20100805Teri Ottens Direct Testimony.pdf

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Brad M. Purdy
1 Attorney at Law
BarNo. 3472
2 2019 N. 17th St.
3 Boise,ID. 83702
[phone] (Laid)
4 [phone] (Fax)
bmpurdy(áhotmaìl.com
5 Attorney for Petitioner
Community Action Partnership
6 Association of Idaho
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LDIO AUG -5 PM 3= 12
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UTILITIES
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
9 OF AVISTACORPORATIONDBAAVISTAUTILITIES FOR AUTHORITY TO
10 INCREASE ITS RATES AND CHARGES FOR
ELECTRIC AND NATURAL GAS SERVICE
11 IN IDAHO.
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13
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) CASE NO. AVU-E-1O-01
) CASE NO. AVU-G..10-01
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14 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 of Idaho headquarered at 5400 W. Franklin,SuiteG, Boise, Idaho, 83705.
On whose belialfare.you testifying in this proceeding?
The Community Action Parership Association ofIdaho ("CAPAI") Board of Directors
asked me to present the views of an expert on, and advocate for, low income customers 0
A VISTA Corporation (AVISTA). CAP AI's paricipation in this proceeding reflects our
organization's view that low income people are an important par of AVISTA's customer
base, and that these customers would be significantly impacted by the proposed changes
to the Company's electric service schedules, as originally fied.
Please describe CAP AI's organization and the functions it performs, relevant to its
involvement in this case.
CAPAI is an association of Idaho's six. Community Action Parnetships, the Community
Council of Idaho and the Canyon County Organization on Aging, Weatherization and
Human Services, all dedicated to promoting self-sufficiency through removing the causes
and conditions of poverty in Idaho's communities.
What are the Community Action Parnerships?
Community Action Partnerships ("CAPs") are private, nonptofit organizations that fight
poverty. Each CAP håsadesignated service area. Combining all CAPS, every county in
Idaho is served. CAPS design their various programs to meet the unique needs of
communities located. within their respective service areas. Notevery CAP provides.all.of
the following services, but all work with people to ptomote and support increased self-
sufficiency. Ptogramsprovided by CAPS include:.employment preparation and dispatch,
education assistance, child care, emergency food, senior independence and support,
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II. SUMMARY
Please sumarize your testimony in this case?
The purpose of CAPAI's testimony in this case is to support the negotiated settlement
stipulation previously filed with the Commission. . The details of CAP AI's
recommendations, which are incorporated into the stipulatiönand agreed to by all
signatories, are setforth in the following section.
Are there any exhibits to your testimony in this case?
No, other than that I incorporate by reference the Settlement Stipulation.
III. BACKGROUNDIRCOMMENDATIONS
Background
By way of background, why has CAP AI intervened in this particular proceeding?
CAP Al is concerned that the cQinbinedproposed increases in fees and rates. wil add to
the already heavy energy cost burden that low income familes in Idaho face, particularly
in these difficult economic times.
Can you provide poverty statistics for Idaho?
According to the Idaho Deparment of Commerce, 12.6% öfthe State's population, when
using the 2006 Census data, falls within federal poverty guidelines and an additional
12.4% fall within the state guidelines set at 150% of poverty levels. The 2006 Census
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reveals that those living in poverty are categorized as 8.7% elderly, 15.1 % children, 9.8%
all other families, 28.5% single mothers and 26.4% all others.
How does this translate to energy."affordability?"
Accordihgto the U.S. Deparment of Energy, the "affordabilityburden" for total home
energy is set nationwide at 6%öf gross household income and the burden for hoine
heating is set at2% ofgtoss household income. In Idåhö, there was a gap in the
2008/2009 heåting season of over
$75 milion between what Idahoans can afford to pay
(based on fedetal stadards) for energy and what was actually paid. Currently, the
LIHEAP program sends approximately $25.6 millon (for energy assistance,
weatherization and administration) to Idaho.
Settlement Stipulation
Would you please provide an overall sumary of the settlement reached by the parties in
this case?
Yes. Unless otherwise stated, my comments are limited to AVISTA's operations related
to the provision of electric, not gas, service. Generally speaking, the Stipulation does not
attempt to address, let alone resolve, every aspect of AVISTA's rate case
filing. Rather,
it constitutes an agreement on the overall revenue requirement increase, revenue
allocation among customer classes, certain rate design and other miscellaneous issues.
What are the specific terms of the settlement as they affect CAPAI's interests?
First, the Stipulation provides for al increase to the Company's revenue requirement of
$21.25 milion anuallyl (electric revenue; gas is al additional$l.85 million), phased-in
overapetiodofthtee(3) years. All signatories to the Stipulation agreethat it is in the
overall best interest of the Company's general body of ratepayers.
Did CAP AI actively paricipate in this proceeding?
25 1 An increase of 9.25% compared to the 14% originally proposed by AVISTA.
