20090529Thaden Direct.pdf

BEFORE THE
ißn~ ~~ ~ 2,9 M-\ \\ ~ 26
IDAHO PUBLIC UTILITIES COMMISSIO~DNtQJ;_\"lê?,ì'i\)'è
i.lTitrcrò, t.\)(\C"'-'''
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION FOR THE ) CASE NO. AVlJE-09-1/
AUTHORITY TO INCREASE ITS RATES) AVU-G-09-1
AND CHARGES FOR ELECTRIC AND )
NATURAL GAS SERVICE TO ELECTRIC )
AND NATURAL GAS CUSTOMERS IN THE )STATE OF IDAHO. )
)
)
DIRECT TESTIMONY OF CURTIS THADEN
IDAHO PUBLIC UTILITIES COMMISSION
MAY 29,2009
1
2 for the record.
Q.Please state your name and business address
3 A.My name is Curtis Thaden. My business address
4 is 472 West Washington Street, Boise, Idaho.
5
6
By whom are you employed and in what capacity?Q.
A.I am employed by the Idaho Public Utilities
7 Commission as a Utili ties Compliance Investigator. I
8 accepted that position with the Consumer Assistance Staff
9 in July 2007.
10 Q.What is your professional and educational
11 background?
12 Prior to my employment with the Idaho PublicA.
13 Utilities Commission, I had 18 years experience working in
14 private industry for Hewlett Packard in a variety of
15 manufacturing positions which include Material Handler,
16 Administrative Assistant, Technical Product/Process
17 Specialist and Engineering Coordinator. In my position as
18 an Engineering Coordinator, I worked with engineering teams
19 to document and communicate, worldwide, the changes made to
20 products and manufacturing processes. I received an
21 Associate of Science Degree from Links School of Business
22 (now known as ITT Technical Institute) in Boise, Idaho, in
23 September of 1983. Additionally, I am a licensed real
24 estate agent in the State of Idaho.
25
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 1
STAFF
1 Q.Have you previously testified before the
2 Commission?
3 A.Yes, I have.
4 Q.What is the purpose of your testimony in this
5 proceeding?
6 A.i will be addressing the following:
7 (1) demographics of the 10 Idaho Counties in Avista' s
8 service territory; (2) factors affecting customers' ability
9 to pay their bills; (3) programs offering financial
10 assistance to Avista' s Idaho customers; (4) programs,
11 payment plans and payment arrangements offered by Avista to
12 its customers; and (5) Low-Income Weatherization and other
13 Energy Efficiency Programs.
14 Q.Please summarize your recommendations to the
15 Commission as discussed in your testimony.
16 A.Staff recommends that the Commission:
17 (1) direct Avista to confer with Staff to assess the
18 effectiveness of the Company's new payment plans and
19 identify ways to decrease the number of customer defaults
20 on payment arrangements; and 2) encourage the Company to
21 look for new and creative ways to increase energy
22 efficiency and provide assistance to customers,
23 particularly those customers who are economically
24 disadvantaged.
25
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 2
STAFF
1 Demographics and Factors Affecting Bill Payment
2 Q.Has the Staff prepared a demographic profile
3 of Avista's service territory in Idaho?
4 A.Yes. Exhibit No. 127 includes both
5 demographics obtained from the most recent Census Bureau
6 data and unemployment data obtained from the Idaho
7 Department of Labor for each of the counties served by
8 Avista. For comparison, this Exhibit also includes
9 statistics for the State of Idaho and the United States.
10 Exhibit No. 128 shows the 2009 Federal Poverty Level (FPL)
11 Guidelines. For purposes of Staff's analysis, income at or
12 below 100% of poverty was used. A map of the ten counties
13 served by Avista can be found in Exhibit No. 129.
14 Q.In reviewing the data, what stands out as
15 particularly noteworthy?
16 A.Unemployment is a particularly acute problem
17 in Avista's service territory. Seven out of the ten
18 counties within the service territory exceed the April 2008
19 seasonally adjusted state average unemployment rate of
20 7.0%. i Five of these seven counties (Benewah, Boundary,
21 Clearwater, Idaho and Shoshone) have unemployment rates
22 exceeding 9% and rank in the state's top eleven counties
23 with the highest unemployment. Four of these five counties
24 (Benewah, Boundary, Clearwater, and Shoshone) have double-
25 i At the time this testimony was pre-filed in May 2009, the most recent
forecast of unemployment data was from April 2009.
CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09 THAEN, C (Di) 3
STAFF
1 digi t unemployment rates.
2 When comparing each county wi thin the service
3 territory, it is obvious that some counties are better off
4 than others. Kootenai County has the area's highest median
5 income and the lowest percentage of individuals living in
6 poverty (11.3%). In contrast, Shoshone County has the
7 area's lowest median income and the state's highest
8 percentage of individuals living in poverty (17.5%).
9 Nine of the ten counties (Benewah, Bonner,
10 Boundary, Clearwater, Idaho, Kootenai, Lewis, Nez Perce and
11 Shoshone) exceed the state average of persons over 65 years
12 of age (11.7%). This statistic is significant because the
13 elderly tend to have special needs and are often the most
14 vulnerable members of society.
15 Seven counties (Benewah, Bonner, Boundary,
16 Clearwater, Idaho, Latah, Shoshone) have high percentages
17 (over 14.7%) of individuals living at or below 100% of
18 Federal Poverty Level Guidelines. This exceeds the state
19 average of 12.1%.
20 With the exception of Latah County, these
21 counties also have high unemployment rates (over 8.9%) .
22 High unemployment rates coupled with the high poverty rates
23 suggest that these counties have a large percentage of
24 individuals who are challenged with paying for life's basic
25
CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09
THAEN, C (Di) 4
STAFF
1 needs. These individuals face high energy burdens. 2
2 In summary, the ten counties that comprise the
3 area that Avista serves have the state's highest average
4 unemployment rate (9.2%) and the state's highest average
5 poverty rate (14.8%).
6 Q.Do the Federal Poverty Level Guidelines
7 reflect an accurate gauge of poverty in the United States
8 and Idaho?
9 A.Not necessarily. The 100% of poverty level is
10 regarded by social service organizations such as CAPAI
11 (Community Action Partnership Association of Idaho) as
12 underestimating what it costs to maintain a basic standard
13 of living. Realizing this, federal and state agencies
14 charged with the responsibility to protect human health and
15 welfare set household income eligibility limits for social
16 service programs at levels that exceed the Federal Poverty
17 Guideline's benchmark of 100% of poverty.
18 Avista' s service terri tory has the highest
19 poverty level in the state when compared to other regulated
20 utility service areas. However, since the Federal Poverty
21 Guideline is regarded as an underestimation, the actual
22 number of those who live in poverty in Avista's service
23 terri tory is even greater.
24
25
2 Energy Burden is the percentage of a household's income that is spent
on all home energy expenses, which includes all energy used for space
heating and cooling, lighting, and water heating.
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 5
STAFF
1 An example of the underestimation of those
2 living in poverty can be seen by comparing the Federal
3 Poverty Level Guideline's (FPL) estimation of Idaho
4 households living in poverty to the state's LIHEAP (Low
5 Income Home Energy Assistance Program) estimation of those
6 living in poverty and eligible for financial assistance.
7 Under the FPL 44,000 households in Idaho are at or below
8 100% of poverty. Under Idaho's LIHEAP Program calculations
9 (which are based upon 150% of poverty), 101,000 households
10 qualify for benefits. The difference between these two
11 estimates is 57,000 households statewide.
12 Q.What conclusion can be drawn from these
13 demographics?
14 Customers who are living in poverty and/or areA.
15 unemployed have limited or diminished financial resources
16 with which to pay utility bills. Given the recent economic
17 turmoil, Staff believes that the Census data, although
18 somewhat stale, provides a fairly good picture of Avista' s
19 customers today. In fact, there is reason to believe, as
20 discussed below, that customers may be worse off in the
21 future. Staff is concerned that a significant number of
22 Avista' s customers will have problems paying their electric
23 and natural gas bills, especially when faced with
24 increasing rates.
25 Q.What do you see as the greatest threat that
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 6
STAFF
1 could impact the ability of customers to pay their utility
2 bills?
3 A.As previously discussed, unemployment
4 continues to be a great concern. Current Idaho Department
5 of Labor data as of April 2009 shows a continued and
6 sustained upward trend in the state's unemployment rate,
7 which now stands at the highest level in twenty-one years
8 (7.0%). Exhibit No. 130 provides Department of Labor press
9 release excerpts (March and April 2009) pertaining to the
10 current trend in unemployment in both Idaho and the United
11 States.
12 An increase in the unemployment rate can lead
