20021025Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
RANDY LOBB
DON HOWELL
TONYA CLARK
BEV BARKER
GENE FADNESS
WORKING FILE

FROM: WELDON STUTZMAN

DATE: OCTOBER 25, 2002

RE: PROPOSED CHANGES TO SAFETY AND ACCIDENT REPORTING RULES, CASE NO. 31-1101-0201, AND PROPOSED CHANGES TO UTILITY CUSTOMER RELATIONS RULES, CASE NO. 31-2101-0201.

On July 23, 2002, the Commission caused to be published in the Administrative Bulletin a Notice of Proposed Rulemaking for changes to the Commission’s Safety and Accident Reporting Rules, IDAPA 31.11.01. Those rules currently adopt by reference several national safety codes as well as the Federal Gas Pipeline Safety Regulations. The proposed amendments update the reference to the national safety codes and federal regulations to be adopted by reference. For example, Rule 101 adopts by reference the 2002 Edition of the National Electric Safety Code.
Comments regarding the proposed rules changes were to be postmarked no later than September 18, 2002. The Senate and House Subcommittee for Review of Administrative Rules reported that no objections would be made to the proposed rulemaking.
The Commission also on August 20, 2002, caused to be published in the Administrative Bulletin a Notice of Proposed Rulemaking for changes to the Commission’s Customer Relations Rules, IDAPA 31.21.01. The Commission’s Customer Relations Rules describe conditions for a utility to require a deposit from customers and terminate service for non-payment. The proposed changes to Rule 101 provide additional reasons for a utility to require deposits from a residential customer or applicant. A change proposed by Intermountain Gas Company to Rule 105 would change the determination of the deposit amount for customers that use gas service for space heating only. The proposed changes to Rule 311 allow a utility to terminate service after normal business hours if the utility is unable to access the customer’s meter during normal business hours. The changes to Rules 102 and 310 are housekeeping matters.
Written comments on the proposed changes were to be postmarked no later than October 23, 2002. The Senate and House Subcommittees for Review of Administrative Rules again reported that no objections would be filed to the proposed changes. Idaho Power Company and Avista Corporation filed comments stating its support for the proposed rule changes. Intermountain Gas filed comments supporting the rule changes, and specifically commenting on its proposal to change Rule 105. Staff filed written comments supporting the changes except for the change to Rule 105 proposed by Intermountain Gas Company.
In its comments, Intermountain Gas stated that space heating only customers comprise approximately 25% of the Company’s customers, but account for approximately 50% of its annual write-offs. Intermountain Gas notes the existing rule allows for a deposit “equal to two months average billing for a year round customer,” and contends the proposed change “would allow the Company to also collect a similar two-month deposit amount from heating-only customers.” The proposed changes allows deposits from heating customers based on the two highest months’ bills, however, not on an average for the year as for other customers.
Staff stated in its comments that the proposed change to Rule 105 would unfairly penalize customers that use gas service for only space heating. If the proposed change is accepted, customers using gas service for only space heat who are required to pay a deposit would pay a much larger deposit than other customers. A copy of Rule 105 showing the proposed change is attached to this memorandum.
Staff recommends the Commission adopt the proposed changes to the Safety and Accident Reporting Rules, IDAPA 31.11.01. Staff recommends the Commission adopt the proposed changes to the Customer Relations Rules except for the proposed change to Rule 105.

Commission Decision
Does the Commission wish to adopt the proposed rules for Safety and Accident Reporting Rules, IDAPA 31.11.01, and issue a Notice of Pending Rule in Case No. 3111010201?
Does the Commission wish to adopt the proposed rules for the Customer Relations Rules, IDAPA 31.21.01, and issue a Notice of Pending Rule in Case No. 3121010201?
Does the Commission approve the change to Customer Relations Rule 105 proposed by Intermountain Gas Company?

Weldon B. Stutzman

Attachment

bls/M:31-1101-0201_2101-0201_DecMemo_ws
DECISION MEMORANDUM 3