Agenda Date: April 25, 2001
Item Number:  2B

Docket: UE-010530
Company: PacifiCorp d/b/a Pacific Power & Light

Staff:  Mike Parvinen, Policy Research Specialist
  Joelle Steward, Policy Research Specialist

Recommendation:

Issue an order granting the filing by Pacific Power & Light in Docket UE-010530 
to become effective May 1, 2001, on Less Than Statutory Notice (LSN).  Direct 
the Company to provide the results of the program not later then 60 days after 
the completion date of the program providing at a minimum the following items:
 1. Number of customers achieving the threshold by month.
 2. Percentage of total customers achieving the threshold.
 3. Total volumes and dollars credited to customers by month.
 4. Total volumes saved from previous years bills by month.

Discussion:

On April 17, 2001, Pacific Power & Light (Company) filed a new tariff 
implementing a residential energy buy-back program which the Company calls its 
20/20 Customer Challenge Program.  The Company has requested that the 
Commission approve this filing on LSN in order to become effective May 1, 
2001.  The tariff has a stated effective date of June 1, 2001.  The reason for 
the request for approval on LSN is to give the Company adequate time for 
customer communication and system implementation.

The program offers customers the opportunity to receive a 20% credit on their 
remaining bill if they reduce their usage by at least 20% over their usage from 
the corresponding month one year ago.  The program is voluntary and only 
available to residential customers for bills rendered during the months of 
June, July, August, and September 2001.

Staff has a concern that the 20% threshold may be set so high that customers 
cannot achieve it.  The customers would still see bill reductions by simply 
using less energy but participation could drastically reduce if the credit 
threshold is not achieved in the first couple of months.

Summary:

Staff has reviewed the filing and since it is a voluntary program, has a 
limited effective period, and is a pilot program, agrees the program should be 
given the opportunity to succeed or at least be used as a means to gain 
information on the design of a program that would achieve the maximum 
effectiveness.

Conclusion:

Staff recommends that the Commission issue an order granting the filing in 
Docket
UE-010530 to become effective May 1, 2001, on Less Than Statutory Notice.  
Direct the Company to provide the results of the program not later then 60 days 
after the completion date of the program providing at a minimum the following 
items:
 1. Number of customers achieving the threshold by month.
 2. Percentage of total customers achieving the threshold.
 3. Total volumes and dollars credited to customers by month.
 4. Total volumes saved from previous years bills by month.