13 to an increase in the percentage of Avista customers who
14 fall below the Federal Poverty Level. As a result, more
15 strain will be placed upon agencies that provide financial
16 assistance for payment of utility bills. The number of
17 disconnections has the potential to increase as people
18 experience difficulty paying their bills. Even people who
19 were high wage earners can find themselves in a tight
20 financial situation following a layoff. Higher
21 unemployment, rising fuel costs and increasing food costs
22 are additional stresses that will have an impact on
23 people's finances.
24 Q.Do you see any other factors that might
25 inhibit a customer's ability to pay his/her utility bill?
CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09 THAEN, C (Di) 7
STAFF
1 A.The current housing crisis (record number of
2 foreclosures) has placed additional pressure on households.
3 According to RealtyTrac, Inc., the nation's
4 largest online foreclosure marketplace, idaho is now ranked
5 eighth out of the top ten states for having the highest
6 foreclosure rates in the country. One in every 147 housing
7 units received a foreclosure filing in the first quarter of
8 2009 (January - March 2009), up 15.56% from the previous
9 quarter (October - December 2008). In just one month, from
10 February 2009 to March 2009, the foreclosure rate increased
11 8.90% (1,921 new filings).3 Due to the steady rise in
12 unemployment, the pressure on homeowners to maintain
13 monthly mortgage payments will most likely increase
14 throughout the year.
15 Homeowners with ARMs (Adjustable Rate
16 Mortgages) that are unable to refinance their home due to
17 declining property values and/or job loss will be faced
18 with making a higher mortgage payment when their AR resets
19 in 2009. This could cause a severe hardship on individuals
20 who are already strapped with having to pay higher utility
21 costs. Low income households are not the only ones
22 impacted. This is an issue that impacts a diverse group of
23 wage earners.
24 In October 2008, a new federal program called
25 3 Regional foreclosure data specific to Avista's service area was not
available.
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THADEN, C (Di) 8
STAFF
1 "Hope for Homeowners" (H4H) was authorized by the Housing
2 and Economic Recovery Act of 2008. The program targets
3 homeowners who are at risk of loan default and foreclosure.
4 Lenders are allowed to voluntarily refinance delinquent
5 mortgages by "writing down" the loan amount to 90% of a
6 home's newly appraised value. The new loan is backed by
7 the Federal Housing Administration (FHA) using current
8 fixed mortgage rates that will reduce the monthly mortgage
9 payment.4
10 Q.Has the number of customers who have been
11 disconnected for non-payment increased or decreased?
12 A.The number of Idaho Avista residential
13 customers disconnected for non-payment has greatly
14 increased over the past four calendar years (2005-2008)
15 from 4,588 to 6,959. This represents a 51% increase in the
16 number of disconnections. Traditionally, Avista's service
17 territory suffers from higher unemployment and poverty
18 rates. As the economic downturn continues and more
19 customers struggle financially, it is apparent that a
20 greater need to provide help for those needing financial
21 assistance exists within the community. This also, presents
22 an opportunity for Avista to address the issue of
23 4As of March 2009, though $300 billion was allocated for the new
program, only one homeowner in the U.S. benefited. The major reason
for the program's lack of success is that lenders consider the program
too costly. Lenders prefer to either extend the term of the existing
loan up to 40 years or allow for interest rate reductions (temporary or
permanent). To date the program has been a failure. Source:
CNNoney. com, "Hope prevents i foreclosure", March 25, 2009.
24
25
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 9
STAFF
1 disconnects due to non-payment by offering its customers
2 addi tional payment options, which will be discussed later.
3 Q.When a residential customer is disconnected
4 for non-payment of their bill, does Avista require a
5 deposit to reestablish service?
6 A.Yes. For low income customers who have been
7 disconnected from service for non-payment, a deposit
8 requirement makes it more difficult for them to reestablish
9 service and further places them into debt. Staff believes
10 that the additional financial burden of a deposit
11 requirement causes a greater hardship for low income
12 customers and often presents a barrier to customers in
13 obtaining or retaining service. Allowing customers to make
14 installment payments on deposits over a period of time
15 longer than the current minimum of two months required by
16 the UCCR (Utility Customer Relation Rules) might prove
17 beneficial to the Company and affected customers. Taki~g
18 this approach may lessen the impact of an additional
19 financial burden placed upon customers.
20 Avista is currently working with Staff to
21 dèvelop a study regarding the impact and effectiveness of
22 deposit collection. Avista offered to conduct a study in
23 its comments filed with the Commission in Case No.
24 GNR-U-08-01, which addressed energy affordability issues.
25 Once completed, the study can be used to evaluate deposit
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 10
STAFF
1 policies.
2 Programs Offering Financial Assistance
3 Q.What resources are available to help customers
4 pay their energy bills?
5 A.LIHEAP (Low Income Home Energy Assistance
6 Program) is funded by the Federal government through a
7 grant to the State of Idaho. Unlike the situation in other
8 states, state government funding is not available in Idaho
9 to help customers pay energy bills at any time of year.
10 For the 2008/2009 heating season only, a one-
11 time increase in federal funding for LIHEAP occurred; 5
12 allowing for larger benefit amounts to be given to each
13 participant. In addition, eligibility guidelines changed
14 to allow for more households to participate in the LIHEAP
15 program. The level at which a household is eligible to
16 receive assistance changed from a maximum of 150% to 160%
17 of the Federal Poverty Level Guidelines. Because this was
18 a one-time funding increase added to the yearly grant,
19 Staff anticipates the total funding amount will probably
20 decrease for the next winter heating season, and the
21 previous eligibility requirement will be reinstated to 150%
22 of poverty level.
23
24 5 An increase in LIHEAP Funding for this past winter heating was
authorized on September 30, 2008, by HR 2638, The Consolidated
Security, Disaster Assistance, and Continuing Appropriations Act, 2009.
As a ~esult, funds available to state of Idaho this past winter heating
season increased from $9,410,895 to $17,439,570.
25
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THADEN, C (Di) 11
STAFF
1 For the 2008-2009 winter heating season,
2 $2,830,660 in LIHEAP funding was distributed to 6,850
3 Avista customers in Idaho to help pay home heating bills.
4 The average amount paid to each participant was $413. The
5 table below reflects the number of Avista customers in
6 Idaho who received LIHEAP benefits and the average dollar
7 amount allocated during the last three heating seasons.
8 Regular LIHEA Funding
9 Program Year Funding # of Participants Avg. Benefit
10 2006/2007 $1,499,729 5,201
2007/2008 $1,453,885 5,199
2008/2009 $2,830,660 6,850
$288
$280
$413
11
12
13 Energy Assistance funding provided by LIHEAP does not
14 sufficiently meet the energy needs of low income customers.
15 Therefore, Crisis Funding benefits are available to
16 customers whose circumstances qualify them for additional
17 financial assistance under the LIHEAP program. Money is
18 not always available for Crisis Funding. Even when funds
19 are available, the number of people who can be helped is
20 quite small. For the 2008-2009 winter heating season,
21 $76,014 in Crisis Funding benefits was distributed to 130
22 Avista customers in Idaho. The average amount paid to each
23 participating customer in 2007-2008 was $585. The table
24 below reflects the number of Avista customers in Idaho who
25 received LIHEAP Crisis Funding benefits and the average
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 12
STAFF
1 dollar amount allocated during the last three heating
2 seasons.
3
5 2006/2007
6 2007/2008
7 2008/2009
Crisis LIHEA Funding
Funding # of Participants Avg.Benefit
$70,196 211 $336
$78,747 177 $445
$76,014 130 $585
4 Program Year
8 Q.Are there other programs in place that can
9 help Idaho customers?
10 A.Yes. In Avista' s service terri tory, two CAP
11 Agencies (Community Action Partnership and Spokane
12 Neighborhood Action Programs) administer a program, Project
13 Share, which provides financial assistance. The program is
14 a fuel-blind fund, which means that monies are dispersed
15 towards payment of bills that are for any energy sources
16 (electric, natural gas, wood, coal, propane, kerosene and
17 oil). All money collected, with the exception of
18 administration costs, goes back to the community.
