20141010Gervais Direct .pdf

Avista Corp.
141 1 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone 509.489'0500
TollFree 800-727-9170
October 9,2014
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074
Dear Ms. Jewell:
Re: Case No. GNR-U-14-01 - Exemption from UCRR 3ll - Joint Utilities Application and
Testimony
Dear Ms. Jewell:
Enclosed for filing with the Commission is an original and seven (7) copies of Avista
Corporation, doing business as Avista Utilities (hereinafter Avista or Company), at l4ll East
Mission Avenue, Spokane, Washington, Direct Testimony in support of the above referenced
Case No. Additional copies have been provided to the service list.
Please direct any questions on this matter to myself at [phone].
Sincerely,
4"*,&"'-;
Manager, Regulatory Policy
Avista Utilities
linda. [e-mail]
509-495-4975
Attachements
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DAVID J. MEYER
AFA-tt rr t'tt..'t*1.-\'..-lll i:-V-
VICE PRESIDENT AND CHIEF COUNSEL FOR
REGULAToRY & GovERNMENTAL AFFATRs ZU|E0CT l0 PH 2:39
AVISTA CORPORATION
P.O. BOX 3727
].41]. EAST MISSION AVENUE
SPOKANE, WASHINGTON 99220-3727
TELEPHONE: [phone],5
FACSIMILE : (s09 ) 49s- 8851-
DAVTD . MEYER@AVISTACORP . COM
BEFORE THE IDNIO PT'BIJIC UTIIJTTTES COMMISSION
rN THE IvIATTER OF THE iIOINT
PETITION OF AVISTA CORPORATION,
IDAHO POWER COMPAIIY, AI{D ROCKY
MOT'NTATN POWER COMPAI{Y FOR AN
EXEMPTION FROM UTILITY CUSTOMER
RELATIONS RULE 3]-1 (4) AI{D (5) .
cAsE NO. GNR-U-14-01
DTRECT TESTIMONY
OF
LINDA M. GERVAIS
FOR AVISTA CORPORATION
(ELECTRIC AI{D NATURAL GAS)
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I. IMTRODUCTION
o.
addrees.
PIeaEe st,ate your narne, employer and business
A. My name is Linda M. Gervais and I am employed as
the Manager of Regulatory Policy for Avista Corporatj-on
(Company or Avista), at 1,41,1, East Mission Avenue, Spokane,
Washington.
A. Would you please briefly describe your
educational background and profesgional oqterience?
A. Yes. I earned a Bachelor of Science degree in
Business Administration from Kennedy Western University.
I joined the Company in ,June of L993. Over the past
2L years I have served in a number of different roIes,
including contract construction,and demand-side-
management. I have spent approximately 1-2 years in the
Rates Department with j.nvolvement in Commission
rulemak j-Dgs , compliance, j-ntegrated resource planning,
Iow-income issues and other aspects of state and federal
policy. In 2007, L became the Manager of Regulatory
Policy.
a. What is the purpose of your teatimony in this
proceeding?
Gervais, Di 1
Avista Corporation
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A. Avista 1s among the utilities filing a joint
petition for an exemption from IDAPA Utility Customer
Relations Rules (UCR) 31L (4) and (5). Specifically, UCR 3L1
(4) and (5) state:
04. Opportunity to Prevent Termination of
Service. Immediately preceding terminat,ion of
service, the employee designated to terminate
service sha11 identify himself or herself to the
customer or other responsible adult upon the
premises and shaI1 announce the purpose of the
employee's presence. This employee sha1l have in
his or her possession the past due account record
of the customer and shal1 request any availableverificatj-on that the outstanding bi1Is are
satisfied or currently in dispute before this
Commission. Upon presentation of evj-dence that
outstanding bi1ls are satisfied or currently in
dispute before this Commission, service shal1 not
be terminated. The employee sha11 be authorized
to accept fu11 payment, or, ?t the discretion of
the utility, partial payment, and in such case
sha11 not termj-nate service. Nothing in this rule
prevents a utility from proceeding with
terminati-on of service if the customer or other
responsible adult is not on the premises.
05. Notice of Procedure for Reconnecting Service.
The utility employee designated to terminateservice shal1 give to the customer or leave j-n a
conspicuous location at the affected service
address, a notj-ce showing the time of and grounds
f or termJ-nat j-on, steps to be taken to securereconnection, and the telephone numbers of
utility personnel or other authorizedrepresentatives who are available to authorize
reconnection.
My testimony will describe the Company's experience
with a limited waiver of UCR 311 and explain why it should
Gervais, Di 2
Avista Corporation
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be allowed to perform remote disconnection/reconnection in
its Idaho servlce territory.
O. Are you sponsoring any exhibits in this
proceeding?
A. Yes. I am sponsoring Exhibit No. 1-, Schedule
Nos. 1 and 2. Schedule No. l- includes the Company's
Petition for limited wai-ver and Schedule No. 2 includes
the Company's Updated Summary Report, both filed in Case
No. AVU-E-07-09.
rr. REQUEST FOR EXEMPTTON
a. Didn't Avista request a limited waiver of UCR
311 in another Caee?
A. Yes. Avista originally filed its application
seeking approval to implement a one-year pilot program for
remote reconnects and disconnects with the Idaho Public
Utilities Commission (IPUC) on August 30, 2007 in Case No.
AVU-E-07-09. The Company also requested a limited waiver
of Utility Customer Relations Rule 311-.04 and 311.05
(IDAPA 3L.2:-..0L.31-l-.04 and .05) related to the f inal
customer notification prior to disconnection.
On September 19, 2007, the Commission issued a Notice
of Application and Notice of Modified Procedure,
establishing a deadline for the submission of comments
Gervaj-s, Di 3
Avista Corporation
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and/or protests. Commission Staff filed comments
supporting the Company's Application. AARP Idaho filed
comments opposing the Company's Application. Likewise, the
Community Action Partnership Assocj-ation of Idaho (CAPAI)
filed comments opposing approval of the Company's
Application as well as the Commission's use of Modified
Procedure. Additionally, CAPAf requested that the
Commission convene a technical hearing and order a
workshop regarding the Company's proposal. On December 4,
2007, the Commj-ssj-on deferred judgment on the Company
ApplicaEion and ordered workshops to further refine and
develop details of the pilot program.l
On March 27, 2008, a public workshop was held at the
Commission' s office in Boise during which the parties
reached a tentative agreement on most of the issues.
Representatives from Avista, Commission Staff, CAPAI and
AARP attended the workshop. At the conclusion of the
workshop, participants agreed to continue working
informally on the issues of customer notifj-cation and
identification of the data to be collected during the
course of the pilot.
Gervais, Di 4
Avista Corporation
t Order No. 30471
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On April 28,2008, Avista submj-tted its Revised
Application pursuant to Order No. 30471,. The Revised
Application incorporated certain changes to the pilot
program agreed to during the March 2008 public workshop as
well as subsequent correspondence between the parties.
