20071004Ottens direct.pdf

Brad M. Purdy
Attorney at Law
Bar No. 3472
2019 N. 1ih St.
Boise, ID. 83702
[phone]
FAX: [phone]
bmpurdyCQJ hotmail.com
Attorney for Petitioner
Community Action Partnership
Association of Idaho
Ir""
REC f: \\1 r"
'-' ' ,.
2UOl SEP 2.8 PH 2~ \ 3
IDAHO PUBLIC
UTlUTIES COMrwUSSlOI'
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF ROCKY
MOUNTAIN POWER FOR
APPROV AL OF CHANGES TO ITS
ELECTRICAL SERVICE SCHEDULES
CASE NO. PAC-07-
COMMUNITY ACTION PARTNERSHIP ASSOCIATION OF IDAHO
DIRECT TESTIMONY OF
TERI OTTENS
DIRECT TESTIMONY OF TERI OTTENS
I. INTRODUCTION
Please state your name and business address.
My name is Teri Ottens. I am the Policy Director of the Community Action Partnership
Association of Idaho headquartered at 5400 W. Franklin, Suite G, Boise, Idaho, 83705.
On whose behalf are you testifying in this proceeding?
The Community Action Partnership Association of Idaho ("CAP AI") Board of Directors
asked me to present the views of an expert on, and advocate for, low income customers of
Pacifi Corp on behalf of CAP AI. CAP AI's participation in this proceeding reflects our
organization s view that low income people are an important part of PacifiCorp
customer base, and that these customers will be adversely impacted by the proposed
changes to the Company s electric service schedules.
CAP AI is an association of Idaho s six Community Action Partnerships, the Idaho
Migrant Council and the Canyon County Organization on Aging, Weatherization and
Human Services, all dedicated to promoting self-sufficiency through removing the causes
and conditions of poverty in Idaho s communities.
Community Action Partnerships ("CAPs ) are private, nonprofit organizations
that fight poverty. Each CAP has a designated service area. Combining all CAPS, every
county in Idaho is served. CAPS design their various programs to meet the unique needs
of communities located within their respective service areas. Not every CAP provides all
of the following services, but all work with people to promote and support increased self-
sufficiency. Programs provided by CAPS include: employment preparation and dispatch
education assistance child care, emergency food, senior independence and support
clothing, home weatherization, energy assistance, affordable housing, health care access
and much more.
Have you testified before this Commission in other proceedings?
DIRECT TESTIMONY OF TERI OTTENS
Yes, I have testified on behalf of CAP AI in numerous cases involving PacifiCorp, Idaho
Power Company, A VISTA, and United Water. CAPAI participated in the recent
PacifiCorp general rate case and was a signatory to the settlement reached in that
proceeding, in the merger case and subsequent Rocky Mountain Power case filing. In
addition, CAP AI has also submitted comments in Intermountain Gas Company s PGA
filing.
Why has CAP AI intervened in this particular proceeding?
CAP AI is concerned that the combined proposed increases in fee and rates will add to the
already unwieldy energy cost burden that low income families in Idaho face. This is of
significant importance to PacifiCorp s low-income Idaho customers and those who must
provide services to them.
According to the Department of Commerce in the State of Idaho, 12% of the
State s population, when using the 2000 Census , falls within federal poverty guidelines
and 21 % fall within the state guidelines set at 150% of poverty levels. The 2000 Idaho
Census reveals that those living in poverty are categorized as 8.3% elderly, 13.
children, 8.3% all other families, 35.3% single mothers and 34% all others. In Idaho
104 537 households representing 227 000 citizens were eligible in Idaho for energy
assistance and weatherization but only 31903 households statewide received LIHEAP
assistance in the 2004 heating season and only 1 395 homes received weatherization
services (356 in the Idaho PacifiCorp service area).
According to the Department of Energy, the "affordability burden" for total home
energy is set nationwide at 6% of gross household income and the burden for home
heating is set at 2% of gross household income. Idaho ranks # 4 in the nation with the
highest energy burdens. There is a gap of over $50 million between what Idahoans can
afford to pay (based on federal standards) for energy in 2007 and what they actually paid.
DIRECT TESTIMONY OF TERI OTTENS
Currently the LIHEAP program sends approximately $11.3 million (for energy
assistance, weatherization and administration) to Idaho.
How do these increases proposed by PacifiCorp directly impact its low-income
customers?
A. CAPAI cannot accurately assess the answer to this question. We have asked for
associated costs of impact upon low-income customers over the past three rate and
merger cases only to be told that PacifiCorp does not track these costs. In addition, the
testimony of witness Rockney, while indicating that costs have now been calculated that
relate to the disconnection of a customer for non-payment, the information does not
match earlier information provided by the Company in the recent "Low Income
Arrearage Study" (March, 2007 , page 30), attached hereto as Exhibit -' However
because we know that low income customers have a higher energy burden and that they
are the group of customers most likely to be disconnected due to non-payment
particularly after the winter months when their burden is highest, that the impact or
increases fees will be significant upon this customer group.
Why is the Company s proposal to recover collection costs from customers a concern to
CAP AI?
Low income customers already pay a far higher percentage of their income for energy
costs. They are also the group most likely to be caught in the bind of delinquent utility
payments, despite the existence of LIHEAP payments, since only 25% of those who are
eligible for energy payment assistance receive such support.Being able to come up
with the dollars or sponsors to cover the costs of reconnection has been a huge problem
for people who have been disconnected.
, in summary, do you support the request for changes to the electric service schedule
particularly in regards to increases in fees?
DIRECT TESTIMONY OF TERI OTTENS
, we feel this request places undue burden upon the low income of Idaho and should
not be approved.
Does that conclude your testimony?
Yes it does.
DIRECT TESTIMONY OF TERI OTTENS