19 In the past three fiscal years (2006 - 2008) ,
20 Avista shareholders donated $200,425 to Project Share for
21 Idaho; Avista customers in Idaho donated $210,919. Of the
22 total amount collected ($411,344), $41,134 of both the
23 shareholder and customer contribution (10% of funds
24 collected) was paid to the two CAP agencies for
25 administering the program. The table below reflects total
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 13
STAFF
1 dollar amounts donated by Avista customers and its
5
shareholders in the past three fiscal years.
Fiscal Year Avista Customers Shareholders
2006 $73,355 $50,000
2007 $63,231 $100,425
2008 $74,333 $50,000
Q.In addition to cus tomer and shareholder
2
3
4
6
7
8 donations was any additional Project Share money provided
9 to assist with heating costs in each of the past three
10 fiscal years?
11 A.Yes, an additional $250,444 was available.
12 Therefore, during the past three fiscal years a total of
13 $662,118 was provided to Idaho households served by Avista.
14 Because Proj ect Share donations are pooled together from
15 both Idaho and Washington, Idaho receives an assistance
16 amount that is greater than the total amount that is
17 donated by Idaho Avista customers and shareholders.The
18 table below reflects the total dollar amounts paid to
19 assist Idaho households with their heating costs.
20 Fiscal Year Money Disbursed
21 2006 $182,104
22 2007 $305,700
23 2008 $174,314
24 Q. What efforts does Avista put forth to make the
25 community and its customers aware of Project Share?
CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09
THAEN, C (Di) 14
STAFF
1 A.Avista publicizes Project Share through its
2 website, newsletters, and monthly customer billings.
3 Avista is doing well marketing Proj ect Share and Staff
4 encourages the Company to continue promoting the program.
5 Programs, Payment Plans and Payment Arrangements
6 Q.What utility programs are in place to help
7 customers avoid being disconnected during the winter
8 months?
9 A.Besides LIHEAP and Proj ect Share, the Idaho
10 Moratorium Program and Winter Payment Plan also address
11 this issue.
12 Idaho's Moratorium Program allows residential
13 customers whose household includes children, elderly or the
14 infirm to be protected from disconnection during the months
15 of December through February if they declare that they are
16 unable to pay their utility bill in full. However,
17 customers are not absolved of paying their utility debt.
18 The Winter Payment Plan allows customers who
19 have declared eligibility for the moratorium an additional
20 two months of protection (November and March) if they agree
21 to accept and follow-through on monthly payments during the
22 winter protection period that are equal to half of the
23 monthly average of the previous 12 months' billings.
24 A brochure entitled "Helpful Information About
25 Your Avista Utilities Account," with information on both
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 15
STAFF
1 the Idaho Moratorium Program and Winter Payment Plan, is
2 sent to all residential customers annually. All customers
3 that receive a Final Disconnection Notice during the months
4 of November through February are made aware of the Idaho
5 Moratorium Program and the Winter Payment Plan through a
6 bill insert entitled "Winter Payment Plan, Moratorium
7 Information." For those customers who have declared
8 eligibility for the moratorium, a brochure on the Winter
9 Payment Plan is provided with the December, January and
10 February payment reminder notices that are sent out. The
11 intent of this brochure is to encourage these protected
12 customers to pay a portion of their energy bills during the
13 winter months. Both Customer Service Representatives and
14 Field Personnel receive training on the options available
15 to customers who are struggling to pay their energy bills.
16 Avista adequately educates its customers on both the Idaho
17 Moratorium Program and Winter Payment Plan.
18 Q.Has the number of customers who have declared
19 eligibility for the moratorium increased or decreased?
20 A.The number of Avista customers in Idaho who
21 declared eligibility for the moratorium during the
22 2008/2009 winter heating season totaled 2,188. This
23 represents a 17% decrease in comparison to the previous
24 winter heating season. The decrease in the number of those
25 requesting winter protection could be attributed to more
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 16
STAFF
1 people receiving financial assistance through the LIHEAP
2 program this past winter. As discussed earlier in my
3 testimony, more households received LIHEAP benefits, and
4 larger grant amounts were paid out to each LIHEAP
5 participant on average.
6 Therefore, Staff anticipates that the number
7 of individuals who declare eligibility for the moratorium
8 will increase next winter heating season. Exhibit No. 131
9 reflects the total number of moratorium participants in the
10 past three winter heating seasons.
11 Q.Has there been an effort by Avista to increase
12 the number of participants in the Winter Payment Plan?
13 A.Of the 2,188 participants who declared
14 eligibility for the moratorium in the 2008/2009 winter
15 heating season, 54.1% elected to be placed on the Winter
16 Payment Plan. This is significantly higher than the
17 previous winter heating season, when only 14.3 % of
18 moratorium participants had a Winter Payment Plan. The
19 increase could be attributed to Avista's educational
20 efforts in providing information on the payment plan and
21 attempting to encourage customers protected from
22 disconnection to pay at least a minimal amount toward their
23 heating bills. Exhibit No. 131 reflects the total number
24 of plan participants in the last three winter heating
25 seasons.
CASE NOS. AVU-E-09-1/AVU-G-09-1OS/29/09 THAEN, C (Di) 17
STAFF
1 Q.Have customers on the Winter Payment Plan been
2 able to successfully pay down their outstanding account
3 balances before the end of the winter protection period on
4 March 31?
5 A.Of the 1,184 participants who elected to be
6 placed on the Winter Payment Plan during the 2008/2009
7 winter heating season, 63% were not able to meet their
8 monthly payment. In the previous winter heating season, of
9 the 484 participants who elected to be placed on the Winter
10 Payment Plan, 80% were unable to meet their' monthly
11 payment.
12 While the decrease in the percentage of
13 defaul ts is encouraging, the percentage of defaults is
14 still high at 63%. Such high default percentages cause
15 concern about the effectiveness and success of the Winter
16 Payment Plan.
17 Q.Have the number of residential payment
18 arrangement agreements and defaulted payment arrangement
19 agreements made on accounts increased or decreased?
20 A.The number of Idaho Avista residential
21 customers has steadily increased over the past four
22 calendar years (2005-2008) from 128,130 to 136,890. This
23 represents a 6.8% increase. During this time period the
24 number of payment arrangement agreements increased by 17%
25 and the number of defaulted payment arrangements increased
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 18
STAFF
1 by 39.8%. A customer can have more than one payment
2 arrangement in a given month for an account and customers
3 can have more than one account. Because of this, a number
4 of payment arrangement agreements and payment arrangement
5 defaults do not correlate to the actual number of
6 customers. This table shows the number of customers,
8
7 payment arrangements and payment arrangement defaults.
9
10
11
12
13
Year #of customers Arrangements Defaults %Defaults
2005 128,130 63,003 28,600 45%
2006 130,396 66,700 30,600 46%
2007 133,508 67,881 31,318 46%
2008 136,890 73,768 39,994 47%
Q.What can be done to help reduce the number of
14 customers who default on their payment arrangement
16
15 agreements?
A.At this time, Staff is not sure why customers
17 are not meeting the terms of payment arrangements. It may
18 be that a more diligent effort by Avista to provide monthly
19 customer reminder calls would be beneficial, allowing the
20 Company to assess each customer's situation and reinforce
21 to each customer the importance of making the agreed upon
22 payment. However, it may be that customers are simply
23 agreeing to make payments in an amount and/or at a time
24 that is not feasible given their financial circumstances.
25 Whether customers are doing so because they feel they have
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 19
STAFF
1 no choice but to agree to terms suggested by the Company,
2 are using payment arrangements as a means to defer
3 disconnection of service due to a lack of ability to budget
4 for expenses, or some other reason, more study is required
5 to determine why so many arrangements result in default.
6 During the last four years the percentage of payment
7 arrangement defaults has remained relatively high, ranging
8 between 45% and 47%. Unless an effort' is put forth by the
9 Company to address the reason as to why so many payment
10 arrangements end in default, the number will remain high.
11 Q.What new payment options have been implemented
