20090529Ottens Direct.pdf

Brad M. Purdy
Attorney at Law
2019 N. 17th S1.
Boise, Idaho 83702
[phone]
Cell: [phone]
Fax: [phone]
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May 29, 2009
Jean Jewell
Commission Secreta
Idaho Public Utilties Commission
472 W. Washington
Boise,ID 83702
RE: Cas No. A VU-E-09-01: Direct testimony ofTeri Ottens
Dear Ms. Jewell:
Enclosed, please fid an original and 9 copies of the direct testiony ofTeri Otens on behalf of
the Communty Action Parership Association of Idaho in the above-referenced docket. Also
enclosed is a CD contaning the testimony. There are no exhbits. Please contact me should you
have any questions.
Sincerely,ß~BradM.~~ ...
f_ ..
1
Brad M. Purdy
2 Attorney at Law
BarNo. 3472
3 2019 N. 17th St.
4 Boise,ID. 83702
[phone] (Land)
5 [phone] (Fax)
bmpurdy(áhotmail.com
6 Attorney for Petitioner
Communty Action Parnership
7 Association of Idaho
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(" t: !"i;/ ~""" \
2: 21
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
9 IN THE MA TIER OF THE APPLICATION
10 OF AVISTA CORPORATION FOR THEAUTHORITY TO INCREASE ITS RATES
11 AND CHARGES FOR ELECTRIC AND
NATURAL GAS SERVICE TO ELECTRIC
12 AND NATURAL GAS CUSTOMERS IN THE
STATE OF IDAHO.
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) CASE NO. A VU-E-09-01
) AVU-G-09-01
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16 COMMUNITY ACTION PARTNERSHIP ASSOCIATION OF IDAHO
DIRECT TESTIMONY OF
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I. INTRODUCTION
Please state your name and business address.
My name is Teri Ottens. I am the Policy Director of the Community Action Parnership
Association ofIdaho headquaered at 5400 W. Franlin, Suite G, Boise, Idaho, 8 705.
On whose behalf are you testifying in this proceeding?
The Communty Action Parnership Association of Idaho ("CAP AI") Board ofD rectors
asked me to present the views of an expert on, and advocate for, low income cust mers 0
AVISTA.
Please describe CAP AI's organization and the fuctions it performs, relevant to i s
involvement in this case.
CAP AI is an association of Idaho's six Community Action Parerships, the Co unty
Council of Idaho and the Canyon County Organization on Aging, Weatherization and
Human Services, all dedicated to promoting self-sufficiency through removing th
and conditions of poverty in Idaho's communities.
What are the Community Action Parnerships?
Community Action Parnerships ("CAPs") are private, nonprofit organizations th t fight
poverty. Each CAP has a designated service area. Combining all CAPS, every c unty in
Idaho is served. CAPS design their varous programs to meet the unque needs 0
communities located within their respective service areas. Not every CAP provi es all of
the following services, but all work with people to promote and support increase self-
suffciency. Programs provided by CAPS include: employment preparation and ispatch,
education assistance child care, emergency food, senior independence and suppo ,
clothing, home weatherization, energy assistance, affordable housing, health car
and much more.
Have you testified before this Commission in other proceedings?
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Yes, I have testified on behalf of CAP AI in numerous cases involving PacifiCorp, Idaho
Power Company, A VISTA, and United Water.
II. SUMMARY
Please sumarze your testimony in this case?
The purose of CAP AI's involvement in this case is to seek assurance from A VISTA that
it will take measures to support legislative action in the 2010 legislative session that wil
eliminate any potential prohibition against allowing public electric utilties to voluntarly
propose and, if approved by the Commission, implement low-income bil payment
assistance programs for the Company's low-income customers.
Are there any exhibits to your testimony in this case?
No.
III. RECOMMENDATIONS
Please briefly describe the history behind CAP AI's efforts to seek the necessar
legislative enactments to allow low-income bil payment assistance.