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Yes, beginning with athotoughreviewofthefiling itselfto becoming.a formal party and,
ultimately, to successfully negotiating asettlement, filing this testimony and paricipating
in the technical hearing to be conducted in this case, CAPAI has exercised all of its rights
and responsibilities as afull aid formål pary.
Wil you please identify those additional components of the settlement that were of
paricular concern and relevance to CAPAI?
Yes. First, CAP AI believes that A VISTA's first tier block consumption (600 Kwh) for
its residential rate schedule, is less than the actual monthly non-discretionary usage by
residential customers, including consumption for electric space heating. Absent
additional information and analysis, CAPAI.is not yet prepared to recommend a specific
level of consumption that should constitute AVISTA's firsttier block for its residential
rates. As the settlement Stipulation states, a futue collaborationwil be conducted
between CAPAI and AVISTA and all other interested persons.
CAPAI naturally values. the fact that AVISTA has agreed toa reduction in the
amount of revenue requirement increase from the originally tequested 14.0% to 9.25%.
Furthermore, the "rate mitigation" aspect by which the increase will be phased-in over
three years somewhat alleviates what would otherwise be a rate shock were the full
amount of the increase to go into effect immediately.
CAPAI also. notes that the level of increase to the fixed monthly charge (an
increase from $4.60 to$5.00)wiI be considerably less than originally proposed.
CAP AI believes that, although not enough to completely satisfy the existing need,
the Company's agreement to increase the annual low-income weatherization program
funding level from $465,000.00 to $700,000.00 is a sizeable increase. Also, the
continued fuding of the low-income outreach conservation and education program in the
amount of $40,000.00 provides benefits to LIHEAP recipients.
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CAPAI notes thatthere.iscurentlyunderway a collaborative process the
objective of which, among other things, is to determine the need for and availabilty of
resources to adequately satisfy the need for additional low-income weatherization
fuding. CAPAlcommends AVISTA for being an integral part ofthat collaborative åUd
wil continue to work with the Company at every opportunity to ensure that it takes into
consideration the needs of its low-income Idaho customers.
Is there anything else YOu wish to add to your assessment of the settlement proposed for
approval in this case?
Yes. Like åUy settlement of a contested mattet, all pårties represented their respective
constituents' specific interests and perspectives. Obviously, there are many issues on
which the paries disagree with the Company and, with each other. Havingsaidthat, it is
CAP AI's position that the settlement Stipulation .reflects the best result that could be
reasonably expected within the context and circumstances of this paricular proceeding.
Does CAP AI have any paricular goals for the future regarding AVISTA?
Yes. CAPAI hopes thåtAVISTAcontinues to demonstrate concern for its low-income
customers in Idaho not only through adequate fuding of its low-income weatherization
program, but also through support of other reasonable efforts to assist low-income
customers and,therefore,thegeneral body of AVISTA's ratepayers. Though it is
unreasonable to expect that CAPAI and A VIST A will always be in agreement on every
issue and that every rate case in the future wil be settled, CAP AI commends AVIST A
for its effort and compromise to reach settlement of CAP AI's issues of concern in this
case.
V. CONCLUSION
Does that conclude your testimony?
Yes it does.
DIRECT TESTIMONY OF TERIOTTENS 6
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CERTIFICATE OF SERVICE') ç; )
I, the undersgneq, herebycelfYtbtö"th~ . .. daY of Ai7í~( . .....i, 2010, ¡serVed
a copy of the foregoing document on the following by U.S. mail, first class postage and
electronic maiL.
2
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4 Kelly Norwood
A vista Corporation
PO Box 3727
Spokane, VV A 99220-3727
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David Meyer
AvistaCorporation
PO Box 3727
Spokane, VV A 99229-37278
9 Donald L. Howell, II
Kristine A. Sasser
Idaho Public Utilities Commission
472 W. Washington St.
Boise, ID 83702
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Peter 1. Richardson
Greg M. Adams
515 N. 27th St.
PO Box 7218
Boise, ID 83702
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16 Howard Ray
PO Box 1126
Lewiston, ID 8350117
18 DeanJ. Mìler
420 W. Banock St.
Boise, ID 8370219
20 Larr A. Crowley
5549 S. Cliffsedge Ave.
Boise, ID8371621
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Rowena Pineda
3450 Hìl Rd.
Boise, ID 83703.4715
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LeeAnHall
25 3518 S. Edmunds St.
DIRECT TESTIMONY OF TERI OTTENS 7
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Seattle, WA 98118
Benjamin J. Otto
710 N. Sixth St.
Boise, ID 837022
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Ken Miler
PO Box 1731
Boise, ID 83701
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Rob Pluid
6 PO Box 571
Moyie Springs, ID 83845
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Chris Fairchild
PO Box 571
Moyie Springs, ID 838459
10 Electronic Only:
Jean Jewell
Commission Secreta
Idaho Public Utilities Commission
J ean.jewellCÐpucOidaho. gov
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DATED, this L day of it '9 115114
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DIRECT TESTIMONY OF TERIOTTENS
,2010
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Brad M. Purdy . ~...,....J
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