20030825min.doc

MINUTES OF DECISION MEETING
AUGUST 25, 2003 – 1:30 P.M.

In attendance were Commissioners Paul Kjellander, Dennis Hansen, and Marsha Smith.

Commissioner Kjellander called the meeting to order. The first order of business was approval of the CONSENT AGENDA, items 1—4. There was no discussion. Commissioner Kjellander made a motion to approve the Consent Agenda. A vote was taken and the motion carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Scott Woodbury’s August 7, 2003 Decision Memorandum re: 2003 Electric Integrated Resource Plan (IRP), Case No. AVU-E-03-02 (Avista).

Mr. Woodbury reviewed his Decision Memo. Commissioner Hansen made a motion to accept Avista’s 2003 IRP filing. A vote was taken on the motion and it carried unanimously.

Scott Woodbury’s August 21, 2003 Decision Memorandum re: Continuation of Power Cost Adjustment (PCA) Surcharge, Case No. AVU-E-03-06 (Avista).

Mr. Woodbury reviewed his Decision Memo. Commissioner Hansen stated he was concerned about the PCA adjustment going into its third year and the company projecting even another year into the middle of 2005 before it gets cleared up. He said when Staff is looking at the books it should check to see that the PCA isn’t being used to cover an inadequate rate base. He stated that as far as holding a workshop, he questioned what it would accomplish in this case.

Commissioner Smith concurred with Commissioner Hansen. She stated that the PCA was developed for a specific purpose—to track power supply costs—and if what we have now is really base rates that are out of balance then that is the problem that needs to be addressed, not just the stop-gap measure of accruing costs and continuing the PCA surcharge year after year.

Commissioner Kjellander stated he concurred that if it is something that relates to rate base then we need to deal with it. He said he understands the company is poised to come in with a rate case this year, which may deal with some of the issues. He stated that the other issue still on the table was the simultaneous comment deadline and whether or not we want to conduct workshops. He said he didn’t know if workshops will accomplish a great deal but there is a proposed rule that requires workshops whenever there is a rate increase. He said he thinks it would be a good idea to stick with the spirit of the proposed rule, recognizing that if a workshop is held it will be for informational purposes only.

Commissioner Smith stated that rates won’t be going up but will be maintained at their current level, and she pointed out that the Commission has held one or two workshops already to explain why the surcharge was first put in place and why it was continued another year. She said she doesn’t see the need for workshops but Staff could add an extra 30 minutes or hour to the program they are already doing for the gas case and explain why the surcharge is not going away.

Commissioner Kjellander stated that instead of having formal workshops it could be incorporated as part of an energy discussion to inform customers what is happening with the surcharge. Commissioner Kjellander made a motion not to establish formal workshops in light of the fact that we have had two workshops in the past and instead include an informational section in the workshops already being conducted in the Avista natural gas case. He included in the motion approval of Staff’s recommendation for a simultaneous comment deadline. He stated the other issues raised by Commissioners Hansen and Smith could be dealt with down the road. There was no further discussion. A vote was taken on the motion and it carried unanimously.

Scott Woodbury’s August 19, 2003 Decision Memorandum re: Electric Service Schedule No. 70—New Wind, Geothermal and Solar Power Rider—Optional, Case No. PAC-E-03-09 (PacifiCorp).

Mr. Woodbury reviewed his Decision Memo. Commissioner Hansen stated he was concerned that the administrative and marketing costs continue to be the majority of the price premium. He said if he were going to be a participant in the program in southeast Idaho that would bother him because looking at PacifiCorp’s projected participation over four years for such a few customers—only 400 or so customers out of 59,000—spending that kind of money seems like a waste. He said knowing that the non-participating customers don’t have to pay any of that expense, he can probably hold his nose and support it, although he thinks it is wrong that the company is putting so much money into the program to attract so few customers. He said he thinks the company could easily bring the cost down to make it more attractive.

Commissioner Kjellander moved for approval of the program as proposed stating that he agreed with Commissioner Hansen. He stated he was reminded that last time the company brought its proposal in the Commission rejected it and told the company to come back with something else because it was too top heavy on the administrative and marketing side. He said he didn’t mean to chastise the company but he was wondering why it took the company so long to come back with another proposal, and he would have liked to see them come back in sooner so instead we could now be reviewing the first year of the program to see whether or not some of our concerns and fears about the administrative costs related to the number of participants was a valid argument. A vote was taken on the motion, with Commissioner Smith casting a dissenting vote. She explained that she thought the proposal was so pathetic that someone ought to vote “no.”

Scott Woodbury’s August 20, 2003 Decision Memorandum re: Sale—Purchase of Water Utility, Case No. BIT-W-03-01.

Mr. Woodbury reviewed his Decision Memo. There was no discussion. Commissioner Kjellander moved for approval with Staff’s recommendations. A vote was taken on the motion and it carried unanimously.

The only other items on the agenda were under FULLY SUBMITTED MATTERS and Commissioner Kjellander stated they would be deliberated privately. He then adjourned the meeting.

DATED this _____ day of August, 2003.

_______________________________________
COMMISSION SECRETARY

1