By way of background, CAPAI has pursued changes to Idaho's Public Utilities Law for
several years that removes prohibitions that have long been perceived to prohibit public
utilities from implementing programs that assist their low-income customers in paying
their bils.
What actions have CAPAI and other stakeholders taken to achieve CAP AI's objective in
this regard?
Most recently, on September 29,2008, the Commission implemented Case No. GNR-U-
08-01 to provide a foru for the exploration of issues related to the affordability of
energy in Idaho. The Commission noted that a varety of factors were, and continue to,
contribute to upward pressure on electric and natural gas rates in Idaho. Consequently,
energy affordabilty has become a central issue for many Idaho households and
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businesses, paricularly for low-income customers. As a result of the Commission's
initiation of Case No. GNR-U-08-01, workshops were conducted in which all ofIdao's
largest public utilties and numerous other staeholders, including CAP AI, contributed
their respective perspectives on the issue of energy affordability and how best to address
the problems Idahoans face. Pursuant to Commission directive, the Commission Staf
ultimately prepared and submitted a report to the Commission identifying the many
issues raised by workshop paricipants, the position taken by the paricipants, and Staff s
specific recommendations regarding those issues.
Was the possibility of pursuing legislative change to allow bil payment assistace
addressed during the workshops and included in Staffs report?
Yes. It is fair to say that bil payment assistance was one of the more thoroughly
discussed issues and potential means for addressing energy affordability. Though not
every workshop paricipant supported permitting bil payment assistance programs, Staff
ultimately supported the idea, noting that it would require legislative action to remove the
existing barier to implementing such programs.
What is the "barier" you refer to?
Curently, Idaho law prohibits utilities from setting rates or charges, or taking any action,
that is preferential to any paricular customer or class. Because bil payment assistance
programs would provide assistance to utilities' low-income customers and, argubly,
would be preferentiaL.
Exactly what legislative changes do CAP AI propose be implemented in order to pave the
way for bil payment assistance programs?
CAP AI proposed legislation that would possess the following characteristics. First, the
Idaho Public Utilties Law would be amended to allow utilities to voluntaly propose
programs that would assist their low-income customers in paying their bils. Second, the
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design of any such proposed program would be within the discretion of the utilties.
There would be no universal format or design and each utility would be allowed to desig
programs that would best suit the needs of their respective companies and customers.
Finally, any program proposed by a utility would be subject to Commission approval
following a proceeding that would permit all members of the public to comment on the
proposed program.
Would a program such as you have described provide system-wide benefits that would be
reaped by all ofa utility's customers and not just those who are low-income?
Yes. Over the course of the past few years, CAP AI has been a party to numerous cases
before this Commission, including rate cases for A VISTA, Idaho Power, Rocky
Mountain Power, and United Water. In the process of its involvement in these cases,
CAPAI has demonstrated that Idaho's public utilties incur substantial expense when a
customer is disconnected for inability to pay and/or is often delinquent in paying their
bil. These costs are not always recovered from the customer who is disconnected or is
delinquent and, thus, the costs are passed on to all ratepayers. These costs include,
among others, the costs of disconnection and reconnection, costs incured in attempting
to collect from customers who are delinquent, legal costs of pursuing collection and,
ultimately, costs of writing off bad debt.
What was the Commission's reaction to the idea of seeking legislative change that would
permit such programs?
The Commission supported the concept of bil payment assistance programs. In Order
No. 30724, issued in Case No. GNR-U-08-01 the Commission stated that is "supports
legislation that would allow utilities to propose for Commission consideration programs,
policies, and rates for the benefit oflow-income residential customers. The legislation
should allow the utilties flexibilty in the programs to be proposed, recognizing that each
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utilty has differing circumstances and unique service areas. Details regarding the
appropriate rate mechanism to support such programs can be discussed through future
cases as they come before the Commission. The proposal of such programs should be
voluntary on the par of the utility. The Commission urges all utilties to support such
legislation, even if some do not intend to propose programs." Order No. 30724 at pp. 2-3.
