20041213min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

DECEMBER 13, 2004 – 1:30 P.M.

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

Commissioner Kjellander called the meeting to order. The first order of business was approval of the CONSENT AGENDA, items 1—4. Regarding item 2, Commissioner Kjellander asked staff about the change in the length of the comment deadline. Don Howell replied that staff had initially recommended a 60-day comment period and a 14-day reply period for Idaho Power, but after further discussions with the company, staff decided to ask for a 30-day comment period followed by a 7-day reply period. He said both staff and company are in agreement. There were no other 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:

Don Howell’s December 8, 2004 Decision Memorandum re: Union Pacific’s Intent to Abandon and Sell a Portion of the Dry Valley Line, Case No. UPR-R-04-2.

Mr. Howell reviewed his Decision Memo. Commissioner Hansen asked about the requirements of Idaho Code regarding abandonment cases where it states the PUC “shall have a hearing.” Mr. Howell replied that the statute requires a public hearing but the PUC’s own regulations allow for modified procedure in place of a formal public hearing, so it is still a public process but it is handled through written comment rather than a formal public appearance process. Commissioner Hansen asked if modified procedure could be used in all abandonment cases. Mr. Howell stated that in some instances we don’t know exactly why a railroad wants to abandon the track, but in the case at hand, we know the reason and both the seller and buyer are in agreement, so it is a mere technicality that they have to go through the Surface Transportation Board’s abandonment process. He stated that in a recent similar case, there were some uncertainties regarding the protections afforded the shipper, but given the facts of this case, staff is suggesting an alternative procedure. He said normally, he would recommend holding a public hearing.

Commissioner Kjellander suggested that the Commission conduct a public hearing but do it via telephone to fulfill the statute requirements. He stated that because statute says “shall” he considers it mandate language, and he would not want to intentionally ignore it. Commissioner Hansen confirmed that the hearing would be held in Boise. Commissioner Kjellander made a motion to conduct the public hearing via telephone from Boise as soon as possible and move forward with the process. There was no further discussion. A vote was taken on the motion and it carried unanimously.

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

DATED this ______ day of December, 2004.

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COMMISSION SECRETARY