On July 30, 2OO8, the Commission approved Avista's
Application to implement the 18-month pilot program and
ordered that, upon completion of the pilot program, the
Company shall prepare rra detailed report with the
Commission documenting its findings." (Order No. 30603 at
l_0. )
On ,January 28, 20L0, Avista submitted a letter to the
Commission requesting an extension of its limited waiver
of IDAPA 31-.21,. 01.31-1. 04 and 311. 05 (Utility Customer
Relations Rules granted for the purpose of implementing
its Remote Disconnect and Reconnect Program. )
In Commission Order No. 3L009 dated February L7,
201-0, the Commj-ssion stated that it had:
"...reviewed Avista' s current f iling and Staf f ' s
recommendation of the filing. Accordingly, the
Commission approves Avista's reguest to continueits Remote Disconnect and Reconnect Pilot
Program, including the previously approved waiver
of UCR Rules 3L1.04 and 3l-1.05. A 503 reduction
in reconnect fees is authorized until the
Commission has had an adequate opportunity to
revj-ew the Company's forthcoming report regarding
the results of the pilot program, and to assess
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Avista Corporation
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its effectiveness. In reaching this finding, the
Commission notes that it has not received any
objection or negative feedback regarding the
Company's reguest for a brief continuation of the
terms of the pilot program. "
The Company filed its Summary Report on May 4, 2010
and an Updated Summary Report on February 11 , 201-3.
III. AVISTA PILOT PROGRAM
o.
Program.
Please describe the terms of Avista's Pilot
A. As provided earlier, the Company filed an
application seeking approval to implement a one-year pilot
program reguesting waiver of the Utility Customer
Relations Rule 311.04 and 311-.05.
After discussions with the Parties2, customers
selected for the pilot included customers with 200 amp
services that met at least one of the following criteria:
o Premises where employee safety is a concern,
i.e., customers who have threatened to harm
Avista employees or property, premises where
there is a danger f rom anj-ma1s, or premises that
have an obstructed access to the meter;
o Customers who have prevlously had two field
collection visits or disconnection in the
preceding 12 months; and
Gervais, Di 6
Avista Corporation
2 Commission Staff, AARP and CAPAf.
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o Excluded will be CARES customers, customers
subject to t,he moratorium, who are on a winter
payment plan, who have provided medical
certificates, or who have made satisfactory
payment. arrangements.
The Company's authorized reconnection fee was set at
$24 during regular business hours and $48 after hours. For
purposes of the pilot, the Company reduced the charge to
50? of the normal reconnect fees.
O. What are aome of the benefitg identified from
thig piJ.ot?
A. Safety of Avista's employees continues to be a
significant benefit of the pilot program. Avista has
adopted a practice in both Idaho and Washington whereby a
service switch is installed on any customer that is deemed
to be a potential safety risk to our employees. We
continue to see an increase in the number of customers
that pose a real threat to our employees. Safety is a
concern for the meter readers and service people tasked
with disconnecting power or acting as impromptu bill
collectors. Aggressive dogs are often used to deter
utility personnel from doing their jobs. Over the years,
Avista servicemen have encountered situations where angry
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Avista Corporation
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homeowners threaten to release their dogs to attack them.
Others have threatened physical harm, sometimes with a gun
in hand. Concern for safety is especially import,ant when
you consider these *bi11 collectors" are unarmed and can
be carrying collections on their route. Due to the
numerous safety concerns, two-person crews are typically
used, as well as in some cases, a police escort.
IV. TECHNOIJOGY
O. Does the Company have the ability to remotely
disconnect gervice in Idaho using an Advanced Metering
InfraEtructure (AlfI) ?
A. No. However, both the Two-way Automatic
Communicatj-ons System (TWACS@) and Paging co11ar devices
continue to be utilized in Company's Idaho service area in
accordance with the qualifying rules of the original pilot
program. Both of these devices can be remotely
disconnected and reconnected.
A. DoeE the Company have plans
technology in ldaho?
to inetall AMI
A. Yes, the Company is currently evaluating the
installation of AIvII in lts Washi-ngton servi-ce territory
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Avista Corporatj-on
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beginning in 201-5. Once complete, w€ will install AIqf in
Idaho.
V. UTII,ITY PRACTICE OF DISCONNECTIONS
O. Can you please explain the Company's position on
whether or not the utility practice of disconnectionE will
change with an exemption to the rule, as well aE with
remote capabilities.
Yes. It is always the Company's desire to keep
customers connected. The need to dj-sconnect non-paying
cusEomers or to avoid a potential safety risk is nothing
new for ut,ilities, but the tools of today a11ow for more
efficient handling of these arrears or unique situations.
Due to large service areas and long feeders in the
Company's service territories, significant "windshield
time" is required to manually connect/disconnect these
customers. When doing field collections in Idaho, the
Company currently collects a payment from customers at the
door less than 15? of the time.
O. What practice would change with the waiver of
the rule?
A. Specifically,after the meter has been
installed, an Avista employee would no longer be required
to physically visit the premises to disconnect or
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Avista Corporation
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reconnect the meter. However, the Company will 1et the
customer know of the possible disconnection and/or
reconnection by following its current notification
process3, but without otherwise sending an employee to the
premises. After the meter installatj-on, a special notice
that was developed with the assistance of the Commission
Staff, is provided with the mailed past due notice and the
final notice reminding customers they have a remote
device.
a. What optione doeE the cugtomer have to satisfy
payment if an employee does not come to the door prior to
disconnection?
A. In addition to the traditional methods of paying
by check or money order through the United States maiI,
pay stations, or drop boxes, or paying by cash at pay
stations, the Company also offers customers the options of
online payment through the Company's website and pay-by-
telephone.
Some of these methods, such as online payment and
pay-by-telephone, provide almost immediate account
3 the bill is mailed and due within L5 calendar days, after which the
Company aIlows a 3-day grace period for payments to post. A Past Due
Notice is mailed after the grace period ends, dated 7 calendar daysIater. The Final Notice is mailed 3 business days before the past due
notice expires. The Interactive Voice Response System (M) then callsthe customer on the day the notice expires.
Gervais, Di 10
Avista Corporation
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updating and the customer can make the payrnent without
leaving their home.
VI. CONCI,USION
a. Pleage summarize the reason the Company is
requeating a waiver to RuIe 311 (4) and (5) ?
A. As stated earlier in my Eestimony, it is always
the Company's desire to keep customers connected. The need
to disconnect non-paying customers or to avoid a potential
safety risk is nothing new for utilities, but the tools of
today allow for more efficient handling of these arrears
or unique situatj-ons.
O. Does this conclude
testimony?
your pre-filed direct
A. Yes.
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Avista Corporation
drlfi cory,
1{tlifrslrl'rssi'lt P0EqSrZ,
spstrneilstrirgto[ SurE t ?
Telephsro tts{SS:m
TsilFree 8UH2f'$m
AprilzSj 2008
'IegnIgwell, Secretary
Id:&o Publis Utilities Commission
W. qlZ Washington Street
Boise; ID 83720
Re: AVU-E-07-09 - Avista Corporation's Revised Application to Implernent A Pilot Program
for Remote Dsconnects and Reconnects
DearMs. Jewell:
Enclosed for filing with &e Commission is an original and 7 copies of ths Company's revised
application requesting approval of a '"Rernote DisconnectlReconnect Pilot Program" and a
request that the Cornmission provide the Company with a limited waiver of IDAPA 31.21.01
(31 1 .03) and (31 I .04) [Utility Customer Relation Rules] for the term of the pilot.
The Company requests that this filing be processed under the Commission's Modified Procedure
rules.
Please direct any questions on this matter to myself at (509) 4954975 or Greg Paulsen at (509)
495-4976.
