee\ A DTVTSTON OF PACTFTCORP I.P.U.C. No. 1 First Revision of Sheet No. 9R.2 Canceling Original Sheet No.9R.2 (b) Small Commercial Customers An applicant may be required to pay a deposit as a condition of service for the reasons stated in (a) above, or additionally, when the applicant is applying for service for the first time from the Company. (c) Industrial and Large Commercial The Company may require a deposit from current and prospective industrial or large commercial customers for the reasons stated in (b) above, or additionally: (1) The customer fails to pay the account on or before the date such payment is delinquent. @ The nature of the customer's operation is extremely speculative or subject to a high probability of failure.(d) Irrigation Customers The Company may require a deposit or advance from past, current, and prospective irrigation, (Schedule l0), customers prior to providing electric service as follows: (1) Irrigation Advance A. An advance may be required from current, previous, or prospective Schedule 10 customers prior to providing electric service: 1. If the customer had a cumulative past due balance equal to or greater than $25,000 on December 3l; 2. If the customer had service disconnected for nonpayment during the last four (4) years; 3. If at any time the customer sought any form of relief under the Federal Bankruptcy Laws, or has been discharged from bankruptcy, or whose receivership proceeding has been terminated, or whose bankruptcy proceedings have been dismissed; or 4. If the applicant is requesting service for the first time. B. As an alternative to payment an advance may be satisfied by: L A guarantee of payment from a bank or financial institution acceptable to the Company;or2. A guarantor acceptable to the Company. (Continued) Submitted Under Case No. PAC-E-16-06 ISSUED: February 16,2016 EFFECTM:May 16,2016 V,ROCKYMOUNTAINYpantea \ a ovrsror or PAoFToRP I.P.U.C. No.1 Second Revision of Sheet No. 9R.3 Canceling First Revision of Sheet No. 9R.3 (1) Irrigation Advance (continued) C. The customer may be required to pay an advance on all Schedule 10 accounts for which the customer is financially responsible and requesting service. D. The advance for each metered service point will be equal to the estimated monthly billings for the upcoming irrigation season. l. A portion of the advance will be applied to satisfr each monthly bill until the advance is depleted. (2) Irrigation Deposit A. A deposit may be required from a current or previous Schedule 10 customer prior to providing electric service: l. If the customer received two (2) or more past due notices for non-payment of Schedule l0 service during the most recent inigation season or the last 12 month period during which service was received; or 2. If the Schedule l0 customer was required to pay an advance for the previous inigation season and the balance on December 3l was less than $25,000. B. As an alternative to payment a deposit may be satisfied by: 1. A guarantee of payment from a bank or financial institution acceptable to the Company; or 2. A guarantor acceptable to the Company. C. A Schedule 10 customer that meets the requirements for payment of a deposit may be required to pay a deposit for each Schedule l0 account for which the customer is financially responsible and requesting service. D. The deposit for each metered service point is equal to the estimated monthly bill for the two highest months of usage within the last two (2) irrigation seasons. The deposit must be paid before the Company will provide electric service. 2. BANKRUPT CUSTOMERS Ifan applicant for service or a customer has sought any form ofreliefunder the Federal Bankruptcy Laws, has been brought within the jurisdiction of the bankruptcy court for any reason in an involuntary manner, or has had a receiver appointed in a state court proceeding, then a deposit or advance may be required as a condition ofservice. (Continued) Submitted Under Case No. PAC-E-16-06 ISSUED: February 16,2016 EFFECTM: May 16,2016 V,ROCKYMOUNTAINYwwea\ r ow,sror or PAcrFrcoRP I.P.U.C. No.1 First Revision of Sheet No. 9R.4 Canceling Original Sheet No.9R.4 3. 