12 by Avista to assist customers who have fallen behind on
13 their monthly payments and are struggling to pay down their
14 arrearages?
15 A.In March 2009, Avista added three new payment
16 plan options (Budget Billing, Flexible Payment, and Bill
17 Plus), in addition to its existing payment plan offerings
18 outlined in Exhibit No. 132. A fourth plan (Pay Day) ,
19 though technically not a payment arrangement, was also
20 added that allows a customer to change the monthly billing
21 due date. The Company realized the need for additional
22 bill payment options that offer more flexibility in meeting
23 the needs of its customers. A brief summary of each plan
24 can be found in Exhibit No. 133.
25 At this time, Staff believes that Avista's
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 20
STAFF
1 offering of additional bill payment options will benefit
2 customers who are financially stressed, offering them a
3 better opportunity to payoff past due balances. Staff
4 also believes that these options could have a positive
5 impact in helping reduce the amount of payment arrangement
6 defaults. Staff recommends that Avista be directed to
7 confer with Staff to assess the effectiveness of the new
9
8 payment plans and identify ways to decrease defaults.
What new effort has Avista taken to educateQ.
10 its customers about the available programs intended to
11 assist with paying their energy bills?
12 A.In March 2009, Avista launched an advertising
13 campaign in both Washington and Idaho to inform and educate
14 its customers about the various assistance and bill payment
15 options that are available (Exhibit No. 134). Radio and
16 print ads direct customers to contact Avista so they can
17 either talk to a customer service representative or access
18 the Company's website. The media campaign ran from March
20
19 30, 2009 through May 22, 2009.
Has Avista implemented any programs in IdahoQ.
21 designed to assist senior citizens?
22 A.Yes, Avista now offers Senior Energy
23 Conservation Workshops. The program has been in place in
24 Washington and was recently implemented in Idaho in the
25 fall of 2008. Workshops are conducted at a variety of
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 21
STAFF
1 different locations such as senior citizen centers, senior
2 nutrition meal sites, and various other non-profit
3 organizations. The goal of the workshops is to provide
4 education on energy savings for seniors without reducing
5 at-home comfort and safety. All workshop participants
6 receive an "Every Little Bit" Energy Conservation Kit which
7 contains compact fluorescent light bulbs, home
8 weatherization supplies and energy saving tips. Avista
9 began this program when it came to the Company's attention
10 that seniors on fixed incomes tend to reduce their use of
11 heat in order to cut monthly heating expenditures so that
12 they are able to pay for medication and food.
13 Unfortunately, due to the late implementation of the
14 program in Idaho, a delay in materials not arriving for the
15 workshops and the time constraints of the facilitators no
16 workshops were conducted in Idaho in 2008.
17 Q.What is the status of the Energy Conservation
18 Education program that was approved by Order No. 30647 in
19 Avista's previous rate case (AVU-E-08-01)?
20 A.As part of the recent rate case settlement
21 Avista agreed to support an Energy Conservation Education
22 program in Idaho by providing $25,000 in annual funding
23 through its DSM tariff rider. Avista's 2009 contract with
24 Community Action Partnership includes this funding amount,
25 but the program has not yet been implemented. The
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 22
STAFF
1 Communi ty Action Partnership has recently hired a new
2 employee, an Energy Education Specialist, to oversee the
3 program that will begin later this year. The purpose of
4 the program is to provide conservation education to LIHEAP
5 participants.
6 Q.Does Avista provide personalized customer
7 service to those customers who have special needs?
8 A.Yes. The Company has a Case Management
9 Program called CARES (Customer Assistance Referral and
10 Evaluation Services). The CARES staff is comprised of four
-
11 full-time specialized customer service representatives who
12 assist customers with special needs (elderly or disabled)
13 and/or hardships to gain access to both utility and non-
14 utility resources. The assistance provided includes
15 special payment arrangements, a personalized assessment of
16 energy usage, advice on energy saving practices, utilizing
17 energy efficiency programs, home weatherization, and
18 referrals to other community agencies. The four CAES
19 representatives handle about 4,000 customers living within
20 the Company's service territory (Oregon, Washington and
21 Idaho). CARES benefits both the customer and the Company
22 by assisting the special needs person, which allows them to
23 remain as a customer and also lowers the number of
24 disconnects experienced by the Company that otherwise might
25 have occurred.
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THADEN, C (Di) 23
STAFF
1 Low Income Weatherization and Energy Efficiency
2 Q.What other Avista programs are available to
3 assist low income customers?
4 A.Energy efficiency programs can make bills more
5 affordable by decreasing usage, thereby lowering energy
6 costs. The Low Income Weatherization Program offers
7 financial assistance to qualifying low income customers
8 with both natural gas and electrically-heated homes for
9 weatherization of their homes. A household whose income is
10 150% of poverty or less qualifies to receive weatherization
11 services; 160% was allowed this past winter heating season
12 due to an increase in federal funding. This program is
13 administered by the Community Action partnership (CAP)
14 located within Avista's Idaho service territory. The total
15 number of dwellings weatherized in Idaho in 2008 was 101 at
16 a total cost of $351,000. This amount includes CAP
17 administration costs but does not include Avista's
18 administrative costs. In Case No. AVU-E-08-01 the
19 Commission approved annual funding for low income
20 weatherization of $465,000. Funding for the low income
21 weatherization program comes from the Company's existing
22 DSM tariff riders.
23 Avista offers its Idaho customers additional
24 energy efficiency programs that are available to households
25 of all income levels. Such programs include: 1) Senior
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 24
STAFF
1 Energy Conservation Workshops; 2) Energy Conservation
2 Education Programs for Children; 3) High Efficiency
3 Equipment Incentives; 4) CFL Lighting; 5 ) Refrigerator
4 Recycling Program; 6) Conversion from Electric Straight
5 Resistance; 7) Energy Star Appliances; 8) New Construction
6 Energy Star Homes Program; 9) Multi-Family Energy
7 Efficiency Program; 10) Rooftop Dampers; and 11) Home
8 Energy Analyzer.
9 More detailed summaries of the programs can be
10 found in Exhibit No. 135.
11 Q.Does Avista adequately address the needs of
12 its customers through its various programs?
13 A.Although there is always more that can be
14 done, Avista' s programs do help customers in a variety of
15 different ways.
16 Q.What efforts has Avista taken to address
18
17 energy affordability issues?
A.Avista actively participated in the energy
19 affordability workshops that took place in October 2008 in
20 Case No. GNR-U-08-01. Workshop participants explored ways
21 to address energy affordability and the inability of
22 customers to pay energy bills.
23 Avista also spearheaded efforts to enact
24 legislation during the 2009 Legislative Session that would
25 have allowed utilities to propose bill payment assistance
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09 THAEN, C (Di) 25
STAFF
1 programs for low-income customers. Currently, Avista funds
2 a bill payment program called LIRAP (Low Income Rate
3 Assistance Program) in both Oregon and Washington. The
4 program assists low income customers with paying their
5 energy bills and is administered in the same manner as
6 LIHEAP (Low Income Heating Assistance Program) .
7 Q.Will an increase in Avista' s rates affect
8 customers' ability to pay their bills?
9 Yes. As I have pointed out earlier in myA.
10 testimony, there are many factors affecting customers'
11 abili ty to pay, and a rate increase will add to the
12 financial difficulties faced by customers. The Company
13 will need to continue to be more flexible in making payment
14 arrangements. It will need to work with the customers to
15 ensure that payments can be made based upon schedules that
16 fit the customers' circumstances and needs. By
17 implementing three new payment arrangement plans, the
18 Company has shown a willingness to do so. Staff recommends
19 that the Company be encouraged to look for new and creative
20 ways to increase energy efficiency and provide assistance
21 to customers, particularly those customers who are
22 economically-disadvantaged.
23
24
25
Does this conclude your testimony?Q.
A.Yes, it does.
CASE NOS. AVU-E-09-1/AVU-G-09-1
OS/29/09
THAEN, C (Di) 26
STAFF
DE
M
O
G
R
A
P
H
I
C
S