Sincerely,
&*d*;#-wr;**
Linda Gervias
Manager, Regulatory Policy
Avista Corporation
linda- gervai [e-mail]
Enclosures
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 1 of 19
DAVID J. MEYER
VICE PRESIDENT AND C}IMF COUNSEL FOR
REGULATORY AND GOVERNMENTAL AFFAIRS
AVISTA COPJORATTON
P.O. BOX 3727
I4I 1 EAST MISSION AVENUE
SPOKA}.{E, 1VASHINGTON 99220.37 27
TELEPHONE: [phone]
FACSMILE: (509)49s*8851
BEFORE THE IDAHO PUBLIC UTILITIES COMIVNSSION
IN THE MATTER Or THE APPLTCATION ) CASE NO. AW-E-07-09
or AVISTA CORPORATTON FOR THE )
AUTHORITY TO IMPLEMENT A PILOT )
PROCRAI\{ FOR REMOTE DISCONNECTS )
A}ID RECONNECTS )
REVISED APPTICATION OF AVISTA CORPORATION
Exhibit No.
Case No. GNR-U-14-0
Schedule 1, Page 2 of 19
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I. INTRODUCTION
Avista Corporation, doing business as Avista Utitities (hereinafter Avista or
Company), at l4l I East Mission Avotue, Spokane, Washington, respectfully rsquests that
the Commission approve a pilol program for "Remote Disconnect/Reconnect" and requests
that the Commission issue in its order providing the Company with a limited waiver of
IDAPA 3 1 .21 ,01 (3 I I .03) and (3 I 1 .04) [Utility Customer Relation Rules] for the term of the
pilot. The revised proposed pilot is intended to implement a system for rsmote disconnection
and reconnections, rvithout the need for an ernployee visit to the affected premises.
The Company requests ihat this ftling be proccssed under the Commission's Modified
Procedure rules.
Communications in reference to this Application should be addressed to:
David J. Meyer, Esq.
Vice President and Chief Counsel for
Regulatory and Govemmental Affairs
Avista Corporation
P.O. Box 3727
l4i I E. Mission Avenue, MSC-13
Spokane, WA 99720-3727
Phone: [phone]
Fax: [phone]
Revised Application of Avista Corporation
Case No. AVU-E-07-09
KellyNorwood
Vice President - State and Federal Regulation
Avista Corporation
P.O. Box 3727
14ll E. MissionAvenue, MSC-7
Spokane, WA 99220-37?7
Phone: [phone]
Fax: [phone]
Page I
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 3 of 19
II. BACKGROUNI}
Avista originally filed its application seeking approval to impleanent a ooe-year pilot
program for remote reconnects and disconnects with the Idaho Public Utilities Commission
(IPUC) (hereinafter the Comrnissiou or Staff) on August 30, 2007. The Company also
requested a limited waiver of IDAPA 31.21.01 (311.03) and (311.04) [Util$ Customer
Relation Rulesl for the term of the pilot. The Commission authorized the use of Modified
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?1
Procedure and established a comment deadline. Commission Staff filed comments
supporting the Company's application. The American Association of Retired People
(AARP) and Community Action Partrrership Association of Idaho (CAPAD (referred to as
the "Parties") filed comments opposing the Company's application. In Order No" 30471, the
Commission ordered the Parties to conduct workshops to further rEfine the details of the
progftun.
ThE Parties attempted to resolve any remaining issues through two different
conference calls, and a formal workshop that rvas held March ?7,2008in Boise, at which all
Parties were represented. The Company and Parties were able to resolve all rsrnaining issues
through this process. Among the issues resolved were: program criteria; ths distinction
between urban and rwal customers; form of customer special notice; an evaluation plan; and
cost recovery.
The purpose of this Revised Application is to reflect ths conssnsus reached on the
remaining issues with respect of the pilot program.
IU. SCOPE OF PROPOSED PILOT PROGRAM
This pilot program will include the installation of approximately 600 remote
disconnect collars using Power Line Carrier (PLC) and wireless pa$ng as the
eommunication protocol. PLC is a technology that allows communications auross power
lines to a disconnecUreconnect collar at the electric meter. This capability allows remote
disabling/enabling of flre electric service from Avista's office. The wireless paging allows
communication to a collar at the electic meter which allows remote disabling/enabling of the
slectric servics. The specifications for disconnect collars and the wireless pa$ng collar are
Revised Application of Avista Corporation
Case No. AW-E-07-09
PageZ
Exhibit No. 'l
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 4 of '19
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included as Attachment A. The Company proposes that the pilot's duration be eighteen
months from the time the last collar is installed.r
lncreased ernployee safety is an advantage of the program. Dangerous pets,
treacherous driving conditions, obstructed and unsafe meter &ccess and potentially
confrontational customer contacts can be greatly reduced by utilizing this technology.
In the Company's original application, there was a distinction made between'trfban"
and "rural" installations. After further discussion with the Parties, the Company agresd to
eliminate this distinction tbr purposes of the pilot.
Customers selected for this pilot will include customers with 200 amp services that
meet at least one of the following criteria:
o Premises where ernployee safety is a conceffi, i.g, customers who have
threatened to harm Avista employees or property, premises where there is a
danger from animals, or prernises that have an obstructed access to the meter;
r Customers who 'have previously had two field collection visits or
disconnection in the preceding 12 months; and
o Excluded will be CARES customers, customers subject to the moratorium,
who are on a winter payment plan; who have provided medical certificates, or
who have made satisfactory payment errangsmefits.
'Ihe Company proposed in its original application to keep the current authorized
reconnection fce at $24 during regular business hours and $48 after hows. Certain Parties,
however, believed that Avista would see a savings in cost by not having a field representative on
I By *ay of further backgr:ound, in 2005, thc Company bcgan a four-ycar projsct Io convsrt alt natural gus and clcctric
meters to AMR in the State of ldaho. Nearly 180,000 natural gas and electric metcrs havs been automatcd. Over 139,000
natural gas and elcctric metsrs wcre automatsd using radio'basod terhnology artd 40,000 were automflted utilizing power
line carrier (PLC) technology. Electric meierc on the PLC system are read rutomatically, and do not require a meter reader
or nrobile unit to eotlect the nlstqr rcading. The Company bslievcs this technology could provide the opportunity for
operational savings by reducing or eliminating both regulu atd after-hours *ervice calls tiue to reconnecting or
disconnecting senice at the metcr. ln the casc of an after-hour$ reconncct. thc scrvicc can be remotely activated within
minutcs a.s opposul to hours in the more remote areasr thus providing faster response to cu$tomers and eliminatiog the need
to send a scrlice peson to the premisc on overtime.
Revised Applieation of Avista Corporation
Case No. AVU-E-07-09
Page 3
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 5 of 19
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z)
site and asked that these costs be passed to the customer. Even though Avista continues to
believe that the customsrs w-ho cause the Company to incur additional expense should bear
those costs, for purposes of the pilot, the Company has agreed to reduse the c,harge to 50% of
the normal reconnsct fees. This will result in fees for participating customcrs of $12 during
normal business hours and $24 if reconnection is performed after hours.
The reasonable capital costs of this pilot would be included in Avista's normal cost of
operation and the Company will propose that the costs be spread emong all rate classes in its
next general rate case. The avoided costs achieved would be returned to customers, as well,
through the rate making process.
tV. CURRENT NOTITICATION PROCESS
Avista's current process to disconnect and reconnect an account requires that an
ernployee be dispatched to drive to the customer's premises, disconnect the service and leave
a disconnect notice in a conspicuous lseation. A *'disconnect" consists of the removal of the
eleckic meter, installation of insulated boots, and reinstallation of the meter. If there is a
safety risk to the ernployee, the disconnection will occur at the nearest upskeam device2 from
the electris meter. Once the account is brought back into good standingi or has been opened
by a new customer, an employee is dispatchsd to drive back to the site to restore the service.