What action, if any, was ultimately taken to pursue change to the curent legislative
regime to allow bil payment assistance?
CAP AI drafted proposed legislation that contained the characteristics I have already
described and that, CAPAI believes, conforms to the Commission's Order No. 30724..
Did A VISTA take a position on bil payment assistance and, if so, what was that position
and did A VISTA take any action in support of that position?
During the workshops conducted in Case No. GNR-U-08-01, AVISTA expressed support
for the general concept of bil payment assistance programs noting that it already has
such a program in place in the State of Washington which permits these programs. In
fact, low-income assistance programs can be found in the States of Oregon, Utah,
Montaa and Wyoming as well as many other States throughout the country.
Did A VISTA offer a rationale other than solely assisting its low-income customers in
support of bil payment assistance programs?
Yes. A VISTA generally expressed its belief that such programs are beneficial from a
purely business standpoint and, therefore, benefit all of the Company's customers. Ths
rationale is based, in part, on avoiding the costs I referred to earlier regarding
disconnections/reconnections of customers and having customers who are chronically
delinquent in paying their bils.
What action did AVISTA ultimately take in support of bil payment assistance?
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The Company lobbied in support of a low-income bil that was introduced in the Idaho
Senate. Although the bil failed to pass on the Senate floor by a single vote, A VISTA
made a genuine and commendable effort to seek its passage.
If A VISTA supported bil payment assistance legislation in the most recent legislative
session, what does CAP AI seek in this proceeding?
CAP AI seeks a commitment from A VISTA that it wil continue to take all reasonable
steps to seek the ultimate passage of bil payment assistance legislation. CAP AI urges
A VISTA to commit not only to passively supporting legislation, but to assist in the
education and awareness of all interested parties regarding how and why bil payment
assistance programs offer more than assistance to exclusively low-income customers but
also reduce system costs resulting in lower overall rates for all customers. CAP AI also
seeks a commitment from AVISTA that if bil payment assistance legislation is
introduced in the 2010 legislative session, A VISTA wil lobby in support of the
legislation as it did in the 2009 session.
Does this conclude your testimony?
Yes, it does.
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CERTIFICATE OF SERVICE
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I HEREBY CERTIFY that on the J r day of May, 2009, I caused to be served on the
individuals listed below, the foregoing document via electronic transmission and U.S. Postage.3
4 A VISTA Corporation
Kelly Norwood
PO Box 3727
Spokane, WA 99220-3727
Email: Kelly.norwoodrfavistacorp.com
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David Meyer
PO Box 3727
Spokane, WA 99220-3727
Email: david.meyerrfavistacorp.com9
10 Commission Staff:
Don Howell
Deputy Attorney General
472 W. Washington St.
Boise,Id 83702
Don.howellrfpuc.idaho.gov
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14 Idaho Forest Group, LLC:
Dean J. Miler
420 W. Bannock St.
Boise, ID 83702
joerfmcdevitt -miller .com
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17 Scott Atkson
171 Highway 95 N.
Grangevile, IDD 83530
scottarfidahoforestgroup.com
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20 Clearater Paper Corporation:
Conley E. Ward
601 W. Banock St.
Boise,ID 83702
cewrfgivenspursley.com
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23 Dennis E. Peseau, Ph.D.
1500 Liberty Street SE
Suite 250
Salem, OR 97302
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dpeseaurfexcite.com
2 Idaho Conservation League:
Betsy Bridge
710 N. Sixth Streeet
Boise, ID 83702
bbridgerfwildidaho.org
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5 Idaho Community Action Network:
Roweena Pineda
3450 Hil Road
Boise,ID 83703-4715
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Carie Tracy
1265 S. Main St., #305
Seattle, W A 981449
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DIRECT TESTIMONY OF TERI OTTENS