-

A
V
I
S
T
A

S
E
R
V
I
C
E

T
E
R
R
I
T
O
R
Y
No
n
-
E
n
g
l
i
s
h
Se
r
v
i
c
e

T
y
p
e
Po
p
u
l
a
t
i
o
n
Me
d
i
a
n
Av
e
r
a
g
e
Pe
r
c
e
n
t
a
g
e
Pe
r
s
o
n
s

u
n
d
e
r
Pe
r
s
o
n
s

o
v
e
r
Sp
o
k
e
n

a
t
E=

E
l
e
c
t
r
i
c
Po
p
u
l
a
t
i
o
n
Ch
a
n
g
e

0
0
-
0
6
In
c
o
m
e
In
c
o
m
e
be
l
o
w

P
o
v
e
r
t
y
Un
e
m
p
l
o
y
e
d
18

y
r
s
65
+

y
r
s
Ho
m
e
G=
G
a
s
(a
)
(a
)
(c
)
(d
)
(c
)
(b
)
(e
)
(e
)
(f
)
Co
u
n
t
y

&

C
o
u
n
t
y

S
e
a
t
-
E
9,
3
5
2
2.
0
%
$3
8
,
4
0
2
$2
5
,
9
1
1
15
.
2
%
15
.
4
%
24
.
1
%
16
.
5
%
3.
4
%
St
.

M
a
r
i
e
s
-
E/
G
41
,
1
6
8
11
.
8
%
$4
2
,
4
2
0
$2
7
,
7
6
7
14
.
7
%
8.
9
%
21
.
6
%
13
.
9
%
3.
4
%
Sa
n
d
p
o
i
n
t
-
G
10
,
9
6
2
11
.
1
%
$3
7
,
6
5
3
$2
0
,
2
4
3
15
.
6
%
10
.
5
%
25
.
0
%
14
.
2
%
6.
0
%
Bo
n
n
e
r
s

F
e
r
r
y
-
E
8,
1
7
6
-8
.
4
%
$3
8
,
7
8
5
$2
7
,
4
0
5
15
.
0
%
13
.
7
%
18
.
0
%
20
:
5
%
4.
0
%
Or
o
f
i
n
o-
E
15
,
4
4
8
-0
.
4
%
$3
6
,
9
5
2
$2
3
,
7
5
3
15
.
7
%
9.
2
%
20
.
2
%
19
.
3
%
3.
4
%
Gr
a
n
g
e
v
i
l
l
e
-
E/
G
13
7
,
4
7
5
26
.
5
%
$4
6
,
7
2
4
$2
9
,
1
3
4
11
.
3
%
7.
3
%
24
.
8
%
13
.
8
%
3.
7
%
Co
e
u
r
'
d

A
l
e
n
e
-
E/
G
35
,
9
0
6
2.
8
%
$4
2
,
0
3
1
$2
6
,
9
8
0
17
.
0
%
5.
5
%
19
.
3
%
9.
7
%
6.
8
%
Mo
s
c
o
w
-
E
3,
5
9
4
-4
.
1
%
$3
6
,
0
8
9
$2
7
,
5
7
6
13
.
0
%
4.
5
%
22
.
5
%
22
.
2
%
3.
1
%
Ne
z
P
e
r
c
e
-
E/
G
38
,
9
7
5
4.
2
%
$4
0
,
7
2
6
$2
9
,
4
0
5
12
.
7
%
4.
9
%
21
.
8
%
17
.
8
%
3.
9
%
Le
w
i
s
t
o
n
-
E/
G
12
,
1
9
3
-6
.
2
%
$3
5
,
0
9
5
$2
9
,
9
4
6
17
.
5
%
11
.
9
%
20
.
5
%
18
.
9
%
3.
7
%
Wa
l
l
a
c
e
Ar
e
a

T
o
t
a
l
31
3
,
2
4
9
0(
1

(
1
t
r
VI

.

I
I

~
--
.
.

V
l
:
:
~:
:

(
1

s
-
Ô
I
I

z
:
:
:
'0
0
.

0
z
g
.
.
~

~
?
¡q
.
c

â

Ñ
'"
C

i

-
.
.-

,

t
r
a
i
I
'
0
01
'0

0
i
'
0
-
i
---
u.
s
.
30
4
,
0
5
9
,
7
2
4
8.
0
%
13
.
0
%
8.
9
%
24
.
5
%
12
.
6
%
17
.
9
%
So
u
r
c
e

K
e
y
:
(a
)

-

2
0
0
8

U
.
S
.

C
e
n
s
u
s

B
u
r
e
a
u

(
E
s
t
i
m
a
t
e
)
(b
)

-

2
0
0
9

A
p
r
i
l

Id
a
h
o

D
e
p
t
m
e
n
t

o
f
L
a
b
o
r
(c
)

-

2
0
0
7

U
.
S
.

C
e
n
s
u
s

B
u
r
e
a
u
(d
)

-

2
0
0
7

F
e
d
e
r
a
l

S
t
a
t
i
s
t
i
c
s
(e
)

-

2
0
0
7

U
.
S
.

C
e
n
s
u
s

B
u
r
e
a
u
(f
)

-

2
0
0
0

U
.
S
.

C
e
n
s
u
s

B
u
r
e
a
u
ht
t
p
:
U
g
u
i
c
k
f
a
c
t
s
.
c
e
n
s
u
s
.
g
o
v
/
g
f
d
/
s
t
a
t
e
s
/
1
6
0
0
0
.
h
t
m
l
ht
t
p
:
U
l
m
i
.
i
d
a
h
o
.
g
o
v
ht
t
p
:
U
g
u
i
c
k
f
a
c
t
s
.
c
e
n
s
u
s
.
g
o
v
/
g
f
d
/
s
t
a
t
e
s
/
1
6
0
0
0
.
h
t
m
l
ht
t
p
:
U
w
w
w
.
f
e
d
s
t
a
t
s
.
g
o
v
/
g
f
/
s
t
a
t
e
s
/
1
6
/
1
6
0
0
1
.
h
t
m
l
ht
t
p
:
/
/
g
u
i
c
k
f
a
c
t
s
.
c
e
n
s
u
s
.
g
o
v
/
g
f
d
/
s
t
a
t
e
s
/
1
6
0
0
0
.

h
t
m

i
ht
t
p
:
U
g
u
i
c
k
f
a
c
t
s
.
c
e
n
s
u
s
.
g
o
v
/
g
f
d
/
s
t
a
t
e
s
/
1
6
0
0
0
.
h
t
m
l
De
f
i
n
i
t
i
o
n
s
:
Me
d
i
a
n

I
n
c
o
m
e

=

t
h
e

m
i
d
d
l
e

p
o
i
n
t

o
f

a
l
l

w
a
g
e
s

a
b
o
v
e

a
n
d

b
e
l
o
w
Av
e
r
a
g
e

I
n
c
o
m
e

=

t
o
t
a
l

o
f

a
l
l

w
a
g
e
s

d
i
v
i
d
e
d

b
y

n
u
m
b
e
r

o
f

w
a
g
e

e
a
r
n
e
r
s
Po
v
e
r
t
y

L
e
v
e
l

=

m
i
n
i
m
a
l

le
v
e
l

o
f
i
n
c
o
m
e

f
o
r

a
d
e
q
u
a
t
e

s
t
a
n
d
a
r
d

o
f

l
i
v
i
n
g
Un
e
m
p
l
o
y
e
d

=

#

o
f

i
n
d
i
v
i
d
u
a
l
s

r
e
g
i
s
t
e
r
e
d

w
i

D
e
p
t
.

