20170419Petition for Intervenor Funding.pdf

Brad M. Purdy
Attorney at Law
Bar No. 3472
2019 N. 17ft St.
Boise,lD. 83702
[phone] (Land)
[phone] (Cell)
[e-mail]
Attorney for Petitioner
Community Action Partnership
Association of Idaho
ISB Bar No. 3472
IN THE MATTER OF THE APPLICATION
OF PACIFICORP DBA ROCKY MOUNTAIN
POWER FOR PRUDENCY
DETERMINATION OF DEMAND-SIDE
MANAGEMENT EXPENDITURES
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NOS. PAC-E-I6-14
COMMUNITY ACTION
PARTNERSHIP ASSOCIATION
OF IDAHO'S PETITION FOR
INTERVENOR FUNDING
I. INTRODUCTION
COMES NOW, the Community Action Partnership Association of Idaho (CAPAI) and,
pursuant to Idaho Code $ 6l-617A and Rules 161-165 of the Commission's Rules of Procedure,
IDAPA 31.01.01.161-165, petitions this Commission for an award of intervenor funding in the
above-captioned proceeding.
II. BACKGROUND
On October 11,2016, Rocky Mountain Power's (RMP or Company) filed an Application
seeking an Order from the Commission designating that RMP's Demand-Side Management
(DSM) expenditures in the amount of $7,460,715, for program years 2014-2015, as prudently
incurred.
CAPAI'S PETITION FOR INTERVENOR FUNDING I
In support of its Application, RMP presented the annual DSM reports for each year, the
results of the progr:Lm cost-effectiveness analysis, and the third-party program evaluation reports.
The Application also included four Attachments detailing various aspects of its DSM portfolio
and included a specific analysis for each program.
Pursuant to the Commission's Notice of Modified Procedure and Order No. 33679 on
December 20,2016, RMP's Application was handled through modified procedure. Accordingly,
CAPAI and the Commission Stafffiled comments in response to the Company's Application on
March 15,2017. No other parties intervened in this proceeding. RMP filed Reply Comments
on April 5,2017.
III. CAPAI'S COMMENTS
CAPAI raised a number of points and made rurmerous suggestions and proposals in its
written comments as follows:
l. Number of Homes Weatherized
RMP stated in its application that the number of homes being weatherized by the
agencies providing weatherization services in RMP's territories had decreased. Although the
number of homes being weatherized is trending up, CAPAI agrees that the agencies do face
difficulties and has discussed this issue with the Company with the informal agreement that there
could be assistance provided by RMP to locate eligible LIWA recipients.
2. Gas Prices
RMP'S contention that the low cost-effectiveness for the LIWA program is primarily due
to a "decrement" values in the Company's 2015 Integrated Resource Plan (i.e., low gas prices).
CAPAI pointed out that neither it nor the agencies have any control over natural gas pricing
CAPAI'S PETITION FOR INTERVENOR FUNDING 2
fluctuations. As discussed below, CAPAI did, however, propose changes to the manner in which
utility frrnds are invested on energy saving measures that produce a greater refurn.
3. Changes in LIWA Program
As mentioned, CAPAI has proposed considering changes to the LIWA program
such as devoting utility funds to those weatherization measures which result in the greatest
energy savings. If properly implemented, this strategy has the potential to significantly-increase
LIWA's cost-effectiveness. As discussed below, CAPAI proposed an informal advisory working
group including the Company, Staff, and CAPAI. Although RMP's Reply Comments did not
support the formation of an informal advisory working group, informal conversations with RMP
staffresulted in the possibility of coordinating with CAPAI and the weatherization agencies to
improve progrcm implementation and performance. CAPAI also reiterates its commitment and
dedication to assisting in development of implementation improvements to this program.
4. \ilorking Group
RMP contends that "little has changed since the last collaborative" and that it would be
an additional financial burden on the LIWA progrcm to conduct a working group. CAPAI would
like to clariff that this suggestion was a good faith eflon to ensure that all interested stakeholders
could participate in a discussion of methods with the goal of improving the LIWA progftrm.
CAPAI has already invested considerable effort in crafting possible changes to the LIWA
program that have the potential to improve its effectiveness. Thus, there is no reason that the
advisory group effort need be a formal meeting involving travel costs by RMP. In fact, it could
be accomplished via teleconference or other inexpensive means of communication. CAPAI's
point was to simply share its proposal and obtain a reaction from Staff and the Company.
CAPAI'S PETITION FOR INTERVENOR FUNDING 3
Consequently, very little cost need be incurred and CAPAI believes that the potential for
improvements to the LIWA program is very real.
5. Gain Insight from RMP's Program Evaluation
CAPAI believes that the Company's pending program evaluation of LIWA could
potentially produce valuable inforrnation regarding areas and aspects of RMP's LIWA program
that need improvement and, thus, create the potential to increase the energy savings realized by
adjusting the implementation of the program. As RMP has described the program evaluation to
CAPAI, it is a more thorough analysis of the progftrm and will also highlight aspects of LIWA
that are beneficial and could be enhanced. Given RMP's statement that it will release the
progftrm evaluation this year, CAPAI submitted that it makes sense to wait for the outcome of
the evaluation before making any radical changes. Thus, depending on what time of the year that
the evaluation is released, it makes sense to hold offon any significant changes to LIWA
pending the evaluation's results. This does not mean, however, that informal discussions, as
described above could not begin sooner than the release date of the progftrm evaluation.