Avista continually looks for ways to reduce costs and provide a safe work
environment for eruployees. It is believed that this project will reduce employee field trips to
repeated delinquent accounts, enhance employee safety (avoidance of ernployee risks
associated with, e.g., dangerous animals, etc.), allow quicker restoration of service, and
ultimately encour&ge timely customor paynent, thereby reducing customer accourt balanses.
2 An upstre*m device includss equipment such as a fune or serviqe wire *rat can be operted or cut 10 intcrrupt
the circuit and $op thc flow of cncrgy.
Revised Application of Avista Corporation
Case No. AVU-E-07-09
Page 4
Exhibit No. 'l
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 6 of 19
4{
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Avista currently conducts disconnecUreconnect services in compliance with ldaho
Utility Customer Relation Rule IDAPA 31.21.01 (300 through 313), which include the
following:
IDAPA 31.21.01 (311.03) * Opportuuify to Prevent Terminstion of
Service - Immediately preceding termination of service, the ernployee designated to
terminate serviee shall identifo himself or hersElf to the customs or other responsible
adult upon the premises and shall arnounoe the purpose of the employee's presenco.
This employee shall have in his or her possession the past due eccount record of the
customer and shall request any available verification that the outstanding biils are
satisfied or currently in dispute before this Commission. Upon presentation of
evidence that outstanding bills are satisfied or surrently in dispute before this
Comrnission, service shall not be terminated. The employee shall be authorized to
accept full payment, or, at the discretion of the utility, partial payment, and in such
case shall not terminate ser/ice. Nothing in this rule prevo:rts a utility &om
proceeding with trrmination of service if the customer or other responsible adult is
not on the premises at the time of termination.
IDAPA 31.21.01 (31 1.04) - Notice of Procedure for Reeonnection Service -
The ernployee of the utility designated to terminate serrice shall give to the customsr
or leave in a conspicuous losatiou at the servise address affected a notice showiug the
time of and grounds for termination, steps to be takea to secure reconnection, and the
telephone numbers of utility personnel or other authorized representatives who are
available to authorize reconnection.
V. PROPOSED NOTTFICATION PROCESS
In order for this pilot to be effective and achieve the desired results, Avista requests a
waiver of rule IDAPA 3-1.21.01 (311.03) and (311.04) for those accounts included in the pilot
program. Specifically, at the time the disconnect device has been installed, an Avista
employee would make an attempt to personally oontast the customer and a special notice will
be left with the customer (if personal contact is made) or on the prernises (if customer is not
home). The Company has worked tuith the parties to develop the special notice as provided
as Attachment B.
The next time the customer is eligible for disconnection, the Company would not be
required to physically visit the prernises to disconnect or reconnect the meter and would not
24
25
26
27
28
29
30
3l
32
JJ
Revised Application of Avista Corporation
Case No. AW-E-07-09
Page 5
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 7 of 19
34
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be required to give the custorner (or leave in a conspicuous location at the service address
affected) a notice showing the time of, and grounds for, terminatiou. However, the Company
will let the customer know of the disconnection or reconnection by following its current
notification proces$3, but without otherwise sending an employee to the prernises.
AII meters with the device attached will be flagged as part of a pilot program and
entered into the Company's customer service system. The Company will continue to be
otherwise compliant with rule IDAPA 3l .21 .01 (31 1.03) and (31 L04) with all customers not
included in the pilot who have been disconnected or reconnected,
VI. MEASUREMEN? AND EVALUATION
Measurement & evaluation is integral to defining benefits of a pilot program and
identifuing areas for improveinent or modification. Avista and the parties have worked
together to define what should be included in the Company's report at the oonclusion of the
pilot program. The Company's evaluation plan will include, but is not limited to, the
following:
All data collected will be for the duration of the pilot program. Individual customer
data for progf,am participarits will be available upon request. Evaluation criteria may require
some manual collection of data and will be collected and evaluated as completely as possible.
5 The biU is mailed and due within I5 calendar days, aftcr which the Company allows a 3-day grace period for
payments to post. A Past Due Notice is mailed after thc grace period ends, dated 7 calendar days later. The
Final Noticc is mailed 3 businc.ss days bcfore thc past due notice expires. The Interactivc Voice Response
System (IVR) then calls the customer on the day the notice expires.
Revised Application of Avista Corporation
Case No. AVU-E-07-09
Page 6
Exhibit No. 'l
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 8 of 19
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For program p*rticipants:
The total number of customers selected for the pilot by rate schedule, the reason for
selectiort, and the month of installation of disconnection device;
The total number of disconnect devices installed by type (TWACS or Nighthawk) and
by month;
The total number of remote disconnections by month, rate schedule, and reason for
disconnection (e.g., non:payment of bill or failure to pay deposit);
The total number of customers by rate schedule who were remotely disconnected
during the pilot period:
Never
Once
Twice
Three or more times
The total number of customers who were remotely disconnected and received a
LIHEAP benefit one or more times during the pilot period;
The totsl number of instances by rate schedule where a customer was not reconnected
within 24 hours following a remote discorrnection;
By device type, the total numbEr of instances where the disconnection device failed
to:
a. Disconnect a customer following remote activation
b. Reconnect a customer following remote activation
By rate schedule, the minimum, rnaximum and average length of time from rernote
disconnection to rernote reconnection;
By rate schedulo, in instances where thE customer was disconnected for non-payment,
the minimum, maximum and average lenglh of time from when the mstomer paid or
made satisfactory arrangements and remoie reconnection;
The total number and nature of inquiries, complaints, or comments (negative or
positive) received from eustomers who had a disconnestion device installed;
Detailed analysis of costs, cost savings, and non-monetary benefits of pilot program;
and
Any evidence that installation of the disconnection device influenced customer
behavior (positive or negative).
a.
b.
c.
d.
Revised Application of Avista Corporation
Case No. AVU-E-07-09
Page 7
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page I of 19
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For non-particlp*uts
The average number of custorners by rate schedule during pilot period;
The total number of disconnections by month, rate schedule, and reason for
disconnection (e.g;, non-payment of bill or failure to pay deposit);
The total number of customers by rate schedule who were disconnected during the
pilot period:
a. Onceb. Twice
c. Three or more times
The total number of customers who were disconnected and received a LIHEAP
beirefit one or more times during the pilot period;
The total numbsr of instances byrate schedule where a customsr was not reconnected
within ?4 hours following disconnection;
By rate schedule, the minimum, maximum and average length of time from
disconnectiou to reconnection; and
By rate schedulq in instancss where the customer was disconnected for non-paymenf
the minimum, maximum and average lengtb of time from when the customer paid or
made satisfactory arrangernents artd reconnection.
28
Revised Application of Avista Corporation
Case No. AVU-E-07-09
Page 8
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 10 of 19
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Yrr. REQLTEST rOR APPROVAL
Avista respectftlly requests approval of the "Remote Disconnect/Reconnect Pilot
Program" and requests that the Commission provide the Company with a limited waiver of
IDAPA 31.21.01 (311.03) and (311.04) lutilrty Customer Relation Rules] for the term of the
pilot.
WHEREFORE Applicant respectfully requests the Commission issue its
Order authorizing the proposed pilot program, with this revised application being processed
under Modifi od Proc.edure.
DATED at Spokane, Washington, this 25th day of April, 2008.
