20050721_1274.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:JULY 19,2005
RE:PETITION OF IDAHO POWER COMP ANY FOR AN ORDER
PROVIDING A LIMITED WAIVER OF UTILITY CUSTOMER
RELATIONS RULE 201.03 AS IT IS APPLIED TO TIME-VARIANT
PRICING SERVICE. CASE NO. IPC-05-19.
On June 2, 2005 , Idaho Power Company filed a Petition with the Commission
requesting an Order providing Idaho Power with a limited waiver of Utility Customer Relations
Rule 201.03 as it applies to the time-variant pricing. Rule 201.03 requires that beginning and
ending meter readings appear on customer s billings. On June 20, 2005 , the Commission issued
a Notice of Application and Modified Procedure. See Order No. 29807. No comments were
received other than those submitted by Commission Staff.
THE PETITION
Idaho Power has three optional tariff rates or schedules that involve time-variant
prICIng. Schedule 19 is available to large commercial customers with metered demand of 1 000
kW or more per billing period; and Schedules 4 and 5 are voluntary pilot programs available to
residential customers in the Emmett Valley until April 1 , 2006.
In order to implement the time-variant pricing associated with Schedules 4, 5 , and 19
Idaho Power uses a meter data translation system (MDTS) provided by a third-party vendor. The
Company s MDTS system and billing system do not integrate in a way that allows the beginning
and ending meter readings to be displayed on customers' bills. According to the Company, it
would be costly and time-consuming to modify the two systems in order to print the beginning
and ending meter readings on the monthly bills of those customers participating in the time-
variant pricing options offered by Idaho Power.
DECISION MEMORANDUM
ST AFF COMMENTS
Staff supports the Petition but recommends that the Commission approve the Petition
for a limited time. Staff understands that, even though the beginning and ending meter data will
not be printed on the customers' bills as required pursuant to Rule 201.03 , this information can
be made available from the third-party vendor of the data translation system should a dispute or
question arise. In addition, Staff notes that the two residential pilot programs are of limited
duration and are only available to a limited number of customers. Currently, these pilots have a
total of 1 72 enrolled customers.
Staff recommends that the Commission allow a waIver of Rule 201.03 until
December 31 , 2006. This should provide the Company with adequate time to evaluate its
experience with time-variant pricing programs and determine whether it can comply with Rule
201.03 in the future. Should the Company desire to extend the waiver period or seek a
permanent waiver, Staff recommends that it do so on or before year-end 2006.
COMMISSION DECISION
Does the Commission want to grant Idaho Power Company s Petition for an Order
providing a limited waiver of Utility Customer Relations Rule 201.03 as applied to time-variant
pricing service?
Does the Commission wish to make this waiver expire on December 31 , 2006?
M:IPCEO519 _kdp2
DECISION MEMORANDUM