20040817Petition for Intervenor Funding CAPAI.pdf

Brad M. Purdy
Attorney at Law
Bar No. 3472
2019 N. 17th St.
Boise, ID. 83702
[phone]
FAX: [phone]
~y(fYhotmail. com
Attorney for Petitioner
Community Action Partnership
Association of Idaho
Idaho Public Utilities Commission
Office of the SecretaryRECEIVED
AUG 1 3 2004
Boise, Idaho
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC
AND NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO.
CASE NOS. AVU-04-
A VU-04-
COMMUNITY ACTION
PARTNERSHIP ASSOCIA-
TION OF IDAHO'
PETITION FOR INTERVENOR
FUNDING
COMES NOW, petitioner Community Action Partnership Association of Idaho
(CAP AI) and, pursuant to Idaho Code ~ 61-61 7 A and Rules 161-165 of the
Commission s Rules of Procedure, IDAPA 31.01.01 , petitions this Commission for an
award of intervenor funding.
Rule 162 Requirements
(01) Itemized list of Expenses
Consistent with Rule 162(01) of the Commission s Rules of Procedure, an
itemized list of all expenses incurred by CAP AI in this proceeding is attached hereto as
Exhibit "
CAP AI PETITION FOR INTERVENOR FUNDING
(02) Statement of Proposed Findings
CAP AI addressed issues of importance to the general body of A VISTA'
ratepayers, including the Company s overall proposed rate increase and the impact it
would have on its low-income customers. CAP AI proposes that the Commission take
into account the limitations of A VISTA's low-income customers and the effect the
proposed rate increase would have on them in issuing its fmal ruling.
CAP AI also identified the existence and characteristics of AVISTA's low-income
ratepayers and the unique challenges those individuals face in paying the electric bills
and the significant gap between the current level of "need" of those customers and
available resources. CAPAI proposed the following changes to AVISTA's low-income
weatherization program.
CAP AI proposes that the Commission order A VISTA to increase funding
of the low-income weatherization program ttom current levels to $350 000
annually.
Make necessary changes to the A VISTA weatherization program so that it
correlates to D.E. regulations and includes addressing all measures
which show an S.I.R. of 1.0 or better. This includes weatherization of
doors and windows and base load measures.
Amend the weatherization program to qualify all A VISTA households
using electricity as the primary heat source for weatherization, no matter
what secondary fuel source is being used. People with all electric heat
typically install secondary heat sources because of the relatively high cost
of electricity as a heating source, and:
CAP AI PETITION FOR INTERVENOR FUNDING
Amend the weatherization program to eliminate the "R number
requirement. Again, all households with electricity as the primary heat source
should automatically qualify for weatherization.
As the Commission is aware, with respect to a slightly reduced annual funding
level arrived at through extensive negotiations, A VISTA agreed to implement virtually
all of CAP AI' s proposed changes to the low-income weatherization program. AVISTA
did not, however, make any proposals regarding its low-income weatherization program
in its application or supporting testimony and exhibits. Were it not for the involvement
of and negotiations by CAP AI, these changes would not have been agreed to by
VISTA.
(03) Statement Showing Costs
Attached hereto as Exhibit "A" is a statement showing the costs incurred by
CAP AI in participating in this proceeding. CAP AI submits that the costs and fees
incurred are reasonable.
CAP AI has only previously appeared once before this Commission and relied
heavily on its consultant and attorney for both legal and substantive counsel. CAP AI
retained Michael Karp as its expert/consultant on technical and policy issues. Mr. Karp
was instrumental in brokering the agreement reached between CAP AI and A VISTA.
Given that agreement, and to avoid the unnecessary expenditure of time and money, that
ultimately would come out of ratepayers' pockets, Mr. Karp did not appear at the
technical hearing as a witness, but his participation in this proceeding was critical.
Mr. Karp was critical in assisting CAP AI establish policy and technical positions
and in assisting Ms. Ottens and Mr. Stamper in preparing their testimonies.
CAP AI PETITION FOR INTERVENOR FUNDING
In summary, the costs and fees incurred by CAP AI were reasonable.
(04) Explanation of Cost Statement
CAP AI is a non-profit corporation overseeing a number of agencies who fight the
causes and conditions of poverty throughout Idaho. CAP AI operates on a very limited
funding basis. The cost to CAP AI of participating in this proceeding constitutes a
significant fmancial hardship.
No other intervenor in this proceeding represented, exclusively, the interests of
the residential class, particularly the low-income sector of that class. CAP AI raised
issues, and represented the interests of, the general body of A VISTA's ratepayers. For
example, the low-income weatherization program for which CAP AI seeks increased
funding reduces the consumption of electricity during A VISTA's summer peak season
helping to defer the acquisition of marginally-priced resources and provides other
system-wide benefits including the reduction of bad debt and arrearages.