L
a
b
o
r

s
e
e
k
i
n
g

e
m
p
l
o
y
m
e
n
t
20
0
9

F
E
D
E
R
A
L

P
O
V
E
R
T
Y

L
E
V
E
L

G
U
I
D
E
L
I
N
E
S
An
n
u
a
l

In
c
o
m
e

G
u
i
d
e
l
i
n
e
s

(
$
)
Fa
m
i
l
y
10
0
%
Hr
.
12
5
%
Hr
.
13
5
%
Hr
.
15
0
%
Hr
.
17
5
%
Hr
.
18
5
%
Hr
.
Si
z
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
1
10
,
8
3
0
5.
2
1
13
,
5
3
8
6.
5
1
14
,
6
2
1
7.
0
3
16
,
2
4
5
7.
8
1
18
,
9
5
3
9.
1
1
20
,
0
3
6
9.
6
3
2
14
,
5
7
0
7.
0
0
18
,
2
1
3
8.
7
6
19
,
6
7
0
9.
4
6
21
,
8
5
5
10
.
5
1
25
,
4
9
8
12
.
2
6
26
,
9
5
5
12
.
9
6
3
18
,
3
1
0
8.
8
0
22
,
8
8
8
11
.
0
0
24
,
7
1
9
11
.
8
8
27
,
4
6
5
13
.
2
0
32
,
0
4
3
15
.
4
1
33
,
8
7
4
16
.
2
9
4
22
,
0
5
0
10
.
6
0
27
,
5
6
3
13
.
2
5
29
,
7
6
8
14
.
3
1
33
,
0
7
5
15
.
9
0
38
,
5
8
8
18
.
5
5
40
,
7
9
3
19
.
6
1
5
25
,
7
9
0
12
.
4
0
32
,
2
3
8
15
.
5
0
34
,
8
1
7
16
.
7
4
-
38
,
6
8
5
18
.
6
0
45
,
1
3
3
21
.
7
0
47
,
7
1
2
22
.
9
4
6
29
,
5
3
0
14
.
2
0
36
,
9
1
3
17
.
7
5
39
,
8
6
6
19
.
1
7
44
,
2
9
5
21
.
3
0
51
,
6
7
8
24
.
8
4
54
,
6
3
1
26
.
2
6
7
33
,
2
7
0
16
.
0
0
41
,
5
8
8
19
.
9
9
44
,
9
1
5
21
.
5
9
49
,
9
0
5
23
.
9
9
58
,
2
2
3
27
.
9
9
61
,
5
5
0
29
.
5
9
8
37
,
0
1
0
17
.
7
9
46
,
2
6
3
22
.
2
4
49
,
9
6
4
24
.
0
2
55
,
5
1
5
26
.
6
9
64
,
7
6
8
31
.
1
4
68
,
4
6
9
32
.
9
2
Fo
r

F
a
m
i
l
y

u
n
i
t
s

o
f

m
o
r
e

t
h
a
n

8

m
e
m
b
e
r
s
,

a
d
d

$
3
,
7
4
0

p
e
r

p
e
r
s
o
n
Mi
n
i
m
u
m

W
a
g
e

-

I
d
a
h
o

&

F
e
d
e
r
a
l

=

$
6
.
5
5

p
e
r

h
o
u
r
Mo
n
t
h
l
y

I
n
c
o
m
e

G
u
i
d
e
l
i
n
e
s

(
$
)
Fa
m
i
l
y
10
0
%
Hr
.
12
5
%
Hr
.
13
5
%
Hr
.
15
0
%
Hr
.
17
5
%
Hr
.
18
5
%
Hr
.
Si
z
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
Po
v
e
r
t
y
Wa
g
e
1
90
3
5.
2
1
1,
1
2
8
6.
5
1
1,
2
1
8
7.
0
3
1,
3
5
4
7.
8
1
1,
5
7
9
9.
1
1
1,
6
7
0
9.
6
3
ê0

~
~
2
1,
2
1
4
7.
0
0
1,
5
1
8
8.
7
6
1,
6
3
9
9.
4
6
1,
8
2
1
10
.
5
1
2,
1
2
5
12
.
2
6
2,
2
4
6
12
.
9
6
~~

(
"

~
1,
5
2
6
8.
8
0
1,
9
0
7
11
.
0
0
2,
0
6
0
11
.
8
8
2,
2
8
9
13
.
2
0
2,
6
7
0
15
.
4
1
2,
8
2
3
16
.
2
9
Õ
~

Z

-
.
3
0.

0
-
'O
g

.

Z
4
1,
8
3
8
10
.
6
0
2,
2
9
7
13
.
2
5
2,
4
8
1
14
.
3
1
2,
7
5
6
15
.
9
0
3,
2
1
6
18
.
5
5
3,
3
9
9
19
.
6
1
~
~

~
?
~
2
2

Ñ

5
2,
1
4
9
12
.
4
0
2,
6
8
6
15
.
5
0
2,
9
0
1
16
.
7
4
3,
2
2
4
18
.
6
0
3,
7
6
1
21
.
7
0
3,
9
7
6
22
.
9
4
t¡

i

0
0
i
t
r

6
2,
4
6
1
14
.
2
0
3,
0
7
6
17
.
7
5
3,
3
2
2
19
.
1
7
3,
6
9
1
21
.
3
0
4,
3
0
6
24
.
8
5
4,
5
5
3
26
.
2
7
Cì

i
I
'
0
~
b

7
2,
7
7
3
16
.
0
0
3,
4
6
6
19
.
9
9
3,
7
4
3
21
.
5
9
4,
1
5
9
23
.
9
9
4,
8
5
2
27
.
9
9
5,
1
2
9
29
.
5
9
i
'
0
-
i
8
3,
0
8
4
17
.
7
9
3,
8
5
5
22
.
2
4
4,
1
6
4
24
.
0
2
4,
6
2
6
26
.
6
9
5,
3
9
7
31
.
1
4
5,
7
0
6
32
.
9
2
---
So
u
r
c
e
:

