20090323min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

March 23, 2009 – 1:30 P.M.

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

The first order of business was approval of MINUTES FROM PREVIOUS MEETING on March 16, 2009. The minutes were approved by vote.

The second order of business was approval of the CONSENT AGENDA, items 2 – 4. The Commission voted unanimously to approve Staff’s recommendations for these items.

The next order of business was MATTERS IN PROGRESS:

5. Grace Seaman’s March 20, 2009 Decision Memorandum re: 2008 Telecommunications Relay Service Annual Report, Case No. GNR-T-09-01.

Ms. Seaman reviewed her Decision Memo. Robert Dunbar, TRS Administrator, was present and responded to a question from Commissioner Smith about when the contract goes out to bid again. Mr. Dunbar said the contract with Hamilton doesn’t expire until the end of next year. Commissioner Smith made a motion to accept the report of the TRS Administrator and maintain the existing surcharge for the coming year. A vote was taken on the motion and it carried unanimously.

6. Terri Carlock’s March 20, 2009 Decision Memorandum re: Midvale Telephone Company’s Letter Petition.

Ms. Carlock reviewed her Decision Memo. Commissioner Kempton asked about Staff’s analysis, which seemed to conflict with the last question under Commission Decision. Ms. Carlock responded that although Staff recommends the ESOP not be included in rates, she was not confident the Commission had enough information from the Decision Memo to make a decision at this point, so waiting until the next rate case to make a determination was an option. Commissioner Smith commented that if the company had a different take on it or believed Staff’s assumption was incorrect it could also present evidence at that time. Ms. Carlock said that was correct and the company’s position on this question has not been addressed.

Commissioner Redford made a motion to send an order to Midvale Telephone acknowledging the filing and stating the Commission doesn’t have authority in this matter, and if there is some sort of impact, it should be handled at the next rate case. Ms. Carlock clarified that the motion also included the requirement that the company file the final ESOP documents with the Commission, leaving any other issues for a rate case. A vote was taken on the motion and it carried unanimously. Commissioner Redford asked if the company is going to be paying, either in stock or in cash, how it will be accounted for—i.e. either in revenue or retained earnings. Ms. Carlock stated it would come out of the utility operations as a payment to the parent company that is holding the ESOP trust, and it is that payment, if it’s in a test year, that Staff is questioning.

Commissioner Redford stated that the only remaining agenda item under FULLY SUBMITTED MATTERS would be deliberated privately. He then adjourned the meeting.

DATED this ______ day of March, 2009.

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COMMISSION SECRETARY