AVISTA CORPORATION
Vice President and Chief Cotxsel for
Regulatory and Governmental Affairs
Revised Application of Avista Corporation
Case No. AW-E-07-09
Page 9
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 11 of19
STATE OF WASHTNGTON )
$s
CountyofSpokane )
David J. Meyer, being duly sworrl on oath dcposos and says:
That he is the Vice President and Chief Counsel for Regulatory and Governmental
Affairs of Avista Corporation;
That he has read the foregoing Application, knols the coutents thereof a*d belierres the
safire to be tue.
(;-
David J. Meyer
Subscribed and swom to before me this 25th day of April, 2008.
Notary Publis in and for the State
Washington, residing in Spokane
Application of Avista Corporation
Case No. AVU-E-07-09 Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 12 of 19
ATTACHMEI\TTA
Exhibit No. 1
Case No. GNR-U-1+01
L. Gervais, AvBta
Schedule 1 , Page 13 of 'l 9
A,?wtsrfr A,Wvtsrfr
UtilitiesUtilities
1-888-427-3403
wttrlil.avi sta uti I itieo.com
Your alectric service was disconnected today.
Your residence or business was selected to
b* part of a pilot program approved bythe
ldaho Public Utilities Commission. A device
was installed on your electric meter to allow
Avista to disconnect or reconnect your
service remotely.
ln the future, AvJs& wlll not need lE send
a field rcprwntative to your sdruice
lscatian to diecanneet or reconnact
service. You will not have the opportunig to
pay a field rEpresentative at your door to
avoid disconnection. No notice willbe left for
you at the seruice location following
disconnection. Avista willcontinue to send
notices and attempt to coniact you by
telephone in advance whenever it intende to
dismnnect service. lt is very important that
you call Avista to make sure all your contact
information, including telephone number, is
conect You may reach Avista at the number
below.
1-888-427-3403
wrru.avlcta utllitiee.com
$EE REVEBSE SII}E FOH
IM PORTAHT INFOBIiilATIOT.I
1-888.497-3403
www-avista u$l itlee.com
Your electric service was disconnected today.
Your residen@ or business was selected to
be pail of a pilot program approved bythe
ldaho Public l.Jtilities Commissicn. A device
was installed on your electric met€r to allow
Avista to disconnect or reconnect your
service remotely.
ln the future, Aviera- will not narld to sand
a fleld rsprese.nlative ta your service
lacation ta disconnacf or raconnecf
qerulcr,, You will not have the opporhlnfiy to
pay a field representative at your door to
avoid disconnestion, No notice will be left for
you at the service localion following
disaonnection. Avista willeontinue to send
notices and attempt to contact you by
telephone in advane whenever it intends to
dismnnect service. lt is very important that
you call Avista to make sure all your contact
infonnation, including telephone number, is
conect. You may reach Avista at the number
below.
1€89-427-3403
unrnt avistautilities,com
$EE REVERSE SIIIE FB*uitrro. r
]M PORTANT I N FOHIIATNBN- 1 4-O 1
L. Gervais, Avista
Schedule 1, Page 14 of 19
AWwrcTfi
Utilities
The ramote disconnect/reconnect dovics
installed on your metprwillallowAvista to
reconnect service more quicldy. When the
reason for the disconnection {such as non-
payment of a past due bill) has been
remedied, you will need ts mntact Avista to
request reconnection. Your service willthen
be reconnEcted immediately by means of
an electronic signal; you will not need to
wait for a field representative to be sent to
your service location. lf you have any
questions or experience problems at any
point in the remnnection prscess, please
csntact Avista at the number below, 24
hours a day, 7 days a week.
lrnportant:
lf your service is shut-otf, you willbe
required to pay the amount past due, a
daposit, and a reconnect fae.
A medical certiticate notifying Avista of a
serious illness or medical emergency
may delay termination,
We are willing to make mutually
satisfactory payment arangemenls.
An informal or formal cornplaint conceming this
action may be filed $,ih fB ldaho Public UrifBes
Commission - P.O. Box 8$720, [krise, lD 8372C
0074 [phone] ortoll free (800) 432-0EGg"
1-88H27-3403
rnrw.avisiautil itiee"Fm
8EE REVEBSE SIBE FOR
IIIPORTANT I!{FOH*TATIOH
A'Wvtsrr
Utilities
The remote dlseonnecUre@nnecl device
installEd on your mEter will allowAvi$ta to
reconnect seMce more quickly. When the
roason for the disconneclion (sucfr as non-
payment of a past due bill) has been
remedied, you will need to conhc{ Avista to
request reconnection. Your service will then
be reconnected immediately by means of
an electrcnic signal;you willnot need to
wait for a field representative to be sent to
your seruie location" lf you have any
questions or experience problems at any
point in the reconnection processr please
contact Avista at the number below, 24
hours a day, 7 days a week.
lmportant:
lf your servica is shut-off, you will be
rEquired Io pay the amount past due, a
deposit, and a reoonnact fes.
A medicalcertificate notitying Avista of a
serious illness or medical emergency
may delay termination.
llYe arc wllling to make mutually
satisfactory payment arrangenrsnts.
An informal orformal complaint conceming this
ac{ion may bB filed with the ldatp Public Utilities
Commission - P.O. Box 83720. Bobe, lD 83720-
0074 (208) Stll-0369 or tollfree (800) {}2#69.
,-936.427*3403
rrnmn avlstautllities.cCIm
sEE HEvEHsE se8'E#ltjli.:;1
IrirPoHrANilNmBJg*f,m?#13
ATTACHMENTB
Exhibit No. 1
Case No. GNR-U-1+01
L. Gervais, AvBta
Schedule 1, Page 16 of 19
.%i,"'
""r, 'i :t',r I +j
NIEHTHAWK
TAXE RE'iIOTE COilTAC,L
cEo700
ltlhole House DisconnecUReconngct
a
a
)
I
o
a
Paging Format
Oper$*g
Ternperafure:
POCSAG 512, 1200,
2400 BaM
-200 c b +700c
Featrs$
AvailaUe in UHF, VHFamd 900 MHz Freryerx*rs
Low profile, 2.75 inch oftet dng or ringi{ess sodce
4 and 5 Jar Model
Mufti.Leve] seqrrity dee
Optional Horfleo$ner re$st button
LOWCOST- Conholfundi,om am bcated on a sirEle c*wil
board de$gned ftn mass prpdudion
Long lerm avaihtdlity ard short produdhn bad limes
Speuificathns
Ftequendeo:UHF, VHF,9OOMhZ
Elsrfical$BiEhingCapaciS: 200Amps'fhe CEOT& is a cmplets in@mM wirelss remote whole
horce dismnrpd pdage urples wih net€r dapter, 200 amp
switdt, and Nbhhawk stbol boatd. lnsdlaliqt is fighfdrq fa$
requiring mly tre rcrpual d tta exislirg meta, pltg ln of &e
CEO700, ad replacemont of he neter inb he CE0700. Upon
insbllat*m the Uility command oenter can then page the switch
'ofl' or'off. li is literalty frat simple. An optional hornodvnor Ieset
surttdt is avaihbb trat would require the honrcormer b pu$ an
easyto seebufton on ffre rneterhou$ng bfu hs swit* wuJH
actualty dose.
Ihe CEOT@ can be pogrammed b uott on any public orpiwle
paging rrctrffork. Ttre devices can be adhated by any totdt tone
phone 0r I mmputer nrodetn using our mer-fiiendly softvara.
