Power rate hike plan draws fire from residents
By Larry Meyer
Argus Observer
LarryM@argusobserver.com
Wednesday, September 30, 2009 10:35 AM PDT
ONTARIO — Approving a rate hike by the region’s biggest power company would be a mistake while the county continues to struggle economically.
That was the prevailing sentiment Tuesday night during a hearing of the Oregon Public Utility Commission held at the Ontario Library.
The event attracted a crowd of a half-dozen people who were unanimous in their views regarding the proposed rate boost.
Challenging Idaho Power’s assertion in its literature that Oregon is growing as well as Idaho, Gary Pearson, a rural Malheur County resident, said customers in Malheur County represent less than 5 percent of Idaho Power’s customer base. The customer growth has been in southern Idaho, he said.
“The population in Malheur County has remained stagnant.” Pearson said. “Future growth potential is very conservative.”
For residential customers, Idaho Power’s proposed overall average rate increase is 37.34 percent, and the overall increase proposed for agriculture irrigation service is 44.69 percent.
This is the first general or base rate increase in about five years, and is the portion of rates that include administrative costs, operating and maintenance expenses and capital investments. However, PUC staff acknowledged that there were rate increases allowed within that five years for the company’s actual costs in providing electricity.
“Idaho Power needs to cut costs of providing service,” Roger Findley, a rural county resident, said. “In the last 20 years the Oregon customer base has not grown. “
According to the latest market quotes, the prices for power on the spot market had dropped, Findley said, and that peak demands had plunged.
“We, as customers, should be asking for a rate decrease,” he said. “A rate increase is not supported by the facts.”
Glenn Banner, Ontario, complained that rate increases allowed by the Idaho Public Utility Commission are spilling over into Oregon.
Donald Oakes, Ironside, said the proposed increases in the irrigation charges would put some ranchers out of business. His power costs were already $15,000 to $20,000 per year, he said.
At the start of the hearing, Lisa Hardie, administrative law judge, emphasized Idaho Power had just made, a formal request for the increase and no decision has been made and there was a long way to go in the process.
“We’re getting a lot of comments from the (PUC) Web site,” Hardie said.
Her main job is to receive public comment and make sure it all reaches the commission members.
Carla Owings, a member of the PUC staff, said the role of staff is to investigate the request and documentation.
“We do a rigorous review,” Owings said. That review includes looking at all the documents and asking a lot of questions of the company, she said.
“We look at the Idaho Power system,” she said. That includes how the company allocates costs, she said. Hardie said the deadline for a decision on the rate request was in May. Idaho Power representatives were present to answer questions but did not testify. The number of Idaho Power Oregon customers is 19,303.