4. EXPLANATION OF DENIAL OF SERVICE OR REQUIREMENT OF DEPOSIT If the Company denies service or requires a deposit as a condition of providing service, then it must immediately provide an explanation regarding the reason for the deposit or denial of service. If service is currently being provided to the premises occupied by an applicant, the Company shall provide written notice of its refusal to serve. AMOUNT OF'DEPOSIT A deposit required as a condition of service shall not exceed one-sixth of the Company's estimate of annual billings for residential and small commercial customers. For industrial and large commercial customers, deposits shall not exceed two (2) months of the Company's estimated peak billings. The Company shall advise the customer or applicant that the deposit may be paid in two (2) equal installments with the first installment paid at the time of application and the second installment paid in one (l) month. INTEREST ON DEPOSITS Interest on deposits held by the Company shall be accrued at the rate established annually by the order of the Idaho Public Utilities Commission. Interest shall be computed from the time the deposit is made until it is returned or applied to the bill. lnterest will not accrue on a deposit if service is terminated temporarily at the request of a customer who leaves the deposit with the Company for future use as a deposit or if service has been permanently terminated and the Company has been unsuccessful in its attempt to refund a deposit. RETURN OF DEPOSIT 5. 6. (b) (a) (c) Existing Residential and Small Commercial Customers If the customer has paid all undisputed bills and has no more than one (l) late payment during the past twelve (12) consecutive months of service, the Company shall promptly return the deposit (with accrued interest) by either crediting the customer's current account or issuing a refund. Irrigation Customers If the customer has paid all undisputed bills and has no more than one (l) past due notice during the past twelve (12) month period during which service was received, the Company shall promptly retum the deposit (with accrued interest) by either crediting the customer's current account or issuing a refund. Former Customers Upon termination of service, the deposit, with accrued interest, shall be credited to the final bill. The balance of the deposit remaining, if any, shall be returned promptly to the Customer. (Continued) Submitted Under Case No. PAC-E-I6-06 ISSUED: February 16, 2016 EFFECTM: May 16,2016 vRocKYI!-(PO\II,ER \ A Drvrsrq{ oF PAcrFrcoRP ocK MOUN'I:AIN I.P.U.C. No.1 Original Sheet No.9R.5 7. 8. 9. 6.RETURN OF DEPOSIT (continued) (d) Retention During Dispute The Company may withhold the release of the deposit pending the resolution of a dispute. For residential and small commercial customers, interest will be paid for the entire period over which the deposit was held. For industrial, large commercial and irrigation customers, the Company will continue to pay interest if the resolution is in the customer's favor. TRANSFER OF DEPOSIT A Deposit, less any outstanding balance, shall be transferable and applicable for service to the same customer at a new location within the Company's service area. Deposits shall not be transferred from one customer to another customer or between classes of service. RECEIPT T'OR DEPOSIT When payment of a deposit is made, a receipt shall be furnished to each applicant or customer for the amount deposited. RETURN OF IRRIGATION ADVANCE PAYMENTS Any customer advance remaining at the end of the inigation season will first be applied to any required deposit for the upcoming season before being refunded to the customer. Upon customer request, the Company will conduct an in-season review of the actual electric consumption and associated advance payment. The company may refund at the customer's request the portion of the advance in excess of the revised usage estimate for the remainder ofthat season. LARGER OR NEW DEPOSITS AND IRRIGATION ADVAI\ICES Nothing in this regulation shall prevent the Company from requiring a deposit or advance or a larger deposit or advance from existing customers in conformity with the standards set forth in this regulation. Should a larger or new deposit or advance be required, the reason therefor shall be specified in writing to the customer. Submitted Under Case No. PAC-E-16-06 ISSUED: May 16,2016 10. EFFECTIVE:May 16,2016 -ROCKYMOUNTAINYrcwea \ a ovtstor oF PAcrFtcoRP I.P.U.C. No. I First Revision of Sheet No. 9R.2 Cancelins Original Sheet No. 9R.2 (b) Small Commercial Customers An applicant may be required to pay a deposit as a condition of service for the reasons stated in (a) above, or additionally, when the applicant is applying for service for the first time from the Company. (c) Industrial andr Large Commercial@ TheCompanymayrequireadeposit@fromcurrentandprospective industrial or large commercial customers @r the reasons stated in (b) above, or additionally: (1) The s€ustomer fails to pay the account on or before the date such payment is delinquent. @ ine yest (3)--The nature of the ceustomer's operation is extremely speculative or subject to a high probability of failure. (d) Irrigation Customers The Company may require a deposit or advance from past. current. and