20031007min.doc

MINUTES OF DECISION MEETING
OCTOBER 7, 2003 – 1:30 P.M.

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

Commissioner Kjellander called the meeting to order. The first order of business was approval of the CONSENT AGENDA, items 1—3. There was no discussion. Commissioner Kjellander made a motion to approve items 1-3. A vote was taken on the motion and it carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Don Howell’s October 3, 2003 Decision Memorandum re: Idaho Power’s Application for a Certificate of Public Convenience and Necessity for Authority to Build the New Bennett Mountain Power Plant in Mountain Home, Case No. IPC-E-03-12.

Mr. Howell reviewed his Decision Memo. Commissioner Smith stated she had no objection to issuing a Notice of Application or scheduling a prehearing conference, but she had serious concerns about scheduling a prehearing conference on October 15th, only a week away. She said she was concerned whether such short notice would provide adequate time for potential intervenors to actually hear about the application, determine if they have an interest and organize themselves to participate meaningfully in a prehearing conference. She said that if the company has determined it needs this resource then it had better go forward and not wait around for the Commission’s preapproval to give it further assurance of how it will be treated later on. She said the PUC ought to process the application as fast as it can while accommodating the needs of all people who have an interest in the proceeding. Mr. Howell replied that normally the Commission’s rules require 14-day notice for a prehearing conference unless there are extenuating circumstances. He said Staff was trying to accommodate the expedited nature of the proceeding.

Commissioner Kjellander suggested that Staff pick a date for the prehearing conference closer to the 20th in order to give more notice for potential intervenors. He said he agreed with Commissioner Smith’s point that we have been hearing for some time through the IRP process that there is a need for a plant of this size so the Company should by all means move forward. He made a motion to issue a Notice of Application and establish dates for intervention and a prehearing conference closer to October 20th, depending upon the Commission’s calendar. A vote was taken on the motion and it carried unanimously.

Discussion re: Avista PCA Surcharge—Scheduled October 11, 2003 PCA Surcharge Expiration; Proposed Continuation of 19.4% ($23.36 million) Surcharge Pending Receipt of Company Reply to Staff Comments, Final Deliberation and Order. Case No. AVU-E-03-06 (Avista). (No Memo.)

Scott Woodbury stated that Avista has requested approval of its Schedule 66 PCA balancing account deferrals and continuation of an existing 19.4% or $23.6 million PCA surcharge. He said without Commission action the existing surcharge approved last year will expire on October 11th. He stated the case has been processed pursuant to modified procedure with a comment deadline of September 30th. He stated that in its comments Staff had recommended a Coyote Springs-related $5.8 million adjustment in net fuel expense for natural gas that was purchased and not burned. He said Staff recommends continuation of the 19.4% surcharge. He said Avista had contacted Staff and intends to file a written reply by mid-week, and in its filing will make a procedural recommendation regarding Staff’s proposed adjustment to bridge the gap between this Decision Meeting and the time the Commission can take the matter up again. He said both Staff and Company recommend that the surcharge be continued pending Commission deliberation and final order.

Commissioner Smith made a motion to extend the surcharge for a period of 60 days or until such time as the Commission has the opportunity to consider and issue an Order. There was no further discussion. A vote was taken on the motion and it carried unanimously.

There was no further business before the Commission and Commissioner Kjellander adjourned the meeting.

DATED this ______ day of October, 2003.

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COMMISSION SECRETARY

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