U
n
i
t
e
d

S
t
a
t
e
s

D
e
p
a
r
t
m
e
n
t

o
f

H
e
a
l
t
h

&

H
u
m
a
n

S
e
r
v
i
c
e
s

-

h
t
t
p
:
/
/
a
s
p
e
.
h
h
s
.
g
o
v
Co
v
e
r
s

a
l
l

S
t
a
t
e
s

a
n
d

D
C

e
x
c
e
p
t

A
l
a
s
k
a

a
n
d

H
a
w
a
i
i
.
In
c
o
m
e

G
u
i
d
e
l
i
n
e
s

a
s

P
u
b
l
i
s
h
e
d

i
n

t
h
e

F
e
d
e
r
a
l

R
e
g
i
s
t
e
r

o
n

J
a
n
u
a
r
y

2
3
,

2
0
0
9
.
1:
\
C
o
n
s
u
m
e
r
s
\
A
f
f
o
r
d
i
b
i
l
i
t
y

W
o
r
k
s
h
o
p

P
r
o
j
e
c
t
\
E
x
h
i
b
i
t
s
\
P
o
v
e
r
t
y

L
e
v
e
l

C
h
a
r
t

2
0
0
9
.
x
l
s
A vista Servce Area
(10 Counties)
Counties Served (.11.): Benewah, Bonner, Boundary, Clearwater, Idaho, Kootenai,Latah, Lewis, Nez Perce, Shoshone Exhibit No. 129
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09
March 2009 Idaho and U.S. Unemployment Data
For the first time in21 years the state's seasonably adjusted unemployment rate
rose above 7% and now stands at 7.1 %, which is 3 % higher than it was a year ago.
Additionally, a net job loss between Februar and March had not occured in Idaho in
over sixty-five years. This decline can be attbuted to the ongoing slump in the
constrction sector where jobs normally increase as the weather improves and new
projects are stared. The number of jobs lost in March was the second largest montWy
loss on record. March was also the twelft consecutive month that the total number of
non- far jobs was less than the previous year's statistic. For the first time since the
1980's economic down tur, the workforce in Idaho was much smaller than it was the
year prior. Over the last year, Idaho lost over 33,000 jobs and hit a record high of 53,000
unemployed.
Durng the last twelve months, job loss throughout the state impacted every
sector: transportation and warehousing (9,400), professional and business (8,600),
constrction (8,300), manufacturing (6,500) leisure and hospitality (2,600).
Though Idaho's unemployment rate is lower than the national average
unemployment rate (8.5%), March marked the nineteenth consecutive month that the
state's unemployment rate rose. In looking at Idaho as a whole, all forty-four counties
experienced higher unemployment rates when compared to March 2008 rates. Six
counties reported double-digit unemployment rates compared to three counties from one
year ago. Additionally, twelve months prior, twenty-thee counties had unemployment
rates below 4%, now only two counties have such low unemployment rates.
Exhibit No. 130
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 1 of 4
In March, the national unemployment rate increased from 8.1 % to 8.5% and the
number of unemployed persons increased from 694,000 to 13.2 milion. In the past
twelve months, the national unemployment rate rose by 3.4% and the number of workers
unemployed increased by 5.3 milion. Half of this increase, for both the unemployment
rate as well as the number of those unemployed, occured durng the past four months.
The reason for including the national unemployment rate is to not only show the
magnitude of what has transpired nationwide, but also to show a correlation between
Idaho with the rest of the U.S.
Sources:1) Idaho Deparent of Labor website (ww. labor.idaho.gov)
2) Bureau of Labor Statistics
Exhibit No. 130
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 2 of 4
April 2009 Idaho and U.S. Unemployment Data
In April, the seasonably adjusted jobless rate was unchanged from the prior
month's revised March figues (7.0%). According to the Idaho Deparent of Labor,
Idaho's job market appears to be stabilizing. For the first time in twenty months the
unemployment rate has not increased.
Since July 2008, April marked the fist month-to-month increase in employment.
Approximately 1,800 constrction jobs were added which is tyical of what occurs
between March and ApriL. (As is tyical of what occurs between March and April,
approximately 1,800 constrction jobs were added last month.) The manufactug
sector continued to experence job loss. Nearly 300 jobs, predominantly in the high-
technology sector, were eliminated.
The number of those jobless in April 2009 stil exceeds the number of those
jobless in April 2008. When comparng April 2008 to April 2009, all 44 counties in
Idaho saw the jobless rate increase. But, over half of the counties saw an increase in
employment in the month of ApriL. Six counties now boast an unemployment rate below
- 4% compared to only one county a month ago. For the first time in a decade a major
Idaho city posted a double digit unemployment rate. Both Nampa and Caldwell have
unemployment rates exceeding 10%. The Boise metro area, which accounts for two-
thirds of the state's employment, has an 8.4% unemployment rate.
In April, the national unemployment rate increased from 8.5% to 8.9% and the
number of unemployed persons increased from 563,000 to 13.7 milion. During the past
twelve months, the national unemployment rate rose by 3.9% and the number of worker
Exhibit No. 130
Case No. A VU-E-9-09-11
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 3 of 4
unemployed increased by 6.0 milion. The unemployment rate is now at the highest level
since September 1983.
Sources:1) Idaho Deparent of Labor website (ww. labor.idaho.gov)
2) Bureau of Labor Statistics
Exhibit No. 130
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 4 of 4
Wi
n
t
e
r

H
e
a
t
i
n
g

S
e
a
s
o
n
20
0
6
/
2
0
0
7
20
0
7
/
2
0
0
8
20
0
8
/
2
0
0
9
Id
a
h
o

M
o
r
a
t
o
r
i
u
m
l

P
a
y
m
e
n
t

P
l
a
n

P
a
r
t
i
c
i
p
a
n
t
s

&

D
e
f
a
u
l
t
s
Mo
r
i
t
o
r
u
i
m

P
a
r
i
c
i
p
a
n
t
s
2,
6
1
4
2,
6
3
5
2,
1
8
8
Pa
y
m
e
n
t

P
l
a
n

P
a
r
t
i
c
i
p
a
n
t
s
Pa
y
m
e
n
t

P
l
a
n

D
e
f
a
u
l
t
s
(
l
)

%

of

De
f
a
u
l
t
s
39
9
48
4
11
8
4
36
0
74
6
74
%
63
%
(1
)

_

O
n
l
y

t
w
o

y
e
a
r
s

a
r
e

r
e
f
l
e
c
t
e
d

a
s

A

v
i
s
t
a

h
a
d

n
o
t

p
r
e
v
i
o
u
s
l
y

t
r
a
c
k
e
d

t
h
i
s

s
t
a
t
i
s
t
i
c

a
n
d

t
h
e

d
a
t
a

t
h
a
t

i
s

a
v
a
i
l
a
b
l
e

i
s

i
n
c
o
m
p
l
e
t
e

d
u
e
to

d
a
t
a

l
o
s
s
.
o
(
J

(
J

t
!
Vl

.

~

~
--

;
ì

"
'
:
:
tv

(
l

_
.
'0

c
r
Õ
~

z
:
:
'
'O
g
.

?
z
F
~

~
?
~~
â
w
~c

i
.
.
""

i

t
!
ci

I
I
'
0
01
'0
0
i
'
0
..

