20090622min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

June 22, 2009 – 1:30 P.M.

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

Commissioner Kempton called the meeting to order. The first order of business was approval of MINUTES FROM PREVIOUS MEETING on June 15, 2009. Commissioner Smith noted one correction. A vote was taken to approve the minutes as corrected.

The second order of business was approval of the CONSENT AGENDA. Commissioner Kempton announced that item 2 would be removed from the agenda pending additional staff review.

3. Neil Price’s June 18, 2009 Decision Memorandum re: Proposed Abandonment of a Three-Mile Section of Palouse & Coulee City Railroad’s Rail Line, Case No. PRC-R-09-01.

Commissioner Smith asked if the Palouse & Coulee City Railroad has filed a petition. Mr. Price responded that he is checking with the Surface Transportation Board (STB), but it is his understanding that the Commission can go forward with its own hearing. Commissioner Smith expressed concern about the timing for the Division of Environmental Quality (DEQ) to submit its comments. Mr. Price said he will contact DEQ to see what its timeline is and then bring the matter back for decision. Commissioner Smith replied that the Commission can start its process but should enable DEQ to get its comments to the railroad so they can be considered.

Commissioner Kempton asked about the exemption process and how it circumvents the traditional abandonment process. He said it seems that if the railroad files for an exemption to the process that is identified in Idaho Code 62-424, that would bypass anything the Commission would do as far as issuing a Notice of Proposed Abandonment.

Mr. Howell addressed Commissioner Kempton’s questions, stating that Federal law does not preempt the Commission from carrying out its statutory duty under Idaho law. He said it has been the Commission’s practice when it is alerted to potential abandonments by other state agencies, pursuant to the Governor’s Executive Order, that the Commission then has the opportunity to issue a Notice of Abandonment in order to alert area shippers and members of the public. He said traditionally the exemption process means there has been no rail traffic over the last two years or there has been track damage making it unusable. He reiterated that the exemption process doesn’t prohibit the Commission from doing its own duty under Idaho statute. Commissioner Kempton asked about conducting a hearing and Mr. Howell replied that the term “public hearing” can be interpreted broadly. He said in the past the Commission has conducted public hearings telephonically or used Modified Procedure, and by issuing a Notice of Proposed Abandonment, the Commission is not determining how to process this case but rather is just alerting the public to the fact the line is targeted for possible abandonment. He said it is not unusual for railroads to seek comments from environmental agencies because in their applications to the STB they will need to indicate whether they will comply with recommendations from the various environmental agencies and historical groups as part of the environmental assessment that all railroads must undertake.

There was no further discussion and the Commission voted unanimously to issue a Notice of Proposed Abandonment.

4. TJ Golo’s June 18, 2009 Decision Memorandum re: Idaho Power’s Compliance Filing for Schedule 89, Case No. IPC-E-08-10.

There was no discussion on this item and the Commission voted unanimously to approve Idaho Power’s revised tariff sheet for Schedule 89 as filed in the compliance filing.

Commissioner Kempton announced that the remaining agenda item under FULLY SUBMITTED MATTERS would be deliberated privately.

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

DATED this ______ day of June, 2009.

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COMMISSION SECRETARY

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