20050912min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

SEPTEMBER 12, 2005 – 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 August 29th and September 6, 2005. 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 – 7. There was no 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:

Don Howell’s September 8, 2005 Decision Memorandum re: Eagle Water’s Application for a Temporary Surcharge, Case No. EAG-W-05-02.

Mr. Howell reviewed his Decision Memo. Commissioner Hansen suggested that it might be better to hold a public workshop rather than a hearing so the public has a chance to ask questions and explore alternatives before filing comments. Commissioner Smith agreed and said it would be most helpful to hold the workshop before comments are due so the options could be explained. She said she didn’t object to holding a public hearing in addition to a workshop but it should be preceded by some kind of educational process. Commissioner Smith made a motion to put the application of Eagle Water out for comments under modified procedure, instruct the staff to schedule a public workshop for the purpose of educating the public about the different alternatives, establish a comment deadline for October 14th, and decide later whether to conduct either a formal public hearing or a formal evidentiary hearing. There was no further discussion. A vote was taken on the motion and it carried unanimously. Mr. Howell asked if the Commission also wished to suspend the proposed effective date and close Case No. EAG-W-05-01. Commissioner Smith so moved. A vote was taken and it carried unanimously.

Don Howell’s September 9, 2005 Decision Memorandum re: Scheduling of the PacifiCorp-MidAmerican Merger Case, Case No. PAC-E-05-08.

Mr. Howell reviewed his Decision Memo. Commissioner Kjellander asked if the approval process at the state level can move forward before the federal approval process has been completed. Mr. Howell replied that federal review is happening simultaneously and due to the repeal of PUCHA the SEC portion of the review is no longer required. He said this proceeding is for the Commission to examine whether the merger meets the three-part test set out in 61-328, which includes the public interest consideration, the financial viability of MidAmerican to provide services, and if the merger will cause rates to increase.

Commissioner Hansen asked what the Commission hopes to accomplish by having the workshops in the service territory so early in the proposed schedule. Mr. Howell replied that under Rule 125, there is no requirement to have a public workshop because the case does not involve a rate increase, but the staff thought it might be a good idea. He said it is entirely within the Commission’s discretion whether or not to hold the workshops. Commissioner Hansen also commented that he thought it would be more productive to hold the public hearing after the technical hearing because there is more information available to the public at that point.

Commissioner Smith agreed but noted that the schedule was tight and she didn’t want the Commission’s time for deliberations to be squeezed any tighter. Mr. Howell suggested that perhaps the dates for the public hearings and evidentiary hearing could simply be switched, keeping the same time frame.

Commissioner Kjellander concurred that the public hearings should be held following the evidentiary hearing. He said other details such as locations for the public workshops and hearings could be worked out later. He made a motion to adopt staff’s proposed schedule with the switch in workshop and hearing dates, grant the interventions requested, and approve the use of electronic mail. He noted that new technology recently installed by the Commission could also be used to make some of the testimony from the technical hearing readily available on the Web, which might help out with the compressed schedule and provide more information for the public.

Regarding the proposed schedule and the date proposed for issuance of the final order, Commissioner Smith noted that February 28th is not a statutory deadline. Commissioner Kjellander amended the motion to eliminate a date certain for issuance of the Commission’s order. There was no further discussion. A vote was taken on the motion and it carried unanimously.

Commissioner Kjellander stated that the only other item on the agenda was under FULLY SUBMITTED MATTERS and the Commission would deliberate on it privately. He then adjourned the meeting.

DATED this ______ day of September, 2005.

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COMMISSION SECRETARY

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