i
..--
New AVIsta Payment Plans!
The Budget Bilg Plan works in same maner as Comfort Level Bilings
where the monthy payment is the average of 12 monthy bilings based on historical
charges or an estimate of future charges. To qualify for Comfort Level Biling, a
customer must not have a past due balance (no arears), in contrast, under the Budget
Biling Plan, a customer is allowed to have up to a two-month balance. The past due
balance is divided by 12 and added to the preset monthly Comfort Biling amount. The
concept of ths plan is to help the customer with being able to budget for their utility bils
thoughout the year by leveling out seasonal highs and lows in their monthy utility bils.
The Flexible Payment Plan provides customers needing first-time assistance
with the option of makg an immediate good faith payment on their past due balance and
then allowing the remaining balance to be paid over the course of the next few months
(up to six months max) in addition to their current monthly biling. Customer Serice
Representatives work with the customer, depending on their circumstance, to set up an
arangement that works best for the customer.
The Bil Plus Plan is a short-term arangement (up to six months) intended to
help customers who have previously entered into a payment arangement time to catch up
with their past due bil by the end of the sumer. A good faith payment is tyically due
immediately and must be at least one sixth of the past due balance. The remaining
balance is paid in addition to their curent monthy biling. Customer Servce
Representatives work with the customer; depending on his or her circumstance, to set up
an arangement that works best for the customer.
i Source of information obtained bye-mail and phone conversations with Avista employee, Linda Gerva.~
Exhibit No. 132
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 1 of2
#
--
The Pay Day Plan, based on Avista's biling schedule, allows customers to
choose an alterative payment due date. A new payment due date can be set prior to the
customer's next read date. As an example, this plan allows a customer with a payment
due date on the 5th of the month to change it to the 10th of the month. The goal of the
program is to allow customers to choose a payment due date that better meets their needs.
Exhibit No. 132
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 2 of2
Existig A vista Payment Plan Options
1
Comfort Level Bilg assists customers with being able'to budget for their utility
bils thoughout the year by leveling out seasonal highs and lows in their monthy utility
bils. To qualify for this plan a customer must not have a past due balance (no arear).
The monthly payment is the average of 12 monthly bilings based on historical charges or
an estimate of futue charges. The payment amount is reviewed at least once a year
against actul usage and an adjustment in the monthly payment is made either up or
down.
Levelied Pay is long-ter payment plan that allows customers to pay their past
due balance over a 12 month period. The payment is 1/12th of the past due balance in
addition to their curent monthly biling which is based on the Comfort Level Biliiig
payment plan. Customer Service Representatives work with the customer, depending on
his or her circumstance, to set up an arangement that works best for the customer.
Short Term Payment Arrangement is.an arangement that allows a customer
to make a payment( s) on the past due balance prior to the next bils due date to avoid
disconnection. Customer Serce Representatives work with the customer, depending on
his or her circumstance, to set up an arangement that works best for the customer.
Current Bil Plus is a short-ter arangement (up to three months) intended to
help customers who have previously entered into a payment arangement time to catch up
with their past due bil. A good faith payment is tyically due immediately and must be
at least one-third of the past due balance. The remaing balance is paid in addition to
i Source of information obtained bye-mail and phone conversations with Avista employee, Linda Gervais
Amanda Rheinardt and Janet Hadley. Exhibit No. 133
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 1 of 2
their current monthy biling. Customer Serice Representatives work with the customer,
depending on his or her circumstace, to set up an arangement that works best for the
customer.
Exhibit No. 133
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 2 of 2
a5-
co-*-
co
E
(;r-
Exhibit No. 134
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Thaden, Staff
OS/29/09
Other Avista Energy Effciency Programs)
Avista offer additional residential.energy effciency programs such as: 1) Senior Energy
Conservation Workshops; 2) Energy Conservation Education Programs for Children; 3)
High Effciency Equipment Incentives; 4) CFL Lighting; 5) Refrgerator Recycling
Program; 6) Conversion from Electrc Straight Resistance; 7) Energy Star Appliances; 8)
New Constrction Energy Star Homes Program; 9) Multi-Famly Energy Efficiency
Program; 10) Rooftop Dampers; and, 11) Home Energy Analyzer.
The Senior Energy Conservation Workshops are par of the Senior Outreach Program that
helps to identify senior citizens who need assistace with paying their energy bils. The
workshops provide education on energy savigs for seniors while allowing for comfort
and safety with home energy use. All workshop participants receive an "Every Little Bit"
Energy Conseration Kit.
The Energy Conservation Education for Children Program is designed to educate low-
income elementar age children and familes with the goal of changig lifestyle habits of
using energy effciently. Wattson, the Energy Watchdog, is featued with the goal of
targeting children ages 4 to 8 with emphasis on reaching low-income children and thei
familes.
The High Effciency Equipment Incentives Program offers rebates to customers who
purchase energy efficiency equipment for their homes. Rebates ranging from $100 to
$1500 are offered for items such as high effciency natual gas fuaces/boilers, heat
pumps, air conditioning units, varable motors for heating systems, and electrc water
heaters.
The CFL Lighting Program provides customers with coupons for the purchase of
compact fluorescent bulbs (CFL) and also provides a list ofCFL recycling locations.
The Refrigerator Recycling Program is provided to Idaho residents who own a working
refrgerator or freezer that was manufactued in, or prior to, 1995. Though a local
parer, the unts are removed and recycled to prevent fuher use. The customer is then
given $30 for allowing removal of the unts. Additionally, rebates of$25.00 are offered
toward the purchase of a new energy effcient refrgerator and $100 toward the purchase
of a new energy efficient freezer.
i Source of information obtained from Avista's website and communication with Avista representatives.
Exhibit No. 135
Case No. A VU-E-9-09-1/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Page 1 of2
The Conversion from Electric Straight Resistance Program offers three customer
options: 1) a $1,000 rebate is provided to customers who replace electrc as their priar
heating source with a central natural gas heating system. The rebate can be claimed in
conjunction with the high-efficient natual gas fuace incentive. Additionally, a $500
incentive is available to replace electrc heat with a natual gas wall heater; 2) a $1,000
rebate is provided to customers who replace electrc as their priar heating source with
a heat pump. The rebate canot be combined with the electrc to natual gas heat
incentive. A $500 rebate is available to replace electrc heat with a natural gas wall
heater; and, 3) a $250 rebate is provided to customers who replace an electrc water
heater with a natual gas water heater. The rebate may be claimed in conjunction with
the high-effcient natural gas water heater incentive.
The Energy Star Appliances Program provides rebates ranging from $25 to $100 for the
purchase of an Energy Star appliances (refrgerator, freezer, dishwasher, or clothes
washer). The rebates only apply to customers who reside in single and multi-family
residences, including manufactued and modular homes.
The New Construction Energy Star Homes Program is a residential constrction program
providing incentives to builders, suppliers, and subcontractors who build energy efficient
homes. Energy Star homes are 30% more effcient that those homes that are built only to
Idaho's energy code. A $900 rebate is available to builders for new constrction homes
that use A vista electrc or A vista electrc and natual gas that meet the Energy Sta
Homes critera and are verified as an Energy Star Home. A $650 rebate is available for
homes that have A vista gas but not A vista electrc.
The Multi-Family Energy Effciency Program is a brand new program that is designed to
increase energy efficiencies and reduce water/sewer costs for proper owners of multi-
family dwellings while increasing tenant efficiencies and offerng saving opportnities
for those who live in multi-family properties. A third-pary company (DCONS, LLC)
administers the program. The energy effciency measures include water heat pipe
installation, floor and ceiling insulation for under insulated buildings, the installation of
high quality shower head and aerators and the installation high quality compact
fluorescent bulbs. The program is free for both proper owner and tenant.
The Rooftop Dampers Program provides customers who heat priarly with electrc or
natual gas but also have a wood burnng fireplace with the opportty to receive up to
$100 toward the installation of a rooftop damper to prevent energy loss though the
chimney.
The Home Energy Analyzer allows customers the ability to access their energy effciency
needs by using an interactive Home Energy Analyzer that is located on Avista's websit~.__ _
Exhibit No. 135
Case No. A VU-E-9-09-l/
AVU-G-09-1
C. Thaden, Staff
OS/29/09 Piige 2 of 2
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF MAY 2009,
SERVED THE FOREGOING DIRECT TESTIMONY OF CURTIS THADEN, IN CASE
NOS. A VU-E-09-1 & A VU-G-09-1, BY ELECTRONIC MAIL TO THE FOLLOWING:
DAVID J. MEYER
VICE PRESIDENT AND CHIEF COUNSEL
AVISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220
E-MAIL: david.meyer(iavistacorp.com
DEAN J MILLER
McDEVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
E-MAIL: joe(imcdevitt-miler.com
CONLEY E WARD
MICHAEL C CREAMER
GIVENS PURSLEY LLP
PO BOX 2720
BOISE ID 83701-2720
E-MAIL: cew(igivenspursley.com
mcc(igivenspursley.com
BETSY BRIDGE
ID CONSERVATION LEAGUE
710 N SIXTH STREET
POBOX 844
BOISE ID 83701
E-MAIL: bbridge(iwildidaho.org
CARRE TRACY
1265 S MAIN ST, #305
SEATTLE WA 98144
E-MAIL: carrie(inwfco.org
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
A VISTA UTILITIES
PO BOX 3727
SPOKANE WA 99220
E-MAIL: kelly.norwood(iavistacorp.com
SCOTT ATKINSON
PRESIDENT
IDAHO FOREST GROUP LLC
171 HIGHWAY 95 N
GRANGEVILLE ID 83530
E-MAIL: scotta(iidahoforestgroup.com
DENNIS E PESEAU, Ph.D.
UTILITY RESOURCES INC
SUITE 250
1500 LIBERTY STREET SE
SALEM OR 97302
E-MAIL: dpeseau(fexcite.com
ROWENA PINEDA
ID COMMUNITY ACTION NETWORK
3450 HILLRD
BOISE ID 83702-4715
E-MAIL: Rowena(fidahocan.org
BRAD M PURDY
ATTORNEY AT LAW
2019 N 17TH ST
BOISE ID 83702
E-MAIL: bmpurdy(ihotmail.com
sM~.kOc
CERTIFICATE OF SERVICE