(05) Statement of Difference
Staff witness Lynn Anderson briefly discussed A VISTA's low-income
weatherization program, but did not take a fIrm position on the appropriate level of
funding and made no recommendations regarding program design changes. He simply
calculated the LIWA award ttom the recent Idaho Power rate case (IPC-03-13) and
calculated what the same total would be for A VISTA based on that company s total
number of Idaho customers.
As noted, A VIST A actually agreed to an annual funding level higher than proposed by
Staff, but still well within the range of reasonableness. Staff did not weigh in on the
numerous program design issues and left it to CAP AI to identify the discrepancy between
CAP AI PETITION FOR INTERVENOR FUNDING
the need for low-income weatherization assistance and available resources. Staffs areas
of concern and responsibility in the context of a general rate case are, of course, many. It
is fair to say that CAP AI was the only intervenor in this proceeding representing low-
income customers who are essentially all contained within the residential class. CAP AI
makes this point for purposes of satisfying the intervenor funding rules and statutes and is
not intended to be disrespectful of Staff.
(06) Statement of Recommendation
CAP AI's participation in this case addressed issues of concern to the general body
of ratepayers. The problems facing A VISTA's low-income customers are societal
problems that affect us all. Specific to AVISTA's other ratepayers, as Teri Ottens
testified, when low-income customers cannot pay their electric bills, the Company incurs
increased collection and associated costs as well as the write-off of uncollectible
accounts. These are costs that are passed on to all ratepayers. If low- income customers
are enabled to lower their electric bills through a Company-funded weatherization
program, this decreases the likelihood that they will be unable to pay their bills and
consequently, the Company avoids incurring the aforementioned costs.
Furthermore, because the low-income weatherization program is a DSM program,
it represents a resource to the Company. It is in the best interests of A VISTA'
ratepayers for the Company to have a healthy diversity of resources. By promoting the
conservation of electricity consumption, the Company is able to defer the acquisition of
new, marginally higher cost, resources.
Though a fmal Order has not yet been issued, CAP AI's participation in this case
contributed materially toward shaping the scope, and focus of the issues and evidence
CAP AI PETITION FOR INTERVENOR FUNDING
presented to the Commission and, thus, the ultimate outcome of this proceeding, by
offering a perspective not offered by any other party.
(07) Statement Showing Class of Customer
To the extent that CAP AI represented a specific VISTA customer class, it is the
residential class.
RESPECTFULLY SUBMITTED, this 13th day of August, 2004.
_.....- .., . ., --... ' . ~~~_"
Brad M. Purdy
CAP AI PETITION FOR INTERVENOR FUNDING
EXHIBIT" A"
ITEMIZED EXPENSES
Costs:
Photocopies
Mileage (Larry Stamper-hearing:
Telephone conferencing costs
Postage
Total Costs
520 miles (fY $0.20)
Fees:
Legal
Expert
(Brad M. Purdy 100.00 hours (fY $85/hr.
(Michael Karp-contract fee)
Total Fees
Total Expenses
1 This is a discounted "public interest" rate.
CAP AI PETITION FOR INTERVENOR FUNDING
$54.
$104.
$78.
$60.
$297.
500.
825.
$12,325.
$12,622.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT, I HAVE THIS thDAY OF AUGUST, 2004
SERVED THE FOREGOING PETITON FOR INTERVENOR FUNDING, IN CASE
NO. AVU-04-l/AVU-04-, BY MAILING A COpy THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING:
Scott Woodbury
Lisa Nordstrom
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID. 83720-0074
S. Mail, postage prepaid
Hand delivered
() Facsimile
() Overnight mail
David J. Meyer
Senior Vice President and General Counsel
A vista Corporation
O. Box 3727
1411 E. Mission Ave., MSC-
Spokane, WA. 99220-3727
Pr
S. Mail, postage prepaid
() Hand delivered
() Facsimile
() Overnight mail
Kelly Norwood
V ice President
A vista Corporation
O. Box 3727
1411 E. Mission Ave., MSC- 7
Spokane, WA. 99220-3727
DJU.S. Mail, postage prepaid
() Hand delivered
() Facsimile
() Overnight mail
Charles L.A. Cox
EVANS, KEANE
111 Main St.
O. Box 659
Kellogg, ID. 83837
14 U. S. Mail, postage prepaid
() Hand delivered
() Facsimile
() Overnight mail
s. Mail, postage prepaid
() Hand delivered
() Facsimile
() Overnight mail
~ U.S. Mail, postage prepaid
() Hand delivered
() Facsimile
() Overnight mail
Dennis E. Pesseau, Ph.
Utility Resources, Inc.
1500 Liberty St. SE, Ste. 250
Salem, OR 97302
Conley E. Ward
601 W. Bannock St.
Boise, ID. 83702
CAP AI PETITION FOR INTERVENOR FUNDING
B'i-ad M. Purdy
CAP AI PETITION FOR INTERVENOR FUNDING