20040830min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

August 30, 2004 – 1:30 P.M.

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

Commissioner Kjellander called the meeting to order. The first order of business was APPROVAL OF MINUTES FROM PREVIOUS MEETINGS on July 19th and July 28th, 2004. Commissioner Kjellander made a motion to approve the minutes. A vote was taken on the motion and it carried unanimously.

The second order of business was approval of the CONSENT AGENDA, items 2—12. There were no questions or comments. Commissioner Kjellander made a motion to approve the Consent Agenda. A vote was taken on the motion and it carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Doug Cooley’s August 25, 2004 Decision Memorandum re: Staff Review of Interconnection Agreements, Case Nos. QWE-T-02-22 and VZN-T-04-09.

Mr. Cooley reviewed his Decision Memo. Commissioner Kjellander asked if Staff anticipated receiving any comments and if there would be anything detrimental to the companies if the Commission decides to establish a comment period. Mr. Cooley replied that it is possible that some comments will be filed, based on discussions with Qwest and AT&T, and he couldn’t see any downside to allowing due process and the comment period, especially because the amendment addresses many of the things in the Master Service Agreement. Commissioner Smith confirmed that Staff is recommending approval of the amendments that have been filed, and then separately recommending a comment period on the Master Service Agreement. Commissioner Kjellander made a motion to approve Staff’s recommendations for item 13. A vote was taken and the motion carried unanimously.

Scott Woodbury’s August 16, 2004 Decision Memorandum re: Electric Service Agreement, J.R. Simplot Company (Pocatello), Case No. IPC-E-04-17 (Idaho Power).

Mr. Woodbury reviewed his Decision Memo. Commissioner Hansen stated that he thought the agreement is acceptable and in the public interest. He made a motion to accept Staff’s recommendation. A vote was taken on the motion and it carried unanimously.

Scott Woodbury’s August 25, 2004 Decision Memorandum re: Firm Energy Sales Agreement, J.R. Simplot Company (Pocatello), Case No. IPC-E-04-16 (Idaho Power).

Mr. Woodbury reviewed his Decision Memo. Commissioner Smith noted that nothing has changed in regard to environmental attributes since the Commission issued its last order dealing with this issue. She stated that in Idaho there is no such program to address the issue of environmental attributes and no jurisdiction has been given to the Commission, but the parties are free to address the ownership of the environmental attributes in their contracts. She noted that the Federal Energy Regulatory Commission has also encouraged this approach. She made a motion to approve the contract rates that are proposed, to find Simplot qualifies for published avoided cost rates, to approve those rates with the two extension agreements, and to encourage Idaho Power to diligently manage its contract portfolio and expiring contracts. There was no further discussion. A vote was taken on the motion and it carried unanimously.

Scott Woodbury’s August 25, 2004 Decision Memorandum re: Potlatch Discovery Request—Motion to Compel, Case Nos. AVU-E-04-1/AVU-G-04-1 (Avista).

Mr. Woodbury reviewed his Decision Memo. Commissioner Kjellander stated that having read Avista’s response in terms of the appropriate time and place for an inquiry, he agreed with Avista that there will be a time and place for these types of questions, but this doesn’t appear to be that time and place. Commissioner Hansen concurred and said he also agreed with Avista’s argument. Commissioner Kjellander made a motion to deny Potlatch Corporation’s Motion to Compel. A vote was taken on the motion and it carried unanimously.

The final order of business before the Commission was consideration of items 17 and 18 under FULLY SUBMITTED MATTERS, and Commissioner Kjellander stated that the Commission would deliberate on those items privately. He then adjourned the meeting.

DATED this ______ day of August, 2004.

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COMMISSION SECRETARY

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