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Home My WebLink About20040510min.docIDAHO PUBLIC UTILITIES COMMISSION MINUTES OF DECISION MEETING MAY 10, 2004 – 1:30 P.M. In attendance were Commissioners Paul Kjellander and Marsha Smith. Commissioner Dennis Hansen was absent and excused. Commissioner Kjellander called the meeting to order. The first order of business was APPROVAL OF MINUTES FROM PREVIOUS MEETINGS. Commissioner Kjellander made a motion to approve the minutes. A vote was taken on the motion and it carried unanimously. The next order of business was approval of the CONSENT AGENDA, items 2—11. Regarding item 8, Commissioner Smith asked for clarification as to what the Staff was recommending—i.e. would the Commission be voting to grant or deny the motions to take official notice. Mr. Hammond replied that the recommendation was to grant the motions. Regarding item 10, Commissioner Smith asked for clarification on the difference between Qwest Communications Corporation (QCC) and Qwest Corporaton. Joe Cusick replied that Qwest Corporation is the ILEC and QCC is the CLEC operation. He said the certificate will allow Qwest to service Idaho business accounts on a national basis under the umbrella of QCC. Commissioner Kjellander made a motion to approve the Consent Agenda items 2—11 with the correction noted in item 8. A vote was taken on the motion and it carried unanimously. The next order of business was MATTERS IN PROGRESS: John Hammond’s May 6, 2004 Decision Memorandum re: OCMC, Inc.’s Motion to Terminate the Commission’s Investigation Regarding Price List Non-Compliance and the Commission’s Operator Services and Pay Telephone Rule 104.04, Case No. GNR-T-04-4. Mr. Hammond reviewed his Decision Memo. Commissioner Smith stated that it would be best to have an oral argument as soon as possible and she suggested Tuesday, May 18th. A vote was taken on the motion and it carried unanimously. Lisa Nordstrom’s May 7, 2004 Decision Memorandum re: In the Matter of the Application of Intermountain Gas Company for Authority to Increase Its Purchased Gas Cost Adjustment (PGA) Rate, Case No. INT-G-04-02. Ms. Nordstrom reviewed her Decision Memo. Commissioner Smith stated that she remembered last year when gas prices were frequently moving up and down, and she questioned why the Commission has fallen into the tradition of doing this rate change in July. She said we ought to think about moving the PGA closer to the fall, when it makes more sense to do some kind of workshops. Commissioner Kjellander said he was also concerned about the timing and the difficulty in getting the kind of media attention that is warranted as we head into the winter heating season, especially if a decision has been made months earlier. Commissioner Kjellander suggested putting the case out for modified procedure, addressing the workshops after we have sent out the Notice of Modified Procedure. He said he would like his comments to be in the form of a motion. There was no discussion on the motion. A vote was taken and it carried unanimously. Scott Woodbury’s May 7, 2004 Decision Memorandum re: Agreement for Purchase and Sale of Terra Grande; Proposed Rescission of Agreement, Case No. UWI-W-04-2 (United Water). Mr. Woodbury reviewed his Decision Memo. He noted that Staff had just been informed that Ms. Child had signed a Letter of Release for the Mother’s Choice Daycare facility located within Terra Grande, releasing the facility so it can be served by United Water. He said it was the complaint of the daycare facility filed with the Consumer Section that most recently brought the matter to the attention of the Commission. Commissioner Smith stated we ought to look at what the ultimate goal is, which is not to add another regulated water company that is apparently in poor physical condition and is probably economically unviable as a stand alone entity if all the repairs that are needed are done. She cited the comments of United Water in its reply to Staff, which suggested the Commission enter an order that provides financial assurances to the Company and accepts Staff’s recommendation to disapprove the purchase price in the original purchase and sale agreement. She noted the need to coordinate the work with the City of Boise so the water and sewer work could be done at the same time. She asked if Staff had a position on the Company’s suggestions. Mr. Lobb replied that Staff agreed that good service is the ultimate goal, and the only thing Staff was objecting to is the dollar amount of the purchase price and the fact that it would be spread over the general body of ratepayers, if the Commission were to give assurance to the Company that they could recover it. He said what was unclear is how much more money United Water would have to put into the system. He said Staff didn’t want to start paying owners for systems that are really in a bad state of repair. Commissioner Smith asked Mr. Lobb if Staff still had any reservations in regard to giving United Water assurance that the Commission will approve the acquisition. Mr. Lobb stated Staff did not object to that, but it was unclear whether United Water would proceed on that basis, if it isn’t given assurances that it will recover the purchase price. Commissioner Smith noted there will not be a purchase price—just expenses to bring the system into compliance. Mr. Lobb stated that it is his understanding that Mrs. Child will not go forward with the deal without payment of the $47,000 or some purchase amount, so United Water won’t be in a position to do the upgrades if Mrs. Child decides not to sell the system. Commissioner Smith made a motion that the Commission give the Staff notice that it intends to approve Staff’s recommendation and disallow any payment for the system, and encourage Staff, United Water, Mrs. Child and her attorney to have a meeting, knowing that the Commission intends to disallow any payment for the system, to see if some arrangements can be made so Terra Grande can be transferred to United Water expeditiously and facilities can be improved concurrently with the sewer installation. As part of the motion, she asked for a report back to the Commission as soon as possible as to the outcome of the meeting. A vote was taken on the motion and it carried unanimously. There was no further business and Commissioner Kjellander adjourned the meeting. DATED this ______ day of May, 2004 ____________________________________ COMMISSION SECRETARY 3