prospective irrigation. (Schedule l0). customers prior to providing electric service as follows: (1) Irrisation Advance A. An advance may be required from current. previous. or prospective Schedule l0 customers prior to providing electric service: 1. If the customer had a cumulative past due balance equal to or greater than $25.000 on December 31: 2. If the customer had service disconnected for nonpayment during the last four (4) years: 3. If at any time the customer sought any form of relief under the Federal Bankruptcy Laws. or has been discharged from bankruptcy. or whose receivership proceeding has been terminated. or whose bankruptcy proceedings have been dismissed: or 4. If the applicant is requesting service for the first time. B. As an alternative to payment an advance may be satisfied by: l. A guarantee of payment from a bank or financial institution acceptable to the ComDany: or Submitted Under Wase No. PAC-E-16-06 ISSUED: EF.FECTTVE: I.P.U.C. No. I V,ROCKY MOUNTAINYrcwea\ a ovrsroru oF PAclFrcoRP First Revision of Sheet No.9R.2 Cancelins Original Sheet No.9R.2 2. A guarantor acceptable to the Company. rf an apptieant for seff I aws; has been breu i*+ inveluntary merurer; er has hed e reeeiver appeinted in a state eeurt preeeeding; then a depesit may iee' ;mmeei*ety previa pr€Yi (Continued) Submitted Under Wase No. PAC-E-16-06 ISSIIED:EFFECTTVE: -ROCKYMOUNTAIN-4frpanteR \ o o*s,otu ot PAcrFrcoRP I.P.U.C. No. 1 SecondPirs+ Revision of Sheet No. 9R3 Canceling @Sheet No. 9R.3 (1) Irrieation Advance (continued) C. The customer may be required to pay an advance on all Schedule l0 accounts for which the customer is financially responsible and requestins service. D. The advance for each metered service point will be equal to the estimated monthly billings for the upcoming irrigation season. 1. A portion of the advance will be applied to satisfr each monthlv bill until the advance is depleted. (2) Irrisation Denosit A. A deposit may be reouired from a current or previous Schedule 10 customer prior to providins electric service: l. If the customer received two (2) or more past due notices for non-payment of Schedule l0 service during the most recent irrieation season or the last 12 month period durins which service was received: or 2. If the Schedule l0 customer was required to pay an advance for the previous irrigation season and the balance on December 31 was less than $25.000. B. As an alternative to payment a deposit may be satisfied by: l A guarantee of payment from a bank or financial institution acceptable to the Company: or 2. A guarantor acceptable to the Company. C. A Schedule 10 customer that meets the reouirements for payment of a deposit may be required to pav a deposit for each Schedule 10 account for which the customer is financially responsible and requestins service. D. The deposit for each metered service point is equal to the estimated monthly bill for the two hishest months of usaee within the last two (2) irrigation seasons. The deposit must be paid before the Company will orovide electric service. BANKRUPT CUSTOMERS Ifan applicant for service or a customer has sought any form ofreliefunder the Federal Bankruptcy Laws, has been brought within the jurisdiction of the bankruptcy court for any reason in an involuntary manner, or has had a receiver appointed in a state court proceeding, then a deposit or advance may be required as a condition of service. (Continued) Submitted Under Adyiee tetter Ne: 0 ase No. PAC-E-16-06 2. ISSUED:EFFECTTVE:@ ROCKY MOUNTAIN POWER A ONISIoi{ OFPAOFrcONP I.P.U.C. No. I SecondFirs+ Revision of Sheet No. 9R.3 Canceling @Sheet No. 9R.3 If the €empany denies sen'iee er reqi-es a depesit as a eenditien ef previding serviee; then it must + erovi{. AMEUNT gtr DEPESIT eempany shall advise the €ustemer er applieant that the depesit may be paid in trre (2) equel installments rvith the first installment paid et the time ef applieatien and the seeend instalknent peid inene{-l)+en+n terminated temperrily at the reqtrest ef a eustemer rvhe leaves the depesit withthe eempan ' fer (e) Edsting Residential end Smoll €errrereial €usteners tf tne eustemer nes er+ssuingr+efffi+ @ Upen terminatien ef serviee; the depesit; with aserued interest; shal be eredited te the final bill' The balanee ef the depesit remainirg; if eny; shall be returred premptly te the €us+eme* the €empany will eentinue te pay interest if the reselutien is in the eustemer's faver, €en+inuee) Submitted Under Wase No. PAC-E-I 6-06 ISSUED:EFFECTTVE:@ V,ROCKY MOUNTAINYpantee \ a ovrsrotr or PAcrFrcoRP I.P.U.C. No. I First Revision of Sheet No. 9R.4 Canceline Original Sheet No. 9R.4 3. EXPLANATION OF DENIAL OF SERVICE OR REQUIREMENT OF DEPOSIT If the Company denies service or requires a deposit as a condition of providing service, then it must immediately provide an explanation regarding the reason for the deposit or denial of service. If service is currently being provided to the premises occupied by an applicant, the Company shall provide written notice of its refusal to serve. 