The CEO700's ideal fur seassral use buildings, student apart-
ment oornplercs, drronic n0 pays, ad remotesafety dlsconned,
lnsta$alion is fast requiring only fte renuel of the odsting meta,
plug in of he C80700 and replaernent of fre metr inb he
CEO700 (the remoE contd fundiom are adive immedhtely
upon irchllation). Ttre slim, bur profils, inbgrabd circuit boad
frb snugly betreen tre meter hck and the $0 Atttp disconned
srr'ritdr allor$ng for use of a lov proffie UL adapter.
PagingAirtirne
The CEO700 can be shipped to pt comdetely pregogmammed to
pagirq si1rnals in pur mglm. Pagrtts can be provided ttmqh
Nighfur,vk Systen6, lnc. atvery hlv nonhly rabs.
ff yar arnently have pagirq service prefuonce, the CE0700 can be
prognammed b accomnrcdab your piltate or public paging service
in all UHF, VHF, and 900 MHzfiequencies,
AboutfiteCompany
Non in its second decad€, Nhhffffie Sysbms, lnc., desbns and
marufadurcs easy to use ?ltq ard Plat' pa$ng ptduds tnt
rBmobly conUd vitfualty any elecffical device, fom any locatbn.
Ourproduch are dxfined b be easily inshlled and operated.
MGilTHAVIIK SYSTEITiS, lNC. 10715 GULTDAIE, SUIIE 200 SAN AHTONIO, fX 78216
TEL 210.341.il8l I tA)( 210.3{I.20t I TOtt-rRIt A7.764.4484
UIWW.NIGIIIHAWI$YSIEMS.COrII OTCBB; NIHX Exhibir No. 1
Case No, GNR-U-14-01
scneo,reLiSi#X'i#'I3
Tha Disconnect Switch
hterbase (DsD from TwAcs.
ofFrs a stand-alone. trto,
urry, addressable disconnect
ssdtch whicn prwides tamper
detection capabilitie and paves
tfie wry for prepay servtces
TIE Dst comblnes the
funcflonalityof a 2@Amp
lstched relayvulth the
convenience of the superlor
TwAcs trrv+way power line
communications $Etem.
shn*alone Deslgn
Tlp stand-ahre desigr offers a
plt8:in. setfrontained solution,
rdtich requires no additional
crnnections and b lndepenthnt
of fls metert)0e or rechnologr.
Allfiatb required is inslaDatbn
on aTwAcsenabl€d
dbdbution q,stem.
Whole HousG Dlscoilnect
No ,!ur can prordeforrernde
whob house disconnect and
l"c$nect wittt dre Dsl. Tfie
DSI utiltres a depe,idable
and rellable ?00Amp htched
rclay and comblrps it wtfr
tie poilertuI TwAcS syEterr
Tltis comt ination permits
tle cUStOnErseNice
neprEsBntadv€ (csR)s
disconnect and reconnect
indlvidually metered residential
or small commercial, singl+
phase 2ooAmp services
remotely from the utllltyoffica
The DSI dsconnects tfie electric
s€rylce to UE home while
loavjrEfie meter powercd for
;nonltorlng or communicAtion
purpo$es.
E€motFConirol--From
tl$lity offfce
NolorEgiS itnecxsary to
create a vvork order and
dispatfi a rEter technldan to
reflxlve or"boof a meteli The
csR orTwAcs slrem operator
can simplyissue $e command
for an lmrpdiate or s$eduled
discrnnection. Reconrcqtion
is equally es}. Eadl DSI is
unlryelyddrsable based
on a secure,factory ass8ned
identiur 6r t& h$rest integrity.
RemoE communication ls
pwided via teTtt Acs system
which linl(s the utilltycon$ol
cen&rard fie metersite.
Rapid coffnrutiql of servlce
dismnnect or reconnect can be
obtalned wi&in 20 seconds of
@mm8nd initiation.
Uriversal Desitn
TtE DSI'S universalclesien Rts
nEst residential applications"
Compatibility ii as$ured
with 200Amp4-iaw form
2s and s-iaw fom 12s/25s
residential sofiksts. The DSI
ururks witl meters both dd and
mltil; elBctomechanicsl and
elec'lronic. The Dsl consists of
an interbse&llar, a 20OAmp
ta$hed relayandaTWACS
communlcaflon module wi$r
an elecsonic sy'/itch controller.
The collar has bur (or five) jaws
frat accept the blades from the
meter on tha topside and four
(or five) blades ftat insert iilo
a standaro meter soc*et on the
botom side.
tltlity and consumer
Beneftts
U$lhles utllizing fiis product
will have at $eir disposal apolrerful revenue $llection
tool for prcblem accoJnts.
mwellasSteabilityb
enhance customer service by
providirg a corvenlence br
seasonsl and rental customers.
Adtlitionally, tris improws
utility e{ficlency and personnel
safety by allowlm connecB and
disconnects to be perfurned
from the convenhnce of the
utiliry office. The twcFway
addressable Dg also paveg
th€ way fcr future prspfry
metering implenentadons.
LnparDe&c{on
Tamper Detecilon is provided
through the use of a periodic
two-way communications
checK load side dstector, and
diagnostic reglster. Tweway
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 1, Page 18of19
(DSt)
8lhut,s t,le consufiEf b make
sure treir hone is readyfor
conrEctlon. Flrst a sorftumre
command ishsuedbarm
the svi&h follorred by thecln$fiter manualfi depressingthe'on' t ush-guilon.
LowProfib
Ttc towProfteebsign
enhances the universal ft
6nd minimiees any drangeof
appearance to the consumers
seryice.
Petl( Overlbsd
I '- : ',1
TqE Argtr$e Riseiretdc*
,: .:'',
gsepa8q Aid Cleafanca
;Srfiilti endilranca
SbrxlaflB oomotlancs
EMIXH slggepuU&ly
AC uneqlrge
Elecflcel Fastllnsism
Ef,4URR €missiofts
irehr Foms
TWACS@ Disconnect Switch Interbase
cornmunlcdons confi rm f ufie ffil ims not been remowd.
l-oad slde detection verifim
Prqper operatbn and wlllirdicm a Umffi condidon. TfiedireUc register gerentes
an alarm ffag that is sent btle utiliU office lf tamper ls
detectgr.
suttrfi $tEtl8 l^ED and
con$ect
PmltAuftoll
The DSl orfhrs two option$ to
dose the swftdr: a) a direct
softvars commaM frorn Dcsl,s
master stason softl|rarg or
b) a twlstep process that
IrB u$ 0r &B oecqmact swihl, Mw 'otr ,4fit,,'tr,l8 twt ob d&f,,ut6{,/N{Ete[f flry 0a s&Fd e 6rah sr*r, ru$rlr&r]$, i
edlat&tsl letftL ffi{o l,t&gBr6lrr,, f66tre, OJduserbrB{pmnBdsroroompfiarl@ #&arsuarrtsii& WthWNr*Ari6,
*wffiaL#te
DCg, A rhlrfianrrlrssrn ras oflfffin d &/ve taniffif,, ati wfr t tB b d* t 96dttEDM.ueclstitrl frtctuaselkfirrB d illG Pfrtd
?opArypq-: :'to@Arps-ps uL 108J1999
10.om AmnS FeruL s08,:J999
12,000ArrF pErAlr$ c1el -19J5
6 Cld€s 8t 7000 Anps per en6l crz.r,1995 _ :
UL 508. 1999 ald t^tr414
rsoo'rotts at 6gt tu t mliute
per t L:soB '
tL50s-1999
SO,mMedranhalOptrat@srm FullLoad Fltgl9al Tl{ols
AttISlCt2.l Testib26
ANSI/IEEE G62.41-1991 por ANSI ClZl-
2001 Test nlo17
IEC 6{00 Pf4 per AN$ CrZ.l-2001 Tbst
No25
cFR 47 Part15. Subparts*S8 perAilS
c12.1-2001 Tst filoz7
dat8'zm 25. 12q zss
# ,:4Sg,to.
Stetue
fu-ffi
Schedule 1, Page 19 of 19
/lffrrusrtt
Avista Corp.
