20080313min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

March 13, 2008 – 1:30 P.M.

In attendance were Commissioners Mack Redford and Marsha Smith. Commissioner Jim Kempton was absent and excused.

Commissioner Redford called the meeting to order. The first order of business was approval of MINUTES FROM PREVIOUS MEETING on February 26, 2008. The minutes were approved by vote.

The second order of business was approval of the CONSENT AGENDA. Commissioner Redford stated that items 4 and 5 on the Consent Agenda would be considered separately. He made a motion to approve items 2, 3, 6, 7, 8, and 9. There was no discussion and the specified items were approved by vote.

4. Don Howell’s March 11, 2008 Decision Memorandum re: Idaho Power’s Application to Rate Base the New Danskin CT1 Power Plant and to Increase Base Rates, Case No. IPC-E-08-01.

Regarding item 4, Commissioner Redford asked why this item was on the Consent Agenda and if it was normal practice. Mr. Howell replied that both the Staff and company had suggested that the case be processed by modified procedure. He said the only hesitancy the staff had with modified procedure was indicated on page 5 of the Decision Memorandum and had to do with processing the case by the requested effective date of June 1, 2008. More specifically, he cited the complexity of the accounting issues, existing staff assignments and the scheduling of Decision Meetings in May. He said that although Staff believed the case could be handled on modified procedure, it was not in a position to know whether to start with an extended comment period now or to bring it back to the Commission at a later date to set a comment period after performing initial discovery. Mr. Howell explained that the matter was on the Consent Agenda because of the procedural issues, and at a minimum, our rules require the Commission to issue a Notice of Application within 21 days, so what needed to be decided at the moment was whether to issue the Notice of Application.

Commissioner Smith suggested that in the interest of economy and knowing it is better not to send two notices when one will do, the Commission could issue the Notice of Application and Notice of Modified Procedure to start the comment cycle.

Commissioner Redford commented that the issue he sees, not withstanding that Idaho Power and Staff have requested the case be processed by modified procedure, is that it is still a rate case and he was hesitant to handle it by modified procedure, especially when it appears we don’t have all the costs, the plant is not providing power, and there are extra costs. He suggested that if it turns out a hearing is not needed, then the Commission could then use modified procedure.

Commissioner Smith stated she was part of the earlier process that led to the Commission’s initial approval of the Company’s request for a CPCN to build the plant, and she was comfortable using modified procedure, knowing that if the comments come back negative, if there are unanswered questions or the accounting issues turn out to be more complex, then the Commission can always switch from modified procedure to a full hearing.

Commissioner Redford agreed there was an approval to build the plant and it was to be built on the basis of a “not to exceed” price. He said he was hesitant to proceed on the basis of modified procedure, not knowing if staff has all the information to audit the total costs to make sure it comes within the “not to exceed” price. He said he could agree to use modified procedure, however, with the understanding that at some point, the Commission could roll this into a full hearing.

Don Howell stated that Commissioner Redford had hit upon one of the issues (estimated costs) Staff intends to delve into with a little more vigor and detail. He said he was hopeful that Staff will be able to garner at least three more months of actual data.

Commissioner Redford asked Mr. Howell if Idaho Power had made a representation to Staff as to whether or not three months would be sufficient time for them to get the total costs. Mr. Howell replied that the company’s application and prefiled testimony indicate there will actually be some costs that will not be booked until the end of June, but clearly one of the things Staff could advocate is that the Commission rely on actual numbers. For data that the Staff is unable to audit, then the Staff could recommend that such estimated costs be disallowed, and then the Commission will have an opportunity to rule on that issue.

Commissioner Redford said he would agree with Commissioner Smith to use modified procedure and establish an extended comment period.

5. Don Howell’s March 11, 2008 Decision Memorandum re: Stipulation to Adopt Commitments in Idaho Power’s Code of Conduct Case, Case No. IPC-E-01-08.

Commissioner Redford said he had some difficulties with the Stipulation and the use of the word “reasonable” as it applies to the Commission and Staff’s right to inspect books and examine employees. Mr. Howell replied that 61-610 does provide that the Commission’s access and employees’ access to books and records occur at all reasonable times, so in his mind, the use of the word “reasonable” is not contrary but in fact in compliance with the rigors of the statute. Commissioner Smith pointed out it just applies to the books of the utilities, and not IdaCorp, which is a holding company. Mr. Howell said these commitments are very similar to those the Commission has already approved regarding PacifiCorp’s holding company, Mid-America.

Commissioner Redford said the Stipulation provides that IdaCorp and Idaho Power will provide the Commission reasonable access to all books, and that phrase could be interpreted as reasonable time or that the request is not reasonable, and therefore access could be denied, which is not in keeping with the statute. He said it seemed to him it should say something to the extent that we are entitled to access to the books at all reasonable times. He said maybe the intention of Staff, Idaho Power and IdaCorp was to talk about reasonable times but it doesn’t say that.

Commissioner Smith asked if the matter had any time sensitivity or if the item could be held until there was a full Commission to consider it further.

Mr. Howell replied that postponing the decision was not a problem and he suggested the matter could be considered under Fully Submitted Matters at a later date. He stated he initially placed it on the Consent Agenda because all parties are in agreement.

Commissioner Redford asked that Staff and Idaho Power take his comments under consideration. Mr. Howell stated he would definitely do that and consult with the company.

Commissioner Smith confirmed that the remaining Consent Agenda items 10 and 11 were also included in the original vote to approve the Consent Agenda.

There were no other items on the agenda and Commissioner Redford adjourned the meeting.

DATED this ______ day of March, 2008.

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COMMISSION SECRETARY

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