20080822Ottens Di Support Stipulation.pdf

Brad M. Pudy
1 Attorney at Law
BarNo. 3472
2 2019 N. 17th S1.
3 Boise,ID. 83702
[phone]
4 FAX: [phone]
bmpurdycmhotmail.com
5 Attorney for Petitioner
Communty Action Parership
6 Association of Idaho
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN TH MATTER OF THE APPLICATION
10 OF AVISTACOPORATIONFOR THE
i'THORITY TO INCREASE ITS RATES11 AND CHAGES FOR ELECTRC AN
12 NATURAL GAS SERVICE TO ELECTRICAN NATUL GAS CUSTOMERS IN
13 THESTATEOFIDAHO
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CASE NO'S.AVU-E-08-01
AVU-G-08-01
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COMMUNITY ACTION PARTNERSIDP ASSOCIATION OF IDAHO
DIRECT TESTIMONY OF
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DIRECT TESTIMONY OF TERI OTTENS 1
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I. INTRODUCTION
Please state your name and business address.
My name is Teri Otens. I am the Policy Director of the Communty Action Parership
Association ofIdao headquaered at 5400 W. Frain, Suite G, Boise, Idaho, 83705.
On whose behalf are you testifying in ths proceeding?
The Communty Action Parership Association of Idao ("CAP AI") Board of Directors
asked me to present the views of an expert on, and advocate for, low income customers 0
A VISTA on behalf of CAP AI. CAP AI's paricipation in ths proceeding reflects our
organzation's view that low income people are an importt par of AVISTA's customer
base, and that these customers will be adversely impacted by the proposed changes to the
Company's electc service schedules.
CAP AI is an association of Idaho's six Communty Action Parerships, the Communty
Council of Idaho and the Canyon County Organzation on Aging, Weatherization and
Human Servces, all dedicated to promoting self-suffciency though removing the causes
and conditions of povert in Idaho's communties.
Communty Action Parerships ("CAPs") are private, nonprofit organzations that fight
povert. Each CAP has a designated service area. Combining all CAPS, every county in
Idaho is sered. CAPS design their varous programs to meet the unque needs of
communties located with their respective service areas. Not every CAP provides all 0
the following services, but all work with people to promote and support increased self-
suffciency. Programs provided by CAPS include: employment preparation and dispatch,
education assistace child care, emergency food, senior independence and support,
clothng, home weatherization, energy assistace, afordable housing, health care access,
and much more.
Have you testified before ths Commission in other proceedings?
DIRCT TESTIMONY OF TERI OTTENS 2
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Yes, I have testified on behalf of CAP AI in numerous cases involving PacifiCorp, Idaho
Power Company, AVISTA, and United Water. CAPAI paricipated, on behalf oflow
income customers, in the recent remote meterig proposal by A VISTA and in the
negotiations that followed.
Why has CAP AI intervened in ths paricular proceeding?
CAP AI is concerned that the combined proposed increases in fees and rates will add to
the already unwieldy energy cost burden that low income familes in Idao face. Ths is
of signficant importce to A VISTA's low-income Idaho customers and those who must
provide services to them.
According to the Deparent of Commerce in the State ofIdaho, 12.6% of the State's
population, when using the 2006 Census data falls withn federal povert gudelines and
an additional 12.4% fall with the state gudelines set at 150% of povert levels. The
2006 Census reveals that those living in povert are categorized as 8.7% elderly, 15.1 %
children, 9.8% all other famlies, 28.5% single mothers and 26.4% all others.
According to the Deparment of Energy, the "affordabilty burden" for total home energy
is set nationwide at 6% of gross household income and the burden for home heating is set
at 2% of gross household income. Idao ras # 4 in the nation with the highest energy
burdens. There is a gap of over $74.7 milion between what Idaoans can afford to pay
(based on federal stadads) for energy in 2007 and what they actually paid. Curently
the LIHEAP progr sends approximately $12.2 millon (for energy assistace,
weatherization and administrtion) to Idaho.
How do these increases proposed by A VISTA directly impact its low-income customers?
Due to AVISTA's lack oflow income data trackig CAPAI canot precisely answer ths
question. However we believe that ths rate increase, coming on top of past recent
increases and the recent cost of living increases in food and fuel will have a signficant
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impact upon our customers. Aleady, without ths increase, the CAP serving AVISTA
terrtory has seen an approximate 25% increase in calls for assistace. The additional
burden caused by an over 16% increase in utilty rates will only increase the needs of
those in povert or on the edge.
What does CAP AI feel could assist ths customer base?
One of the programs that help low income customers to reduce their utilty bil is the
highy successfu weatherization program. This program allows the CAP to provide
energy effciency measures to a home that not only reduces their utilty bil but is a long
term solution in keeping the utility costs under control. We believe that increasing this
program to allow for weatherization of more low income homes would be highy
desirable (curently only 10% of the homes receiving a LIHEAP benefit are weatherized).
The proposed settlement agreement proposing an additional $100,000 for ths program
incorporates this proposal. Whle this falls short of bridging the gap between need and
resources it is a commendable step by A VISTA in addressing this gap. .
A second program that has been tied to weatherization is the provision of energy efficient
education. Curently only those homes qualifying for weatherization assistace curently
receive such education. The expansion of energy effciency education to more low
income homes receiving LIHEAP would help those homes to reduce their energy burden,
thereby reducing their individual bil amounts. As mentioned, curently only 10% of
homes receiving LIHEAP receive ths education. Consequently the company has agreed
to fud a low income energy conservation education program in the amount of $25,000
anualy which CAP AI believe to be a highy effective mechansm for reducing energy
demand, thereby providing system-wide benefit to all ratepayers.
Finally, CAP AI believes that the low income problem is larger than the A VISTA
terrtory. Consequently, CAPAI strongly urges this Commission to initiate a separate and
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generic proceeding involving all utilties to address solutions in serving this vulnerable
population.
Are you comfortble that these issues have been addressed in the settlement agreement
negotiated with A VISTA?
Yes, we feel that A VISTA has responded in a positive maner to our concerns and has
worked out a settlement agreement to address these. We look forward to fuher dialog
concernng futue solutions.
Does that conclude your testimony?
Yes it does.
DIRECT TESTIMONY OF TERI OTTENS 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 22nd day of August, 2008, I caused to be served the
foregoing COMMUITY ACTION PARTNERSHIP ASSOCIATION OF IDAHO'S DIRECT
TESTIMONY OF TERR OTTENS on the following via electronic transmission.
Scott Woodbur
Deputy Attorney General
Idaho Public Utilties Commission
472 W. Washington St.
Boise,ID 83702
David Meyer
Kelly Norwood
A VISTA Corporation
1411 East Mission
P.O. Box 3727
Spokane, W A 99220-0500
Conley Ward
Givens Pursley LLP
601 W. Banock St.
Boise,ID 83702
Denns Peseau
Utilty Resources, Inc.
1500 Libert Street SE
Suite 250
Salem, OR 97302
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