20080911Decision Memo.pdf

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DECISION MEMORAUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
bNIZ-U-cJS-or
FROM:BEVERLY BARKR
DATE:SEPTEMBER 4, 2008
RE:ENERGY AFFORDABILITY WORKSHOPS
BACKGROUND
A variety of factors are contributing to an unelenting and significant upward pressure on
electric and natual gas rates in Idaho. Unfortunately, ths is occurng during an economic
downtu. Energy affordabilty has become a central issue for many Idaho households and
businesses, and utilities are facing the prospect of more customers being unble to pay their
energy bils in full and/or on time. Customers who are unemployed, have lower incomes, and/or
have fixed incomes that fail to keep pace with inflation are disproportionately afected by rising
energy costs, since they must devote an increasingly larger share of their income to paying for
natural gas and electrcity.
STAFF RECOMMENDATION
Staf recommends that the Commission initiate a formal generc case ànd schedule
workshops for the purose of examining issues surounding energy afordability and customers'
abilty to pay energy bils. Although Staf recognizes that there are serous energy affordability
issues facing commercial customers as well, Staff believes the primary focus at this time should
be on residential customers.
Under the terms of the Stipulation in Case Nos. A VU-E-08-0 I and A VU-G-08~0 I, A vista
agreed to support and actively parcipate in any Commission-established workshops for this
purose. Because these issues are not limited to Avist's service terrtory, however, Sta
maintas tht workshops should include all the major regulated energy utilities serving Idaho
DECISION MEMORADUM - i -SEPTEMBER 4, 2008
customers. Staf recommends that A vista, Intermountain Gas, Idaho Power and Rocky Mountain
Power be made paries to this case. Staf anticipates that consumer advocacy organizations, such
as CAPAI, ICAN, and AAR, will want to paricipate in these workshops as well and should be
invited to intervene.
Staff has prepared an initial list of topics to explore in workshops: (I) bil mitigation
(payment plans); (2) bil payment assistance; (3) bil reduction (e.g., conservation,
weatherization, bil discounts, reduced rates); (4) reduction in customer costs (e.g., payment
transaction costs); (5) barers to obtaning or retaining service (e.g., deposits & arearges); and
(5) case management (e.g., providig one-on-one customer assistance). The objective would be
to identify new programs, policies, procedures, and/or resources that could be adopted or used to
address energy affordability. To the extent possible, the costs and benefits of proposed solutions
would be identified. The information gathered at the workshops would be provided to the
Commission by Staf in a report with specific recommendations. The Commission would then
decide on how best to proceed.
COMMSSION DECISION
Does the Commission wish to initiate a formal generic case and schedule workshops for
the purose of examining issues surounding energy affordability and customers' abilty to pay
energy bils?
BAB:udmemosldecision memo energ affordabilty
DECISION MEMORANDUM - 2-SEPTEMBER 4, 2008