20030513min.doc

MINUTES OF DECISION MEETING
MAY 13, 2003 – 1:30 P.M.

In attendance were Commissioners Paul Kjellander and Dennis Hansen. Commissioner Marsha Smith was absent and excused.

Commissioner Kjellander stated that if there were no objections, he would like to move item 2 to the Consent Agenda and hold item 4 until the next meeting. There were no objections.

The first order of business was approval of the CONSENT AGENDA items 1 and 2. There were no questions or discussion. Commissioner Kjellander made a motion to approve the items. A vote was taken on the motion and it carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Lisa Nordstrom’s May 9, 2003 Decision Memorandum re: In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost Adjustment (PCA) Rate for Electric Service from May 6, 2003 through May 15, 2004, Case No. IPC-E-03-05.

Ms. Nordstrom reviewed her Decision Memo. Commissioner Hansen stated that the Staff, irrigators, and the company raise some issues that need to be addressed by the Commission as soon as possible; however, because of the timing involved, he would be in favor of adopting the rate proposed in the company’s application plus the $48,370.32 agreed to by the company and staff as an interim rate until the other issues can be resolved. He suggested that the interim rate would be in effect subject to any adjustments ordered by the Commission on any of the other issues after the Commission has had a chance to review them.

Commissioner Kjellander stated he thought Commissioner Hansen’s comment would be an appropriate motion. Commissioner Kjellander stated he also needed some clarification regarding time-line issues. He said that if there is an additional amount of money that could go back to reduce ratepayers’ bills, we certainly don’t want this to drag on for an extended period of time. Ms. Nordstrom replied that the rate would be effective on May 16th for the rate decrease everyone agrees on, and then the Commission can schedule a prehearing conference where the parties will get together to frame the issues and determine deadlines and hearing dates.

Commissioner Kjellander said he would like to echo many of the same comments made by Commissioner Hansen . He said we would all like to have a tight package as far as certainty for ratepayers, specifically residential customers who have seen some enormous increases as a result of the increased purchased power costs over the past couple of years, but it is important that we get at least some reduction to ratepayers now.

Bart Kline of Idaho Power asked for clarification. He stated all were in agreement that the $48,000 figure for the missing payment from IE to Idaho Power is an adjustment that needs to be made, but he wanted to make sure that he is clear as to what the Commission wants to do with the figure. He stated that the amount makes a difference of four ten-thousandths of a cent in the rate to the customer. He asked if it would be possible to take the $48,000 and simply put it into the starting balance of the true-up going forward, so it wouldn’t require that the company change the tariffs it has already prepared and submitted for such a relatively small amount of money. He said the Company can make the adjustment if that’s the Commission’s decision, but he wanted to point out it is a relatively small amount.

Commissioner Kjellander replied that we know the money is there, and although it may mean more work for the company, the amount should be included, and even fractions of cents should be put into the rate structure at this time. He noted that the Commission has said to residential customers that if rates go down, we will do our best as a Commission to make sure every penny or fraction of cents that will reduce rates will be put into the rate structure.

Commissioner Hansen concurred and stated that to the customers, it could be interpreted as a large amount, so it should be included.

A vote was taken on the motion and it carried unanimously.

Commissioner Kjellander stated he wanted to thank everyone for moving the PCA forward as quickly as possible in such a tight time line in order to get the reduction in place. He then adjourned the meeting.

DATED this _____ day of May, 2003.

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COMMISSION SECRETARY

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