6. CAPAI's Recommendations Regarding RMP's Recovery of DSM Expenses
CAPAI recommended that the Company's investrnents in not only LIWA, but all DSM progrcms
as well, be deemed prudent and that the Company be allowed recovery of said investments.
V. PROCEDURAL REQUIREMENTS
Rule 161 Requirements:
RMP is a regulated, electric and gas public utility with gross Idaho intrastate annual
revenues exceeding three million, five hundred thousand dollars ($3,500,000.00).
Rule 162 Requirements:
(01) Itemized list of Expenses
4CAPAI'S PETITION FOR INTERVENOR FUNDING
Consistent with Rule 162(01\ of the Commission's Rules of Procedure, an itemized list of
all expenses incurred by CAPAI in this proceeding is attached hereto as Exhibit "A."
(02) Statement of Proposed Findings
CAPAI's statement of proposed findings is effectively outlined above. To summarize,
CAPAI proposes the following:
l. Collaborate with RMP to identiff additional eligible LIWA recipients to enhance
the program' s effectiveness;
2. Propose ideas for how to more effectively implement the LIWA program to all
interested stakeholders;
3. Assemble an informal advisory working group to discuss the feasibility of
CAPAI's ideas for improving the LIWA progrirm;
4. Analyze RMP's progam evaluation due later this year and use the information
gained to firther enhance the program;
5. Finally, CAPAI proposes that RMP's request for a ruling by the Commission deeming its
DSM investments as prudently incurred be granted and recovery of said investment
allowed.
(03) Statement Showing Costs:
As outlined above, CAPAI fully participated in every aspect of this proceeding from start
to finish and provided input and asserted issues not raised by Staffand other parties. For the
reasons stated throughout this Petition, CAPAI respectfully submits that the costs it seeks to
recover and set forth hereto in Exhibit A, are reasonable in amount.
Finally, regarding the reasonableness of CAPAI's costs, CAPAI notes that it has no
choice but to minimize its expenses and maximize the eflect that its involvement has in
proceedings before the Commission in light of its limited financial resources for this type of
CAPAI'S PETITION FOR INTERVENOR FUNDING 5
effort. Suffice it to say that CAPAI seldom can afford to retain an outside expert witness and
does so only in particularly technical and critical proceedings. Otherwise, it must adopt a
resourceful approach using what limited resources that are at its disposal. In this regard, CAPAI
relies heavily on its Executive Director, Christina Zatnor4 for all technical and policy aspects of
this and any other IPUC case that CAPAI intervenes in. In that and every other respect, Ms.
Zamora is a highly-qualified expert who contributes substantial amounts of time and resources so
that CAPAI is able to meaningfully participate in these cases and provide the Commission with
unique and valuable perspective and information. Were CAPAI to track and bill her hours at
anything remotely resembling a modest market rate, CAPAI's funding requests would increase
significantly.
Finally, CAPAI notes that its legal counsel's stated rate is less than the average first year
associate practicing in Boise, Idaho. CAPAI's counsel has nearly 32 years of practice as an
attorney, 26 years of which include public utilities work, one of the most highly specialized
fields in the practice of law. Hourly rates for an attorney with commensurate experience in such
a specialized area of practice in this market are at least 2-3 times what CAPAI seeks for recovery
in its intervenor funding requests. Furthermore, in the roughly thirteen years that CAPAI's legal
counsel has represented CAPAI in PUC proceedings, counsel has increased his rate only 2-3
times and, even then, the total increase over fourteen years has been $5O/trour and remains at an
hourly rate fairly representative of what first year attomeys are billed at in the Boise, Idaho area.
Due to the limits on intervenor funding, per Idaho Code Section 6l-617A, and the desire
to ensure that its intervenor funding requests, it is common practice for CAPAI to omit a material
amount of actual expenses in order to ensure that its funding requests are not considered
unreasonable.
6CAPAI'S PETITION FOR INTERVENOR FUNDING
Based on the foregoing, CAPAI respectfully submits that the costs incurred and requested
in this Petition are reasonable in amount. CAPAI, therefore, respectfully submits that its fees
and costs are reasonable in amount.
(04) Explanation of Cost Statement
CAPAI is a non-profit corporation overseeing a number of agencies who fight the causes
and conditions of poverty throughout Idaho. The majority of CAPAI's funding sources impose
conditions or limitations on the scope and nature of work eligible for funding. CAPAI, therefore,
has relatively little "discretionary" funds available for all projects, including participating in
IPUC proceedings.
CAPAI's sole source of funding to cover the costs of intervention before this
Commission is the LIHEAP progftrm. CAPAI's LIHEAP budget is limited and if recent years
serve as any indication, uncertain as to its future levels. Furthermore, CAPAI has no monetary
stake in the outcome of this or any other proceeding before the Commission in the sense that it
does not represent for-profit businesses or advocacy $oups representing industry groups.
