20040105min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

JANUARY 5, 2004 – 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 and 2. There were no questions or comments. Commissioner Kjellander made a motion to approve the Consent Agenda items. A vote was taken and the motion carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Dave Schunke’s December 19, 2003 Decision Memorandum re: Idaho 2003 Irrigation Load Control Credit Rider Program Compliance Filing—Evaluation Reports; Proposed Changes to Schedule 72 Program, Case No. PAC-E-03-14.

Scott Woodbury reviewed the Decision Memo. Commissioner Hansen stated he was concerned about why only 10% of the irrigators participated in the program last year. Eric Olsen, legal counsel for the Idaho Irrigation Pumpers Association, was present via teleconference and responded that the reason for the low participation was due to several factors, including the amount of the credit and timing as far as getting the information out so irrigators could make their decisions. Commissioner Hansen asked if he thought more irrigators would participate this year. Mr. Olsen responded that he thought there will be about the same number of participants this year. Commissioner Hansen asked if the program benefits a certain class of irrigation customers, such as the larger customers, or if the benefits are spread equally to all of the users. Mr. Olsen replied that the credits are focused on the demand factor paid by the irrigators each month, which means that the larger customers would be more likely to participate. Commissioner Hansen then asked if the BPA credit, which has been a tremendous benefit to the irrigation customer, has an effect on the participation—i.e. if the credit weren’t there, would more people participate in the program. Mr. Olsen stated that if the credit goes away, there will be significantly more interest in trying to keep the rates down.

There was no further discussion. Commissioner Hansen stated we seem to be headed in the right direction with this program, and by analyzing the data this coming year, there is the possibility of making the program even more effective for both the company and customer. He made a motion to approve Staff’s recommendations for the program. A vote was taken on the motion and it carried unanimously.

Commissioner Kjellander commented that he appreciated the fact the filing was made in January rather than closer to the irrigation season. Commissioner Smith asked Bob Lively of PacifiCorp, who was also participating via teleconference, if the company will give irrigators the opportunity to review the agreements in advance of them being sent out. Mr. Lively replied that the company will be happy to provide the agreements ahead of time as soon as they are available.

There were no further items on the agenda and Commissioner Kjellander adjourned the meeting.

DATED this _____ day of January, 2004.

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COMMISSION SECRETARY