20060524min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

May 24, 2006 – 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 May 4th and May 15th, 2006. Commissioner Kjellander moved 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 - 10. Regarding item 8, Commissioner Smith asked about the limited time arrangement to purchase the phones for $99 and if that price is only for the first 100 people or if it will also apply to those who may be added later. Staff member Grace Seaman responded that the rate of $99 will be guaranteed at the minimum for the 90-day trial period, and after that Hamilton will determine at what rate it will sell the phones, but Staff suspects the $99 price could be continued for a longer period of time. Commissioner Smith asked if there is a possibility 100 people will sign up right away. Mr. Robert Dunbar, TRS administrator, replied that he would be surprised if 100 people signed up initially.

Commissioner Hansen asked that the record show he is in favor of all Consent Agenda items except for item 9.

There was no further discussion. 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:

Cecelia Gassner’s May 11, 2006 Decision Memorandum re: In the Matter of the Investigation to Determine Whether It Is Reasonable for Frontier Communications of Idaho to Provide Telecommunications Service to Customers Located in the Tamarack Resort, Case No. CTC-T-05-02.

Ms. Gassner reviewed her Decision Memo. Commissioner Hansen commented that Staff did a very good job on this case and he agreed with Staff’s recommendation to close the case. He made a motion to accept Staff’s recommendation. Commissioner Kjellander concurred with the motion. He asked about cell phone service in the area and if Staff was aware of any enhancements in regard to new cell tower locations that might improve service or provide some form of alternative. Staff member Carolee Hall responded that Verizon added a tower that provides a strong signal at the resort area, which provides another phone option for people at the resort. Commissioner Kjellander asked if Staff was aware of any other options, and Ms. Hall replied that she was not. There was no further discussion. A vote was taken on the motion and it carried unanimously.

Don Howell’s May 11, 2006 Decision Memorandum re: BNSF Railway’s Abandonment in Coeur d’Alene, Case No. BNR-R-06-01.

Mr. Howell reviewed his Decision Memo. Commissioner Hansen commented that it looked like the only purpose for having a hearing is to comply with the code, and so it seemed the hearing should be in Boise with the option of using a telephone link. He said it seemed like a waste of money to hold a hearing in Coeur d’Alene when there is a high probability no one will show up. Commissioner Smith agreed that the hearing should be held in Boise. She noted there were a couple of comments received in this case and she asked if anyone had investigated them. Don Howell, Deputy Attorney General, replied there were two comments from rail companies expressing interest in acquiring this right-of-way and developing traffic, but given the evidence Staff uncovered it would be hard to do because the tracks are no longer there. He said there were no intervenors and there is little likelihood the STD will allow these entities to make financial offers on tracks that don’t even exist. Commissioner Smith asked Staff to make sure the commenters receive a copy of the notice. She made a motion to schedule a public hearing in Boise after the Commission has received the railroad’s environmental report, with a phone bridge to be provided to any interested party who may want to participate in the hearing. A vote was taken on the motion and it carried unanimously.

Donovan Walker’s May 22, 2006 Decision Memorandum re: United Water’s General Rate Case—Procedure Regarding Stipulation, Case No. UWI-W-06-02.

Commissioner Kjellander asked if there were any questions or comments from members of the Commission regarding the proposed schedule. There was no discussion and Commissioner Kjellander moved for approval of Staff’s recommendation for processing the Stipulation. A vote was taken on the motion and it carried unanimously.

The final order of business was FULLY SUBMITTED MATTERS:

Deliberation re: Idaho Power Company’s Application for Approval of an Energy Sales Agreement with Co-Gen Co. LLC, Case No. IPC-E-06-2. [No Memo, Cecelia Gassner, Attorney.]

Commissioner Kjellander stated this item would be deliberated privately.

Deliberation re: Idaho Power Company’s Application to Decrease the Annual PCA Rates from June 1, 2006 to May 31, 2007, Case No. IPC-E-06-07. [No Memo, Don Howell, Attorney.]

Mr. Howell gave the Commission an update on the case. He said the Commission processed the case by modified procedure and in response received comments from Commission Staff and AARP. He stated the Staff had examined the issues regarding the PCA and had re-checked the Company’s calculations, concurring that the PCA rate credit should be 0.3689 cents per kW hour. He said AARP’s comment urged the Commission to approve the PCA rate request. Commissioner Smith commented that it had been a long time coming and we are happy to have the water this year, and she was grateful to be able to move for approval of the PCA as filed by the Company. Commissioner Kjellander agreed that it had been a long time since we have had a normal water year giving the Commission the ability to lower power rates. He cautioned that no one should put together a long-term business plan based on the PCA rates resulting from this order. Commissioner Hansen added he was glad Mother Nature finally got the message to send some water out here. Commissioner Smith added that although there might have been some years when there was some doubt about the wisdom of the PCA, this year shows it is extremely valuable to share the benefits of the water with the customers in a timely manner, and it is also beneficial to the Company to know that in times of drought, it will be kept financially whole with regard to its power supply costs. She stated it is a balanced and reasonable system that is working well. There was no further discussion. A vote was taken on the motion to approve the PCA rate and it carried unanimously.

There was no further business before the Commission and Commissioner Kjellander adjourned the meeting.

DATED this _____ day of May, 2006.

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COMMISSION SECRETARY

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