1411 East Mission P.O. Box3727
Spokane. Washington 99220-0500
Telephone [phone]
TollFree 800-727-9170
Update to the Idaho Public Utilities
Commission Staff on Avista Utilities
Remote Reconn ect/Disconnect Pilot
Case No. AVU-E-07-09
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 1 of 10
Background
In compliance with Idaho Public Utilities Commission Order No. 30603, Avista Utilities
provided a summary study on its Remote Reconnect/Disconnect Pilot Program. The 18 month
pilot began July 30, 2008 and completed January 29,2010. The original report was delivered to
the Commission at the end of April 2010. The Company, at the request of Commission Staff,
provides an update on Avista's current program in Idaho as well as an assessment of the current
state of the industry and other information that is pertinent to the pilot.
Since the end of the pilot project in early 2010, there have been several developments in the
industry related to the service switch. Widespread deployment of AMI (Advance Metering
Infrastructure) has occurred, and in a majority of deployments an integrated service switch has
been installed in the meter. Companies and their customers are seeing the benefits of this aspect
of the technology. Companies are able to reduce truck rolls and the associated costs and provide
better customer service by restoring the customer's power in a timelier manner.
In 2011, Avista deployed approximately 13,500 AMI electric meters and 5,000 natural gas
meters as part of the Smart Grid Demonstration Project (SGDP) in Pullman, Washington. These
meters are equipped with an integrated service switch. Avista began full production use of the
service switch on November 15, 201I and have had very good results to date.
Introduction
It is always the Company's desire to keep customers connected. The need to disconnect non-
paying customers or to avoid a potential safety risk is nothing new for utilities, but the tools of
today allow for more efficient handling of these arrears or unique situations.
The Company believes that the remote relay switch offers a significant opportunity to positively
impact utility operations and add value to customer relationships.
Due to large service areas and long feeders in Avista's service territories, significant windshield
time is required to manually connect/disconnect customers. Today's technology allows real-time
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,2073 Page 2
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 2 ol 10
remote disconnection and reconnection of meters, providing significant cost savings and
reducing the utility's exposure to potentially dangerous situations. Specifically, after the collar
has been installed, an Avista employee would no longer be required to physically visit the
premises to disconnect or reconnect the meter. However, the Company will let the customer
know of the possible disconnection and/or reconnection by following its current notification
process', but without otherwise sending an employee to the premises. After the meter
installation, a special notice that was developed with the assistance of the Commission Staff is
provided to the customer or left on the front door educating customers about the remote device.
Also, a special notice is provided with the mailed past due notice and the final notice reminding
customers they have a remote device.
Both the Two-way Automatic Communications System (TWACS@) and Paging collar devices
continue to be utilized in Company's ldaho service area per the qualifying rules of the original
pilot program.
In regards to the technology deployed in Idaho, the manufacturer of the paging type collar
(Nighthawk) has transitioned to integrating cell phone technology into the collar. Further, they
have worked with Itron to embed a switch with cell phone technology into an Itron meter. The
benefit of cell phone technology is that it provides two-way communication to the collar/meter.
This is a significant improvement in the technology as the one-way nature of the paging type
collar did not provide any confirmation back to dispatchers regarding the state of the switch.
Lack of confirmation caused Avista to incorporate a process to call the customer after initiating a
command to restore power to confirm that the operation was successful. The new technology
provides confirmation (success or failure) regarding the status of the switch so that the
appropriate decision regarding whether or not to dispatch field personnel can be made. The new
technology also provides indication of whether or not the device has appropriate coverage when
field personnel are installing a device. The Company has tested 100 of the new cell phone based
collars in its Washington service area and has been pleased with the overall results of the
program.
' The bill is mailed and due within 15 calendar days, after which the Company allows a 3-day grace period for
payments to post. A Past Due Notice is mailed after the grace period ends, dated 7 calendar days later. The Final
Notice is mailed 3 business days before the past due notice expires. The Interactive Voice Response System (IVR)
then calls the customer on the day the notice expires.
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,20L3 Page 3
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 3 of 10
As the industry continues to evolve, the security associated with these systems continues to be
enhanced. This holds true for the evolution from paging to cell phone based technology. The
new cell phone based collars have enhanced security. To date, Avista has had no incidents
related to security surrounding any of the systems associated with its Remote
Connect/Di sconnect program.
Safety of Avista's employees continues to be a significant benefit of this program. Avista has
adopted a practice in both Idaho and Washington that is supported by management at all levels
whereby a service switch is installed on any customer that is deemed to be a potential safety risk
to our employees. We continue to see an increase in the number of customers that pose a real
threat to our employees. Safety is no laughing matter for the meter readers and service people
tasked with disconnecting power or acting as impromptu bill collectors. Aggressive dogs are
often used to deter utility personnel from doing their jobs. This past year, one of Avista's
servicemen encountered a situation where an angry homeowner threatened to release their dog to
specifically attack him. Others have been threatened physical harm, sometimes with a gun in
hand. Concern for safety is especially important when you consider these "bill collectors" are
unarmed and can be carrying collections on their route. Due to the numerous safety concerns,
two-person crews are typically used, as well as police escort. It should also be noted that the
remote reconnect/disconnect program may also alleviate the emotional aspects of shut offs for
our servicemen.
Customers that are still participating in the program continue to see the benefits of having their
power restored faster, as the data shows further in this report, than those that rely on traditional
visits from field personnel.
Employees continue to request expansion of the program in Idaho. Obviously the remote
operation of reconnects/disconnects saves significant "windshield time" for servicemen which
translates into real dollars. As noted above, for safety, manual disconnect crews can spend
considerable time traveling to and from the residence in question. In addition, a two-person crew
provides for at least one witness in case of any customer disputes. This accrues not only
additional labor costs but vehicle fuel and maintenance costs. For rural communities, service
calls to reconnect customers routinely happen after hours, incurring overtime labor charges. It
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,20L3 Page 4
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 4 ot 10
should also be noted that disconnect activities often take crews away from other responsibilities
that are crucial to the performance of the utility, adding opportunity costs into the equation.
Costs and Avoided Costs
At the time of the original pilot project, the cost of a paging collar was $192 and a TWACS
collar was $130, the current cost for the same collar is $162. The cost of the two-way cell phone
based collar is cunently $267.
For the original pilot, a blended rate of $32.50 was assumed for all calculations regarding labor
savings. Labor rates have increased at3o/o annually, so the current equivalent blended rate would
be $35.43. All other calculations would be increased by the same 3olo annually. Savings are
highly dependent upon the mix of where devices are deployed and the amount of
disconnects/reconnects that are completed after normal business hours. We would expect that
savings would be similar to those experienced during the Pilot. Savings would accrue more
quickly when devices are deployed in rural areas as the costs are higher in these areas due to the
distances traveled and the labor force (line servicemen) that are used for collections work. The
following illustration represents the avoided costs for 20ll and2012.
