20080902min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

September 2, 2008 – 1:30 P.M.

In attendance were Commissioners Mack Redford, Marsha Smith and Jim Kempton.

Commissioner Redford called the meeting to order. The first order of business was approval of MINUTES FROM PREVIOUS MEETING on August 25, 2008. The minutes were approved by vote.

The second order of business was approval of the CONSENT AGENDA, items 2 - 5.
There was no discussion. Commissioner Kempton made a motion to approve the Consent Agenda and it carried unanimously.

The next order of business was MATTERS IN PROGRESS:

6. Grace Seaman’s August 29, 2008 Decision Memorandum re: 2008 Idaho Universal Service Fund Annual Report and Recommendations.

Ms. Seaman reviewed her Decision Memo. Alyson Anderson, Administrator of the Idaho Universal Service Fund (IUSF), participated by telephone. Commissioner Kempton asked about reducing the switched access rates and how that is interrelated with the USF. Ms. Seaman and Ms. Anderson responded to the question. Commissioner Kempton asked about Staff’s recommendation versus the Administrator’s recommendation and if Ms. Anderson had any problems with Staff’s recommendation. Ms. Anderson said there isn’t a huge difference between the two recommendations, but she liked the continuity of not having to change the surcharge rate every year. Ms. Seaman stated it is hard to project what the correct access rate should be for the coming year, and it is easier for the Commission to adjust the surcharge rates than it is for a company to adjust line rates or access rates.

Commissioner Redford asked Ms. Anderson about a discrepancy in the amounts listed in Option 2 concerning the fund balance--approximately $526,000 in one instance and $554,000 in another. Ms. Anderson replied that $554,187 is the correct estimate.

There was no further discussion. A unanimous vote was taken to approve the IUSF 2008-2009 budget. On a two to one vote, with Commissioners Redford and Smith voting in the affirmative, the Commission approved Staff’s recommendation to adopt Option 3, reduce the surcharge to $0.17 for business lines, maintain the current residential and intrastate MTS/WATS rates, and maintain the current access rate and IUSF draw for ATC Communications. Commissioner Kempton voted to support Option 2.

Commissioner Kempton asked that the record reflect a correction in the amount cited on page 5 of the Decision Memo in the last sentence of paragraph 2, which should have read $554,187 instead of $526, 455.

7. TJ Golo’s August 29, 2008 Decision Memorandum re: Rocky Mountain Power’s Advice Filing 08-05; Withdraw the Original Application and Re-File to Include Only Rule 12 Line Extensions.

Mr. Golo reviewed his Decision Memo. There was no discussion and the Commission voted unanimously to suspend Tariff Advice No. 08-05 and proceed under Modified Procedure.

The only remaining item on the agenda was under the category of FULLY SUBMITTED MATTERS and Commissioner Redford stated it would be deliberated privately. He then adjourned the meeting.

DATED this ______ day of September, 2008.

____________________________________
COMMISSION SECRETARY