4. AMOUNT OF DEPOSIT A deposit required as a condition of service shall not exceed one-sixth of the Company's estimate of annual billings for residential and small commercial s€ustomers. For industrial and large commercial cGustomers, deposits shall not exceed two (2) months of the Company's estimated peak billings. The Company shall advise the seustomer or applicant that the deposit may be paid in two (2) equal installments with the first installment paid at the time of application and the second installment paid in one (l) month. 5. INTEREST ON DEPOSITS Interest on deposits held by the Company shall be accrued at the rate established annually by the order of the ldaho Public Utilities Commission. Interest shall be computed from the time the deposit is made until it is returned or applied to the bill. Interest will not accrue on a deposit if service is terminated temporarily at the request of a q€ustomer who leaves the deposit with the Company for future use as a deposi! or if service has been permanently terminated and the Company has been unsuccessful in its attempt to refund a deposit. 6, RETURN OF DEPOSIT (a) Existing Residential and Small Commercial Customers If the geustomer has paid all undisputed bills and has no more than one (1) late payment during the past twelve (12) consecutive months of service, the Company shall promptly return the deposit (with accrued interest) by either crediting the ceustomer's current account or issuing a refund. (b) Irrigation Customers If the customer has oaid all undisputed bills and has no more than one (l) past due notice during the past twelve (12) month period during which service was received. the Company shall promptly retum the deposit (with accrued interest) b), either crediting the customer's current account or issuing a refund. (c) Former Customers Upon termination of service, the deposit, with accrued interest, shall be credited to the final bill. The balance of the deposit remaining, if any, shall be returned promptly to the Customer. (Continued) Submitted Under Wase No. PAC-E- I 6-06 ISSUED: : August 14; 2006February 16. 2016-EFFECTM: ROCKY MOUNTAIN POWER A OMStOt{ Of PA6TFTCOiP I.P.U.C. No.1 First Revision of Sheet No.9R4 Cancelinq Original Sheet No.9R4 Ier reside*iat ane s the Cempany will eentintre te -ay interest if the resolutien is i+the Custemer's fever, €en*inuea) Submitted Under ffiase No. PAC-E-16-06 ISSUED: EFFECTTVE: vRocKYMOUNTAIN-(PO\n ER! a orvtsroN oF PActFtcoRP LP.U.C. No. I Orieinal Sheet No.9R.5 6. RETURII OF DEPOSIT (continued) (d) Retention During Dispute The Company may withhold the release of the deposit pending the resolution of a dispute. For residential and small commercial customers, interest will be paid for the entire period over which the deposit was held. For industrial, large commercial and irrigation customers, the Company will continue to pay interest if the resolution is in the customer's favor. 7. TRANSFER OF DEPOSIT A Deposit, less any outstanding balance, shall be transferable and applicable for service to the same customer at a new location within the Company's service area. Deposits shall not be transferred from one customer to another customer or between classes of service. 8. RECEIPT FOR DEPOSIT When payment of a deposit is made, a receipt shall be furnished to each applicant or customer for the amount deposited. 9. WRETURN OF' IRRIGATIONADVANCE PAYMENTS ^n advanee payment mry irrigatien eustemers ffi Anv customer advance remaining at the end of the irrisation season will first be applied to any required deposit for the upcoming season before beine refunded to the customer. Upon customer request. the Comoany will conduct an in-season review of the actual electric consumption and associated advance payment. The company may refund at the customer's request the portion of the advance in excess of the revised usage estimate for the remainder ofthat season. 10. LARGER OR NEW DEPOSITS AND IRRIGATION ADVANCES Nothing in this regulation shall prevent the Company from requiring a deposit or advance or a larger deposit or advance from existing customers in conformity with the standards set forth in this regulation. Should a larger or new deposit or advance be required, the reason therefor shall be specified in writing to the customer. Submitted Under Case No. PAC-E-16-06 ISSUED: May 16.2016 EFFECTIVE: May 16.2016