20050712min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

JULY 12, 2005 – 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 MINUTES of the Decision Meeting on June 28th, 2005. 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 - 19. Regarding item 5, Commissioner Smith asked for clarification regarding Staff’s recommendation for Commission action. There was no further discussion and 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:

Discussion re: Stipulation and Proposed Settlement, Case No. PAC-E-05-1. [No memo. Scott Woodbury, Attorney]

Scott Woodbury reviewed the rate case and the resulting Stipulation and Proposed Settlement filed with the Commission on June 13, 2005. He stated all parties of record with the exception of Monsanto are parties to the Stipulation. He said Monsanto objects to paragraph nine of the Stipulation, a provision that addresses special contract customers and whether they should be served under a contract standard or a tariff standard. He said pursuant to the terms of the Stipulation, PacifiCorp would receive a $5.75 million (4.8%) increase in base rates. Taking into account an expiring tariff Schedule 93 power cost tax surcharge, the resulting increase for each customer class will be a uniform 1.7% rate increase above current rates. He noted that additional provisions of the Stipulation address specific company, irrigator, and low-income customer concerns. He reviewed the schedule for filing comments and testimony regarding the Stipulation and Proposed Settlement.

Commissioner Smith opened the discussion. She said now that the Commission has had the opportunity to read the testimony filed regarding the proposed settlement, it was time to decide whether or not to continue with the scheduled hearings or if there was some other approach the Commission would like to take.

Commissioner Hansen stated that in reviewing the Stipulation and Proposed Settlement, he agreed that it is in the public interest to accept it because most of the terms and conditions seem fair and reasonable, with the exception of paragraph nine. He said this case does not present the time or place to consider eliminating special contracts or establishing new industrial tariffs, and those issues should be discussed in a future proceeding, giving all parties a chance to participate. He said he could support the Settlement if paragraph nine is deleted.

Commissioner Kjellander stated that in considering the Stipulation and Proposed Settlement in comparison to other rate cases before the Commission in the last year, it looks fair, just and reasonable and is a good outcome. He said with the exception of paragraph nine as outlined by Commissioner Hansen, it makes sense to move forward without further process.

Commissioner Smith made a motion to cancel the hearings, including the public hearings, send out a Notice as allowed by Rule 276, stating we will accept the Settlement if paragraph nine is removed, and give the parties the 21 days allowed in the rules to either accept or reject the Commission’s conditions of the Settlement. 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 July, 2005.

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COMMISSION SECRETARY

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