Rather, CAPAI is a voice for the low income ratepayers of RMP and all other regulated utilities
in Idaho.
Thus, were it not for the availability of intervenor frrnds and past awards by this
Commission, CAPAI would not be able to participate in cases before this Commission
representing an important and otherwise unrepresented and gowing segment of regulated public
utility customers. Even with intervenor funding, participation in Commission cases constitutes a
significant financial hardship because CAPAI must pay its expenses as they are incurred, not if
and when intervenor funding becomes available.
(05) Statement of Difference
7CAPAI'S PETITION FOR INTERVENOR FUNDING
CAPAI was the only party to propose collaborating with RMP to better identiff and
locate potential eligible LIWA recipients which could enhance the effectiveness of the progftrm,
to propose possible changes to the implementation of the LIWA program making it more
effective, to propose the assembly of an informal advisory working goup for this purpose,
analyze RMP's LIWA program evaluation due later this year for the purpose of possibly
realizing additional changes that could be made to the LIWA progftrm.
Consequently, CAPAI's position differed materially from that of Staff s for purposes of
intervenor funding requirements.
(06) Statement of Recommendation
RMP's low income customers constitute a significant and increasing segment of the
Company's residential ratepayers. In today's increasingly challenging economic times, issues
affecting low income public utility ratepayers also become increasingly important. To the extent
that low income customers are unable to reduce their energy consumption due to limited
financial and other means and to the extent that the poor are most vulnerable to disconnection
due to inability and failure to pay their bills, this clearly and positively affects the general body
of RMP's customers through, among other things, the reduction of bad debt expense, collection
costs, and the lost revenue from customers who cannot afford to pay their elecftic bills.
(07) Statement Showing Class of Customer
To the extent that CAPAI represents a specific customer class of RMP, it is the
residential class.
8CAPAI'S PETITION FOR INTERVENOR FUNDING
RESPECTFULLY SLJBMITTED, this l9th day of April,20l7.
(
Brad M. Purdy
9CAPAI'S PETITION FOR INTERVENOR FUNDING
CERTIFICATE OF SERVICE
I hereby ceftiry that on this 196 day of April,z}l7,I caused the foregoing document to
be served on the following via electronic service:
Diane Hanian
Secretary
Idaho Public Utilities Commission
[e-mail]
Daniel Solander
Ted Weston
Rocky Mountain Power Co.
d. solander@Facifi coro. com
t. weston@f acifi corp. com
Benjamin Otto
Idalro Conservation League
botto@idahoconservation. ore
Brad M. Purdy
CAPAI'S PETITION FOR INTERYENOR FUNDING 10
EXHIBIT *A'
EXHIBIT *A"
ITEMIZED EXPENSES
CAPAI'S STATEMENT SHOWING COSTS
Case PAC-E-16-14
Tasks performed during course of case.l
Review RMP's Application and supporting Attachments.
Brad Purdy
Christina Zarrcra
Analyze means of enhancing the LIWA program through implementation changes.
Brad Purdy
Christina Zarnora
Investigate RMP's claims that the number of homes in its service territory being weatherized
under LIWA and, if true, reasons therefore. Conferences with eastem Idaho Community Action
Agencies.
Brad Purdy 3.0
Christina Zarrora 2.5
3.8
1.0
3.5
3.0
Preparation for and participation in teleconference with CAPAI and RMP personnel re all issues
related to LIWA including both those identified in Application and through CAPAI's analysis.
Brad Purdy 3.0
Christina Zarnora 1.6
Receipt and review of all pleadings filed by other parties including Staff and RMP such as
StafPs comments and RMP's reply comments.
Brad Purdy 2.0
Christina Zxnora 1.2
Assess and discuss the possibility of forming an advisory working group to discuss methods by
which to improve the LIWA program.
Brad Purdy 3.2
Christina Tannora 1.4
t Although CAPAI has strived to include every aspect of work performed on this case, the virnral enfiy of daily time
sheets describing every action taken in any proceeding would result in an overflow of information. Consequently,
CAPAI states that the foregoing hours and actions taken are more in the form of an overview and not a daily, by the
minute summarization.
CAPAI'S PETITION FOR INTERVENOR FUNDING 1l
Investigate what RMP's2017 LIWA program evaluation will entail ard analyze potential ef;fects
on how to utilize evaluation to enhance LIWA.
Brad Purdy 2.4
Christina Zarnora 1.0
Receip and review all Commission Notices and Orders.
Brad Purdy
Christina Zamora
Miscellaneous communications, including meetings, with client to formulate strategy and
develop comments. Compile and file CAPAI's comments.
Brad Purdy
Christina T.amora
Brad Purdy (28.6 hrs @ $150.00/hr)
Christina Zamora (15 hrs @ $30.50 hr.)
Total Fees
Copies, postage & miscellaneous
Total Fees and Costs
4.7
1.3
3.0
2.0
$4"290.00
$4s7.s0
$4.747.50
$1s0.00
4.897.50
CAPAI'S PETITION FOR INTERVENOR FUNDING t2