Illustration No. I - Avoided Costs
2011
nsts Orders
zCI12
Co$s Orders Total
{econnects Normal
.After
$ 28 297 $ 8.316.00
$ 148 5r S 8"436
$ 29 202
$ 152 27
5.825.6ts$ 4.116
$ 14.141.68
s 12"551 .88
499
84
Jisconnects Normal
Affer
$ 28 341 $ 9.548$148 0 5
s29
$ 152
182 $ 5.2490$5ZJ $ 14,196.UU-$
$ 41..t90 44
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,2073 Page 5
Exhibit No. 'l
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 5 of 1 0
Updated Summary of Results
For purposes of this report, Avista has included Residential Rate Schedule 001 information only.
The reason the other rate schedules are not captured in this study is due to very small
participation, their complexity, and the minimal amount of relevant data. An account can have
multiple meters and rate schedules associated to that account; 98o/o of the participants are on
residential rate schedule 001. The following data has been collected as effectively as possible:
Illustration No. 2 - Total number of customers where a device was installed.
Total Number of Disconnect Devices tnstalled bv Tvpe and Month
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,20L3 Page 6
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 6 of 10
Illustration No. 3 - The total number of remote disconnections by
disconnection (e.g., non-payment of bill or failure to pay deposit).
month,and for
l J#i:faE rhr!l t[t]M*'iun ;,lal 'iud !i}a:irottl ,to,'Oet iTio,Ul
2(m
}ROKEN PAYMENTARRANGEMENT
{ON PAYMENT EALANCE t4 18 33
IETURNED CHECK/PAYMENT 2 3 3 8
]ALANCE&DEPOSIT 10 10 20
total 3 27 31 61
2m9
}ROKEN PAYMENT ARRANGEMENT I 7 1
{ON PAYMENTBALANCE a7 59 7a &t u 53 56 51 33 46 47 u 7tl
IETURNED CHECK/PAYMENT 1 1 5 9 I 4 2 1 2 3 2 12
IAtANCE&DEPOSIT 24 t7 31 29 29 27 19 10 17 9 13 7 212
lotal 112 87 115 LZt 95 95 T7 62 52 58 63 4t 974
2010
IROKEN PAYMENT ARRANGEMENT 3 1 1 1 5
{ON PAYMENT BALANCE 42 &47 47 55 50 29 32 36 31 32 E 460
IETURNED CHECK/PAYMENT I 2 3 3 2 2 2 1 1 t7
}ALANCE&DEPOSIT 8 4 10 12 8 5 4 8 8 7 2 7 u
'otal 51 M 62 56 65 58 35 42 4 q v v 557
2011
]ROKEN PAYMENT ARRANGEMENT 1 I 1 3
{ON PAYMENT BALANCE 26 3r 31 29 27 31 ?t 27 19 18 15 19 29tt
IETURN ED CHECK/PAYMENT 1 3 3 7
lALANCE&DEPOSIT 4 8 5 2 2 2 3 2 1 2 31
Total 31 31 39 37 33 33 ?3 31 ZL 19 t7 20 335
mL2
IROKEN PAYMENTARMNGEMENT 1
,lON PAYMENT BALANCE 19 6 13 1 15 15 15 1 1 27 11 !4 t7t
IETURNED CHECK/PAYMENT 4
}ALANCE&DEPOSIT 3
'otal 20 6 14 11 t7 18 t7 L2 11 27 L2 15 180
TOTAT
IROKEN PAYMENT ARRANGEMENT 3 3 1 1 1 I 2 2 t4
\lON PAYMENT BAI-ANCE t74 LM 159 LU L62 160 L22 t2r E)L23 119 110 1,569
IETURNED CHECK/PAYMENT 4 1 8 15 7 8 4 3 2 6 5 5 68
}ALANCE&DEPOSIT 36 2t 50 46 39 35 26 22 27 t7 27 24 370
lotal 214 168 2n 225 211 2U 153 r47 LzA t47 153 L4t 2.Lzt
Illustration No. 4 - The length of time between remote disconnections to remote reconnections.
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,2013 PageT
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2,Page7 oI 10
Illustration No. 5 - Any evidenc€ that installation of the disconnection device influenced
customer behavior (positive or negative).
The information provided in lllustration No. 5 represents the number of times customers kept an
arrangement prior to the remote switch installation verses after the installation of the remote
switch.
For example:o 84 accounts kept their arrangements prior to installation of the device when compared
to after installation;o 165 accounts kept their arangements after installation of the device; and. 94 accounts had no change in payment arrangement behavior.
The number of arrangements made remained steady, only 7 oZ less arrangements were set up
after the device was installed.
The information provided in Illustration 3 on page 7 also shows a decline in the number of
disconnections annually with the customers with the remote device as noted below:
# of Disconnects
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,2073 Page B
Exhibit No. 't
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 8 of 10
Illustration No. 6 - Idaho collection field requests per account over a three year period and how
they continue to increase.
ldaho Collection Field Requests
6000
4000
2000
0
_ ....'.".!?;. .' | :t ;:: t
:qr.., :.,:rl'"all I, ::..r":l liiiiil
:='i+,E:}!,]ll..)r' . r::$ir:il| llh.tiif $"lN\\\NNlll#$:4$ .$M
ffi##r ..: ..- t.:::._:;i: _,..t ".' ' ':,i'tl,i;;:;I irilill[il$.iNIffiMI
2 3 4 5+
r1yr 2701 1376 696 912
I2yrs 4252 2183 1270 2730
tr3yrs 5547 2842 1667 4075
Requests per Account
Illustration No. 6 represents the number of accounts with more than one field request in either a
1,2, or 3 year period of time. For example:
o 2,701 accounts experienced ! collection related field orders for disconnect in a
1 year period of time, 4252 accounts for a2 year period of time and 5547
accounts in a 3 year period of time.
o 912 accounts experienced ! or more collection related field orders for
disconnect in a I year period of time, 2730 accounts for a2 year period of
time and 4075 accounts in a 3 year period of time.
Conclusion
Avista appreciates the opportunity to discuss any outstanding issues or concerns regarding this
pilot. As stated earlier in the summary report, it is always the Company's desire to keep
customers connected. The need to disconnect non-paying customers or to avoid a potential safety
risk is nothing new for utilities, but the tools of today allow for more efficient handling of these
arrears or unique situations.
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8,2013 Page 9
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page I of l0
The Company believes that the remote relay switch offers a significant opportunity to positively
impact utility operations and add value to customer relationships and requests a permanent
waiver of IDAPA 31.21.01 (311.03) and (311.04) [Utility Customer Relation Rules] to
implement a system for remote disconnection and reconnections, without the need for an
employee visit to the affected premises be implemented. The Company also requests that the
criteria for selection of customers be at Avista's discretion based on safety, collection activity
and access to customer property with the exception of Avista CAREs customers. The Company
commits to maintain its current notification process that advises customers that they have a
remote device. Based on the results provided, Avista is hopeful that the Commission and
concerned parties will understand the overall benefits that the service switch brings to Avista's
entire customer base and support the Company's proposed outcomes.
Update on Avista Utilities Remote Reconnect/Disconnect Summary Report
February 8, 2013 Page 10
Exhibit No. 1
Case No. GNR-U-14-01
L. Gervais, Avista
Schedule 2, Page 1 0 of 1 0